[House Report 104-430]
[From the U.S. Government Publishing Office]




   104th Congress 1st 
         Session        HOUSE OF REPRESENTATIVES        Report
                                                       104-430
_______________________________________________________________________

 
         PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY ACT OF 1995

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                                 H.R. 4




               December 20, 1995.--Ordered to be printed
   104th Congress 1st   HOUSE OF REPRESENTATIVES        Report
         Session
                                                       104-430
_______________________________________________________________________




                    PERSONAL RESPONSIBILITY AND WORK

                        OPPORTUNITY ACT OF 1995

                               __________

                           CONFERENCE REPORT

                              to accompany

                                 H.R. 4




               December 20, 1995.--Ordered to be printed
        PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY ACT OF 1995
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-430
_______________________________________________________________________


        PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY ACT OF 1995

                                _______


               December 20, 1995.--Ordered to be printed

_______________________________________________________________________


 Mr. Archer, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                         [To accompany H.R. 4]

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

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

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

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

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

Sec. 200. Reference to Social Security Act.

                  Subtitle A--Eligibility Restrictions

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

               Subtitle B--Benefits for Disabled Children

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

               Subtitle C--State Supplementation Programs

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

   Subtitle D--Studies Regarding Supplemental Security Income Program

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

       Subtitle E--National Commission on the Future of Disability

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

                 Subtitle F--Retirement Age Eligibility

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

                        TITLE III--CHILD SUPPORT

Sec. 300. Reference to Social Security Act.

     Subtitle A--Eligibility for Services; Distribution of Payments

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

                  Subtitle B--Locate and Case Tracking

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

          Subtitle C--Streamlining and Uniformity of Procedures

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

                   Subtitle D--Paternity Establishment

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

             Subtitle E--Program Administration and Funding

Sec. 341. Performance-based incentives and penalties.
Sec. 342. Federal and State reviews and audits.
Sec. 343. Required reporting procedures.
Sec. 344. Automated data processing requirements.
Sec. 345. Technical assistance.
Sec. 346. Reports and data collection by the Secretary.

      Subtitle F--Establishment and Modification of Support Orders

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

                Subtitle G--Enforcement of Support Orders

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

                       Subtitle H--Medical Support

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

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

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

                     Subtitle J--Effect of Enactment

Sec. 391. Effective dates.

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

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

              Subtitle A--Eligibility for Federal Benefits

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

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

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

       Subtitle C--Attribution of Income and Affidavits of Support

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

                     Subtitle D--General Provisions

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

                    Subtitle E--Conforming Amendments

Sec. 441. Conforming amendments relating to assisted housing.

           TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

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

                   TITLE VI--REFORM OF PUBLIC HOUSING

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

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

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

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

            Subtitle B--Child and Family Services Block Grant

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

                         TITLE VIII--CHILD CARE

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

                   TITLE IX--CHILD NUTRITION PROGRAMS

                  Subtitle A--National School Lunch Act

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

                 Subtitle B--Child Nutrition Act of 1966

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

             TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

Sec. 1001. Short title.

                     Subtitle A--Food Stamp Program

Sec. 1011. Definition of certification period.
Sec. 1012. Definition of coupon.
Sec. 1013. Treatment of children living at home.
Sec. 1014. Optional additional criteria for separate household 
          determinations.
Sec. 1015. Adjustment of thrifty food plan.
Sec. 1016. Definition of homeless individual.
Sec. 1017. State option for eligibility standards.
Sec. 1018. Earnings of students.
Sec. 1019. Energy assistance.
Sec. 1020. Deductions from income.
Sec. 1021. Vehicle allowance.
Sec. 1022. Vendor payments for transitional housing counted as income.
Sec. 1023. Doubled penalties for violating food stamp program 
          requirements.
Sec. 1024. Disqualification of convicted individuals.
Sec. 1025. Disqualification.
Sec. 1026. Caretaker exemption.
Sec. 1027. Employment and training.
Sec. 1028. Comparable treatment for disqualification.
Sec. 1029. Disqualification for receipt of multiple food stamp benefits.
Sec. 1030. Disqualification of fleeing felons.
Sec. 1031. Cooperation with child support agencies.
Sec. 1032. Disqualification relating to child support arrears.
Sec. 1033. Work requirement.
Sec. 1034. Encourage electronic benefit transfer systems.
Sec. 1035. Value of minimum allotment.
Sec. 1036. Benefits on recertification.
Sec. 1037. Optional combined allotment for expedited households.
Sec. 1038. Failure to comply with other means-tested public assistance 
          programs.
Sec. 1039. Allotments for households residing in centers.
Sec. 1040. Condition precedent for approval of retail food stores and 
          wholesale food concerns.
Sec. 1041. Authority to establish authorization periods.
Sec. 1042. Information for verifying eligibility for authorization.
Sec. 1043. Waiting period for stores that fail to meet authorization 
          criteria.
Sec. 1044. Operation of food stamp offices.
Sec. 1045. State employee and training standards.
Sec. 1046. Exchange of law enforcement information.
Sec. 1047. Expedited coupon service.
Sec. 1048. Withdrawing fair hearing requests.
Sec. 1049. Income, eligibility, and immigration status verification 
          systems.
Sec. 1050. Disqualification of retailers who intentionally submit 
          falsified applications.
Sec. 1051. Disqualification of retailers who are disqualified under the 
          WIC program.
Sec. 1052. Collection of overissuances.
Sec. 1053. Authority to suspend stores violating program requirements 
          pending administrative and judicial review.
Sec. 1054. Expanded criminal forfeiture for violations.
Sec. 1055. Limitation of Federal match.
Sec. 1056. Standards for administration.
Sec. 1057. Work supplementation or support program.
Sec. 1058. Waiver authority.
Sec. 1059. Authorization of pilot projects.
Sec. 1060. Response to waivers.
Sec. 1061. Employment initiatives program.
Sec. 1062. Adjustable food stamp cap.
Sec. 1063. Reauthorization of Puerto Rico nutrition assistance program.
Sec. 1064. Simplified food stamp program.
Sec. 1065. State food assistance block grant.
Sec. 1066. American Samoa.
Sec. 1067. Assistance for community food projects.

               Subtitle B--Commodity Distribution Programs

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

                         TITLE XI--MISCELLANEOUS

                     Subtitle A--General Provisions

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

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

SEC. 101. FINDINGS.

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

SEC. 102. REFERENCE TO SOCIAL SECURITY ACT.

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

SEC. 103. BLOCK GRANTS TO STATES.

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

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

``SEC. 401. PURPOSE.

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

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

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

``SEC. 403. GRANTS TO STATES.

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

``SEC. 404. USE OF GRANTS.

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

``SEC. 405. ADMINISTRATIVE PROVISIONS.

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

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

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

``SEC. 407. MANDATORY WORK REQUIREMENTS.

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

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

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

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

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

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

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

``SEC. 408. PROHIBITIONS; REQUIREMENTS.

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

``SEC. 409. PENALTIES.

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

``SEC. 410. APPEAL OF ADVERSE DECISION.

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

``SEC. 411. DATA COLLECTION AND REPORTING.

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

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

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

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

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

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

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

``SEC. 415. WAIVERS.

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

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

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

``SEC. 417. LIMITATION ON FEDERAL AUTHORITY.

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

``SEC. 418. DEFINITIONS.

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

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

    (a) In General.--
            (1) State options.--A State may--
                    (A) administer and provide services under 
                the programs described in subparagraphs (A) and 
                (B)(i) of paragraph (2) through contracts with 
                charitable, religious, or private 
                organizations; and
                    (B) provide beneficiaries of assistance 
                under the programs described in subparagraphs 
                (A) and (B)(ii) of paragraph (2) with 
                certificates, vouchers, or other forms of 
                disbursement which are redeemable with such 
                organizations.
            (2) Programs described.--The programs described in 
        this paragraph are the following programs:
                    (A) A State program funded under part A of 
                title IV of the Social Security Act (as amended 
                by section 103 of this Act).
                    (B) Any other program established or 
                modified under title I, II, or VI of this Act, 
                that--
                            (i) permits contracts with 
                        organizations; or
                            (ii) permits certificates, 
                        vouchers, or other forms of 
                        disbursement to be provided to 
                        beneficiaries, as a means of providing 
                        assistance.
    (b) Religious Organizations.--The purpose of this section 
is to allow States to contract with religious organizations, or 
to allow religious organizations to accept certificates, 
vouchers, or other forms of disbursement under any program 
described in subsection (a)(2), on the same basis as any other 
nongovernmental provider without impairing the religious 
character of such organizations, and without diminishing the 
religious freedom of beneficiaries of assistance funded under 
such program.
    (c) Nondiscrimination Against Religious Organizations.--In 
the event a State exercises its authority under subsection (a), 
religious organizations are eligible, on the same basis as any 
other private organization, as contractors to provide 
assistance, or to accept certificates, vouchers, or other forms 
of disbursement, under any program described in subsection 
(a)(2) so long as the programs are implemented consistent with 
the Establishment Clause of the United States Constitution. 
Except as provided in subsection (k), neither the Federal 
Government nor a State receiving funds under such programs 
shall discriminate against an organization which is or applies 
to be a contractor to provide assistance, or which accepts 
certificates, vouchers, or other forms of disbursement, on the 
basis that the organization has a religious character.
    (d) Religious Character and Freedom.--
            (1) Religious organizations.--A religious 
        organization with a contract described in subsection 
        (a)(1)(A), or which accepts certificates, vouchers, or 
        other forms of disbursement under subsection (a)(1)(B), 
        shall retain its independence from Federal, State, and 
        local governments, including such organization's 
        control over the definition, development, practice, and 
        expression of its religious beliefs.
            (2) Additional safeguards.--Neither the Federal 
        Government nor a State shall require a religious 
        organization to--
                    (A) alter its form of internal governance; 
                or
                    (B) remove religious art, icons, scripture, 
                or other symbols;
        in order to be eligible to contract to provide 
        assistance, or to accept certificates, vouchers, or 
        other forms of disbursement, funded under a program 
        described in subsection (a)(2).
    (e) Rights of Beneficiaries of Assistance.--
            (1) In general.--If an individual described in 
        paragraph (2) has an objection to the religious 
        character of the organization or institution from which 
        the individual receives, or would receive, assistance 
        funded under any program described in subsection 
        (a)(2), the State in which the individual resides shall 
        provide such individual (if otherwise eligible for such 
        assistance) within a reasonable period of time after 
        the date of such objection with assistance from an 
        alternative provider that is accessible to the 
        individual and the value of which is not less than the 
        value of the assistance which the individual would have 
        received from such organization.
            (2) Individual described.--An individual described 
        in this paragraph is an individual who receives, 
        applies for, or requests to apply for, assistance under 
        a program described in subsection (a)(2).
    (f) Employment Practices.--A religious organization's 
exemption provided under section 702 of the Civil Rights Act of 
1964 (42 U.S.C. 2000e-1a) regarding employment practices shall 
not be affected by its participation in, or receipt of funds 
from, programs described in subsection (a)(2).
    (g) Nondiscrimination Against Beneficiaries.--Except as 
otherwise provided in law, a religious organization shall not 
discriminate against an individual in regard to rendering 
assistance funded under any program described in subsection 
(a)(2) on the basis of religion, a religious belief, or refusal 
to actively participate in a religious practice.
    (h) Fiscal Accountability.--
            (1) In general.--Except as provided in paragraph 
        (2), any religious organization contracting to provide 
        assistance funded under any program described in 
        subsection (a)(2) shall be subject to the same 
        regulations as other contractors to account in accord 
        with generally accepted auditing principles for the use 
        of such funds provided under such programs.
            (2) Limited audit.--If such organization segregates 
        Federal funds provided under such programs into 
        separate accounts, then only the financial assistance 
        provided with such funds shall be subject to audit.
    (i) Compliance.--Any party which seeks to enforce its 
rights under this section may assert a civil action for 
injunctive relief exclusively in an appropriate State court 
against the entity or agency that allegedly commits such 
violation.
    (j) Limitations on Use of Funds for Certain Purposes.--No 
funds provided directly to institutions or organizations to 
provide services and administer programs under subsection 
(a)(1)(A) shall be expended for sectarian worship, instruction, 
or proselytization.
    (k) Preemption.--Nothing in this section shall be construed 
to preempt any provision of a State constitution or State 
statute that prohibits or restricts the expenditure of State 
funds in or by religious organizations.

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

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

SEC. 106. REPORT ON DATA PROCESSING.

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

SEC. 107. STUDY ON ALTERNATIVE OUTCOMES MEASURES.

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

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

    (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) (42 U.S.C. 
        405(c)(2)(C)(vi)), as so redesignated by section 
        321(a)(9)(B) of the Social Security Independence and 
        Program Improvements Act of 1994, is amended--
                    (A) by inserting ``an agency administering 
                a program funded under part A of title IV or'' 
                before ``an agency operating''; and
                    (B) by striking ``A or D of title IV of 
                this Act'' and inserting ``D of such title''.
            (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is 
        amended by inserting ``under a State program funded 
        under'' before ``part A of title IV''.
    (b) Amendments to Part D of Title IV.--
            (1) Section 451 (42 U.S.C. 651) is amended by 
        striking ``aid'' and inserting ``assistance under a 
        State program funded''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) 
        is amended--
                    (A) by striking ``aid to families with 
                dependent children'' and inserting ``assistance 
                under a State program funded under part A'';
                    (B) by striking ``such aid'' and inserting 
                ``such assistance''; and
                    (C) by striking ``under section 402(a)(26) 
                or'' and inserting ``pursuant to section 
                408(a)(4) or under section''.
            (3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) 
        is amended--
                    (A) by striking ``aid under a State plan 
                approved'' and inserting ``assistance under a 
                State program funded''; and
                    (B) by striking ``in accordance with the 
                standards referred to in section 
                402(a)(26)(B)(ii)'' and inserting ``by the 
                State''.
            (4) Section 452(b) (42 U.S.C. 652(b)) is amended in 
        the first sentence by striking ``aid under the State 
        plan approved under part A'' and inserting ``assistance 
        under the State program funded under part A''.
            (5) Section 452(d)(3)(B)(i) (42 U.S.C. 
        652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and 
        inserting ``1115(b)''.
            (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 
        652(g)(2)(A)(ii)(I)) is amended by striking ``aid is 
        being paid under the State's plan approved under part A 
        or E'' and inserting ``assistance is being provided 
        under the State program funded under part A''.
            (7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) 
        is amended in the matter following clause (iii) by 
        striking ``aid was being paid under the State's plan 
        approved under part A or E'' and inserting ``assistance 
        was being provided under the State program funded under 
        part A''.
            (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is 
        amended in the matter following subparagraph (B)--
                    (A) by striking ``who is a dependent 
                child'' and inserting ``with respect to whom 
                assistance is being provided under the State 
                program funded under part A'';
                    (B) by inserting ``by the State agency 
                administering the State plan approved under 
                this part'' after ``found''; and
                    (C) by striking ``under section 
                402(a)(26)'' and inserting ``with the State in 
                establishing paternity''.
            (9) Section 452(h) (42 U.S.C. 652(h)) is amended by 
        striking ``under section 402(a)(26)'' and inserting 
        ``pursuant to section 408(a)(4)''.
            (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is 
        amended by striking ``aid under part A of this title'' 
        and inserting ``assistance under a State program funded 
        under part A''.
            (11) Section 454(5)(A) (42 U.S.C. 654(5)(A))) is 
        amended--
                    (A) by striking ``under section 
                402(a)(26)'' and inserting ``pursuant to 
                section 408(a)(4)''; and
                    (B) by striking ``; except that this 
                paragraph shall not apply to such payments for 
                any month following the first month in which 
                the amount collected is sufficient to make such 
                family ineligible for assistance under the 
                State plan approved under part A;'' and 
                inserting a comma.
            (12) Section 454(6)(D) (42 U.S.C. 654(6)(D)) is 
        amended by striking ``aid under a State plan approved'' 
        and inserting ``assistance under a State program 
        funded''.
            (13) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is 
        amended by striking ``under section 402(a)(26)''.
            (14) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) 
        is amended by striking ``402(a)(26)'' and inserting 
        ``408(a)(4)''.
            (15) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is 
        amended by striking ``aid'' and inserting ``assistance 
        under a State program funded''.
            (16) Section 469(a) (42 U.S.C. 669(a)) is amended--
                    (A) by striking ``aid under plans 
                approved'' and inserting ``assistance under 
                State programs funded''; and
                    (B) by striking ``such aid'' and inserting 
                ``such assistance''.
    (c) Repeal of Part F of Title IV.--Part F of title IV (42 
U.S.C. 681-687) is repealed.
    (d) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C. 
1202(a)(7)) is amended by striking ``aid to families with 
dependent children under the State plan approved under section 
402 of this Act'' and inserting ``assistance under a State 
program funded under part A of title IV''.
    (e) Amendments to Title XI.--
            (1) Section 1108 (42 U.S.C. 1308) is amended--
                    (A) by redesignating subsection (c) as 
                subsection (g);
                    (B) by striking all that precedes 
                subsection (c) and inserting the following:

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

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

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

    (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
is amended--
            (1) in the second sentence of subsection (a), by 
        striking ``plan approved'' and all that follows through 
        ``title IV of the Social Security Act'' and inserting 
        ``program funded under part A of title IV of the Social 
        Security Act (42 U.S.C. 601 et seq.)'';
            (2) in subsection (d)--
                    (A) in paragraph (5), by striking 
                ``assistance to families with dependent 
                children'' and inserting ``assistance under a 
                State program funded''; and
                    (B) by striking paragraph (13) and 
                redesignating paragraphs (14), (15), and (16) 
                as paragraphs (13), (14), and (15), 
                respectively;
            (3) in subsection (j), by striking ``plan approved 
        under part A of title IV of such Act (42 U.S.C. 601 et 
        seq.)'' and inserting ``program funded under part A of 
        title IV of the Act (42 U.S.C. 601 et seq.)''; and
            (4) by striking subsection (m).
    (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
            (1) in subsection (c)(5), by striking ``the State 
        plan approved'' and inserting ``the State program 
        funded''; and
            (2) in subsection (e)(6), by striking ``aid to 
        families with dependent children'' and inserting 
        ``benefits under a State program funded''.
    (c) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is 
amended by striking ``State plans under the Aid to Families 
with Dependent Children Program under'' and inserting ``State 
programs funded under part A of''.
    (d) Section 17 of such Act (7 U.S.C. 2026) is amended--
            (1) in the first sentence of subsection (b)(1)(A), 
        by striking ``to aid to families with dependent 
        children under part A of title IV of the Social 
        Security Act'' and inserting ``or are receiving 
        assistance under a State program funded under part A of 
        title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.)''; and
            (2) in subsection (b)(3), by adding at the end the 
        following new subparagraph:
             ``(I) The Secretary may not grant a waiver under 
        this paragraph on or after October 1, 1995. Any 
        reference in this paragraph to a provision of title IV 
        of the Social Security Act shall be deemed to be a 
        reference to such provision as in effect on September 
        30, 1995.'';
    (e) Section 20 of such Act (7 U.S.C. 2029) is amended--
            (1) in subsection (a)(2)(B) by striking 
        ``operating--'' and all that follows through ``(ii) any 
        other'' and inserting ``operating any''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(b)(1) A 
                        household'' and inserting ``(b) A 
                        household''; and
                            (ii) in subparagraph (B), by 
                        striking ``training program'' and 
                        inserting ``activity'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating subparagraphs (A) 
                through (F) as paragraphs (1) through (6), 
                respectively.
    (f) Section 5(h)(1) of the Agriculture and Consumer 
Protection Act of 1973 (Public Law 93-186; 7 U.S.C. 612c note) 
is amended by striking ``the program for aid to families with 
dependent children'' and inserting ``the State program 
funded''.
    (g) Section 9 of the National School Lunch Act (42 U.S.C. 
1758) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)(C)(ii)(II)--
                            (i) by striking ``program for aid 
                        to families with dependent children'' 
                        and inserting ``State program funded''; 
                        and
                            (ii) by inserting before the period 
                        at the end the following: ``that the 
                        Secretary determines complies with 
                        standards established by the Secretary 
                        that ensure that the standards under 
                        the State program are comparable to or 
                        more restrictive than those in effect 
                        on June 1, 1995''; and
                    (B) in paragraph (6)--
                            (i) in subparagraph (A)(ii)--
                                    (I) by striking ``an AFDC 
                                assistance unit (under the aid 
                                to families with dependent 
                                children program authorized'' 
                                and inserting ``a family (under 
                                the State program funded''; and
                                    (II) by striking ``, in a 
                                State'' and all that follows 
                                through ``9902(2)))'' and 
                                inserting ``that the Secretary 
                                determines complies with 
                                standards established by the 
                                Secretary that ensure that the 
                                standards under the State 
                                program are comparable to or 
                                more restrictive than those in 
                                effect on June 1, 1995''; and
                            (ii) in subparagraph (B), by 
                        striking ``aid to families with 
                        dependent children'' and inserting 
                        ``assistance under the State program 
                        funded under part A of title IV of the 
                        Social Security Act (42 U.S.C. 601 et 
                        seq.) that the Secretary determines 
                        complies with standards established by 
                        the Secretary that ensure that the 
                        standards under the State program are 
                        comparable to or more restrictive than 
                        those in effect on June 1, 1995''; and
            (2) in subsection (d)(2)(C)--
                    (A) by striking ``program for aid to 
                families with dependent children'' and 
                inserting ``State program funded''; and
                    (B) by inserting before the period at the 
                end the following: ``that the Secretary 
                determines complies with standards established 
                by the Secretary that ensure that the standards 
                under the State program are comparable to or 
                more restrictive than those in effect on June 
                1, 1995''.
    (h) Section 17(d)(2)(A)(ii)(II) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786(d)(2)(A)(ii)(II)) is amended--
            (1) by striking ``program for aid to families with 
        dependent children established'' and inserting ``State 
        program funded''; and
            (2) by inserting before the semicolon the 
        following: ``that the Secretary determines complies 
        with standards established by the Secretary that ensure 
        that the standards under the State program are 
        comparable to or more restrictive than those in effect 
        on June 1, 1995''.

SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

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

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

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

SEC. 112. DISCLOSURE OF RECEIPT OF FEDERAL FUNDS.

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

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

    Section 505 of the Family Support Act of 1988 (42 U.S.C. 
1315 note) is amended--
            (1) in the heading, by striking ``DEMONSTRATION'';
            (2) by striking ``demonstration'' each place such 
        term appears;
            (3) in subsection (a), by striking ``in each of 
        fiscal years'' and all that follows through ``10'' and 
        inserting ``shall enter into agreements with'';
            (4) in subsection (b)(3), by striking ``aid to 
        families with dependent children under part A of title 
        IV of the Social Security Act'' and inserting 
        ``assistance under the program funded part A of title 
        IV of the Social Security Act of the State in which the 
        individual resides'';
            (5) in subsection (c)--
                    (A) in paragraph (1)(C), by striking ``aid 
                to families with dependent children under part 
                A of title IV of the Social Security Act'' and 
                inserting ``assistance under a State program 
                funded part A of title IV of the Social 
                Security Act'';
                    (B) in paragraph (2), by striking ``aid to 
                families with dependent children under title IV 
                of such Act'' and inserting ``assistance under 
                a State program funded part A of title IV of 
                the Social Security Act'';
            (6) in subsection (d), by striking ``job 
        opportunities and basic skills training program (as 
        provided for under title IV of the Social Security 
        Act)'' and inserting ``the State program funded under 
        part A of title IV of the Social Security Act''; and
            (7) by striking subsections (e) through (g) and 
        inserting the following:
    ``(e) Authorization of Appropriations.--For the purpose of 
conducting projects under this section, there is authorized to 
be appropriated an amount not to exceed $25,000,000 for any 
fiscal year.''.

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

    (a) In General.--Section 1902(a)(10)(A) (42 U.S.C. 
1396a(a)(10)(A)) is amended--
            (1) in clause (i), by amending subclause (I) to 
        read as follows:
                                    ``(I) who are receiving a 
                                foster care maintenance payment 
                                described in section 
                                423(b)(1)(A) or an adoption 
                                assistance payment described in 
                                section 423(b)(1)(B),''; and
            (2) in clause (ii)--
                    (A) by striking ``or'' at the end of 
                subclause (XI),
                    (B) by adding ``or'' at the end of 
                subclause (XII), and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(XIII) to individuals 
                                (which may include individuals 
                                who receive payment under any 
                                plan of the State approved 
                                under title I, X, XIV, or XVI, 
                                or a program funded under part 
                                A of title IV of this Act, as 
                                amended by the Personal 
                                Responsibility and Work 
                                Opportunity Act of 1995, and 
                                other similar individuals) who 
                                meet such eligibility criteria 
                                as the State establishes, so 
                                long as the State demonstrates 
                                to the satisfaction of the 
                                Secretary that the application 
                                of such criteria does not 
                                result in Federal expenditures 
                                under this title that are 
                                greater than the Federal 
                                expenditures that would have 
                                been made under this title if 
                                such Act had not been 
                                enacted,''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall apply to medical assistance for items and services 
furnished on or after the date of the enactment of this Act.

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

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

SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

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

                 TITLE II--SUPPLEMENTAL SECURITY INCOME

SEC. 200. REFERENCE TO SOCIAL SECURITY ACT.

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

                  Subtitle A--Eligibility Restrictions

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

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

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

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

               Subtitle B--Benefits for Disabled Children

SEC. 211. DEFINITION AND ELIGIBILITY RULES.

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

SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINUING DISABILITY 
                    REVIEWS.

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

SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.

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

        ``Disposal of Resources for Less Than Fair Market Value

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

                                ``Trusts

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

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

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

SEC. 215. REGULATIONS.

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

               Subtitle C--State Supplementation Programs

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

    Section 1618 (42 U.S.C. 1382g) is hereby repealed.

   Subtitle D--Studies Regarding Supplemental Security Income Program

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

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


                       ``annual report on program


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

SEC. 232. STUDY OF DISABILITY DETERMINATION PROCESS.

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

SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.

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

      Subtitle E--National Commission on the Future of Disability

SEC. 241. ESTABLISHMENT.

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

SEC. 242. DUTIES OF THE COMMISSION.

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

SEC. 243. MEMBERSHIP.

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

SEC. 244. STAFF AND SUPPORT SERVICES.

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

SEC. 245. POWERS OF COMMISSION.

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

SEC. 246. REPORTS.

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

SEC. 247. TERMINATION.

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

SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

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

                 Subtitle F--Retirement Age Eligibility

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

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

                            ``Retirement Age

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

                        TITLE III--CHILD SUPPORT

SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.

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

     Subtitle A--Eligibility for Services; Distribution of Payments

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

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

SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

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

``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

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

SEC. 303. PRIVACY SAFEGUARDS.

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

SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

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

                  Subtitle B--Locate and Case Tracking

SEC. 311. STATE CASE REGISTRY.

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

SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

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

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

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

SEC. 313. STATE DIRECTORY OF NEW HIRES.

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

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

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

SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.

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

SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

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

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

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

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

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 
666(a)), as amended by section 315 of this Act, is amended by 
adding at the end the following new paragraph:
            ``(13) Recording of social security numbers in 
        certain family matters.--Procedures requiring that the 
        social security number of--
                    ``(A) any applicant for a professional 
                license, commercial driver's license, 
                occupational license, or marriage license be 
                recorded on the application;
                    ``(B) any individual who is subject to a 
                divorce decree, support order, or paternity 
                determination or acknowledgment be placed in 
                the records relating to the matter; and
                    ``(C) any individual who has died be placed 
                in the records relating to the death and be 
                recorded on the death certificate.
        For purposes of subparagraph (A), if a State allows the 
        use of a number other than the social security number, 
        the State shall so advise any applicants.''.
    (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
405(c)(2)(C)), as amended by section 321(a)(9) of the Social 
Security Independence and Program Improvements Act of 1994, is 
amended--
            (1) in clause (i), by striking ``may require'' and 
        inserting ``shall require'';
            (2) in clause (ii), by inserting after the 1st 
        sentence the following: ``In the administration of any 
        law involving the issuance of a marriage certificate or 
        license, each State shall require each party named in 
        the certificate or license to furnish to the State (or 
        political subdivision thereof), or any State agency 
        having administrative responsibility for the law 
        involved, the social security number of the party.'';
            (3) in clause (ii), by inserting ``or marriage 
        certificate'' after ``Such numbers shall not be 
        recorded on the birth certificate''.
            (4) in clause (vi), by striking ``may'' and 
        inserting ``shall''; and
            (5) by adding at the end the following new clauses:
                            ``(x) An agency of a State (or a 
                        political subdivision thereof) charged 
                        with the administration of any law 
                        concerning the issuance or renewal of a 
                        license, certificate, permit, or other 
                        authorization to engage in a 
                        profession, an occupation, or a 
                        commercial activity shall require all 
                        applicants for issuance or renewal of 
                        the license, certificate, permit, or 
                        other authorization to provide the 
                        applicant's social security number to 
                        the agency for the purpose of 
                        administering such laws, and for the 
                        purpose of responding to requests for 
                        information from an agency operating 
                        pursuant to part D of title IV.
                            ``(xi) All divorce decrees, support 
                        orders, and paternity determinations 
                        issued, and all paternity 
                        acknowledgments made, in each State 
                        shall include the social security 
                        number of each party to the decree, 
                        order, determination, or 
                        acknowledgement in the records relating 
                        to the matter, for the purpose of 
                        responding to requests for information 
                        from an agency operating pursuant to 
                        part D of title IV.''.

         Subtitle C--Streamlining and Uniformity of Procedures

SEC. 321. ADOPTION OF UNIFORM STATE LAWS.

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

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

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

SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

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

SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.

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

SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

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

                  Subtitle D--Paternity Establishment

SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

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

SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

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

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

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

             Subtitle E--Program Administration and Funding

SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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

SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.

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

SEC. 343. REQUIRED REPORTING PROCEDURES.

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

SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.

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

``SEC. 454A. AUTOMATED DATA PROCESSING.

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

SEC. 345. TECHNICAL ASSISTANCE.

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

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

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

      Subtitle F--Establishment and Modification of Support Orders

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

    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to 
read as follows:
            ``(10) Review and adjustment of support orders upon 
        request.--Procedures under which the State shall review 
        and adjust each support order being enforced under this 
        part upon the request of either parent or the State if 
        there is an assignment. Such procedures shall provide 
        the following:
                    ``(A) In general.--
                            ``(i) 3-year cycle.--Except as 
                        provided in subparagraphs (B) and (C), 
                        the State shall review and, as 
                        appropriate, adjust the support order 
                        every 3 years, taking into account the 
                        best interests of the child involved.
                            ``(ii) Methods of adjustment.--The 
                        State may elect to review and, if 
                        appropriate, adjust an order pursuant 
                        to clause (i) by--
                                    ``(I) reviewing and, if 
                                appropriate, adjusting the 
                                order in accordance with the 
                                guidelines established pursuant 
                                to section 467(a) if the amount 
                                of the child support award 
                                under the order differs from 
                                the amount that would be 
                                awarded in accordance with the 
                                guidelines; or
                                    ``(II) applying a cost-of-
                                living adjustment to the order 
                                in accordance with a formula 
                                developed by the State and 
                                permit either party to contest 
                                the adjustment, within 30 days 
                                after the date of the notice of 
                                the adjustment, by making a 
                                request for review and, if 
                                appropriate, adjustment of the 
                                order in accordance with the 
                                child support guidelines 
                                established pursuant to section 
                                467(a).
                            ``(iii) No proof of change in 
                        circumstances necessary.--Any 
                        adjustment under this subparagraph (A) 
                        shall be made without a requirement for 
                        proof or showing of a change in 
                        circumstances.
                    ``(B) Automated method.--The State may use 
                automated methods (including automated 
                comparisons with wage or State income tax data) 
                to identify orders eligible for review, conduct 
                the review, identify orders eligible for 
                adjustment, and apply the appropriate 
                adjustment to the orders eligible for 
                adjustment under the threshold established by 
                the State.
                    ``(C) Request upon substantial change in 
                circumstances.--The State shall, at the request 
                of either parent subject to such an order or of 
                any State child support enforcement agency, 
                review and, if appropriate, adjust the order in 
                accordance with the guidelines established 
                pursuant to section 467(a) based upon a 
                substantial change in the circumstances of 
                either parent.
                    ``(D) Notice of right to review.--The State 
                shall provide notice not less than once every 3 
                years to the parents subject to such an order 
                informing them of their right to request the 
                State to review and, if appropriate, adjust the 
                order pursuant to this paragraph. The notice 
                may be included in the order.''.

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

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

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

    (a) In General.--Notwithstanding any other provision of 
Federal or State law, a financial institution shall not be 
liable under any Federal or State law to any person for 
disclosing any financial record of an individual to a State 
child support enforcement agency attempting to establish, 
modify, or enforce a child support obligation of such 
individual.
    (b) Prohibition of Disclosure of Financial Record Obtained 
by State Child Support Enforcement Agency.--A State child 
support enforcement agency which obtains a financial record of 
an individual from a financial institution pursuant to 
subsection (a) may disclose such financial record only for the 
purpose of, 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(v));
                    (C) any Federal credit union or State 
                credit union, as defined in section 101 of the 
                Federal Credit Union Act (12 U.S.C. 1752), 
                including an institution-affiliated party of 
                such a credit union, as defined in section 
                206(r) of such Act (12 U.S.C. 1786(r)); and
                    (D) any benefit association, insurance 
                company, safe deposit company, money-market 
                mutual fund, or similar entity authorized to do 
                business in the State.
            (2) Financial record.--The term ``financial 
        record'' has the meaning given such term in section 
        1101 of the Right to Financial Privacy Act of 1978 (12 
        U.S.C. 3401).
            (3) State child support enforcement agency.--The 
        term ``State child support enforcement agency'' means a 
        State agency which administers a State program for 
        establishing and enforcing child support obligations.

               Subtitle G--Enforcement of Support Orders

SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

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

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

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

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

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

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

    (a) Availability of Locator Information.--
            (1) Maintenance of address information.--The 
        Secretary of Defense shall establish a centralized 
        personnel locator service that includes the address of 
        each member of the Armed Forces under the jurisdiction 
        of the Secretary. Upon request of the Secretary of 
        Transportation, addresses for members of the Coast 
        Guard shall be included in the centralized personnel 
        locator service.
            (2) Type of address.--
                    (A) Residential address.--Except as 
                provided in subparagraph (B), the address for a 
                member of the Armed Forces shown in the locator 
                service shall be the residential address of 
                that member.
                    (B) Duty address.--The address for a member 
                of the Armed Forces shown in the locator 
                service shall be the duty address of that 
                member in the case of a member--
                            (i) who is permanently assigned 
                        overseas, to a vessel, or to a 
                        routinely deployable unit; or
                            (ii) with respect to whom the 
                        Secretary concerned makes a 
                        determination that the member's 
                        residential address should not be 
                        disclosed due to national security or 
                        safety concerns.
            (3) Updating of locator information.--Within 30 
        days after a member listed in the locator service 
        establishes a new residential address (or a new duty 
        address, in the case of a member covered by paragraph 
        (2)(B)), the Secretary concerned shall update the 
        locator service to indicate the new address of the 
        member.
            (4) Availability of information.--The Secretary of 
        Defense shall make information regarding the address of 
        a member of the Armed Forces listed in the locator 
        service available, on request, to the Federal Parent 
        Locator Service established under section 453 of the 
        Social Security Act.
    (b) Facilitating Granting of Leave for Attendance at 
Hearings.--
            (1) Regulations.--The Secretary of each military 
        department, and the Secretary of Transportation with 
        respect to the Coast Guard when it is not operating as 
        a service in the Navy, shall prescribe regulations to 
        facilitate the granting of leave to a member of the 
        Armed Forces under the jurisdiction of that Secretary 
        in a case in which--
                    (A) the leave is needed for the member to 
                attend a hearing described in paragraph (2);
                    (B) the member is not serving in or with a 
                unit deployed in a contingency operation (as 
                defined in section 101 of title 10, United 
                States Code); and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not 
                otherwise require that such leave not be 
                granted.
            (2) Covered hearings.--Paragraph (1) applies to a 
        hearing that is conducted by a court or pursuant to an 
        administrative process established under State law, in 
        connection with a civil action--
                    (A) to determine whether a member of the 
                Armed Forces is a natural parent of a child; or
                    (B) to determine an obligation of a member 
                of the Armed Forces to provide child support.
            (3) Definitions.--For purposes of this subsection--
                    (A) The term ``court'' has the meaning 
                given that term in section 1408(a) of title 10, 
                United States Code.
                    (B) The term ``child support'' has the 
                meaning given such term in section 459(i) of 
                the Social Security Act (42 U.S.C. 659(i)).
    (c) Payment of Military Retired Pay in Compliance With 
Child Support Orders.--
            (1) Date of certification of court order.--Section 
        1408 of title 10, United States Code, as amended by 
        section 362(c)(4) of this Act, is amended--
                    (A) by redesignating subsections (i) and 
                (j) as subsections (j) and (k), respectively; 
                and
                    (B) by inserting after subsection (h) the 
                following new subsection:
    ``(i) Certification Date.--It is not necessary that the 
date of a certification of the authenticity or completeness of 
a copy of a court order for child support received by the 
Secretary concerned for the purposes of this section be recent 
in relation to the date of receipt by the Secretary.''.
            (2) Payments consistent with assignments of rights 
        to states.--Section 1408(d)(1) of such title is amended 
        by inserting after the 1st sentence the following new 
        sentence: ``In the case of a spouse or former spouse 
        who, pursuant to section 408(a)(4) of the Social 
        Security Act (42 U.S.C. 607(a)(4)), assigns to a State 
        the rights of the spouse or former spouse to receive 
        support, the Secretary concerned may make the child 
        support payments referred to in the preceding sentence 
        to that State in amounts consistent with that 
        assignment of rights.''.
            (3) Arrearages owed by members of the uniformed 
        services.--Section 1408(d) of such title is amended by 
        adding at the end the following new paragraph:
    ``(6) In the case of a court order for which effective 
service is made on the Secretary concerned on or after the date 
of the enactment of this paragraph and which provides for 
payments from the disposable retired pay of a member to satisfy 
the amount of child support set forth in the order, the 
authority provided in paragraph (1) to make payments from the 
disposable retired pay of a member to satisfy the amount of 
child support set forth in a court order shall apply to payment 
of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently 
become due.''.
            (4) Payroll deductions.--The Secretary of Defense 
        shall begin payroll deductions within 30 days after 
        receiving notice of withholding, or for the 1st pay 
        period that begins after such 30-day period.

SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.

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

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

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

SEC. 366. DEFINITION OF SUPPORT ORDER.

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

SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

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

SEC. 368. LIENS.

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

SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

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

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

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

SEC. 371. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

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

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

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

SEC. 372. FINANCIAL INSTITUTION DATA MATCHES.

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

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

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

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

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

                      Subtitle H--Medical Support

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

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

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

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

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

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

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

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

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

                    Subtitle J--Effect of Enactment

SEC. 391. EFFECTIVE DATES.

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

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

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

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

              Subtitle A--Eligibility for Federal Benefits

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

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

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

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

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

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

SEC. 404. NOTIFICATION AND INFORMATION REPORTING.

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

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

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

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

    ``Notwithstanding any other provision of law, the Secretary 
shall, at least 4 times annually and upon request of the 
Immigration and Naturalization Service (hereafter in this 
section referred to as the `Service'), furnish the Service with 
the name and address of, and other identifying information on, 
any individual who the Secretary knows is unlawfully in the 
United States, and shall ensure that each contract for 
assistance entered into under section 6 or 8 of this Act with a 
public housing agency provides that the public housing agency 
shall furnish such information at such times with respect to 
any individual who the public housing agency knows is 
unlawfully in the United States.''.

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

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

    (a) In General.--Notwithstanding any other provision of law 
and except as provided in subsections (b) and (d), an alien who 
is not--
            (1) a qualified alien (as defined in section 431),
            (2) a nonimmigrant under the Immigration and 
        Nationality Act, or
            (3) an alien who is paroled into the United States 
        under section 212(d)(5) of such Act for less than one 
        year,
is not eligible for any State or local public benefit (as 
defined in subsection (c)).
    (b) Exceptions.--Subsection (a) shall not apply with 
respect to the following State or local public benefits:
            (1) Emergency medical services under title XIX or 
        XXI of the Social Security Act.
            (2) Short-term, non-cash, in-kind emergency 
        disaster relief.
            (3)(A) Public health assistance for immunizations.
                    (B) Public health assistance for testing 
                and treatment of a serious communicable disease 
                if the Secretary of Health and Human Services 
                determines that it is necessary to prevent the 
                spread of such disease.
            (4) Programs, services, or assistance (such as soup 
        kitchens, crisis counseling and intervention, and 
        short-term shelter) specified by the Attorney General, 
        in the Attorney General's sole and unreviewable 
        discretion after consultation with appropriate Federal 
        agencies and departments, which (A) deliver in-kind 
        services at the community level, including through 
        public or private nonprofit agencies; (B) do not 
        condition the provision of assistance, the amount of 
        assistance provided, or the cost of assistance provided 
        on the individual recipient's income or resources; and 
        (C) are necessary for the protection of life or safety.
    (c) State or Local Public Benefit Defined.--
            (1) Except as provided in paragraph (2), for 
        purposes of this subtitle the term ``State or local 
        public benefit'' means--
                    (A) any grant, contract, loan, professional 
                license, or commercial license provided by an 
                agency of a State or local government or by 
                appropriated funds of a State or local 
                government; and
                    (B) any retirement, welfare, health, 
                disability, public or assisted housing, post-
                secondary education, food assistance, 
                unemployment benefit, or any other similar 
                benefit for which payments or assistance are 
                provided to an individual, household, or family 
                eligibility unit by an agency of a State or 
                local government or by appropriated funds of a 
                State or local government.
            (2) Such term shall not apply--
                    (A) to any contract, professional license, 
                or commercial license for a nonimmigrant whose 
                visa for entry is related to such employment in 
                the United States; or
                    (B) with respect to benefits for an alien 
                who as a work authorized nonimmigrant or as an 
                alien lawfully admitted for permanent residence 
                under the Immigration and Nationality Act 
                qualified for such benefits and for whom the 
                United States under reciprocal treaty 
                agreements is required to pay benefits, as 
                determined by the Secretary of State, after 
                consultation with the Attorney General.
    (d) State Authority to Provide for Eligibility of Illegal 
Aliens for State and Local Public Benefits.--A State may 
provide that an alien who is not lawfully present in the United 
States is eligible for any State or local public benefit for 
which such alien would otherwise be ineligible under subsection 
(a) only through the enactment of a State law after the date of 
the enactment of this Act which affirmatively provides for such 
eligibility.

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

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

      Subtitle C--Attribution of Income and Affidavits of Support

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

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

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

    (a) Optional Application to State Programs.--Except as 
provided in subsection (b), in determining the eligibility and 
the amount of benefits of an alien for any State public 
benefits (as defined in section 412(c)), the State or political 
subdivision that offers the benefits is authorized to provide 
that the income and resources of the alien shall be deemed to 
include--
            (1) the income and resources of any individual who 
        executed an affidavit of support pursuant to section 
        213A of the Immigration and Nationality Act (as added 
        by section 423) on behalf of such alien, and
            (2) the income and resources of the spouse (if any) 
        of the individual.
    (b) Exceptions.--Subsection (a) shall not apply with 
respect to the following State public benefits:
            (1) Emergency medical services.
            (2) Short-term, non-cash, in-kind emergency 
        disaster relief.
            (3) Programs comparable to assistance or benefits 
        under the National School Lunch Act.
            (4) Programs comparable to assistance or benefits 
        under the Child Nutrition Act of 1966.
            (5)(A) Public health assistance for immunizations.
                    (B) Public health assistance for testing 
                and treatment of a serious communicable disease 
                if the appropriate chief State health official 
                determines that it is necessary to prevent the 
                spread of such disease.
            (6) Payments for foster care and adoption 
        assistance.
            (7) Programs, services, or assistance (such as soup 
        kitchens, crisis counseling and intervention, and 
        short-term shelter) specified by the Attorney General 
        of a State, after consultation with appropriate 
        agencies and departments, which (A) deliver in-kind 
        services at the community level, including through 
        public or private nonprofit agencies; (B) do not 
        condition the provision of assistance, the amount of 
        assistance provided, or the cost of assistance provided 
        on the individual recipient's income or resources; and 
        (C) are necessary for the protection of life or safety.

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

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


           ``requirements for sponsor's affidavit of support


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

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

SEC. 424. COSIGNATURE OF ALIEN STUDENT LOANS.

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

                     Subtitle D--General Provisions

SEC. 431. DEFINITIONS.

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

SEC. 432. REAPPLICATION FOR SSI BENEFITS.

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

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

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

SEC. 434. STATUTORY CONSTRUCTION.

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

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

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

SEC. 436. QUALIFYING QUARTERS.

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

                   Subtitle E--Conforming Amendments

SEC. 441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.

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

          TITLE V--REDUCTIONS IN FEDERAL GOVERNMENT POSITIONS

SEC. 501. REDUCTIONS.

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

SEC. 502. REDUCTIONS IN FEDERAL BUREAUCRACY.

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

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

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

                   TITLE VI--REFORM OF PUBLIC HOUSING

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

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

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

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

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

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

SEC. 603. EFFECTIVE DATE.

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

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

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

SEC. 701. ESTABLISHMENT OF PROGRAM.

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

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

``SEC. 421. PURPOSE.

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

``SEC. 422. ELIGIBLE STATES.

    ``(a) In General.--As used in this part, the term `eligible 
State' means a State that has submitted to the Secretary, not 
later than October 1, 1996, and every 3 years thereafter, a 
plan which has been signed by the chief executive officer of 
the State and that includes the following:
            ``(1) Outline of child protection program.--A 
        written document that outlines the activities the State 
        intends to conduct to achieve the purpose of this part, 
        including the procedures to be used for--
                    ``(A) receiving and assessing reports of 
                child abuse or neglect;
                    ``(B) investigating such reports;
                    ``(C) with respect to families in which 
                abuse or neglect has been confirmed, providing 
                services or referral for services for families 
                and children where the State makes a 
                determination that the child may safely remain 
                with the family;
                    ``(D) protecting children by removing them 
                from dangerous settings and ensuring their 
                placement in a safe environment;
                    ``(E) providing training for individuals 
                mandated to report suspected cases of child 
                abuse or neglect;
                    ``(F) protecting children in foster care;
                    ``(G) promoting timely adoptions;
                    ``(H) protecting the rights of families, 
                using adult relatives as the preferred 
                placement for children separated from their 
                parents where such relatives meet the relevant 
                State child protection standards;
                    ``(I) providing services to individuals, 
                families, or communities, either directly or 
                through referral, that are aimed at preventing 
                the occurrence of child abuse and neglect; and
                    ``(J) establishing and responding to 
                citizen review panels under section 426.
            ``(2) Certification of state law requiring the 
        reporting of child abuse and neglect.--A certification 
        that the State has in effect laws that require public 
        officials and other professionals to report, in good 
        faith, actual or suspected instances of child abuse or 
        neglect.
            ``(3) Certification of procedures for screening, 
        safety assessment, and prompt investigation.--A 
        certification that the State has in effect procedures 
        for receiving and responding to reports of child abuse 
        or neglect, including the reports described in 
        paragraph (2), and for the immediate screening, safety 
        assessment, and prompt investigation of such reports.
            ``(4) Certification of state procedures for removal 
        and placement of abused or neglected children.--A 
        certification that the State has in effect procedures 
        for the removal from families and placement of abused 
        or neglected children and of any other child in the 
        same household who may also be in danger of abuse or 
        neglect.
            ``(5) Certification of provisions for immunity from 
        prosecution.--A certification that the State has in 
        effect laws requiring immunity from prosecution under 
        State and local laws and regulations for individuals 
        making good faith reports of suspected or known 
        instances of child abuse or neglect.
            ``(6) Certification of provisions and procedures 
        for expungement of certain records.--A certification 
        that the State has in effect laws and procedures 
        requiring the facilitation of the prompt expungement of 
        any records that are accessible to the general public 
        or are used for purposes of employment or other 
        background checks in cases determined to be 
        unsubstantiated or false.
            ``(7) Certification of provisions and procedures 
        relating to appeals.--A certification that not later 
        then 2 years after the date of the enactment of this 
        part, the State shall have laws and procedures in 
        effect affording individuals an opportunity to appeal 
        an official finding of abuse or neglect.
            ``(8) Certification of state procedures for 
        developing and reviewing written plans for permanent 
        placement of removed children.--A certification that 
        the State has in effect procedures for ensuring that a 
        written plan is prepared for children who have been 
        removed from their families. Such plan shall specify 
        the goals for achieving a permanent placement for the 
        child in a timely fashion, for ensuring that the 
        written plan is reviewed every 6 months (until such 
        placement is achieved), and for ensuring that 
        information about such children is collected regularly 
        and recorded in case records, and include a description 
        of such procedures.
            ``(9) Certification of state program to provide 
        independent living services.--A certification that the 
        State has in effect a program to provide independent 
        living services, for assistance in making the 
        transition to self-sufficient adulthood, to individuals 
        in the child protection program of the State who are 
        16, but who are not 20 (or, at the option of the State, 
        22), years of age, and who do not have a family to 
        which to be returned.
            ``(10) Certification of state procedures to respond 
        to reporting of medical neglect of disabled infants.--
                    ``(A) In general.--A certification that the 
                State has in place for the purpose of 
                responding to the reporting of medical neglect 
                of infants (including instances of withholding 
                of medically indicated treatment from disabled 
                infants with life-threatening conditions), 
                procedures or programs, or both (within the 
                State child protective services system), to 
                provide for--
                            ``(i) coordination and consultation 
                        with individuals designated by and 
                        within appropriate health-care 
                        facilities;
                            ``(ii) prompt notification by 
                        individuals designated by and within 
                        appropriate health-care facilities of 
                        cases of suspected medical neglect 
                        (including instances of withholding of 
                        medically indicated treatment from 
                        disabled infants with life-threatening 
                        conditions); and
                            ``(iii) authority, under State law, 
                        for the State child protective service 
                        to pursue any legal remedies, including 
                        the authority to initiate legal 
                        proceedings in a court of competent 
                        jurisdiction, as may be necessary to 
                        prevent the withholding of medically 
                        indicated treatment from disabled 
                        infants with life-threatening 
                        conditions.
                    ``(B) Withholding of medically indicated 
                treatment.--As used in subparagraph (A), the 
                term `withholding of medically indicated 
                treatment' means the failure to respond to the 
                infant's life-threatening conditions by 
                providing treatment (including appropriate 
                nutrition, hydration, and medication) which, in 
                the treating physician's or physicians' 
                reasonable medical judgment, will be most 
                likely to be effective in ameliorating or 
                correcting all such conditions, except that 
                such term does not include the failure to 
                provide treatment (other than appropriate 
                nutrition, hydration, or medication) to an 
                infant when, in the treating physician's or 
                physicians' reasonable medical judgment--
                            ``(i) the infant is chronically and 
                        irreversibly comatose;
                            ``(ii) the provision of such 
                        treatment would--
                                    ``(I) merely prolong dying;
                                    ``(II) not be effective in 
                                ameliorating or correcting all 
                                of the infant's life-
                                threatening conditions; or
                                    ``(III) otherwise be futile 
                                in terms of the survival of the 
                                infant; or
                            ``(iii) the provision of such 
                        treatment would be virtually futile in 
                        terms of the survival of the infant and 
                        the treatment itself under such 
                        circumstances would be inhumane.
            ``(11) Identification of child protection goals.--
        The quantitative goals of the State child protection 
        program.
            ``(12) Certification of child protection 
        standards.--With respect to fiscal years beginning on 
        or after April 1, 1996, a certification that the 
        State--
                    ``(A) has completed an inventory of all 
                children who, before the inventory, had been in 
                foster care under the responsibility of the 
                State for 6 months or more, which determined--
                            ``(i) the appropriateness of, and 
                        necessity for, the foster care 
                        placement;
                            ``(ii) whether the child could or 
                        should be returned to the parents of 
                        the child or should be freed for 
                        adoption or other permanent placement; 
                        and
                            ``(iii) the services necessary to 
                        facilitate the return of the child or 
                        the placement of the child for adoption 
                        or legal guardianship;
                    ``(B) is operating, to the satisfaction of 
                the Secretary--
                            ``(i) a statewide information 
                        system from which can be readily 
                        determined the status, demographic 
                        characteristics, location, and goals 
                        for the placement of every child who is 
                        (or, within the immediately preceding 
                        12 months, has been) in foster care;
                            ``(ii) a case review system for 
                        each child receiving foster care under 
                        the supervision of the State;
                            ``(iii) a service program designed 
                        to help children--
                                    ``(I) where appropriate, 
                                return to families from which 
                                they have been removed; or
                                    ``(II) be placed for 
                                adoption, with a legal 
                                guardian, or if adoption or 
                                legal guardianship is 
                                determined not to be 
                                appropriate for a child, in 
                                some other planned, permanent 
                                living arrangement; and
                            ``(iv) a preplacement preventive 
                        services program designed to help 
                        children at risk for foster care 
                        placement remain with their families; 
                        and
                    ``(C)(i) has reviewed (or not later than 
                October 1, 1997, will review) State policies 
                and administrative and judicial procedures in 
                effect for children abandoned at or shortly 
                after birth (including policies and procedures 
                providing for legal representation of such 
                children); and
                    ``(ii) is implementing (or not later than 
                October 1, 1997, will implement) such policies 
                and procedures as the State determines, on the 
                basis of the review described in clause (i), to 
                be necessary to enable permanent decisions to 
                be made expeditiously with respect to the 
                placement of such children.
            ``(13) Certification of reasonable efforts before 
        placement of children in foster care.--A certification 
        that the State in each case will--
                    ``(A) make reasonable efforts prior to the 
                placement of a child in foster care, to prevent 
                or eliminate the need for removal of the child 
                from the child's home, and to make it possible 
                for the child to return home; and
                    ``(B) with respect to families in which 
                abuse or neglect has been confirmed, provide 
                services or referral for services for families 
                and children where the State makes a 
                determination that the child may safely remain 
                with the family.
            ``(14) Certification of cooperative efforts.--A 
        certification by the State, where appropriate, that all 
        steps will be taken, including cooperative efforts with 
        the State agencies administering the plans approved 
        under parts A and D, to secure an assignment to the 
        State of any rights to support on behalf of each child 
        receiving foster care maintenance payments under this 
        part.
            ``(15) Certification of confidentiality and 
        requirements for information disclosure.--
                    ``(A) In general.--A certification that the 
                State has in effect and operational--
                            ``(i) requirements ensuring that 
                        reports and records made and maintained 
                        pursuant to the purposes of this part 
                        shall only be made available to--
                                    ``(I) individuals who are 
                                the subject of the report;
                                    ``(II) Federal, State, or 
                                local government entities 
                                having a need for such 
                                information in order to carry 
                                out their responsibilities 
                                under law to protect children 
                                from abuse and neglect;
                                    ``(III) child abuse citizen 
                                review panels;
                                    ``(IV) child fatality 
                                review panels;
                                    ``(V) a grand jury or 
                                court, upon a finding that 
                                information in the record is 
                                necessary for the determination 
                                of an issue before the court or 
                                grand jury; and
                                    ``(VI) other entities or 
                                classes of individuals 
                                statutorily authorized by the 
                                State to receive such 
                                information pursuant to a 
                                legitimate State purpose; and
                            ``(ii) provisions that allow for 
                        public disclosure of the findings or 
                        information about cases of child abuse 
                        or neglect that have resulted in a 
                        child fatality or near fatality.
                    ``(B) Limitation.--Disclosures made 
                pursuant to clause (i) or (ii) shall not 
                include the identifying information concerning 
                the individual initiating a report or complaint 
                alleging suspected instances of child abuse or 
                neglect.
                    ``(C) Definition.--For purposes of this 
                paragraph, the term `near fatality' means an 
                act that, as certified by a physician, places 
                the child in serious or critical condition.
    ``(b) Determinations.--The Secretary shall determine 
whether a plan submitted pursuant to subsection (a) contains 
the material required by subsection (a), other than the 
material described in paragraph (10) of such subsection. The 
Secretary may not require a State to include in such a plan any 
material not described in subsection (a).

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

    ``(a) Funding of Block Grants.--
            ``(1) Entitlement component.--Each eligible State 
        shall be entitled to receive from the Secretary for 
        each fiscal year specified in subsection (c)(1) a grant 
        in an amount equal to the State share of the child 
        protection amount for the fiscal year.
            ``(2) Authorization component.--
                    ``(A) In general.--For each eligible State 
                for each fiscal year specified in subsection 
                (c)(1), the Secretary shall supplement the 
                grant under paragraph (1) of this subsection by 
                an amount equal to the State share of the 
                amount (if any) appropriated pursuant to 
                subparagraph (B) of this paragraph for the 
                fiscal year.
                    ``(B) Limitation on authorization of 
                appropriations.--For grants under subparagraph 
                (A), there are authorized to be appropriated to 
                the Secretary an amount not to exceed 
                $325,000,000 for each fiscal year specified in 
                subsection (c)(1).
    ``(b) Maintenance Payments.--
            ``(1) In general.--In addition to the grants 
        described in subsection (a), each eligible State shall 
        be entitled to receive from the Secretary for each 
        quarter of each fiscal year specified in subsection 
        (c)(1) an amount equal to the sum of--
                    ``(A) an amount equal to the Federal 
                medical assistance percentage (as defined in 
                section 1905(b) of this Act as in effect on the 
                day before the date of enactment of this part) 
                of the total amount expended during such 
                quarter as foster care maintenance payments 
                under the child protection program under this 
                part for children in foster family homes or 
                child-care institutions; plus
                    ``(B) an amount equal to the Federal 
                medical assistance percentage (as defined in 
                section 1905(b) of this Act (as so in effect)) 
                of the total amount expended during such 
                quarter as adoption assistance payments under 
                the child protection program under this part 
                pursuant to adoption assistance agreements.
            ``(2) Estimates by the secretary.--
                    ``(A) In general.--The Secretary shall, 
                prior to the beginning of each quarter, 
                estimate the amount to which a State will be 
                entitled to receive under paragraph (1) for 
                such quarter, such estimates to be based on--
                            ``(i) a report filed by the State 
                        containing its estimate of the total 
                        sum to be expended in such quarter in 
                        accordance with paragraph (1), and 
                        stating the amount appropriated or made 
                        available by the State and its 
                        political subdivisions for such 
                        expenditures in such quarter, and if 
                        such amount is less than the State's 
                        proportionate share of the total sum of 
                        such estimated expenditures, the source 
                        or sources from which the difference is 
                        expected to be derived;
                            ``(ii) records showing the number 
                        of children in the State receiving 
                        assistance under this part; and
                            ``(iii) such other information as 
                        the Secretary may find necessary.
                    ``(B) Payments.--The Secretary shall pay to 
                the States the amounts so estimated under 
                subparagraph (A), reduced or increased to the 
                extent of any overpayment or underpayment which 
                the Secretary determines was made under this 
                subsection to such State for any prior quarter 
                and with respect to which adjustment has not 
                already been made under this paragraph.
                    ``(C) Pro Rata Share.-- The pro rata share 
                to which the United States is equitably 
                entitled, as determined by the Secretary, of 
                the net amount recovered during any quarter by 
                the State or any political subdivision thereof 
                with respect to foster care and adoption 
                assistance furnished under this part shall be 
                considered an overpayment to be adjusted under 
                this paragraph.
            ``(3) Allowance or disallowance of claim.--
                    ``(A) In general.--Within 60 days after 
                receipt of a State claim for expenditures 
                pursuant to paragraph (2)(A), the Secretary 
                shall allow, disallow, or defer such claim.
                    ``(B) Notice.--Within 15 days after a 
                decision to defer a State claim, the Secretary 
                shall notify the State of the reasons for the 
                deferral and of the additional information 
                necessary to determine the allowability of the 
                claim.
                    ``(C) Decision.--Within 90 days after 
                receiving such necessary information (in 
                readily reviewable form), the Secretary shall--
                            ``(i) disallow the claim, if able 
                        to complete the review and determine 
                        that the claim is not allowable; or
                            ``(ii) in any other case, allow the 
                        claim, subject to disallowance (as 
                        necessary)--
                                    ``(I) upon completion of 
                                the review, if it is determined 
                                that the claim is not 
                                allowable; or
                                    ``(II) on the basis of 
                                findings of an audit or 
                                financial management review.
    ``(c) Definitions.--As used in this section:
            ``(1) Child protection amount.--The term `child 
        protection amount' means--
                    ``(A) $2,047,000,000 for fiscal year 1997;
                    ``(B) $2,200,000,000 for fiscal year 1998;
                    ``(C) $2,342,000,000 for fiscal year 1999;
                    ``(D) $2,487,000,000 for fiscal year 2000;
                    ``(E) $2,592,000,000 for fiscal year 2001; 
                and
                    ``(F) $2,766,000,000 for fiscal year 2002;
            ``(2) State share.--
                    ``(A) In general.--The term `State share' 
                means the qualified child protection expenses 
                of the State divided by the sum of the 
                qualified child protection expenses of all of 
                the States.
                    ``(B) Qualified child protection 
                expenses.--The term `qualified child protection 
                expenses' means, with respect to a State the 
                greater of--
                            ``(i) the total amount of--
                                    ``(I) \1/3\ of the Federal 
                                grant amounts to the State 
                                under the provisions of law 
                                specified in clauses (i), (ii), 
                                and (iii) of subparagraph (C) 
                                for fiscal years 1992, 1993, 
                                and 1994; and
                                    ``(II) \1/3\ of the Federal 
                                share of expenditures (without 
                                regard to disputed 
                                expenditures) with respect to 
                                administration, training, and 
                                statewide mechanized data 
                                collection and information 
                                systems under the provision of 
                                law specified in subparagraph 
                                (C)(iv) as reported by the 
                                State on ACF Form IV-E-12 for 
                                fiscal years 1992, 1993, and 
                                1994; or
                            ``(ii) the total amount of--
                                    ``(I) the Federal grant 
                                amounts to the State under the 
                                provisions of law specified in 
                                clauses (i), (ii), and (iii) of 
                                subparagraph (C) for fiscal 
                                year 1994; and
                                    ``(II) the Federal share of 
                                expenditures (without regard to 
                                disputed expenditures) with 
                                respect to administration, 
                                training, and statewide 
                                mechanized data collection and 
                                information systems under the 
                                provision of law specified in 
                                subparagraph (C)(iv) as 
                                reported by the State on ACF 
                                Form IV-E-12 for fiscal year 
                                1994.
                    ``(C) Provisions of law.--The provisions of 
                law specified in this subparagraph are the 
                following (as in effect with respect to each of 
                the fiscal years referred to in subparagraph 
                (B)):
                            ``(i) Section 423 of this Act.
                            ``(ii) Section 434 of this Act.
                            ``(iii) Section 474(a)(4) of this 
                        Act.
                            ``(iv) Section 474(a)(3) of this 
                        Act.
                    ``(D) Determination of information.--In 
                determining amounts for fiscal years 1992, 
                1993, and 1994 under subclause (I) of clauses 
                (i) and (ii) of subparagraph (B), the Secretary 
                shall use information listed as actual amounts 
                in the Justification for Estimates for 
                Appropriation Committees of the Administration 
                for Children and Families for fiscal years 
                1994, 1995, and 1996, respectively. In 
                determining amounts for fiscal years 1992, 
                1993, and 1994 under subclause (II) of clauses 
                (i) and (ii) of subparagraph (B), the Secretary 
                shall use information available as of February 
                22, 1995.
    ``(d) Use of Grant.--
            ``(1) In general.--A State to which a grant is made 
        under this section may use the grant in any manner that 
        the State deems appropriate to accomplish the purpose 
        of this part.
            ``(2) Timing of expenditures.--A State to which a 
        grant is made under this section for a fiscal year 
        shall expend the total amount of the grant not later 
        than the end of the immediately succeeding fiscal year.
            ``(3) Rule of interpretation.--This part shall not 
        be interpreted to prohibit short- and long-term foster 
        care facilities operated for profit from receiving 
        funds provided under this part.
    ``(e) Timing of Payments.--The Secretary shall pay each 
eligible State the amount of the grant payable to the State 
under this section in quarterly installments.
    ``(f) Penalties.--
            ``(1) For use of grant in violation of this part.--
        If an audit conducted pursuant to chapter 75 of title 
        31, United States Code, finds that an amount paid to a 
        State under this section for a fiscal year has been 
        used in violation of this part, then the Secretary 
        shall reduce the amount of the grant that would (in the 
        absence of this paragraph) be payable to the State 
        under this section for the immediately succeeding 
        fiscal year by the amount so used, plus 5 percent of 
        the grant paid under this section to the State for such 
        fiscal year.
            ``(2) For failure to maintain effort.--
                    ``(A) In general.--If an audit conducted 
                pursuant to chapter 75 of title 31, United 
                States Code, finds that the amount expended by 
                a State (other than from amounts provided by 
                the Federal Government) during the fiscal years 
                specified in subparagraph (B), to carry out the 
                State program funded under this part is less 
                than the applicable percentage specified in 
                such subparagraph of the total amount expended 
                by the State (other than from amounts provided 
                by the Federal Government) during fiscal year 
                1994 under parts B and E of this title (as in 
                effect on the day before the date of the 
                enactment of this part), then the Secretary 
                shall reduce the amount of the grant that would 
                (in the absence of this paragraph) be payable 
                to the State under this section for the 
                immediately succeeding fiscal year by the 
                amount of the difference, plus 5 percent of the 
                grant paid under this section to the State for 
                such fiscal year.
                    ``(B) Specification of fiscal years and 
                applicable percentages.--The fiscal years and 
                applicable percentages specified in this 
                subparagraph are as follows:
                            ``(i) For fiscal years 1997 and 
                        1998, 100 percent.
                            ``(ii) For fiscal years 1999 
                        through 2002, 75 percent.
            ``(3) For failure to submit required report.--
                    ``(A) In general.--The Secretary shall 
                reduce by 3 percent the amount of the grant 
                that would (in the absence of this paragraph) 
                be payable to a State under this section for a 
                fiscal year if the Secretary determines that 
                the State has not submitted the report required 
                by section 427(b) for the immediately preceding 
                fiscal year, within 6 months after the end of 
                the immediately preceding fiscal year.
                    ``(B) Rescission of penalty.--The Secretary 
                shall rescind a penalty imposed on a State 
                under subparagraph (A) with respect to a report 
                for a fiscal year if the State submits the 
                report before the end of the immediately 
                succeeding fiscal year.
            ``(4) For failure to comply with sampling methods 
        requirements.--The Secretary may reduce by not more 
        than 1 percent the amount of the grant that would (in 
        the absence of this paragraph) be payable to a State 
        under this section for a succeeding fiscal year if the 
        Secretary determines that the State has not complied 
        with the Secretary's sampling methods requirements 
        under section 427(c)(2) during the prior fiscal year.
            ``(5) State funds to replace reductions in grant.--
        A State which has a penalty imposed against it under 
        this subsection for a fiscal year shall expend 
        additional State funds in an amount equal to the amount 
        of the penalty for the purpose of carrying out the 
        State program under this part during the immediately 
        succeeding fiscal year.
            ``(6) Reasonable cause exception.--Except in the 
        case of the penalty described in paragraph (2), the 
        Secretary may not impose a penalty on a State under 
        this subsection with respect to a requirement if the 
        Secretary determines that the State has reasonable 
        cause for failing to comply with the requirement.
            ``(7) Corrective compliance plan.--
                    ``(A) In general.--
                            ``(i) Notification of violation.--
                        Before imposing a penalty against a 
                        State under this subsection with 
                        respect to a violation of this part, 
                        the Secretary shall notify the State of 
                        the violation and allow the State the 
                        opportunity to enter into a corrective 
                        compliance plan in accordance with this 
                        paragraph which outlines how the State 
                        will correct the violation and how the 
                        State will insure continuing compliance 
                        with this part.
                            ``(ii) 60-day period to propose a 
                        corrective compliance plan.--During the 
                        60-day period that begins on the date 
                        the State receives a notice provided 
                        under clause (i) with respect to a 
                        violation, the State may submit to the 
                        Federal Government a corrective 
                        compliance plan to correct the 
                        violation.
                            ``(iii) Consultation about 
                        modifications.--During the 60-day 
                        period that begins with the date the 
                        Secretary receives a corrective 
                        compliance plan submitted by a State in 
                        accordance with clause (ii), the 
                        Secretary may consult with the State on 
                        modifications to the plan.
                            ``(iv) Acceptance of plan.-- A 
                        corrective compliance plan submitted by 
                        a State in accordance with clause (ii) 
                        is deemed to be accepted by the 
                        Secretary if the Secretary does not 
                        accept or reject the plan during the 
                        60-day period that begins on the date 
                        the plan is submitted.
                    ``(B) Effect of correcting violation.--The 
                Secretary may not impose any penalty under this 
                subsection with respect to any violation 
                covered by a State corrective compliance plan 
                accepted by the Secretary if the State corrects 
                the violation pursuant to the plan.
                    ``(C) Effect of failing to correct 
                violation.--The Secretary shall assess some or 
                all of a penalty imposed on a State under this 
                subsection with respect to a violation if the 
                State does not, in a timely manner, correct the 
                violation pursuant to a State corrective 
                compliance plan accepted by the Secretary.
            ``(8) Limitation on amount of penalty.--
                    ``(A) In general.--In imposing the 
                penalties described in this subsection, the 
                Secretary shall not reduce any quarterly 
                payment to a State by more than 25 percent.
                    ``(B) Carryforward of unrecovered 
                penalties.--To the extent that subparagraph (A) 
                prevents the Secretary from recovering during a 
                fiscal year the full amount of all penalties 
                imposed on a State under this subsection for a 
                prior fiscal year, the Secretary shall apply 
                any remaining amount of such penalties to the 
                grant payable to the State under section 423(a) 
                for the immediately succeeding fiscal year.
    ``(g) Treatment of Territories.--
            ``(1) In general.--A territory, as defined in 
        section 1108(b)(1), shall carry out a child protection 
        program in accordance with the provisions of this part.
            ``(2) Payments.--Subject to the mandatory ceiling 
        amounts specified in section 1108, each territory, as 
        so defined, shall be entitled to receive from the 
        Secretary for any fiscal year an amount equal to the 
        total obligations to the territory under section 434 
        (as in effect on the day before the date of the 
        enactment of this part) for fiscal year 1995.
    ``(h) Limitation on Federal Authority.--Except as expressly 
provided in this Act, the Secretary may not regulate the 
conduct of States under this part or enforce any provision of 
this part.

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

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

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

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

``SEC. 426. CITIZEN REVIEW PANELS.

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

``SEC. 427. DATA COLLECTION AND REPORTING.

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

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

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

``SEC. 429. DEFINITIONS.

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

SEC. 702. CONFORMING AMENDMENTS.

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

SEC. 703. EFFECTIVE DATE; TRANSITION RULES.

    (a) Effective Date.--
            (1) In general.--Except as provided in paragraph 
        (2), this subtitle and the amendments made by this 
        subtitle shall take effect on October 1, 1996.
            (2) Exception.--Section 428 of part B of title IV 
        of the Social Security Act, as added by section 701, 
        and section 702(a) shall take effect on the date of the 
        enactment of this subtitle.
            (3) Temporary redesignation of section 428.--During 
        the period beginning on the date of the enactment of 
        this subtitle and ending on October 1, 1996, section 
        428 of part B of title IV of the Social Security Act, 
        as added by section 701, shall be redesignated as 
        section 428A.
    (b) Transition Rules.--
            (1) Claims, actions, and proceedings.--The 
        amendments made by this subtitle shall not apply with 
        respect to--
                    (A) powers, duties, functions, rights, 
                claims, penalties, or obligations applicable to 
                aid, assistance, or services provided before 
                the effective date of this subtitle under the 
                provisions amended; and
                    (B) administrative actions and proceedings 
                commenced before such date, or authorized 
                before such date to be commenced, under such 
                provisions.
            (2) Closing out account for those programs 
        terminated or substantially modified by this 
        subtitle.--In closing out accounts, Federal and State 
        officials may use scientifically acceptable statistical 
        sampling techniques. Claims made under programs which 
        are repealed or substantially amended in this subtitle 
        and which involve State expenditures in cases where 
        assistance or services were provided during a prior 
        fiscal year, shall be treated as expenditures during 
        fiscal year 1995 for purposes of reimbursement even if 
        payment was made by a State on or after October 1, 
        1995. States shall complete the filing of all claims no 
        later than September 30, 1997. Federal department heads 
        shall--
                    (A) use the single audit procedure to 
                review and resolve any claims in connection 
                with the close out of programs; and
                    (B) reimburse States for any payments made 
                for assistance or services provided during a 
                prior fiscal year from funds for fiscal year 
                1995, rather than the funds authorized by this 
                subtitle.

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

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

           Subtitle B--Child and Family Services Block Grant

SEC. 751. CHILD AND FAMILY SERVICES BLOCK GRANT.

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

``SEC. 1. SHORT TITLE.

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

``SEC. 2. FINDINGS.

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

``SEC. 3. PURPOSES.

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

``SEC. 4. DEFINITIONS.

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

                     ``TITLE I--GENERAL BLOCK GRANT

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

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

``SEC. 102. ELIGIBLE STATES.

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

``SEC. 103. DATA COLLECTION AND REPORTING.

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

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

``SEC. 201. RESEARCH GRANTS.

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

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

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

``SEC. 203. GRANTS FOR DEMONSTRATION PROJECTS.

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

``SEC. 204. TECHNICAL ASSISTANCE.

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

``SEC. 205. TRAINING RESOURCES.

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

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

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

``SEC. 207. PEER REVIEW FOR GRANTS.

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

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

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

                    ``TITLE III--GENERAL PROVISIONS

``SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

``SEC. 303. TRANSITIONAL PROVISION.

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

``SEC. 304. RULE OF CONSTRUCTION.

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

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

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

SEC. 752. REAUTHORIZATIONS.

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

SEC. 753. REPEALS.

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

                         TITLE VIII--CHILD CARE

SEC. 801. SHORT TITLE AND REFERENCES.

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

SEC. 802. GOALS.

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

SEC. 803. AUTHORIZATION OF APPROPRIATIONS AND ENTITLEMENT AUTHORITY.

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

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 418. FUNDING FOR CHILD CARE.

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

SEC. 804. LEAD AGENCY.

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

SEC. 805. APPLICATION AND PLAN.

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

SEC. 806. LIMITATION ON STATE ALLOTMENTS.

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

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

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

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

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

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

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

SEC. 809. ADMINISTRATION AND ENFORCEMENT.

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

SEC. 810. PAYMENTS.

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

SEC. 811. ANNUAL REPORT AND AUDITS.

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

SEC. 812. REPORT BY THE SECRETARY.

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

SEC. 813. ALLOTMENTS.

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

SEC. 814. DEFINITIONS.

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

SEC. 815. REPEALS.

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

SEC. 816. EFFECTIVE DATE.

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

                   TITLE IX--CHILD NUTRITION PROGRAMS

                 Subtitle A--National School Lunch Act

SEC. 901. STATE DISBURSEMENT TO SCHOOLS.

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

SEC. 902. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

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

SEC. 903. FREE AND REDUCED PRICE POLICY STATEMENT.

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

SEC. 904. SPECIAL ASSISTANCE.

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

SEC. 905. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

SEC. 906. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

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

SEC. 907. COMMODITY DISTRIBUTION.

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

SEC. 908. CHILD CARE FOOD PROGRAM.

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

SEC. 909. PILOT PROJECTS.

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

SEC. 910. REDUCTION OF PAPERWORK.

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

SEC. 911. INFORMATION ON INCOME ELIGIBILITY.

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

SEC. 912. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.

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

SEC. 913. INFORMATION CLEARINGHOUSE.

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

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

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

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

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

                Subtitle B--Child Nutrition Act of 1966

SEC. 921. SPECIAL MILK PROGRAM.

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

SEC. 922. FREE AND REDUCED PRICE POLICY STATEMENT.

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

SEC. 923. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.

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

SEC. 924. STATE ADMINISTRATIVE EXPENSES.

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

SEC. 925. REGULATIONS.

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

SEC. 926. PROHIBITIONS.

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

SEC. 927. MISCELLANEOUS PROVISIONS AND DEFINITIONS.

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

SEC. 928. ACCOUNTS AND RECORDS.

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

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

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

SEC. 930. CASH GRANTS FOR NUTRITION EDUCATION.

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

SEC. 931. NUTRITION EDUCATION AND TRAINING.

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

SEC. 932. BREASTFEEDING PROMOTION PROGRAM.

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

            TITLE X--FOOD STAMPS AND COMMODITY DISTRIBUTION

SEC. 1001. SHORT TITLE.

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

                     Subtitle A--Food Stamp Program

SEC. 1011. DEFINITION OF CERTIFICATION PERIOD.

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

SEC. 1012. DEFINITION OF COUPON.

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

SEC. 1013. TREATMENT OF CHILDREN LIVING AT HOME.

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

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

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

SEC. 1015. ADJUSTMENT OF THRIFTY FOOD PLAN.

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

SEC. 1016. DEFINITION OF HOMELESS INDIVIDUAL.

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

SEC. 1017. STATE OPTION FOR ELIGIBILITY STANDARDS.

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

SEC. 1018. EARNINGS OF STUDENTS.

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

SEC. 1019. ENERGY ASSISTANCE.

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

SEC. 1020. DEDUCTIONS FROM INCOME.

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

SEC. 1021. VEHICLE ALLOWANCE.

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

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

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

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

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

SEC. 1024. DISQUALIFICATION OF CONVICTED INDIVIDUALS.

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

SEC. 1025. DISQUALIFICATION.

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

SEC. 1026. CARETAKER EXEMPTION.

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

SEC. 1027. EMPLOYMENT AND TRAINING.

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

SEC. 1028. COMPARABLE TREATMENT FOR DISQUALIFICATION.

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

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

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

SEC. 1030. DISQUALIFICATION OF FLEEING FELONS.

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

SEC. 1031. COOPERATION WITH CHILD SUPPORT AGENCIES.

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

SEC. 1032. DISQUALIFICATION RELATING TO CHILD SUPPORT ARREARS.

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

SEC. 1033. WORK REQUIREMENT.

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

SEC. 1034. ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

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

SEC. 1035. VALUE OF MINIMUM ALLOTMENT.

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

SEC. 1036. BENEFITS ON RECERTIFICATION.

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

SEC. 1037. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED HOUSEHOLDS.

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

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

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

SEC. 1039. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN CENTERS.

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

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

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

SEC. 1041. AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS.

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

SEC. 1042. INFORMATION FOR VERIFYING ELIGIBILITY FOR AUTHORIZATION.

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

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

    Section 9(d) of the Food Stamp Act of 1977 (7 U.S.C. 
2018(d)) is amended by adding at the end the following: ``A 
retail food store or wholesale food concern that is denied 
approval to accept and redeem coupons because the store or 
concern does not meet criteria for approval established by the 
Secretary may not, for at least 6 months, submit a new 
application to participate in the program. The Secretary may 
establish a longer time period under the preceding sentence, 
including permanent disqualification, that reflects the 
severity of the basis of the denial.''.

SEC. 1044. OPERATION OF FOOD STAMP OFFICES.

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

SEC. 1045. STATE EMPLOYEE AND TRAINING STANDARDS.

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

SEC. 1046. EXCHANGE OF LAW ENFORCEMENT INFORMATION.

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

SEC. 1047. EXPEDITED COUPON SERVICE.

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

SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.

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

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

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

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

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

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

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

SEC. 1052. COLLECTION OF OVERISSUANCES.

    (a) Collection of Overissuances.--Section 13 of the Food 
Stamp Act of 1977 (7 U.S.C. 2022) is amended--
            (1) by striking subsection (b) and inserting the 
        following:
    ``(b) Collection of Overissuances.--
            ``(1) In general.--Except as otherwise provided in 
        this subsection, a State agency shall collect any 
        overissuance of coupons issued to a household by--
                    ``(A) reducing the allotment of the 
                household;
                    ``(B) withholding amounts from unemployment 
                compensation from a member of the household 
                under subsection (c);
                    ``(C) recovering from Federal pay or a 
                Federal income tax refund under subsection (d); 
                or
                    ``(D) any other means.
            ``(2) Cost effectiveness.--Paragraph (1) shall not 
        apply if the State agency demonstrates to the 
        satisfaction of the Secretary that all of the means 
        referred to in paragraph (1) are not cost effective.
            ``(3) Maximum reduction absent fraud.--If a 
        household received an overissuance of coupons without 
        any member of the household being found ineligible to 
        participate in the program under section 6(b)(1) and a 
        State agency elects to reduce the allotment of the 
        household under paragraph (1)(A), the State agency 
        shall not reduce the monthly allotment of the household 
        under paragraph (1)(A) by an amount in excess of the 
        greater of--
                    ``(A) 10 percent of the monthly allotment 
                of the household; or
                    ``(B) $10.
            ``(4) Procedures.--A State agency shall collect an 
        overissuance of coupons issued to a household under 
        paragraph (1) in accordance with the requirements 
        established by the State agency for providing notice, 
        electing a means of payment, and establishing a time 
        schedule for payment.''; and
            (2) in subsection (d)--
                    (A) by striking ``as determined under 
                subsection (b) and except for claims arising 
                from an error of the State agency,'' and 
                inserting ``, as determined under subsection 
                (b)(1),''; and
                    (B) by inserting before the period at the 
                end the following: ``or a Federal income tax 
                refund as authorized by section 3720A of title 
                31, United States Code''.
    (b) Conforming Amendments.--Section 11(e)(8) of the Act (7 
U.S.C. 2020(e)(8)) is amended--
            (1) by striking ``and excluding claims'' and all 
        that follows through ``such section''; and
            (2) by inserting before the semicolon at the end 
        the following: ``or a Federal income tax refund as 
        authorized by section 3720A of title 31, United States 
        Code''.
    (c) Retention Rate.--Section 16(a) of the Act (7 U.S.C. 
2025(a)) is amended by striking ``25 percent during the period 
beginning October 1, 1990'' and all that follows through 
``error of a State agency'' and inserting the following: ``25 
percent of the overissuances collected by the State agency 
under section 13, except those overissuances arising from an 
error of the State agency''.

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

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

SEC. 1054. EXPANDED CRIMINAL FORFEITURE FOR VIOLATIONS.

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

SEC. 1055. LIMITATION OF FEDERAL MATCH.

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

SEC. 1056. STANDARDS FOR ADMINISTRATION.

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

SEC. 1057. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.

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

SEC. 1058. WAIVER AUTHORITY.

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

SEC. 1059. AUTHORIZATION OF PILOT PROJECTS.

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

SEC. 1060. RESPONSE TO WAIVERS.

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

SEC. 1061. EMPLOYMENT INITIATIVES PROGRAM.

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

SEC. 1062. ADJUSTABLE FOOD STAMP CAP.

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

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

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

SEC. 1064. SIMPLIFIED FOOD STAMP PROGRAM.

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

``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.

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

SEC. 1065. STATE FOOD ASSISTANCE BLOCK GRANT.

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

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

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

SEC. 1066. AMERICAN SAMOA.

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

``SEC. 26. TERRITORY OF AMERICAN SAMOA.

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

SEC. 1067. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

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

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

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

              Subtitle B--Commodity Distribution Programs

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

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

SEC. 1072. EMERGENCY FOOD ASSISTANCE PROGRAM.

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

``SEC. 201A. DEFINITIONS.

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

``SEC. 202A. STATE PLAN.

    ``(a) In General.--To receive commodities under this Act, a 
State shall submit a plan of operation and administration every 
4 years to the Secretary for approval. The plan may be amended 
at any time, with the approval of the Secretary.
    ``(b) Requirements.--Each plan shall--
            ``(1) designate the State agency responsible for 
        distributing the commodities received under this Act;
            ``(2) set forth a plan of operation and 
        administration to expeditiously distribute commodities 
        under this Act;
            ``(3) set forth the standards of eligibility for 
        recipient agencies; and
            ``(4) set forth the standards of eligibility for 
        individual or household recipients of commodities, 
        which shall require--
                    ``(A) individuals or households to be 
                comprised of needy persons; and
                    ``(B) individual or household members to be 
                residing in the geographic location served by 
                the distributing agency at the time of applying 
                for assistance.
    ``(c) State Advisory Board.--The Secretary shall encourage 
each State receiving commodities under this Act to establish a 
State advisory board consisting of representatives of all 
interested entities, both public and private, in the 
distribution of commodities received under this Act in the 
State.''.
    (c) Authorization of Appropriations For Administrative 
Funds.--Section 204(a)(1) of the Act (7 U.S.C. 612c note) is 
amended--
            (1) in the first sentence--
                    (A) by striking ``1991 through 1995' and 
                inserting ``1996 through 2002''; and
                    (B) by striking ``for State and local'' and 
                all that follows through ``under this title'' 
                and inserting ``to pay for the direct and 
                indirect administrative costs of the State 
                related to the processing, transporting, and 
                distributing to eligible recipient agencies of 
                commodities provided by the Secretary under 
                this Act and commodities secured from other 
                sources''; and
            (2) by striking the fourth sentence.
    (d) Delivery of Commodities.--Section 214 of the Act (7 
U.S.C. 612c note) is amended--
            (1) by striking subsections (a) through (e) and 
        (j);
            (2) by redesignating subsections (f) through (i) as 
        subsections (a) through (d), respectively;
            (3) in subsection (b), as redesignated by paragraph 
        (2)--
                    (A) in the first sentence, by striking 
                ``subsection (f) or subsection (j) if 
                applicable,'' and inserting ``subsection (a)''; 
                and
                    (B) in the second sentence, by striking 
                ``subsection (f)'' and inserting ``subsection 
                (a)'';
            (4) by striking subsection (c), as redesignated by 
        paragraph (2), and inserting the following:
    ``(c) Administration.--
            ``(1) In general.--Commodities made available for 
        each fiscal year under this section shall be delivered 
        at reasonable intervals to States based on the grants 
        calculated under subsection (a), or reallocated under 
        subsection (b), before December 31 of the following 
        fiscal year.
            ``(2) Entitlement.--Each State shall be entitled to 
        receive the value of additional commodities determined 
        under subsection (a).''; and
            (5) in subsection (d), as redesignated by paragraph 
        (2), by striking ``or reduce'' and all that follows 
        through ``each fiscal year''.
    (e) Technical Amendments.--The Act (7 U.S.C. 612c note) is 
amended--
            (1) in the first sentence of section 203B(a), by 
        striking ``203 and 203A of this Act'' and inserting 
        ``203A'';
            (2) in section 204(a), by striking ``title'' each 
        place it appears and inserting ``Act'';
            (3) in the first sentence of section 210(e), by 
        striking ``(except as otherwise provided for in section 
        214(j))''; and
            (4) by striking section 212.
    (f) Report on EFAP.--Section 1571 of the Food Security Act 
of 1985 (Public Law 99-198; 7 U.S.C. 612c note) is repealed.
    (g) Availability of Commodities Under the Food Stamp 
Program.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 
as amended by section 1067, is further amended by adding at the 
end the following:

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

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

SEC. 1073. FOOD BANK DEMONSTRATION PROJECT.

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

SEC. 1074. HUNGER PREVENTION PROGRAMS.

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

SEC. 1075. REPORT ON ENTITLEMENT COMMODITY PROCESSING.

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

SEC. 1076. NATIONAL COMMODITY PROCESSING.

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

                        TITLE XI--MISCELLANEOUS

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

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

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

    (a) Eligibility for Assistance.--The United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
            (1) in section 6(l)--
                    (A) in paragraph (5), by striking ``and'' 
                at the end;
                    (B) in paragraph (6), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by inserting immediately after 
                paragraph (6) the following new paragraph:
            ``(7) provide that it shall be cause for immediate 
        termination of the tenancy of a public housing tenant 
        if such tenant--
                    ``(A) is fleeing to avoid prosecution, or 
                custody or confinement after conviction, under 
                the laws of the place from which the individual 
                flees, for a crime, or attempt to commit a 
                crime, which is a felony under the laws of the 
                place from which the individual flees, or 
                which, in the case of the State of New Jersey, 
                is a high misdemeanor under the laws of such 
                State; or
            ``(2) is violating a condition of probation or 
        parole imposed under Federal or State law.''; and
            (2) in section 8(d)(1)(B)--
                    (A) in clause (iii), by striking ``and'' at 
                the end;
                    (B) in clause (iv), by striking the period 
                at the end and inserting ``; and''; and
                    (C) by adding after clause (iv) the 
                following new clause:
                            ``(v) it shall be cause for 
                        termination of the tenancy of a tenant 
                        if such tenant--
                                    ``(I) is fleeing to avoid 
                                prosecution, or custody or 
                                confinement after conviction, 
                                under the laws of the place 
                                from which the individual 
                                flees, for a crime, or attempt 
                                to commit a crime, which is a 
                                felony under the laws of the 
                                place from which the individual 
                                flees, or which, in the case of 
                                the State of New Jersey, is a 
                                high misdemeanor under the laws 
                                of such State; or
                                    ``(II) is violating a 
                                condition of probation or 
                                parole imposed under Federal or 
                                State law;''.
    (b) Provision of Information to Law Enforcement Agencies.--
Title I of the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.), as amended by section 601 of this Act, is 
amended by adding at the end the following:

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

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

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

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

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

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

SEC. 1105. FOOD STAMP ELIGIBILITY.

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

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

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

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

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

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

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

SEC. 1109. ABSTINENCE EDUCATION.

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

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

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

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

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

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

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

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

  TABLE 1.--ORGANIZATION OF CONFERENCE COMPARISON DOCUMENT BY TITLE AS  
         COMPARED WITH TITLES OF HOUSE BILL AND SENATE AMENDMENT        
------------------------------------------------------------------------
                                 Conference                             
         Name of title              title      House title  Senate title
------------------------------------------------------------------------
Part 1:                                                                 
    Block Grants for Temporary  I             I             I           
     Assistance for Needy                                               
     Families.                                                          
    Supplemental Security       II            VI            II          
     Income.                                                            
    Child Support Enforcement.  III           VII           IX          
    Restricting Welfare and     IV            IV            V           
     Public Benefits in for                                             
     Aliens.                                                            
    Reductions in Federal       V             ............  XII         
     Government Positions.                                              
    Housing...................  VI            ............  X           
    Protection of Battered      (\1\)         ............  VIII        
     Individuals.                                                       
    Miscellaneous.............  XI            VIII          XIII        
Part 2:                                                                 
    Child Protection..........  VII           II            XI          
    Adoption Expenses.........  VII           ............  VIII        
    Child Care Block Grant....  VIII          III           VI          
Part: 3                                                                 
    Child Nutrition...........  IX            III           IV          
    Food Stamp Reform.........  X             V             III         
    Commodity Distribution....  X             V             IV          
------------------------------------------------------------------------
\1\ Not included.                                                       

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

                       1. Short title (Section 1)

Present law

      Not applicable.

House bill

      The Personal Responsibility Act of 1995.

Senate amendment

      The Work Opportunity Act of 1995.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment as follows: The personal Responsibility and 
Work Opportunity Act of 1995.

                             2. Objectives

Present law

      To provide for the general welfare by enabling the 
several States to make more adequate provision for dependent 
children. (Social Security Act, 1935)

House bill

      To restore the American family, reduce illegitimacy, 
control welfare spending and reduce welfare dependence.

Senate amendment

      To enhance support and work opportunities for families 
with children, reduce welfare dependence, and control welfare 
spending.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment as follows: To restore the American family, 
enhance support and work opportunities for families with 
children, reduce out-of-wedlock pregnancies, reduce welfare 
dependence, and control welfare spending.

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

Present law

      No provision.

House bill

      It is the sense of the Congress that marriage is the 
foundation of a successful society, and an essential social 
institution which promotes the interests of children and 
society at large. The negative consequences of an out-of-
wedlock birth on the child, the mother, and society are well 
documented. Yet the nation suffers unprecedented and growing 
levels of illegitimacy. In light of this crisis, the reduction 
of out-of-wedlock births is an important government interest 
and the policy contained in provisions of this title address 
the crisis.

Senate amendment

      Congress finds that marriage is the foundation of a 
successful society and an essential institution that promotes 
the interests of children. Promotion of responsible fatherhood 
and motherhood is integral to successful child-rearing and 
well-being of children. It is the sense of Congress that 
prevention of out-of-wedlock pregnancy and reduction in out-of-
wedlock birth are very important government interests and that 
the policy contained in provisions of this title is intended to 
address the crisis.

Conference agreement

      The conference agreement follows the Senate amendment.

           4. Reference to Social Security Act (Section 102)

Present law

      Not applicable.

House bill

      No provision.

Senate amendment

      No provision.

Conference agreement

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

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

                               A. Purpose

Present law

      Title IV-A, which provides grants to States for aid and 
services to needy families with children (AFDC), is designed to 
encourage care of dependent children in their own homes by 
enabling States to provide cash aid and services, maintain and 
strengthen family life, and help parents attain maximum self-
support consistent with maintaining parental care and 
protection.

House bill

      Block grants for temporary assistance for needy families 
(Title IV-A) are established to increase the flexibility of 
States in operating a program designed to:
            (1) provide assistance to needy families so that 
        children may be cared for in their homes or in the 
        homes of relatives;
            (2) end the dependence of needy parents on 
        government benefits by promoting work and marriage; and
            (3) discourage out-of-wedlock births.

Senate amendment

      Block grants for temporary assistance for needy families 
(Title IV-A) are established to increase the flexibility of 
States in operating a program designed to:
            (1) provide assistance to needy families with minor 
        children;
            (2) provide job preparation and opportunities for 
        such families; and
            (3) prevent and reduce the incidence of out-of-
        wedlock pregnancies, with a special emphasis on teen 
        pregnancies, and establish annual goals for preventing 
        and reducing these pregnancies for fiscal years 1996 
        through 2000.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment to read as follows:
      Block grants for temporary assistance for needy families 
(Title IV-A) are established to increase the flexibility of 
States in operating a program designed to:
            (1) provide assistance to needy families so that 
        children may be cared for in their own homes or in the 
        homes of relatives;
            (2) end the dependence of needy parents on 
        government benefits by promoting job preparation, work, 
        and marriage;
            (3) prevent and reduce the incidence of out-of-
        wedlock pregnancies and establish annual numerical 
        goals for preventing and reducing the incidence of 
        these pregnancies; and
            (4) encourage the formation and maintenance of two-
        parent families.

                     B. Eligible States; State Plan

Present law

      A State must have an approved State plan for aid and 
services to needy families containing 43 provisions, ranging 
from single-agency administration to overpayment recovery 
rules. State plans explain the aid and services that are 
offered by the State. Aid is defined as money payments. For 
most parents without a child under age 3, States must provide 
education, work, or training under the JOBS program to help 
needy families with children avoid long-term welfare 
dependence. To receive Federal funds, States must share in 
program costs. The Federal share of costs (matching rate) 
varies among States and is inversely related to the square of 
State per capita income. For AFDC benefits and child care, the 
Medicaid matching rate is used. This rate now ranges from 50 
percent to 79 percent among States and averages about 55 
percent. For JOBS activities, the rate averages 60 percent; for 
administrative costs, 50 percent. In FY 1995, 20 percent of 
employable (nonexempt) adult recipients must participate in 
education, work, or training under JOBS, and at least one 
parent in 50 percent of unemployed-parent families must 
participate at least 16 hours weekly in an unpaid work 
experience or other work program. States must restrict 
disclosure of information to purposes directly connected to 
administration of the program and to any connected 
investigation, prosecution, legal proceeding or audit. Each 
State must offer family planning services to all 
``appropriate'' cases, including minors considered sexually 
active. States may not require acceptance of these services. 
States must have in effect an approved child support program. 
States must also have an approved plan for foster care and 
adoption assistance. States must have an income and 
verification system (covering AFDC, Medicaid, unemployment 
compensation, food stamps, and--in outlying areas--adult cash 
aid) in accordance with Sec. 1137 of the Social Security Act.

House bill

      An ``eligible State'' is a State that, during the 3-year 
period immediately preceding the fiscal year, had submitted a 
plan to the Secretary of HHS for approval. The plan must 
include:
            (1) A written document describing how the State 
        will:
                    a. conduct a program that provides cash 
                benefits to needy families with children, and 
                provides parents with help in preparing for and 
                obtaining employment and becoming self-
                sufficient;
                    b. require at least one parent in a family 
                that has received benefits for 24 months to 
                engage in work activities defined by the State;
                    c. ensure that parents engage in work 
                activities in accord with section 404;
                    d. treat interstate immigrants, if their 
                benefits differ from State residents;
                    e. take such reasonable steps as State 
                deems necessary to restrict use and disclosure 
                of information about recipients;
                    f. take actions to reduce out-of-wedlock 
                pregnancies, including helping unmarried 
                mothers and fathers avoid subsequent 
                pregnancies and provide care for their 
                children; and
                    g. reduce teen pregnancy, including through 
                the provision of education and counseling to 
                male and female teens.
            (2) Certification by the Governor that the State 
        will operate a child support enforcement program.
            (3) Certification by the Governor that the State 
        will operate a child protection program, including a 
        foster care and adoption program.
            (4) The Secretary shall determine whether the State 
        plan contains the material required.

Senate amendment

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

Conference agreement

      An ``eligible State'' is a State that once every two 
years submits to the Secretary an outline of its program and 
various certifications on programs offered by the State. The 
detailed requirements of State plan submissions to the 
Secretary are:
            (1) A written document describing how the State 
        will:
                    a. conduct a program that provides 
                assistance to needy families with children (or 
                families that include a pregnant mother) and 
                provides parents with job preparation, work and 
                support services to enable them to leave the 
                program and become self-sufficient;
                    b. conduct a program designed to serve all 
                political subdivisions;
                    c. require a parent or caretaker to engage 
                in work, as defined by the State, after 24 
                months of benefits, or, if earlier, when the 
                State finds the person ready for work;
                    d. ensure that families engage in work 
                activities in accord with section 407;
                    e. treat families moving into the State 
                from another State, if such families are to be 
                treated differently than other families;
                    f. take such reasonable steps as State 
                deems necessary to safeguard and restrict the 
                use and disclosure of information about 
                recipients;
                    g. establish goals and take action to 
                prevent and reduce out-of-wedlock pregnancies, 
                with emphasis on teenage pregnancies; and
                    h. treat noncitizens, if the benefits for 
                which they may be eligible will be different 
                than those available to citizens.
            (2) Certification by the chief executive officer 
        that the State operate a child support enforcement 
        program;
            (3) Certification by the chief executive officer 
        that the State will operate a child protection program 
        and a foster care and adoption program under part B;
            (4) Certification by the chief executive officer 
        specifying which State agency or agencies will 
        administer and supervise the program and ensuring that 
        local governments and private sector organizations have 
        had 60 days to submit comments about the plan and the 
        design of welfare services in the State;
            (5) Certification by the chief executive officer 
        that the State will provide Indians in each tribe that 
        does not have a tribal family assistance plan with 
        equitable access to assistance under the program; and
            (6) The State shall make available to the public a 
        summary of the State plan.
      For purposes of this section, the term ``Eligible State'' 
means, with respect to a fiscal year, a State that has 
submitted to the Secretary the plan described above within 3 
months after the date of enactment.

                         C. Payments to States

                            (1) Entitlements

Present law

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

House bill

      Each eligible State is entitled to receive a grant from 
the Secretary for each of 5 fiscal years (1996-2000) in the 
amount equal to the State family assistance grant for the 
fiscal year. There is no individual entitlement (implicit in 
bill). For each fiscal year beginning with 1998, a State's 
grant amount is increased by 5 percent if the State 
illegitimacy ratio is 1 percentage point lower in that year 
than its 1995 illegitimacy ratio; the State grant is increased 
10 percent if the illegitimacy ratio is 2 or more percentage 
points lower than its 1995 illegitimacy ration. In 1997, 1998, 
1999, and 2000, a State's grant amount is increased by the 
State's percentage share of national population growth among 
growing States multiplied by $100 million. States that have 
negative population growth are omitted from the calculation. 
The House bill entitles territories to a cash block grant for 
temporary assistance to needy families (on same basis as 
States). It repeals AFDC and foster care/adoption assistance 
(and, accordingly, territorial ceilings for them and for AFDC 
family planning). (Sec. 104(e)(1) of H.R. 4.) It establishes 
new separate territorial ceilings for adult cash welfare. The 
bill retains territorial ceilings for Medicaid, but repeals 
ceilings for AFDC family planning (along with AFDC itself). As 
noted, the bill repeals JOBS. The basic cash block grant for 
outlying areas includes base-year level JOBS funds. Indian 
tribes and Alaska native organizations receive no special 
treatment regarding the cash block grant that will replace 
AFDC. Tribes and native organizations would not administer the 
new grants. The bill repeals JOBS (sec. 104(c)), and the basic 
cash block grant includes base-year level JOBS funds of each 
State (those funds include ones earmarked previously for 
administration by Indian tribes and Alaska native 
organizations). Tribes and native organizations would not 
administer the new grants.

Senate amendment

      The Secretary is required to pay each eligible State for 
each of 5 fiscal years (1996-2000) a grant equal to the State 
family assistance grant for the fiscal year. The amendment 
states that no person is entitled to any assistance under Title 
IV-A. For fiscal years 1998, 1999 and 2000, a State's grant 
amount is increased if the State illegitimacy ratio is at least 
1 percentage point lower than its 1995 illegitimacy ratio and 
the State rate of ``induced pregnancy terminations'' is no 
higher than in 1995. The bonus equals $25 times the number of 
children in the State in families with income below the poverty 
line, according to the most recently available Census data. The 
bonus is $50 per poor child if the illegitimacy ratio is at 
least 2 percentage points lower and the abortion rate no higher 
than in 1995. The bonus shall not be paid if the Secretary 
finds that the illegitimacy ratio declined, or the abortion 
rate held steady, because of a change in State reporting 
methods. The amendment authorizes to be appropriated, and 
appropriates, sums necessary for these grants. For each of 
fiscal years 1997, 1998, 1999, and 2000, qualifying States 
shall receive a supplemental grant amount equal to 2.5 percent 
of the block grant received in the preceding fiscal year. For 
this purpose, a qualifying State is one with an average level 
of State welfare spending per poor person in the preceding 
fiscal year below the national average and with an estimated 
rate of State population growth above the average growth rate 
for all States for the most recent fiscal year for which 
information is available. Additionally, States whose population 
rose more than 10 percent from April 1, 1990, to July 1, 1994, 
are deemed eligible, as are States with a FY 1996 level of 
State welfare spending per poor person that is less than 35 
percent of the national average level. State welfare spending 
per poor person is defined as the State cash block grant 
divided by the number of persons in the State who had an income 
below the poverty line, according to the 1990 decennial census. 
For these grants, a total of $878 million is authorized to be 
appropriated, and is appropriated to be spent in 1997, 1998, 
1999, and 2000. The Senate amendment makes available up to a 
total of $800 million for grants for years FY 1996 through FY 
2000 equal to increased EA expenditures in fiscal year 1995 
attributable to State EA plan amendments made during fiscal 
year 1994. If this amount is insufficient, State EA adjustment 
grants are to be reduced proportionately. For each of 2 years 
(FY 1998 and 1999) the Secretary shall pay a job placement 
performance bonus to eligible States. This bonus fund shall 
equal 3 percent of the national cash block grant for FY1998 and 
4 percent for FY1999. The DHHS Secretary shall develop a 
formula for allocating funds to States on the basis of the 
number of families who, during the previous year, lost 
eligibility for continued aid from the cash block grant program 
because of obtaining unsubsidized employment. The formula must 
provide a larger bonus for families who remain employed for 
longer periods or who are at greater risk of long-term welfare 
enrollment and take into account each State or geographic 
area's unemployment condition. For FY 2000, the Secretary shall 
pay a performance bonus to each qualified State. To qualify for 
a performance bonus, a State must exceed overall average 
performance of all States in a measurement category (in the 
time period starting 6 months after enactment and ending on 
September 30, 1999) or improve its own performance in a 
category by at least 15 percent over that of FY1994. The 5 
measurement categories are: reduction in average length of time 
families receive cash aid, increase in the percentage of 
recipient families that receive child support payments, 
increase in the number of families who lose eligibility for 
continued cash aid as a result of unsubsidized work, increase 
in earnings of recipient families, and reduction in percentage 
of families that become re-eligible for cash aid within 18 
months after leaving the program. The bonus fund shall equal 5 
percent of the national cash block grant and is to be deducted 
from that grant (by reducing each State's FY2000 grant by 5 
percent). For FY 2000, in addition, ``high performance'' States 
shall be entitled to a share of a high performance bonus fund. 
Appropriated for the high performance bonus fund is an amount 
equal to penalties imposed on States (and ``collected'' by 
reductions in State grants) for FYs 1996-1999. High performance 
bonuses will be awarded for each of the 5 measurement 
categories to the 5 States with the highest percentage of 
improvement over their FY94 baseline in the category and to the 
5 States with the highest overall average performance in the 
category. Retains but increases aggregate ceilings in each of 
the territories for cash aid to needy families, cash aid to 
needy aged, blind or disabled adults, and foster care/adoption 
assistance. Ends requirement that territories share cost of 
cash aid for needy families. Ceilings for Puerto Rico, Guam, 
and the Virgin Islands would rise by $19.521 million 
(representing a 12.5 percent increase in the old ceilings, plus 
$8.446 million for their FY1994 JOBS funds). Retains 
territorial ceilings for Medicaid, but repeals ceilings for 
AFDC family planning (along with AFDC itself). The Senate 
amendment repeals JOBS, but increases ceilings for the outlying 
areas to include their base-year level JOBS funds. The Senate 
amendment allows block grant funds to be directly administered 
by Indian tribes and Alaska native organizations. The amount is 
the total of Federal AFDC payments to the State for FY 1994 
attributable to Indiana families. The Senate amendment requires 
the DHHS Secretary to continue to pay Indian tribes and Alaska 
native organizations that have been JOBS grantees an annual 
grant equal to the amount they received in FY95 for JOBS for 
each of fiscal years 1996, 1997, 1998, 1999 and 2000. For this 
purpose it appropriates $7,638,474 for each year. These funds 
are separate from, and in addition to, the national cash block 
grant.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment on grants for family assistance, so that each 
eligible State is entitled to receive a grant equal to the 
State family assistance grant from the Secretary for each of 5 
fiscal years. The conference agreement follows the Senate 
amendment on the explicit statement that no person is entitled 
to any assistance under Title IV-A of the Social Security Act.
      The conference agreement follows the House bill with 
respect to the amount of Grant Increases to Reward States that 
Reduce Out-of-Wedlock births (namely grant increases of 5 
percent and 10 percent, based on reductions in illegitimacy). 
The conference agreement follows the Senate amendment with 
respect to the determination of how States may qualify for 
grant increases for this purpose, including the prohibition on 
a State's receiving a grant increase for this purpose if the 
State's rate of induced pregnancy terminations is higher than 
in 1995.
      For purposes of this part, the Secretary is to disregard 
changes in rates of illegitimacy due to a change in State 
methods of reporting such data.
      The conference agreement generally follows the Senate 
amendment with regard to the Adjustment for Population Growth, 
with the modification that $800 million is authorized and 
appropriated for this purpose.
      The conference agreement follows the House bill regarding 
the adjustment for Emergency Assistance Plan Amendments (no 
provision).
      The conference agreement follows the House bill regarding 
the Job Placement Performance Bonus (no provision).
      The conference agreement follows the Senate amendment 
regarding the Performance Bonus, except that States that are 
most successful or most improved in moving families off welfare 
into work may reduce their 75 percent State maintenance of 
effort requirement by up to 8 percentage points.
      The conference agreement follows the House bill regarding 
the High Performance Bonus (no provision).
      The conference agreement generally follows the Senate 
amendment regarding the treatment of outlying areas, with 
increases to the aggregate ceilings on cash benefits for the 
specified territories.
      The conference agreement on H.R. 4 would:
            Increase the limits on Federal grants to the 
        territories for adult assistance and benefits and 
        services for families with children;
            Replace AFDC, EA, and JOBS with the Temporary 
        Assistance for Needy Families (TANF) block grant;
            Replace the child welfare services and family 
        preservation program with a child protection block 
        grant;
            Continue the existing programs of adult assistance; 
        and
            Provide explicit authority for the territories to 
        transfer funds among adult assistance, temporary 
        assistance for needy families with children, and child 
        protection programs.

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

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

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

                            (2) Definitions

Present law

      AFDC law defines ``State'' to include the 50 States, the 
District of Columbia, Puerto Rico, Virgin Islands, Guam, and 
American Samoa. However, special funding ceilings apply to 
them.

House bill

      The ``State family assistance grant'' is determined by 
the greater of (1) the average of Federal obligations to the 
State for selected programs (AFDC benefits and administration, 
Emergency Assistance, and JOBS) authorized by Title IV-A for FY 
1992-1994; or (2) the amount of Federal obligations for FY 
1994, multiplied by the total amount of State outlays for these 
programs for FY 1994, divided by the amount of Federal 
obligations for FY 1994. The selected programs are all those 
authorized under Title IV-A of current law except the day care 
programs (the at-risk program, AFDC/JOBS day care, and 
transitional day care). If the sum of all the State shares, as 
calculated here, exceeds (or falls short of) the national block 
grant amount below ((2)(b)), each State's share will be reduced 
(or increased) proportionately.
      In each fiscal year between 1996 and 2000, the ``National 
Block Grant Amount'' available to all eligible States will be 
equal to $15,390,296,000.
      The State's ``Illegitimacy Ratio'' for a fiscal year is 
the sum of the number of out-of-wedlock births that occurred in 
the State during the most recent fiscal year for which the data 
are available and the amount, if any, by which the number of 
abortions performed in the State during the most recent year 
for which information is available exceeds the number of 
abortions performed in the State during the fiscal year that 
immediately precedes such most recent fiscal year, divided by 
the number of births that occurred in the State for the most 
recent fiscal year.
      The term ``State'' includes the 50 States, the District 
of Columbia, Puerto Rico, Virgin Islands Guam, and American 
Samoa.

Senate amendment

      The State share of the block grant for each year equals 
the total Federal payments to the State under Title IV-A in 
Fiscal Year 1994 (for AFDC benefits and administration, 
Emergency Assistance, JOBS, and three child care programs--
AFDC/JOBS child care, ``transitional'' child care, and ``at-
risk child care''); reduced by any amount set aside for tribal 
family assistance programs in the State and (FY 2000 only) by 5 
percent (for the performance bonus fund) and increased by the 
amount, if any, of increased FY95 Emergency Assistance spending 
attributable to FY94 amendments.
      The block grant amount is $16,803,769,000.
      (Note: A major reason for the difference between the 
House and Senate block grant amount is that the House removed 
mandatory child care funds currently authorized under Title IV-
A and placed most of the money in a separate discretionary 
child care block grant, while the Senate kept IV-A child care 
funds in the cash block grant but earmarked them for child 
care.)
      The term ``illegitimacy ratio'' means the number of out-
of-wedlock births that occurred in the State during the most 
recent fiscal year for which the data are available, divided by 
the number of births that occurred in the State during the most 
recent fiscal year for which the data are available.
      The term ``State'' is identical to the House bill. 
However, for supplemental grants for population increases, the 
term ``State'' applies only to the 50 States.
      In general, the terms ``Indian,'' ``Indian tribe 
organization'' have the meaning given by section 4 of the 
Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450b). The Senate amendment provides that only 12 
specified regional non-profit corporations of Alaska natives 
can administer tribal family assistance grants.

Conference agreement

      The conference agreement follows the House bill and 
Senate amendment with regard to the State family assistance 
grant, except that the State share of the block grant is 
determined by the greater of (1) the average of Federal 
payments for FY 1992-94; (2) Federal payments in FY 1994; or 
(3) Federal payments in FY 1995. House conferees recede with 
regard to the proportionate reduction in State shares included 
in the House bill. For all programs except JOBS, Federal 
payments represent the Federal share of a State's total 
expenditures on these programs, as reported by the States. For 
JOBS, the payment represents the grant amount. Table 2 
summarizes the annual State allocation under the basic TANF 
Block Grant.


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

                        [In thousands of dollars]

State:                                                            Amount
     Alabama............................................          93,006
     Alaska.............................................          63,609
     Arizona............................................         222,420
     Arkansas...........................................          56,733
     California.........................................       3,733,818
     Colorado...........................................         135,553
     Connecticut........................................         258,392
     Delaware...........................................          32,291
     District of Columbia...............................          92,610
     Florida............................................         558,436
     Georgia............................................         330,742
     Hawaii.............................................          98,905
     Idaho..............................................          31,851
     Illinois...........................................         585,057
     Indiana............................................         206,799
     Iowa...............................................         130,088
     Kansas.............................................         101,931
     Kentucky...........................................         181,288
     Louisiana..........................................         163,972
     Maine..............................................          78,121
     Maryland...........................................         229,098
     Massachusetts......................................         451,843
     Michigan...........................................         775,353
     Minnesota..........................................         265,203
     Mississippi........................................          86,768
     Missouri...........................................         211,588
     Montana............................................          45,534
     Nebraska...........................................          58,029
     Nevada.............................................          43,977
     New Hampshire......................................          38,263
     New Jersey.........................................         394,955
     New Mexico.........................................         126,103
     New York...........................................       2,359,975
     North Carolina.....................................         302,240
     North Dakota.......................................          24,684
     Ohio...............................................         717,863
     Oklahoma...........................................         148,014
     Oregon.............................................         167,925
     Pennsylvania.......................................         719,499
     Rhode Island.......................................          95,022
     South Carolina.....................................          99,968
     South Dakota.......................................          21,352
     Tennessee..........................................         183,236
     Texas..............................................         486,257
     Utah...............................................          74,952
     Vermont............................................          47,353
     Virginia...........................................         158,285
     Washington.........................................         399,637
     West Virginia......................................         110,176
     Wisconsin..........................................         318,188
     Wyoming............................................          21,781
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................      16,338,743

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

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

                            (3) Use of grant

Present law

      AFDE and JOBS funds are to be used in conformity with 
State plans. A State may replace a caretaker relative with a 
protective payee or a guardian or legal representative.
      Current law sets aside some JOBS funds (deducting them 
from State allocations) for Indian tribes and Native Alaska 
organizations. See (4)(C)(1)(f).
      Regulations permit States to receive Federal 
reimbursement funds (50 percent administrative cost-sharing 
rate) for operation of electronic benefit systems. To do so, 
States must receive advance approval from DHHS and must comply 
with automatic data processing rule.

House bill

      States may use funds in any manner reasonably calculated 
to accomplish the purpose of this part (except for prohibitions 
listed below under (4)(F)). No part of the grant may be used to 
provide medical services. Explicitly allowed are noncash aid to 
mothers under the age of 18 assistance to low-income households 
for heating and cooling costs.
      The House bill has no set-aside provision.
      In the case of families that have lived in a State for 
less than 12 months, States are authorized to provide them with 
the benefit level of the State from which they moved.
      States may transfer up to 30 percent of the funds paid to 
the State under this section to any or all of the following: 
(1) child protection block grant; (2) social services block 
grant under the XX of the Social Security Act; (3) any food and 
nutrition block grant passed during the 104th Congress; and (4) 
the child care and development block grant program. Rules of 
the recipient program will apply to the transferred funds.
      States are allowed to reserve some block grant funds 
received for any fiscal year for the purpose of providing 
emergency assistance under the block grant program.
      States are encouraged to implement an electronic benefit 
transfer system for providing assistance under the State 
program funded under this part, and may use the grant for such 
purpose. In general, exempt State and local government 
electronic transfers of need-based benefits from certain rules 
issued by the Federal Reserve Board regarding electronic fund 
transfers, (i.e., Regulation E, which limits liability of 
cardholders).

Senate amendment

      States may use funds in any manner reasonably calculated 
to accomplish the purpose of this part, provided that 
administrative costs not exceed 15 percent of the State's grant 
(except from prohibitions listed below, under section F).
      The following rules apply to set-asides under the Senate 
amendment: (1) maintains current law set-asides for JOBS 
funding for Indian tribes and Alaska native organizations; (2) 
from the national cash block grant, the State Amendment 
earmarks for child care annually the amount paid with Federal 
funds in FY1994 for AFDC-related child care (about $980 
million); and (3) for the Performance fund (FY2000 only), each 
State's share of the family assistance block grant shall be 
reduced by 5 percent. The set-aside funds are to finance FY2000 
performance bonuses.
      With regard to the treatment of ``interstate 
immigrants'', the Senate amendment includes a similar 
provision, with slight differences in wording, in relation to 
the House bill.
      States may transfer up to 30 percent of block grant funds 
to the child care and development block grant program.
      A State may reserve amounts paid to the State for any 
fiscal year for the purpose of providing assistance under this 
part. Reserve funds can be used in any fiscal year. Any funds 
set aside for child care, if reserved, must be used only for 
child care.
      States may use a portion of the temporary assistance 
block grant to make payments (or provide job placement 
vouchers) to State-approved agencies that provide employment 
services to recipients of cash aid.

Conference agreement

      The conference agreement follows the House bill and 
Senate amendment with respect to the general uses of the grant, 
clarifying that the grant may be used in any manner reasonably 
calculated (including activities now authorized under titles 
IV-A and IV-F of the Social Security Act and providing low-
income households with assistance in meeting home heating and 
cooling costs) to increase the flexibility of States in 
operating a program designed to:
            (1) provide assistance to needy families so that 
        children may be cared for in their own homes or in the 
        homes of relatives;
            (2) end the dependence of needy parents on 
        government benefits by promoting job preparation, work, 
        and marriage;
            (3) prevent and reduce the incidence of out-of-
        wedlock pregnancies and establish annual numerical 
        goals for preventing and reducing the incidence of 
        these pregnancies; and
            (4) encourage the formation and maintenance of two-
        parent families.
      The conference agreement follows the Senate amendment's 
15 percent cap on administrative spending. However, spending 
for information technology and computerization needed to 
implement the tracking and monitoring required by this title 
are excluded from this limitation.
      The conference agreement follows the House bill with 
regard to set-asides for child care and the performance fund, 
and follows the Senate amendment with regard to the set-aside 
for Indians (no provision).
      With regard to the treatment of ``interstate 
immigrants'', the conferees agree to follow the House bill and 
Senate amendment.
      The conference agreement follows the House bill with 
regard to transfer of funds.
      The conference agreement follows the Senate amendment on 
reservation of funds.
      The conference agreement follows the House bill with 
regard to the Electronic Benefit Transfer System.
      The conference agreement follows the Senate amendment on 
the authority of States to use funds to operate an employment 
placement program.
      It is the intent of Congress that, after the date of 
enactment, neither the Federal nor State governments can be 
made liable for retroactive payments required to be made by 
States by court order to AFDC recipients under the current AFDC 
program.

                (4) Cost-sharing (maintenance of effort)

Present law

      Current law requires States to share program costs. For 
administrative costs the rate is 50 percent. For other costs it 
varies among States (and, within limits, is inversely related 
to the square of State per capita income, compared to the 
square of National per capita income). For AFDC benefits and 
AFDC-related child care, the Medicaid Federal matching rate is 
used; it now ranges among States from a floor of 50 percent to 
79 percent. For JOBS activities, the law provides an 
``enhanced'' rate, ranging from 60 percent to 79 percent.

House bill

      No cost-sharing required.

Senate amendment

      The Senate amendment requires State cost-sharing for the 
temporary assistance block grant for 4 years, starting in 
FY1997. To receive the full grant for one of these years, 
States must spend in the preceding year from their own funds 
under their temporary assistance program at least 80 percent of 
the amount they spent in FY1994 on the replaced programs--AFDC 
benefits, AFDC-related child care, Emergency Assistance, and 
JOBS. Grants are to be reduced one dollar for each dollar by 
which a State falls short of this requirement. Cost-sharing 
also is required for ``contingency'' funds and additional child 
care funds. To qualify for contingency funds, States must spend 
at least 100 percent of FY1994 expenditures on programs 
replaced by the cash block grant. For additional child care 
funds they must spend at least 100 percent of FY1994 
expenditures on AFDC-related child care.

Conference agreement

      The conference agreement follows the Senate amendment, 
with the modification that States must spend at least 75 
percent of the amount they spent in FY1994.

                         (5) Timing of payments

Present law

      The Secretary pays AFDC funds to the State on a quarterly 
basis.

House bill

      The Secretary shall make each grant payable to a State in 
quarterly installments.

Senate amendment

      Similar to the House provision.

Conference agreement

      The conference agreement follows the House bill.

                             (6) Penalties

Present law

      If the Secretary finds that a State has failed to comply 
with the State plan, she is to withhold all payments from the 
State (or limit payments to categories not affected by 
noncompliance).
      There is no specific penalty for failure to submit a 
report, although the general noncompliance penalty could apply.
      The Secretary is to reduce payments by 1 percent for 
failure to offer an provide family planning services to all 
appropriate AFDC recipients who request them.
      Except as expressed provided, the Secretary may not 
regulate the conduct of the States or enforce any provisions of 
this paragraph.
      The penalty against a State for noncompliance with child 
support enforcement rules--loss of AFDC matching funds--shall 
be suspended if a State submits and implements a corrective 
action plan.

House bill

      The Secretary shall reduce the funds paid to a State by 
any amount found by audit to be in violation of this part, but 
the Secretary cannot reduce any quarterly payment by more than 
25 percent. If necessary, funds will be withheld from the 
State's payments during the following year.
      The Secretary must reduce by 3 percent the amount 
otherwise payable to a State for a fiscal year if the State has 
not submitted the annual report regarding the use of block 
grant funds within 6 months after the end of the immediately 
preceding fiscal year. The penalty is rescinded if the report 
has been submitted within 12 months.
      The Secretary must reduce by 1 percent the amount of a 
State's annual grant if the State fails to participate in the 
IEVS designed to reduce welfare fraud.
      With regard to failure to offer and provide family 
services, there is no penalty specified, but States are allowed 
to use block grant funds to pay for family planning services.
      Except as expressly provided, the Secretary may not 
regulate the conduct of States under Part A of Title IV or 
enforce any provision of it.
      There is no provision in the House bill regarding overdue 
repayments to the Federal rainy day loan fund, which is 
described below.

Senate amendment

      For all penalties, the Secretary may not impose any of 
the penalties if she finds the State had reasonable cause for 
its failure to comply with the relevant provision. The State 
must spend on the block grant program a sum of its own funds to 
equal the amount of withheld Federal dollars. No quarterly 
payment may be reduced more than 25 percent. If necessary, 
penalty funds will be withheld from the State's payment for the 
next year. Except for the first item, all penalties take effect 
October 1, 1996.
      The Secretary shall reduce funds paid to a State by any 
amount found by audit to be in violation of this part. If the 
State does not prove to the Secretary that the unlawful 
expenditure was not made intentionally, the Secretary shall 
impose an additional penalty of 5 percent of the basic block 
grant.
      If a State fails to submit the annual report required by 
sec. 409 within 6 months after the end of a fiscal year, the 
Secretary shall reduce by 5 percent the amount otherwise 
payable to the State for the next year. However, the penalty 
shall be rescinded if the State submits the report before the 
end of the year in which the report was due.
      The Secretary shall reduce by not more than 5 percent the 
annual grant of a State, if the State fails to participate in 
the IEVS designed to reduce welfare fraud.
      If the Secretary determines that a State does not enforce 
penalties requested by the Title IV-D child support enforcement 
agency against receipts of cash aid who fail to cooperate in 
establishing paternity in accordance with Part D, the Secretary 
shall reduce the cash assistance block grant by not more than 5 
percent.
      Except as expressly provided, neither the DHHS Secretary 
nor the Treasury Secretary may regulate the conduct of States 
under Part A of Title IV nor enforce any provision of it.
      If a State fails to pay any amount borrowed from the 
Federal Loan Fund for State Welfare Programs within the 
maturity period, plus any interest owed, the Secretary shall 
reduce the State's cash assistance block grant for the 
immediately succeeding fiscal year quarter by the outstanding 
loan amount, plus the interest owed on it. The Secretary may 
not forgive these overdue debts.
      The Senate amendment requires the Federal government, 
before assessing a penalty against a State under any program 
established or modified by the act, to notify the State about 
the violation and allow it to enter into a corrective 
compliance plan within 60 days after notification. The Federal 
government shall have 60 days to accept or reject the plan; if 
it accepts the plan, and if the State corrects the violation, 
no penalty shall be assessed. If the State fails to make a 
timely correction, some or all of the penalty shall be 
assessed. An alternate corrective action section requires a 
State to correct the violation pursuant to its plan within 90 
days after the Federal government accepts the plan.

Conference agreement

      The conference agreement follows the Senate amendment on 
the general conditions for setting penalties; i.e., penalties 
may not be imposed if the Secretary finds the State has 
reasonable cause for its failure to comply; the State must 
spend on the block grant program a sum of its own funds to 
equal the amount of withheld Federal dollars; no quarterly 
payment may be reduced more than 25 percent; if necessary, 
penalty funds will be withheld from the State's payment for the 
next year; and that, except for the first item, all penalties 
take effect October 1, 1996.
      The conference agreement follows the Senate amendment on 
penalties for use of the grant for unauthorized purposes. The 
conferees also agreed that if a State could not demonstrate to 
the Secretary that the State did not intend to use the amount 
in violation of this part, an additional penalty of 5 percent 
is imposed on the grant amount. The conference agreement 
follows the House bill and the Senate amendment regarding 
penalties for State failure to submit the required report, 
except that the penalty is to be a reduction of 4 percent in 
the block grant. The conference agreement follows the House 
bill and the Senate amendment regarding penalties for State 
failure to participate in the Income and Eligibility 
Verification System, except that the penalty is to be 2 
percent.
      The conference agreement follows the Senate amendment on 
penalties for State failure to cooperate on child support 
enforcement. The conference agreement follows the House bill 
and the Senate amendment regarding penalties for failure to 
offer and provide family planning services (no provision). The 
conference agreement includes penalties for failure to satisfy 
minimum work participation rates. The conference agreement 
follows the Senate amendment regarding the limitation of 
Federal authority.
      The conference agreement follows the Senate amendment 
regarding the penalty for failure to timely repay the Federal 
loan fund for State welfare programs. The conference agreement 
follows the Senate amendment regarding the Corrective Action 
Plan.

                    (7) Federal rainy day loan fund

Present law

      No provision. Instead, current law provides unlimited 
matching funds.

House bill

      The Federal government will establish a fund of $1 
billion modeled on the Federal Unemployment Account, which is 
part of the Unemployment Compensation system. The fund is to be 
administered by the Secretary of Health and Human Services, who 
must deposit into the fund any principal or interest payments 
received with respect to a loan made under this provision. 
Funds are to remain available without fiscal year limitation 
for the purpose of making loans and receiving payments of 
principal and interest. States must repay their loans, with 
interest, within 3 years. The rate of interest will equal the 
current average market yield on outstanding marketable 
obligations of the United States with remaining periods to 
maturity comparable to the period to maturity of the loan. At 
any given time, no State can borrow more from the fund than 
half its annual share of block grant funds or $100 million, 
whichever is less. States may borrow from the fund if their 
total unemployment rate for any given 3-month period is more 
than 6.5 percent and is at least 110 percent of the same 
measure in the corresponding quarter of the previous 2 years.

Senate amendment

      Establishes a $1.7 billion revolving loan fund called the 
``Federal Loan Fund for State Welfare Programs.'' The Secretary 
shall make loans, and the rate of interest will equal the 
current average market yield on outstanding marketable 
obligations of the United States with remaining periods to 
maturity comparable to the period to maturity of the loan. 
Ineligible are States that have been penalized for misspending 
block grant funds as determined by an audit. Loans are to 
mature in 3 years, at the latest, and the maximum amount loaned 
to a State cannot exceed 10 percent of its basic block grant, 
and States face penalties for failing to make timely payments 
on their loan.

Conference agreement

      The conference agreement follows the Senate amendment.

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

Present law

      No provision. Current law provides unlimited matching 
funds.

House bill

      No provision.

Senate amendment

      Establishes a ``Contingency Fund for State Welfare 
Programs'' and appropriates funds of up to $1 billion for a 
total period of 7 years (FY 1996-2002). The fund would provide 
matching grants (at the Medicaid matching rate) to States that 
have unemployment rates above specified levels, provided they 
first spend from their own funds a yearly sum a least equal to 
their FY 1994 expenditures on AFDC, AFDC-related child care, 
Emergency Assistance, and JOBS. The maximum contingency grant 
could not exceed 20 percent of a State's temporary assistance 
block grant. Eligible would be States that met the maintenance 
of effort requirement and had an average rate of total 
unemployment, seasonally adjusted, of at least 6.5 percent 
during the most recent 3 months with published data and a rate 
at least 10 percent above that of either or both of the 
corresponding 3-month periods in the 2-preceding calendar 
years.

Conference agreement

      The conference agreement follows the Senate amendment.

                     (9) Additional day care funds

Present law

      No provision. Current law provides unlimited matching 
funds for AFDC/JOBS child care and transition child care (but a 
capped amount for ``at-risk'' care).

House bill

      No provision.

Senate amendment

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

Conference agreement

      See discussion in Title VIII of the conference agreement 
under Child Care and Development Block Grant. In general, 
conferees agree on a child care block grant that provides 
States with a total of $18 billion in funds for child care, $11 
billion of which is entitlement funding.

                     D. Contracts/Client Agreements

                               (1) Terms

Present law

      After assessing the needs and skills of recipients and 
developing an employability plan, States may require JOBS 
participants to negotiate and enter into an agreement that 
specifies their obligations.

House law

      No provision.

Senate amendment

      States must assess, through a case manager, the skills of 
each parent for use in developing and negotiating a personal 
responsibility contract (PRC). Each recipient family must enter 
into a contract developed by the State or into a limited 
benefit plan. The PRC means a binding contract outlining steps 
to be taken by the family and State to get the family ``off of 
welfare'' and specifying a negotiated time-limited period of 
eligibility for cash aid. An alternate provision requires the 
case manager to consult with the parent applicant (client) in 
developing a PRC, lists client activities that the PRC might 
require, specifies that clients must agree to accept a bona 
fide offer of an unsubsidized full-time job unless they have 
good cause not to, but does not require a time limit in the PRC 
nor make provision for a limited benefit plan. A State may 
exempt a battered person from entering into a PRC if it terms 
would endanger his/her well-being.

Conference agreement

      The conference agreement follows the House bill (no 
provision).

                             (2) Penalties

Present law

      No provision.

House bill

      No provision.

Senate amendment

      The PRC is to provide that if a family fails to comply 
with its terms, the family automatically will enter into a 
limited benefit plan (with a reduced benefit and later 
termination of aid, in accordance with a schedule determined by 
the State). If the State agency violates the PRC, the contract 
shall be invalid. The State is to establish a procedure, 
including the opportunity for hearing, to resolve disputes 
concerning participation in the PRC. The alternate PRC language 
provides these penalties: for the first act of noncompliance 
with the PRC, 33 percent reduction in the family's benefit for 
one month; for the second act, 66 percent reduction for 3 
months; for third and subsequent acts of noncompliance, loss of 
eligibility for 6 months. Job refusal without good cause is 
treated as a third violation. However, in no case shall the 
penalty period extend beyond the duration of noncompliance.

Conference agreement

      The conference agreement follows the House bill (no 
provision).

                     E. Mandatory Work Requirements

                          (1) Work activities

Present law

      JOBS programs must include specified educational 
activities (high school or equivalent education, basic and 
remedial education, and education for those with limited 
English proficiency); jobs skills training, job readiness 
activities, and job development and placement. In addition, 
States must offer at least two of these four items: group and 
individual job search; on-the-job training; work 
supplementation or community work experience program (CWEP) (or 
another work experience program approved by the DHHS 
Secretary). The State also may offer postsecondary education in 
``appropriate'' cases.

House bill

      ``Work activities'' are defined as unsubsidized 
employment, subsidized employment, subsidized public sector 
employment or work experience, on-the-job training, job search, 
education and training directly related to employment, and jobs 
skills training directly related to employment. Satisfactory 
attendance at secondary school, at State option, may be 
included as a work activity for a parent under 20 who has not 
completed high school.

Senate amendment

      Establishes this list of work activities: unsubsidized 
employment, subsidized employment, on-the-job training, 
community service programs, job search (first 4 weeks only) and 
vocational educational training (12 months maximum). For work 
participation requirements, the proportion of persons counted 
as engaged in ``work'' through participation in vocational 
educational training cannot exceed 25 percent. For each tribe 
receiving a family assistance block grant, the Secretary, with 
participation of Indians tribes, shall establish minimum work 
participation rules, appropriate time limits for benefits, and 
penalties, similar to the general family assistance rules but 
consistent with the economic conditions and resources of the 
tribe.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment, with the modification that, for the work 
participation requirements, the proportion of persons counted 
as engaged in work through participation in vocational 
education cannot exceed 20 percent.

              (2) Participation requirements: all families

Present law

    The following minimum percentage of non-exempt AFDC 
families must participate in JOBS:


Minimum Percentage

Fiscal year:
    1995 (last year)....................................              20
    1996 and thereafter (no requirement)................               0

      Exempt from JOBS are parents whose youngest child is 
under 3 (1, at State option). Other exemptions include persons 
who are ill, incapacitated or needed at home because of illness 
or incapacity of another person. Also exempt are parents of a 
child under 6, unless the State guarantees child care and 
requires no more than 20 hours weekly of JOBS activity.
      Participation rates are calculated for each month. A 
State's rate, expressed as a percentage, equals the number of 
actual JOBS participants divided by the number of AFDC 
recipients required to participate (non-exempt from JOBS).
      In calculating a State's overall JOBS participation rate, 
a standard of 20 hours per week is used. The welfare agency is 
to count as participants the largest number of persons whose 
combined and averaged hours in JOBS activities during the month 
equal 20 per week.
      The law requires States to guarantee child care when 
needed for JOBS participants and for other AFDC parents in 
approved education and training activities. Regulations require 
States to guarantee care for children under age 13 (older if 
incapable of self-care) to the extent that it is needed to 
permit the parent to work, train, or attend school. States must 
continue child care benefits for 1 year to ex-AFDC working 
families, but must charge them an income-related fee.

House bill

      The following minimum percentages of all families 
receiving cash assistance must engage in work activities:


Minimum Percentage

Fiscal year:
    1996................................................              10
    1997................................................              15
    1998................................................              20
    1999................................................              25
    2000................................................              27
    2001................................................              29
    2002................................................              40
    2003 or thereafter..................................              50

      If States achieve net caseload reductions, they receive 
credit for the number of families by which the caseload is 
reduced for purposes of meeting the overall family 
participation requirements. The minimum participation rate 
shall be reduced by the percentage by which the number of 
recipient families during the fiscal year falls below the 
number of AFDC families in fiscal year 1995, except to the 
extent that the Secretary determines that the caseload 
reduction was required by terms of Federal law.
      The fiscal year participation rates are the average of 
the rates for each month during the year. The monthly 
participation rates are measured by the number of recipient 
families in which an individual is engaged in work activities 
for the month, divided by the total number of recipient 
families that include a person who is 18 or older.
      To be counted as engaged in work activities for a month, 
the recipient must be making progress in qualified activities 
for at least the minimum average number of hours per week shown 
in the table below. Of these hours, at least 20 hours must be 
spent in unsubsidized employment, subsidized private sector 
employment, subsidized public sector employment, work 
experience, or on-the-job training. During the first 4 weeks of 
required work activity, hourly credit also is given for job 
search and job readiness assistance.


Minimum average hours weekly

Fiscal year:
    1996..........................................................    20
    1997..........................................................    20
    1998..........................................................    20
    1999..........................................................    25
    2000..........................................................    30
    2001..........................................................    30
    2002..........................................................    35
    2003 or thereafter............................................    35

      Although a person must work at least 20 hours weekly in 
order for any hours of their training or education to count 
toward required participation, the bill does not prohibit a 
State from offering cash recipients an opportunity to 
participate in education or training before requiring them to 
work. In this case, however, participation does not count 
toward fulfillment of the State mandatory participation rate. 
Note: although the above table is in a paragraph entitled 
``requirements applicable to all families receiving 
assistance,'' another paragraph establishes a higher hourly 
requirement (35 hours weekly) in all years for 2-parent 
families. See below.

Senate amendment

      The following minimum percentages of all families 
receiving cash assistance (except those with a child under 1, 
if exempted by the State) must participate in work activities:)


Minimum percentage

Fiscal year:
    1996..........................................................    25
    1997..........................................................    30
    1998..........................................................    35
    1999..........................................................    40
    2000 or thereafter............................................    50

      The Secretary is directed to prescribe regulations for 
reducing the minimum participation rate required for a State if 
its caseload under the new program is smaller than in the final 
year of AFDC, but not if the decrease was required by Federal 
law or results from changes in eligibility criteria adopted by 
the State. With these qualifications, the regulations are to 
reduce the participation rate by the number of percentage 
points, if any, by which the caseload in a fiscal year is 
smaller than in FY1995.
      States may exempt a parent or caretaker relative of a 
child under one year old and may exclude them from the 
participation rate calculation. States may exempt a battered 
person if their well-being would be endangered by a work 
requirement.
      As in the House bill, the fiscal year participation rate 
is the average of the rates for each month of the year. 
However, overall monthly rates are measured by adding (1) the 
number of recipient families with an adult engaged in work for 
the month, (2) the number subject to a work refusal penalty in 
the month (if not subject to the penalty for more than 3 months 
out of the preceding 12), and (3) the number who worked their 
way off the program in the previous 6 months and that include 
an adult who is working for the month, and then dividing this 
total by the number of families enrolled in the program during 
the month that include an adult recipient. States have the 
option to include in the calculation of monthly participation 
rates families who receive assistance under a tribal family 
assistance plan if the Indian or Alaska Native is participating 
in work under standards comparable to those of the State for 
being engaged in work.
      To be counted as engaged in work for a month, an adult 
must be participating in work for at least the minimum average 
number of hours per week shown in the table below (of which not 
fewer than 20 hours per week are attributable to a work 
activity). See list of work activities above.
      Exception to the table: In FY1999 and thereafter, when 
required weekly hours rise above 20, a State may count a single 
parent with a child under age 6 as engaged in work for a month 
if the parent works an average of 20 hours weekly. Also, 
community service participants may be treated as engaged in 
work if they provide child care services for another 
participant for the number of hours deemed appropriate by the 
State.


Minimum average hours weekly

Fiscal year:
    1996..........................................................    20
    1997..........................................................    20
    1998..........................................................    20
    1999..........................................................    25
    2000..........................................................    30
    2001..........................................................    30
    2002..........................................................    35
    2003 or thereafter............................................    35

Note: Although the above table is in a paragraph entitled ``all 
families,'' another paragraph establishes a higher hourly requirement 
(35 hours weekly) in all years for 2-parent families. See below.

      The Senate amendment states that nothing in sec. 421 
(amounts for child care) shall be construed to provide an 
entitlement to child care services to any child.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment as follows:
      The following minimum percentages of all families 
receiving cash assistance (except those with a child under 1, 
if exempted by the State) must participate in work activities:


Minimum percentage

Fiscal year:
    1996..........................................................    15
    1997..........................................................    20
    1998..........................................................    25
    1999..........................................................    30
    2000..........................................................    35
    2001..........................................................    40
    2002 or thereafter............................................    50

      The conference agreement generally follows the Senate 
amendment regarding reduction in the participation rate, 
including the requirement that regulations shall not take into 
account families diverted from the State program as a result of 
differences in eligibility criteria under the State program (in 
comparison with the AFDC program that operated prior to the 
date of enactment). The conferees agree to modify the Senate 
provision by requiring that regulations shall place the burden 
on the Secretary to prove that families were diverted as a 
direct result of differences in eligibility criteria.
      The conference agreement follows the House bill regarding 
exemptions from the work requirement for battered individuals, 
and follows the Senate amendment regarding the State option to 
exempt families with a child under 1.
      The conference agreement follows the House bill and the 
Senate amendment regarding the calculation of the fiscal year 
rate. The conference agreement generally follows the Senate 
amendment regarding the calculation of monthly rates, except 
that the Senate recedes on counting people who have worked 
their way off the rolls in the previous 6 months and including 
sanctioned individuals in the numerator; conferees agree that 
sanctioned persons are to be subtracted from the denominator in 
determining monthly rates.
      The conference agreement follows the House bill with 
regard to the number counted as engaged in work, except that 
the phrase ``making progress in qualified activities'' is 
replaced with ``participating in qualified activities.''
      The conference agreement follows the House bill and the 
Senate amendment regarding the minimum average hours of weekly 
work required. Conferees did not agree to the Senate provision 
that States have the option of allowing single parents with 
children under 6 to work only 20 hours per week and still count 
toward the participation standard.

          (3) Participation requirements: Two-parent families

Present law

      The following minimum percentages of two-parent families 
receiving cash assistance must participate in specified work 
activities:


Minimum percentage

Fiscal year:
    1995..........................................................    50
    1996..........................................................    60
    1997..........................................................    75
    1998 (last year)..............................................    75
    1999 and thereafter (no requirement)..........................     0

      Participation rates for a month equal the number of 
parents who participate divided by the number of principal 
earners in AFDC-UP families (but excluding families who 
received aid for 2 months or less, if one parent engaged in 
intensive job search).
      One parent in the 2-parent family must participate at 
least 16 hours weekly in on-the-job training, work 
supplementation, community work experience program, or a State-
designated work program.

House bill

      The following minimum percentages of two-parent families 
receiving cash assistance must engage in work activities:


Minimum percentage

Fiscal year:
    1996..........................................................    50
    1997..........................................................    50
    1998 (last year)..............................................    90
    1999 and thereafter...........................................    90

      Participation rates for a month are measured by the 
number of two-parent recipient families in which at least one 
adult is engaged in work activities for the month, divided by 
the total number of two-parent families that received cash aid 
during the month.
      An adult in a 2-parent family is engaged in work 
activities when making progress in them for 35 hours per week, 
at least 30 of which are in unsubsidized employment, subsidized 
private sector employment, subsidized public sector employment, 
work experience, or on-the-job training (or job search and job 
readiness assistance for the first 4 weeks only).

Senate amendment

      The following minimum percentages of two-parent families 
receiving cash assistance must participate in work:


Minimum percentage

Fiscal year:
    1996..........................................................    60
    1997..........................................................    75
    1998..........................................................    75
    1999 and thereafter...........................................    90

      Participation rates for 2-parent families are measured 
(like those for all families) by adding (1) the number of 2-
parent recipient families with an adult engaged in work for the 
month; (2) the number of 2-parent families subject to a work 
refusal penalty in the month (if not subject to the penalty for 
more than 3 months out of the preceding 12); and (3) the number 
of 2-parent families who worked their way off the program in 
the previous 6 months and that include an adult who is working 
for the month, and then dividing this total by the number of 2-
parent families enrolled in the program during the month that 
include an adult recipient.
      An adult in a 2-parent family must participate in work 
for at least 35 hours per week during the month, and at least 
30 hours weekly must be attributable to one or more of the 6 
work activities listed above in ``4.E. Mandatory Work 
Requirements.''

Conference agreement

      The conference agreement follows the House bill and 
Senate amendment so that the following minimum percentages of 
two-parent families receiving cash assistance must participate 
in specified work activities:


Minimum percentage

Fiscal year:
    1996..........................................................    50
    1997..........................................................    75
    1998..........................................................    75
    1999 and thereafter...........................................    90

      With regard to participation rates for a month, the 
conference agreement for 2-parent families matches the 
agreement for all families described above, so that the rates 
equal the number of two-parent recipient families in which at 
least one adult is engaged in work activities for the month, 
divided by the total number of two-parent families that 
received cash assistance minus sanctioned persons.
      The conference agreement follows the House bill and the 
Senate amendment regarding creditable activities, except the 
House and Senate compromise so that the percentage of the 
caseload able to be counted as engaged in a work activity 
through vocational education training cannot exceed 20 percent.

                             (4) Penalties

Present law

      For failure to meet JOBS requirements without good cause, 
AFDC benefits are denied to the offending parent and payments 
for the children are made to a third party.
      In a 2-parent family, failure of 1 parent to meet JOBS 
requirements without good cause results in denial of benefits 
for both parents (unless the other parent participates) and 
third-party payment on behalf of the children. Repeated 
failures to comply bring potentially longer penalty periods.
      If a State fails to achieve the two required 
participation rates (overall and for 2-parent families), the 
Federal reimbursement rate for its JOBS spending (which ranges 
among States from 60 percent to 79 percent for most JOBS costs) 
is to be reduced to 50 percent.

House bill

      If recipients refuse to participate in required work 
activities, their cash assistance is reduced by an amount to be 
determined by individual States, subject to good cause and 
other exceptions that the State may establish.
      Recipients in two-parent families who fail to work the 
required number of hours receive the proportion of their 
monthly cash grant that equals the proportion of required work 
hours they actually worked during the month, or less at State 
option.
      No officer or employee of the Federal government may 
regulate the conduct of States under this paragraph (about 
penalties against individuals) or enforce this paragraph 
against any State.
      States not meeting the required participation rates have 
their overall grant (calculated without the bonus for reducing 
out-of-wedlock births and before other penalties listed in C(5) 
above) reduced by up to 5 percent the following fiscal year; 
penalties shall be based on the degree of noncompliance as 
determined by the Secretary.

Senate amendment

      If an adult recipient refuses to engage in required work, 
the State shall reduce the amount of assistance to the family 
pro rata (or more, at State option) with respect to the period 
of work refusal, or shall discontinue aid, subject to good 
cause and other exceptions that the State may establish. A 
State may not penalize a single parent caring for a child under 
age 6 for refusal to work if the parent has a demonstrated 
inability to obtain needed child care. Penalties against 
individuals in 2-parent families follow those against 
individuals, except that the penalties may apply against 
parents of children under 6 who refuse to work due to an 
inability to obtain child care.
      No specific provision about regulation of penalties 
against individuals. However, the amendment provides that 
neither the DHHS Secretary nor the Treasury Secretary may 
regulate the conduct of States under Title IV-A or enforce any 
of its provisions, except to the extent expressly provided in 
the Act.
      If a State fails to meet minimum work participation 
rates, the Secretary is to reduce the family assistance block 
grant as follows: For the first year of failure, by 5 percent 
(applied in the next year); for subsequent years of failure, by 
an additional 5 percent (thus, by 5.25 percent). The Secretary 
shall impose reductions on the basis of the degree of 
noncompliance.

Conference agreement

      The conference agreement follows the Senate amendment 
regarding penalties against individuals, with the modification 
that the burden of proof to demonstrate an inability to find 
needed child care rests on the parent of a child under age 6. 
The conference agreement follows the Senate amendment regarding 
penalties against individuals in two-parent families.
      The conference agreement follows the House bill on 
penalties against States not meeting work requirements, except 
the House recedes to the Senate on the corrective action 
provision.

     (5) Rule of interpretation (concerning education and training)

Present law

      JOBS programs must include specified educational 
activities and job skills training.

House bill

      This part does not prohibit a State from establishing a 
program for recipients that involves education and training.

Senate amendment

      No provision. However, the amendment qualifies vocational 
educational training as a ``work activity,'' with a 12-month 
maximum and a limit on the proportion of vocational educational 
trainees who can be counted in calculating work participation 
rates.

Conference agreement

      The House recedes (no provision). Vocational training, 
however, counts in the calculation of participation standards 
with the limitation described above.

                   (6) Research (about work programs)

Present law

      Authorizes States to make ``initial'' evaluations (in FY 
1991) of demographic characteristics of JOBS participants and 
requires the DHHS Secretary, in consultation with the Labor 
Secretary, to assist the States as needed.

House bill

      The Secretary is to conduct research on the costs and 
benefits of mandatory work requirements in the Act, and to 
evaluate promising State approaches in employing welfare 
recipients. See also ``Research, Evaluations, and National 
Studies'' below.

Senate amendment

      The Secretary is to conduct research on the costs, 
benefits, and effects of operating different State programs of 
temporary assistance to needy families, including their time 
limits. Research shall include studies of effects on employment 
rates. See also ``Research, Evaluations, and National Studies'' 
below.

Conference agreement

      The conference agreement generally follows the House bill 
and the Senate amendment.

  (7) Evaluation of innovative approaches to employing recipients of 
                               assistance

Present law

      No provision.

House bill

      The Secretary shall evaluate innovative approaches by the 
States to employ recipients of assistance.

Senate amendment

      The Secretary may assist States in developing, and shall 
evaluate innovative approaches for reducing welfare dependency 
and increasing the well-being of minor children, using random 
assignments in these evaluations ``to the maximum extent 
feasible.''

Conference agreement

      The conference agreement follows the Senate amendment.

        (8) Annual ranking of States and review of work programs

Present law

      No provision.

House bill

      The Secretary must annually rank the States in the order 
of their success in moving recipients into long-term private 
sector jobs, and review the 3 most and 3 least successful 
programs. HHS will develop these rankings based on data 
collected under the bill.

Senate amendment

      Taking account of the number of poor children in the 
State and funds provided for them, the Secretary of HHS shall 
rank the States annually in the order of their success in 
placing recipients into long-term private sector jobs, reducing 
the overall caseload, and, when a practicable method for 
calculation becomes available, diverting persons from 
application and entry into the program. The Secretary shall 
review the 3 most and 3 least successful programs that provide 
work experience, help in finding jobs, and provide other 
support services to enable families to become independent of 
the program.

Conference agreement

      The conference agreement follows the House bill.

    (9) Annual ranking of States and review of out-of-wedlock births

Present law

      No provision.

House bill

      No provision.

Senate amendment

      The Secretary is to annually rank States in the order of 
their success in reducing out-of-wedlock births and to review 
the programs of the 5 ranked highest and 5 ranked lowest in 
decreasing their absolute out-of-wedlock birth ratios (defined 
as the total number of out-of-wedlock births in families 
receiving cash assistance, divided by the total number of 
births in recipient families).

Conference agreement

      The conference agreement follows the Senate amendment.

   (10) Sense of Congress on work priority for mothers without young 
                                children

Present law

      No provision.

House bill

      It is the sense of Congress that States should give 
highest priority to requiring families with older preschool 
children or school-aged children to engage in work activities.

Senate amendment

      Adds to highest priority group ``adults in 2-parent 
families and adults in single-parent families with children 
that are older than preschool age.''

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment.

         (11) Work/school requirements for noncustodial parents

Present law

      The Secretary shall permit up to 5 States, on a voluntary 
or mandatory basis, to provide JOBS services to unemployed 
noncustodial parents unable to pay child support

House bill

      States must adopt procedures to ensure that persons owing 
past-due support to a child (or to a child and parent) 
receiving Title IV-A either work or have a plan for payment of 
that support. States must seek a court order requiring the 
parent to make payment, in accordance with a court-approved 
plan to work (unless incapacitated). It is the sense of 
Congress that States should require non-custodial, non-
supporting parents under age 18 to fulfill community work 
obligations and attend appropriate parenting or money 
management classes after school.

Senate amendment

      States must seek a court order or administrative order 
requiring a person who owes support to a child receiving Title 
IV-D services to pay the support in accordance with a court-
approved plan or to work (unless incapacitated).

Conference agreement

      The conference agreement follows the House bill.

                    (12) Delivery of work activities

Present law

      Current law permits States to carry out JOBS programs 
directly or through arrangement or under contracts with 
administrative entities under the Job Training Partnership Act 
(JTPA), with State and local educational agencies or with 
private organizations, including community-based organizations 
as defined in JTPA (Section 485(A) of Social Security Act).

House bill

      No provision.

Senate amendment

      Requires that work activities for recipients of the 
temporary family assistance program be delivered through the 
Statewide workforce development system that was earlier 
included in the Work Opportunity Act, unless a required 
activity is not available locally through the Statewide 
workforce development system. However, as passed, the amendment 
does not include the workforce development title.

Conference agreement

      The conference agreement follows the House bill (no 
provision).

                      (13) Displacement of workers

Present law

      Under JOBS law, no work assignment may displace any 
currently employer worker or position (including partial 
displacement such as a reduction in hours of non-overtime work, 
wages, or employment benefits). Nor may a JOBS participant fill 
a position vacant because of layoff or because the employer has 
reduced the workforce with the effect of creating a position to 
be subsidized.

House bill

      No provision.

Senate amendment

      Provides that no adult in a Title IV-A work activity 
shall be employed or assigned when another person is on layoff 
from the same or a substantially equivalent job, or when the 
employer has terminated the employment of a regular worker or 
otherwise caused an involuntary reduction of its workforce in 
order to fill the vacancy thus created with a subsidized 
worker. This provision does not preempt or supersede any State 
or local law providing greater protection from displacement.

Conference agreement

      The conference agreement follows the Senate amendment.

                            F. Prohibitions

                   (1) Families without a minor child

Present law

      Only families with dependent children (under age 18, or 
19 at State option if the child is still in secondary school or 
in the equivalent level of vocational or technical training) 
can participate in the program.

House bill

      Only families with minor children (under 18 years of age 
or under 19 years of age for full-time students in a secondary 
school or the equivalent) can participate in the program.

Senate amendment

      Similar to House bill, but specifies that the minor 
children must live with their parent or other caretaker 
relative.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment, with the modification that a pregnant 
individual may receive assistance under the block grant.

                       (2) Assistance for aliens

Present law

      Illegal aliens are ineligible, but legal aliens and 
others permanently residing under color of law are eligible for 
Federal means-tested benefit programs. States must operate a 
System for Verification of Eligibility (SAVE) for determination 
of immigration or citizenship status of applicants and must 
verify the immigration status of aliens with the Immigration 
and Naturalization Service.

House bill

      Block grant funds may not be used to provide cash 
benefits to a non-citizen unless the individual is a refugee 
under section 207 of the Immigration and Nationality Act who 
has been in the U.S. for under 5 years, a legal permanent 
resident over age 75 who has lived in the U.S. at least 5 
years, a veteran (or the spouse or unmarried dependent child of 
a veteran) honorably discharged from the U.S. Armed Forces, or 
a legal permanent resident unable because of disability or 
mental impairment to comply with certain naturalization 
requirements. In addition, legal permanent residents who are 
current beneficiaries retain eligibility for the first year 
after enactment.

Senate amendment

      Aliens entering after enactment are barred from receiving 
benefits for 5 years, with exceptions similar to House bill. 
Separately, States have the option to deny non-citizens 
benefits using block grant funds. Eligibility may be affected 
by changes in the sponsor-to-alien deeming provisions. These 
changes may affect their eligibility even after aliens have 
attained citizenship.

Conference agreement

      The conference agreement generally follows the Senate 
amendment so that noncitizens arriving after the date of 
enactment may not receive benefits from the block grant during 
their first 5 years in the U.S.; the conference agreement 
modifies the Senate amendment so that there is a State option 
to provide block grant assistance to noncitizens currently 
residing in the U.S., except that noncitizens receiving AFDC 
benefits on the date of enactment would continue to be eligible 
to receive block grant benefits until January 1, 1997. The 
conference agreement makes specific exceptions to these 
restrictions for refugees, asylees, veterans and active duty 
military, and aliens who have worked at least 40 calendar 
quarters as defined under title II of the Social Security Act. 
For further details see Title IV: Noncitizens.

            (3) No cash assistance for out-of-wedlock births

Present law

      No provision forbidding eligibility. Current law permits 
a State to provide AFDC to an unwed mother under 18 and her 
child only if they live with their parent or another adult 
relative or in another adult-supervised arrangement; exceptions 
are allowed (Sec. 402(A)).
      AFDC law has no provision directly comparable for funding 
second-chance homes (see below).
      AFDC law requires States, to the extent resources permit, 
to require mothers under age 20 who failed to complete high 
school to participate in an educational activity, even if they 
otherwise would be exempt because of having a child under age 3 
(or, at State option, under age 1). However, States may exempt 
some school dropout mothers under 18 years old from this 
requirement.

House bill

      Temporary Assistance for Needy Families Block Grant funds 
may not be used to provide cash benefits to a child born out-
of-wedlock to a mother under age 18 or to the mother until the 
mother reaches age 18. States must exempt mothers to whom 
children are born as a result of rape or incest. Block grant 
funds can be used to provide non-cash (e.g. voucher) assistance 
to young mothers and their children.

Senate amendment

      Explicitly permits States to decide whether or not to 
give assistance to a child born out-of-wedlock to a mother 
under 18 years old, and to the mother until she reaches 18. 
However, if a State elects to extend assistance to these 
families, the minor mother must live with a parent, legal 
guardian or other adult relative unless they have no such 
appropriate relative or the State agency determines (1) that 
they had suffered, or might suffer, harm in the relative's home 
or (2) that the requirement should be waived for the sake of 
the child.
      The State shall provide or assist a minor mother in 
finding a suitable home, a second chance home, maternity home, 
or other appropriate adult-supervised supportive living 
arrangement. The amendment authorizes to be appropriated, and 
appropriates funding for second-chance homes for unmarried 
teenage parents ($25 million yearly for FYs 1996 and 1997 and 
$20 million yearly for FYs 1998-2000).
      Further, if a State aids these unwed minor mothers, it 
must require those who have not completed high school, or its 
equivalent, to attend school unless their child is under 12 
weeks old. If the mother fails to attend high school or an 
approved alternative training program, the State must reduce 
her benefit or end it.

Conference agreement

      The conference agreement follows the Senate amendment 
regarding the state option to deny cash assistance for out-of-
wedlock births. The conference agreement follows the Senate 
amendment with regard to second chance homes, except that 
funding is authorized but not appropriated for this purpose. 
The conference agreement follows the Senate amendment regarding 
the school requirement for unwed minor mothers.

          (4) No additional assistance for additional children

Present law

      No provision.

House bill

      Block grant funds may not be used to provide additional 
cash benefits for a child born to a recipient of cash welfare 
benefits, or an individual who received cash benefits at any 
time during the 10-month period ending with the birth of the 
child. Mothers to whom children are born as a result of rape or 
incest are exempted. Block grant funds can be used to provide 
non-cash (voucher) assistance to young mothers and their 
children.

Senate amendment

      Explicitly permits States to deny aid to child born to a 
mother already receiving aid under the program or to one who 
received benefits from the program at any time during the 10 
months ending with the baby's birth.

Conference agreement

      The conference agreement represents a compromise between 
the House and Senate provisions. The compromise is that States 
must deny additional assistance to mothers already receiving 
assistance who have babies, but that States can exempt 
themselves from this requirement if they enact a law to the 
effect that the State wants to be excluded from this Federal 
requirement.

                (5) No assistance for more than 5 years

Present law

      No provision.

House bill

      Block grant funds may not be used to provide cash 
benefits for the family of an individual who, after attaining 
18 years of age, has received block grant funds for 60 months, 
whether or not successive; States are permitted to provide 
hardship exemptions from the 60-month time limit for up to 10 
percent of their caseload.

Senate amendment

      Block grant funds may not be used to provide cash 
benefits for the family of a person who has received block 
grant aid for 60 months (or less at State option), whether or 
not consecutive. States may give hardship exemptions to up to 
20 percent of their caseload. (Exempted from the 60-month time 
limit is a person who received aid as a minor child and who 
later applied as the head of her own household with a minor 
child.)

Conference agreement

      The conference agreement follows the Senate amendment, 
with the modification that no assistance may be provided beyond 
5 years and that States may exempt up to 15 percent of their 
caseload from this limit. Battered individuals may qualify for 
this exemption, but States are not required to exempt such 
individuals.

(6) Reduction or elimination of assistance for noncooperation in child 
                                support

Present law

      As a condition of eligibility, applicants or recipients 
must cooperate in establishing paternity of a child born out-
of-wedlock, in obtaining support payments, and in identifying 
any third party who may be liable to pay for medical care and 
services for the child.

House bill

      Block grant funds may not be used to provide cash 
benefits to persons who fail to cooperate with the State child 
support enforcement agency in establishing the paternity of any 
child of the individual; the child support agency defines 
cooperation.

Senate amendment

      Maintains current law. In addition, see ``Payments To 
States'' for penalty against a State that fails to enforce 
penalty requested by the IV-D against a person who does not 
cooperate in establishing paternity.

Conference agreement

      The conference agreement follows the Senate amendment 
with the modification that States must deny a parent's share of 
the family welfare benefit if the parent fails to cooperate; 
the State may deny benefits to the entire family for failure to 
cooperate.

  (7) No assistance for families not assigning support rights to the 
                                 State

Present law

      As a condition of AFDC eligibility, applicants must 
assign child support and spousal support rights to the State.

House bill

      Block grant funds may not be used to provide cash 
benefits to a family with an adult who has not assigned to the 
State rights to child support or spousal support.

Senate amendment

      Gives States the option to require applicants for 
temporary family assistance (and recipients) to assign child 
support and spousal support rights to the State.

Conference agreement

      The conference agreement follows the House bill.

    (8) Withholding portion of aid for child whose paternity is not 
                              established

Present law

      No provision.

House bill

      If, at the time a family applies for assistance, the 
paternity of a child in the family has not been established, 
the State must impose a financial penalty ($50 or 15 percent of 
the monthly benefits of a family of that size, whichever the 
State chooses) until the paternity of the child is established. 
Once paternity is established, all the money withheld as a 
penalty must be remitted to the family if it is still eligible 
for aid. Mothers to whom children are born as a result of rape 
or incest are exempted from this penalty. Provision effective 1 
year after enactment (2 years at State option).

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill with the 
modification that States may, but are not required to, impose a 
financial penalty if paternity is not established.

(9) Denial of benefits to persons who fraudulently received aid in two 
                                 States

Present law

      No provision.

House bill

      Ineligible for block grant assistance for 10 years is any 
individual convicted of having fraudulently misrepresented 
residence (or found by a State to have made a fraudulent 
statement) in order to obtain benefits or services from two or 
more States from the block grant, Medicaid, Food Stamps, or 
Supplemental Security Income.

Senate amendment

      Ineligible for block grant assistance for 10 years is any 
person convicted in Federal court or State court of having 
fraudulently misrepresented residence in order to obtain 
benefits or services from two or more States from the cash 
block grant, Medicaid, Food Stamps, or Supplemental Security 
Income.

Conference agreement

      The conference agreement follows the Senate amendment.

 (10) Denial of aid for fugitive felons, probation and parole violators

Present law

      No provision.

House bill

      No assistance may be provided to an individual who is 
fleeing to avoid prosecution, custody or confinement after 
conviction for a crime (or an attempt to commit a crime) that 
is a felony (or, in New Jersey, a high misdemeanor), or who 
violates probation or parole imposed under Federal or State 
law.
      Any safeguards established by the State against use or 
disclosure of information about individual recipients shall not 
prevent the agency, under certain conditions, from providing 
the address of a recipient to a law enforcement officer who is 
pursuing a fugitive felon or parole or probation violator. This 
provision applies also to a recipient sought by an officer not 
because he is a fugitive but because he has information that 
the officer says is necessary for his official duties. In both 
cases the officer must notify the State that location or 
apprehension of the recipient is within his official duties.

Senate amendment

      A State shall furnish law enforcement officers, upon 
their request, the address, social security number, and 
photograph (if available) of any recipient if the officers 
notify the agency that the recipient is a fugitive felon, or a 
violator of probation or parole, or that he has information 
needed by the officers to perform their duties, and that the 
location or apprehension of the recipient is within the 
officers' official duties.

Conference agreement

      The conference agreement follows the House bill.

(11) No assistance for minor children who are absent, or relatives who 
                fail to notify agency of child's absence

Present law

      Regulations allow benefits to continue for children who 
are ``temporarily absent'' from home.

House bill

      No assistance may be provided for a minor child who has 
been absent from the home for 45 consecutive days or, at State 
option, between 30 and 90 consecutive days. States may 
establish a good cause exemption as long as it is detailed in 
the State report to the Secretary. No assistance can be given 
to a parent or caretaker who fails to report a missing minor 
child within 5 days of the time it is clear that the child is 
absent.

Senate amendment

      Similar provision to House bill, with different wording.

Conference agreement

      The conference agreement follows the House bill.

   G. Income/Resource Limits, Treatment of Earnings and Other Income

                          (1) Resource limits

Present law

      $1,000 per family in counted resources (excluding home 
and some of the value of an auto, funeral arrangements, burial 
plots, real property that the family is attempting to sell, 
and--for two months--refunds of the Earned Income Tax Credit 
(EITC)).

House bill

      No provision.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment (no provision).

                           (2) Income limits

Present law

      Gross family income limit: 185 percent of the State 
standard of need.

House bill

      No provision.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment (no provision).

                              (3) Earnings

Present law

      Mandatory disregard: during first 4 months of a job, $120 
and one-third, plus child care costs up to a limit; next 8 
months, $120 plus child care; after 12 months, $90 plus child 
care.

House bill

      No provision.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment (no provision).

                      (4) Earned income tax credit

Present law

      Mandatory disregard: advance EITC payments must be 
disregarded.

House bill

      Repeals mandatory EITC disregard (a provision of AFDC 
law). States would set policy about treatment of EITC payments 
by block grant program.

Senate amendment

      Provision is identical to House position.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment.

                           (5) Child support

Present law

      Mandatory disregard: first $50 monthly in child support 
collections is passed through to the family. In some States, 
child support payments that fill some or all of the gap between 
payment and need standard must be ignored.

House bill

      In determining a family's eligibility and payment amount 
under the block grant, a State may not disregard child support 
collected by the State and distributed to the family.

Senate amendment

      States are given the option of disregarding child 
support. Repeals required disregard of the first $50 monthly in 
child support collections distributed to the family (a 
provision of AFDC law).

Conference agreement

      The conference agreement follows the Senate amendment.

                           (6) Other cash aid

Present law

      AFDC benefits may not be paid to a recipient of old-age 
assistance (predecessor to Supplemental Security Income (SSI) 
and now available only in Puerto Rico, Guam, and the U.S. 
Virgin Islands), SSI, or AFDC foster care payments.

House bill

      If block grant funds are used to provide payments to a 
recipient of old-age assistance, SSI, or payments under the 
Child Protection Block grant, a State may not disregard these 
other payments in determining a family's eligibility for and 
payment amount from the block grant.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill.

                 H. Various Procedural and Policy Rules

                       (1) Statewide requirement

Present law

      AFDC must be available in all political subdivisions, 
and, if administered by them, be mandatory upon them.

House bill

      No provision.

Senate amendment

      Under the State plan, a State must outline how it intends 
to conduct a family assistance program ``designed to serve all 
political subdivisions in the State.''

Conference agreement

      The conference agreement follows the Senate amendment.

                        (2) Single State agency

Present law

      Single agency must administer or supervise administration 
of the plan.

House bill

      No provision.

Senate amendment

      The State's Chief Executive Officer must certify which 
State agency or agencies are responsible for administration and 
supervision of the program for the fiscal year.

Conference agreement

      The conference agreement follows the Senate amendment, 
with the modification that public and local agencies must have 
60 days to submit comments.

                         (3) State cost sharing

Present law

      State must share in program costs.

House bill

      No provision.

Senate amendment

      States must continue to spend at least 80 percent of what 
they expended in FY1994 on AFDC or face a dollar-for-dollar 
reduction in their basic block grant amount for FY1997-2000.
      In order to qualify for additional funding under the 
contingency fund or additional child care funds, States must 
continue to spend at least 100 percent of what they expended in 
FY1994.

Conference agreement

      The conference agreement generally follows the House bill 
and the Senate amendment with the modification to require a 75 
percent maintenance of effort for the basic family assistance 
block grant, but no maintenance of effort for child care funds 
under the CCDBG.

                        (4) Aid to all eligibles

Present law

      State must furnish aid to eligible persons with 
reasonable promptness and give opportunity to make application 
to all wishing to do so.

House bill

      No provision.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment (no provision).

                            (5) Fair hearing

Present law

      State must give fair hearing opportunity to person whose 
claim is denied or not acted upon promptly.

House bill

      No provision.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment (no provision).

                       (6) Administrative methods

Present law

      State must adopt administrative methods found necessary 
by the Secretary.

House bill

      No provision.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment (no provision).

             (7) Zero benefit below $10, rounding benefits

Present law

      State cannot pay AFDC below $10 monthly and must round 
down to the next lower dollar both the need standard and the 
benefit.

House bill

      No provision.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment (no provision).

                  (8) Pre-eligibility fraud detection

Present law

      State must have measures to detect fraudulent 
applications for AFDC before establishing of eligibility.

House bill

      No provision

Senate amendment

      No provision

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment (no provision).

                  (9) Correction of erroneous payments

Present law

      State must promptly correct overpayments and 
underpayments.

House bill

      No provision

Senate amendment

      Requires the Treasury Secretary, upon notification from a 
State that it has overpaid a former recipient of temporary cash 
assistance and has attempted unsuccessfully to collect the 
overpayment, to collect the sum from Federal tax refunds.

Conference agreement

      The conference agreement follows the Senate amendment.

                   (10) Appeal procedure (for States)

Present Law

      Current law (sec. 1116 of the Social Security Act) 
entitles a State to a reconsideration, which DHHS must grant 
upon request, of any disallowed reimbursement claim for an item 
of class of items. The section also provides for administrative 
and judicial review, upon petition of a State, of DHHS 
decisions about approval of State plans. At the option of a 
State, any plan amendment may be treated as the submission of a 
new plan.

House bill

      Repeals reference to Title IV-A in section 1116.

Senate amendment

      Requires the Secretary to notify the Governor of a State 
of any adverse decision or action under Title IV-A, including 
any decision about the State's plan or imposition of a penalty. 
Provides for administrative review by a Departmental Appeals 
Board within DHHS and requires a Board decision within 60 days 
after an appeal is filed. Provides for judicial review (by a 
United States district court) within 90 days after a final 
decision by the Board. The Amendment also repeals the reference 
to Title IV-A in section 1116.

Conference agreement

      The conference agreement follows the Senate amendment.

                       I. Quality Control/Audits

Present law

      The Secretary must operate a quality control system to 
determine the amount of Federal matching funds to be 
disallowed, if any, because of erroneous payments. The law also 
prescribes penalties for payment error rates above the national 
average. AFDC payments to States are subject to audits 
conducted under the Single Audit Act [Ch. 75, Title 31, U.S.C.]

House bill

      Family assistance block grants are subject to the Single 
Audit Act. If an audit conducted under this Act finds that a 
State has used block grant funds in violation of the law, its 
grant for the next year is to be reduced by that amount (but no 
quarterly payment is to be reduced by more than one-fourth).

Senate amendment

      Requires a State to offset loss of Federal funds with its 
own, maintaining the full block grant level. Also, the penalty 
shall not be imposed if the State proves to the Secretary that 
the violation was not intentional, and if the State implements 
an approved corrective action plan. Each State must audit its 
cash block grant expenditures annually and submit a copy to the 
State legislature, Treasury Secretary and DHHS Secretary. The 
audit must be conducted by an entity that is independent from 
any agency administering activities under title IV-A. Also 
subject to the Single Audit Act.

Conference agreement

      The conference agreement follows the House bill regarding 
audits to review States' use of funds with the modification 
that the funds come directly from the Department of Treasury. 
(See also the Penalties section below on States misusing funds 
and States failing to meet work requirements.)

                    J. Data Collection and Reporting

                       (1) Reporting requirements

Present law

      States are required to report the average monthly number 
of families in each JOBS activity, their types, amounts spent 
per family, length of JOBS participation and the number of 
families aided with AFDC/JOBS child care services, the kinds of 
child care services provided, and sliding fee schedules. States 
that disallow AFDC for minor mothers in their own living 
quarters are required to report the number living in their 
parent's home or in another supervised arrangement. States also 
must report data (including numbers aided, types of families, 
how long aided, payments made) for families who receive 
transitional Medicaid benefits. DHHS collects data about 
demographic characteristics and financial circumstances of AFDC 
families from its National Integrated Quality Control System 
(NIQCS) and publishes State and national information that 
represents average monthly amounts for a fiscal year. The NIQCS 
uses monthly samples of AFDC cases.

House Bill

      States are required, not later than 6 months after the 
end of each fiscal year, to transmit to the Secretary the 
following aggregate information on families receiving block 
grant benefits during the fiscal year:
            (a) the number of adults receiving assistance;
            (b) the number of children receiving assistance and 
        the average age of children;
            (c) the employment status and average earnings of 
        employed adults;
            (d) the number of one-parent families in which the 
        sole parent is a widow or widower, is divorced, is 
        separated, or is never married;
            (e) the age, race, educational attainment, and 
        employment status of parents;
            (f) the average assistance provided to families;
            (g) whether, at the time of application, the 
        families or anyone in the families receive benefits 
        from the following public programs:
                    (1) Housing
                    (2) Food Stamps
                    (3) Head Start
                    (4) Job Training;
            (h) the number of months the families have been on 
        welfare during their current spell;
            (i) the total number of months for which benefits 
        have been provided to the families;
            (j) data necessary to indicate whether the State is 
        in compliance with the State's plan;
            (k) the components of any employment and training 
        activities, and the average monthly number of adults in 
        each component; and
            (l) the number of part-time and full-time job 
        placements made by the program, the number of cases 
        with reduced assistance, and the number of cases closed 
        due to employment.

Senate amendment

      States are required to make quarterly reports based on 
sample case records providing disaggregated data for the 
quality assurance system, including:
            (a) age of adults and children (including pregnant 
        women) in each family;
            (b) marital and familial status of each family 
        member (including whether family includes 2 parents and 
        whether child is living with an adult relative other 
        than a parent);
            (c) gender, educational level, work experience, and 
        race of each family head;
            (d) health status of each family member (including 
        whether any is seriously ill, disabled, or 
        incapacitated and is being care for by another family 
        member);
            (e) type and amount of any benefit or assistance 
        received, including amount of and reason for any 
        benefit reduction, and if help is ended, whether this 
        is because of employment, sanction, or time limit;
            (f) any benefit or assistance received by a family 
        member with respect to housing, food stamps, job 
        training, or Head Start;
            (g) number of months since the family's most recent 
        application for aid, and if application was denied, the 
        reason;
            (h) number of times a family applied for and 
        received aid from the cash block grant program and the 
        number of months were received in each ``spell'' of 
        assistance;
            (i) employment status of adults in family 
        (including hours worked and amount earned);
            (j) date on which an adult family member began to 
        engage in work, hours worked, work actively performed, 
        amount of child care assistance, if any;
            (k) number of persons in each family receiving, and 
        the number not receiving, assistance, and the 
        relationship of each person to the youngest child in 
        the family;
            (l) citizenship status of each family member;
            (m) housing arrangement of each family member;
            (n) amount of unearned income, child support, 
        assets and other financial factors relevant to 
        eligibility;
            (o) location in the State of each recipient family; 
        and
            (p) any other data determined by Secretary to be 
        necessary for efficient and effective administration.
      States are required to report the following aggregated 
monthly data about families who received temporary family 
assistance for each month in the calendar quarter preceding the 
one in which the data are submitted, families applying for 
assistance in the preceding quarter, and families that became 
ineligible for aid during that quarter:
            (1) number of families,
            (2) number of adults in each family,
            (3) number of children in each family, and
            (4) number of families whose assistance ended 
        because of employment, sanctions, or time limits.
      The Secretary shall determine appropriate subsets of the 
data listed above that a State is required to submit regarding 
applicant and no-longer eligible families.

Conference agreement

      The conference agreement generally follows the House bill 
and the Senate amendment, but with some modifications. 
Specifically, beginning July 1, 1996, each State must collect 
on a monthly basis, and report to the Secretary on a quarterly 
basis, the following information on individual families 
receiving assistance:
            (1) the county of residence of the family;
            (2) whether a child receiving assistance or an 
        adult in the family is disabled;
            (3) the ages of the members of such families;
            (4) the number of individuals in the family, and 
        the relationship of each family member to the youngest 
        child in the family;
            (5) the employment status and earnings of the 
        employed adult in the family;
            (6) the martial status of the adults in the family, 
        including whether such adult are never married, 
        widowed, or divorced;
            (7) the race and education status of each adult in 
        the family;
            (8) the race and educational status of each child 
        in the family;
            (9) whether the family received subsidized housing, 
        Medicaid, food stamps, or subsidized child care, and if 
        the later two, the amount received;
            (10) the number of months the family has received 
        each type of assistance under the program;
            (11) if the adults participated in, and the number 
        of hours per week of participation in, the following 
        activities;
                    (A) education;
                    (B) subsidized private sector employment;
                    (C) unsubsidized employment;
                    (D) public sector employment, work 
                experience, or community service;
                    (E) job search;
                    (F) job skills training or on-the-job 
                training; and
                    (G) vocational education;
            (12) information necessary to calculate 
        participation rates under section 407;
            (13) the type and amount of assistance received 
        under the program, including the amount of and reason 
        for any reduction of assistance (including sanctions);
            (14) from a sample of closed cases, whether the 
        family left the program, and if so whether the family 
        left due to
                    (A) employment;
                    (B) marriage;
                    (C) the prohibition set forth in section 
                408(a)(8);
                    (D) sanction; or
                    (E) State policy;
            (15) any amount of unearned income received by any 
        member of the family; and
            (16) the citizenship of the members of the family.

                (2) Authority of States to use estimates

Present law

      The National Integrated Quality Control System (above) 
uses monthly samples of AFDC cases. JOBS regulations require 
States to submit a sample of monthly unaggregated case record 
data.

House bill

      States may use scientifically acceptable sampling methods 
to estimate the data elements required for annual reports.

Senate amendment

      The Secretary shall provide States with case sampling 
plans and data collection procedures deemed necessary for 
statistically valid estimates.

Conference agreement

      The conference agreement follows the House bill and the 
Senate amendment and clarifies that sampling methods used by 
States must be approved by the Secretary.

                 (3) Other State reporting requirements

Present law

      Regulations require each State to submit quarterly 
estimates of the total amount (and the Federal share) of 
expenditures for AFDC benefits and administration.
      Required quarterly reports include estimates of the 
Federal share of child support collections made by the State; 
see above for transitional child care and Medicaid reporting 
requirements.

House bill

      The report submitted by the State each fiscal year must 
also include:
            (1) a statement of the percentage of the funds paid 
        to the State that are used to cover administrative 
        costs or overhead;
            (2) a statement of the total amount expended by the 
        State during the fiscal year on programs for needy 
        families; and
            (3) the number of noncustodial parents in the State 
        who participated in work activities as defined in the 
        bill during the fiscal year.

Senate amendment

      The report required by a State for a fiscal year must 
include:
            (1) a statement of the total amount and percentage 
        of Federal funds paid to the State under Title IV-A 
        that are used for administrative costs or overhead;
            (2) a statement of the total amount of State funds 
        expended on programs for the needy;
            (3) the number of noncustodial parents who 
        participated in work activities during the fiscal year;
            (4) the total amount of child support collected by 
        the State IV-D agency on behalf of a family in the cash 
        assistance program;
            (5) the total amount spent by the State for child 
        care under Title IV-A, with a description of the types 
        of care, including transitional care for families who 
        no longer receive assistance because of work and ``at-
        risk'' care for persons who otherwise might become 
        eligible for assistance; and
            (6) the total amount spent by the State for 
        providing transitional services to a family that no 
        longer receive assistance because of employment, along 
        with a description of those services.

Conference agreement

      The conference agreement follows the House bill and 
Senate amendment as follows:
            (1) follow the House bill regarding administrative 
        funds;
            (2) follow the House bill regarding reports of 
        State expenditures;
            (3) follow the House bill regarding noncustodial 
        parent participation;
            (4) follow the House bill regarding child support 
        (no provision; separate reporting requirement);
            (5) follow the House bill regarding child care (no 
        provision; separate reporting requirement); and
            (6) follow the Senate amendment regarding reports 
        on transitional services.

   K. Reports Required by DHHS Secretary (Sections 103, 106, and 107)

Present law

      The law requires the DHHS Secretary to report promptly to 
Congress the results of State reevaluations of AFDC need 
standards and payment standards required at least every 3 
years. The Secretary is to annually compile and submit to 
Congress annual State reports on at-risk child care. The Family 
Support Act required the Secretary to submit recommendations 
regarding JOBS performance standards by a deadline that was 
extended.

House bill

      The DHHS Secretary must report to Congress within 6 
months on the status of automatic data processing systems in 
the States and on what would be required to produce a system 
capable of tracking participants in public programs over time 
and checking case records across States to determine whether 
some individuals are participating in public programs in more 
than one State. The report should include a plan for building 
on the current automatic data processing system to produce a 
system capable of performing these functions as well as an 
estimate of the time required to put the system in place and 
the cost of the system.
      The DHHS Secretary must, to the extent feasible, produce 
and publish for each State, county, and local unit of 
government for which data have been compiled in the most recent 
census of population, and for each school district, data about 
the incidence of poverty. Data shall include, for each school 
district, the number of children age 5 to 17 inclusive, in 
families below the poverty level, and, for each State and 
county for which data have been compiled by the Census Bureau, 
the number of persons aged 65 or older. Data shall be published 
for each State, county and local unit of government in 1996 and 
at least every second year thereafter; and for each school 
district, in 1998 and at least every second year thereafter. 
Data may be produced by means of sampling, estimation, or any 
other method that the Secretary determines will produce 
current, comprehensive, and reliable information. If reliable 
data could not be otherwise produced, the Secretary is given 
authority to aggregate school districts. The DHHS Secretary is 
to consult with the Secretary of Education in producing data 
about school districts. If unable to produce and publish the 
required data, the Secretary must submit a report to the 
President of the Senate and the Speaker of the House not later 
than 90 days before the start of the following year, 
enumerating each government or school district excluded and 
giving the reason for the exclusion.

Senate amendment

      The Secretary must in cooperation with the States, study 
and analyze measures of program outcomes (as an alternative to 
minimum participation rates) for evaluating the success of 
State block grant programs in helping recipients leave welfare. 
The study must include a determination of whether outcomes 
measures should be applied on a State or national basis and a 
preliminary assessment of the job placement performance bonus 
established in the Act. The Secretary must report findings to 
the Committee on Finance and the Committee on Ways and Means 
not later than September 30, 1998.
      The Secretary is to report by Dec. 31, 1997, to the 
Committee on Ways and Means and the Committee on Economic and 
Educational Opportunities of the House and the Committee on 
Finance, the Committee on Labor and Human Resources, and the 
Special Committee on Aging of the Senate setting forth findings 
of a study on the effects of welfare changes made by the Act on 
grandparents who are primary caregivers for their 
grandchildren. The study is to identify barriers to 
participation in public programs by grandparent caregivers, 
including inconsistent policies, standards, and definitions of 
programs providing medical aid, cash, child support 
enforcement, and foster care.
      Not later than March 31, 1998, and each fiscal year 
thereafter, the Secretary shall send Congress a report 
describing:
            (1) whether States are meeting minimum 
        participation rates and whether they are meeting 
        objectives of increasing employment and earnings of 
        needy families, increasing child support collections, 
        and decreasing out-of-wedlock pregnancies and child 
        poverty;
            (2) demographic and financial characteristics of 
        applicant families, recipient families, and those no 
        longer ineligible for temporary family assistance;
            (3) characteristics of each State program of 
        temporary family assistance; and
            (4) trends in employment and earnings of needy 
        families with minor children.

Conference agreement

      The conference agreement follows the House bill and 
Senate amendment as follows:
            (1) follow the House bill with regard to the 
        Secretary's report on data processing;
            (2) follow the Senate amendment on the report on 
        poverty (no provision);
            (3) follow the Senate amendment with regard to the 
        report on alternative outcome measures;
            (4) follow the House bill on the report on 
        grandparent caregivers (no provision); and
            (5) follow the Senate amendment with regard to the 
        annual report on State process.

             L. Research, Evaluations, and National Studies

Present law

      The law authorizes $5 million annually for cooperative 
research or demonstration projects, such as those relating to 
the prevention and reduction of dependency.

House bill

      The Secretary may conduct research on the effects, costs, 
benefits, and caseloads of State programs funded under this 
part. The Secretary may assist the States in developing, and 
shall evaluate (using random assignment to experimental and 
control groups to the maximum extent feasible), innovative 
approaches to employing recipients of cash aid under this part. 
The Secretary may conduct studies of the welfare caseloads of 
States operating welfare reform programs. The Secretary shall 
develop innovative methods of disseminating information on 
research, evaluations, and studies.

Senate amendment

      The Secretary may conduct research on the effects, 
benefits, and costs of operating different State programs of 
Temporary Assistance for Needy Families, including time limits 
for eligibility. The research shall include studies on the 
effects of different programs and the operation of the programs 
on welfare dependency, illegitimacy, teen pregnancy, employment 
rates, child well-being, and any other appropriate area. The 
Secretary may assist States in developing, and shall evaluate 
innovative approaches for reducing welfare dependency and 
increasing the well-being of minor children, using random 
assignments in these evaluations ``to the maximum extent 
feasible.''
      The Secretary shall develop innovative methods of 
disseminating information on research, evaluations, and 
studies, including ways to facilitate sharing of information 
via computers and other technologies.
      The Senate amendment makes a State eligible to receive 
funding to evaluate its family assistance program if it submits 
an evaluation design determined by the Secretary to be rigorous 
and likely to yield credible and useful information. The State 
must pay 10 percent of the study's cost, unless the Secretary 
waives this rule. For these State-initiated evaluation studies 
of the family assistance program (and for costs of operating 
and evaluating demonstration projects begun under the AFDC 
waiver process) the amendment authorizes to be appropriated, 
and appropriates, to total of $20 million annually for 5 years 
(FYs 1996-2000).

Conference agreement

      The conference agreement follows the Senate amendment 
except that $15 million is appropriated annually for this 
purpose. Conferees agree that the Secretary can use funds 
appropriated for research to pay for evaluations conducted by 
both governmental and non-governmental organizations.

                               M. Waivers

Present law

      The law authorizes the DHHS Secretary to waive specified 
requirements of State AFDC plans in order to enable a State to 
carry out any experimental, pilot, or demonstration project 
that the Secretary judges likely to assist in promoting the 
program's objective. (Sec. 1115 of Social Security Act) Some 34 
States have received waivers from the Clinton Administration 
for welfare reforms of their own.

House bill

      Repeals AFDC. Also, expressly repeals authority for 
waiver of specified provisions of AFDC law (Sec. 402, State 
plan requirements, and Sec. 403, terms of payment to States) 
for demonstration projects.

Senate amendment

      Provides that terms of AFDC waivers in effect, or 
approved, as of October 1, 1995, will continue until their 
expiration, except that beginning with FY1996 a State operating 
under a waiver shall receive the block grant described under 
Section 403 in lieu of any other payment provided for in the 
waiver. The amendment gives States the option to terminate 
waivers before their expiration, but requires that early-ended 
projects be summarized in written reports. The amendment 
provides that a State that submits a request to end a waiver by 
January 1, 1996, or 90 days after adjournment of the first 
regular session of the State legislature that begins after the 
date of enactment, shall be held harmless for accrued cost 
neutrality liabilities incurred under the waiver.
      The Secretary is directed to encourage any State now 
operating a waiver to continue the project and to evaluate its 
result or effect. The amendment allows a State to elect to 
continue one or more individual waivers.

Conference agreement

      The conference agreement follows the Senate amendment.

         N. Studies by the Census Bureau (Sections 103 and 105)

Present law

      No provision.

House bill

      The Census Bureau must expand the Survey of Income and 
Program Participation (SIPP) to evaluate the impact of welfare 
reforms made by this title on a random national sample of 
recipients and, as appropriate, other low-income families. The 
study should focus on the impact of welfare reform on children 
and families, and should pay particular attention to the issues 
of out-of-wedlock birth, welfare dependency, the beginning and 
end of welfare spells, and the causes of repeat welfare spells. 
$10 million per year for 7 years in entitlement funds are 
authorized for this study.

Senate amendment

      Expansion of SIPP is identical to House provision.
      In addition, the Secretary of Commerce shall expand the 
Census Bureau's question (for the decennial census and mid-
decade census) concerning households with both grandparents and 
their grandchildren so as to distinguish between households in 
which a grandparent temporarily provides a home and those where 
the grandparent serves as primary caregiver.

Conference agreement

      The conference agreement follows the House bill regarding 
the expansion of SIPP to evaluate welfare programs and follows 
the Senate amendment regarding census data on grandparents as 
caregivers.

   O. Services From Charitable, Religious, or Private Organizations 
                             (Section 104)

Present law

      The Child Care and Development Block Grant Act prohibits 
use of any financial assistance provided through any grant or 
contract for any sectarian purpose or activity. In general, it 
requires religious nondiscrimination, but it does allow a 
sectarian organization to require employees to adhere to its 
religious tenets and teachings.

House bill

      No provision.

Senate amendment

      Authorizes States to administer and provide family 
assistance services (and services under Supplemental Security 
Income and public housing) through contracts with charitable, 
religious, or private organizations. Authorizes States to pay 
recipients by means of certificates, vouchers, or other forms 
of disbursement that are redeemable with these private 
organizations. States that religious organizations are 
eligible, on the same basis as any other private organization, 
to provide assistance as contractors or to accept certificates 
and vouchers so long as their programs ``are implemented 
consistent with'' the Establishment Clause of the Constitution. 
Stipulates that any religious organization with a contract to 
provide welfare services shall retain independence from all 
units of government and that such a religious organization (or 
not that redeems welfare certificates) may require employees 
who render service related to the contract or certificates to 
adhere to the religious tenets and teaching of the organization 
and to its rules, if any, regarding use of drugs or alcohol. 
Provides that, except as otherwise allowed by law, a religious 
organization administering the program may not discriminate 
against beneficiaries on the basis of religious belief, or 
refusal to participate in a religious practice. Requires States 
to provide an alternative provider for a beneficiary who 
objects to the religious character of the designated 
organization. Provides that no funds provided directly to 
institutions or organizations to provide services and 
administer programs shall be spent for sectarian worship or 
instruction, but does not apply this limitation to financial 
assistance in the form of certificates or vouchers, if the 
beneficiary may choose where the aid is redeemed.

Conference agreement

      This section (section 104) generally follows the Senate 
amendment. Subsection (j) states that no funds provided 
directly to institutions or organizations to provide services 
and administer programs under subsection (a)(1)(A) shall be 
expended for sectarian worship, instruction, or 
proselytization. Subsection (a)(1)(A) refers to contracts that 
States may have with charitable, religious, or private 
organizations. While Congress recognizes the need to ensure 
that money provided directly through contracts should not be 
expended for worship, instruction, or proselytization, Congress 
does not intend that the prohibition should apply when 
beneficiaries receive benefits in the form of certificates, 
vouchers, or other forms of disbursement redeemable with 
nongovernmental entities. Where the character of the aid goes 
directly to the ultimate beneficiary in the form of a voucher 
or certificate, the beneficiary exercises personal choice as to 
where to use the voucher or certificate, and may or may not 
choose to redeem it at a religious provider which incorporates 
worship or instruction in its provision of services. Congress 
has recognized and allowed such use of vouchers and 
certificates in the Child Care and Development Block Grant of 
1990 (42 U.S.C. 9858 et seq.)
      More importantly, a beneficiary's redemption of a 
government-provided voucher at a religious entity has been 
determined as non-violative of the Establishment Clause by the 
Supreme Court provided that the beneficiary has genuine choice 
about where to redeem the voucher or certificate. The Court has 
consistently held that government may confer a benefit on 
individuals in a manner which allows them to exercise personal 
choice among similarly qualified institutions, whether public, 
private non-sectarian, or religious, even when the benefit can 
be said to indirectly advance religion. Zobrest v. Catalina 
Foothills School Dist., 113 S. Ct. 2462 (1993) (providing 
special education services to Catholic student not prohibited 
by Establishment Clause); Witters v. Washington Dep't of 
Services for the Blind, 474 U.S. 481 (1986) (upholding a State 
vocational rehabilitation grant to disabled student choosing to 
use grant for training as cleric); Mueller v. Allen, 463 U.S. 
388 (1983) (upholding State income tax deduction for parents 
for educational expenses).
      Subsection (k) states that nothing in this section shall 
be construed to preempt State constitutions or statutes which 
restrict the expenditure of State funds in or by religious 
organizations. In some States, provisions of the State 
constitution or a State statute prohibit the expenditure of 
public funds in or by sectarian institutions. It is the intent 
of Congress, however, to encourage States to involve religious 
organizations in the delivery of welfare services to the 
greatest extent possible. The conferees do not intend that this 
language be construed to require that funds provided by the 
Federal government referred to in subsection (a) be segregated 
and expended under rules different than funds provided by the 
State for the same purposes; however, States may revise such 
laws, or segregate State and Federal funds, as necessary to 
allow full participation in these programs by religious 
organizations.
      In addition, the conference agreement revises Senate 
language on employment discrimination by religious 
organizations by stating that the exemption provided under 
section 702 of the Civil Rights Act of 1964 is not affected by 
participation in or receipt of funds from programs described in 
subsection (a).

                       6. transfers (section 103)

                       A. Child Support Penalties

Present law

      If a State's child support plan fails to comply 
substantially with Federal requirements, the Secretary is to 
reduce its AFDC matching funds by percentages that rise for 
successive violations (Sec. 403(h) of the Social Security Act).

House bill

      The provision for child support review penalties--loss of 
Federal payments of up to 5 percent of the block grant amount--
now found in 403(h) of part A of the Social Security Act is 
retained in the block grant.

Senate amendment

      No provision. However, there is a penalty assessed 
against States for failure to enforce penalties requested by 
child support agency against recipients who do not cooperate in 
establishing paternity.

Conference agreement

      The conference agreement follows the House bill.

               B. Assistant Secretary for Family Support

Present law

      An Assistant Secretary for Family Support, appointed by 
the President by and with consent of the Senate, is to 
administer AFDC, child support enforcement, and the Jobs 
Opportunities and Basic Skills (JOBS) program.

House bill

      The provision for an Assistant Secretary for Family 
Support now found in section 417 of Part A of the Social 
Security Act is retained in the block grant (as sec. 409), but 
modified to remove the reference to JOBS (which the House bill 
repeals).

Senate amendment

      Identical provision.

Conference agreement

      The conference agreement follows the House bill and 
Senate amendment.

7. conforming amendments to the social security act and the food stamp 
                       act (sections 108 and 109)

Present law

      No provision.

House bill

      These sections make a series of technical amendments that 
conform the provisions of the House bill with various titles of 
the Social Security Act and the Food Stamp Act and provide for 
the repeal of Part F of Title IV (the JOBS program).

Senate amendment

      This section makes a series of amendments that conform 
provisions of the Senate amendment with various titles of the 
Social Security Act and the Food Stamp Act.

Conference agreement

      The conference agreement generally follows the House bill 
and the Senate amendment, with changes made as appropriate.

          8. conforming amendments to other laws (section 110)

Present law

      No provision.

House bill

      This section makes a series of technical amendments to 
conform provisions of the House bill to the Internal Revenue 
Code, the Omnibus Reconciliation Act of 1987, the Housing and 
Urban-Rural Recovery Act of 1983, the Tax Equity and Fiscal 
Responsibility Act of 1982, and the Stewart B. McKinney 
Homeless Assistance Amendments Act of 1988.

Senate amendment

      Section 107 makes a series of amendments that conform 
provisions of the Senate amendment to the Food Stamp Act, the 
Agriculture and Consumer Protection Act, the National School 
Lunch Act, and the Child Nutrition Act.
      Section 108 makes a series of amendments that conform 
provisions of the Senate amendment to the Unemployment 
Compensation Amendments of 1976, the Omnibus Budget 
Reconciliation Act of 1987, the House and Urban-Rural Recovery 
Act of 1983, the Tax Equity and Fiscal Responsibility Act of 
1982, the Social Security Amendments of 1967, the Stewart B. 
McKinney Homeless Assistance Amendments Act of 1988, the Higher 
Education Act of 1965, the Carl D. Perkins Vocational and 
Applied Technology Education Act, the Elementary and Secondary 
Education Act of 1965, Public Law 99-88, the Internal Revenue 
Code of 1986, the Wagner-Peyser Act, the Job Training 
Partnership Act, the Low-Income Home Energy Assistance Act of 
1981, the Family Support Act of 1988, the Balanced Budget and 
Emergency Deficit Control Act of 1985, the Immigration and 
Nationality Act, the Head Start Act, and the School-to-Work 
Opportunities Act of 1994.

Conference agreement

      The conference agreement generally follows the House bill 
and the Senate amendment, with changes made as appropriate.

 9. continued application of current standards under medicaid program 
                             (section 114)

Present law

      States must continue Medicaid (or pay premiums for 
employer-provided health insurance) for 6 months to a family 
that loses AFDC eligibility because of hours of, or income 
from, work of the caretaker relative, or because of loss of the 
earned income disregard after 4 months of work. States must 
offer an additional 6 months of medical assistance, for which 
it may require a premium payment if the family's income after 
child care expenses is not above the poverty guideline. For 
extended medical aid, families must submit specified reports. 
States must continue Medicaid for 4 months to those who lose 
AFDC because of increased child or spousal support.

House bill

      Although AFDC would be repealed, its standards would 
continue to be used by the Medicaid program. States would have 
to give Medicaid to families who would have received AFDC if it 
still existed as in effect on March 7, 1995. The frozen AFDC 
rules would govern Medicaid eligibility for both recipients and 
non-recipients of the new block grant funds, including those 
categorically ineligible for cash benefits.

Senate amendment

      Same as House provision except for date at which AFDC 
rules would be ``frozen'' (June 1, 1995, rather than March 7, 
1995). If an AFDC waiver (as of June 1, 1995) affects Medicaid 
eligibility, the State has the option to continue to apply the 
waiver in regard to Medicaid after the date when the waiver 
otherwise would end.

Conference agreement

      The conference agreement changes both the House bill and 
the Senate amendment because of pending changes in Medicaid 
legislation. In conforming with this legislation, conferees 
agree that States will determine Medicaid eligibility for 
recipients of block grant assistance.

                   10. Effective Dates (Section 116)

Present law

      No provision.

House bill

      The amendments and repeals made by this title take effect 
on October 1, 1995. The authority to reduce assistance for 
certain families that include a child whose paternity is not 
established will begin 1 year after the effective date or, at 
the option of the State, 2 years after the effective date.
      Amendments made by Title I (Block Grants for Temporary 
Assistance for Needy Families) shall not apply to powers, 
duties, functions, rights, claims, penalties, or obligations 
applicable to aid, or services provided (under AFDC) before the 
effective date of the Act. Nor shall amendments of the bill 
apply to administrative actions and proceedings commenced or 
authorized before the effective date of the bill.

Senate amendment

      AFDC is repealed effective October 1, 1995. Family 
assistance block grant provisions also take effect October 1, 
1995 (except for penalties, most of which are effective October 
1, 1996), but expire on September 30, 2000. A State may 
continue to operate its AFDC program for 9 months, until June 
30, 1996. If it does so, its FY 1996 cash block grant under the 
new program shall be reduced by the amount of Federal matching 
funds received for that year for AFDC expenditures.

Conference agreement

      Conferees agree that States must begin their block grant 
program under this title by 1 October, 1996. However, States 
have the option of initiating their block grant program at any 
time after the date of enactment.

                           11. miscellaneous

             A. County Authority for Demonstration Projects

Present law

      No provision.

House bill

      No provision.

Senate amendment

      Requires the DHHS Secretary and the Agriculture Secretary 
jointly to enter into negotiations with all counties having a 
population greater than 500,000 that desire to conduct a 
demonstration project in which: (1) the county shall have the 
authority and duty to administer the operation of the family 
assistance program as if the county were considered a State; 
(2) the State shall pass through directly to the county the 
portion of the block grant that the State determines is 
attributable to the residents of the county; and (3) the 
project shall last 5 years.
      To be eligible: (1) a county already must be 
administering the Title IV-A program; (2) must represent less 
than 25 percent of the State's total welfare caseload; and (3) 
the State must have more than one county with a population of 
greater than 500,000.
      Not later than 56 months after the end of a county 
demonstration project, the two Secretaries shall send a report 
to Congress that includes a description of the project, its 
rules, and innovations (if any).

Conference agreement

      The conference agreement follows the House bill.

         B. Collection of Overpayments from Federal Tax Refunds

Present law

      No provision.

House bill

      No provision.

Senate amendment

      Requires the Treasury Secretary, upon notification from a 
State that it has overpaid a former recipient of temporary cash 
assistance and has attempted unsuccessfully to collect the 
overpayment, to collect the sum from Federal tax refunds.

Conference agreement

      The conference agreement follows the Senate amendment.

           C. Tamper-Proof Social Security Card (Section 111)

Present law

      No provision.

House bill

      No provision.

Senate amendment

      Requires the Commissioner of Social Security to develop a 
prototype of a counterfeit-resistant social security card. The 
card must be made of a durable, tamper-resistant material such 
as plastic or polyester, employ technologies that provide 
security features, and be developed so as to provide 
individuals with reliable proof of citizenship of legal 
resident alien status. The Commissioner is to report to 
Congress on the cost of issuing a tamper-proof card for all 
persons over a 3-, 5-, and 10-year period. Copies of the 
report, along with a facsimile of the prototype card, shall be 
submitted to the Committees on Ways and Means and Judiciary of 
the House and the Committees on Finance and Judiciary of the 
Senate within one year of enactment.

Conference agreement

      The conference agreement follows the Senate amendment 
except that funding is not made through Title II of the Social 
Security Act.

        D. Disclosure of Receipt of Federal Funds (Section 112)

Present law

      No provision.

House bill

      No provision.

Senate amendment

      Requires disclosure of specified public funds received by 
501(c) organizations, which are non-profit and tax-exempt. When 
a 501(c) organization that accepts Federal funds under the Work 
Opportunity Act makes any communication that intends to promote 
public support or opposition to any governmental policy 
(Federal, State or local) through any broadcasting station, 
newspaper, magazine, outdoor advertising facility, direct 
mailing, or any other type of general public advertising, the 
communication must state: ``This was prepared and paid for by 
an organization that accepts taxpayer dollars''.

Conference agreement

      The conference agreement follows the Senate amendment.

    E. Projects to Expand Job Opportunities for Certain Low-Income 
                    Individuals (JOLI) (Section 113)

Present law

      The Family Support Act of 1988 (Sec. 505) directed the 
Secretary to enter into agreement with between 5 and 10 
nonprofit organizations to conduct demonstrations to create job 
opportunities for AFDC recipients and other low-income persons. 
For these projects, $6.5 million was authorized to be 
appropriated for each fiscal year, 1990-1992.

House bill

      No provision.

Senate amendment

      Strikes the word ``demonstration'' from the description 
of these projects and converts them to grant status. The 
provision requires the Secretary to enter into agreements with 
nonprofit organizations to conduct projects that create job 
opportunities for recipients of family assistance and other 
persons with income below the poverty guideline. The sum of $25 
million annually is authorized for these projects.

Conference agreement

      The conference agreement follows the Senate amendment.

           F. Demonstration Projects To Expand Use of Schools

Present law

      The 21st Century Community Learning Centers Act 
(established by P.L. 103-382) makes available funds directly to 
rural or inner-city schools, or consortia of them, to act as 
centers for providing education and human resources services. 
Services allowed include: literacy education, parenting skills 
education, employment counseling, training and placement. The 
Elementary and Secondary Education Act includes a program 
called ``Extend Time for Learning and Longer School Year,'' 
which support local educational agencies' efforts to lengthen 
learning time. Grantees may engage other community members in 
these efforts.

House bill

      No provision.

Senate amendment

      The Secretary of Education is required to make grants to 
not more than 5 States for demonstration grants to increase the 
number of hours when public school facilities are available for 
use. Schools selected must have a significant percentage of 
students receiving family assistance benefits. The longer hours 
are intended to enable volunteers and parents or professionals 
paid from other sources to teach, tutor, coach, organize, 
advise, or monitor students. Grants are intended also to make 
school facilities available for clubs, civic associations, Boy 
and Girl Scouts and other groups. The amendment authorizes $10 
million annually (FYs 1996-2000) for grants plus $1 million 
annually for administration by the Secretary.

Conference agreement

      The conference agreement follows the House bill (no 
provision).

  G. Secretarial Submission of Legislative Proposal for Technical and 
                  Conforming Amendments (Section 115)

Present law

      No provision.

House bill

      No provision.

Senate amendment

      Not later than 90 days after enactment of this Act, the 
Secretary must submit to the appropriate committees of Congress 
a legislative proposal providing for technical and conforming 
amendments.

Conference agreement

      The conference agreement follows the Senate amendment.

                 Title II. Supplemental Security Income

                  Subtitle A--Eligibility Restrictions

    1. denial of supplemental security income benefits by reason of 
               disability to drug addicts and alcoholics

                             A. In General

Present law

    Individuals whose drug addiction or alcoholism is a 
contributing factor material to their disability are eligible 
to receive SSI cash benefits for up to three years if they meet 
SSI income and resource requirements. These recipients must 
have a representative payee, must participate in an approved 
treatment program when available and appropriate, and must 
allow their participation in a treatment program to be 
monitored. Medicaid benefits continue beyond the 3-year limit, 
as long as the individual remains disabled, unless the 
individual was expelled from SSI for failure to participate in 
a treatment program.

House bill

    Under the House provision, an individual is not considered 
disabled if drug addiction or alcoholism is a contributing 
factor material to his or her disability. Individuals with drug 
addiction and/or alcoholism who cannot qualify based on another 
disabling condition will not be eligible for SSI benefits.

Senate amendment

    Identical to House bill.

Conference agreement

    This section was deleted from the conference agreement on 
H.R. 4 because it was included in H.R. 2684, The Senior 
Citizens' Right to Work Act.

                  B. Representative Payee Requirements

Present law

    SSI law requires that the SSI payments of individuals whose 
drug addiction or alcoholism is a contributing factor material 
to their disability must be made to another individual, or an 
appropriate public or private organization (i.e., the 
individual's ``representative payee'') for the use and benefit 
of the individual or eligible spouse.

House bill

    No provision.

Senate amendment

    Under the Senate amendment, if a disabled person also has 
an alcoholism or drug addiction condition (as determined by the 
Commissioner of Social Security), their SSI checks must be sent 
to a representative payee.

Conference agreement

    This section was deleted from the conference agreement on 
H.R. 4 because it was included in H.R. 2684, The Senior 
Citizens' Right to Work Act.

   C. Treatment Referrals for Individuals With an Alcoholism or Drug 
                          Addiction Condition

Present law

    Federal law requires SSI recipients whose drug addiction or 
alcoholism is a contributing factor material to their 
disability to undergo appropriate treatment, if it is 
available.

House bill

    No provision.

Senate amendment

    The Senate amendment requires the Commissioner of Social 
Security to refer to the appropriate State agency administering 
the State plan for substance abuse services any disabled SSI 
recipient who is identified as having an alcoholism or drug 
addiction condition. Any individual who refuses to accept the 
referred services without good cause is no longer eligible for 
SSI benefits.

Conference agreement

    This section was deleted from the conference agreement on 
H.R. 4 because it was included in H.R. 2684, The Senior 
Citizens' Right to Work Act.

                        D. Conforming Amendments

   E. Supplemental Funding for Alcohol and Substance Abuse Treatment 
                                Programs

Present law

    SSI cash benefits are limited to 3 years for recipients 
whose drug addiction or alcoholism is a contributing factor 
material to their disability. These individuals must undergo 
``appropriate substance abuse treatment.'' While the Social 
Security Administration currently contracts with agencies for 
referral, monitoring and reporting of compliance with 
treatment, it does not pay for treatment. Medicaid benefits are 
to continue beyond the 3-year limit, as long as the individual 
remains disabled, unless the individual was expelled from SSI 
for noncompliance with treatment.

House bill

    For four years beginning with FY 1997, $100 million of the 
savings realized from denying cash SSI payments and Medicaid 
coverage to individuals whose drug addiction or alcoholism is a 
contributing factor material to their disability will be 
targeted to drug treatment and drug abuse research. Each year, 
$95 million will be expended through the Federal Capacity 
Expansion Program (CEP) to expand drug treatment availability 
and $5 million will be allocated to the National Institute on 
Drug Abuse to be expended solely on the medication development 
project to improve drug abuse and drug treatment research.

Senate amendment

    For two years beginning with FY 1997, $50 million will be 
spent to fund additional drug (including alcohol) treatment 
programs and services through Substance Abuse Prevention and 
Treatment Block Grant.

Conference agreement

    This section was deleted from the conference agreement on 
H.R. 4 because it was included in H.R. 2684, The Senior 
Citizens' Right to Work Act.

                           F. Effective Dates

Present law

    Not applicable.

House bill

    This section of the bill becomes effective on October 1, 
1995, and applies with respect to months beginning on or after 
that date.

Senate amendment

    Generally, changes apply to applicants for benefits for 
months beginning on or after the date of enactment. An 
individual receiving benefits on the date of enactment whose 
eligibility would end would continue to be eligible for 
benefits until January 1, 1997. The Commissioner of Social 
Security shall notify individuals losing eligibility within 
three months of the date of enactment.
    In addition, in the case of an individual with an 
alcoholism or drug addiction condition who is receiving SSI 
benefits on the date of enactment, the representative payee 
requirement will apply on or after the first continuing 
disability review occurring after enactment. For recipients 
with an addiction who are over the age of 65, the Commissioner 
will determine appropriate representative payee requirements.

Conference agreement

    This section was deleted from the conference agreement on 
H.R. 4 because it was included in H.R. 2684, The Senior 
Citizens' Right to Work Act.

                             Reapplication

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    Individuals receiving SSI benefits on the date of enactment 
who are notified of their termination of eligibility and who 
desire to reapply for benefits must do so within four months 
after the date of enactment. The Commissioner of Social 
Security will determine within one year after the date of 
enactment the eligibility of individuals who reapply.

Conference agreement

    This section was deleted from the conference agreement on 
H.R. 4 because it was included in H.R. 2684, The Senior 
Citizens' Right to Work Act.

  2. Denial of SSI Benefits for 10 years to Individuals Found to Have 
   Fraudulently Misrepresented Residence in Order to Obtain Benefits 
            Simultaneously in 2 or More States (Section 201)

    See description in section 103 of title 1 of the conference 
agreement.

               Subtitle B--Benefits for Disabled Children

           1. Definition and Eligibility Rules (Section 211)

                 A. Definition of Childhood Disability

                      Comparable severity repealed

Present law

    A needy individual under age 18 is determined eligible for 
SSI ``if he suffers from any medically determinable physical or 
mental impairment of comparable severity'' with that of an 
adult considered work disabled and otherwise eligible for SSI 
benefits.

House bill

    The ``comparable severity'' test in statute for determining 
disability of children (defined as individuals under 18) is 
repealed.

Senate amendment

    Similar to the House bill.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment.

                         Disability definition

Present law

    There is no definition of childhood disability in the 
statute. Under current disability evaluation procedures, to be 
found disabled, a child must have a medically determinable 
physical or mental impairment that substantially reduces his or 
her ability to independently and effectively engage in age-
appropriate activities. This impairment must be expected to 
result in death or to last for a continuous period of not less 
than 12 months.

House bill

    Eligibility, as determined by the Commissioner of Social 
Security, for cash benefits or new medical or non-medical 
services described below will be based solely on: (1) meeting 
the non-disability-related requirement for eligibility; (2) 
meeting or equalling the current Listing of Impairments set 
forth in the Code of Federal Regulations (i.e., the Listing 
which is currently in regulations is to be codified in 
statute); and (3) being a disabled SSI recipient in the month 
prior to this provision's effective date or being in a 
hospital, skilled nursing facility, residential treatment 
facility, intermediate care facility for the mentally retarded, 
or otherwise would be placed in such a facility if the child 
were not receiving personal assistance necessitated by the 
impairment. Personal assistance refers to assistance with 
activities of daily living such as eating and toileting.

Senate amendment

    Adds a new statutory definition of childhood disability. An 
individual under the age of 18 is considered disabled for the 
purposes of this section if the individual has a medically 
determinable physical or mental impairment, which results in 
marked and severe functional limitations, and which can be 
expected to result in death or which has lasted or can be 
expected to last for a continuous period of not less than 12 
months.

Conference agreement

    The conference agreement follows the Senate amendment with 
technical modification and provides that the Commissioner of 
Social Security shall submit for review to the committees of 
jurisdiction in the Congress any final regulation with 
supporting documentation pertaining to the eligibility of 
individuals under age 18 for SSI benefits at least 45 days 
before the effective date of such regulation.
    By this definition, the conferees intend that only needy 
children with severe disabilities be eligible for children's 
SSI and that the Listing and other disability determination 
regulations as modified by the conference agreement properly 
reflect the severity of disability contemplated by the 
statutory definition. In those areas of the Listing that 
involve domains of functioning, the conferees expect no less 
than market limitations in no fewer than two domains or extreme 
limitations in at least one domain as the standard for 
qualification. The conferees are also aware that the Social 
Security Administration uses the term ``severe'' to often mean 
``other than minor'' in an initial screening procedure for 
disability determination and in other places. The conferees, 
however, use the term ``severe'' in its common sense meaning.
    The conferees do not intend to suggest by this definition 
of childhood disability that every child need be especially 
evaluated for functional limitations, or that this definition 
creates a supposition for any such examination. Under current 
procedures for writing individual listings, level of 
functioning is an explicit consideration in deciding which 
impairment, with what medical or other findings, are of 
sufficient severity to be included in the Listing. Nonetheless, 
the conferees do not intend to limit the use of functional 
assessments and functional information, if reflecting 
sufficient severity and are otherwise appropriate.

                B. Changes to Childhood SSI Regulations

                 Reliance on ``Listing of Impairments''

Present law

    Under the disability determination process for children, 
individuals whose impairments do not meet or equal the 
``Listing of Impairments'' in Federal regulations are subject 
to an ``individualized Functional Assessment (IFA)''. This 
assessment examines whether
the child can engage in age-appropriate activities effectively. 
If the child cannot, he or she is determined disabled.

House bill

    The Commissioner of Social Security must annually report to 
Congress on the Listings and recommend any needed revisions. 
Individualized functional assessments are no longer grounds for 
determination of disability.

Senate amendment

    The Commissioner of Social Security shall discontinue the 
individualized functional assessment for children set forth in 
the Code of Federal Regulations.

Conference agreement

    The conference agreement follows the Senate amendment. The 
conferees agree that a significant amount of the growth of the 
children's SSI program resulted from regulations issued in 1991 
by the Social Security Administration establishing the 
individualized functional assessment which liberalized program 
eligibility criteria beyond Congressional intent. Children with 
modest conditions or impairments were made eligible for SSI due 
to the individualized functional assessment, and therefore 
should not be eligible for SSI benefits.

       Multiple references to ``Maladaptive Behavior'' eliminated

 Present law

    Under the disability determination process for children, 
the Social Security Administration first determines if a child 
meets or equals the Listings of Impairments. Under the Listings 
that relate to mental disorders, maladaptive behavior may be 
scored twice, in domains of social functioning and of personal/
behavior functioning.

House bill

    No provision.

Senate amendment

    Requires the Commissioner of Social Security to eliminate 
references in the Listing to maladaptive behavior among medical 
criteria for evaluation of mental and emotional disorders in 
the domain of personal/behavioral function.

Conference agreement

    The conference agreement follows the Senate amendment.

  C. Medical Improvement Review Standard as it Applies to Individuals 
                          Under the Age of 18

    This section in the legislative language contains technical 
modifications to the medical improvement review standard based 
on the new definition of childhood disability.

                         D. Amount of Benefits

Present law

    A child who is determined to be disabled and who is 
eligible on the basis of his income and resources shall be paid 
benefits. If the child lives at home, the parents' financial 
resources are deemed available to the child. If the same child 
is institutionalized, after the first month away home only the 
child's own financial resources are deemed to be available for 
the child's care. The child may then qualify for a reduced 
(``personal needs allowance'') SSI benefit and for Medicare 
coverage. Because of these ``deeming'' rules, some children who 
could have been cared for at home might remain in institutions 
because, if they were to return home, they would lose Medicaid 
benefits. Medicaid ``waivers'' allow States to disregard the 
deeming rule, provide Medicaid coverage, and pay for support 
services to help families keep children at home.

House bill

    Children may be eligible for cash SSI payments in one of 
three circumstances:
    (1) if a child who is currently (defined as during the 
month prior to the first month for which this provision takes 
effect) receiving cash SSI payments by reason of disability 
will continue to be eligible for cash SSI benefits if the child 
has an impairment that meets or equals an impairment specified 
in the Listing of Impairments. Children receiving cash benefits 
under the grandfather provision whose financial eligibility is 
suspended would continue to receive cash benefits if financial 
eligibility is restored;
    (2) for all other children, a child may only receive cash 
SSI payments if the child has an impairment which meets or 
equals an impairment specified in the Listings of Impairments 
cited above, and is either in a hospital, skilled nursing 
facility, residential treatment facility, intermediate care 
facility for the mentally retarded, or otherwise would be 
placed in such a facility if the child were not receiving 
personal assistance necessitated by the impairment. Personal 
assistance refers to assistance with activities of daily living 
such as eating and toiling; and
    (3) if a child who is overseas as a dependent of a member 
of the U.S. Armed Forces and who is eligible for block grant 
services but not eligible for cash benefits under the new 
criteria shall be eligible for cash benefits. Cash benefits 
cease when the child returns to the United States.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows a modified version of the 
House bill. Once an eligible child is determined to meet the 
definition of disability, the amount of the individual's cash 
benefit will be based on whether the child meets the newly 
developed criteria for needing personal assistance enabling the 
child to remain with their family at home. This criteria is as 
follows:
            For a child under age 6--such individual has a 
        medical impairment that severely limits the 
        individual's ability to function in a manner 
        appropriate to individuals of the same age and who 
        without special personal assistance would require 
        specialized care outside the individual's home; or
            For a child age 6 or over--such individual requires 
        personal care assistance with: (a) at least two 
        activities of daily living, (b) continual 24-hour 
        supervision or monitoring to avoid causing injury or 
        harm to self or others, or (c) the administration of 
        medical treatment; and who without such assistance 
        would require full-time or part-time specialized care 
        outside the individual's home.
    The conferees have provided a different definition of the 
eligibility for children under age 6 and over age 6 because of 
the differing expectations of age appropriate behavior for 
children above and below this age. As described below, the 
conferees have requested the Commissioner of Social Security to 
undertake a study on ways to improve these definitions and the 
disability determination process.
    Children with disabilities meeting this criteria will 
receive 100 percent of the benefit amount provided by current 
law. Disabled children who do not meet this criteria will 
receive seventy-five percent of the benefit amount provided by 
current law. The conferees note that the SSI benefit under 
either tier is very generous. In 1995, the average SSI benefit 
for a child recipient is $5,040. Seventy-five percent of that 
benefit would be $3,780. Both the maximum children's SSI 
benefit or seventy-five percent of the maximum benefit is 
greater than the maximum 1995 AFDC benefit for a family of 
three in many States.
    The conferees acknowledge that many families of disabled 
children incur expenses beyond those by families of nondisabled 
children. However, the conferees agree that the extra expenses 
related to a child's disability vary widely depending on the 
nature and degree of disability and the availability of 
Federal, State, and local health care and/or disability 
programs. In order to reduce the inequity of the current system 
which provides one benefit level to all families without regard 
to additional disability-related financial needs, the conferees 
agree to establish a two-tiered benefit system. The higher tier 
is intended for families of children with the most severe 
disabilities who require full or part-time personal assistance 
which would prevent a parent from working full-time or which 
would require the presence of a personal assistance provider.
    The conferees also believe that Congress should investigate 
whether the unmet needs of families of disabled children could 
be better and more efficiently met through services, such as 
mental health treatment or purchase of items of assistive 
technology, rather than cash payments. In the twenty three 
years since the SSI program was created, substantial new 
Federal programs have been authorized to assist children with 
disabilities, including Federal, State and local funding of 
special education and expansion of Medicaid. The impact of 
these programs on cash needs of children with disabilities 
merits further investigation by Congress.
    

                  E. Effective Dates and Other Changes

Present law

    Not applicable.

House bill

    Changes apply to benefits for months beginning ninety or 
more days after enactment, without regard to whether 
regulations have been issued. Recipients of SSI cash benefits 
during the month of enactment who would lose eligibility under 
the House bill may continue to receive SSI benefits for up to 6 
months.

Senate amendment

    The Senate amendment changes apply to applicants for months 
beginning on or after the date of enactment, without regard to 
whether regulations have been issued. However, the Commissioner 
must issue necessary regulations within two months of 
enactment. For child SSI recipients who were eligible for SSI 
on the date of enactment but who would lose eligibility under 
the Senate amendment, the changes would not take effect until 
January 1, 1997. The Commissioner is to redetermine the 
eligibility of these persons within one year of enactment.

Conference agreement

    The conference agreement follows the Senate amendment with 
modification that the effective date for the two-tiered benefit 
system is January 1, 1997, for current recipients and new 
applications. The conferees agreed to require the Commissioner 
to report to Congress within 180 days regarding the progress 
made in implementing the SSI children's provisions.

                                 Notice

Present law

    Not applicable.

House bill

    Not later than one month after the date of enactment, the 
Commissioner must notify individuals whose eligibility for SSI 
benefits will terminate.

Senate amendment

    Within three months of enactment, the Commissioner must 
notify individuals whose eligibility for SSI will terminate.

Conference agreement

    The conference agreement follows the Senate amendment.

    New provision for administrative funds for the Social Security 
                             Administration

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    No provision.

Conference agreement

    The conferees recognize that implementation of the SSI 
provisions by the Social Security Administration is a big job 
and have provided $300 million to assist the agency meeting its 
obligations. The conferees are very mindful of the problems 
encountered by the Social Security Administration in the early 
1980s in conducting a large number of redeterminations and 
continuing disability reviews, and strongly urge the 
Commissioner to conduct the redeterminations and continuing 
disability reviews required in this bill in an orderly and 
careful manner.

         Block grants to States for children with disabilities

                         Entitlement to grants

Present law

    Not applicable.

House bill

    Each State that meets the requirements listed below for FY 
1997 or later years shall be entitled to receive a grant equal 
to the State's allotment for that fiscal year. The Commissioner 
of Social Security will make block grants to States for the 
purpose of providing specified medical and non-medical benefits 
for children who have an impairment which meets or equals an 
impairment specified in the Listing of Impairments. Grants are 
an entitlement to eligible States on behalf of qualifying 
children, not an entitlement to any such child.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the Senate amendment 
(i.e., no provision).

                              Requirements

Present law

    Not applicable.

House bill

    Each State must establish a program to provide block grant 
services. The State will submit to the Commissioner an 
application for the grant. In the application, the State agrees 
it must spend grant funds to provide authorized services 
designed to meet the unique needs of qualifying children. The 
application must also contain information, agreements, and 
assurances required by the Commissioner. In providing 
authorized services, States will make every reasonable effort 
to obtain payment for the services from other Federal or State 
programs that provide such services. States will expend the 
grant only to the extent that payments from other programs are 
not available.
    In order to receive a block grant under this section, the 
State must agree to maintain non-Federal spending for any 
purposes designed to meet the needs of qualifying children with 
physical or mental impairments. States have discretion to 
select the purposes for which the State expends non-Federal 
amounts, within the purpose of providing for the needs of 
qualifying children. The Consumer Price Index will be used to 
adjust for inflation in judging whether the State meets the 
maintenance of effort requirements in future years.
    No child who has an impairment which meets or equals an 
impairment specified in the Listing of Impairments will be 
denied the opportunity to apply for services and to have his or 
her case assessed to determine the child's service needs.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the Senate amendment 
(i.e., no provision).

                           Authority of State

Present law

      Not applicable.

House bill

      The following decisions are in the discretion of a State:
            (1) which authorized services to provide;
            (2) who among qualifying children receives 
        services; and
            (3) the number of services provided a qualifying 
        child and their duration.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the Senate amendment 
(i.e., no provision).

                          Authorized services

Present law

      Not applicable.

House bill

      The Commissioner shall issue regulations designating the 
purposes for which grants may be spent by States. The 
Commissioner must ensure that services on the list are designed 
to meet the unique needs of qualifying children that arise from 
their physical and mental impairments, that both medical and 
non-medical services are included, and that cash assistance is 
not available through the block grant.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the Senate amendment 
(i.e., no provision).

                           General provisions

Present law

      Not applicable.

House bill

      Necessary regulations are to be issued, but payments 
under the block grant must begin not later than January 1, 
1997, regardless of whether final rules have been issued.
      The value of the authorized services provided through the 
block grant cannot be taken into account in determining 
eligibility for, or the amount of, benefits or services under 
any Federal or Federally-assisted program. For the purposes of 
Medicaid, each qualifying child shall be considered to be a 
recipient of Supplemental Security Income benefits under this 
title.
      States are encouraged to use an existing delivery system 
to administer block grant services.
      States that do not participate in offering block grant 
services are not permitted to use social security numbers in 
the administration of any tax, public assistance, driver's 
license or motor vehicle registration law. (Because of the 
extreme duress this would impose on States, this is regarded as 
effectively a ``requirement.'')

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the Senate amendment 
(i.e., no provision).

                              Definitions

Present law

      Not applicable.

House bill

      A State's ``Allotment'' of block grant funds equals the 
product of 75 percent of the average cash SSI benefit in the 
State and the number of children in the State receiving non-
cash SSI benefits under this section.
      ``Authorized Service'' means each service authorized by 
the Commissioner.
      A ``Qualifying Child'' means an individual under 18 years 
of age who is eligible for cash benefits under this title by 
reason of disability; or an individual under 18 years of age 
who is eligible for SSI non-cash benefits as described above. 
The Commissioner will determine whether individuals meet the 
criteria to the eligible for block grant services.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the Senate amendment 
(i.e., no provision).

                             Effective date

Present law

      Not applicable.

House bill

      Block grants are available to eligible States beginning 
in FY 1997.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the Senate amendment 
(i.e., no provision).

   2. Eligibility redeterminations and continuing disability reviews 
                             (section 212)

     A. Continuing Disability Reviews Relating to Certain Children

Present law

      Federal law requires that SSI recipients be subject to a 
Continuing Disability Review (CDR) at least once every 3 years, 
except for recipients whose impairments are judged to be 
permanent. The Commissioner is required to conduct periodic 
CDRs of at least 100,000 disabled SSI recipients per year for a 
period of 3 years (i.e., FY 1996-1998) and report to Congress 
on CDRs for disabled SSI recipients no later than October 1, 
1998.

House bill

      In addition to the provisions of current law, at least 
once every 3 years the Commissioner must conduct CDRs for SSI 
benefits of children receiving benefits. For children who are 
eligible for benefits and whose medical condition is not 
expected to improve, the requirement to perform such reviews 
does not apply

Senate amendment

      Same as the House bill, with minor differences in 
wording. At the time of review the parent or guardian must 
present evidence demonstrating that the recipient is and has 
been receiving appropriate treatment for his or her disability.

Conference agreement

      The conference agreement generally follows the Senate 
amendment with modification requiring evidence of needed 
treatment for continued representative payee status.

B. Disability Eligibility Redeterminations Required for SSI Recipients 
                       Who Attain 18 Years of Age

Present law

      Current law also specifies that the Commissioner must 
reevaluate under adult disability criteria the eligibility of 
at least one-third of SSI children who turn age 18 in each of 
the fiscal years 1996, 1997, and 1998 (the CDR must be 
completed before these children reach age 19) and report to 
Congress no later than October 1, 1998, on CDRs for disabled 
children.

House bill

      The eligibility for all children qualifying for SSI 
benefits must be redetermined using the adult criteria within 
one year after turning 18 years of age. The review will be 
considered a substitute for any other review required under the 
changes made in this section.
      Not later than October 1, 1998, the Commissioner of 
Social Security must submit to the House Committee on Ways and 
Means and the Senate Committee on Finance a report on 
disability reviews for children enrolled in SSI.
      The ``minimum number of reviews'' and the ``sunset'' 
provisions of section 207 of the Social Security Independence 
and Program Improvements Act of 1994 are eliminated.

Senate amendment

      Same as the House bill with differences in wording. Like 
the House bill, the Senate amendment repeals section 207 of the 
Social Security Independence and Program Improvements Act of 
1994.

Conference agreement

      The conference agreement generally follows the House bill 
with modification that the Commissioner does not have to submit 
a report to Congress on disability reviews for SSI children.

  C. Continuing Disability Review Required for Low Birth Weight Babies

Present law

      Not applicable.

House bill

      A review for continuing disability must be performed for 
all children qualifying for SSI due to low birth weight when 
the child has received benefits for 12 months.

Senate amendment

      A review must be conducted 12 months after the birth of a 
child whose low birth weight is a contributing factor to the 
child's disability. At the time of review, the parent or 
guardian must present evidence demonstrating that the recipient 
is and has been receiving appropriate treatment for his or her 
disability.

Conference agreement

      The conference agreement follows the Senate amendment 
with modification requiring evidence of needed treatment for 
continued representative payee status.

                           D. Effective Date

Present law

      Not applicable.

House bill

      This section applies to benefits for months beginning 
ninety or more days after enactment, regardless of whether 
regulations have been issued.

Senate amendment

      Applies to benefits for months beginning on or after the 
date of enactment, regardless of whether regulations have been 
issued.

Conference agreement

      The conference agreement follows the Senate amendment.

        3. Additional accountability requirements (section 213)

        A. Disposal Of Resources for Less Than Fair Market Value

Present law

      No provision. There is a transfer of assets provision in 
Medicaid law that is similar to H.R. 4 provision (Sec. 1917(c) 
of the Social Security Act).

House bill

      The House bill delays eligibility for any child applicant 
whose parents or guardians, in order to qualify a child for 
benefits, dispose of assets for less than fair market value 
within 36 months of the date of application. The provision 
stipulates that any assets in a trust in which the child (i.e., 
parent or representative payee) has control shall be considered 
assets of the child and subject to the 36-month ``look-back'' 
rule. The delay (in months) is equal to the amount of assets 
divided by the SSI standard benefit.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the House bill with 
technical modifications.

                  B. Treatment of Assets Held in Trust

      This section is included in the law as a result of 
technical changes submitted by the Social Security 
Administration.

                  C. Requirement to Establish Account

Present law

      Not applicable.

House bill

      No provision.

Senate amendment

      At the request of the representative payee (i.e., the 
parent), the Commissioner of Social Security may pay any lump 
sum payment for the benefit of a child into a dedicated savings 
account for the purpose of covering the costs of needs related 
to the child's disability and/or increasing the child's 
independence. The dedicated savings account could only be used 
to purchase education and job skills training, special 
equipment or housing modifications related to the child's 
disability, and appropriate therapy and rehabilitation. The 
funds in these accounts would not be counted as resources in 
determining SSI eligibility. This provision would take effect 
upon enactment.

Conference agreement

      The conference agreement generally follows the Senate 
amendment with modification requiring the dedicated savings 
account (instead of it being optional at the request of the 
representative payee), expanding the list of allowable 
expenses, and requiring the Commissioner to establish a system 
for accountability monitoring.

                         Conforming amendments

Present law

      Not applicable.

House bill

      The House bill makes a number of conforming amendments, 
reflecting the addition of non-cash SSI benefits as described 
above.

Senate amendment

      No provision.

Conference agreement

      The conference agreement follows the Senate Amendment 
(i.e. no provision).

          Improvements to disability evaluations for children

Present law

      Not applicable.

House bill

      No provision.

Senate amendment

    The Senate amendment directs the Commissioner of Social 
Security, within sixty days of enactment, to issue a request 
for comments in the Federal Register regarding improvements in 
the disability evaluation and determination procedures for 
children under age 18. The Commissioner must review the 
comments and issue regulations implementing changes within 18 
months after enactment

Conference agreement

    The conference agreement follows the House bill (i.e., no 
provision).

   Temporary eligibity for cash benefits for poor disabled children 
 residing in States applying alternative income eligibility standards 
                             under medicaid

Present law

    States generally are required to provide Medicaid coverage 
for recipients of SSI. However, States may use more restrictive 
eligibility standards for Medicaid than those for SSI if they 
were using those standards on January 1, 1972 (before 
implementation of SSI). States that have chosen to apply at 
least one more restrictive standard are known as ``section 
209(b)'' States, after the section of the Social Security 
Amendments of 1972 (P.L. 92-603) that established the option. 
These States may vary in their definition of disability, or in 
their standards related to income or resources. There are 12 
section 209(b) States: Connecticut, Hawaii, Illinois, Indiana, 
Minnesota, Missouri New Hampshire, North Carolina, North 
Dakota, Ohio, Oklahoma, and Virginia.

House bill

    The House bill provides for temporary eligibility for cash 
SSI benefits (through the end of FY 1996) for children who live 
in States that apply alternative income eligibility standards 
under Medicaid (also known as ``209(b)'' States).

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the Senate amendment 
(i.e., no provision).

Present law

    Federal law stipulates that when an individual enters a 
hospital or other medical institution in which more than half 
of the 
bill is paid by the Medicaid program, his or her monthly SSI 
benefit standard is reduced to $30 per month. This personal 
needs allowance is intended to pay for small personal expenses, 
with the cost of maintenance and medical care provided by the 
Medicaid program.

House bill

    Cash SSI payments to institutionalized children would be 
reduced for those whose medical costs are covered by private 
insurance.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

    Additional accountability requirements for parents or guardians

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Senate amendment requires a disabled child's 
representative payee (usually the parent) to document 
expenditures. These expenditures would be subject to increased 
review by the Social Security Administration. Effective for 
benefits paid after enactment.

Conference agreement

    The conference agreement follows the House bill (i.e., no 
provision).

                      5. Regulations (section 21)

Present law

    Not applicable.

House bill

    The Commissioner of Social Security and the Secretary of 
HHS will prescribe necessary regulations within three months 
after enactment of this Act.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

Examination of mental listing used to determine eligibility of children 
                for SSI benefits by reason of disability

Present law

    Section 202 of the Social Security Independence and Program 
Improvements Act of 1994 established a Childhood Disability 
Commission to study the desirability and methods of increasing 
the extent to which benefits are used in the effort to assist 
disabled children in achieving independence and engaging in 
substantial gainful activity. The Commission was also charged 
with examining the effects of the SSI program on disabled 
children and their families.

House bill

    The Childhood Disability Commission must review the mental 
listing used by the Social Security Administration to determine 
child SSI eligibility. The Commission should conduct this 
investigation to ensure that the criteria in these listings are 
appropriate and that SSI eligibility is limited to children 
with serious disabilities for whom Federal assistance is 
necessary to improve the child's condition or quality of life.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the Senate amendment 
(i.e., no provision) due to the Childhood Disability Commission 
having completed their final report.

Limitation on payments to Puerto Rico, the U.S. Virgin Islands and Guam 
         under programs of aid to the aged, blind, or disabled

    See description in section 108 of title I of the conference 
agreement.

               Subtitle C--State Supplementation Programs

 1. Repeal of Maintenance of Effort Requirement Applicable to Optional 
    State Programs for Supplementation of SSI Benefits (Section 221)

Present law

    Since the beginning of the SSI program, States have had the 
option to supplement (with State funds) the Federal SSI 
payment. The purpose of section 1618 was to encourage States to 
pass along to SSI recipients the amount of any Federal SSI 
benefit increase. Under section 1618, a State that is found to 
be not in compliance with the ``pass along/maintenance of 
effort provision'' is subject to loss of its Medicaid 
reimbursements. Section 1618 allows States to comply with the 
``pass along/maintenance of effort'' provision by either 
maintaining their State supplementary payment levels at or 
above 1983 levels or by maintaining total annual expenditures 
for supplementary payments (including any Federal cost-of-
living adjustment) at a level at least equal to their prior 12-
month period, provided the State was in compliance for that 
period. In effect, section 1618 requires that once a State 
elects to provide supplementary payments it must continue to do 
so. [Sec. 1618 of the Social Security Act]

House bill

    The House bill repeals the maintenance of effort 
requirements (Sec. 1618) applicable to optional State programs 
for supplementation of SSI benefits effective date of 
enactment.

Senate amendment

    Similar to the House bill.

Conference agreement

    The conference agreement follows the Senate amendment with 
modification that the effective date is the date of enactment.

          Limited Eligibility of Noncitizens for SSI Benefits

    See description in title IV of the conference agreement.

   Subtitle D--Studies Regarding Supplemental Security Income Program

                 1. Annual Report on SSI (Section 231)

Present law

    To date, the Department of Health and Human Services and 
now the Social Security Administration have collected, 
compiled, and published annual and monthly SSI data, but 
Federal law does not require an annual report on the SSI 
program.

House bill

    No provision.

Senate amendment

    The Senate amendment requires the Commissioner of Social 
Security to prepare and provide to the President and the 
Congress an annual report on the SSI program, which includes 
specified information and data. The report is due May 30 of 
each year.

Conference agreement

    The conference agreement follows the Senate amendment.

       2. Study of Disability Determination Process (Section 232)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    Within 90 days of enactment, the Commissioner must contract 
with the National Academy of Sciences or another independent 
entity to conduct a comprehensive study of the disability 
determination process for SSI and SSDI. The study must examine 
the validity, reliability and consistency with current 
scientific standards of the Listings of Impairments cited 
above.
    The study must also examine the appropriateness of the 
definitions of disability (and possible alternatives) used in 
connection with SSI and SSDI; and the operation of the 
disability determination process, including the appropriate 
method of performing comprehensive assessments of individuals 
under age 18 with physical or mental impairments.
    The Commissioner must issue interim and final reports of 
the findings and recommendations of the study within 18 months 
and 24 months, respectively, from the date of contract for the 
study.

Conference agreement

    The conference agreement follows the Senate amendment.

            3. General Accounting Office Study (Section 233)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Senate amendment requires the General Accounting Office 
to study and report on the impact of title II of the Senate 
amendment on the SSI program by January 1, 1998.

Conference agreement

    The conference agreement follows the Senate amendment with 
modification that the study also include extra expenses 
incurred by families of children receiving SSI that are not 
covered by other Federal, State, or local programs.

      Subtitle E--National Commission on the Future of Disability

                     1. Establishment (Section 241)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission is established and expenses are to be paid 
from funds appropriated to the Social Security Administration.

Conference Agreement

    The conference agreement follows the Senate amendment with 
modification that there are authorized to be appropriated such 
sums as are necessary to carry out the purpose of the 
Commission.

                        2. Duties (Section 242)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission must study all matters related to the 
nature, purpose and adequacy of all Federal programs for the 
disabled, and especially SSI and SSDI.
    The Commission must examine: projected growth in the number 
of individuals with disabilities and the implications for 
program planning; possible performance standards for disability 
programs; the adequacy of Federal rehabilitation research and 
training; and the adequacy of policy research available to the 
Federal government and possible improvements.
    The Commission must submit to the President and the proper 
Congressional committees recommendations and possible 
legislative proposals effecting needed program changes.

Conference agreement

    The conference agreement follows the Senate amendment.

                      3. membership (section 243)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission is to be composed of 15 members, appointed 
by the President and Congressional leadership. Members are to 
be chosen based on their education, training or experience, 
with consideration for representing the diversity of 
individuals with disabilities in the U.S.
    The Comptroller General must serve as an ex officio member 
of the Commission to advise on the methodology of the study. 
With the exception of the Comptroller General, no officer or 
employee of any government may serve on the Commission.
    Members are to be appointed not later than 60 days after 
enactment. Members serve for the life of the Commission, which 
will be headquartered in D.C. and meet at least quarterly.
    The Senate amendment includes a number of specific 
requirements on the Commission regarding quorums, the naming of 
chairpersons, member replacement, and benefits.

Conference agreement

    The conference agreement follows the Senate amendment with 
modification deleting the Comptroller General as a ex officio 
member and deleting the prohibition against officer or employee 
of any government being appointed to serve on the Commission. 
The conferees added that the Commission membership will also 
reflect the general interest of the business and taxpaying 
community, both of which are often impacted by Federal 
disability policy.

              4. Staff and Support Services (Section 244)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission will have a director, appointed by the 
Chair, and appropriate staff, resources, and facilities.

Conference agreement

    The conference agreement follows the Senate amendment.

                        5. Powers (Section 245)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission may conduct public hearings and obtain 
information from Federal agencies necessary to perform its 
duties.

Conference agreement

    The conference agreement follows the Senate amendment.

                        6. Reports (Section 246)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission must issue an interim report to Congress and 
the President not later than 1 year prior to terminating. A 
final public report must be submitted prior to termination.

Conference agreement

    The conference agreement follows the Senate amendment.

                      7. Termination (Section 247)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission will terminate 2 years after first having 
met and named a chair and vice chair.

Conference agreement

    The conference agreement follows the Senate amendment.

                 Subtitle F--Retirement Age Eligibility

1. Eligibility for SSI Benefits Based on Social Security Retirement Age 
                             (Section 251)

Present law

    The SSI program guarantees a minimum level of cash income 
to all aged, blind, or disabled persons with limited resources. 
The SSI program defines ``aged'' as persons age 65 and older.

House bill

    No provision.

Senate amendment

    The Senate amendment deletes references to age 65 and 
instead defines as ``aged'' those persons who reach 
``retirement age'' as defined by the Social Security program. 
The Social Security ``retirement age''--the age at which 
retired workers receive benefits that are not reduced for 
``early retirement''--gradually will rise from 65 to 67. It 
will do so in two steps. First, the retirement age will 
increase by 2 months for each year that a person was born after 
1937, until it reaches age 66 for those born in 1943 (i.e., 
those who attain age 66 in 2009). Second, it will again 
increase by 2 months for each year that a person was born after 
1954 until it reaches age 67 for those born after 1959.

Conference agreement

    The conference agreement follows the Senate amendment.

                  Title III. Child Support Enforcement

     Subtitle A--Eligibility for Services; Distribution of Payments

                      1. References (Section 300)

Present law

    No provision.

House bill

    Any reference in this title expressed in terms of an 
amendment to or repeal of a section or other provision is made 
to the Social Security Act.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

   2. State Obligation to Provide Child Support Enforcement Services 
                             (Section 301)

Present law

    States are required to establish paternity for children 
born out of wedlock if they are recipients of AFDC or Medicaid, 
and to obtain child and spousal support payments from 
noncustodial parents of children receiving AFDC, Medicaid 
benefits, or foster care maintenance payments. States must 
provide child support collection or paternity determination 
services to persons not otherwise eligible if the person 
applies for services. Federal law requires States to cooperate 
with other States in establishing paternity (if necessary), 
locating absent parents, collecting child support payments, and 
carrying out other child support enforcement functions.

House bill

    States must provide services, including paternity 
establishment and establishment, modification, or enforcement 
of support obligations, for children receiving benefits under 
part A (Temporary Assistance for Needy Families block grant-
TANF), part B (child protection block grant), Medicaid, and any 
child of an individual who applies for services. States must 
enforce support obligations with respect to children in their 
caseload and the custodial parents of such children. States 
must also make child support enforcement services available to 
individuals not residing within the State on the same terms as 
to individuals residing within the State. The provision also 
makes minor technical amendments to SSA section 454.

Senate amendment

    Similar to House provision with one exception: instead of 
reference to part B as in House bill, reference is to part E--
foster care and adoption assistance.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment except the House recedes by agreeing that States be 
required to provide child support services only to children 
actually receiving foster care payments.

  3. Distribution of Child Support Collections (Sections 302 and 374)

                  A. Distribution of Collected Support

Present law

    To receive AFDC benefits, a custodial parent must assign to 
the State any right to collect child support payments. This 
assignment covers current support and any arrearages, and lasts 
as long as the family receives AFDC. Federal law requires that 
child support collections be distributed as follows: First, up 
to the first $50 in current support is paid to the AFDC family 
(a ``disregard'' that does not affect the family's AFDC benefit 
or eligibility status). Second, the Federal and State 
governments are reimbursed for the AFDC benefit paid to the 
family in that month. Third, if there is money left, the family 
receives it up to the amount of the current month's child 
support obligation. Fourth, if there is still money left, the 
State keeps it to reimburse itself for any arrearages owed to 
it under the AFDC assignment (with appropriate reimbursement of 
the Federal share of the collection to the Federal government). 
If no arrearages are owed the State, the money is used to pay 
arrearages to the family; such moneys are considered income 
under the AFDC program and would reduce the family's AFDC 
benefit.

House bill

    To receive funds from the Temporary Assistance for Needy 
Families (TANF) block grant, custodial parents must assign to 
the State their right to child support payments. The bill ends 
the $50 child support disregard to (TANF) families. Families 
receiving cash assistance--States are given the option of 
passing the entire child support payments through to families. 
If States elect this option, they must pay the Federal share of 
the collection to the Federal government. Families that 
formerly received cash assistance--Current child support 
payments go to the family. Payments on arrearages that accrued 
before or after the custodial parent received cash assistance 
are paid to the family first if the family leaves welfare. Only 
after all arrearages owed to the custodial parent and children 
have been repaid are arrearages owed to the State and Federal 
government repaid. Payments on arrearages that accrued while 
the family received assistance must be retained by the State. 
The State is required to keep the State share of the collected 
amount, and pay to the Federal government the Federal share of 
the amount collected (to the extent necessary to reimburse 
amounts paid to the family as cash assistance). As a general 
rule, States must pay to the Federal government the Federal 
share of child support collections for parents on the Temporary 
Family Assistance program. This share is calculated using the 
State's Medicaid match rate in effect in 1995 or in subsequent 
years, whichever is greater. Families that never received cash 
assistance--All child support payments go directly to the 
family.

Senate amendment

    Any rights to child support that were assigned to the State 
before the effective date of the amendment are to remain so 
assigned. Gives States the option of requiring TANF applicants 
and recipients to assign to the State their rights to child 
support payments. The amendment eliminates references (in both 
the TANF block grant title of the amendment and the CSE title) 
to the $50 child support disregard, but does not explicitly 
eliminate the $50 child support disregard. Families receiving 
cash assistance--States are given the option of passing the 
entire child support payment through to families. If States 
elect this option, they must pay the Federal share of the 
collection to the Federal government. Families that formerly 
received cash assistance--Current child support payments go to 
the family. Payments on arrearages that accrued after the 
custodial parent left welfare are paid to the family. With 
respect to payments on arrearages that accrued before or while 
the family received assistance, the State may retain all or 
part of the State share, and if the State does so, it must 
retain and pay to the Federal Government the Federal share (to 
the extent the amount retained does not exceed the cash 
assistance paid to the family). The Federal share is calculated 
using the State's Medicaid match rate in effect in 1995 or in 
subsequent years, whichever is greater. Families that never 
received cash assistance--All child support payments go 
directly to the family. In addition, in the case of a family 
receiving cash assistance from an Indian tribe, the child 
support collection is to be distributed according to the 
agreement specified in the State plan.

Conference agreement

    The conference agreement modifies the House bill and Senate 
amendment as follows: (1) the $50 pass-through is ended; (2) 
beginning October 1, 1997, arrearages that accumulate during 
the period after the family leaves welfare are paid to the 
family prior to any payments to the State for assigned support; 
and (3) beginning October 1, 2000, arrearages that accumulated 
during the period before the custodial parent went on welfare 
are also paid to the family prior to any payments to the State 
for assigned support. (This includes pre-welfare arrearages 
that were assigned to the State on or after October 1, 1997 but 
that were not collected prior to October 1, 2000.) An exception 
is made for any collections through the tax refund intercept 
program, which are paid to the State first, up to the amount of 
the remaining assigned support, prior to any payments to the 
family.
    When fully implemented in 2000, the new order of assignment 
and distribution of arrearage payments, according to whether 
collections are made via the tax intercept or through any other 
method, will be as follows:
            Tax intercept: First, post-welfare arrearages to 
        State; Second, pre-welfare arrearages to State; Third, 
        post-welfare arrearages to family; and Fourth, pre-
        welfare arrearages to family.
            Other methods: First, post-welfare arrearages to 
        family; Second, pre-welfare arrearages to family; 
        Third, post-welfare arrearages to State; and Fourth, 
        pre-welfare arrearages to State.
    Conferees also agreed that if the amount of pre-welfare 
arrearages paid to the family exceeded the amount saved by a 
given State by ending the $50 passthrough and by other methods 
of improving collections contained in this legislation, the 
Federal government will pay that State an amount equal to the 
difference between pre-welfare arrearage payments to family and 
State savings caused by this legislation.
    To further improve child support collections, conferees 
agree to close a loophole in the bankruptcy code that allows 
courts to dismiss child support debts that accumulated before a 
child support order was legally established (see Section 374).

 B. Continuation of Service for Families Ceasing to Receive Assistance

Present law

    Federal law requires States to continue providing child 
support enforcement services to AFDC, Medicaid, and foster care 
families who no longer qualify for AFDC benefits on the same 
basis as in the case of those who receive benefits or services, 
except that no application or request for services is required.

House bill

    When families leave the TANF program, States are required 
to continue providing child support enforcement services to 
them subject to the same conditions and on the same basis as in 
the case of individuals who receive assistance.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                           C. Effective Date

Present law

    No provision.

House bill

    The effective date for provisions relating to distribution 
of support collected for families who formerly received cash 
assistance is October 1, 1995. For all others it is October 1, 
1999.

Senate amendment

    The effective date for distribution of support collected 
for families receiving cash assistance is October 1, 1999. The 
effective date for the clerical amendments and provisions 
relating to the distribution of child support collected for 
families who formerly received cash assistance or who never 
received cash assistance is October 1, 1995.

Conference agreement

    The effective date for ending the $50 passthrough is 
October 1, 1996 or sooner at State option. The effective date 
for implementing the new distribution rules applying to post-
welfare arrearages is October 1, 1997; for pre-welfare 
arrearages, the effective date is October 1, 2000.

                  4. privacy safeguards (section 303)

Present law

    Federal law limits the use or disclosure of information 
concerning recipients of Child Support Enforcement Services to 
purposes connected with administering specified Federal welfare 
programs.

House bill

    States must implement safeguards against unauthorized use 
or disclosure of information related to proceedings or actions 
to establish paternity or to enforce child support. These 
safeguards must include prohibitions on release of information 
where there is a protective order or where the State has reason 
to believe a party is at risk of physical or emotional harm 
from the other party. This provision is effective October 1, 
1997.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

          5. rights to notification and hearing (section 304)

Present law

    Most States have procedural due process requirements with 
respect to wage withholding. Federal law requires States to 
carry out withholding in full compliance with all procedural 
due process requirements of the State.

House bill

    No provision.

Senate amendment

    Parties to child support cases under Title IV-D must 
receive notice of proceedings in which child support is 
established or modified and must receive a copy of orders 
establishing or modifying child support within 14 days of 
issuance. Individuals served by the child support program must 
also have access to a fair hearing or other complaint 
procedures. These rules and procedures become effective on 
October 1, 1997.

Conference agreement

    The conference agreement is a compromise between the Senate 
and House provisions. The House recedes on the Senate 
requirement that parties be informed of hearings; the Senate 
recedes on the requirement for hearings in certain cases.

                  Subtitle B--Locate and Case Tracking

                  6. state case registry (section 311)

                              A. Contents

Present law

    No provision.

House bill

    The automated State Case Registry must contain a record on 
each case in which services are being provided by the State 
agency, as well as each support order established or modified 
in the State on or after October 1, 1998.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                     B. Linking of Local Registries

Present law

    No provision.

House bill

    The Registry may be established by linking local case 
registries of support orders through an automated information 
network.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                  C. Use of Standardized Data Elements

Present law

    No provision.

House bill

    The registry record will contain data elements on both 
parents, such as names, Social Security numbers and other 
uniform identification numbers, dates of birth, case 
identification numbers, and any other data to be Secretary may 
require.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                           D. Payment Records

Present Law

    Federal law requires that wage withholding be administered 
by a public agency capable of documenting payments of support 
and tracking and monitoring such payments.

House bill

    Each case record will contain the amount of support owed 
under the order and other amounts due or overdue, any amounts 
that have been collected and distributed, the birth date of any 
child for whom the order requires the provision of support, and 
the amount of any lien imposed by the State.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                       E. Updating and Monitoring

Present law

    Federal law requires that child support orders be reviewed 
and adjusted, as appropriate, at least once every 3 years.

House bill

    The State agency operating the registry will promptly 
establish and maintain and regularly update case records in the 
registry with respect to which services are being provided 
under the State plan. Updating will be based on administrative 
actions and administrative and judicial proceedings and orders 
relating to paternity and support, as well as information 
obtained from comparisons with Federal, State, and local 
sources of information, information on support collections and 
distributions, and any other relevant information.

Senate amendment

    Identical provision.

Conference agreement.

    The conference agreement follows the House bill and the 
Senate amendment

            F. Information Comparisons and Other Disclosures

Present law

    No provision.

House bill

    The State automated system will be used to extract data for 
purposes of sharing and matching with Federal and State data 
bases and locator services, including the Federal Case Registry 
of Child Support Orders, the Federal Parent Locator Service, 
Temporary Assistance for Needy Families and Medicaid agencies, 
and intra- and interstate information comparisons.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

    7. collection and disbursement of support payments (section 312)

                       A. State Disbursement Unit

Present law

    No provision. But States may provide that, at the request 
of either parent, child support payments be made through the 
child support enforcement agency or the agency that administers 
the State's income withholding system regardless of whether 
there is an arrearage. States must charge the parent who 
requests child support services a fee equal to the cost 
incurred by the State for these services, up to a maximum of 
$25 per year.

House bill

    By October 1, 1998, State child support agencies are 
required to operate a centralized, automated unit for 
collection and disbursement of payments on child support orders 
enforced by the child support agency. The specifics of how 
States will establish and operate their State Disbursement Unit 
must be outlined in the State plan.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                              B. Operation

Present law

    No provision.

House bill

    The State Disbursement Unit must be operated directly by 
the State agency, by two or more State agencies under a 
regional cooperative agreement, or by a contractor responsible 
directly to the State agency.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                 C. Linking of Local Disbursement Units

Present law

    No provision.

House bill

    The State Disbursement Unit may be established by linking 
local disbursement units through an automated information 
network. The Secretary must agree that the system will not cost 
more nor take more time to establish than a centralized system. 
In addition, employers shall be given one location per State to 
which income withholding is sent.

Senate amendment

    Similar provision except that whereas the House requires 
only that the linked local system not cost more or take more 
time to establish than the single State system, the Senate adds 
the condition that the local system also cannot take more time 
to operate.

Conference agreement

    The House recedes to the Senate provision allowing States 
to establish their State Disbursement Unit by linking local 
disbursement units only if linking units does not cost more 
money nor take more time to establish and to operate.

                         D. Required Procedures

Present law

    No provision.

House bill

    The Disbursement Unit will be used to collect and disburse 
support payments, to generate orders and notices of withholding 
to employers, to keep an accurate identification of payments, 
to promptly distribute money to custodial parents or other 
States, and to furnish parents with a record of the current 
status of support payments. The Unit shall use automated 
procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, efficient, and 
economical.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                       E. Timing of Disbursements

Present law

    No provision.

House bill

    The Disbursement Unit must distribute all amounts payable 
within 2 business days after receiving money and identifying 
information from the employer or other source of periodic 
income, if sufficient information identifying the payee is 
provided.

Senate amendment

    Similar to House provision, except permits the retention of 
arrearages in the case of appeals until they are resolved.

Conference agreement

    The Conference agreement follows the House bill and the 
Senate amendment except that the House recedes to the Senate 
requirement that States be allowed to retain arrearages in the 
case of appeals until they are resolved.

                       F. Use of Automated System

Present law

    No provision.

House bill

    State must use their automated system to facilitate 
collection and disbursement including at least:
    (1) transmission of orders and notices to employers within 
2 days after receipt of the withholding notice;
    (2) monitoring to identify missed payments of support; and
    (3) automatic use of enforcement procedures when payments 
are missed.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                           G. Effective Date

Present law

    No provision.

House bill

    This section of the bill will go into effect on October 1, 
1998.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House and the Senate.

             8. state directory of new hires (section 313)

                       A. State Plan Requirement

Present law

    No provision.

House bill

    State plans must include the provision that by October 1, 
1997 States will operate a Directory of New Hires (as outlined 
below).

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                            B. Establishment

Present law

    No provision.

House bill

    States are required to establish a State Directory of New 
Hires to which employers and labor organizations in the State 
must furnish a report for each newly hired employee, unless 
reporting could endanger the safety of the employee or 
compromise an ongoing investigation or intelligence mission as 
determined by the head of an agency.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment with the clarification that States that 
already have new hire reporting laws may continue to follow the 
provisions of their own law until October 1, 1997, at which 
time States must conform to Federal law.

                        C. Employer Information

Present law

    No provision.

House bill

    Employers must furnish to the State Directory of New Hires 
the name, address, and Social Security number of every new 
employee and the name and identification number of the 
employer. Multistate employers may report to the State in which 
they have the most employees.

Senate amendment

    Similar to House provision, but allows multistate employers 
to report to the single State they designate. The employer must 
notify the DHHS Secretary as to the name of the designated 
State.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment except that the House receedes to the Senate 
provision allowing multistate employers to report to the State 
of their choice. Employers must notify the Secretary of the 
name of the designated State.

                          D. Timing of Report

Present law

    No provision.

House bill

    Employers must report new hire information within 15 days 
of the hire or on the date the employee first receives wages.

Senate amendment

    Employer must report new hire information within 30 days of 
the hire or if the employer reports by magnetic or electronic 
means, the employer can report by the first business day of the 
week following the date on which the employee first receives 
wages.

Conference agreement

    Conferees agree that employers must report new hire 
information within 20 days of the date of hire.
    Employers that report new hires electronically or by 
magnetic tape must file twice per month; reports must be 
separated by not less than 12 days and not more than 16 days.

                     E. Reporting Format and Method

Present law

    No provision.

House bill

    The report required in this section will be made on a W-4 
form or the equivalent, and can be transmitted magnetically, or 
by first class mail.

Senate amendment

    Similar to House provision, but only allows the report to 
be filed on a W-4 form, not the equivalent.

Conference agreement

    The conferees agree to follow both the House and Senate 
provisions except that the Senate recedes to the House 
provision allowing employers, at their option, to use an 
equivalent form. The decision of which reporting method to use 
is entirely up to employers.

           F. Civil Money Penalties on Noncomplying Employers

Present law

    In general, no provision.
    Section 1128 of the Social Security Act is an antifraud 
provision which excludes individuals and entities that have 
committed fraud from participation in medicare and State health 
care programs. Section 1128A pertains to civil monetary 
penalties and describes the appropriate procedures and 
proceedings for such penalties.

House bill

    An employer failing to make a timely report is subject to a 
$25 fine for each unreported employee. There is also a $500 
penalty on employers for every employee for whom they do not 
transmit a W-4 form if, under the laws of the State, there is 
shown to be a conspiracy between the employer and the employee 
to prevent the proper information from being filed.
    The House bill makes several but not all provisions of 
section 1128 applicable to employers that violate reporting 
requirements.

Senate amendment

    States have the option of setting a civil money penalty 
which shall be not less than $25 or $500 if, under State law, 
the failure is the result of a conspiracy between the employer 
and employee. The Senate amendment does not make any provisions 
of section 1128 applicable to employers.

Conference agreement

    The conference agreement follows both the House and Senate 
provisions except that the House recedes to the Senate 
provision of making the penalties a State option. The 
application of penalties from section 1128 is dropped.

                    G. Entry of New Hire Information

Present law

    No provision.

House bill

    No provision.

Senate amendment

    New hire information must be entered in the State data base 
within five business days of receipt from employer.

Conference agreement

    The House recedes to the Senate requirement of requiring 
States to enter New Hire information in their data base within 
five business days.

                       H. Information Comparisons

Present law

    No provision.

House bill

    By October 1, 1997, each State Directory of New Hires must 
conduct automated matches of the Social Security numbers of 
reported employees against the Social Security numbers of 
records in the State Case Registry being enforced by the State 
agency and report the name, Social Security number, and 
employer identification number on matches to the State child 
support agency.

Senate amendment

    Similar to House provision, except requires comparisons to 
begin by October 1, 1998 rather than 1997.

Conference agreement

    Conferees agreed to follow the House and Senate provisions 
but to compromise on the date by which comparisons must begin 
by adopting a May 1, 1998 effective date.

                     I. Transmission of Information

Present law

    No provision.

House bill

    Within two business days of the entry of data in the 
registry, the State must transmit a withholding order directing 
the employer to withhold wages in accord with the child support 
order. Within four days, the State Directory of New Hires must 
furnish employee information to the National Directory of New 
Hires for matching with the records of other State case 
registries. The State Directory of New Hires must also report 
quarterly to the National Directory of New Hires information on 
wages and unemployment compensation taken from the quarterly 
report to the Secretary of Labor now required by Title III of 
the Social Security Act.

Senate amendment

    Similar to House provision, except requires State Directory 
to report to the National Directory within two, rather than 
four, days.

Conference agreement

    The conference agreement is to follow the House and Senate 
provisions and to compromise on the reporting date by allowing 
States three days to report to the National Directory of New 
Hires.

                 J. Other Uses of New Hire Information

Present law

    No provision.

House bill

    The State child support agency must use the new hire 
information for purposes of establishing paternity as well as 
establishing, modifying, and enforcing child support 
obligations. New hire information (pursuant to section 1137 of 
the Social Security Act) must also be disclosed to the State 
agency administering the Temporary Assistance for Needy 
Families, Medicaid, Unemployment Compensation, Food Stamp, SSI, 
and territorial cash assistance programs for income eligibility 
verification, and to State agencies administering unemployment 
and workers' compensation programs to assist determinations of 
the allowability of claims.

Senate amendment

    Similar to House provision, except requires State and local 
government agencies to be included in quarterly wage reporting 
unless the agency performs intelligence or counterintelligence 
functions and it is determined that wage reporting could 
endanger the safety of the employee or compromise an ongoing 
investigation or intelligence mission.
    Conference agreement
    The conference agreement allows the House and Senate 
provisions except that the House recedes to the Senate 
provision allowing State and local government agencies to 
exempt employees doing intelligence or counterintelligence work 
whose safety might be compromised by the reporting.

       9. amendments concerning income withholding (section 314)

Present law

    Since November 1, 1990, all new or modified child support 
orders that were being enforced by the State's child support 
enforcement agency have been subject to immediate income 
withholding. If the noncustodial parent's wages are not subject 
to income withholding (pursuant to the November 1, 1990 
provision), such parent's wages would become subject to 
withholding on the date when support payments are 30 days past 
due. Since January 1, 1994, the law has required States to use 
immediate income withholding for all new support orders, 
regardless of whether a parent has applied for child support 
enforcement services. There are two circumstances in which 
income withholding does not apply: (1) one of the parents 
demonstrates and the court or administrative agency finds that 
there is good cause not to do so, or (2) a written agreement is 
reached between both parents which provides for an alternative 
arrangement. States must implement procedures under which 
income withholding for child support can occur without the need 
for any amendment to the support order or for any further 
action by the court or administrative entity that issued the 
order. States are also required to implement income withholding 
in full compliance with all procedural due process requirements 
of the State, and States must send advance notice to each 
nonresident parent to whom income withholding applies (with an 
exception for some State that had income withholding before 
enactment of this provision that met State due process 
requirements). States must extend their income withholding 
systems to include out-of-State support orders.

House bill

    States must have laws providing that all child support 
orders issued or modified before October 1, 1996, which are not 
otherwise subject to income withholding, will become subject to 
income withholding immediately if arrearages occur, without the 
need for judicial or administrative hearing. State law must 
also allow the child support agency to execute a withholding 
order through electronic means and without advance notice to 
the obligor. Employers must remit to the State disbursement 
unit income withheld within two working days after the date 
such amount would have been paid or credited to the employee.

Senate amendment

    Similar to House provision, but requires all child support 
orders which are not part of the State IV-D program to be 
processed through the State disbursement unit. In addition, 
States must notify noncustodial parents that income withholding 
has commenced and inform them of procedures for contesting 
income withholding.

Conference agreement

    The conference agreement follows the House and the Senate 
provisions except that the House recedes to the Senate 
provision requiring all child support orders which are not part 
of the State IV-D program to be processed through the State 
disbursement unit. In addition, States must notify noncustodial 
parents that income withholding has commenced and inform them 
of procedures for contesting income withholdng.

     10. Locator information from Interstate Networks (section 315)

Present law

No provision.

House bill

    All State and the Federal Child Support Enforcement 
agencies must have access to the motor vehicle and law 
enforcement locator systems of all States.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment

   11. Expansion of the Federal Parent Locator Service (Section 316)

         A. Expanded Authority to Locate Individuals and Assets

Present law

    The law requires that the Federal Parent Locator Service 
(FPLS) be used to obtain and transmit information about the 
location of any absent parent when that information is to be 
used for the purpose of enforcing child support.

House bill

    The purposes of the Federal Parent Locator Service are 
expanded. For the purposes of establishing parentage, 
establishing support orders or modifying them, or enforcing 
support orders, the Federal Parent Locator Service will provide 
information to locate individuals who owe child support or 
against whom an obligation is sought or to whom such an 
obligation is owed. Information in the FPLS includes Social 
Security number, address, name and address of employer, and 
wages and employee benefits (including information about health 
care coverage).

Senate amendment

    Similar to House provision, except clarifies current law by 
stating that information from the Federal Parent Locator 
Service can be used to enforce visitation orders. Senate also 
allows FPLS to contain and provide information on assets and 
debts.

Conference agreement

    The conference agreement is similar to both the House bill 
and the Senate amendment. The agreement clarifies the statute 
so that nonresident parents are given access to information 
from the FPLS if these requests are made through a court or 
through the State child support agency. In addition, States are 
required to treat requests for information from nonresident 
parents on the same basis and with the same priority as 
requests for information from the resident parent.

                           B. Reimbursements

Present law

    Federal law requires that any department or agency of the 
United States must be reimbursed for costs incurred for 
providing requested information to the FPLS.

House bill

    The Secretary is authorized to set reasonable rates for 
reimbursing Federal and State agencies for the cost of 
providing information to the FPLS and to set reimbursement 
rates that State and Federal agencies that use information from 
the FPLS must pay to the Secretary.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                       C. New Components of FPLS

           (1) Federal case registry of child support orders

Present law

    No provision.

House bill

    The House bill establishes within the FPLS an automated 
registry known as the Federal Case Registry of Child Support 
Orders. The Federal Case Registry contains abstracts of child 
support orders and other information specified by the Secretary 
(such as names, Social Security numbers or other uniform 
identification numbers, State case identification numbers, 
wages or other income, and rights to health care coverage) to 
identify individuals who owe or are owed support, or for or 
against whom support is sought to be established, and the State 
which has the case. States must begin reporting this 
information in accord with regulations issued by the Secretary 
by October 1, 1998.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                  (2) National directory of new hires

Present law

    No provision.

House bill

    The bill establishes within the FPLS a National Directory 
of New Hires containing information supplied by State 
Directories of New Hires, beginning October 1, 1996. When fully 
implemented, the Federal Directory of New Hires will contain 
identifying information on virtually every person who is hired 
in the United States. In addition, the FPLS will contain 
quarterly data supplied by the State Directory of New Hires on 
wages and Unemployment Compensation paid. The Secretary of the 
Treasury must have access to information in the Federal 
Directory of New Hires for the purpose of administering section 
32 of the Internal Revenue Code and the Earned Income Credit.

Senate amendment

    The Senate provision is similar to the House provision with 
two exceptions:
            (1) the Senate amendment includes the requirement 
        that the information for the National Directory of New 
        Hires must be entered within 2 days of receipt; and
            (2) the Senate amendment requires the DHHS 
        Secretary to maintain within the National Directory of 
        New Hires a list of multistate employers that choose a 
        State to send their report to and the name of the State 
        so designated.

Conference agreement

    Conferees agree to follow both the House bill and Senate 
amendment except that the House recedes on the points of 
difference. Thus, the National Directory must enter new 
information within 2 days and the Secretary must maintain a 
list of the States to which multistate employers send their new 
hire information.

            D. Information Comparisons and Other Disclosures

Present law

    Upon request, the Secretary must provide to an ``authorized 
person'' (i.e., an employee or attorney of a child support, a 
court with jurisdiction over the parties involved, the 
custodial parent, legal guardian, or attorney of the child) the 
most recent address and place of employment of any nonresident 
parent if the information is contained in the records of the 
Department of Health and Human Services, or can be obtained 
from any other department or agency of the United States or of 
any State. The FPLS also can be used in connection with the 
enforcement or determination of child custody, visitation, and 
parental kidnapping. Federal law requires the Secretary of 
Labor and the Secretary of Health and Human Services to enter 
into an agreement to give the FPLS prompt access to wage and 
unemployment compensation claims information useful in locating 
a noncustodial parent or his employer.

House bill

    The Secretary must verify the accuracy of the name, Social 
Security number, birth date, and employer identification number 
of individuals in the Federal Parent Locator Service with the 
Social Security Administration. The Secretary is required to 
match data in the National Directory of New Hires against the 
child support order abstracts in the Federal Case Registry at 
least every 2 working days and to report information obtained 
from matches to the State child support agency responsible for 
the case within 2 days. The information is to be used for 
purposes of locating individuals to establish paternity, and to 
establish, modify, or enforce child support orders. The 
Secretary may also compare information across all components of 
the FPLS to the extent and with the frequency that the 
Secretary determines will be effective. The Secretary will 
share information from the FPLS with several potential users 
including State agencies administering the Temporary Assistance 
for Needy Families program, the Commissioner of Social Security 
(to determine the accuracy of Social Security and Supplemental 
Security Income), and researchers under some circumstances.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment.

                                E. Fees

Present law

    ``Authorized persons'' who request information from FPLS 
must be charged a fee.

House bill

    The Secretary must reimburse the Commissioner of Social 
Security for costs incurred in performing verification of 
Social Security information and to States for submitting 
information on New Hires. States or Federal agencies that use 
information from FPLS must pay fees established by the 
Secretary.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                  F. Restriction on Disclosure and Use

Present law

    Federal law stipulates that no information shall be 
disclosed if the disclosure would contravene the national 
policy or security interests of the United States or the 
confidentiality of Census data.

House bill

    Information from the FPLS cannot be used for purposes other 
than those provided in this section, subject to section 6103 of 
the Internal Revenue Code.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                 G. Information Integrity and Security

Present law

    No provision.

House bill

    The Secretary must establish and use safeguards to ensure 
the accuracy and completeness of information from the FPLS and 
restrict access to confidential information in the FPLS to 
authorized persons and purposes.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                      H. Quarterly Wage Reporting

Present law

    Requires the Secretary of Labor to provide prompt access 
for the DHHS Secretary to wage and unemployment compensation 
claims information and data maintained by the Labor Department 
or State employment security agencies.

House bill

    No provision.

Senate amendment

    Each department in the U.S. shall submit the name, Social 
Security number, and wages paid the employee, on a quarterly 
basis to the FPLS. Quarterly wage reporting shall not be filed 
for a Federal or State employee performing intelligence or 
counter-intelligence functions if it is determined that filing 
such a report could endanger the employee or compromise an 
ongoing investigation.

Conference agreement

    The conference agreement follows the Senate amendment.

                        I. Conforming Amendments

Present law

    No provision.

House bill

    This section makes several conforming amendments to Titles 
III and IV of the Social Security Act and the Federal 
Unemployment Tax Act.

Senate amendment

    Similar to House provision, except amends section 303(h) to 
require State unemployment insurance agencies to report 
quarterly wage information to the Secretary of HHS or suffer 
financial penalties, while the House bill amends section 303(a) 
and simply requires quarterly reports to the Secretary of HHS.

Conference agreement

    Conferees agreed to follow both the House and Senate 
provisions but to follow the Senate amendment by requiring 
State unemployment insurance agencies to file quarterly wage 
reports with the Secretary or pay penalties.

    J. Authorized Person for Information Regarding Visitation Rights

Present law

    FPLS can be used to provide information to authorized 
individuals and agencies making or entering a child custody 
order (see Sec. 463 of Social Security Act).

House bill

    No provision.

Senate amendment

    Expands functions of FPLS by requiring that information be 
made available to nonresident parents for purposes of seeking 
or enforcing child visitation orders.

Conference agreement

    The House recedes to the Senate amendment on this provision 
but with the agreement that nonresident parents cannot obtain 
information directly from the FPLS. Rather, they must present 
their request through the courts or through the State child 
support agency. In addition, the agreement requires State child 
support agencies to treat requests for information from 
nonresident parents on the same basis and with the same 
priority as requests from resident parents.
    Conferees also agree to add a provision to section 6103(l) 
of the Internal Revenue Code to allow State child support 
agencies to share information on the address, social security 
number, and tax intercept results with private agents working 
under contract with the State agency.

  12. collection and use of social security numbers for use in child 
                   support enforcement (section 317)

Present law

    Federal law requires that in the administration of any law 
involving the issuance of a birth certificate, States must 
require each parent to furnish their Social Security number for 
the birth records. The State is required to make such numbers 
available to child support agencies in accordance with Federal 
or State law. States may not place Social Security numbers 
directly on birth certificates.

House bill

    States must have laws requiring that Social Security 
numbers be placed on applications for professional licenses, 
commercial drivers licenses, and occupational licenses, 
marriage licenses, and in the records for divorce decrees, 
child support orders, and paternity determination or 
acknowledgment orders. Individuals who die will have their 
Social Security number placed in the records relating to the 
death and recorded on the death certificate. There are several 
conforming amendments.

Senate amendment

    Similar to House provision, except gives States the option 
of not including Social Security numbers on applications for 
licenses and bars the placement of Social Security numbers on 
marriage licenses.

Conference agreement

    The conference agreement generally follows the House bill 
and the Senate amendment except that the House recedes to the 
Senate requirements that States have the option of not 
including Social Security numbers on applications and that 
States be barred from placing Social Security numbers on 
marriage licenses.

         Subtitle C--Streamlining and Uniformity of Procedures

            13. adoption of uniform state laws (section 321)

Present law

    States have several options available for pursuing 
interstate child support cases including direct income 
withholding, interstate income withholding, and long-arm 
statutes which require the use of the court system in the State 
of the custodial parent. In addition, States use the Uniform 
Reciprocal Enforcement of Support Act (URESA) and the Revised 
Uniform Reciprocal Enforcement of Support Act (RURESA) to 
conduct interstate cases. Moreover, Federal law imposes a 
Federal criminal penalty for the willful failure to pay past-
due child support to a child who resides in a State other than 
the State of the obligor. In 1992, the National Conference of 
Commissioners on State Uniform Laws approved a new model State 
law for handling interstate child support cases. The new 
Uniform Interstate Family Support Act (UIFSA) is designed to 
deal with desertion and nonsupport by instituting uniform laws 
in all 50 States that limit control of a child support case to 
a single State. This approach ensures that only one child 
support order from one court or child support agency will be in 
effect at any given time. It also helps to eliminate 
jurisdictional disputes between States that are impediments to 
locating parents and enforcing child support orders across 
State lines. As of March, 1995, 23 States had enacted UIFSA, 15 
verbatim and 8 with minor changes.

House bill

    By January 1, 1997, all States must have enacted the 
Uniform Interstate Family Support Act (UIFSA) and have the 
procedures required for its implementation in effect. States 
are required to apply UIFSA to any case involving an order 
established or modified in one State that is sought to be 
modified in another State. States must also have a new 
provision on long-arm statutes and petitioning for 
modifications of orders, and are required to recognize as valid 
any method of service of process used in another State that is 
valid in that State.

Senate amendment

    Similar to the House provision, except permits but does not 
require States to apply UIFSA to all interstate cases.

Conference agreement

    The conference agreement is that States must adopt UIFSA by 
January 1, 1998. The House recedes to the Senate, however, by 
allowing States flexibility in deciding which specific 
interstate cases are pursued by using UIFSA and which cases are 
pursued using other methods of interstate enforcement.

  14. improvements to full faith and credit for child support orders 
                             (section 322)

Present law

    Federal law requires States to treat past-due support 
obligations as final judgments that are entitled to full faith 
and credit in every State. This means that a person who has a 
support order in one State does not have to obtain a second 
order in another State to obtain support due should the debtor 
parent move from the issuing court's jurisdiction. P.L. 103-383 
restricts a State court's ability to modify a support order 
issued by another State unless the child and the custodial 
parent have moved to the State where the modification is sought 
or have agreed to the modification.

House bill

    The provision clarifies the definition of a child's home 
State, makes several revisions to ensure that full faith and 
credit laws can be applied consistently with UIFSA, and 
clarifies the rules regarding which child support orders States 
must honor when there is more than one order.

Senate amendment

    Similar to House provision

Conference agreement

    The conference agreement follows both the House and Senate 
provisions but the House recedes on ``more than one court.''

    15. administrative enforcement in interstate cases (section 323)

Present law

    No provision.

House bill

    States are required to have laws that permit them to send 
orders to and receive orders from other States without 
registering the underlying order unless the enforcement action 
is contested by the obligor on the grounds of mistake of fact 
or invalid order. The transmission of the order itself serves 
as certification to the responding State of the arrears amount 
and of the fact that the initiating State met all procedural 
due process requirements. No court action is required or 
permitted by the responding State. In addition, each responding 
State must, without requiring the case to be transferred to 
their State, match the case against its data bases, take 
appropriate action if a match occurs, and send the collections, 
if any, to the initiating State. States must keep records of 
the number of requests they receive, the number of cases that 
result in a collection, and the amount collected. States must 
respond to interstate requests within five days.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

        16. use of forms in interstate enforcement (section 324)

Present law

    No provision.

House bill

    The Secretary must issue forms that States must use for 
income withholding, for imposing liens, and for issuing 
administrative subpoenas in interstate cases. The forms must be 
issued by June 30, 1996 and States must be using the forms by 
October 1, 1996.

Senate amendment

    Requires the DHHS Secretary to establish an advisory 
committee which must include State child support directors, and 
not later than June 30, 1996, after consultation with the 
advisory committee, to issue forms that States must use for 
income withholding, for imposing liens, and for issuing 
administrative subpoenas in interstate cases. States must be 
using the forms by October 1, 1996.

Conference agreement

    Conferees agree to follow both the House and Senate 
provisions with a compromise on requiring the Secretary to 
consult with States. Rather than forming an advisory committee, 
the conference agreement requires the Secretary to consult with 
States before issuing the interstate forms. It is the intention 
of conferees to facilitate timely issuance of the forms but 
also to mandate that the Secretary work closely with State 
child support directors in developing the forms.

      17. state laws providing expedited procedures (section 325)

                A. Administrative Action by State Agency

Present law

    States must have procedures under which expedited processes 
are in effect under the State judicial system or under State 
administrative processes for obtaining and enforcing support 
orders and for establishing paternity.

House bill

    States must adopt a series of procedures to expedite both 
the establishment of paternity and the establishment, 
enforcement, and modification of support. These procedures 
provide for:
            (1) ordering genetic testing in appropriate cases;
            (2) entering a default order upon a showing of 
        service of process and any other showing required by 
        State law to establish paternity if the putative father 
        refuses to submit to genetic testing and to establish 
        or modify a support order when a parent fails to appear 
        for a hearing;
            (3) issuing subpoenas to obtain information 
        necessary to establish, modify or enforce an order, 
        with appropriate sanctions for failure to respond to 
        the subpoena;
            (4) obtaining access to records including: records 
        of other State and local government agencies, law 
        enforcement records, and corrections records, including 
        automated access to records maintained in automated 
        data bases;
            (5) directing the parties to pay support to the 
        appropriate government entity;
            (6) ordering income withholding;
            (7) securing assets to satisfy arrearages by 
        intercepting or seizing periodic or lump sum payments 
        from States or local agencies; these payments include 
        Unemployment Compensation, workers' compensation, 
        judgements, settlements, lottery winnings, assets held 
        by financial institutions, and public and private 
        retirement funds; and
            (8) increasing automatically the monthly support 
        due to include amounts to offset arrears.

Senate amendment

    Similar to House provision, except requires States to 
include the following additional procedures:
            (1) requiring all entities in the State (including 
        for-profit, nonprofit, and governmental employers) to 
        provide information on employment, compensation and 
        benefits of any employee or contractor in response to a 
        request from the State IV-D agency;
            (2) obtaining access to a variety of public and 
        private records including: vital statistics, State and 
        local tax records, real and personal property, 
        occupational and professional licenses and records 
        concerning ownership and control of corporations, 
        partnerships and other business entities, employment 
        security records, public assistance records, motor 
        vehicle records, corrections records, customer records 
        of public utilities and cable TV companies, and records 
        of financial institutions;
            (3) imposing liens to force the sale of property 
        and distribution of proceeds;
            (4) requiring financial institutions (subject to 
        the limitation on liabilities arising from affording 
        such access) to provide information held by them on 
        individuals who owe or are owed child support (or 
        against or with respect to whom a support obligation is 
        sought) to State child support agencies; and
            (5) requiring that due process safeguards be 
        follows.
    The amendment does not include the House provision 
regarding default orders in paternity cases upon a showing of 
service of process.

Conference agreement

    The House recedes to the Senate by including the five 
additional expedited procedures in the list of State 
requirements. The conference agreement also includes the House 
provision regarding default orders in paternity cases upon a 
showing of service of process.

                  B. Substantive and Procedural Rules

Present law

    Federal regulations provide a number of safeguards, such as 
requiring that the due process rights of the parties involved 
be protected.

House bill

    States must follow a series of procedural rules that apply 
to all of the expedited procedures outlined in the preceding 
section:
            (1) Locator Information and Notice--requires 
        parties in paternity and child support actions to file 
        and update information about identity, address, and 
        employer with the tribunal and with the State Case 
        Registry upon entry of the order. The tribunal can deem 
        due process requirements for notice and service of 
        process to be met in any subsequent action upon 
        delivery of written notice to the most recent 
        residential or employer address filed with the 
        tribunal.
            (2) Statewide Jurisdiction--grants the child 
        support agency and any administrative or judicial 
        tribunal with authority to hear child support and 
        paternity cases, to exert Statewide jurisdiction over 
        the parties, and to grant orders that have Statewide 
        effect; also permits transfer of cases between 
        administrative areas without additional filing or 
        service of process.

Senate amendment

    Similar provision with a minor difference in wording.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment except the House recedes to the Senate 
language by replacing the term ``administrative areas'' with 
the term ``local jurisdictions'' in the section of Statewide 
jurisdiction.

                C. Automation of State Agency Functions

Present law

    No provision.

House bill

    The automated systems being developed by States are to be 
used, to the maximum extent possible, to implement the 
expedited procedures.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                  Subtitle D--Paternity Establishment

     18. State Law concerning Paternity Establishment (Section 331)

       A. Establishment Process Available From Birth Until Age 18

Present law

    Federal law requires States to strengthen their paternity 
establishment laws by requiring that paternity may be 
established until the child reaches at 18. As of August 16, 
1984, these procedures would apply to a child for whom 
paternity has not been established or for whom a paternity 
action was brought but dismissed because of statute of 
limitations of less than 18 years was then in effect in the 
State.

House bill

    Same as current law.

Senate amendment

    Similar to House provision, except requires that paternity 
may be established until age 21 rather than 18.

Conference agreement

    The Senate recedes so that States are required to have laws 
that permit paternity establishment until at least age 18 (or a 
higher limit at State option).

                B. Procedures Concerning Genetic Testing

Present law

    Federal law requires States to implement laws under which 
the child and all other parties must undergo genetic testing 
upon the request of a party in contested cases.

House bill

    The child and all other parties must undergo genetic 
testing upon the request of a party, where the request is 
supported by a sworn statement establishing a reasonable 
possibility of parentage or nonparentage. When the tests are 
ordered by the State agency, States must pay for the costs, 
subject to recoupment at State option from the farther if 
paternity is established.

Senate amendment

    Similar provision. House mandates genetic tests in certain 
cases while Senate allows States with laws against genetic 
testing in some cases to follow State law.

Conference agreement

    The conference agreement follows both House and Senate 
provisions but the House recedes on the provision allowing 
States to exempt certain cases from the requirement for 
mandatory genetic testing. No State exemption, however, can 
permit a putative father to avoid paternity establishment 
procedures.

                 C. Voluntary Paternity Acknowledgment

Present law

    Federal law requires States to implement procedures for a 
simple civil process for voluntary paternity acknowledgment, 
including hospital-based programs.

House bill

    (1) Simple Civil Process. States must have procedures that 
create a simple civil process for voluntary acknowledging 
paternity under which benefits, rights and responsibilities of 
acknowledgement are explained to unwed parents;
    (2) Hospital Program. States must have procedures that 
establish a paternity acknowledgement program through hospitals 
and birth record agencies (and other agencies as designated by 
the Secretary).
    (3) Paternity Services. States must have procedures that 
require the agency responsible for maintaining birth records to 
offer voluntary paternity establishment services. The Secretary 
must issue regulations, including regulations on other State 
agencies that may offer voluntary paternity acknowledgment 
services and the conditions such agencies must meet.
    (4) Affidavit. States must have procedures that require 
agencies to use a uniform affidavit developed by the Secretary 
that is entitled to full faith and credit in any other State.

Senate amendment

    (1) Simple Civil Process. Similar to House provision; 
Senate does not include language requiring that the explanation 
of alternatives, legal consequences, and rights and 
responsibilities be ``in a language that each can understand''.
    (2) Hospital Program. Similar to House provision, except 
States must also establish good cause exceptions for not trying 
to establish paternity.
    (3) Paternity Services. Identical to House provision.
    (4) Affidavit. Similar provision but Senate amendment 
allows States to develop their own voluntary paternity 
acknowledgment form as long as they follow all the basic 
elements of a form developed by the Secretary.

Conference agreement

    (1) Simple Civil Process. The conference agreement follows 
the House and Senate provisions except the House agrees to drop 
its requirement that the explanation be ``in a language that 
each [parent] can understand''.
    (2) Hospital Program. Conferees agree to follow the House 
and Senate provisions but with a modification of the Senate 
language on ``good cause'' exceptions so that such exceptions 
become a State option.
    (3) Paternity Services. The conference agreement follows 
the House bill and the Senate amendment.
    (4) Affidavit. The House recedes to allow States to develop 
their own voluntary acknowledgement form as long as the form 
contains all the basic elements of a form developed by the 
Secretary.

              D. Status of Signed Paternity Acknowledgment

Present law

    Federal laws requires States to implement procedures under 
which the voluntary acknowledgment of paternity creates a 
rebuttal presumption, or at State option, a conclusive 
presumption of paternity.

House bill

    (1) Legal Finding. States must have procedures under which 
a signed acknowledgement of paternity is considered a legal 
finding of paternity unless rescinded within 60 days.
    (2) Contest. States must have procedures under which a 
paternity acknowledgment can be challenged in court only on the 
basis of fraud, duress, or material mistake of fact.
    (3) Rescission. States must have procedures under which 
minors who sign a voluntary paternity acknowledgement are 
allowed to rescind it until age 18 or the date of the first 
proceeding to establish a support order, visitation, or custody 
rights.

Senate amendment

    (1) Legal Finding. Adds the requirement that the name of 
the father appear in the birth records only if there is a 
paternity acknowledgement signed by both parents or paternity 
has been established by court order;
    (2) Contest. Identical to House provision.
    (3) Rescission. No provision.

Conference agreement

    (1) Legal Finding. The House recedes to the Senate 
requirement that the father's name appear in the birth records 
only if certain conditions are met;
    (2) Contest. The conference agreement follows the House 
bill and the Senate amendment.
    (3) Rescission. The House agrees to drop the rescission 
requirement, thereby leaving this decision up to States.

           E. Bar on Acknowledgment Ratification Proceedings

Present law

    Federal law requires States to implement procedures under 
which voluntary acknowledgment is admissible as evidence of 
paternity and the voluntary acknowledgment of paternity must be 
recognized as a basis for seeking a support order without 
requiring any further proceedings to establish paternity.

House bill

    No judicial or administrative proceedings are required or 
permitted to ratify a paternity acknowledgement which is not 
challenged by the parents.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

              F. Admissibility of Genetic Testing Results

Present law

    Federal law requires States to implement procedures which 
provide that any objection to genetic testing results must be 
made in writing within a specified number of days before any 
hearing at which such results may be introduced into evidence. 
If no objection is made, the test results must be admissible as 
evidence of paternity without the need for foundation testimony 
or other proof of authenticity or accuracy.

House bill

    States must have procedures for admitting into evidence 
accredited genetic tests, unless any objection is made within a 
specified number of days, and if no objection is made, 
clarifying that test results are admissible without the need 
for foundation or other testimony.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

              G. Presumption of Paternity in Certain Cases

Present law

    Federal law requires States to implement procedures which 
create a rebuttable or, at State option, conclusive presumption 
of paternity based on genetic testing results indicating a 
threshold probability that the alleged father is the father of 
the child.

House bill

    States must have laws that create a rebuttable or, at State 
option, conclusive presumption of paternity when results from 
genetic testing indicate a threshold probability that the 
alleged father is the father of the child.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                           H. Default Orders

Present law

    Federal law requires States to implement procedures that 
require a default order to be entered in a paternity case upon 
a showing of service of process on the defendant and any 
additional showing required by State law.

House bill

    A default order must be entered in a paternity case upon a 
showing of service of process on the defendant and any 
additional showing required by the State law.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                       I. No Right to Jury Trial

Present law

    No provision.

House bill

    State laws must state that parties in a contested paternity 
action are not entitled to a jury trial.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

            J. Temporary Support Based on Probable Paternity

Present law

    No provision.

House bill

    Upon motion of a party, State law must require issuance of 
a temporary support order pending an administrative or judicial 
determination of percentage if paternity is indicated by 
genetic testing or other clear and convincing evidence.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

     K. Proof of Certain Support and Paternity Establishment Costs

Present law

    No provision.

House bill

    Bills for pregnancy, childbirth, and genetic testing must 
be admissible in judicial proceedings without foundation 
testimony.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                    L. Standing of Putative Fathers

Present law

    No provision.

House bill

    Putative fathers must have a reasonable opportunity to 
initiate paternity action.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

    M. Filing of Acknowledgments and Adjudications in State Registry

Present law

    No provision.

House bill

    Both voluntary acknowledgements and adjudications of 
paternity must be filed with the State registry of birth 
records for data matches with the central Case Registry of 
Child Support Orders established by the State.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

             N. National Paternity Acknowledgment Affidavit

Present law

    No provision.

House bill

    The Secretary is required to develop an affidavit to be 
used for voluntary acknowledgement of paternity which includes 
the Social Security number of each parent.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House and Senate 
provisions but includes a clarification that the Secretary, 
after consulting with the State child support directors, should 
list the common elements that States must include on their 
forms.

    19. Outreach for Voluntary Paternity Establishment (Section 332)

Present law

    States are required to regularly and frequently publicize, 
through public service announcements, the availability of child 
support enforcement services.

House bill

    States must publicize the availability and encourage the 
use of procedures for voluntary establishment of paternity and 
child support.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

     20. Cooperation by Applicants For and Recipients of Temporary 
              Assistance for Needy Families (Section 333)

Present law

    AFDC applicants and recipients are required to cooperate 
with the State in establishing the paternity of a child and in 
obtaining child support payments unless the applicant or 
recipient is found to have good cause for refusing to 
cooperate. Under the ``good cause'' regulations, the child 
support agency may determine that it is against the best 
interests of the child to seek to establish paternity in cases 
involving incest, rape, or pending procedures for adoption. 
Moreover, the agency may determine that it is against the best 
interest of the child to require the mother to cooperate if it 
is anticipated that such cooperation will result in the 
physical or emotional harm of the child, parent, or caretaker 
relative.

House bill

    Individuals who apply for or receive public assistance 
under the Temporary Assistance for Needy Families program must 
cooperate with child support enforcement efforts (establishing 
paternity, establishing, modifying or enforcing a support 
order) by providing specific identifying information about the 
other parent, unless the applicant or recipient is found to 
have good cause for refusing to cooperate. ``Good cause'' is 
defined by States. States may also require the applicant and 
child to submit to genetic testing. (See also Prohibitions in 
Title 1, Section 101 of the House bill.)

Senate amendment

    The Senate provision is similar to the House provision 
except the Senate amendment places additional specific 
requirements on State procedures. These include requiring the 
custodial parent to appear at interviews, hearings, and legal 
proceedings; requiring the State child support agency to notify 
the custodial parent and the IV-A and Medicaid agencies of 
whether she is cooperating and if not what she must do to 
cooperate; and requiring that when determining the custodial 
parent's cooperation States take into account the best 
interests of the child. The Senate amendment also requires the 
individual and the child to submit to genetic tests pursuant to 
a judicial or administrative order. Responsibility for 
determining failure to cooperate is shifted from the agency 
that administers the Temporary Assistance program to the agency 
that administers the child support program.

Conference agreement

    The House recedes to the Senate's additional requirements 
for cooperation by adults for or receiving IV-A benefits. In 
addition, conferees agree to let States decide which agency 
should make the determination of whether the parent is 
cooperating.

             Subtitle E--Program Administration and Funding

                     21. Federal Matching Payments

Present law

    The Federal Government currently reimburses each State at 
the rate of 66 percent for the cost of administering its child 
support enforcement program. The Federal Government also 
reimburses States 90 percent of the laboratory costs of 
establishing paternity, and through FY 1995, 90 percent of the 
costs of developing comprehensive Statewide automated systems. 
(There is no maintenance of effort provision in current law.)

House bill

    The Federal matching payment for child support activities 
is maintained at 66 percent. The bill also adds a maintenance 
of effort requirement that the non-Federal share of IV-D 
funding for FY 1997 and succeeding years not be less than such 
funding for FY 1996.

Senate amendment

    No provision. Maintains present law with respect to the 
Federal match rate of 66 percent.

Conference agreement

    The conference agreement follows the Senate amendment.

      22. Performance-Based Incentives and Penalties (Section 341)

           A. Incentive Adjustments to Federal Matching Rate

Present law

    The Federal government reimburses approved administrative 
expenditures of States at a rate of 66 percent. In addition, 
the Federal government pays States an incentive amount ranging 
from 6 percent to 10 percent of both AFDC and non-AFDC 
collections.

House bill

    Beginning in 1999, a new incentive system will reward good 
State performance by increasing the State's basic matching rate 
by up to 12 percentage points for outstanding performance in 
establishing paternity and by up to an additional 12 percentage 
points for overall performance (as measured by the percentage 
of cases that have support orders, the percentage of cases in 
which support is being paid, the ratio of child support 
collected to child support due, and cost-effectiveness). The 
Secretary will design the specific features of the system. In 
doing so, she will maintain overall Federal reimbursement of 
State programs through the combined matching rate and 
incentives at the level projected for the current combined 
matching and incentive payments to States. The effect of this 
provision is to change Federal financing so that relatively 
more Federal dollars will be awarded to States for good 
performance. The State must spend the money from incentive 
payments on their child support enforcement program.

Senate amendment

    As under current law, the Senate amendment provides for an 
incentive payment to States, the funds for which come from the 
reimbursement of cash welfare payments to the Federal 
Government that is the Federal share of child support 
collections paid on behalf of families. Not later than 60 days 
after enactment, the DHHS Secretary is required to establish a 
committee, which must include State child support directors, 
which must develop for the Secretary's approval a formula for 
the distribution of incentive payments to the States. The 
State's incentive payment is based on its comparative 
performance as measured by five criteria and seven factors that 
are stipulated in the amendment.

Conference agreement

    The conferees agree to retain the present financing system 
of 66 percent Federal matching payments and an incentive system 
that enables States to increase their Federal payments by up to 
10 percent of AFDC and non-AFDC collections. However, the 
conferees also require the Secretary, in consultation with 
State child support directors, to develop a new incentive 
system that provides additional payments to States (i.e., above 
the base matching rate of 66 percent) based on their 
performance and to report details of the new system to the 
Committees on Ways and Means and Finance by June 1, 1996. The 
Secretary's new system must be revenue neutral. The two 
committees intend to study the Secretary's recommendations, as 
well as recommendations by other individuals and organizations, 
and to design and perhaps enact a new incentive system that is 
revenue neutral in the near future.

                        B. Conforming Amendments

Present law

    No provision.

House bill

    Two conforming amendments are made in Section 454 of the 
Social Security Act.

Senate amendment

    No provision.

Conference agreement

    The Senate recedes to the two conforming amendments in the 
House bill.

       C. Calculation of IV-D Paternity Establishment Percentage

Present law

    States are required to meet Federal standards for the 
establishment of paternity. The standard relates to the 
percentage obtained by dividing the number of children in the 
State who are born out of wedlock, are receiving AFDC or child 
support enforcement services, and for whom paternity has been 
established by the number of children who are born out of 
wedlock and are receiving AFDC or child support enforcement 
services. To meet Federal requirements, this percentage in a 
State must be at least 75 percent or meet the following 
standards of improvement from the preceding year: (1) if the 
State paternity establishment ratio is between 50 and 75 
percent, the State ratio must increase by 3 or more percentage 
points from the ratio of the preceding year; (2) if the State 
ratio is between 45 and 50, the ratio must increase at least 4 
percentage points; (3) if the State ratio is between 40 and 45 
percent, it must increase at least 5 percentage points; and (4) 
if the State ratio is below 40 percent, it must increase at 
least 6 percentage points. If an audit finds that the State's 
child support enforcement program has not substantially 
complied with the requirements of its State plan, the State is 
subject to a penalty. In accord with this penalty, the 
Secretary must reduce a State's AFDC benefit payment by not 
less than 1 percent nor more than 2 percent for the first 
failure to comply; by not less than 2 percent nor more than 3 
percent for the second consecutive failure to comply; and by 
not less than 3 percent nor more than 5 percent for third or 
subsequent consecutive failure to comply.

House bill

    The IV-D paternity establishment percentage for a fiscal 
year is equal to: (1) the total number of children in the State 
who were born out-of-wedlock, who have not reached age 1 and 
for whom paternity is acknowledged or established during the 
fiscal year, divided by (2) the total number of children born 
out-of-wedlock in the State during the fiscal year. The 
requirements for meeting the standard are the same as current 
law except the 75 percent rule is increased to 90 percent. The 
noncompliance provisions of the child support program are 
modified so that the Secretary must take overall program 
performance into account and the minimum paternity 
establishment percentage is raised from 75 to 90.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment. States have the option of calculating the 
paternity establishment rate by either counting only unwed 
births in the State IV-D caseload or by counting all unwed 
births in the State.

                           D. Effective Dates

Present law

    No provision.

House bill

    The new incentive payments go into effect on October 1, 
1997, but procedures for computing the State incentive payments 
are not actually based on the new system until fiscal year 
1999; the changes in penalty procedure become effective upon 
enactment.

Senate amendment

    Effective upon enactment, except present law applies for 
purposes of incentive payments for fiscal years before FY 2000.

Conference agreement

    Effective upon enactment.

         23. Federal and State Reviews and Audits (Section 342)

                       A. State Agency Activities

Present law

    States are required to maintain a full record of child 
support collections and disbursements and to maintain an 
adequate reporting system.

House bill

    States are required to annually review and report to the 
Secretary, using data from their automatic data processing 
system, both information adequate to determine the State's 
compliance with Federal requirements for expedited procedures 
and timely case processing as well as the information necessary 
to calculate their levels of accomplishment and rates of 
improvement on the performance indicators in the bill.

Senate amendment

    Similar to House provision, except the Senate does not 
include the requirement that States submit information on State 
compliance with Federal mandates on timely case processing.

Conference agreement

    The conference agreement follows both the House and Senate 
provisions but the House recedes by dropping its requirement 
that States submit information on timely case processing.

                         B. Federal Activities

Present law

    The Secretary must collect and maintain, on a fiscal year 
basis, up-to-date State-by-State statistics on each of the 
services provided under the child support enforcement program. 
The Secretary is also required to evaluate the implementation 
of State child support enforcement programs and conduct audits 
of these programs as necessary, but not less often than once 
every three years (or annually if a State has been found to be 
out of compliance with program rules).

House bill

    The Secretary is required to determine the amount (if any) 
of incentives or penalties. The Secretary must also review 
State reports on compliance with Federal requirements and 
provide States with recommendations for corrective action. 
Audits must be conducted at least once every 3 years, or more 
often in the case of States that fail to meet Federal 
requirements. The purpose of the audits is to assess the 
completeness, reliability, accuracy, and security of data 
reported for use in calculating the performance indicators and 
to assess the adequacy of financial management of the State 
program.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment.

                           C. Effective Date

Present law

    No provision.

House bill

    These provisions take effect beginning with the calendar 
quarter that begins 12 months after enactment.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment.

            24. required reporting procedures (section 343)

Present law

    The Secretary is required to assist States in establishing 
adequate reporting procedures and must maintain records of 
child support enforcement operations and of amounts collected 
and disbursed, including costs incurred in collecting support 
payments.

House bill

    The Secretary is required to establish procedures and 
uniform definitions for State collection and reporting of 
information necessary to measure State compliance with 
expedited processes and timely case processing.

Senate amendment

    Smilar to House provision, except does not mention timely 
case processing.

Confrence agreement

    The conference agreement follow both the House and Senate 
provisions except, as in the State Agency Activities provision 
(see #23A above), the House recedes by dropping State reports 
on timely case processing.

        25. automated data processing requirements (section 344)

                             A. In General

Present Law

    Federal law (P.L. 104-35) requires that by October 1, 1997, 
States have an operational automated data processing and 
information retrieval system designed to control, account for, 
and monitor all factors in the support enforcement and 
paternity determination process, the collection and 
distribution of support payments, and the costs of all services 
rendered.

House bill

    States are required to have a single Statewide automated 
data processing and information retrieval system which has the 
capacity to perform the necessary functions, as described in 
this section.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment.

                         B. Program Management

Present law

    Federal law requires the that automated data processing 
system be capable of providing management information on all 
IV-D cases from intital referral or application through 
collection and enforcement.

House bill

    The State data system must be used to perform functions the 
Secretary specifies, including controlling and accounting for 
the use of Federal, State, and local funds and maintaining the 
data necessary to meet Federal reporting requirements in 
carrying out the program.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment.

                C. Calculation of Performance Indicators

Present law

    No provision.

House bill

    The automated system must maintain the requisite data for 
Federal reporting, calculate the State's performance for 
purposes of the incentive and penalty provisions, and have in 
place systems controls to ensure the completeness, reliability, 
and accuracy of the data.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment.

                 D. Information Integrity and Security

Present law

    Federal law requires that the automated data processing 
system be capable of providing security against unauthorized 
access to, or use of, the data in such system.

House bill

    The State agency must have safeguards to protect the 
integrity, accuracy, and completeness of, and access to, data 
in the automated systems (including restricting access to 
passwords, monitoring of access to and use of the system, 
training, and imposing penalties).

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment.

                             E. Regulations

Present law

    No provision.

House bill

    The Secretary shall prescribe final regulations for 
implementation of this section no later than 2 years after the 
date of the enactment of this Act.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment.

                      F. Implementation Timetable

Present law

    No provision.

House bill

    The statutory provisions for State implementation of 
Federal automatic data processing requirements are revised to 
provide that, first, all requirements enacted on or before the 
date of enactment of the Family support Act of 1988 are to be 
met by October 1, 1995. The requirements enacted on or before 
the date of enactment of this bill must be met by October 1, 
1999. The October 1, 1999 deadline will be extended by one day 
for each day by which the Secretary fails to meet the 2-year 
deadline for regulations.

Senate amendment

    Similar to House provision, except allows States to meet 
requirements of the Family Support Act by October 1, 1997 
rather than 1995.

Conference agreement

    The conference agreement follows both House and Senate 
provisions but the completion date for data requirements 
imposed on States by the Family Support Act follows the Senate 
provision of October 1, 1997.

  G. Special Federal Matching Rate for Development Costs of Automated 
                                Systems

Present law

    The Federal Government, through FY 1995, reimburses States 
at a 90 percent matching rate for the costs of developing 
comprehensive Statewide automated systems.

House bill

    The Federal government will provide 90 percent matching 
funds for fiscal year 1996 that will be applied to all State 
activities related to developing a comprehensive Statewide 
automated system. For fiscal years 1997 through 2001, the 
matching rate for the provisions of this bill and other 
authorized provisions will be the higher of 80 percent or the 
matching rate generally applicable to the State IV-D program, 
including incentive payments (which could be as high as 90 
percent).

Senate amendment

    Similar to House provision except continues the 90 percent 
matching rate for 1996 and 1997 in the case of provisions 
outlined in advanced planning documents submitted before May 1, 
1995.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment but the House recedes on the provision to continue 90 
percent reimbursement of data processing activities that were 
included in any advanced planning document approved by the 
Secretary before May 1, 1995. The 90 percent funding, which 
continues through October 1, 1997, includes approved 
expenditures by States that were made between October 1, 1995 
and the date of passage of this legislation.

H. Temporary Limitation on Payments Under Special Federal Matching Rate

Present law

    No provision.

House bill

    The Secretary must create procedures to cap these payments 
at $260,000,000 over 5 years (FY 1996-2000) to be distributed 
among States by a formula set in regulations which takes into 
account the relative size of State caseloads and the level of 
automation needed to meet applicable automatic data processing 
requirements.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and Senate 
amendment, except the limitation on payments is increased from 
$260,000,000 to $400,000,000. This increase was made necessary 
by general agreement by analysts at HHS and the Congressional 
Budget Office that the numerous data processing requirements 
imposed by this Act would cost the States $400 million to 
implement.

                 26. technical assistance (section 345)

Present law

    Annual appropriations are made to cover the expenses of the 
Administration for Children and Families, which includes the 
Federal Office of Child Support Enforcement (OCSE). Among 
OCSE's administrative expenses are the costs of providing 
technical assistance to the States.

House bill

    The Secretary can use 1 percent of the Federal share of 
child support collections on behalf of families in the 
Temporary Assistance for Needy Families program the preceding 
year to provide technical assistance to the States. Technical 
assistance can include training of State and Federal staff, 
research and demonstration programs, and special projects of 
regional or national significance. The Secretary must use up to 
2 percent of the Federal share of collections for operation of 
the Federal Parent Locator Service to the extent that costs of 
the Parent Locator Service are not recovered by user fees.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

     27. reports and data collection by the secretary (section 346)

Present law

    The Secretary is required to submit to Congress, not later 
than 3 months after the end of the fiscal year, a complete 
report on all child support enforcement activities.

House bill

    In addition to current reporting requirements, the 
Secretary is required to report the following data to Congress 
in her annual report each fiscal year:
            (1) the total amount of child support payments 
        collected;
            (2) the cost to the State and Federal governments 
        of furnishing child support services;
            (3) the number of cases involving families that 
        became ineligible for aid under part A with respect to 
        whom a child support payment was received;
            (4) the total amount of current support collected 
        and distributed;
            (5) the total amount of past due support collected 
        and distributed as arrearages; and
            (6) the total amount of support due and unpaid for 
        all fiscal years.
These requirements apply to fiscal year 1996 and succeeding 
fiscal years.

Senate amendment

    Similar to House provision, except requires the Secretary 
to include information on the degree to which States met 
Federal statutory time limits in responding to interstate 
requests and in distributing child support collections.

Conference agreement

    Conferees agree to follow the provisions in both bills 
except that the House recedes on the additional requirements 
the Senate included in the Secretary's report to Congress.

      Subtitle F--Establishment and Modification of Support Orders

            28. national child support guidelines commission

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Establishes a National Child Support Guidelines Commission 
that is responsible for deciding whether it is appropriate to 
develop national child support guidelines for consideration by 
the Congress or for adoption by individual States and the 
benefits and deficiencies of such models. Several matters the 
Commission must consider, such as the feasibility of adapting 
uniform terms in all child support orders, are outlined. The 
Commission is to be comprised of 12 individuals, 2 each 
appointed by the Chairman of Finance and Ways and Means, 1 each 
by the ranking member of Finance and Ways and Means, and 6 by 
the Secretary. The Commission report must be issued within 2 
years.

Conference agreement

    The Senate recedes to the House provision of no National 
Guidelines Commission.

   29. simplified process for review and adjustment of child support 
                          orders (section 351)

Present law

    A child support order legally obligates noncustodial 
parents to provide financial support for their child and 
stipulates the amount of the obligation and how it is to be 
paid. In 1984, P.L. 98-378 required States to establish 
guidelines for establishing child support orders. In 1988, P.L. 
100-485 made the guidelines binding on judges and other 
officials who had authority to establish support orders. P.L. 
100-485 also required States to review and adjust individual 
child support orders once every 3 years under some 
circumstances. States are required to notify both resident and 
nonresident parents of their right to a review.

House bill

    States must review and, as appropriate, adjust the support 
order every 3 years. States may adjust child support orders by 
either applying the State guidelines and updating the reward 
amount or by applying a cost of living increase to the order. 
Both parties must be given 30 days after notice of adjustment 
to contest the results. States may use automated methods to 
identify orders eligible for review, conduct the review, 
identify orders eligible for adjustment, and apply the 
appropriate adjustment to the orders based on the threshold 
established by the State. States must also review and, upon a 
showing of a change in circumstances, adjust orders pursuant to 
the child support guidelines upon request of a party. States 
are required to give parties one notice of their right to 
request review and adjustment, which may be included in the 
order establishing the support amount.

Senate amendment

    Similar to House provision except adds that review and 
adjustment must be done ``upon the request of either parent or 
the State.'' If neither parent requests a review, States have 
the option of avoiding the 3-year requirement.

Conference agreement

    Conferees agree to follow the House and Senate provisions 
with one exception. The House recedes to the Senate provision 
that States are not required to conduct reviews unless 
requested by either parent but with the additional requirement 
that States inform mothers at least once every 3 years in 
writing of their right to a review.

30. furnishing consumer reports for certain purposes relating to child 
                         support (section 352)

Present law

    P.L. 102-537 amends the Fair Credit Act to require consumer 
reporting agencies to include in any consumer report 
information on child support delinquencies provided by or 
verified by a child support enforcement agency, which antedates 
the report by 7 years.

House bill

    This section amends the Fair Credit Reporting Act. In 
response to a request by the head of a State or local child 
support agency (or a State or local government official 
authorized by the head of such an agency), consumer credit 
agencies must release information if the person making the 
request: certifies that the consumer report is needed to 
establish an individual's capacity to make child support 
payments or determine the level of payments; gives the consumer 
credit agency 10 days notice that the report is being 
requested; and provides assurances that the consumer report 
will be kept confidential, will be used solely for child 
support purposes, and will not be used in connection with any 
other civil, administrative, or criminal proceeding or for any 
other purpose. Consumer reporting agencies must also give 
reports to a child support agency for use to set an initial or 
modified award.

Senate amendment

    Similar to House provision, except requires that the 
consumer must have been shown to be the father (i.e., paternity 
must be established).

Conference agreement

    The conference agreement follows both the House and Senate 
provisions except that the House recedes to the Senate 
requirement that the consumer must have been shown to be the 
father.

   31. nonliability for depository institutions providing financial 
                         records (section 353)

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Depository institutions are not liable for information 
provided to child support agencies. Child support agencies can 
disclose information obtained from depository institutions only 
for child support purposes. Individuals who knowingly disclose 
information from financial records can have civil actions 
brought against them in Federal district court; the maximum 
penalty is $1,000 for each disclosure or actual damages plus, 
in the case of ``willful disclosure'' resulting from ``gross 
negligence'' punitive damages, plus the costs of the action.

Conference agreement

    The House recedes to the Senate requirement that States 
have laws protecting depository institutions when information 
is provided to child support agencies.

                Subtitle G-Enforcement of Support Orders

                  32. federal income tax refund offset

  A. Changed Order of Refund Distribution Under Internal Revenue Code

Present law

    Since 1981 in AFDC cases, and 1984 in non-AFDC cases, 
Federal law has required States to implement procedures under 
which child support agencies can collect child support 
arrearages through the inception of Federal income tax refunds.
    Child support arrearages obtained through Federal income 
tax refunds are distributed to the State and are retained by 
the State for arrearages owed to it under the AFDC assignment. 
States must reimburse the Federal government for their share of 
these arrearage payments. If no arrearages are owed the State, 
the money is used to pay arrearages to the family.

House bill

    The Internal Revenue Code is amended so that offsets of 
child support arrears owed to individuals take priority over 
most debts owed Federal agencies. Proceeds from tax intercepts 
will be distributed as follows:
            (1) for Federal education debts and debts to the 
        Department of Health and Human Services;
            (2) for child support owed to individuals;
            (3) for child support arrearages owed to State 
        governments; and
            (4) for other Federal debts.
    The provision also amends the Internal Revenue Code so that 
the order of priority for distribution of tax offsets follows 
the distribution rules for child support payments specified in 
subtitle A of this bill.

Senate amendment

    No provision.

Conference agreement

    The House recedes to the Senate so that the order of 
payments from the intercepts remains unchanged.

B. Elimination of Disparities in Treatment of Assigned and Non-Assigned 
                               Arrearages

Present law

    Federal rules set different criteria for AFDC and non-AFDC 
cases. For example, in AFDC cases arrearages may be collected 
through the income tax offset program regardless of the child's 
age. In non-AFDC cases, the tax offset program can be used only 
if the postminor child is disabled (pursuant to the meaning of 
disability under titles II or XVI of the SSA). Moreover, the 
arrearage in AFDC cases must be only $150 or more, whereas the 
arrearage in non-AFDC cases must be at least $500.

House bill

    The bill eliminates disparate treatment of families not 
receiving public assistance by repealing provisions applicable 
only to support arrears not assigned to the State. The 
Secretary of the Treasury is given access to information in the 
National Directory of new Hires for tax purposes.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the Senate bill (no 
provision).

  33. internal revenue service collection of arrearages (section 361)

Present law

    If the amount of overdue child support is at least $750, 
the Internal Revenue Service can enforce the child support 
obligation through its regular collection process, which may 
include seizure of property, freezing accounts, or use of other 
procedures if the child support enforcement agencies requests 
assistance according to prescribed rules (e.g., certifying that 
the delinquency is at least $750, etc.)

House bill

    No provision.

Senate amendment

    Amends the Internal Revenue Code so that no additional fees 
can be assessed for adjustment to previously certified amounts 
for the same obligor, effective October 1, 1997.

Conference agreement

    The House recedes to the Senate requirement that IRS cannot 
charge additional fees in the case of a previously certified 
amount for the same obligor.

 34. Authority to Collect Support from Federal Employees (Section 362)

            A. Consolidation and Streamlining of Authorities

Present law

    Federal law allows the wages of Federal employees to be 
garnished to enforce legal obligations for child support or 
alimony. Federal law provides that moneys payable by the United 
States to any individual are subject to being garnished in 
order to meet an individual's legal obligation to provide child 
support or make alimony payments. An executive order issued 2/
27/95 establishes the Federal government as a model employer in 
promoting and facilitating the establishment and enforcement of 
child support.
    By Executive Order on 2/27/95, all Federal agencies, 
including the Uniformed Services, are required to cooperate 
fully in efforts to establish paternity and child support and 
to enforce the collection of child and medical support. All 
Federal agencies are to review their wage withhholding 
procedures to ensure that they are in full compliance.
    Beginning no later than July 1, 1995, the Director of the 
Office of Personal Management must publish annually in the 
Federal Register the list of agents (and their addresses) 
designated to receive service of withholding notices for 
Federal employees.
    Federal law states that neither the United States nor any 
disbursing officer or government entity shall be liable with 
respect to any payment made from moneys due or payable from the 
United States pursuant to the legal process.
    Federal law provides that money that may be garnished 
includes compensation for personal services, whether such 
compensation is denominated as wages, salary, commission, 
bonus, pay, or otherwise, and includes but is not limited to, 
severance pay, sick pay, incentive payments, and periodic 
payments.
    Includes definitions of ``United States'', ``child 
support'', ``alimony'', ``private person'', and ``legal 
process''.

House bill

    Federal Employees are subject to wage withholding and other 
actions taken against them by State Child Support Enforcement 
Agencies.
    Federal agencies are responsible for wage withholding and 
other child support actions taken by the State as if they were 
a private employer.
    The head of each Federal agency must designate an agent and 
place the agent's name, title, address, and telephone number in 
the Federal Register annually. The agent must, upon receipt of 
process, send written notice to the individual involved as soon 
as possible, but no later than 15 days, and to comply with any 
notice of wage withholding or respond to other process within 
30 days.
    Amends existing law governing allocation of moneys owed by 
a Federal employee to give priority to child support, to 
require allocation of available funds, up to the amount owed, 
among child support claimants, and to allocate remaining funds 
to other claimants on a first-come, first-served basis.
    A government entity served with notice of process for 
enforcement of child support is not required to change its 
normal pay and disbursement cycle to comply with the legal 
process.
    Similar to current law, the U.S., the government of the 
District of Columbia, and disbursing officers are not liable 
for child support payments made in accord with this section; 
nor is any Federal employee subject to disciplinary action or 
civil or criminal liability for disclosing information while 
carrying out the provisions of this section.
    The President has the authority to promulgate regulations 
to implement this section as it applies to Federal employees of 
the Administrative branch of government; the President Pro 
Tempore of the Senate and Speaker of the House can issue 
regulations governing their employees; and the Chief Justice 
can issue regulations applicable to the Judicial branch.
    This section broadens the definition of income to include 
funds such as insurance benefits, retirement and pension pay, 
survivor's benefits, compensation for death and black lung 
disease, veteran's benefits, and workers' compensation; but to 
exclude from income funds paid to defray expenses incurred in 
carrying out job duties, owed to the U.S., used to pay Federal 
employment taxes and fines and forfeitures ordered by court 
martial, withheld for tax purposes, used for health insurance 
or life insurance premiums, normal retirement contributions, or 
life insurance premiums.
    This section includes definitions of ``United States'', 
``child support'', ``alimony'', ``private person'', and ``legal 
process''.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                        B. Conforming Amendments

Present law

    No provision.

House bill

    This section includes conforming amendments to Title IV of 
the Social Security Act and Title 5 of the United States Code.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                  C. Military Retired and Retainer Pay

Present law

    No provision.

House bill

    This section expands the definition of court to include an 
administrative or judicial tribunal which includes the child 
support enforcement agency.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                           D. Effective Date

Present law

    No provision.

House bill

    This section goes into effect 6 months after the date of 
enactment.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

 35. enforcement of child support obligations of members of the armed 
                          forces (section 363)

                 A. Availability of Locator Information

Present law

    The Executive Order issued February 27, 1995 requires a 
study which would include recommendations related to how to 
improve service of process for civilian employees and members 
of the Uniformed Services stationed outside of the United 
States.

House bill

    The Secretary of Defense must establish a central personnel 
locator service that contains residential or, in specified 
instances, duty addresses of every member of the Armed Services 
(including retirees, the National Guard, and the Reserves). The 
locator service must be updated within 30 days of the time an 
individual establishes a new address. Information from the 
locator service must be made available to the Federal Parent 
Locator Service.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

      B. Facilitating Granting of Leave for Attendance at Hearings

Present law

    No provision.

House bill

    The Secretary of Defense must issue regulations to 
facilitate granting of leave for members of the Armed Services 
to attend hearings to establish paternity or to establish child 
support orders.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

  C. Payment of Military Retired Pay in Compliance With Child Support 
                                 Orders

Present law

    Federal law requires allotments from the pay and allowances 
of any member of the uniformed service when the member fails to 
pay child (or child and spousal) support payments.

House bill

    The Secretary of each branch of the Armed Forces (including 
retirees, the Coast Guard, the National Guard, and the 
Reserves) is required to make child support payments directly 
to any State to which a custodial parent has assigned support 
rights as a condition of receiving public assistance. The 
Secretary of Defense must also ensure that payments to satisfy 
current support or child support arrears are made from 
disposable retirement pay. Payroll deductions must begin within 
30 days or the first pay period after 30 days of receiving a 
wage withholding order.

Senate amendment

    Identical provision

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

           36. voiding of fraudulent transfers (section 364)

Present law

    No provision.

House bill

    States must have in effect the Uniform Fraudulent 
Conveyance Act of 1981, the Uniform Fraudulent Transfer Act of 
1984, or an equivalent law providing for voiding transfers of 
income or property in order to avoid payment of child support.

Senate amendment

    Identical provision.

Conference agreement

    The Conference agreement follows the House bill and the 
Senate amendment.

    37. Sense of the Congress that States Should Suspend Drivers', 
  Business, and Occupational Licenses of Persons Owing Past-Due Child 
                                Support

Present law

    No provision.

House bill

    It is the sense of Congress that each State should suspend 
any driver's license, business license, or occupational license 
issued to any person who owes past-due child support.

Senate amendment

    No provision.

Conference agreement

    House recedes (no provision).

38. work requirement for persons owing past-due child support (section 
                                  365)

Present law

    P.L. 100-485 required the Secretary to grant waivers to up 
to 5 States allowing them to provide JOBS services on a 
voluntary or mandatory basis to noncustodial parents who are 
unemployed and unable to meet their child support obligations. 
(In their report the conferees noted that the demonstrations 
would not grant any new powers to the States to require 
participation by noncustodial parents. The demonstrations were 
to be evaluated.)

House bill

    States must have laws that direct courts to order 
individuals owing past-due child support for a child receiving 
assistance under the Temporary Family Assistance program either 
to pay the support due or to participate in work activities. 
``Past-due support'' is defined.

Senate amendment

    Similar to House provision, except refers to ``support'' 
rather than ``past-due support.''

Conference agreement

    Conferees agree to follow the House and Senate provisions 
except that the Senate recedes to the House provision that work 
apply only to nonresident parents owing past-due support.

             39. definition of support order (section 366)

Present law

    No provision.

House bill

    A support order is defined as an order issued by a court or 
an administrative process established under State law that 
requires support of a child or of a child and the parent with 
whom the child lives.

Senate amendment

    A support order is defined as a judgement, decree, or order 
(whether temporary, final, or subject to modification) issued 
by a court or an administrative agency for the support 
(monetary support, health care, arrearages, or reimbursement) 
of a child (including a child who has reached the age of 
majority under State law) or of a child and the parent with 
whom the child lives.

Conference agreement

    The House recedes to the Senate definition of a support 
order.

        40. reporting arrearage to credit bureaus (section 367)

Present law

    Federal law requires States to implement procedures which 
require them to periodically report to consumer reporting 
agencies the name of debtor parents owing at least 2 months of 
overdue child support and the amount of child support overdue. 
However, if the amount overdue is less than $1,000, information 
regarding it shall be made available only at the option of the 
State. Moreover, any information may only be made available 
after the noncustodial parent has been notified of the proposed 
action and has been given reasonable opportunity to contest the 
accuracy of the information. States are permitted to charge 
consumer reporting agencies that request child support 
arrearage information for a fee, not to exceed the actual cost.

House bill

    No provision.

Senate amendment

    States are required to have procedures to periodically 
report to consumer credit reporting agencies the name of any 
noncustodial parent who is delinquent in the payment of support 
and the amount of overdue support owed by the parent.

Conference agreement

    The House recedes to the Senate requirement that States 
periodically report to consumer credit reporting agencies.

                        41. liens (section 368)

Present law

    Federal law requires State to implement procedures under 
which liens are imposed against real and personal property for 
amounts of overdue support owed by a noncustodial parent who 
resides or owns property in the State.

House bill

    States are required to have procedures to accord full faith 
and credit and to enforce in accordance with State law a lien 
from another State. The lien must be accompanied by a 
certification from the State issuing the lien of the amount of 
overdue support and a certification that due process 
requirements have been met. The second State is not required to 
register the underlying order, unless contested on the grounds 
of mistake of fact.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

     42. State Law Authorizing Suspension of Licenses (Section 369)

Present law

    No provision.

House bill

    States have the authority to withhold, suspend, or restrict 
the use of drivers' licenses, professionals and occupational 
licenses, and recreational licenses of individuals owing past-
due support or failing, after receiving appropriate notice, to 
comply with subpoenas or warrants relating to paternity or 
child support proceedings.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

 43. Denial of Passports for Nonpayment of Child Support (Section 370)

Present law

    No provision.

House bill

    No provision.

Senate amendment

    If an individual owes arrearages in excess of $5,000 of 
child support, the Secretary of HHS must request that the State 
Department deny, revoke, or limit the individual's passport. 
State child support agencies must have procedures for 
certifying arrearages in excess of $5,000 and for notifying 
individuals who are in arrears.

Conference agreement

    The House recedes to the Senate provision of revoking 
passports for individuals owing more than $5,000 in delinquent 
child support.

       44. International Child Support Enforcement (Section 371)

Present law

    The United States has not signed any of the major treaties 
regarding international support enforcement. Pursuant to the 
Uniform Reciprocal Enforcement of Support Act (URESA), most 
States have reciprocal agreements with at least one foreign 
country regarding reciprocal enforcement of support orders. 
State do not have the power to enter into treaties.

House bill

    No provision.

Senate amendment

    The Secretary of State is authorized to negotiate 
reciprocal agreements with foreign nations on behalf of the 
States, territories, and possessions of the United States 
regarding the international enforcement of child support 
obligations.

Conference agreement

    The conference agreement follows the Senate amendment with 
substantial modification. The Secretary of State, with 
concurrence of the Secretary of HHS, is authorized to declare 
reciprocity with foreign countries having requisite procedures 
for establishing and enforcing support orders. The Secretary 
may revoke reciprocity if she determines that the enforcement 
procedures do not continue to meet the requisite criteria.
    The requirements for reciprocity include procedures in the 
foreign country for U.S. residents--available at no cost--to 
establish parentage, to establish and enforce support orders 
for children and custodial parents, and to distribute payments.
    The Secretary of HHS is required to facilitate enforcement 
services in international cases involving residents of the U.S. 
and of foreign reciprocating countries, including developing 
uniform forms and procedures, and providing information from 
the FPLS on the State of residence of the obligor.
    Where there is no Federal reciprocity agreement, States are 
permitted to enter into reciprocal agreements with foreign 
countries.
    The State plan must provide that request for services in 
international cases be treated the same as interstate cases, 
except that no application will be required and no costs will 
be assessed against the foreign country or the obligee (costs 
may be assessed at State option against the obligor).

45. Denial of Means-Tested Federal Benefits to Noncustodial Parents Who 
                 Are Delinquent in Paying Child Support

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Noncustodial parents who are more than 2 months delinquent 
in paying child support are not eligible to receive means-
tested Federal benefits.

Conference agreement

    Senate recede (no provision).

            46. Child Support Enforcement for Indian Tribes

Present law

    There are about 340 Federally recognized Indian tribes in 
the 48 contiguous States. Among these tribes there are 
approximately 130 tribal courts and 17 Courts of Indian 
Offenses. Most tribal codes authorize their courts to hear 
parentage and child support matters that involve at least one 
member of the tribe or person living on the reservation. This 
jurisdiction may be exclusive or concurrent with State court 
jurisdiction, depending on specified circumstances.

House bill

    No provision.

Senate amendment

    Requires States to make reasonable efforts to enter into 
cooperative agreements with an Indian tribe or organization if 
the tribe or organization has an established tribal court 
system to establish paternity, establish and enforce support 
orders, and enter support orders in accordance with guidelines 
established by the tribe or organization. Such agreements shall 
provide for the cooperative delivery of child support 
enforcement services in Indian country and for the forwarding 
of all funds collected by the tribe or organization to the 
State agency, or conversely, by the State agency to the tribe 
or organization, which shall distribute the funds according to 
the agreement. The DHHS Secretary in appropriate cases is 
authorized to send Federal funds directly to the tribe or 
organization.

Conference agreement

    Senate recede (no provision).

          47. financial institution data matches (section 372)

Present law

    No provision.

House bill

    No provision.

Senate amendment

    States are required to implement procedures under which the 
State child support agency shall enter into agreements with 
financial institutions doing business within the State to 
develop and operate a data match system, using automated data 
exchanges to the maximum extent feasible, in which such 
financial institutions are required to provide for each 
calendar quarter the name, address, Social Security number, and 
other identifying information for each noncustodial parent 
identified by the State who has an account at the institution 
and, in response to a notice of lien or levy, to encumber or 
surrender assets held by the institution on behalf of the 
noncustodial parent who is subject to the child support lien. 
Includes definition of the term ``financial institution.''

Conference agreement

    Conferees agree that the House recede to the Senate 
requirement that States perform data matches on information 
supplied by financial institutions in the case of parents who 
owe past-due child support and have liens against them.

  48. enforcement of orders against paternal grandparents in cases of 
                      minor parents (Section 373)

Present law

    No provision. However, Wisconsin and Hawaii have State laws 
that make grandparents financially responsible for their minor 
children's dependents.

House bill

    No provision.

Senate amendment

    States would be required to implement procedures under 
which any child support order enforced by a child support 
enforcement agency would be enforceable against the paternal 
grandparents of a minor father if the child's minor mother were 
receiving benefits from the Temporary Assistance for Needy 
Families block grant program.

Conference agreement

    The House recedes to the Senate requirement that paternal 
grandparents be held accountable for paying child support in 
the case of minor mothers with children being supported by 
benefits from the Temporary Assistance for Needy Families block 
grant, or that the maternal grandparents be held accountable 
for paying child support in the case of a minor father raising 
children who receive benefits from the Temporary Assistance for 
Needy Families block grant.

                      Subtitle H--Medical Support

 49. technical correction to erisa definition of medical child support 
                          order (section 376)

Present law

    P.L. 103-66 requires States to adopt laws to require health 
insurers and employers to enforce orders for medical and child 
support and forbids health insurers from denying coverage to 
children who are not living with the covered individual or who 
were born outside of marriage. Under P.L. 103-66, group health 
plans are required to honor ``qualified medical child support 
orders.

House bill

    This provision expands the definition of medical child 
support order in ERISA to clarify that any judgment, decree, or 
order that is issued by a court of competent jurisdiction or by 
an administrative adjudication has the force and effect of law.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

    50. Enforcement of orders for health care coverage (section 377)

Present law

    Federal law requires the Secretary to require IV-D agencies 
to petition for the inclusion of medical support as part of 
child support whenever health care coverage is available to the 
noncustodial parent at reasonable cost.

House bill

    No provision.

Senate amendment

    All orders enforced under this part must include a 
provision for health care coverage. If the noncustodial parent 
changes jobs and the new employer provides health coverage, the 
State must send notice of coverage, which shall operate to 
enroll the child in the health plan, to the new employer.

Conference agreement

    The House recedes to the Senate provision on medical care 
coverage provided to children by nonresident parents changing 
jobs.

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

 51. Grantsd to States for Access and Visitation Programs (Section 381)

                             A. In General

Present law

    In 1988, Congress authorized the Secretary to fund for FY 
1990 and FY 1991 demonstration projects by States to help 
divorcing or never-married parents cooperate with each other, 
especially in arranging for visits between the child and the 
nonresident parent.

House bill

    The bill authorizes grants to States for access and 
visitation programs including mediation, counseling, education, 
development of parenting plans, and visitation enforcement. 
Visitation enforcement can include monitoring, supervision, 
neutral drop-off and pick-up, and development of guidelines for 
visitation and alternative custody agreements. States are 
required to monitor and evaluate their programs and are given 
the authority to subcontract the program to courts, local 
public agencies, or private non-profit agencies. Programs 
operating under the grant do not have to be Statewide. Funding 
is authorized as capped spending under section IV-D of the 
Social Security Act. Projects are required to supplement rather 
than supplant State funds.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                           B. Amount of Grant

Present law

    No provision.

House bill

    The amount of the grant to a State is equal to either 90 
percent of the State expenditures during the year for access 
and visitation programs or the allotment for the State for the 
fiscal year.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                         C. Allotment to States

Present law

    No provision.

House bill

    The allotment to the State bears the same ratio to the 
amount appropriated for the fiscal year as the number of 
children living in the State with one biological parent divided 
by the national number of children living with one biological 
parent. The Administration for Children and Families must 
adjust allotments to ensure that no State is allotted less than 
$50,000 for fiscal years 1996 or 1997 or less than $100,000 for 
any year after 1997.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                        D. State Administration

Present law

    No provision.

House bill

    States may use the money to create their own programs or to 
fund grant programs with courts, local public agencies, or non-
profit organizations. The programs do not need to be Statewide. 
States must monitor, evaluate, and report on their programs in 
accord with the regulations issued by the Secretary.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                    Subtitle J--Effect of Enactment

                   52. effective dates (section 391)

Present law

    No provision.

House bill

    Except as noted in the text of the bill for specific 
provisions, the general effective date for provisions in the 
bill is October 1, 1996. However, given that many of the 
changes required by this bill must be approved by State 
Legislatures, the bill contains a grace period tied to the 
meeting schedule of State Legislatures. In any given State, the 
bill becomes effective either on October 1, 1996 or on the 
first day of the first calendar quarter after the close of the 
first regular session of the State Legislature that begins 
after the date of enactment of the bill. In the case of States 
that require a constitutional amendment to comply with the 
requirements of the bill, the grace period is extended either 1 
year after the effective date of the necessary State 
constitutional amendment or 5 years after the date of enactment 
of the bill.

Senate amendment

    Identical provision.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

Senate amendment

    The Senate amendment directs the Commissioner of Social 
Security, within sixty days of enactment, to issue a request 
for comments in the Federal Register regarding improvements in 
the disability evaluation and determination procedures for 
children under age 18. The Commissioner must review the 
comments and issue regulations implementing changes within 18 
months after enactment.

Conference agreement

    The conference agreement follows the House bill (i.e., no 
provision).

  Temporary eligibility for cash benefits for poor disabled children 
 residing in States applying alternative income eligibility standards 
                             under Medicaid

Present law

    States generally are required to provide Medicaid coverage 
for recipients of SSI. However, States may use more restrictive 
eligibility standards for Medicaid than those for SSI if they 
were using those standards on January 1, 1972 (before 
implementation of SSI). States that have chosen to apply at 
least one more restrictive standard are known as ``section 
209(b)'' States, after the section of the Social Security 
Amendments of 1972 (P.L. 92-603) that established the option. 
These States may vary in their definition of disability, or in 
their standards related to income or resources. There are 12 
section 209(b) States: Connecticut, Hawaii, Illinois, Indiana, 
Minnesota, Missouri, New Hampshire, North Carolina, North 
Dakota, Ohio, Oklahoma, and Virginia.

House bill

    The House bill provides for temporary eligibility for cash 
SSI benefits (through the end of FY 1996) for children who live 
in States that apply alternative income eligibility standards 
under Medicaid (also known as ``209(b)'' States).

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the Senate amendment 
(i.e., no provision).

  4. reduction of cash benefits payable to institutionalized children 
   whose medical costs are covered by private insurance (section 214)

Present law

    Federal law stipulates that when an individual enters a 
hospital or other medical institution in which more than half 
of the bill is paid by the Medicaid program, his or her monthly 
SSI benefit standard is reduced to $30 per month. This personal 
needs allowance is intended to pay for small personal expenses, 
with the cost of maintenance and medical care provided by the 
Medicaid program.

House bill

    Cash SSI payments to institutionalized children would be 
reduced for those whose medical costs are covered by private 
insurance.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

    Additional accountability requirements for parents or guardians

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Senate amendment requires a disabled child's 
representative payee (usually the parent) to document 
expenditures. These expenditures would be subject to increased 
review by the Social Security Administration. Effective for 
benefits paid after enactment.

Conference agreement

    The conference agreement follow the House bill (i.e., no 
provision).

                      5. Regulations (Section 215)

Present law

    Not applicable.

House bill

    The Commissioner of Social Security and the Secretary of 
HHS will prescribe necessary regulations within three months 
after enactment of this Act.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

    Examination of mental listings used to determine eligibility of 
           children for SSI benefits by reason of disability

Present law

    Section 202 of the Social Security Independence and Program 
Improvements Act of 1994 established a Childhood Disability 
Commission to study the desirability and methods of increasing 
the extent to which benefits are used in the effort to assist 
disabled children in achieving independence and engaging in 
substantial gainful activity. The Commission was also charged 
with examining the effects of the SSI program on disabled 
children and their families.

House bill

    The Childhood Disability Commission must review the mental 
listings used by the Social Security administration to 
determine child SSI eligibility. The Commission should conduct 
this investigation to ensure that the criteria in these 
listings are appropriate and that SSI eligibility is limited to 
children with serious disabilities for whom Federal assistance 
is necessary to improve the child's condition or quality of 
life.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the Senate amendment 
(i.e., no provision) due to the Childhood Disability Commission 
having completed their final report.

Limitation on payments to Puerto Rico, the U.S. Virgin Islands and Guam 
         under programs of aid to the aged, blind, or disabled

    See description in section 108 of title I of the conference 
agreement.

               Subtitle C--State Supplementation Programs

 1. repeal of maintenance of effort requirement applicable to optional 
    state programs for supplementation of ssi benefits (section 221)

Present law

    Since the beginning of the SSI program, States have had the 
option to supplement (with State funds) the Federal SSI 
payment. The purpose of section 1618 was to encourage States to 
pass along to SSI recipients the amount of any Federal SSI 
benefit increase. Under section 1618, a State that is found to 
be not in compliance with the ``pass along/maintenance of 
effort provision'' is subject to loss of its Medicaid 
reimbursements. Section 1618 allows States to comply with the 
``pass along/maintenance of effort'' provision by either 
maintaining their State supplementary payment levels at or 
above 1983 levels or by maintaining total annual expenditures 
for supplementary payments (including any Federal cost-of-
living adjustment) at a level at least equal to the prior 12-
month period, provided the State was in compliance for that 
period. In effect, section 1618 requires that once a State 
elects to provide supplementary payments it must continue to do 
so. [Sec. 1618 of the Social Security Act]

House bill

    The House bill repeals the maintenance of effort 
requirements (Sec. 1618) applicable to optional State programs 
for supplementation of SSI benefits effective date of 
enactment.

Senate amendment

    Similar to the House bill.

Conference agreement

    The conference agreement follows the Senate amendment with 
modification that the effective date is the date of enactment.

          Limited eligibility of noncitizens for SSI benefits

    See description in title IV of the conference agreement.

   Subtitle D--Studies Regarding Supplemental Security Income Program

                 1. annual report on SSI (Section 231)

Present law

    To date, the Department of Health and Human Services and 
now the Social Security Administration have collected, 
compiled, and published annual and monthly SSI data, but 
Federal law does not require an annual report on the SSI 
program.

House bill

    No provision.

Senate amendment

    The Senate amendment requires the Commissioner of Social 
Security to prepare and provide to the President and the 
Congress an annual report on the SSI program, which includes 
specified information and data. The report is due May 30 of 
each year.

Conference agreement

    The conference agreement follows the Senate amendment.

       2. Study of Disability Determination Process (Section 232)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    Within 90 days of enactment, the Commissioner must contract 
with the National Academy of Sciences or another independent 
entity to conduct a comprehensive study of the disability 
determination process for SSI and SSDI. The study must examine 
the validity, reliability and consistency with current 
scientific standards of the Listings of Impairments cited 
above.
    The study must also examine the appropriateness of the 
definitions of disability (and possible alternatives) used in 
connection with SSI and SSDI; and the operation of the 
disability determination process, including the appropriate 
method of performing comprehensive assessments of individuals 
under age 18 with physical or metal impairment.
    The Commissioner must issue interim and final reports of 
the findings and recommendations of the study within 18 months 
and 24 months, respectively, from the date of contract for the 
study.

Conference agreement

    The conference agreement follows the Senate amendment.

            3. general accounting office study (section 233)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Senate amendment requires the General Accounting Office 
to study and report on the impact of title II of the Senate 
amendment on the SSI program by January 1, 1998.

Conference agreement

    The conference agreement follows the Senate amendment with 
modification that the study also include extra expenses 
incurred by families of children receiving SSI that are not 
covered by other Federal, State, or local programs.

      Subtitle E--National Commission on the Future of Disability

                     1. Establishment (Section 241)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission is established and expenses are to be paid 
from funds appropriated to the Social Security Administration.

Conference agreement

    The conference agreement follows the Senate amendment with 
modification that there are authorized to be appropriated such 
sums as necessary to carry out the purpose of the Commission.

                        2. duties (section 242)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission must study all matters related in the 
nature, purpose and adequacy of all Federal programs for the 
disabled, and especially SSI and SSDI.
    The Commission must examine: projected growth in the number 
of individuals with disabilities and the implications for 
program planning; possible performance standards for disability 
programs; the adequacy of Federal rehabilitation research and 
training; and the adequacy of policy research available to the 
Federal government and possible improvements.
    The Commission must submit to the President and the proper 
Congressional committees recommendations and possible 
legislative proposals effecting needed program changes.

Conference agreement

    The conference agreement follows the Senate amendment.

                      3. Membership (Section 243)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission is to be composed of 15 members, appointed 
by the President and Congressional leadership. Members are to 
be chosen based on their education, training or experience, 
with consideration for representing the diversity of 
individuals with disabilities in the U.S.
    The Comptroller General must serve as an ex officio member 
of the Commission to advise on the methodology of the study. 
With the exception of the Comptroller General, no officer or 
employee of any government may serve on the Commission.
    Members are to be appointed not later than 60 days after 
enactment. Members serve for the life of the Commission, which 
will be headquartered in D.C. and meet at least quarterly.
    The Senate amendment includes a number of specific 
requirements on the Commission regarding quorums, the naming of 
chairpersons, member replacement, and benefits.

Conference agreement

    The conference agreement follows the Senate amendment with 
modification deleting the Comptroller General as a ex officio 
member and deleting the prohibition against officer or employee 
of any government being appointed to serve on the Commission. 
The conferees added that the Commission membership will also 
reflect the general interests of the business and taxpaying 
community, both of which are often impacted by Federal 
disability policy.

              4. Staff and Support Services (Section 244)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission will have a director, appointed by the 
Chair, and appropriate staff, resources, and facilities.

Conference agreement

    The conference agreement follows the Senate amendment.

                        5. Powers (Section 245)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission may conduct public hearings and obtain 
information from Federal agencies necessary to perform its 
duties.

Conference agreement

    The conference agreement follows the Senate amendment.

                        6. Reports (Section 246)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission must issue an interim report to Congress and 
the President not later than 1 year prior to terminating. A 
final public report must be submitted prior to termination.

Conference agreement

    The conference agreement follows the Senate amendment.

                      7. Termination (Section 247)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    The Commission will terminate 2 years after first having 
met and named a chair and vice chair.

Conference agreement

    The conference agreement follows the Senate amendment.

                 Subtitle F--Retirement Age Eligibility

1. Eligibility for SSI Benefits Based on Social Security Retirement Age 
                             (Section 251)

Present law

    The SSI program guarantees a minimum level of cash income 
to all aged, blind, or disabled persons with limited resources. 
The SSI program defines ``aged'' as persons age 65 and older.

House bill

    No provision.

Senate amendment

    The Senate amendment deletes references to age 65 and 
instead defines as ``aged'' those persons who reach 
``retirement age'' as defined by the Social Security program. 
The Social Security ``retirement age''--the age at which 
retired workers receive benefits that are not reduced for 
``early retirement''--gradually will rise from 65 to 67. It 
will do so in two steps. First, the retirement age will 
increase by 2 months for each year that a person was born after 
1937, until it reaches age 66 for those born in 1943 (i.e., 
those who attain age 66 in 2009). Second, it will again 
increase by 2 months for each year that a person was born after 
1954 until it reaches age 67 for those born after 1959.

Conference agreement

    The conference agreement follows the Senate amendment.

      Title IV. Restricting Welfare and Public Benefits for Aliens

  1. Statements of National Policy Concerning Welfare and Immigration 
                             (Section 400)

Present law

    No provision.

House bill

    The Congress makes the following statements concerning 
national policy with respect to welfare and immigration:
            (i) Self-sufficiency has been a basic principle of 
        U.S. immigration law since this country's earliest 
        immigration statutes;
            (ii) It continues to be the immigration policy of 
        the U.S. that aliens within the nation's borders depend 
        not on public resources, but rely on their own 
        capabilities and the resources of their families and 
        sponsors and that the availability of public benefits 
        not constitute an incentive for immigration;
            (iii) Aliens have been applying for and receiving 
        public benefits at increasing rates;
            (iv) Current eligibility rules and unenforceable 
        financial support agreements have proved incapable of 
        assuring that individual aliens not burden the public 
        benefits system;
            (v) It is a compelling government interest to enact 
        new rules for eligibility and sponsorship agreements to 
        assure that aliens become self-reliant; and
            (vi) It is a compelling government interest to 
        remove the incentive for illegal immigration provided 
        by the availability of public benefits.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill, with a 
modification regarding a State's option to choose to follow 
Federal classifications regarding eligibility.

         Subtitle A--Eligibility for Federal Benefits Programs

    2. Ineligibility of Illegal Aliens for Certain Federal Benefits 
                         Programs (Section 401)

Present law

    Current law limits alien eligibility for most major Federal 
assistance programs, including restrictions on, among other 
programs, Supplemental Security Income, Aid to Families with 
Dependent Children, housing assistance, and Food Stamps 
Programs. Current law is silent on alienage under, among other 
programs, school lunch and nutrition, Special Supplemental Food 
Program for Women, Infants, and Children (WIC), Head Start, 
migrant health centers, and the earned income tax credit.
    Under the programs with restrictions, benefits are 
generally allowed for permanent resident aliens (also referred 
to as immigrants and green card holders), refugees, asylees, 
and parolees, but benefits (other than emergency Medicaid) are 
denied to nonimmigrants (or aliens lawfully admitted as, e.g., 
tourists, students, or temporary workers) and illegal aliens. 
Benefits are permitted under AFDC, SSI, unemployment 
compensation, and nonemergency Medicaid to other aliens 
permanently residing in the U.S. under color of law (PRUCOL).

House bill

    Any alien who is not lawfully present in the U.S. shall not 
be eligible for any Federal means-tested public benefits 
program, with the exception of non-cash, in-kind emergency 
assistance, including emergency medical services. Housing-
related assistance, which allows limited assistance for 
households containing both eligible and ineligible individuals, 
remains prohibited as under current law.
    The Attorney General is to decide which aliens are lawfully 
present for purposes of benefit eligibility. In doing so, the 
Attorney General is not required to consider an alien to be 
lawfully present solely because the alien is considered to be 
permanently residing under color of law (PRUCOL) under current 
standards.

Senate amendment

    Any individual who is not lawfully present in the U.S. is 
ineligible for any Federal benefit other than: emergency 
medical services under Medicaid; short-term emergency disaster 
relief; assistance under the National School Lunch Act or the 
Child Nutrition Act of 1966; and public health assistance for 
immunizations and, if found necessary by HHS, testing for and 
treatment of communicable diseases. Similarly, States which 
administer a Federally-funded benefit program (or provide 
benefits pursuant to such a program) are not required to assist 
aliens who are not lawfully present.
    An individual is lawfully present for purposes of 
qualifying for benefits if the individual is a citizen, non-
citizen national (i.e. American Samoan), permanent resident 
alien, refugee, asylee (including an alien who has had his/her 
deportation stayed because it would return the alien to a 
country which would persecute him/her), or an alien who has 
been paroled into the U.S. by the Attorney General for at least 
1 year.
    Noncitizens are not lawfully present for the purposes of 
the SSI program merely because they are considered to be 
permanently residing under color of law (PRUCOL).

Conference agreement

    The conference agreement generally follows the House bill 
and the Senate amendment, except that aliens who are not 
lawfully present in the U.S. and nonimmigrants and aliens 
paroled into the U.S. for a period of less than 1 year as 
described below are grouped together and defined as classes 
``not qualified'' to receive most Federal public benefits. 
However, even these ``non-qualified'' aliens may continue to 
receive: short-term, in-kind, emergency disaster relief; 
emergency medical services under Medicaid; public health 
assistance for immunizations and testing and treatment to 
prevent the spread of communicable diseases; and programs 
specified by the Attorney General as necessary to protect life 
and safety, such as soup kitchens and crisis counseling. An 
exception is also made for benefits payable under title II of 
the Social Security Act for certain legal aliens. With regard 
to public housing assistance, non-qualified aliens receiving 
benefits on the date of enactment will continue to be treated 
as they are under current law. This section, however, does not 
prevent the Secretary of Housing and Urban Development or the 
Secretary of Agriculture from processing all aliens currently 
receiving housing assistance under the rules and regulations 
provided for under section 214 of the housing and Community 
Development Act of 1980.
    The conference agreement follows the Senate amendment 
regarding the definition of Federal public benefits for this 
and subsequent sections, namely: any grant, contract, loan, 
professional license, or commercial license provided by an 
agency of the United States or by appropriated funds of the 
United States; and any retirement, welfare, health, disability, 
public or assisted housing, post-secondary education, food 
assistance, unemployment benefit, or any other similar benefit 
for which payments or assistance are provided to an individual, 
household, or family by an agency of the U.S. or by 
appropriated funds of the U.S.
    The allowance for treatment of communicable diseases is 
very narrow. The conferees intend that it only apply where 
absolutely necessary to prevent the spread of such diseases. 
This is only a stop-gap measure until the deportation of a 
person or persons unlawfully here. It is not intended to 
provide authority for continued treatment of such diseases for 
a long term.
    The allowance for emergency medical services under Medicaid 
is very narrow. The conferees intend that it only apply to 
medical care that is strictly of an emergency nature, such as 
medical treatment administered in an emergency room, critical 
care unit, or intensive care unit. The conferees do not intend 
that emergency medical services include pre-natal or delivery 
care assistance that is not strictly of an emergency nature as 
specified herein.
    The intent of the conferees is that title I, part A of the 
Elementary and Secondary Education Act would not be affected by 
section 401 because the benefit is not provided to an 
individual, household, or family eligibility unit.

 3. Ineligibility of Nonimmigrants, Asylees, and Parolees for Certain 
                Federal Benefits Programs (Section 401)

                             A. In General

Present law

    The Immigration and Nationality Act lists 19 categories of 
nonimmigrant aliens, including tourists, business visitors, 
foreign students, exchange visitors, temporary workers, and 
diplomats. Aliens granted political asylum and aliens allowed 
into the U.S. under the Attorney General's discretionary parole 
power are not among the nonimmigrant categories. Nonimmigrants 
generally are denied benefits under public benefits programs 
that have alienage restrictions. By contrast, asylees and 
parolees are not disqualified.

House bill

    Aliens who are lawfully in the U.S. as nonimmigrants are 
ineligible for means-tested Federal benefits, other than the 
programs excepted below. Nonimmigrants admitted as temporary 
agricultural workers are not to be treated as nonimmigrants for 
public benefits purposes, but rather are to be treated as 
immigrants. Other aliens who also are not to be treated as 
nonimmigrants include aliens granted asylum and aliens paroled 
into the U.S. for 1 year or longer. However, aliens paroled 
into the U.S. for a period briefer than 1 year are subject to 
the nonimmigrant restrictions.

Senate amendment

    Nonimmigrant aliens are not considered lawfully present for 
Federal benefits purposes, and are thus ineligible for any 
Federal benefit other than the programs specifically excepted 
below.

Conference agreement

    The conference agreement generally follows the Senate 
amendment, as described in section 2 above.

                          B. Excepted Programs

Present law

    Of Federal programs with alien eligibility restrictions, 
nonimmigrants are eligible for emergency services under 
Medicaid. Temporary agricultural workers may receive legal 
services funded through the Legal Services Corporation with 
respect to their wages, housing, and other employment rights 
covered by their employment contract. Those nonimmigrants whose 
wages are not exempt from unemployment taxes (FUTA) may qualify 
for unemployment compensation under certain circumstances.

House bill

    Exception of the bill's blanket denial of Federal means-
tested assistance to nonimmigrants is made for Emergency 
Assistance, including non-cash emergency medical services. 
Housing-related assistance is not covered by the bill's general 
rule, but rather existing restrictions udner housing programs 
are to continue to apply. These restrictions deny assisted 
housing to nonimmigrants except as they may incidentally 
benefit as members of mixed families. However, all aliens 
granted parole are eligible for housing assistance.

Senate amendment

    Permits nonimmigrants (and all others who are not lawfully 
present) to receive: emergency medical services under Medicaid; 
short-term emergency disaster relief; school lunch and child 
nutrition assistance; and public health assistance for 
immunizations and, if found necessary by HHS, testing for and 
treatment of communicable diseases.

Conference agreement

    The conference agreement generally follows the Senate 
amendment, as described in section 2 above.
    The allowance for treatment of communicable diseases is 
very narrow. The conferees intend that it only apply where 
absolutely necessary to prevent the spread of such diseases. 
This is only a stop-gap measure until the deportation of a 
person or persons unlawfully here. It is not intended to 
provide authority for continued treatment of such diseases for 
a long term.
    The allowance for emergency medical services under Medicaid 
is very narrow. The conferees intend that it only apply to 
medical care that is strictly of an emergency nature, such as 
medical treatment administered in an emergency room, critical 
care unit, or intensive care unit. The conferees do not intend 
that emergency medical services include pre-natal or delivery 
care assistance that is not strictly of an emergency nature as 
specified herein.

              C. Treatment of Aliens Paroled Into the U.S.

Present law

    In some cases, aliens paroled into the U.S. are entitled to 
public benefits while they remain in parole status.

House bill

    Aliens paroled into the U.S. for less than 1 year are 
treated as nonimmigrants for benefits purposes (i.e., general 
ineligibility) but aliens paroled into the U.S. for longer than 
1 year are treated as immigrants (i.e. somewhat broader, but 
still limited, eligibility).

Senate amendment

    Aliens who have been paroled into the U.S. for a period of 
less than 1 year are not considered to be lawfully present for 
benefits purposes and therefore are generally ineligible for 
benefits. (Aliens who have been paroled into the U.S. for a 
period of 1 year or longer are considered to be lawfully 
present.)

Conference agreement

    The conference agreement generally follows the Senate 
amendment, as described in section 2 above.

     4. limited eligibility of lawfully present aliens (other than 
    nonimmigrants) for federal benefits (sections 402, 403 and 432)

                             A. In General

Present law

    With the exception of certain buy-in rights under Medicare, 
immigrants (or aliens lawfully admitted for permanent 
residence) are eligible for major Federal benefits, but the 
ability of some immigrants to meet the needs tests for SSI, 
AFDC, and food stamps may be affected by the sponsor-to-alien 
deeming provisions discussed below. Refugees, asylees, and 
parolees also generally are eligible. Benefits are permitted 
under AFDC, SSI, unemployment compensation, and nonemergency 
Medicaid to other aliens permanently residing in the U.S. under 
color of law (PRUCOL).

House bill

    With certain specific exceptions noted below, any alien who 
is lawfully present in the U.S. shall not be eligible for any 
of the following Federal means-tested public benefits programs 
(except as they provide non-cash, in-kind emergency services): 
Supplemental Security Income, Temporary Assistance for Needy 
Families, Social Services Block Grant (Title XX), Medicaid, and 
Food Stamps.
    Under programs other than the foregoing 5 major benefits 
programs, the eligibility of lawfully present aliens (other 
than nonimmigrants) for benefits would continue to be governed 
by current law as modified by the sponsor-to-alien deeming 
provisions discussed below. The Attorney General is to 
determine which aliens are ``lawfully present'' and is not 
bound in doing so by current interpretations of ``PRUCOL'', or 
``permanently residing under color of law.''

Senate amendment

    Except for specific classes noted below, all aliens are to 
be denied SSI.
    Except for specific classes and programs noted below, all 
aliens arriving after enactment are ineligible for all Federal 
needs-based assistance for 5 years after entry.
    Except for specific classes and programs noted below, 
States may deny noncitizens need-based assistance funded by the 
Federal Government (e.g., Temporary Assistance for Needy 
Families and similar block grants).
    For lawfully present aliens who are in the United States on 
the date of enactment and who have been here 5 years, current 
rules will continue to apply to programs other than SSI, except 
as eligibility may be affected by the State option to deny 
noncitizens needs-based assistance funded by Federal funds.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment with the following modifications:
            (1) current resident aliens and those arriving 
        after enactment (with the exception of the specific 
        classes described below) may not receive SSI or food 
        stamps until attaining citizenship or working long 
        enough (that is, at least 10 years) to qualify for 
        Social Security retirement benefits;
            (2) aliens have no entitlement to benefits;
            (3) States have the option of providing benefits to 
        lawfully present aliens under the TANF, Medicaid, or 
        Title XX programs; and
            (4) new entrants are denied benefits under all 
        Federal means-tested programs for five years after 
        their entry into the United States with the exception 
        of those programs described in section (4)(B) below.

                          B. Excepted Programs

Present law

    Not applicable (See above.)

House bill

    Only exception for non-cash, in-kind emergency services, as 
described above.

Senate amendment

    The 5-year bar on Federally-funded assistance to new 
arrivals does not apply to:
            (1) emergency medical services under Medicaid;
            (2) short-term emergency disaster relief;
            (3) assistance under the National School Lunch Act 
        or the Child Nutrition Act of 1996;
            (4) the Head Start program;
            (5) foster care and adoption assistance (but foster 
        parents or adoptive parents cannot be aliens who are 
        ineligible for benefits due to this provision);
            (6) public health assistance for immunizations and, 
        if found necessary by HHS, testing for and treatment of 
        communicable diseases; and
            (7) programs specified by the Attorney General that
                    (i) deliver services at the community 
                level,
                    (ii) do not condition assistance on the 
                recipient's income or resources, and
                    (iii) are necessary to protect life, 
                safety, or public health (e.g. soup kitchens).
    States may deny needs-based assistance funded by the 
Federal government to all noncitizens except (1) programs 
described above in 1, 2, 3, 4, 6, or 7; or (2) assistance to 
noncitizens in the classes described below.

Conference agreement

    The conference agreement follows the Senate amendment, with 
the modification that Head Start is not an excepted program but 
the following programs are excepted: (1) programs of student 
assistance under titles IV, V, IX, and X of the Higher 
Education Act of 1965, and (2) means-tested programs under the 
Elementary and Secondary Education Act of 1965.

                          C. Excepted Classes

Present law

    Not applicable. (See above.)

House bill

    Excepted are:
            (i) refugees during their first 5 years in the 
        U.S.;
            (ii) aliens who have been lawfully admitted to the 
        U.S. for permanent residence, are over 75 years of age, 
        and have resided in U.S. for at least 5 years;
            (iii) honorably discharged veterans and active duty 
        personnel or their spouses and unmarried dependent 
        children lawfully residing in any State or territory or 
        possession of the U.S.;
            (iv) aliens lawfully residing in any State or 
        Territory or Possession of the U.S. during the first 
        year of enactment; and
            (v) immigrants who are unable to comply with 
        naturalization requirements because of disability or 
        mental impairment.

Senate amendment

    Excepted are:
            (i) refugees during their first 5 years in the 
        U.S.;
            (ii) honorably discharged veterans (if determined 
        by the Attorney General to be lawfully present), and 
        their spouses and unmarried dependent children;
            (iii) aliens receiving SSI benefits on the date of 
        enactment (whose eligibility would end) will remain 
        eligible for SSI until January 1, 1997;
            (iv) asylees (including those who have had 
        deportation stayed because it would return them to a 
        country which would persecute them) during their first 
        5 years in the U.S.;
            (v) noncitizens who have worked long enough to be 
        fully insured for Social Security or disability 
        insurance benefits are exempt from the ban on SSI and 
        the prospective 5 year ban; and
            (vi) agencies may exempt individuals who have been 
        battered or subjected to extreme cruelty from the 
        denial of State-administered Federal benefits (and the 
        sponsor-alien ``deeming'' provision discussed below) if 
        the resulting denial of assistance will endanger their 
        well-being.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment so that the following classes are excepted:
            (1) refugees (during their first 5 years in the 
        U.S.), asylees (for 5 years after being adjudicated as 
        an asylee), and aliens whose deportation has been 
        withheld (during their first 5 years after their 
        deportation has been withheld);
            (2) with regard to current residents and with 
        regard to noncitizens arriving after the date of 
        enactment after their fifty year in the country, aliens 
        who have been lawfully admitted to the U.S. for 
        permanent residence and have worked at least 40 
        quarters (that is, at least 10 years which is currently 
        the criteria for eligibility for Social Security 
        retirement benefits);
            (3) honorably discharged veterans and active duty 
        personnel or their spouses and unmarried dependent 
        children lawfully residing in any State, territory, or 
        possession of the U.S.; and
            (4) lawfully present aliens receiving SSI or food 
        stamps on the date of enactment, whose eligibility 
        would end January 1, 1997.

                          D. Effective Date(s)

Present law

    Not applicable.

House bill

    In general, applies to applicants for benefits after the 
date of enactment. For current residents of the U.S. on the 
date of enactment, restriction on eligibility does not apply 
until 1 year after enactment.

Senate amendment

    In general, applies to benefits on or after the date of 
enactment. Current SSI recipients lose eligibility after 
January 1, 1997. The Attorney General must adopt regulations to 
verify the eligibility of applicants for Federal benefits no 
later than 18 months after enactment. States must have a 
verification system that complies with these regulations within 
24 months of their adoption.

Conference agreement

    The conference agreement follows the Senate amendment, with 
the modification that the eligibility of current resident 
noncitizens receiving SSI and food stamps on the date of 
enactment ends for months beginning on or after January 1, 
1997.

                            E. Reapplication

Present law

    An individual who is eligible for SSI but who thereafter 
becomes ineligible for a period of 12 consecutive months must 
reapply for benefits.

House bill

    No provision.

Senate amendment

    Individuals receiving SSI benefits on the date of enactment 
who are notified of their termination of eligibility may 
reapply for benefits within 4 months after the date of 
enactment. The Commissioner of Social Security shall determine 
within 1 year of enactment the eligibility of individuals who 
reapply.

Conference agreement

    The conference agreement follows the Senate amendment.

                     5. Notification (Section 404)

Present law

    Under regulation, individual advance written notice must be 
given of an intent to suspend, reduce, or terminate SSI 
benefits.

House bill

    Each Federal Agency that administers an affected program 
shall post information and provide general notification to the 
public and to program recipients of changes regarding 
eligibility.

Senate amendment

    The Commissioner of Social Security shall notify 
noncitizens made ineligible for SSI benefits within 3 months 
after the date of enactment.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

6. verification (sections 433 and 435) and information sharing (section 
                                  404)

Present law

    State agencies that administer most major Federal programs 
with alienage restrictions generally use the SAVE (Systematic 
Alien Verification for Entitlements) system to verify the 
immigration status of aliens applying for benefits.
    AFDC and SSI require safeguards that restrict the use of 
disclosure of information concerning applicants or recipients 
to purposes connected to the administration of needs-based 
Federal programs.

House bill

    No provision.

Senate amendment

    The Attorney General must adopt regulations to verity the 
lawful presence of applicants for Federal benefits no later 
than 18 months after enactment. States must have a verification 
system that complies with these regulations within 24 months of 
their adoption.
    The agencies which administer SSI, housing assistance 
programs under the United States Housing Act of 1937, or block 
grants for temporary assistance for needy families (the 
successor program to AFDC) are required to furnish information 
to the Immigration and Naturalization Service (INS) about 
aliens they know to be unlawfully in the United States at least 
4 times annually and upon INS request.

Conference agreement

    The conference agreement follows the Senate amendment, with 
the modification that no State or local government may be 
restricted from communicating with the INS about the 
immigration status of a noncitizen in the U.S.

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

7. ineligibility of illegal aliens for state and local public benefits 
                    programs (sections 411 and 435)

Present law

    Under Plyler v. Doe (457 U.S. 202 (1982)), States may not 
deny illegal alien children access to a public elementary 
education. However, the narrow 5-4 Supreme Court decision may 
imply that illegal aliens may be denied at least some State 
benefits and that Congress may influence the eligibility of 
illegal aliens for State benefits. Many, but not all, State 
general assistance laws currently deny illegal aliens means-
tested general assistance.

House bill

    No alien who is not lawfully present in the U.S. shall be 
eligible for any State and local means-tested public benefits 
programs (see definitions below). The only exception is 
emergency medical services.

Senate amendment

    No provision affects programs wholly administered and 
funded by State and local governments. Aliens who are not 
lawfully present are ineligible for benefits paid with Federal 
funds under State-administered programs (or paid with State 
funds pursuant to such programs).

Conference agreement

    The conference agreement follows the House bill with a 
modification that States are permitted to affirmatively enact a 
State law after the date of enactment of this Act that 
specifies that such State wished to provide State and local 
benefits to illegal aliens.
    No current State law, State constitutional provision, State 
executive order or decision of any State or Federal court shall 
provide a sufficient basis for a State to be relieved of the 
requirement to deny benefits to illegal aliens in subsection 
(a). Laws, ordinances, or executive orders passed by county, 
city or other local officials will not allow those entities to 
provide benefits to illegal aliens. Only the affirmative 
enactment of a law by a State legislature and signed by the 
Governor after the date of enactment of this Act, that 
references this provision, will meet the requirements of this 
section.
    The phrase ``affirmatively provides for such eligibility'' 
means that the State law enacted must specify that illegal 
aliens are eligible for State or local benefits as defined in 
subsection (c). Persons residing under color of law shall be 
considered to be aliens unlawfully present in the U.S. and are 
prohibited from receiving State or local benefits, as defined 
in subsection (c), regardless of the enactment of any State 
law.
    The conference agreement provides that no State or local 
government entity shall prohibit, or in any way restrict, any 
entity or official from sending to or receiving from the INS 
information regarding the immigration status of an alien or the 
presence, whereabouts, or activities of illegal aliens. It does 
not require, in and of itself, any government agency or law 
enforcement official to communicate with the INS.
    The conferees intend to give State and local officials the 
authority to communicate with the INS regarding the presence, 
whereabouts, or activities of illegal aliens. This provision is 
designed to prevent any State or local law, ordinance, 
executive order, policy, constitutional provision, or decision 
of any Federal or State court that prohibits or in any way 
restricts any communication between State and local officials 
and the INS. The conferees believe that immigration law 
enforcement is as high a priority as other aspects of Federal 
law enforcement, and that illegal aliens do not have the right 
to remain in the U.S. undetected and unapprehended.

 8. Ineligibility of Nonimmigrants for State and Local Public Benefits 
                         Programs (Section 411)

Present law

    Currently, there is no Federal law barring nonimmigrants 
from State and local needs-based programs. In general, States 
are restricted in denying assistance to nonimmigrants where the 
denial is inconsistent with the terms under which the 
nonimmigrants were admitted. Where a denial of benefits is not 
inconsistent with Federal immigration law, however, States have 
broader authority to deny benefits and States often do deny 
certain benefits to nonimmigrants. Also, aliens in most 
nonimmigrant categories generally may have difficulty 
qualifying for many State and local benefits because of 
requirements that they be State ``residents.''

House bill

    No alien who is lawfully present in the U.S. as a 
nonimmigrant shall be eligible for any State and local means-
tested public benefit programs. Exceptions for: non-cash 
emergency assistance (including emergency medical services) 
aliens granted asylum, and certain temporary agricultural 
workers who are treated as immigrants for purposes of 
application for State and local means-tested benefits (see 
below). Aliens paroled into the U.S. for a period of less than 
1 year are considered to be nonimmigrants under this part.

Senate amendment

    No provision affects programs wholly administered and 
funded by State or local governments. Nonimmigrants are not 
considered to be lawfully present for Federal benefits purposes 
and are thus ineligible for benefits paid with Federal funds 
under State-administered programs (or paid with State funds 
pursuant to such programs).

Conference agreement

    The conference agreement follows the House bill, with the 
modification that States may determine the eligibility of 
nonimmigrants and short-term parolees for State and local 
benefits.

  9. State Authority to Limit Eligibility of Immigrants for State and 
       Local Means-tested Public Benefits Programs (Section 412)

Present law

    Under Graham v. Richardson (403 U.S. 365 (1971)), States 
are barred from denying legal permanent residents from State-
funded assistance that is provided to equally needy citizens.

House bill

    States are authorized to determine eligibility requirements 
for aliens who are lawfully present in the U.S. for any State 
and local means-tested public benefit program (other than non-
cash emergency assistance, including emergency medical 
services), with exception of:
            (i) refugees during their first 5 years in the 
        U.S.;
            (ii) Aliens who have been lawfully admitted to the 
        U.S. for permanent residence, are over 75 years of age, 
        and have resided in U.S. for five years;
            (iii) Honorably discharged veterans and active duty 
        personnel or their spouses and unmarried dependent 
        children lawfully residing in any State or territory or 
        possession of the U.S.; and
            (iv) Aliens lawfully residing in any State or 
        Territory or possession of the U.S. during the first 
        year after the date of enactment. Aliens lawfully 
        present would remain eligible for emergency medical 
        services.
    In addition to enhancing State discretion to impose 
alienage restrictions, eligibility for State and local needs-
based benefits also would be restricted by application of new 
sponsor-to-alien deeming requirements discussed below.

Senate amendment

    No provision restricts benefits wholly funded by State or 
local governments, but States may use the sponsor-alien deeming 
provisions, described below, to determine whether a sponsored 
individual qualifies for assistance under such a program.

Conference agreement

    The conference agreement follows the House bill, except 
that excepted classes are modified so that they are identical 
to those excepted under (4)(C) for the purposes of the denial 
of Federal benefits for legal permanent resident noncitizens.

      Subtitle C--Attribution of Income and Affidavits of Support

   10. requirements for affidavits of support (sections 423 and 424)

                  A. When Required and Enforceability

Present law

    Administrative authorities may request an affidavit of 
support on behalf of an alien seeking permanent residency. 
Requirements for affidavits of support are not specified under 
current law.
    Under the Immigration and Nationality Act, an alien who is 
likely to become a public charge may be excluded from entry 
unless this restriction is waived, as is the case for refugees. 
By regulation and administrative practice, the State Department 
and the Immigration and Naturalization Service permit a 
prospective permanent resident alien (also immigrant or green 
card holder) who otherwise would be excluded as a public charge 
(i.e., insufficient means or prospective income) to overcome 
exclusion through an affidavit of support or similar document 
executed by a individual in the U.S. Individuals who execute 
affidavits of support commonly are called sponsors, even though 
that term also is used under immigration practice to refer to 
individuals and other entities who undertake various other acts 
(e.g., file a visa preference petition for a relative or 
prospective employee or undertake to resettle individuals who 
enter in refugee status) and who may or may not also execute 
affidavits of support. About one-half of the aliens who obtain 
legal permanent resident status have had affidavits of support 
filed on their behalf.
    Various State court decisions and decisions by immigration 
courts have held that these affidavits, as currently 
constituted, do not impose a binding obligation on the sponsor 
to reimburse State agencies providing aid to the sponsored 
alien.

House bill

    When affidavits of support are required, they must comply 
with the following:
            (A) no affidavit of support may be accepted to 
        overcome a public charge exclusion unless the affidavit 
        is executed as a contract that is legally enforceable 
        against the sponsor by the Federal government and by 
        any State or local government with respect to any 
        means-tested benefits paid to the sponsored alien 
        before the alien becomes a citizen. However, affidavits 
        of support are not to be construed to provide any right 
        to sponsored aliens;
            (B) any Federal, State or local means-tested 
        benefits paid to sponsored alien;
            (C) to qualify to execute an affidavit of support, 
        an individual must be within the definition of sponsor 
        set out in item G(1), below;
            (D) governmental entities that provide benefits may 
        seek reimbursement up to 10 years after a sponsored 
        alien last receives benefits. In the affidavit of 
        support, the sponsor must agree to submit to the 
        jurisdiction of any Federal or State court regarding 
        reimbursement of the cost of benefits received by the 
        alien; and
            (E) sponsorship extends until alien becomes a 
        citizen.

Senate amendment

    When affidavits of support are required, they must comply 
with the following:
            (A) no affidavit of support may be relied upon to 
        overcome a public charge exclusion unless the affidavit 
        is executed as a contract that is legally enforceable 
        against the sponsor by the sponsored alien and by 
        Federal, State, and local governmental entities that 
        provide the sponsored alien with means-tested 
        assistance during the support period described below;
            (B) programs for which reimbursement shall be 
        requested are: (1) AFDC or its successor; (2) Medicaid; 
        (3) Food Stamps; (4) SSI; (5) any State general 
        assistance program; and (6) any other Federal, State or 
        local need-based program. However, governmental 
        entities cannot seek reimbursement with respect to (1) 
        emergency medical services under Medicaid; (2) short-
        term emergency disaster relief; (3) assistance provided 
        under the National School Lunch Act or the Child 
        Nutrition Act of 1966; (4) the Head Start program; (5) 
        public health assistance for immunizations and, if 
        determined necessary by HHS, testing for or treatment 
        of communicable diseases; and (6) programs specified by 
        the Attorney General that (i) deliver services at the 
        community level, (ii) do not condition assistance on 
        the recipient's income or resources, and (iii) are 
        necessary to protect life, safety, or public health 
        (e.g. soup kitchens);
            (C) to qualify to execute an affidavit of support, 
        an individual must be within the definition of sponsor 
        set out in item G(1), below;
            (D) governmental entities may seek reimbursement of 
        other means-tested assistance up to 10 years after a 
        sponsored alien last receives benefits. In the 
        affidavit of support, the sponsor must agree to submit 
        to the jurisdiction of any Federal or State court 
        regarding reimbursement of the cost of benefits 
        received by the alien; and
            (E) sponsor must agree in the affidavit of support 
        to provide sufficient financial support so that the 
        sponsored individual will not become a public charge 
        until the individual has worked in the U.S. for 40 
        qualifying quarters, regardless of whether the 
        individual chooses to naturalize or not. A qualifying 
        quarter is a 3-month period (1) which counts as a 
        quarter for the purposes of social security coverage, 
        (2) during which the individual did not receive needs-
        based assistance, and (3) which occurs in a tax year 
        for which the individual had income tax liability.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment as follows:
    When affidavits of support are required, they must comply 
with the following:
            (A) no affidavit of support may be accepted to 
        overcome a public charge exclusion unless the affidavit 
        is executed as a contract that is legally enforceable 
        against the sponsor by the Federal government with 
        respect to any means-tested benefits paid to the 
        sponsored alien before the alien becomes a citizen. 
        However, affidavits of support are to to be construed 
        to provide any right to sponsored aliens;
            (B) programs for which reimbursement shall be 
        requested are: (1) AFDC or its successor; (2) Medicaid; 
        (3) Food Stamps; (4) SSI; (5) any State general 
        assistance program; and (6) any other Federal, State or 
        local need-based program. However, governmental 
        entities cannot seek reimbursement with respect to (1) 
        emergency medical services under Medicaid; (2) short-
        term emergency disaster relief; (3) assistance provided 
        under the National School Lunch Act or the Child 
        Nutrition Act of 1966; (4) payments for foster care and 
        adoption assistance under part B of title IV of the 
        Social Security Act; (5) public health assistance for 
        immunizations and, if determined necessary by HHS, 
        testing for or treatment of communicable diseases; (6) 
        programs specified by the Attorney General that (i) 
        deliver services at the community level, (ii) do no 
        condition assistance on the recipient's income or 
        resources, and (iii) are necessary to protect life, 
        safety, or public health (e.g. soup kitchens); and (7) 
        postsecondary education benefits (the conference report 
        includes a provision that, notwithstanding sections 
        427(a)(2)(A), 428B(a), 428C(b)(4)(A), and 464(c)(1)(E), 
        would prohibit a lawfully admitted alien from receiving 
        a student loan authorized under Title IV of the Higher 
        Education Act unless the loan is endorsed and cosigned 
        by the alien's sponsor or by another individual who is 
        a United States citizen. The conferees recognize that 
        this provision is not currently a feature of the Higher 
        Education Act and are aware that this requirement will 
        necessitate modifications to the regulations that 
        govern Federal student aid, and the application forms 
        through which students apply. The conferees expect the 
        Department of Education to minimize the regulatory 
        burden on students and schools that may attend this 
        provision, and instruct the Department to work closely 
        with the higher education community to develop 
        regulations and forms to implement this requirement);
            (C) to qualify to execute an affidavit of support, 
        an individual must be within the definition of sponsor 
        set out in item G(1) below;
            (D) governmental entities that provide benefits may 
        seek reimbursement up to 10 years after a sponsored 
        alien last receives benefits. In the affidavit of 
        support, the sponsor must agree to submit to the 
        jurisdiction of any Federal or State court regarding 
        reimbursement of the cost of benefits received by the 
        alien; and
            (E) sponsorship extends until alien becomes a 
        citizen.
    The allowance for treatment of communicable diseases is 
very narrow. The conferees intend that it only apply where 
absolutely necessary to prevent the spread of such diseases. 
This is only a stop-gap measure until the deportation of a 
person of persons unlawfully here. It is not intended to 
provide authority for continued treatment of such diseases for 
a long term.
    The allowance for emergency medical services under Medicaid 
is very narrow. The conferees intend that it only apply to 
medical care that is strictly of an emergency nature, such as 
medical treatment administered in an emergency room, critical 
care unit or intensive care unit. The conferees do not intend 
that emergency medical services include pre-natal or delivery 
care assistance that is not strictly of an emergency nature as 
specified herein.

                                B. Forms

Present law

    No statutory provision. The Department of Justice issues a 
form (Form I-134) that complies with current sponsorship 
guidelines.

House bill

    The Attorney General, in consultation with the Secretary of 
State and the Secretary of HHS shall formulate an affidavit of 
support within 90 days after enactment, consistent with this 
section.

Senate amendment

    The Attorney General, the Secretary of State, and the 
Secretary of HHS shall jointly formulate an affidavit of 
support with 90 days after enactment, consistent with this 
section.

Conference agreement

    The conference agreement follows the House bill.

                       C. Statutory Construction

Present law

    No provision.

House bill

    Nothing in this section shall be construed to grant third 
party beneficiary rights to any sponsored alien under an 
affidavit of support.

Senate amendment

    The Senate amendment expressly requires that affidavits of 
support permit sponsored individuals to enforce support 
obligations of their sponsors as contained in the affidavits.

Conference agreement

    The conference agreement follows the Senate amendment.

                  D. Notification of Change of Address

Present law

    There is no express requirement under current 
administrative practice that sponsors inform welfare agencies 
of a change in address. However, a sponsored alien who applies 
for benefits for which deeming is required must provide various 
information regarding the alien's sponsor.

House bill

    Until they no longer are potentially liable for 
reimbursement of benefits paid to sponsored aliens, sponsors 
must notify welfare agencies of any change of their address 
within 30 days of moving. Failure to notify may result in a 
civil penalty of up to $2000 or, if the failure occurs after 
knowledge that the sponsored alien has received a reimbursable 
benefit, of up to $5000.

Senate amendment

    Until they no longer are potentially liable for 
reimbursement of benefits paid to sponsored individuals, 
sponsors must notify the Attorney General and the State, 
district, territory or possession in which the sponsored 
individual resides of any change of their address within 30 
days of moving. Failure to notify may result in a civil penalty 
of up to $2000 or, if the failure occurs after knowledge that 
the sponsored individual has received a reimbursable benefit, 
of up to $5000.

Conference agreement

    The conference agreement follows the Senate amendment.

                      E. Reimbursement Procedures

Present law

    Various State court decisions and decisions by immigration 
courts have held that these affidavits, as currently 
constituted, do not impose a binding obligation on the sponsor 
to reimburse State agencies providing aid to the sponsored 
alien.

House bill

    If a sponsored alien receives any benefit under any means-
tested public assistance program, the appropriate Federal, 
State, or local official shall request reimbursement by the 
sponsor in the amount of such assistance. Thereafter the 
official may seek reimbursement in court if the sponsor fails 
to respond within 45 days of the request that the sponsor is 
willing to begin repayments. The official also may seek 
reimbursement through the courts within 60 days after a sponsor 
fails to comply with the terms of repayment. The Attorney 
General, in consultation with the Secretary of HHS, shall 
prescribe regulations on requesting reimbursement. No action 
may be brought later than 10 years after the alien last 
received benefits.

Senate amendment

    Upon notification that a sponsored individual has received 
a reimbursable need-based benefit (see above), the appropriate 
government official shall request reimbursement in accordance 
with the same procedures and limitations that are in the House 
bill. The Commissioner of Social Security is to prescribe 
regulations for requesting reimbursement from sponsors, and 
such regulations must include the notification of sponsors (at 
their last known address) by certified mail.

Conference agreement

    The conference agreement follows the House bill.

                            F. Jurisdiction

Present law

    State law sets forth which types of cases its courts will 
hear, subject to due process requirements on minimal 
connections between activities, people, or property within the 
State and the matter being litigated.

House bill

    No provision.

Senate amendment

    No State court shall decline for lack of jurisdiction to 
hear any action brought against a sponsor for reimbursement for 
the cost of any benefit if the sponsored individual received 
public assistance while residing in the State.

Conference agreement

    The conference agreement follows the Senate amendment. The 
conferees intend that both Federal and State courts have 
jurisdiction over reimbursement actions against a sponsor.

                             G. Definitions

Present law

    No provision.

House bill

    A ``Sponsor'' is an individual who (1) is a citizen or 
national of the U.S. or an alien who is lawfully admitted to 
the U.S. for permanent residence; (2) is at least 18 years of 
age; and (3) resides in any State.
    A ``Means-Tested Public Benefits Program'' is a program of 
public benefits of the Federal, State or local government in 
which eligibility or the amount of benefits or both are 
determined on the basis of income, resources, or financial 
need.

Senate amendment

    A ``Sponsor'' is an individual who (1) is a citizen or 
national of the U.S. or an alien who is lawfully admitted to 
the U.S. for permanent residence; (2) is at least 18 years of 
age; (3) resides in any State or U.S. territory; and (4) is 
able to demonstrate (through evidence which includes attested 
copies of tax returns for the 2 most recent tax years) the 
means to maintain an income equal to 200 percent of the Federal 
poverty line for the individual and the individual's family, 
including the person sponsored.
    ``Federal Poverty Line'' has the same meaning as in section 
673(2) of the Community Services Block Grant Act.
    A ``Qualifying Quarter'' is a 3-month period (1) in which 
the sponsored individual earned at least the minimum necessary 
for the period to count as one of 40 calendar quarters required 
to qualify for Social Security retirement benefits; (2) during 
which the sponsored individual did not receive need-based 
public assistance; and (3) which falls within a tax year for 
which the sponsored individual had income tax liability.

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment, except that the sponsor is not required to 
demonstrate the means to maintain an income equal to 200 
percent of the poverty level and the Senate recedes on the 
conditions that a qualifying quarter is (1) one in which the 
sponsored individual did not receive need-based public 
assistance, and (2) one which falls within a tax year for which 
the sponsored individual has tax liability. The sponsor must 
also be the person petitioning for the alien's admission, and 
reside in one of the 50 States or the District of Columbia.

                         H. Clerical Amendment

Present law

    Not applicable.

House bill

    A minor clerical amendment.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

                           I. Effective Date

Present law

    Not applicable.

House bill

    The changes regarding affidavits of support shall apply to 
affidavits of support executed no earlier than 60 days or later 
than 90 days after the Attorney General promulgates the form.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

    11. Attribution of sponsor's income and resources to sponsored 
                   immigrants (sections 421 and 422)

                          A. Federal Benefits

Present law

    In determining whether an alien meets the means test for 
Aid to Families with Dependent Children (AFDC), Supplemental 
Security Income (SSI), and Food Stamps, the resources and 
income of an individual who filed an affidavit of support for 
the alien (and the income and resources of the individual's 
spouse) are taken into account during a designated period after 
entry.

House bill

    During the applicable deeming period, the income and 
resources of an individual who files a binding affidavit of 
support (as required above) for an alien (and the income and 
resources of the individual's spouse) are taken into account 
under all Federal means-tested programs (with the exception of 
housing-related assistance) in determining a sponsored alien's 
neediness. Current law remains effective for aliens whose 
sponsors filed affidavits before the new affidavit requirements 
become effective (60-90 days after enactment).

Senate amendment

    During the applicable deeming period, the income and 
resources of an individual who filed an affidavit of support 
for an alien (and the income and resources of the individual's 
spouse) are to be taken into account under all Federally-funded 
means-tested programs (with the exception of the programs 
below) in determining the sponsored individual's neediness.
    Excepted programs are (1) emergency Medicaid services; (2) 
short-term emergency disaster relief; (3) assistance provided 
under the National School Lunch Act or the Child Nutrition Act 
of 1966; (4) the Head Start program; (5) public health 
assistance for immunizations and, if determined by HHS, testing 
for or treatment of communicable diseases; and (6) programs 
specified by the Attorney General that (i) deliver services at 
the community level, (ii) do not condition assistance on the 
recipient's income or resources, and (iii) are necessary to 
protect life, safety, or public health (e.g. soup kitchens).
    Individuals who are exempt from deeming include (1) 
honorably discharged legal alien veterans and their spouses and 
unmarried children; (2) refugees; (3) asylees (including aliens 
who have had their deportation stayed because it would return 
them to a country which will persecute them); and (4) 
individuals who have been battered or subjected to extreme 
cruelty, if application of deeming would endanger their well-
being.

Conference agreement

    The conference agreement follows the Senate amendment, 
except that post-secondary education is included as an excepted 
program, Head Start is not included as an excepted program, 
individuals who have worked 40 quarters as defined in this 
title are included as an excepted class, and battered 
individuals are not included as an excepted class.
    The allowance for treatment of communicable diseases is 
very narrow. The conferees intend that it only apply where 
absolutely necessary to prevent the spread of such diseases. 
This is only a stop-gap measure until the deportation of a 
person or persons unlawfully here. It is not intended to 
provide authority for continued treatment of such diseases for 
a long term.
    The allowance for emergency medical services under Medicaid 
is very narrow. The conferees intend that it only apply to 
medical care that is strictly of an emergency nature, such as 
medical treatment administered in an emergency room, critical 
care unit, or intensive care unit. The conferees do not intend 
that emergency medical services include pre-natal or delivery 
care assistance that is not strictly of an emergency nature as 
specified herein.

                B. Amount of Income and Resources Deemed

Present law

    While the offset formulas vary among the programs, the 
amount of income and resources deemed under AFDC, SSI, and Food 
Stamps is reduced by certain offsets to provide for some of the 
sponsor's own needs.

House bill

    The full income and resources of the sponsor and the 
sponsor's spouse are deemed to be that of the sponsored alien.

Senate amendment

    If an agency determines that a sponsored individual would 
not be able to obtain food and shelter without the agency's 
assistance (taking into account the income and resources 
actually provided to the individual by the sponsor and others), 
then deeming will not apply for a period of 12 months and the 
agency need take into account during this period only the 
amount of support the sponsor actually provides.
    If the address of the sponsor is unknown to the sponsored 
individual, then assistance is provided until 12 months after 
the sponsor is located.

Conference agreement

    The conference agreement follows the House bill.

                      C. Length of Deeming Period

Present law

    For AFDC and Food Stamps, sponsor-to-alien deeming applies 
to a sponsored alien seeking assistance within 3 years of 
entry. Until September 1996, sponsor-to-alien deeming applies 
to a sponsored alien seeking SSI within 5 years of entry.

House bill

    For aliens whose sponsors have filed binding affidavits of 
support as required above, the sponsors' income and resources 
are deemed to the alien until the alien becomes a citizen. 
Current law remains effective for aliens whose sponsors filed 
affidavits before the new affidavit requirements become 
effective (60-90 days after enactment).

Senate amendment

    Deeming applies until the immigrant has worked 40 
qualifying quarters (the period of time future sponsors must 
agree to support the immigrant) or for 5 years from the alien's 
arrival in the U.S. (for current noncitizens), whichever is 
longer. Deeming continues until the above requirements are met, 
regardless of whether the immigrant naturalizes or not. [A 
qualifying quarter is a 3-month period (1) in which the 
sponsored individual earned at least the minimum necessary for 
the period to count as one of 40 calendar quarters required to 
qualify for Social Security retirement benefits; (2) during 
which the sponsored individual did not receive need-based 
public assistance; and (3) which falls within a tax year for 
which the sponsored individual had income tax liability.]

Conference agreement

    The conference agreement follows the House bill, with the 
modification described in section A. above that sponsored 
noncitizens who have worked at least 40 quarters as defined in 
this title are excepted from deeming requirements.

                      D. State and Local Benefits

Present law

    The highest courts of at least 2 States have held that the 
Supreme Court decision barring State discrimination against 
legal aliens in providing State benefits (Graham v. Richardson, 
403 U.S. 365 (1971)) prohibits State sponsor-to-alien deeming 
requirements for State benefits.

House bill

    In determining the eligibility and amount of benefits of an 
alien for any State or local means-tested public benefit 
program, the income and resources of the alien shall be deemed 
to include the income and resources of their sponsor (and their 
sponsor's spouse). Housing related assistance continues to be 
treated as under current law.

Senate amendment

    With the exception of those programs exempted from all 
benefit restrictions (see above) and those aliens exempt from 
deeming requirements, States and local governments may deem a 
sponsor's income and resources (and those of the sponsor's 
spouse) to a sponsored individual in determining eligibility 
for and the amount of needs-based benefits. State deeming 
provisions must also provide for temporary assistance if the 
sponsor is not assisting the sponsored individual or cannot be 
located.

Conference agreement

    The conference agreement follows the Senate amendment, 
except that there is no provision for temporary assistance if 
the sponsor is not assisting the sponsored individual or can 
not be located.

                     Subtitle D--General Provisions

                     12. Definitions (Section 431)

                             A. In General

Present law

    Federal assistance programs that have alien eligibility 
restrictions generally reference specific classes defined in 
the Immigration and Nationality Act.

House bill

    Unless otherwise provided, the terms used in this title 
have the same meaning as defined in Section 101(a) of the 
Immigration and Nationality Act.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

                           B. Lawful Presence

Present law

    Some programs allow benefits for otherwise eligible aliens 
who are ``permanently residing under color of law (PRUCOL).'' 
This term is not defined under the Immigration and Nationality 
Act, and there has been some inconsistency in determining which 
classes of aliens fit within the PRUCOL standard.

House bill

    For purposes of this Title, the determination of whether an 
alien is lawfully present in the U.S. shall be made in 
accordance with regulations issued by the Attorney General. An 
alien shall not be considered to be lawfully present in the 
U.S. merely because the alien may be considered to be 
permanently residing in the U.S. under color of law 
(``PRUCOL'') for purposes of any particular program.

Senate amendment

    An individual is lawfully present if the individual is a 
citizen, non-citizen national (i.e. American Samoan), permanent 
resident alien, refugee, asylee (including an alien who has had 
his/her deportation stayed because it would return him/her to a 
country which would persecute him/her), or an alien who has 
been paroled into the U.S. by the Attorney General for at least 
1 year. Individuals who are not lawfully present are ineligible 
for any Federal benefit.

Conference agreement

    The conference agreement follows the Senate amendment with 
a modification that eligibility is determined by specific 
classes of aliens, not whether noncitizens are ``lawfully 
present.''

                                C. State

Present law

    There is no single definition of ``State'' for purposes of 
alien eligibility under Federal assistance programs. The 
Immigration and Nationality Act defines ``State'' to include 
the District of Columbia, Puerto Rico, Guam, and the Virgin 
Islands of the United States.

House bill

    The term ``State'' includes the District of Columbia, 
Puerto Rico, the U.S. Virgin Islands, Guam, the Northern 
Mariana Islands, and American Samoa.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

                      D. Public Benefits Programs

Present law

    No provision.

House bill

    A ``Means-Tested Program'' is a program of public benefits 
of the Federal, State, or local government in which eligibility 
for benefits under the program, or the amount of benefits, or 
both, are determined on basis of income, resources or financial 
need.
    A ``Federal Means-Tested Public Benefits Program'' is a 
means-tested public benefit program of (or contributed to by) 
the Federal Government under which the Federal Government 
establishes standards for eligibility.
    A ``State Means-Tested Public Benefits Program'' is a 
means-tested program of a State or political subdivision under 
which the State or political subdivision specifies the 
standards of eligibility, and does not include any Federal 
means-tested public benefits program.

Senate amendment

    ``Federal Benefit'' means any grant, contract loan, 
professional or commercial license, retirement benefit, health 
or disability benefit, public housing, food stamps, higher 
education benefits, unemployment benefit, or any similar 
benefit provided by a Federal agency or with appropriated 
Federal funds. (Individuals who are not lawfully present are 
ineligibility for Federal benefits.)

Conference agreement

    The conference agreement follows the House bill and the 
Senate amendment.

                     13. construction (section 434)

Present law

    Not applicable.

House bill

    Nothing in this title shall be construed as addressing 
alien eligibility for governmental programs that are not means-
tested public benefits programs.

Senate amendment

    The Senate amendment's bar to Federal benefits for 
individuals who are not lawfully present covers a wide range of 
contracts, grants, licenses, and other assistance that is not 
means-tested.

Conference agreement

    The conference agreement follows the House bill with a 
clarification that the subtitle is silent on alien eligibility 
for a basic public elementary education as determined by the 
U.S. Supreme Court in Plyler v. Doe, 457 U.S. 202 (1982).

                   Subtitle E--Conforming Amendments

  14. conforming amendments relating to assisted housing (section 441)

Present law

    No provision.

House bill

    A series of technical and conforming amendments.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

          Title V. Reductions in Federal Government Positions

                      1. reductions (section 501)

Present law

    The Department of Health and Human Services (HHS) reports 
that 118 employees in the Office of Family Assistance (OFA) 
work on AFDC and 209 (full-time equivalent positions) in 
regional offices of the Administration on Children and 
Families. The OFA employees include 30 who spend some time 
interpreting AFDC/JOBS policy and participating with States in 
State plan development.

House bill

    No provision.

Senate amendment

    Requires the HHS Secretary to reduce the Department 
workforce by 245 equivalent (FTE) positions related to the AFDC 
program (which the amendment would replace) and by 60 full-time 
equivalent managerial positions. It also requires the 
Secretaries of Agriculture, Education, Labor, HHS, and Housing 
and Urban Development to report to Congress by December 31, 
1995 on the number of (FTE) positions required to carry out 
``covered'' activities before and after enactment of the 
amendment and to reduce the number of employees by the 
difference in numbers. A covered activity is defined as one 
that the Department must carry out under a provision of this 
Act or a provision of Federal law that is amended or repealed 
by the Act.

Conference agreement

    The conference agreement follows the Senate amendment with 
a modification that the reductions take place over a two-year 
period.

           2. reductions in federal bureaucracy (section 502)

Present law

    No provision.

House bill

    No provision.

Senate amendment

    This section also provides for a reduction of 75 percent of 
the FTE positions ``at each such Department'' that relate to 
any direct spending program, or program funded through 
discretionary spending, that is converted into a block grant 
program under the Act (but it calls for this action to be taken 
by the HHS Secretary alone to each such Department).

Conference agreement

    The conference agreement follows the Senate agreement.

      3. reducing personnel in washington, d.c. area (section 503)

Present law

    No provision.

House bill

    No provision.

Senate amendment

    In making reductions the Secretaries are encouraged to 
reduce personnel in the Washington, D.C. area office before 
reducing field personnel.

Conference agreement

    The conference agreement follows the Senate amendment.

                           Title VI. Housing

                            1. ceiling rents

Present law

    The rent paid by a public housing tenant is the greater of 
30 percent of ``adjusted'' monthly income or 10 percent of 
gross income. Adjusted income deducts from annual gross income 
$480 per dependent, $400 for an elderly family, excess medical 
costs for an elderly family, and costs of child care and 
handicapped assistance. Regulations exclude some items from 
``income'' by definition, among them: irregular gifts, amounts 
that reimburse medical expenses, earnings of children, and 
payments received for the care of foster children. There is no 
ceiling on rent paid by the tenant. When a tenant's income 
rises, his/her rent increases, usually by 30 cents per extra 
dollar of income.

House bill

    No provision.

Senate amendment

    The Senate amendment would permit a public housing agency 
to establish a ceiling on monthly rent charged to a tenant. The 
amendment stipulates that the amount must reflect the 
reasonable rental value of the unit, as compared with similar 
types and sizes of dwelling units in the market area, must at 
least equal the monthly cost to operate the housing, and must 
not exceed the amount payable as rent under current law (30 
percent of adjusted income, or 10 percent of gross income).

Conference agreement

    The conference agreement follows the House bill (no 
provision).

          2. definition of adjusted income for public housing

Present law

    Under current law adjusted income deducts from annual gross 
income $480 per dependent, $400 for an elderly family, excess 
medical costs for an elderly family, and costs of child care 
and handicapped assistance. Regulations exclude some items from 
``income'' by definition, among them: irregular gifts, amounts 
that reimburse medical expenses, earnings of children, and 
payments received for the care of foster children.

House bill

    No provision.

Senate amendment

    The amendment would permit a public housing agency to 
disregard up to 20 percent of the earned income of the family, 
thus reducing its rental payment. It provides that if a housing 
agency offers this earnings incentive, the operating subsidy 
for the unit shall take no account of the resulting change in 
rental income until actual subsidies equal those that would 
have been received if all earnings were counted.

Conference agreement

    The conference agreement follows the House bill (no 
provision).

3. Failure to Comply with Other Welfare and Public Assistance Programs 
                             (Section 601)

Present law

    See item 7, below.

House bill

    No provision.

Senate amendment

    The amendment would provide that there be no reduction in 
public or assisted housing rents in response to a tenant's 
reduced income resulting from non-compliance with welfare or 
public assistance program requirements; permits reduction where 
State or local law limits the period during which benefits may 
be provided.

Conference agreement

    The conference agreement follows the Senate amendment.

                   4. Applicability to Indian Housing

Present law

    The Housing and Urban Development (HUD) Indian Housing 
Program operates through Indian housing authorities. In general 
Indian housing authorities are comparable to public housing 
authorities in structure and function.

House bill

    No provision.

Senate amendment

    Provisions of this title apply to public housing developed 
or operated pursuant to a contract between the HUD Secretary 
and an Indian housing authority.

Conference agreement

    The conference agreement follows the House bill (no 
provision).

                           5. Implementation

Present law

    No provision.

House bill

    No provision.

Senate amendment

    The Secretary must issue regulations necessary to carry out 
this title and its amendments.

Conference agreement

    The conference agreement follows the House bill (no 
provision).

     6. Demonstration Project for elimination of Take-One-Take-All 
                              Requirement

Present law

    A Federal rule requires that if a multifamily rental 
housing owner makes at least one unit available to a person 
with a section 8 certificate or voucher, the owner cannot 
refuse another section 8 participant on the sole basis that he 
has a section 8 subsidy.

House bill

    No provision.

Senate amendment

    Creates a demonstration project in Madison, Wisconsin; the 
amendment would eliminate a so-called ``take-one, take-all'' 
requirement that concerns tenant applicants with section 8 
certificates or vouchers.

Conference agreement

    The conference agreement follows the House bill (no 
provision).

  7. fraud under means-tested welfare and public assistance programs 
                             (section 602)

Present law

    If a family's adjusted cash income declines--no matter what 
the reason--its housing benefit is increased (that is, its 
rental payment is decreased, by 30 cents per dollar). This 
applies to cash income from any source, including means-tested 
benefit programs. However, the housing programs take no account 
of noncash income. Thus, if food stamp benefits decline, 
housing benefits are unaffected.

House bill

    No provision.

Senate amendment

    The amendment provides that if a person's means-tested 
benefits from a Federal, State, or local program are reduced 
because of an act of fraud, their benefits from public or 
assisted housing (and from food stamps and family assistance) 
may not be increased in response to the income loss caused by 
the penalty.

Conference agreement

    The conference agreement follows the Senate amendment.

                    8. effective date (section 603)

Present law

    Not applicable.

House bill

    No provision.

Senate amendment

    Date of enactment.

Conference agreement

    The conference agreement follows the Senate amendment.

  Title VII. Child Protection Block Grant Program and Foster Care and 
                          Adoption Assistance

               1. establishment of program (section 701)

                               A. Purpose

Present law

    Child Welfare Services, now provided for in Title IV-B of 
the Social Security Act, are designed to help States provide 
child welfare services, family preservation and community-based 
family support services, and improve State court procedures 
related to child welfare.
    Title IV-E Foster Care and Title IV-E Adoption Assistance 
are intended to help States finance foster care and adoption 
assistance maintenance payments, administration, child 
placement services, and training related to foster care and 
adoption assistance.
    The purpose of the Title IV-E Independent Living program is 
to help older foster children make the transition to 
independent living.

House bill

    The House provision replaces Title IV-B and Title IV-E of 
the Social Security Act and several additional programs (see 
below) by establishing a block grant to enable eligible States 
to carry out child protection programs to:
            (1) identify and assist families at risk of abusing 
        or neglecting their children;
            (2) operate a system for receiving reports of abuse 
        or neglect of children;
            (3) investigate families reported to abuse or 
        neglect their children;
            (4) provide support, treatment, and family 
        preservation services to families which are, or are at 
        risk of, abusing or neglecting their children;
            (5) support children who must be removed from or 
        who cannot live with their families;
            (6) make timely decisions about permanent living 
        arrangements for children who must be removed from or 
        who cannot live with their families; and
            (7) provide for continuing evaluation and 
        improvement of child protection laws, regulations, and 
        services.
    Additional programs to be replaced are: the Child Abuse 
Prevention and Treatment Act; the Abandoned Infants Assistance 
Act; adoption opportunities under the Child Abuse Prevention 
and Treatment and Adoption Reform Act; family support centers 
under the McKinney Homeless Assistance Act; grants to improve 
investigation and prosecution of child abuse cases, and 
children's advocacy centers under the Victims of Child Abuse 
Act; crisis nurseries under the Temporary Child Care and Crisis 
Nurseries Act; and Family Unification under Section 8 of the 
Housing Act.

Senate amendment

    The Senate amendment would leave intact child welfare 
services, foster care, adoption assistance and independent 
living, which are permanently authorized under Title IV-B and 
IV-E of the Social Security Act. The Senate amendment would 
reauthorize the Child Abuse Prevention and Treatment Act; 
adoption opportunities; abandoned infants assistance; missing 
children's assistance; investigation and prosecution grants, 
and children's advocacy centers under the Victims of Child 
Abuse Act. The amendment would repeal both the Temporary Child 
Care and Crisis Nurseries Act and the Family Support Centers 
under the McKinney Homeless Assistance Act.
    The Senate amendment gives the Secretary authority under 
CAPTA to make grants to the States for purposes of assisting 
the States in improving the child protective service system of 
each State in:
            (1) screening intake, assessing, and investigating 
        of reports of abuse and neglect;
            (2) creating and improving the use of 
        multidisciplinary teams and interagency protocols to 
        enhance investigations;
            (3) improving case management and delivery of 
        services;
            (4) enhancing the general child protection system 
        by improving risk and safety assessment tools and 
        protocols and automation systems;
            (5) developing, strengthening, and facilitating 
        training opportunities and requirements for individuals 
        overseeing and providing services to children and their 
        families;
            (6) developing and facilitating training protocols 
        for individuals mandated to report child abuse or 
        neglect;
            (7) developing, strengthening, and supporting child 
        abuse and neglect prevention, treatment, and research 
        programs in the public and private sectors;
            (8) developing, implementing, or operating 
        information and education programs or training programs 
        designed to improve the provision of services to 
        disabled infants with life-threatening conditions; and
            (9) developing and enhancing the capacity of 
        community-based programs to integrate shared leadership 
        strategies between parents and professionals to prevent 
        and treat child abuse and neglect at the neighborhood 
        level.

Conference agreement

    The Conference agreement establishes a child protection 
program with three major elements: open-ended entitlements for 
both foster care and adoption maintenance payments, a Child 
Protection Block Grant program focusing on prevention and 
services, and a Child and Family Services Block Grant program 
that includes research, and demonstrations as well as services. 
The first block grant (the Child Protection Block Grant) has 
two components: an entitlement component and a discretionary 
spending component. Funds for the entitlement component of the 
block grant are made available by termination of several 
existing entitlement programs. These include foster care 
administration, foster care training, adoption assistance 
administration, adoption assistance training, independent 
living, and family preservation and support.
    The second block grant established by this title is the 
Child and Family Services Block Grant, replacing the Child 
Abuse Prevention and Treatment Act, the Abandoned Infants 
Assistance Act, adoption opportunities under the Child Abuse 
Prevention and Treatment and Adoption Reform Act, family 
support centers under the McKinney Homeless Assistance Act, and 
the Temporary Child Care and Crisis Nurseries Act.
    The purpose of the Child Protection Block Grant is to:
            (1) identify and assist families at risk of abusing 
        or neglecting their children;
            (2) operate a system for receiving reports of abuse 
        or neglect of children;
            (3) improve the intake, assessment, screening, and 
        investigation of reports of abuse and neglect;
            (4) enhance the general child protective system by 
        improving risk and safety assessment tools and 
        protocols;
            (5) improve legal preparation and representation, 
        including procedures for appealing and responding to 
        appeals of substantiated reports of abuse and neglect;
            (6) provide support, treatment, and family 
        preservation services to families which are, or are at 
        risk of, abusing or neglecting their children;
            (7) support children who must be removed from or 
        who cannot live with their families;
            (8) make timely decisions about permanent living 
        arrangements for children who must be removed from or 
        who cannot live with their families;
            (9) provide for continuing evaluation and 
        improvement of child protection laws, regulations, and 
        services;
            (10) develop and facilitate training protocols for 
        individuals mandated to report child abuse or neglect; 
        and
            (11) develop and enhance the capacity of community-
        based programs to integrate shared leadership 
        strategies between parents and professionals to prevent 
        and treat child abuse and neglect at the neighborhood 
        level.

                           B. Eligible States

                             Eligible State

Present law

    To be eligible for funding under Title IV-B and IV-E, 
States must have State plans (developed jointly with the 
Secretary under title IV-B, and approved by the Secretary under 
Title IV-E).

House bill

    An ``Eligible State'' is one that, during the 3-year period 
that ends on October 1 of the fiscal year, has submitted to the 
Secretary a plan that describes how the State intends to pursue 
the purposes described above.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact. See Item 6.I., below, for 
summary of State eligibility under CAPTA.

Conference agreement

    An ``Eligible State'' is one that has submitted to the 
Secretary, not later than October 1, 1996 and every three years 
thereafter, a plan (as described below) which has been signed 
by the Chief Executive officer of the State.

                  Outline of child protection program

Present law

    States must have a child welfare services plan developed 
jointly by the Secretary and the relevant State agency which 
provides for single agency administration and which describes 
services to be provided and geographic areas where services 
will be available, among numerous other requirements. To 
receive their full allotment of incentive funds under Title IV-
B, States also must comply with extensive Federal Section 427 
child protections. The State plan also must meet many other 
requirements, such as setting forth a 5-year statement of goals 
for family preservation and family support and assuring the 
review of progress toward those goals. For foster care and 
adoption assistance, States must submit for approval a Title 
IV-E plan providing for a foster care and adoption assistance 
program and satisfying numerous requirements. The Child Abuse 
Prevention and Treatment Act requires States to have in effect 
a law for reporting known and suspected child abuse and neglect 
as well as providing for prompt investigation of child abuse 
and neglect reports, among many other requirements.

House bill

    A State plan must include the following outline of the 
State's Child Protection Program including procedures to be 
used for:
            a. receiving reports of child abuse or neglect;
            b. investigating such reports;
            c. protecting children in families in which child 
        abuse or neglect is found to have occurred;
            d. removing children from dangerous settings;
            e. protecting children in foster care;
            f. promoting timely adoptions;
            g. protecting the rights of families, using adult 
        relatives as the preferred placement for children 
        separated from their parents if such relatives meet all 
        relevant standards;
            h. preventing child abuse and neglect; and
            i. establishing and responding to citizen review 
        panels.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact. CAPTA requires a 5-year plan 
that is coordinated with the State plan for child welfare 
services and family preservation. For amendments to CAPTA 
requirements, see Section 6 of this document below.

Conference agreement

    A State plan must include information on the Child 
Protection Program including procedures to be used for:
            a. receiving and assessing reports of child abuse 
        or neglect;
            b. investigating such reports;
            c. with respect to families in which abuse or 
        neglect has been confirmed, providing services or 
        referral for services for families and children where 
        the State makes a determination that the child may 
        safely remain;
            d. protecting children by removing them from 
        dangerous settings and ensuring their placement in a 
        safe environment;
            e. providing training for individuals mandated to 
        report suspected cases of child abuse or neglect;
            f. protecting children in foster care;
            g. promoting timely adoptions;
            h. protecting the rights of families, using adult 
        relatives as the preferred placement for children 
        separated from their parents if such relatives meet all 
        relevant standards;
            i. providing services aimed at preventing child 
        abuse and neglect; and
            j. establishing and responding to citizen review 
        panels.

                             Certifications

Present law

    To receive funds under the Child Abuse Prevention and 
Treatment Act, States must have a law in effect that provides 
for reporting of known and suspected instances of child abuse 
and neglect and provides immunity from prosecution for 
reporters of abuse or neglect. States also must have a program 
to investigate allegations of abuse or neglect, must preserve 
confidentiality of records, and must provide that every abused 
or neglected child involved in a court proceeding is 
represented by a guardian ad litem. To receive funding under 
Title IV-B and IV-E of the Social Security Act, States must 
comply with certain procedures for removal of children from 
their families when necessary, and must develop case plans for 
each child that are reviewed at least every six months and 
contain specified information.

House bill

    Also included in the submitted plan must be the following 
certifications;
            a. certification of State law requiring reporting 
        of child abuse and neglect;
            b. certification of State program to investigate 
        child abuse and neglect cases;
            c. certification of State procedures for removal 
        and placement of abused or neglected children;
            d. certification of State procedures for developing 
        and reviewing written plans for permanent placement of 
        each child removed from the family that:
                    (1) specifies the goal for achieving a 
                permanent placement for the child in a timely 
                fashion;
                    (2) ensures that the plan is reviewed every 
                6 months; and
                    (3) ensures that information about the 
                child is gathered regularly and placed in the 
                case record;
            e. certification that when the State begins 
        operating under the block grant on or after October 1, 
        1995, families receiving adoption assistance payments 
        at that time continue to receive adoption assistance 
        payments;
            f. certification of State program to provide 
        Independent Living services to 16-19 year old youths 
        (at State option to age 21) who are in the foster care 
        system but have no family to turn to for support;
            g. certification of State procedures to respond to 
        reporting of medical neglect of disabled infants; and
            h. a declaration of State child welfare goals; 
        States must, within 3 years of the date of passage, 
        report quantifiable information on whether they are 
        making progress toward achieving their self-defined 
        child protection goals. (See Data Collection and 
        Reporting, item G. below).

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact. CAPTA requires several 
certifications, many of which are identical to those outlined 
for the House bill. For amendments to CAPTA requirements, see 
Section 6 of this document, below.

Conference amendment

    The following certifications must be included in the State 
plan:
            (1) certification of State law requiring reporting 
        of child abuse and neglect;
            (2) certification of State procedures for the 
        immediate screening, safety assessment, and prompt 
        investigation of such reports;
            (3) certification of State procedures for the 
        removal and placement of abused or neglected children;
            (4) certification of State laws requiring immunity 
        from prosecution under State and local laws for 
        individuals making good faith reports of suspected or 
        known cases of child abuse or neglect;
            (5) certification of State law and procedures for 
        expungement of any public records on false or 
        unsubstantiated cases;
            (6) certification of State laws and procedures 
        affording individuals an opportunity to appeal an 
        official funding of abuse or neglect;
            (7) certification of State procedures for 
        developing and reviewing written plans for permanent 
        placement of each child removed from the family that:
                    (A) specifies the goal for achieving a 
                permanent placement for the child in a timely 
                fashion;
                    (B) ensures that the plan is reviewed every 
                6 months; and
                    (C) ensures that information about the 
                child is gathered regularly and placed in the 
                case record;
            (8) certification of State program to provide 
        Independent Living Services to 16-19 year old youths 
        (at State option to age 21) who are in the foster care 
        system but have no family to turn to for support.
            (9) certification of State procedures to respond to 
        reporting of medical neglect of disabled infants;
            (10) a declaration of quantifiable State child 
        welfare goals;
            (11) with respect to fiscal years beginning on or 
        April 1, 1996, certification that--
                    (A) the State has completed an inventory of 
                all children who, before the inventory, had 
                been in foster care under the responsibility of 
                the State for 6 months or more, which 
                determined--
                            (i) the appropriateness of, and 
                        necessity for, the foster care 
                        placement;
                            (ii) whether the child could or 
                        should be returned to the parents of 
                        the child or should be freed for 
                        adoption or other permanent placement; 
                        and
                            (iii) the services necessary to 
                        facilitate the return of the child or 
                        the placement of the child for adoption 
                        or legal guardianship;
                    (B) is operating to the satisfaction of the 
                Secretary--
                            (i) a statewide information system 
                        on children who are or have been in 
                        foster care in the last year,
                            (ii) a case review system for each 
                        child receiving foster care under the 
                        supervision of the State;
                            (iii) a service program designed to 
                        help children--
                                    (I) return families from 
                                which they have been removed; 
                                or
                                    (II) be placed for 
                                adoption,
                            (iv) a preplacement preventive 
                        service program; and
                    (C) has reviewed (or, will review by 
                October 1, 1997) State policies and procedures 
                in effect for children abandoned at birth; and 
                is implementing (or, will implement by October 
                1, 1997) such policies or procedures to enable 
                permanent decisions to be made expeditiously 
                with respect to the placement of such children.
            (12) certification of reasonable efforts to prevent 
        placement of children in foster care;
            (13) certification of cooperative efforts to secure 
        an assignment to the States of any rights to support on 
        behalf of each child receiving foster care maintenance 
        payments; and
            (14) certification of confidentiality and 
        requirements for information disclosure.

                             Determinations

Present law

    State Title IV-B plans are developed jointly with the 
Secretary. State Title IV-E plans must be approved by the 
Secretary. The Secretary must approve any plan that complies 
with statutory provisions.

House bill

    The Secretary of HHS must determine whether the State plan 
includes all of the elements required above but cannot add new 
elements or review the adequacy of State procedures. The 
Secretary may not require a State to alter its child protection 
law regarding determination of the adequacy, type, and timing 
of health care.

Senate amendment

    No directly comparable provision in Title IV-B or IV-E. 
Current law would remain intact. See item 6.N., below for 
description of similar CAPTA provision on medical care.

Conference agreement

    The Secretary of HHS must determine whether the State plan 
includes the required materials and certificates (except 
material related to the certification of State procedures to 
respond to reporting of medical neglect of disabled infants). 
The Secretary cannot add new elements beyond those listed 
above.

                C. Grants to States for Child Protection

                              Entitlement

Present law

    Titles IV-B and IV-E of the Social Security Act contain 
several types of funding, including substantial entitlement 
funding, for helping States provide assistance to troubled 
families and their children.

House bill

    The block grant money is guaranteed funding to States. Each 
eligible State is entitled to receive from the Secretary an 
amount equal to the State share of the Child Protection Grant 
amount for fiscal years 1996 through 2000.

Senate amendment

    No directly comparable provision in Title IV-B or IV-E. 
Current law would remain intact. See item 6 below for 
description of similar CAPTA provision.

Conference Agreement

    As explained above, the Child Protection Block Grant 
includes a capped entitlement component for States. Each 
eligible State is entitled to receive from the Secretary an 
amount equal to the State share of the child Protection Grant 
amount which increases from $2.047 billion in 1997 to $2.766 
billion in 2002.
    The Child Protection Block Grant also includes funds from 
the discretionary program outlined below. In addition to the 
Block Grant, each eligible State is entitled to receive 
reimbursements, on as open-ended basis, for the State share of 
allowable expenditures on eligible children placed in qualified 
foster care and adoption.

                     Child protection grant amount

Present law

    Federal funds for child welfare and child protection 
activities consist both of direct spending under Titles IV-B 
and IV-E of the Social Security Act, and appropriated funds 
under Title IV-B of the Social Security Act and selected 
additional programs, including the Child Abuse Prevention and 
Treatment Act. (For additional programs, see Item 1.A. of this 
document, above.)

House bill

    The Child Protection Grant amount is composed of both a 
direct spending component and an appropriated component as 
follows: $3.930 billion in 1996, $4.195 billion in 1997, $4.507 
billion in 1998, $4.767 billion in 1999, and $5.071 billion in 
2000 in direct spending; and $486 million in each year 1996-
2000 in appropriated spending.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact. The amendment authorizes a 
total of $263 million for FY1996 and such sums as necessary for 
FY1997 through FY2000 for State grants, State demonstration 
projects, discretionary activities, and community-based family 
resources and support grants under CAPTA; adoption 
opportunities grants; and abandoned infants assistance grants.

Conference agreement

    The discretionary component of the block grant includes a 
$325 million authorization for each year 1997-2002.

                              State share

Present law

    No specific allocation formula governs the allocation of 
foster care and adoption assistance funds to States; States are 
reimbursed on an open-ended entitlement basis for eligible 
expenditures on behalf of eligible children. Independent living 
allocations to States are based on each State's share of Title 
IV-E foster children in FY1984. Family violence grants are 
awarded on the basis of State population. [Note: The family 
violence program would not be repealed by H.R. 4.] Child abuse 
State grants and community-based family resource grants are 
awarded on the basis of population under the age of 18. State 
allocations for child welfare services under Title IV-B are 
based on per capita income and population age 21 and under.

House bill

    ``State Share'' means each State receives the same 
proportion of the block grant each year as it received of 
payments to States by the Federal government for the following 
selected child welfare programs in either the average of years 
1992 through 1994 or in 1994, whichever is greater:
            a. foster care maintenance, administration, and 
        training;
            b. adoption assistance maintenance, administration, 
        and training;
            c. title IV-E independent living award;
            d. family violence and prevention services;
            e. child abuse State grants;
            f. child abuse community-based prevention grants; 
        and
            g. child welfare services.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact. See Item 6 below for 
description of similar CAPTA provision.

Conference agreement

    The conference agreement follows the House bill, except the 
selected child welfare programs on which the State share is to 
be based are:
            (1) foster care administration and training;
            (2) adoption assistance administration and 
        training;
            (3) child welfare services;
            (4) family preservation and family support; and
            (5) independent living services.
      The following table shows State percentage allocations 
under the Child Protection Block Grant.


Table 3.--State percentage allocations under the child protection block 
grant

State:                                                        Percent of
                                                         national totals
    Alabama...................................................      0.78
    Alaska....................................................      0.28
    Arizona...................................................      1.07
    Arkansas..................................................      0.91
    California................................................     18.71
    Colorado..................................................      1.27
    Connecticut...............................................      1.77
    Delaware..................................................      0.15
    District of Columbia......................................      0.55
    Florida...................................................      3.49
    Georgia...................................................      1.36
    Hawaii....................................................      0.35
    Idaho.....................................................      0.22
    Illinois..................................................      4.98
    Indiana...................................................      2.36
    Iowa......................................................      0.80
    Kansas....................................................      0.88
    Kentucky..................................................      1.60
    Louisiana.................................................      1.48
    Maine.....................................................      0.31
    Maryland..................................................      1.89
    Massachusetts.............................................      2.87
    Michigan..................................................      3.85
    Minnesota.................................................      1.14
    Mississippi...............................................      0.47
    Missouri..................................................      1.49
    Montana...................................................      0.24
    Nebraska..................................................      0.45
    Nevada....................................................      0.17
    New Hampshire.............................................      0.30
    New Jersey................................................      1.27
    New Mexico................................................      0.35
    New York..................................................     19.77
    North Carolina............................................      0.84
    North Dakota..............................................      0.26
    Ohio......................................................      4.60
    Oklahoma..................................................      0.58
    Oregon....................................................      1.06
    Pennsylvania..............................................      4.38
    Rhode Island..............................................      0.44
    South Carolina............................................      0.62
    South Dakota..............................................      0.17
    Tennessee.................................................      0.80
    Texas.....................................................      3.93
    Utah......................................................      0.41
    Vermont...................................................      0.27
    Virginia..................................................      0.93
    Washington................................................      1.01
    West Virginia.............................................      0.29
    Wisconsin.................................................      1.78
    Wyoming...................................................      0.06
                    --------------------------------------------------------------
                    ____________________________________________________

    U.S. totals...............................................    100.00

Source.--Table prepared by the Congressional Research Service based on 
data received from the U.S. Department of Health and Human Services in 
March of 1995.
---------------------------------------------------------------------------

                          Definition of State

Present law

    Under Titles IV-B and IV-E of the Social Security Act, 
``State'' means the 50 States and the District of Columbia. The 
Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, and 
American Samoa receive funds through set-asides and under 
special rules.

House bill

    ``State'' includes the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin 
Islands, Guam, and American Samoa.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact.

Conference agreement

    ``State''includes the several States and the District of 
Columbia. The territories will carry out a child protection 
program in accordance with this part; entitlement funding is 
provided under section 1108 of the Social Security Act.

                              Use of grant

Present law

    Funds must be used for: ``protecting and promoting the 
welfare of children, preventing unnecessary separation of 
children from their families, restoring children to their 
families if they have been removed, family preservation 
services, community-based family support services to promote 
the well-being of children and families and to increase 
parents' confidence and competence.'' Foster care maintenance 
and adoption assistance payments are an open-ended entitlement 
to individuals.

House bill

    A State to which funds are paid under this section may use 
such funds in any manner that the State deems appropriate to 
accomplish the purposes of this part.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact. CAPTA grants can be used for 
improving child protective services, investigating and 
reporting of abuse and neglect, case management and delivery of 
services to children and families, training for service 
providers and abuse reporters, demonstration projects, kinship 
care arrangements, abuse and neglect prevention, and similar 
activities.

Conference agreement

    The conference agreement follows the House bill. A State to 
which funds are paid under this section may use such funds in 
any manner that the State deems appropriate to accomplish the 
purposes of this part.

                           Transfer of funds

Present law

    No provision.

House bill

    In FY1998 and succeeding years, States may transfer up to 
30 percent of funds paid under this section for activities 
under any or all of the following: the temporary assistance for 
needy families block grant; the social services block grant 
under Title XX of the Social Security Act; the child care and 
development block grant; and any food and nutrition or 
employment and training grants enacted during the 104th 
Congress. Rules of the recipient program will apply to the 
transferred funds. Funds may be transferred into the Child 
Protection Block Grant from other block grants and are then 
subject to the rules of this part.

Senate amendment

    No provision.

Conference agreement

    Conferees agree that no funds can be transferred out of the 
block grant.

                         Timing of expenditures

Present law

    Provisions vary under programs to be replaced. Under Title 
IV-E, States have up to two fiscal years in which to claim 
reimbursement for expenditures.

House bill

    A State to which funds are paid under this section for a 
fiscal year shall expend such funds not later than the end of 
the immediately succeeding fiscal year.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact.

Conference agreement

    The conference agreement follows the House bill.

                         Rule of interpretation

Present law

    For-profit foster care providers are not eligible for 
Federal funding under Title IV-E.

House bill

    Nothing in this act shall preclude for-profit short- and 
long-term foster care facilities from being eligible to receive 
funds from this block grant.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

                           Timing of payments

Present law

    Under Title IV-B, the Secretary makes payments to States 
periodically. Under Title IV-E, the Secretary reimburses States 
for expenditures on a quarterly basis.

House bill

    The Secretary must make payments on a quarterly basis.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact.

Conference agreement

    The conference agreement follows the House bill.

                               Penalties

Present law

    States that do not comply with Section 427 child 
protections may not receive their share of Title IV-B 
appropriations above $141 million. However, effective April 1, 
1996, these protections are to become State plan requirements 
and the incentive funding mechanism will no longer be in 
effect. Section 1123 of the Social Security Act requires the 
Secretary to establish by regulation a new Federal review 
system for child welfare, which would allow penalties for 
misuse of funds.

House bill

    The Secretary must reduce amounts otherwise payable to a 
State by any amount which an audit conducted under the Single 
Audit Act finds has been used in violation of this part. The 
Secretary, however, shall not reduce any quarterly payment by 
more than 25 percent. The amount of misspent funds will be 
withheld from the State's payments during the following year, 
if necessary, to recover the full amount of the penalty.
    If an audit conducted pursuant to the Single Audit Act 
finds that a State has reduced its level of expenditures in FY 
1996 or 1997 below its level of non-Federal expenditures in FY 
1995 under Title IV-B or Title IV-E, the Secretary must reduce 
subsequent amounts otherwise payable to the State by an amount 
equal to the difference between State spending in FY 1995 and 
the current year.
    The Secretary must reduce by 3 percent the amount otherwise 
payable to a State for a fiscal year if the State has not 
submitted a report required (see item 7 below) for the 
immediately preceding fiscal year within 6 months after the end 
of the year. The penalty may be rescinded if the report is 
submitted within 12 months after the end of the year.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact.

Conference agreement

    Conferees agree to maintain the detailed child protections 
now found in section 427 of the Social Security Act. Conferees 
also agree that an additional penalty equal to 5 percent of a 
State's block grant amount will be imposed in cases where the 
Secretary finds that funds have been spent in violation of the 
part, or where a State has failed to meet its maintenance-of-
effort requirement. States will be required to maintain 100 
percent of their FY 1994 non-Federal expenditure level in FY 
1997 and 1998, and 75 percent of such expenditures in 
subsequent years.
    The agreement provides that the Secretary may not impose a 
penalty if she determines that the State has reasonable cause 
for failing to comply with the requirement. Further, a State 
must be informed before any penalty is imposed and be given an 
opportunity to enter into a corrective compliance plan. The 
agreement provides a series of deadlines for submission of such 
corrective compliance plans and review by the Federal 
government.

                    Limitation on Federal authority

Present law

    See above.

House bill

    Except as expressly provided in this part, the Secretary 
may not regulate the conduct of States under this part or 
enforce any provision of this part.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact.

Conference agreement

    The conference agreement follows the House bill with a 
modification to refer to authority expressly provided in the 
Social Security Act

                     D. Child Protection Standards

Present law

    In order to receive its full share of appropriations for 
child welfare services under subpart 1 of Title IV-B, each 
State must meet section 427 protections, including requirements 
that it: conduct an inventory of children in foster care; 
operate a tracking system for all children in foster care; 
operate a case review system for all children in foster care; 
and conduct a service program to reunite foster children with 
their families if appropriate, or be placed for adoption or 
another permanent placement. In addition, if Federal 
appropriations for the program reach $325 million for two 
consecutive years, States also must implement a preplacement 
preventive services program to help children remain with their 
families. [This funding level has never been reached.] 
Effective April 1, 1996, these provisions are scheduled to 
become mandatory State plan requirements, rather than funding 
incentives, under legislation enacted on Oct. 31, 1994 (P.L. 
103-432). States also will be required to review their policies 
and procedures regarding abandoned children and to implement 
policies and procedures considered necessary to enable 
permanent decisions to be made expeditiously with regard to 
placement of such children.

House bill

    The following standards are included in the bill to 
indicate what States must do to assure the protection of 
children and to provide guidance to the Citizen Review Panels:
            a. the primary standard by which child welfare 
        system shall be judged is the protection of children.
            b. each State shall investigate reports of abuse 
        and neglect promptly;
            c. children removed from their homes shall have a 
        permanency plan and a dispositional hearing within 3 
        months after a fact-finding hearing' and
            d. all child protection cases with an out-of-home 
        placement shall be reviewed every 6 months unless the 
        child is already in a long-term placement.
    A State receiving funds from this block grant may consider: 
establishing a new type of permanent foster care placement 
referred to as ``kinship care'' in which adult relatives would 
be the preferred placement option if they met all relevant 
standards, and could receive needs-payments and supportive 
services; and, in placing children for adoption, giving 
preference to adult relatives who meet applicable standards.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact. CAPTA requires a number of 
certifications by the State, including several that are similar 
to standards in the House block grant. For details see Item 
6.I. below.
    No directly comparable provision in Titles IV-B or IV-E. 
Under CAPTA, the Secretary may award grants to public entities 
to develop or implement procedures using adult relatives as the 
preferred placement for children removed from their home; see 
item 6.H. below.

Conference agreement

    In order for a State to receive any funds under this part, 
such State must certify that it has conducted an inventory of 
children in foster care; is operating a tracking system for all 
children in foster care; is operating a care review for all 
children in foster care, and is conducting a service program to 
reunite foster children with their families if appropriate, or 
be placed for adoption or another permanent placement. States 
will also be required to review their policies and procedures 
regarding abandoned children and to implement policies and 
procedures considered necessary to enable permanent decisions 
to be made expeditiously with regard to placement of such 
children. These child protection standards are identical to 
those found in section 427 of current law.

                       E. Citizens Review Panels

Present law

    No provision.

House bill

    Each State to which funds are paid under this part must 
have at least three Citizen Review Panels. Each panel is to be 
broadly representative of the community farm which it is drawn.
    The Panels, which must meet at least quarterly, are charged 
with the responsibility of reviewing cases from the child 
welfare system to determine whether State and local agencies 
receiving funds under this program are carrying out activities 
in accord with the State plan, are achieving the child 
protection standards, and are meeting any other child welfare 
criteria that the Panels consider important.
    The members and staff of any Panel must not disclose to any 
person or government agency any information about specific 
cases. States must afford a Panel access to any information on 
any case that the Panel desires to review, and shall provide 
the Panels with staff assistance in performing their duties.
    Panels must produce a public report after each meeting and 
States must include information in their annual report 
detailing their responses to the panel report and 
recommendations. (See Data Collection and Reporting, item G. 
below.)

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the House bill.

     F. Clearinghouse and Hotline for Missing and Runaway Children

Present law

    The Missing Children's Assistance Act, authorized as part 
of the Juvenile Justice and Delinquency Prevention Act, 
authorizes a toll-free hotline and national clearinghouse to 
collect and disseminate information about missing children.

House bill

    The Attorney General of the United States shall have the 
authority to establish and operate a national information 
clearinghouse, including a 24-hour toll free telephone hotline, 
for information on missing children cases. An appropriation not 
to exceed $7 million per fiscal year is authorized for this 
purpose.

Senate amendment

    Reauthorizes the Missing Children's Assistance Act through 
FY 1997 (see Item 12.A. of this document, below).

Conference agreement

    The House recedes.

                    G. Data Collection and Reporting

Present law

    States are not required to report specific child welfare 
data. Section 479 requires the Secretary to publish regulations 
that implement a system for the collection of adoption and 
foster care data. These regulations were published as final on 
Dec. 22, 1993, and are mandatory for all States. In addition, 
section 13713 of the Omnibus Budget Reconciliation Act of 1993 
(P.L. 103-66) makes available enhanced Federal matching funds 
(75 percent Federal match instead of 50 percent) for planning, 
design, development and installation of statewide automated 
child welfare information systems. Regulations governing these 
systems were published on Dec. 22, 1993, and May 19, 1995. The 
enhanced match expires after Sept. 30, 1996.

House bill

    Three years after the effective date and annually 
thereafter, each State to which funds are paid under this part 
must submit to the Secretary a report containing quantitative 
information on the extent to which the State is making progress 
toward its child protection program goals (as described above).
    Each State to which funds are paid under this part must 
annually submit to the Secretary of Health and Human Services a 
report that includes the following annual statistics:
            (1) the number of children reported to the State 
        during the year as abused or neglected;
            (2) of the number of reported cases of abuse or 
        neglect, the number that were substantiated;
            (3) of the number of reported cases that were 
        substantiated, (a) the number that received no services 
        under the State program funded under this part; (b) the 
        number that received services under the State program 
        funded under this part; and (c) the number removed from 
        their families;
            (4) the number of families that received preventive 
        services from the State;
            (5) the number of children who entered foster care 
        under the responsibility of the State;
            (6) the number of children who exited foster care 
        under the responsibility of the State;
            (7) types of foster care placements made by State 
        and the number of children in each type of care;
            (8) average length of foster care placements made 
        by State;
            (9) the age, ethnicity, gender, and family income 
        of children placed in foster care under the 
        responsibility of the State;
            (10) the number of children in foster care for whom 
        the State has the goal of adoption;
            (11) the number of children in foster care under 
        the responsibility of the State who were freed for 
        adoption;
            (12) the number of children in foster care under 
        the responsibility of the State whose adoptions were 
        finalized;
            (13) the number of disrupted adoptions in the 
        State;
            (14) quantitative measurements showing whether the 
        State is making progress toward the child protection 
        goals identified by the State;
            (15) the number of infants abandoned during the 
        year, the number of these infants who were adopted, and 
        the length of time between abandonment and legal 
        adoption;
            (16) the number of deaths of children occurring 
        while said children were in custody of the State;
            (17) the number of deaths of children resulting 
        from child abuse or neglect;
            (18) the number of children served by the State 
        Independent Living program;
            (19) other information which the Secretary and a 
        majority of the State agree is appropriate to collect 
        for purposes of this part; and
            (20) the response of the State to findings and 
        recommendations of the citizen review panels.
    States may fulfill the data collection and reporting 
requirements by collecting the required information on either 
individual children and families receiving child protection 
services or by using scientific statistical sampling methods.
    Within 6 months after the end of each fiscal year, the 
Secretary must prepare an annual report on State data for 
Congress and the public.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law would remain intact. States receiving CAPTA grants 
must submit annual data reports to the Secretary (see Item 6.I 
below). CAPTA requires States to report 10 data elements, many 
of which are substantially similar to the House reporting 
requirements.
    Requires the Secretary, in administering CAPTA, to prepare 
annual reports, based on State data, for Congress and the 
national information clearinghouse on child abuse and neglect. 
(See Item 6.I below.) Requires Secretary in 6 months after 
receiving State reports to prepare and submit annual report to 
Congress.

Conference agreement

    The Senate recedes with an amendment mandating two sets of 
data to be collected for child protection programs. There is a 
single data collection and reporting system required for child 
protection programs. Part one of the mandated data reporting 
requires States to report the following data every 6 months: 
(1) whether the child received services under the program 
funded under this part; (2) the age, race, gender, and family 
income of the parents and child; (3) county of residence; (4) 
whether the child was removed from the family; (5) whether the 
child entered foster care under the responsibility of the 
State; (6) the type of out of home care in which the child was 
placed (including institution, group home, family foster care, 
or relative placement); (7) the child's permanency planning 
goal, such as reunification, kinship care, adoption, or 
independent living; (8) whether the child was freed for 
adoption; and (9) whether the child existed from foster care, 
and, if so, whether the exit was due to return to the family, 
adoption, independent living, or death.
    In addition, the States must submit the following aggregate 
data annually: (1) the number of children reported to the State 
during the year as alleged victims of abuse or neglect; (2) of 
the number of children for whom an investigation of alleged 
maltreatment resulted in a determination of substantiated abuse 
or neglect, the number for whom maltreatment was 
unsubstantiated, and the number determined to be false; (3) the 
number of families that received preventive services; (4) the 
number of infants abandoned during the year, the number of 
these infants who were adopted, and the length of time between 
abandonment and adoption; (5) the number of deaths of children 
occurring while the children were in custody of the State; (6) 
the number of deaths of children resulting from child abuse and 
neglect, including those which occurred while the child was in 
the custody of the State; (7) the number of children served by 
the State Independent Living program; (8) quantitative 
measurements showing whether the State is making progress 
toward the child protection goals identified by the State; (9) 
the types of maltreatment suffered by victims of abuse and 
neglect; (10) the number of abused and neglected children 
receiving services; (11) the average length of stay in out-of-
home care; (12) the response of the State to findings and 
recommendations of the citizen review panels; and (13) other 
information which the Secretary and a majority of the States 
agree is appropriate to collect for the purposes of this part. 
States may be required to report other information approved by 
the Secretary and agreed to by a majority of States, including 
information necessary to assure a smooth transition from AFCARS 
and NCANDS to the data reporting system required by this 
legislation. The Secretary will define by regulation the 
information required to be included in State data reports. 
States may comply with requirements for precise numerical 
information by using scientifically acceptable sampling 
methods. The Secretary will report annually to Congress and the 
public on information provided in State data reports.

                        H. Research and Training

Present law

    Current law authorizes appropriations for research under 
Title IV-B of the Social Security Act and the Child Abuse 
Prevention and Treatment Act. In FY 1995, $6 million is 
appropriated under Title IV-B and $9 million under CAPTA.

House bill

    An appropriation of $10 million per year is authorized for 
the Secretary to spend at her discretion on research and 
training in child welfare.

Senate amendment

    No directly comparable provision in Titles IV-B or IV-E. 
Current law under Title IV-B would remain intact, and CAPTA 
would be reauthorized. Although CAPTA has no separate 
authorization for research and training, the Secretary has 
discretionary authority to conduct research and training. For 
details see Item 6.G., below.

Conference agreement

    The Senate recedes with an amendment establishing specific 
research activities, authorized in the Child and Family 
Services Block Grant, to be undertaken by the Secretary of the 
Department of Health and Human Services. Under this part, $10 
million are authorized and appropriated for each of FYs 1996-
2002 for the Secretary to conduct child welfare research.

            I. National Random Sample Study of Child Welfare

Present law

    No provision.

House bill

    The Secretary is provided with $6 million per year for 
fiscal years 1996-2000 to conduct a national random-sample 
study of child welfare. The study will have a longitudinal 
component, yield data reliable at the State level for as many 
States as the Secretary determines is feasible, and should 
alternate data collection in small States from year-to-year to 
yield an occasional picture of child welfare in small States. 
The Secretary has discretion in drawing the sample and in 
selecting measures, but should carefully consider selecting the 
sample from all cases of confirmed abuse and neglect and then 
following each case over several years while obtaining such 
measures as type of abuse or neglect involved, frequency of 
contact with agencies, whether the child was separated from the 
family, types and characteristics of out-of-home placements, 
number of placements, and average length of placement. The 
Secretary must prepare occasional reports on this study and 
make them available to the public. The reports should summarize 
and compare the results of this study with the data reported by 
States. Written reports or tapes of the raw data from the study 
should be made available to the public at a fee the Secretary 
thinks appropriate.

Senate amendment

    No provision.

Conference agreement

    The Senate recedes. The provisions mandating the national 
random sample study of child welfare are contained in the Child 
and Family Services Block Grant. Mandatory funds will be 
available to conduct the study equal to $6 million per year for 
FY 1996-FY 2002. In addition, $10 million are authorized and 
appropriated for each of FYS 1996-1998 for the Secretary to 
carry out the State court assessment and improvement program 
authorized under section 13712 of the Omnibus Budget 
Reconciliation Act of 1993. These funds may be expended no 
later than September 30, 1999.

             J. Removal of Barriers to Interethnic Adoption

Present law

    State law governs adoption and foster care placement. Forty 
three States permit race matching either in regulation, 
statute, policy, or practice. The Metzenbaum Multiethnic 
Placement Act of 1994 permits States to consider race and 
ethnicity in selecting a foster care or adoptive home, but 
States cannot delay or deny the placement of the child solely 
on the basis of race, color or national origin.
    Noncompliance with the Metzenbaum Act is deemed a violation 
of title VI of the Civil Rights Act.

House bill

    Section 553 of the Howard M. Metenbaum Multiethnic 
Placement Act of 1994 is repealed. (See conforming amendments, 
item 2 below.) In addition, a State or other entity that 
receives Federal assistance may not deny to any person the 
opportunity to become an adoptive or a foster parent on the 
basis of the race, color, or national origin of the person or 
of the child involved. Similarly, no State or other entity 
receiving Federal funds can delay or deny the placement of a 
child for adoption or foster care, or otherwise discriminate in 
making a placement decision, on the basis of the race, color, 
or national origin of the adoptive or foster parent or the 
child involved.
    A State or other entity that violates this provision during 
a period shall remit to the Secretary all funds that were paid 
to the State or entity during the period.
    An action under this paragraph may not be brought more than 
2 years after the date the alleged violation occurred.

Senate amendment

    No provision.

Conference agreement

    The Senate recedes with an amendment modifying the 
sanctions which can be imposed on a State. This provision is 
authorized under the Child and Family Services Block Grant. If 
the State is found to be in violation of the provisions of this 
section, the Secretary will notify the State of the violation. 
The State will then have 90 days to correct the violation. If 
the violation continues after the 90 day period, the Secretary 
will reduce the amount allotted to a State for the next fiscal 
year under Part B of title IV of the Social Security Act by 10 
percent. The conferees express their strong desire that States 
use some of the funding under this part to recruit loving 
families from all racial and national origin backgrounds from 
which social service departments may choose when it becomes 
necessary to find foster care and adoptive placements for 
children.
    While agencies must obviously make placements based on the 
best interests of children, such family recruitment by the 
States may not cause a delay or prevent the timely placement of 
a child in an adoptive or pre-adoptive home.

                 2. Conforming Amendments (Section 702)

Present law

    No provision.

House bill

    This section contains technical amendments that conform 
provisions of the bill to Titles IV-D and XVI of the Social 
Security Act, and to the Omnibus Budget Reconciliation Act of 
1986, and provide for the repeal of Section 553 of the Howard 
M. Metzenbaum Multiethnic Placement Act of 1994, Title IV-E of 
the Social Security Act, section 13712 of the Omnibus Budget 
Reconciliation Act of 1993, and subtitle C of Title 17 of the 
Violent Crime Control and Law Enforcement Act of 1994. (Under 
section 371 of Title III-C of the House bill, the following 
additional programs are repealed related to the Child 
Protection Block Grant: abandoned infants assistance, the Child 
Abuse Prevention and Treatment Act, adoption opportunities, 
crisis nurseries, mission children's assistance, family support 
centers, certain activities under the Victims of Child Abuse 
Act, and Family Unification under the Housing Act.)

Senate amendment

    No provision.

Conference agreement

    The conference agreement requires the Secretary of HHS to 
submit, within 90 days of enactment, a legislative proposal 
providing necessary technical and conforming amendments.
    The agreement also repeals Title IV-E of the Social 
Security Act, and makes conforming amendments to Title XVI and 
Title IV-D of the Social Security Act, section 9442 of the 
Omnibus Budget Reconciliation Act of 1986, and section 1123 of 
the Social Security Act.

  3. continued application of current standards under medicaid program

Present law

    Children for whom Federal foster care payments are made are 
deemed to be ``dependent children'' for purposes of Medicaid 
eligibility.

House bill

    Conforms Medicaid coverage of this title with title I of 
the House bill. In general, the Medicaid provision is designed 
to ensure that individuals who receive Medicaid coverage under 
current law will continue to be covered after passage of H.R. 
4. Here is a summary of Medicaid provision from title I: ``An 
individual who on enactment was receiving AFDC, was eligible 
for medical assistance under the State plan under this title, 
and would be eligible to receive aid or assistance under a 
State plan approved under part A of title IV but for the 
prohibition on grant funds being used to provide assistance to 
noncitizens, minor unwed mothers or their children, or children 
born to families already on welfare, would continue to be 
eligible for Medicaid. Families leaving welfare for work would 
also continue to receive the 1-year Medicaid transition 
benefit.''

Senate amendment

    The Senate amendment is similar to the House bill except 
that States have flexibility to be more restrictive in awarding 
Medicaid coverage than under current law.

Conference agreement

    The conference agreement changes both the House bill and 
the Senate amendment because of pending changes in Medicaid 
legislation. To conform this bill with the pending Medicaid 
legislation, conferees agree that States will determine 
Medicaid eligibility for recipients of block grant assistance. 
This provision is found in section 114 of Title I of the 
conference bill.

                    4. effective date (section 703)

Present law

    No provision.

House bill

    Under otherwise indicated in particular sections of the 
bill, the amendments and repeals made by this title take effect 
on October 1, 1995. The amendments shall not apply with respect 
to powers, duties, functions, rights, claims, penalties, or 
obligations applicable to aid or services provided before the 
effective date, or to administrative actions and proceedings 
commenced, or authorized to be commenced, before the effective 
date.

Senate amendment

    No provision.

Conference agreement

    The amendments will take effect on Oct. 1, 1996, except for 
provisions that authorize and appropriate funds in FY 1996 for 
research and count improvements, and requiring the Secretary to 
prepare technical and conforming amendments. The agreement 
establishes transition rules for pending claims, actions and 
proceedings, and relating to the closing out of accounts for 
programs that are terminated or substantially modified.

5. sense of the congress regarding timely adoption of children (section 
                                  704)

Present law

    No provision.

House bill

    It is the sense of the Congress that:
            (1) too many adoptable children are spending too 
        much time in foster care;
            (2) States must increase the number of waiting 
        children being adopted in a timely manner;
            (3) Studies have shown that States would save 
        significant amounts of money if they offered incentives 
        to families to adopt special needs children who would 
        otherwise require foster care;
            (4) States should allocate sufficient funds for 
        adoption and medical assistance to encourage families 
        to adopt children who are languishing in foster care;
            (5) States should offer incentives for families 
        that adopt special needs children to make adoption more 
        affordable for middle-income families;
            (6) States should strive to provide children 
        removed from their biological parents with a single 
        foster care placement and case team and to conclude an 
        adoption of the child, when adoption is the goal, 
        within one year of the child's placement in foster 
        care; and
            (7) States should participate in programs to enable 
        maximum visibility of waiting children to potential 
        parents, including a nationwide computer network to 
        disseminate information on children eligible for 
        adoption.

Senate amendment

    Title VIII of the Senate amendment addresses adoption 
issues. See Section 13, below.

Conference agreement

    The Senate recedes.

 6. Child Abuse Prevention and Treatment; General Program (Section 751)

                              A. Reference

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Provides that, unless otherwise indicated, any amendments 
or repeals should be considered to apply to the Child Abuse 
Prevention and Treatment Act (CAPTA).

Conference agreement

    The House recedes with an amendment renaming this chapter 
as Child and Family Services Block Grant.

                              B. Findings

Present law

    Section 2 of CAPTA contains findings with regard to the 
scope of child abuse and neglect, the need for a comprehensive 
approach to address child abuse and neglect, various goals with 
regard to national policy, and the appropriate Federal role in 
this area.

House bill

    No provision.

Senate amendment

    Amends section 2 to update findings with regard to the 
scope of child abuse and neglect and to make minor changes, 
including change of references from ``child protection'' to 
``child and family protection.''

Conference agreement

    The Senate recedes with an amendment restructuring the 
findings to reflect the consolidation and blending of other 
programs.

                  C. Office of Child Abuse and Neglect

Present law

    Section 101 of CAPTA requires the Secretary of HHS to 
establish a National Center on Child Abuse and Neglect.

House bill

    No provision.

Senate amendment

    Amends section 101 to allow the Secretary of HHS to 
establish an Office on Child Abuse and Neglect which would be 
responsible for executing and coordinating the functions and 
activities authorized by CAPTA. Repeals current mandate for a 
National Center on Child Abuse and Neglect.

Conference agreement

    The Senate recedes.

              D. Advisory Board on Child Abuse and Neglect

Present law

    Section 102 of CAPTA requires the Secretary to appoint a 
U.S. Advisory Board on Child Abuse and Neglect, and specifies 
the composition and duties of the board.

House bill

    No provision.

Senate amendment

    Amends section 102 by repealing current mandate for a U.S. 
Advisory Board on Child Abuse and Neglect, and instead allows 
the Secretary of HHS to appoint an advisory board to make 
recommendations concerning child abuse and neglect issues. 
Duties of the new board would include making recommendations on 
coordination of Federal, State and local child abuse and 
neglect activities with similar activities regarding family 
violence at those levels; specific modification needed in 
Federal and State laws to reduce the number of unfounded or 
unsubstantiated cases of child maltreatment; and modifications 
needed to facilitate coordinated data collection with respect 
to child protection and child welfare.

Conference agreement

    The Senate recedes with an amendment giving the Secretary 
authority to appoint an advisory board to: provide 
recommendations on coordinating Federal, State, and local child 
abuse and neglect activities at the State level with similar 
activities at the State and local level pertaining to family 
violence; consider specific modifications needed in State laws 
and programs to reduce the number of unfounded or 
unsubstantiated reports of child abuse or neglect while 
enhancing the ability to identify and substantiate legitimate 
cases of abuse or neglect which place a child in danger; and 
provide recommendations for modifications needed to facilitate 
coordinated national and Statewide data collection with respect 
to child protection and child welfare.

                  E. Repeal of Interagency Task Force

Present law

    Section 103 of CAPTA requires the Secretary to establish an 
Interagency Task Force on Child Abuse and Neglect.

House bill

    No provision.

Senate amendment

    Repeals section 103 of CAPTA.

Conference agreement

    The House and Senate concur.

 F. National Clearinghouse for Information Relating to Child Abuse and 
                                Neglect

Present law

    Section 104 of CAPTA requires the Secretary to establish a 
national clearinghouse for information relating to child abuse 
and neglect.

House bill

    No provision.

Senate amendment

    Amends section 104 to retain authorization for a national 
information clearinghouse on child abuse and neglect, and 
expands the duties of the clearinghouse to include collecting 
data on false and unsubstantiated reports and deaths resulting 
from child abuse and neglect, and, through a national data 
collection and analysis program, to collect and make available 
State child abuse and neglect reporting information which, to 
the extent practical, is universal and case specific, and 
integrated with other case-based factor care and adoption data 
collected by HHS.

Conference agreement

    The Senate recedes with an amendment placing the 
Clearinghouse within the Research, Demonstrations, Training, 
and Technical Assistance section. The function of the 
clearinghouse is to: maintain, coordinate, and disseminate 
information on all programs, including private 
(nongovernmental) programs, that show promise of success with 
respect to the prevention, assessment, identification, and 
treatment of child abuse and neglect; and maintain and 
disseminate information relating to the incidence of cases of 
child abuse and neglect including the incidence of such cases 
that are related to alcohol or drug abuse in the United States.

           G. Research, Evaluation and Assistance Activities

Present law

    Section 105 of CAPTA authorizes the Secretary, through the 
National Center, to conduct research and technical assistance 
related to child abuse and neglect.

House bill

    Authorizes appropriations of $10 million annually for the 
Secretary to conduct research and training related to child 
welfare. (See Item 1.H., above).

Senate amendment

    Amends section 105 to restructure the research activities 
function of the Secretary of HHS by deleting references to the 
National Center and by requiring research on additional issues, 
including substantiated and unsubstantiated reported child 
abuse cases. Authorizes technical assistance to include 
evaluated or identification of: various methods for 
investigation, assessment, and prosecution of child physical 
and sexual abuse cases; ways to mitigate psychological trauma 
to child victims; and effective programs carried out under 
CAPTA. Allows the Secretary of HHS to provide for dissemination 
of information related to various training resources available 
at the State and local levels. Continues authorization for a 
formal peer review process which utilizes scientifically valid 
review criteria.

Conference agreement

    The House recedes with an amendment restructuring the 
research activities to focus on information designed to better 
protect children from abuse or neglect by examining the 
national incidence of child abuse and neglect, including 
substantiated and unsubstantiated report child abuse or neglect 
cases.

                  H. Grants for Demonstrated Programs

Present law

    Section 106 of CAPTA authorizes the Secretary to make 
grants to public agencies and private nonprofit organizations 
for demonstration or service programs or projects, that must 
include an evaluation component; resource centers; and 
discretionary grants that may be used for a variety of 
purposes.

House bill

    No provision.

Senate amendment

    Amends section 106 to retain authority for the 
demonstration grants program and to change the criteria for 
awarding grants. Authorizes the following purposes for 
demonstration programs and projects: training programs, mutual 
support and self-help programs for parents, innovative programs 
that use collaborative partnerships between various agencies to 
allow for establishment of a triage system in responding to 
child abuse and neglect reports; kinship care programs, and 
supervised visitation centers for families where there has been 
child abuse or domestic violence. All demonstration projects 
will be evaluated for their effectiveness.

Conference agreement

    The House recedes with an amendment authorizing the 
following demonstration programs and projects: Innovative 
programs and projects that use collaborative partnerships 
between various agencies to allow for the establishment of a 
triage system in responding to child abuse and neglect; kinship 
care programs; programs to expand opportunities for the 
adoption of children with special needs; family resource and 
support programs; and other innovative preventative and 
treatment programs such as Parents Anonymous.

         I. State Grants for Prevention and Treatment Programs

Present law

    Section 107 of CAPTA authorizes the Secretary to make 
development and operation grants to States to assist them in 
improving their child protective service systems. States must 
meet certain eligibility requirements, which include having a 
State law in effect providing for reporting of child abuse or 
neglect allegations and providing immunity from prosecution for 
reporters of abuse or neglect.
    Requires that States have in place procedures for 
responding to reports of medical neglect, including instances 
of withholding medically indicated treatment from disabled 
infants with life-threatening conditions.

House bill

    States would receive Child Protection Block Grants, which 
would be used for child protective service systems, among other 
related activities. To receive block grants, States must 
certify that they have in effect a State law for reporting of 
child abuse or neglect, a program to investigate child abuse 
and neglect reports, and procedures to respond to reporting of 
medical neglect of disabled infants among other requirements. 
(See Item 1.B. (2) and (3), above.)
    Requires States participating in the Child Protection Block 
Grant to submit detailed annual data reports to the Secretary. 
(See Item 1.G.2., above.) The Secretary would prepare annual 
reports for Congress. (See Item 1.G.4., above.)

Senate amendment

    Revises section 107. Under revised eligibility 
requirements, States would provide an assurance or 
certification, signed by the chief executive officer of the 
State, that the State has a law or statewide program relating 
to procedures for: reporting of known and suspected instances 
of child abuse and neglect; immediate screening, safety 
assessment, and prompt investigation of such reports; 
procedures for immediate steps to be taken to protect the 
safety of children; provisions for immunity from prosecution 
for individuals making good faith reports of child abuse; 
methods for preserving confidentiality of records; requirements 
for the prompt disclosure of relevant information to 
appropriate entities working to protect children; the 
cooperation of law enforcement officials, court personnel and 
human services agencies; provision for the appointment of a 
guardian ad litem to represent the child in any judicial 
proceedings; and provisions that facilitate the prompt 
expungement of unsubstantiated or false child abuse reports.
    Requires that States have in place procedures for 
responding to reports of medical neglect, including instances 
of withholding medically indicated treatment from disabled 
infants with life-threatening conditions.
    States must have in place, within two years of enactment, 
provisions by which individuals who disagree with an official 
finding of abuse or neglect can appeal such a finding.
    States would submit a plan every 5 years, instead of 4, 
demonstrating their eligibility and specifics about how their 
grant money will be used.
    States would be required to work annually with the 
Secretary to provide, to the maximum extent practicable, a 
report containing specified data on their child protective 
service systems, including the number of children reported as 
abused or neglected, data on substantiation of reports, 
services provided to reported children, preventive services 
provided to families, the number of child deaths resulting from 
abuse or neglect including the number of children who died 
while in foster care, number of caseworkers responsible for 
intake and screening, agency response time to abuse or neglect 
reports, response time with respect to provision of services to 
families where abuse or neglect has been alleged, and the 
number of caseworkers relative to the number of reports 
investigated in the previous year. The Secretary would prepare 
a report based on State data, to be submitted to Congress and 
the national information clearinghouse on child abuse and 
neglect.

Conference agreement

    The Senate recedes with an amendment providing for a block 
grant to States for the purpose of (1) assisting each State in 
improving the child protective services of such State, (2) 
supporting State efforts to develop, operate, expand and 
enhance a network of community-based, prevention-focused, 
family resource and support programs, (3) facilitating the 
elimination of barriers to adoption for children with special 
needs, (4) responding to the needs of children, in particular 
those who are drug exposed or inflicted with Acquired Immune 
Deficiency Syndrome (AIDS), and (5) carrying out any other 
activities as the Secretary determines to be consistent with 
this chapter. Requirements regarding the State plan, 
eligibility for funding, assurances and certifications, and 
data collection and reporting are the same as those mandated 
for receipt of the Child Protection Block Grant, as described 
below.
    The conference agreement establishes uniform eligibility 
and reporting requirements for the programs funded under Title 
VII of this act (Child Protection Block Grant Program and 
Foster Care and Adoption Assistance). To be eligible to receive 
funds from the child protection block grant programs included 
in Title VII, States must submit a written document outlining 
the activities which the State will undertake to ensure the 
protection of abused and neglected children and their families. 
States are required to certify that the State has in effect and 
operational a State law or statewide program relating to 
procedures for: reporting of known and suspected instances of 
child abuse and neglect by public officials and professionals; 
the immediate screening, safety assessment, and prompt 
investigation of such reports; the removal of abused and 
neglected children from their homes (if necessary) and the 
placement of those children in safe environments; providing 
immunity from prosecution for individuals making good faith 
reports of child abuse; the prompt expungement of records in 
cases determined to be unsubstantiated or false; (within two 
years of enactment) appealing an official finding of abuse or 
neglect by individuals in disagreement with such finding; 
ensuring that a written plan is prepared for children who have 
been removed from their families; providing independent living 
services for older children in State protective care; 
responding to reports of medical neglect, including instances 
of withholding medically indicated treatment from disabled 
infants with life-threatening conditions; ensuring that 
reasonable efforts are made to prevent or eliminate the removal 
of a child from their family prior to placement in foster care 
or other placements outside the home; identifying quantitative 
goals for the State child protection services; compliance with 
the child protection standards specified in the Act; the prompt 
disclosure of relevant information to appropriate government 
entities working to protect children, including citizen review 
panels and child fatality review panels; and public disclosure 
of information regarding a child fatality or near-fatality 
caused by child abuse or neglect.
    The conferees intend to preserve the confidentiality of 
reports and case information pertaining to child abuse and 
neglect except in the instances specifically delineated in this 
act or when a State legislature has specifically authorized 
limited release of such information. It is the clear intention 
of the conferees that case information must be shared among the 
various governmental agencies responsible for the protection of 
children form abuse or neglect in order to facilitate the most 
effective response to these cases. Furthermore, it also is the 
intent of the conferees that in the case of a fatality or near-
fatality resulting from child abuse or neglect, that the 
factual information regarding how the case was handled may be 
disclosed to the public in an effort to provide public 
accountability for the actions or inaction of public officials.

                               J. Repeal

Present law

    Section 108 of CAPTA authorizes the Secretary to provide 
training and technical assistance to States.

House bill

    No provision.

Senate amendment

    Repeals section 108.

Conference agreement

    The House recedes with an amendment providing for technical 
assistance to the States in planning, improving, developing and 
carrying out programs and activities relating to the 
prevention, assessment, identification and treatment of child 
abuse and neglect as well as assistance to public or private 
non-profit agencies or organizations to expand adoption 
opportunities.

                     K. Miscellaneous Requirements

Present law

    Section 110(c) of CAPTA requires the Secretary to ensure 
that a majority share of assistance under CAPTA is available 
for discretionary research and demonstration grants.

House bill

    No provision.

Senate amendment

    Strikes section 110(c).

Conference agreement

    The House and Senate concur.

                             L. Definitions

Present law

    Section 113 of CAPTA contains definitions.

House bill

    No provision.

Senate amendment

    Amends section 113 to change some definitions. Strikes 
definitions of ``Board'' and ``Center,'' and changes the 
definition of ``child abuse and neglect'' to mean, at a 
minimum, ``any recent act or failure to act on the part of a 
parent or caretaker, which results in death, serious physical 
or emotional harm, sexual abuse or exploitation, or an act or 
failure to act which presents an imminent risk of serious 
harm.''

Conference agreement

    The House recedes with an amendment striking certain 
definitions, and modifying other including ``child abuse and 
neglect'' to mean, ``at a minimum: any act or failure to act on 
the part of a parent or caretaker, which results in death, 
serious physical or emotional harm, sexual abuse or 
exploitation, or an act or failure to act which presents an 
imminent risk of serious harm.''

                   M. Authorization of Appropriations

Present law

    Section 114(a) authorizes appropriations for Title I of 
CAPTA, and specifies how funds are to be allocated among 
authorized activities. The authorization of appropriations 
expires at the end of FY 1995.

House bill

    The House bill has no funding for CAPTA but includes 
funding for the Child Protection Block Grant; see sections C.1. 
and C.2., above.

Senate amendment

    Amends section 114(a) to authorize $100 million in FY1996, 
and ``such sums as necessary '' in FY1997-FY2000, for title I 
of CAPTA. Requires that one-third of funds be spent on 
discretionary activities and, that of funds reserved for 
discretionary activities, no more than 40 percent shall be for 
demonstration projects under section 106.

Conference agreement

    The Senate recedes with an amendment providing for 
$230,000,000 for FY1996, and such sums as are necessary for 
FY1997-FY2002, for the new Child and Family Services Block 
Grant.
    Of the amount appropriated, 12 percent shall be made 
available to the Secretary to carry out subchapter B, Research, 
Demonstrations, Training and Technical Assistance. Not less 
than 40 percent of the amount made available to the Secretary 
may be used for Demonstration programs.
    Furthermore, 1 percent of the amounts appropriated under 
this chapter, shall be reserved for the Secretary to make 
allotments to Indian tribes and tribal organizations. Block 
grant funds will be allocated among States according to their 
population of children under age 18.

                        N. Rule of Construction

Present law

    No provision.

House bill

    No directly comparable provision, but see section 1.B.4., 
above.

Senate amendment

    Establishes a new section of CAPTA that addresses the issue 
of spiritual treatment of children. The section does not 
require a parent or legal guardian to provide a child with 
medical service or treatment, against his or her religious 
beliefs, nor does it require a State to find, or prohibit a 
State from finding, abuse or neglect in cases where the parent 
or guardian relied solely or partially on spiritual means 
rather than medical treatment, in accordance with their 
religious beliefs. The sections requires a State to have in 
place authority under State law to pursue any legal remedies 
necessary to provide medical care or treatment when such care 
or treatment is necessary to prevent or remedy serious harm to 
the child, or to prevent the withholding of medically indicated 
treatment from children with life-threatening conditions. In 
general, each State has sole discretion over its case-by-case 
determinations relating to the exercise of authority of the 
subsection and is not foreclosed from considering treatment by 
non-medical or spiritual means. However, in light of special 
concerns about enforcement of Federal law protecting disabled 
infants from medical neglect (see e.g., U.S. Commission on 
Civil Rights, Medical Disabilities), the conference committee 
retains existing language concerning the Federal oversight with 
references to cases involving the withholding of medically 
indicated treatment from disabled infants with life-threatening 
conditions.

Conference agreement

    The House recedes.

                         O. Technical Amendment

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Makes a technical amendment to section 1404A of the Victims 
of Crime Act.

Conference agreement

    The Senate recedes.

         7. community-based family resource and support grants

Present law

    Title II of CAPTA authorizes the Secretary to make grants 
to States for Community-Based Family Resource Programs.

House bill

    No provision.

Senate amendment

    Replaces current law with a new Title II to establish 
Community-Based Family Resource and Support Grants.

Conference agreement

    The Senate recedes. Community-Based Family Resource and 
Support Services are an allowable activity under the Child and 
Family Block Grant funds made available to the States under 
Subchapter A of this Chapter and demonstration grants funded by 
the Secretary under Subchapter B of this Chapter.

                        A. Purpose and Authority

Present law

    No provision.

House bill

    States could use Child Protection Block Grant allotments 
for family resource and support services. (See Item 1.C.(5), 
above.)

Senate amendment

    Establishes the purpose of Title II as: to support State 
efforts to develop, operate, expand and enhance a network of 
community-based, prevention-focused, family resource and 
support programs. Authorizes the Secretary of HHS to make 
grants on a formula basis to entities designated by States as 
``lead entities.''

Conference agreement

    The Senate recedes.

                             B. Eligibility

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Establishes eligibility requirements for States to receive 
grants. States are eligible if:
            (1) the chief executive officer has designated a 
        lead entity that is an existing public, quasi-public or 
        nonprofit private entity, with priority for the State 
        trust fund advisory board or an existing entity that 
        leverages funds for a broad range of child abuse and 
        neglect prevention activities and family resource 
        programs;
            (2) the chief executive officer assures that the 
        lead entity will provide or be responsible for 
        providing a network of community-based family resource 
        and support programs and providing direction and 
        oversight to the network; and
            (3) the chief executive officer assures that the 
        lead entity has a demonstrated commitment to parental 
        participation, a demonstrated ability to work with 
        State and community-based public and private nonprofit 
        organizations, the capacity to provide operational 
        support and training and technical assistance to the 
        statewide network of community-based family resource 
        and support programs, and will integrate its efforts 
        with experienced individuals and organizations.

Conference agreement

    The Senate recedes.

                           C. Amount of Grant

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Reserves 1 percent of appropriations for Title II of CAPTA 
for allotments to Indian tribes and tribal organizations and 
migrant programs. Remaining funds are allotted to States 
equally according to the State ``minor child amount'' and the 
State ``matchable amount.'' The State minor child amount is 
based on the State's relative population of children under 18, 
except that no State can receive less than $250,000. The State 
matching amount is based upon each State's relative amount of 
funds (including foundation, corporate and other private 
funding, State revenues and Federal funds) that have been 
dedicated toward the purposes of this program.

Conference agreement

    The Senate recedes.

                  D. Existing and Continuation Grants

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Provides that any State or entity that has a grant, 
contract, or cooperative agreement in effect on the date of 
enactment, under the Family Resource and Support Program, the 
Community-Based Family Resource Program, the Family Support 
Center Program, the Emergency Child Abuse Prevention Grant 
Program, or the Temporary Child Care and Crisis Nurseries 
Program, shall continue to be funded under the original terms 
through the end of the applicable grant cycle. Also allows the 
Secretary to continue grants for Family Resource and Support 
Program grantees and other programs funded under CAPTA on a 
non-competitive basis, subject to available appropriations, 
grantee performance, and receipt of required reports.

Conference agreement

    The Senate recedes.

                             E. Application

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Provides that, to receive grants under Title II, States 
must submit an application to the Secretary containing 
information requested by the Secretary, including:
            (1) a description of the lead entity;
            (2) a description of how the network of community-
        based, prevention-focused, family resource and support 
        programs will operate, and how family resource and 
        support services will be integrated into a continuum of 
        preventive services for children and families;
            (3) an assurance that an inventory of current 
        family resource programs, respite, child abuse and 
        neglect prevention activities, and other family 
        resource programs in the State, and a description of 
        current unmet needs, will be provided;
            (4) a budget for the State's network of community-
        based, prevention-focused, family resource and support 
        programs that verifies that the State will spend an 
        amount equal to no less than 20 percent of the amount 
        received under this program (in cash, not in-kind);
            (5) an assurance that funds received under this 
        Title will supplement and not supplant other State and 
        local public funds designated for the statewide network 
        of family resource and support programs;
            (6) an assurance that the statewide network of 
        family resource and support programs will maintain 
        cultural diversity, and be culturally competent and 
        socially sensitive and responsive to the needs of 
        families with children with disabilities;
            (7) an assurance that the State has the capacity to 
        ensure meaningful involvement of parents;
            (8) a description of the criteria to be used to 
        develop, or select and fund, individual programs to be 
        part of the statewide network;
            (9) a description of outreach activities that will 
        be used to maximize the participation of racial and 
        ethnic minorities, new immigrant populations, children 
        and adults with disabilities, homeless families and 
        those at risk of homelessness, and members of other 
        under-served or under-represented groups;
            (10) a plan for providing operational support, 
        training and technical assistance to family resource 
        and support programs;
            (11) a description of how activities will be 
        evaluated;
            (12) a description of actions that will be taken to 
        advocate changes in State policies, practices, 
        procedures, and regulations to improve the delivery of 
        family resource and support program services to all 
        children and families; and
            (13) an assurance that reports will be submitted to 
        the Secretary on time and containing requested 
        information.

Conference agreement

    The Senate recedes.

                     F. Local Program Requirements

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Grants will be used for family resource and support 
programs that:
            (1) assess community assets and needs through a 
        planning process that includes parents, local agencies, 
        and private sector representatives;
            (2) develop a strategy to provide a continuum of 
        preventive, holistic, family-centered services to 
        children and families;
            (3) provide ``core'' services, such as parent 
        education, support and self-help, and leadership 
        services, development screening of children, outreach, 
        referral and follow-up services; ``other core'' 
        services, which can be provided directly or through 
        contracts, including respite services; and access to 
        ``optional'' services, including child care, early 
        childhood development and intervention, services for 
        families with children with disabilities, job 
        readiness, educational services, self-sufficiency and 
        life management skills training, community referral 
        services, and peer counseling;
            (4) develop leadership roles for the meaningful 
        involvement of parents;
            (5) provide leadership in mobilizing local 
        resources to support family resource and support 
        programs; and
            (6) participate with other community-based, 
        prevention-focused family resource and support programs 
        in developing and operating the statewide network.
    Priority for local grants shall be given to community-based 
programs serving low-income communities and those serving young 
parents or parents with young children, and to family resource 
and support programs previously funded under the programs 
consolidated by this Title.

Conference agreement

    The Senate recedes.

                        G. Performance Measures

Present law

    No provision.

House bill

    No provision.

Senate amendment

    States receiving grants must submit reports to the 
Secretary that:
            (1) demonstrate effective development of a 
        statewide network of family resource and support 
        programs;
            (2) supply an inventory and description of services 
        provided to families, including ``core'' and 
        ``optional'' services;
            (3) demonstrate the establishment of new respite 
        and other new family services, and expansion of 
        existing services, to meet identified unmet needs;
            (4) describe number of families served (including 
        families with children with disabilities), and the 
        involvement of a diverse representation of families in 
        designing, operating and evaluating the statewide 
        network of family resource and support programs;
            (5) demonstrate a high level of satisfaction among 
        families that have used family resource and support 
        program services;
            (6) demonstrate innovative funding mechanisms that 
        blend Federal, State, local and private funds, and 
        innovative and interdisciplinary service delivery 
        mechanisms;
            (7) describe the results of a peer review process 
        conducted under the State program; and
            (8) demonstrate an implementation plan to ensure 
        continued leadership of parents in family resource and 
        support programs.

Conference agreement

    Senate recedes.

    H. National Network for Community-Based Family Resource Programs

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Authorizes the Secretary to allocate such sums as necessary 
from the amount provided under the State allotment to support 
State activities related to a peer review process, an 
information clearinghouse, a yearly symposium, a computerized 
communication system between State lead entities, and State-to-
State technical assistance through biannual conferences.

Conference agreement

    The Senate recedes.

                             I. Definitions

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Defines the following terms: ``children with 
disabilities,'' ``community referral services,'' ``culturally 
competent,'' ``family resource and support program,'' 
``national network for community-based family resource 
programs,'' ``outreach services,'' and ``respite services.''

Conference agreement

    The Senate recedes with an amendment which includes the 
definitions for Family Resource and Support programs and 
respite care in the definition section of the Chapter.

                   J. Authorization of Appropriations

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Authorizes $108 million for Title II for each of FY1996-
FY2000.

Conference agreement

    The Senate recedes.

                        8. repeals (section 753)

Present law

    No provision.

House bill

    Repeals the crisis nurseries portion of Temporary Child 
Care and Crisis Nurseries; and family support centers under the 
Stewart B. McKinney Homeless Assistance Act. (See Item 2, 
above.)

Senate amendment

    Repeals the Temporary Child Care for Children with 
Disabilities and Crisis Nurseries Act. Also repeals family 
support centers under Subtitle F of Title VII of the Stewart B. 
McKinney Homeless Assistance Act.

Conference agreement

    This portion of the conference agreement repeals Title II 
of the Child Abuse Prevention and Treatment and Adoption Reform 
Act (adoption opportunities), the Abandoned Infants Assistance 
Act, section 553 of the Howard Metzenbaum Multiethnic Placement 
Act, family support centers under the Stewart McKinney Homeless 
Assistance Act, and the Temporary Child Care and Crisis 
Nurseries Act.
    The agreement also requires the Secretary of HHS, within 6 
months after enactment, to submit a legislative proposal with 
any necessary technical and conforming amendments.
    The agreement also includes a transition provision to allow 
entities with a grant, contract or cooperative agreement in 
effect under various programs that will be terminated, to 
continue to receive funds through the end of the applicable 
grant, contract or agreement cycle.

               9. family violence prevention and services

                     A. State Demonstration Grants

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Amends section 303(e) of the Family Violence Prevention and 
Services Act, relating to non-Federal matching requirements.

Conference agreement

    The Senate recedes.

                             B. Allotments

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Amends section 304(a)(1) of Family Violence Prevention and 
Services Act.

Conference agreement

    The Senate recedes.

                   C. Authorization of Appropriations

Present law

    Section 310 of the Family Violence Prevention and Services 
Act authorizes appropriations for the program and specifies how 
funds are to be allocated among activities.

House bill

    No provision.

Senate amendment

    Amends section 310 of Family Violence Prevention and 
Services Act to reduce from 80 percent to 70 percent the 
minimum amount of funds to be used for making grants to States 
for family violence activities. Also requires the Secretary to 
use not less than 10 percent of appropriations for grants for 
State family violence coalitions, and provides that Federal 
funds made available under this program must be used to 
supplement and not supplant other Federal, State or local 
public funds expended for similar activities.

Conference agreement

    The Senate recedes.

                 10. adoption opportunities; reference

                        A. Findings and Purpose

Present law

    Section 201 of the adoption opportunities program 
establishes congressional findings with regard to the child 
welfare population, and declares the program's purpose to 
facilitate the elimination of barriers to adoption and to 
provide permanent homes for children who would benefit from 
adoption, particularly children with special needs.

House bill

    Repeals the adoption opportunities program. (See Item 2, 
above.)

Senate amendment

    Amends section 201 of the adoption opportunities program to 
update congressional findings, and delete references to the 
promotion of model adoption legislation and procedures.

Conference agreement

    The Senate recedes.

                      B. Information and Services

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Amends section 203 of the adoption opportunities program, 
to require the Secretary of HHS to conduct studies related to 
kinship care, recruitment of foster and adoptive parents; and 
to provide technical assistance and resource and referral 
information related to termination of parental rights, 
recruitment and retention of adoptive placements, placement of 
special needs children, provision of pre- and post-placement 
services, and other assistance to help State and local 
governments replicate successful adoption-related projects.

Conference agreement

    The Senate recedes.

                   C. Authorization of Appropriations

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Authorizes $20 million for FY1996, and such sums as 
necessary for each of FY1997-FY2000, for the adoption 
opportunities program.

Conference agreement

    The Senate recedes.

                  11. Abandoned infants assistance act

Present law

    No provision.

House bill

    Repeals abandoned infants assistance.

Senate amendment

    Authorizes $35 million for each of FY1995-FY1996, and such 
sums as necessary for each of FY1997-FY2000, for abandoned 
infants assistance.

Conference agreement

    The Senate recedes.

         12. reauthorization of various programs (section 752)

                  A. Missing Children's Assistance Act

Present law

    The Missing Children's Assistance Act is authorized through 
FY1996.

House bill

    Repeals the Missing Children's Assistance Act (see Item 2, 
above; however, authorizes appropriations of $7 million for the 
Attorney General to operate an information clearinghouse and 
telephone hotline for information on missing children (see Item 
1.F, above).

Senate amendment

    Extends the authorization for the Missing Children's 
Assistance Act through FY1997; such sums as necessary are 
authorized. Provides that the Department of Justice shall use 
no more than 5 percent of appropriations in a fiscal year to 
evaluate the program.

Conference agreement

    The House recedes.

                 B. Victims of Child Abuse Act of 1990

Present law

    Appropriations are authorized through FY1996 for grants to 
improve investigation and prosecution of child abuse cases, and 
for children's advocacy centers, under the Victims of Child 
Abuse Act.

House bill

    Repeals grants to improve investigation and prosecution of 
child abuse and neglect cases, and children's advocacy centers, 
under the Victims of Child Abuse Act. (See Item 2, above.)

Senate amendment

    Extends the authorization through FY1997, at such sums as 
necessary, for these two programs under the Victims of Child 
Abuse Act.

Conference agreement

    The House recedes.

                         13. adoption expenses

               A. Refundable Credit for Adoption Expenses

Present law

    No provision.

House bill

    No provision in H.R. 4, but similar provision in the House-
passed H.R. 1215.

Senate amendment

    Amends subpart C of part IV of subchapter A of chapter 1 of 
the Internal Revenue Code of 1986, to insert a new section 35, 
adoption expenses, that would provide a tax credit for 
expenditures for adoption fees, court costs, attorney fees, and 
other expenses directly related to a legal and finalized 
adoption. This dollar-for-dollar tax credit of up to $5,000 per 
child is reduced for taxpayers with adjusted gross income above 
$60,000 and is fully phased out at incomes of $100,000. Married 
couples must file a joint return and the credit is not 
available for expenditures that contradict State or Federal 
law. The amendment prohibits double benefits. The amendment 
will apply to taxable beginning after Dec. 31, 1995.

Conference agreement

    This provision has been moved to the tax portion of the 
Reconciliation Act of 1995 and, if enacted, will provide a tax 
credit for expenditures for adoption fees, court costs, 
attorney fees, and other expenses directly related to a legal 
and finalized adoption. This dollar-for-dollar tax credit of up 
to $5,000 per child is reduced for taxpayers with adjusted 
gross income above $75,000 and is fully phased out at incomes 
of $115,000. The credit is not available for expenditures that 
contradict State or Federal law. The amendment prohibits double 
benefits with respect to State and local credits, except in 
cases of ``special children''. The amendment will apply to 
taxable years beginning after Dec. 31, 1995 and allow for carry 
over of up to five years in the event tax liability does not 
cover the entire credit during a single year.

                  B. Exclusion of Adoption Assistance

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Amends part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 by inserting a new section 137, 
which treats as a tax-free fringe benefit employer-provided 
adoption assistance benefits, or reimbursement by the employer 
of qualified adoption expenses, provided the adoptee is 
physically or mentally incapable of self-care (a ``special 
needs'' child). Military adoption assistance benefits for these 
children also would be free of tax. The amendment will apply to 
taxable years beginning after Dec. 31, 1995.

Conference agreement

    This provision has been moved to the tax portion of the 
Reconciliation Act of 1995. This provision treats as a tax-free 
fringe benefit employer-provided adoption assistance benefits 
of up to $5,000, or reimbursement by the employer of qualified 
adoption expenses. The amendment will apply to taxable years 
beginning after Dec. 31, 1995. This benefit is not available if 
the credit (above) is chosen.

              C. Withdrawal from IRA for Adoption Expenses

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Amends subsection (d) of section 408 of the Internal 
Revenue Code of 1986 to permit tax-free withdrawals from an 
individual retirement account (IRA) for qualified adoption 
expenses.

Conference agreement

    The Senate recedes.

                         Title VIII. Child Care

                         1. Goals (Section 802)

Present law

    No provision.

House bill

    Establishes the following goals as part of the Child Care 
and Development Block Grant:
            (1) to allow each State maximum flexibility in 
        developing child care programs and policies that best 
        suit the needs of children and parents within such 
        State;
            (2) to promote parental choice to empower working 
        parents to make their own decision on the child care 
        that best suits their family's needs;
            (3) to encourage States to provide consumer 
        education information to help parents make informed 
        choices about child care;
            (4) to assist States to provide child care to 
        parents trying to achieve independence from public 
        assistance; and
            (5) to assist States in implementing the health, 
        safety, licensing and registration standards 
        established in State regulation.

Senate amendment

    No provision.

Conference agreement

    The Senate recedes.

            2. authorization of appropriations (section 803)

Present law

    The authorization of appropriations expires at the end of 
FY1995. Appropriations in FY1995 are $935 million; such sums as 
necessary are authorized. (Sec. 658B of the CCDBG Act.)
    (Note: In addition, entitlement funds are available for 
child care under the AFDC Child Care, Transitional Child Care, 
and At-Risk Child Care programs authorized by Title IV-A of the 
Social Security Act.)

House bill

    Authorizes appropriations of $2,093 million for each of 
FY1996-2000.
    (Note: Title I of the House bill repeals the AFDC Child 
Care, Transitional Child Care, and At-Risk Child Care 
programs.)

Senate amendment

    Authorizes appropriations as follows: $1 billion for 
FY1996, and such sums as may be necessary for each of FY1997-
2000.
    (Note: Additional funds are provided for child care under 
Title I of the Senate amendment, to replace the current AFDC 
Child Care, Transitional Child Care, and At-Risk Child Care 
programs--$8 billion over 5 years in direct spending.)

Conference agreement

    The conference agreement establishes a single child care 
block grant and State administrative system by adding mandatory 
funds to the existing Child Care and Development Block Grant 
(CCDBG). Specifically, one discretionary and two mandatory 
streams of funding will be consolidated in a reconstituted 
CCDBG. The effective date of this title will be October 1, 
1996, except for the authorization of discretionary funds, 
which will be effective upon date of enactment.
    The child care funds made available in the Child Care Block 
Grant total $18 billion over 7 years; $11 billion in mandatory 
funds ($1.3 billion in FY1997, $1.4 billion in FY1998, $1.5 
billion FY1999, $1.7 billion in FY2000, $1.9 billion in FY2001, 
and $2.05 in FY2002) combined with $1 billion each year 
(FY1996-FY2002) in discretionary funds.
    Each State will receive the amount of funds it received for 
child care under all of the entitlement programs currently 
under title IV of the Social Security Act (AFDC Child Care, 
transitional Child Care, and At-Risk Child Care) in the 1994 
fiscal year, or the average amount of funds received for those 
programs from FY1992 through FY1994, which ever is greater. 
These programs, combined, provide approximately $990 million in 
mandatory child care funding for the States.
    The mandatory funds remaining after the State allocations 
based on the child care allotments from previous years will be 
distributed among the States based on the formula currently 
used in the title IV-A At-Risk Child Care grant. Specifically, 
funds will be distributed based on the proportion of the number 
of children under the age of 13 residing in the State to the 
number of all of the nation's children under the age of 13. 
States must provide matching funds in the amount of the FY1994 
State Medicaid rate to receive these funds.
    If a State does not use its full portion of funds, the 
remaining portion will be redistributed to the States according 
to section 402(i) (as such section was in effect before October 
1, 1995).
    Discretionary funds appropriated for the Child Care Block 
Grant will be distributed to States based on the current 
formula for the Child Care and Development Block Grant. This 
formula utilizes the number of children in low income families 
and the State per capita income as criteria for the 
distribution of funds to States. As in current law governing 
the CCDBG, there is no requirement for the State to provide 
matching funds to receive an allotment from the discretionary 
funds appropriated for the Child Care Block Grant (see Table 4 
for State allotments over the 7 years of the Block Grant).


Table 4--Estimated total 7-year funding by State under the child care 
block grant

                        [In thousands of dollars]

State:                                                            Amount
    Alabama.............................................         328,208
    Alaska..............................................          45,728
    Arizona.............................................         305,507
    Arkansas............................................         146,212
    California..........................................       2,005,717
    Colorado............................................         202,491
    Connecticut.........................................         203,659
    Delaware............................................          54,264
    District of Columbia................................          45,711
    Florida.............................................         789,027
    Georgia.............................................         579,921
    Hawaii..............................................          66,313
    Idaho...............................................          75,410
    Illinois............................................         680,274
    Indiana.............................................         359,127
    Iowa................................................         151,901
    Kansas..............................................         171,492
    Kentucky............................................         301,154
    Louisiana...........................................         337,574
    Maine...............................................          66,441
    Maryland............................................         331,868
    Massachusetts.......................................         447,645
    Michigan............................................         522,624
    Minnesota...........................................         321,275
    Mississippi.........................................         197,315
    Missouri............................................         352,011
    Montana.............................................          56,602
    Nebraska............................................         144,930
    Nevada..............................................          66,512
    New Hampshire.......................................          63,772
    New Jersey..........................................         412,380
    New Mexico..........................................         156,887
    New York............................................       1,110,049
    North Carolina......................................         732,212
    North Dakota........................................          44,315
    Ohio................................................         781,424
    Oklahoma............................................         307,398
    Oregon..............................................         247,540
    Pennsylvania........................................         717,854
    Rhode Island........................................          73,756
    South Carolina......................................         229,794
    South Dakota........................................          47,719
    Tennessee...........................................         452,486
    Texas...............................................       1,311,075
    Utah................................................         194,779
    Vermont.............................................          49,670
    Virginia............................................         346,339
    Washington..........................................         458,049
    West Virginia.......................................         140,340
    Wisconsin...........................................         310,981
    Wyoming.............................................          40,327
    Puerto Rico \1\.....................................         190,438
    Guam \1\............................................          16,829
    Virgin Islands \1\..................................          11,807
    Northern Marianas \1\...............................           6,363
    Indian Set-Aside....................................         188,500
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................      18,000,000

\1\ Discretionary amounts for the territories only.

Source: Table prepared by CRS. Mandatory child care allocations based on 
the federal share of expenditures in title IV-A programs and Census 
Bureau estimates (FY1996) and projections (FY1997-2002) of the 
Population Under 13. Discretionary child care allocations based on DHHS 
estimates, 2/95. FY1996 amounts for mandatory child care assume: (1) CBO 
baseline amounts for national totals; and (2) a distribution among the 
States based on the historical distribution of mandatory funds (average 
of FY1992-1994 or FY1994 whichever is higher).
---------------------------------------------------------------------------

                      3. Lead agency (section 804)

Present law

    Requires the chief executive officer of a State to 
designate an appropriate State agency to act as the lead agency 
in administering financial assistance under the Act. (Sec. 658D 
of the CCDBG Act)

House bill

    Changes the term ``agency'' to ``entity.''

Senate amendment

    Allows the State lead agency to administer financial 
assistance received under the Act through other ``governmental 
or nongovernmental'' agencies (instead of other ``State'' 
agencies); requires that ``sufficient time and Statewide 
distribution of the notice'' be given of the public hearing on 
development of the State plan; and strikes language on issues 
that may be considered during consultation with local 
governments on development of the State plan.

Conference agreement

    The House recedes.

                 4. Application and plan (section 805)

Present law

    Requires States to prepare and submit to the Secretary an 
application that includes a State plan. The initial plan must 
cover a 3-year period, and subsequent plans must cover 2-year 
periods. Required contents of the plan include designation of a 
lead agency and policies and procedures regarding parental 
choice of providers, unlimited parental access, parental 
complaints, consumer education, compliance with State and local 
regulatory requirements, establishment of and compliance with 
health and safety requirements, review of State licensing and 
regulatory requirements, and supplementation.
    In addition, the State plan must provide that funds will be 
used for child care services, and that 25 percent of funds will 
be reserved for activities to improve the quality of child care 
and to increase the availability of early childhood development 
and before- and after-school child care. (Sec. 658E of the 
CCDBG Act)
    Further, State plans must assure that payment rates will be 
adequate to provide eligible children equal access to child 
care as compared with children whose families are not eligible 
for subsidies, and must assure that the State will establish 
and periodically revise a sliding fee scale that provides for 
cost sharing by families that receive child care subsidies.

House bill

    Requires the State plan to cover a 2-year period. Requires 
States to provide a detailed description of procedures to be 
used to assure parental choice of providers. Changes ``provide 
assurances'' to ``certify'' that procedures are in effect 
within the State to ensure unlimited parental access to 
children and parental choice; also requires that the State plan 
provide a detailed description of such procedures. Changes 
``provide assurances'' to ``certify'' that the State maintains 
a record of parental complaints, and requires the State to 
provide a detailed description of how such a record is 
maintained and made available. Changes the consumer education 
part of the State plan to require assurances that the State 
will collect and disseminate consumer education information. 
Requires that the State certify that providers comply with 
State and local health, safety and licensing or regulatory 
requirements and provide a detailed description of such 
requirements and how they are enforced. Eliminates current law 
provisions requiring establishment of and compliance with 
health and safety requirements, review of State licensing and 
regulatory requirements, notification to HHS when standards are 
reduced, and supplementation. Eliminates the requirement that 
unlicensed providers be registered.
    Adds a requirement that a summary of the facts relied upon 
by the State to determine that payment rates are sufficient to 
ensure equal access to child care is included in the State 
plan. Eliminates the assurance that the State will establish a 
sliding fee scale. Also provides that funds, other than amounts 
transferred under section 658T (see Item 14 below), will be 
used for child care services, activities to improve the quality 
and availability of such services, and any other activity that 
the State deems appropriated to realize the goals specified 
above (see Item 1). Deletes the current law requirement that 
States reserve 25 percent of funds for activities to improve 
the quality of child care and to increase availability of early 
childhood development and before- and after-school care.
    Requires States to spend no more than 5 percent on 
administrative costs.

Senate amendment

    Requires the State plan to cover a 2-year period. Replaces 
the requirement that providers not subject to licensing or 
regulation be registered with the State, with a requirement 
that the State implement mechanisms to ensure proper payment to 
providers. Requires the Secretary to develop minimum standards 
for Indian tribes and tribal organizations receiving assistance 
under the Act, in lieu of State or local licensing or 
regulatory requirements. Eliminates provisions related to 
reduction in standards and reviews of State licensing and 
regulatory requirements.
    Requires the State plan to describe the manner in which 
services will be provided to the working poor. Reserves 15 
percent of each State's allotment for activities to improve 
quality of child care, instead of 25 percent for both quality 
improvement and before- and after-school child care services.
    Requires States to spend no more than 5 percent on 
administrative costs, not including direct service costs. 
Administrative costs shall not include direct service costs.

Conference agreement

    The Senate recedes, with a modification that the States 
must certify that they have licensing standards for child care. 
The Secretary must develop minimum standards for Indian tribes 
and tribal organizations receiving assistance under this Act, 
in lieu of State or local licensing or regulatory requirements. 
At least 70 percent of the mandatory funding must be used to 
provide child care for children in families who are receiving 
welfare, working their way off welfare, or at risk of becoming 
welfare dependent. A substantial portion of the discretionary 
funding for child care authorized under this Act is intended to 
be used for low-income working families who are not working 
their way off welfare or at risk of becoming welfare dependent. 
The State plan must demonstrate how the State is meeting the 
specific needs of each of these populations.

            5. Limitation on State Allotments (Section 806)

Present law

    Prohibits the use of funds for purchase or improvement of 
land or buildings, except in the case of sectarian agencies or 
organizations that need to make renovations or repairs in order 
to comply with specific health and safety requirements that 
States are required to establish. (Sec. 658F of the CCDBG Act)

House bill

    Amends section 658F to make a conforming amendment 
referring to the elimination of specific health and safety 
requirements.

Senate amendment

    No provision (maintains current law).

Conference agreement

    The Senate recedes, with a modification that this Act 
prohibit the use of funds for purchase or improvement of land 
or buildings except for Indian tribes or tribal organizations. 
Indian tribes and tribal organizations may use funds for 
construction or renovation of facilities, upon the request by 
the tribe or tribal organization and subject to the approval by 
the Secretary.

    6. Activities to Improve the Quality of Child Care (Section 807)

Present law

    As stated above, 25 percent of State allotments must be 
reserved for activities to improve child care quality and to 
increase the availability of early childhood development and 
before- and after-school child care (see Item 1.D above). 
Section 658G specifies how these funds are to be used. Of 
reserved funds, States are required to use no less than 20 
percent for activities to improve the quality of care, 
including resource and referral programs, grants or loans to 
assist providers in meeting State and local standards, 
monitoring of compliance with licensing and regulatory 
requirements, training of child care personnel, and improving 
compensation for child care personnel. (Sec. 658G of the CCDBG 
Act)

House bill

    Repeals the requirement that 25 percent of funds be set 
aside for quality improvement activities (see Item 5 above). 
Repeals section 658G regarding the use of these set-aside 
funds.

Senate amendment

    As stated above, reduces quality improvement set-aside to 
15 percent (see Item 5 above). Amends section 658G to require 
States to use their quality improvement set-aside for resource 
and referral activities, including ``providing comprehensive 
consumer education to parents and the public, referrals that 
honor parental choice, and activities designed to improve the 
quality and availability of child care,'' and for one or more 
``other activities,'' which include those listed in the current 
section 658G, plus activities to increase the availability of 
before- and after-school care, infant care, and child care 
between the hours of 5:00 p.m. and 8:00 a.m.
    Adds new language to prohibit States from discriminating 
against providers that wish to participate in resource and 
referral systems even if they are exempt from State licensing 
requirements as long as they are operating legally within the 
State.

Conference agreement

    The Senate recedes, with a modification that States retain 
at least a 3 percent set-aside of the total mandatory and 
discretionary funding received for child care under this Act 
for activities designed to provide comprehensive consumer 
education to parents and the public, activities that increase 
parental choice, and activities designed to improve the quality 
and availability of child care, such as resource and referral 
services.
    The House recedes, with a modification to limit the amount 
of total child care funds made available under this Act of 
administrative costs to 3 percent. Administrative cost shall 
not include direct service costs.

   7. early childhood development and before- and after-school care 
                       requirement (section 808)

Present law

    Requires States to use no less than 75 percent of funds 
reserved for quality improvement for activities to expand and 
conduct early childhood development programs and before- and 
after-school child care. (Sec. 658H of the CCDBG Act)

House bill

    Repeals section 658H.

Senate amendment

    Repeals section 658H.

Conference agreement

    The House and Senate concur.

            8. administration and enforcement (section 809)

Present law

    Requires the Secretary of Health and Human Services (HHS) 
to coordinate HHS and other Federal child care activities, to 
collect and publish a list of State child care standards every 
3 years, and to provide technical assistance to States. 
Requires the Secretary to review, monitor, and enforce 
compliance with the Act and the State plan by withholding 
payments and imposing additional sanctions in certain cases. 
(Sec. 658I of the CCDBG Act)

House bill

    Deletes the requirement that the Secretary of HHS collect 
and publish a list of child care standards every 3 years. 
Maintains current law for repayment.

Senate amendment

    Strikes the current law requirement that the Secretary 
withhold further payments to a State in case of a finding of 
noncompliance until the noncompliance is corrected. Instead, 
authorizes the Secretary, in such cases, to impose additional 
program requirements on the State, such as a requirement that 
the State reimburse the Secretary for any improperly spent 
funds, or the Secretary may deduct from the administrative 
portion of the State's subsequent allotment an amount equal to 
or less than the misspent funds, or a combination of such 
options. The amendment also strikes sections related to 
additional sanctions and notice of such additional sanctions.

Conference agreement

    The House recedes, with a modification that the Secretary 
may not impose additional program requirements on the State for 
improperly spent funds, and that the Secretary shall deduct 
misspent funds from subsequent State administrative allotments.

                       9. Payments (Section 810)

Present law

    Provides that payments received by a State for a fiscal 
year may be expended in that fiscal year or in the succeeding 3 
fiscal years. (ec. 658J of the CCDBG Act)

House bill

    Provides that payments received by a State for a fiscal 
year may be obligated in the fiscal year received or the 
succeeding fiscal year, instead of expended in the fiscal year 
received or the succeeding 3 fiscal years.

Senate amendment

    No provision (maintains current law).

Conference agreement

    The Senate recedes.

               10. Annual Report and Audits (Section 811)

Present law

    Requires each State to prepare and submit to the Secretary 
every year a report: specifying how funds are used; presenting 
data on the manner in which the child care needs of families in 
the State are being fulfilled, including information on the 
number of children served, child care programs in the State, 
compensation provided to child care staff, and activities to 
encourage public-private partnerships in child care; describing 
the extent to which affordability and availability of child 
care has increased; summarizing findings from a review of State 
licensing and regulatory requirements, if applicable; 
explaining any action taken by the State to reduce standards, 
if applicable; and describing standards and health and safety 
requirements applied to child care providers in the State, 
including a description of efforts to improve the quality of 
child care. (Sec. 658K of the CCDBG Act)

House bill

    Changes the title of the section from ``Annual Report and 
Audits'' to ``Annual Report, Evaluation Plans, and Audits.'' 
Changes required data elements in annual reports to include:
            (1) the number and ages of children being assisted 
        with funds provided under this subchapter;
            (2) with respect to the families of such children:
                  --the number of other children in such 
                families;
                  --the number of such families that include 
                only 1 parent;
                  --the number of such families that include 
                both parents;
                  --the ages of the mothers of such children;
                  --the ages of the fathers of such children;
                  --the sources of the economic resources of 
                such families, including the amount of such 
                resources obtained from (and separately 
                identified as being from)--
                            a. employment, including self-
                        employment;
                            b. assistance received under part A 
                        of title IV of the Social Security Act 
                        (SSA);
                            c. part B of title IV of the SSA;
                            d. the Child Nutrition Act of 1966;
                            e. the National School Lunch Act;
                            f. assistance received under title 
                        XVI of the SSA;
                            g. assistance received under title 
                        XVI of the SSA;
                            h. assistance received under title 
                        XIX of the SSA;
                            i. assistance received under title 
                        XX of the SSA; and
                            j. any other source of economic 
                        resources the Secretary determines to 
                        be appropriate;
            (3) the number of such providers separately 
        identified with respect to each type of child care 
        provider specified in section 658P(5) that provided 
        child care services obtained with assistance provided 
        under this subchapter;
            (4) the cost of child care services and the portion 
        of such cost paid with assistance from this Act;
            (5) the manner in which consumer education 
        information was provided to parents and the number of 
        parents to whom such information was provided;
            (6) the number of parental complaints about child 
        care that were found to have merit and a description of 
        corrective actions taken by the State; and
            (7) information on programs to which funds were 
        transferred under section 648T (see item 15, below).
    States are also required to present evidence demonstrating 
that they have state requirements designed to protect the 
health and safety of children.
    Deletes current report requirements on: (1) increasing the 
affordability and availability of child care; (2) reviewing 
findings on State licensing and regulatory requirements; and 
(3) reducing standards.
    Requires States to include an evaluation plan in their 
first annual report due after enactment and every 2 years 
thereafter, and to include the results of such evaluation in 
the second annual report due after enactment and every 2 years 
thereafter. The plan must include an evaluation regarding the 
extent to which the State has realized the following goals:
            (1) promoting parental choice to make their own 
        decisions on the child care that best suits their 
        family's needs;
            (2) providing consumer education information to 
        help parents make informed choices about child care;
            (3) providing child care to parents trying to 
        achieve independence from public assistance; and
            (4) implementing the health, safety, licensing, and 
        registration standards established in State 
        regulations.

Senate amendment

    Requires States to submit reports every 2 years, rather 
than every year, with the first report due no later than 
December 31, 1996. Requires that States include information on 
the type of Federal child care and preschool programs serving 
children in the State, and requires that States describe the 
extent and manner to which resource and referral activities are 
being carried out by the State. Strikes the current requirement 
for information on the type and number of child care programs, 
providers, caregivers and support personnel in the State, and 
strikes the provision related to review findings of State 
licensing and regulatory requirements.

Conference agreement

    The Senate recedes, with a modification that the State 
prepare and submit a data report to the Secretary every six 
months, and that the report include the following information 
on each family receiving assistance:
            (1) family income;
            (2) county of residence;
            (3) the sex, race, age of children receiving 
        benefits;
            (4) whether the family includes only one parent;
            (5) the sources of family income, including the 
        amount obtained from (and separately identified as 
        being from): (a) employment, including self-employment; 
        (b) Part A cash assistance or other assistance; (c) 
        housing assistance; (d) food stamps; and (e) other;
            (6) the number of months the family has received 
        benefits;
            (7) the type of care in which the child was 
        enrolled (family day care, center, own home);
            (8) whether the provider was a relative;
            (9) the cost of care; and
            (10) the average hours per week of care.
    Annually, the State must submit the following aggregate 
data:
            (1) the number of providers separately identified 
        in accord with each type of provider specified in 
        section 658P(5) that received funding under this 
        subchapter;
            (2) the monthly cost of child care services and the 
        portion of such cost paid with assistance from this Act 
        by type of care;
            (3) the number and total amount of payments by the 
        State in vouchers, contracts, cash, and disregards from 
        public benefit programs by type of care;
            (4) the manner in which consumer education 
        information was provided; and
            (5) total number (unduplicated) of children and 
        families served.
    The House recedes on the requirement that States include an 
evaluation plan in their reports to the Secretary.
    Conferees agree to delete current report requirements on: 
(1) increasing the affordability and availability of child 
care; (2) reviewing findings on State licensing and regulatory 
requirements; and (3) reducing standards.

               11. report by the secretary (section 812)

Present law

    Requires the Secretary to prepare and submit an annual 
report, summarizing and analyzing information provided by 
States, to the House Education and Labor Committee and the 
Senate Labor and Human Resources Committee. This report must 
contain an assessment and, where appropriate, recommendations 
to Congress regarding efforts that should be taken to improve 
access of the public to quality and affordable child care. 
(Sec. 658L of the CCDBG Act)

House bill

    Revises the Secretary's report to become a biennial report 
to the Speaker of the House and the President pro tempore of 
the Senate.

Senate amendment

    Requires the Secretary to prepare and submit biennial 
reports, rather than annual, with the first report due no later 
than July 31, 1997; and replaces the reference to the House 
Education and Labor Committee with the House Economic and 
Educational Opportunities Committee.

Conference agreement

    The House recedes.

                      12. allotments (section 813)

Present law

    Requires the Secretary to reserve one-half of 1 percent of 
appropriations for payment to Guam, American Samoa, the Virgin 
Islands, the Northern Marianas and the Trust Territory of the 
Pacific Islands. The Secretary also must reserve no more than 3 
percent for payment to Indian tribes and tribal organizations 
with approved applications. Remaining funds are allocated to 
the States based on the States' proportion of children under 
age 5 and the number of children receiving free or reduced-
price school lunches, as well as the States' per capita income. 
Any portion of a State's reallotment that the Secretary 
determines is not needed by the State to carry out its plan for 
the allotment period, must be reallotted by the Secretary to 
the other States in the same proportion as the original 
allotments. (Sec. 658O of the CCDBG Act)

House bill

    Maintains the current law set-asides for the Territories 
and Indian tribes and tribal organizations, except that the 
Trust Territory of the Pacific Islands is deleted from the set-
aside for Territories. Allots remaining funds to States as 
follows: each State will receive an amount based on its 
relative share of the aggregate amount of Federal funds 
received by the State in FY1994 under the Child Care and 
Development Block Grant Act, and under child care programs for 
AFDC recipients and former AFDC recipients and the At-Risk 
Child Care program under Title IV-A of the Social Security Act.

Senate amendment

    Maintains current law allotment procedures. Amends section 
658O(c), related to payments for the benefit of Indian 
children, to add new provisions allowing the use of funds by 
Indian tribes or tribal organizations for construction or 
renovation of facilities, upon request by the tribe or tribal 
organization and subject to approval by the Secretary. The 
Secretary may not permit a tribe or tribal organization to use 
funds for construction or renovation if such use will result in 
a decrease in the level of child care services. The Secretary 
is also allowed to reallot to other tribes any tribal 
allotments that are not expended, which is similar to what 
happens with unused State allotments.

Conference agreement

    The Senate recedes, with a modification that the set-aside 
for Indian tribes and tribal organizations and Native Hawaiian 
Organizations is 1 percent of the total funds for child care 
made available under this Act. Any portion of a State's 
allotment that the Secretary determines is not needed by the 
State to carry out its plan for the allotment period must be 
realloted by the Secretary to the other States in the same 
proportion as the original allotments. The Secretary is also 
allowed to reallot to other tribes any tribal allotments that 
are expended, which is similar to the process for reallotment 
to States.

                     13. Definitions (Section 814)

Present law

    Provides definitions of the following terms: caregiver, 
child care certificate, elementary school, eligible child, 
eligible child care provider, family child care provider, 
Indian tribe, lead agency, parent, secondary school, Secretary, 
sliding fee scale, State, and tribal organization. (Sec. 658P 
of the CCDBG Act)

House bill

    Includes definitions for lead entity and child care 
services, and strikes definitions for elementary school, 
secondary school, and sliding fee scale.

Senate amendment

    Revises the definition of eligible child to one whose 
family income does not exceed 100 percent of the State median, 
instead of 75 percent.
    Adds the following as an allowable use of a child care 
certificate: ``as a deposit for child care services if such a 
deposit is required of other children being cared for by the 
provider.''
    Revises the definition of relative child care provider by: 
adding great grandchild and sibling (if the provider lives in a 
separate residence) to the list of eligible children; striking 
the requirement that such providers be registered; and 
requiring such providers to comply with any ``applicable'' 
requirements govern child care provided by a relative.

Conference agreement

    The House recedes, with a modification that strikes the 
definition for elementary and secondary school and revises the 
definition of eligible child to one whose family income does 
not exceed 85 percent of the State median income.

                         14. Transfer of Funds

Present law

    No provision.

House Bill

    Adds a new section 658T to the CCDBG Act, allowing a State 
to transfer no more than 20 percent of CCDBG funds to one or 
more of the following programs:
            1. Part A of Title IV of the Social Security Act;
            2. Part B of Title IV of the Social Security Act;
            3. Child Nutrition Act of 1966;
            4. National School Lunch Act; and
            5. Title XX of the Social Security Act.

Senate amendment

    Transfer funds would be subject to the rules of the program 
to which they are transferred.
    States can transfer up to 30 percent of their cash 
assistance block grant (title IV-A) into the CCDBG.

Conference agreement

    The House recedes; no funds can be transferred out of the 
Child Care and Development Block Grant (although funds could be 
transferred into the CCDBG from other block grants).

                   15. Application to Other Programs

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Adds a new section 658T to the CCDBG Act, that requires 
States that use any Federal funds for child care services to 
ensure that such services meet the requirements, standards and 
criteria, with the exception of the 15 percent quality set-
aside, of the CCDBG and any regulations issued under the CCDBG. 
These funds must be administered through a uniform State plan 
and, to the maximum extent practicable, shall be transferred to 
the lead agency and integrated into the CCDBG program.

Conference agreement

    The Senate recedes (no provision).

   16. Repeals and Technical and Conforming Amendments (Section 815)

Present law

    Not applicable.

House bill

    Repeals the following programs:
            (1) Child Development Associate (CDA) Scholarship 
        Assistance;
            (2) State Dependent Care Development Grants;
            (3) Programs of National Significance under Title X 
        of the Elementary and Secondary Education Assistance 
        Act of 1965 (child care related to Cultural 
        Partnerships for At-Risk Children and Youth, and Urban 
        and Rural Education Assistance); and
            (4) Native-Hawaiian Family-Based Education Centers.
    (Note: Title I of the House bill also repeals child care 
assistance provided under current law by Title IV-A of the 
Social Security Act. This assistance is provided under 3 
programs known as AFDC Child Care, Transitional Child Care, and 
At-Risk Child Care.)

Senate amendment

    Repeals CDA Scholarship Assistance and State Dependent Care 
Development Grants.
    Requires the Secretary of HHS, after consultation with the 
appropriate committees of Congress and the Director of the 
Office of Management and Budget, to prepare and submit to 
Congress, within 6 months after enactment, a legislative 
proposal containing technical and conforming amendments that 
reflect the amendments and repeals made by this Act.
    (Note: Title I of the Senate amendment also earmarks and 
provides additional funds for child care, to replace the AFDC 
Child Care, Transitional Child Care, and At-Risk Child Care 
programs.)

Conference agreement

    The Senate recedes.

                       Title IX. Child Nutrition

                     1. child nutrition act of 1966

Present law

    Authorizes the Special Supplemental Nutrition Program for 
Women, Infants, and Children (WIC), the School Breakfast 
program, the Special Milk program, assistance to States for 
child nutrition administrative expenses and nutrition education 
and training, and school breakfast assistance for Defense 
Department overseas dependents' schools.
    The WIC program provides specific nutritious foods to 
lower-income pregnant, postpartum, and breastfeeding women, and 
infants and children (up to age 5). Recipients' family income 
must be below 185% of Federal poverty guidelines, and they must 
be judged at nutritional risk. Federal funds, set by 
appropriation levels, are made available to State health 
agencies under a formula. States then provide funds to local 
health agencies, which are responsible for day-to-day 
operations. Funds also are used for food, nutrition assessments 
and counselling, referrals to other programs, breastfeeding 
promotion, and a farmers' market program. [Sec. 17 and 21 of 
the Child Nutrition Act]
    Under the School Breakfast program, schools choosing to 
participate in the program receive per-meal Federal cash 
subsidies for all breakfasts they serve that meet Federal 
nutrition standards. Subsidies are indexed annually for 
inflation and differ depending on whether the meal is served 
free (to children from families with income below 130% of 
poverty), at a reduced price (to children with family income 
between 130% and 185% of poverty), or at ``full price'' (so-
called ``paid'' meals for those with family income above 185% 
of poverty or who do not apply for free or reduced-price 
meals). Schools with high proportions of lower-income students 
get larger per-meal subsidies, and special grants are provided 
to assist in paying start-up and expansion costs. [Sec. 4 of 
the Child Nutrition Act]
    Under the Special Milk program, schools and institutions 
not otherwise participating in a meal service program (and 
schools with split sessions for kindergartners) provide milk to 
all children at a low price or free, and each half-pint served 
is federally subsidized at a different rate--depending on 
whether it is served free or not. Provision of free milk is not 
required. [Sec. 3 of the Child Nutrition Act]
    Under the State administrative expense assistance program, 
grants are made to States to help cover administrative costs 
associated with child nutrition programs. The amount available 
each year is 1.5% of Federal cash payments for School Lunch, 
School Breakfast, Child and Adult Care Food, and Special Milk 
programs. [Sec. 7 of the Child Nutrition Act]
    For nutrition education and training, States are provided 
with Federal funds for training school food service personnel 
in food service management, instructing teachers in nutrition 
education, and teaching children about nutrition. [Sec. 19 of 
the Child Nutrition Act]
    Social provisions are made for Federal assistance for 
school breakfast programs in Defense Department overseas 
dependents' schools. [Sec. 20 of the Child Nutrition Act]

House bill

    Retains the designation of the Act as the Child Nutrition 
Act of 1966 and replaces the Act's current provisions with 
authorization for a Family Nutrition Block Grant Program.

Senate amendment

    No comparable provisions.

Conference agreement

    House recedes with an amendment to streamline provisions in 
the Child Nutrition Act of 1966. The following changes are 
intended to streamline the operation of programs under the 
Child Nutrition Act.
    1. Strike Sec. 4(e)(1)(B) to eliminate training and 
technical assistance in food preparation. [Sec. 923]
    2. Strike Sec. 4(f) and 4(g) to eliminate school breakfast 
expansion and start-up provisions. [Sec. 923]
    3. Strike Sec. 7(e) to eliminate provision allowing States 
to use a portion of SAE funds for commodity distribution 
administration. [Sec. 924]
    4. Revise Sec. 7(f) to provide that, after submission of an 
initial State plan, States are only required to submit 
substantive changes for approval. [Sec. 924]
    5. Strike Sec. 7(h) to eliminate requirement on State to 
participate in Agricultural studies. [Sec. 924]
    6. Strike Sec. 10(b)(2), Sec 10(b)(3) and Sec. 10(b)(4) to 
eliminate provisions on model competitive food language. [Sec. 
925]
    7. Change the provision that allows the Secretary to 
establish regulations providing for transfers of funds to 
require such regulations. This language is intended to require 
the Secretary to issue regulations that allow the transfer of 
funds on the basis of an approved State plan. It is not 
intended to require the Secretary to allow all States to 
transfer funds. [Sec. 925]
    8. Strike Sec. 11(a) to eliminate the bar against States 
imposing curriculum or instruction requirements on school. 
[Sec. 926]
    9. Strike Sec. 15(3)(C) to eliminate an out-of-date 
provision referring to Puerto Rico's special child care food 
program's use of schools. [Sec. 927]
    10. Strike Sec. 16(a) to eliminate the requirement that 
accounts and records be available ``at all times'' and insert 
``at any reasonable time.'' [Sec. 928]
    11. Revise Sec. 17(b)(15)(iii) to add limit on temporary 
residence of ``90 days'' to the definition of homeless. [Sec. 
929(a)]
    12. Strike 17(b)(15)(C) to eliminate the requirement for 
the provision of drug abuse and education materials from the 
definition of ``Drug Abuse Education.'' [Sec. 929(a)]
    13. Strike Sec. 17(c)(5) to eliminate the Secretary's 
promotion of WIC. [Sec. 929(b)]
    14. Revise Sec. 17(d)(2)(A)(ii)(II) to make a conforming 
change with respect to the reference to AFDC.
    15. Strike Sec. 17(d)(4) to eliminate provision for reports 
by the Secretary and the National Advisory Council. [Sec. 
929(c)]
    16. Revise Sec. 17(e)(1) to ``allow'' agencies to provide 
for drug abuse education. [Sec. 929(d)]
    17. Revise Sec. 17(e)(2) to eliminate provision regarding 
evaluation of nutrition education/breastfeeding promotion. 
[Sec. 929(d)]
    18. Revise Sec. 17(e)(4) to provide that States ``may'' 
provide local agencies with information materials on other 
programs for which WIC recipients may be eligible. [Sec. 
929(d)]
    19. Revise Sec. 17(e)(5) to provide that local agencies 
``may'' make available information on substance abuse 
counseling and treatment. [Sec. 929(d)]
    20. Strike Sec. 17(e)(6) to eliminate provision for 
``master file'' information requirement for provision of 
nutrition education. [Sec. 929(d)]
    21. Revise Sec. 17(f)(1)(A) to require that only 
substantive changes in the State plan be submitted annually. 
[Sec. 929(e)]
    22. Revise Sec. 17(f)(1)(C)(iii) to provide that State 
agencies are required to submit a plan to coordinate with other 
services or programs that might benefit WIC applicants.. [Sec. 
929(e)]
    23. Revise Sec. 17(f)(1)(C)(vi) to require State agencies 
to submit a plan to improve access to the program for 
participants and prospective applicants who are employed, or 
who reside in rural areas. [Sec. 929(e)]
    24. Strike Sec. 17(f)(1)(C)(vii) to eliminate requirement 
that State agencies submit plans to provide services to those 
most in need. [Sec. 929(e)]
    25. Strike Sec. 17(f)(1)(C)(ix) to eliminate requirement 
that State agencies submit plans to provide services to those 
in prison. [Sec. 929(e)]
    26. Strike Sec. 17(f)(1)(C)(x) Incorporates language into 
clause (ii). [Sec. 929(e)]
    27. Strike Sec. 17(f)(1)(C)(xii) to eliminate provision for 
conversion of competitive bidding savings. [Sec. 929(e)]
    28. Strike Sec. 17(f)(1)(C)(xiii) to eliminate requirement 
to State agencies to submit additional information as the 
Secretary may reasonably require. [Sec. 929(e)]
    29. Strike Sec. 17(f)(1)(D) Technical and conforming. [Sec. 
929(e)]
    30. Strike Sec. 17(f)(2) to eliminate requirement for State 
procedures for general public comments on the State plan. [Sec. 
929(e)]
    31. Revise Sec. 17(f)(5) to provide that accounts and 
records be available at any ``reasonable time.'' [Sec. 929(e)]
    32. Strike Sec. 17(f)(6) Technical and conforming 
(notification of eligibility/ineligibility). [Sec. 929(e)]
    33. Strike Sec. 17(f)(8) to eliminate State agency 
publicity/information requirements. [Sec. 929(e)]
    34. Revise Sec. 17(f)(9)(B) to eliminate specific notice 
requirements. [Sec. 929(e)]
    35. Revise Sec. 17(f)(11) to eliminate requirements 
regarding State staffing standards. [Sec. 929(e)]
    36. Revise Sec. 17(f)(12) to eliminate provisions dealing 
with products specifically designed for WIC recipients. [Sec. 
929(e)]
    37. Revise Sec. 17(f)(14) to provide that the Secretary 
``may'' provide education in languages other than English. 
[Sec. 929(e)]
    38. Revise Sec. 17(f)(17) to eliminate provisions dealing 
with incarcerated individuals. [Sec. 929(e)]
    39. Revise Sec. 17(f)(19) to provide that the Secretary 
``may'' provide information about other potential sources of 
information. [Sec. 929(e)]
    40. Strike Sec. 17(f)(20) to eliminate requirement for 
State policies on those who do not fulfill appointment 
schedules. [Sec. 929(e)]
    41. Strike Sec. 17(f)(22) Obsolete. [Sec. 929(e)]
    42. Strike Sec. 17(f)(24) Obsolete. [Sec. 929(e)]
    43. Revise Sec. 17(g)(5) Technical and conforming. [Sec. 
929(f)]
    44. Strike Sec. 17(g)(6) Obsolete. [Sec. 929(g)]
    45. Strike Sec. 17(h)(8)(A). Obsolete. [Sec. 929(g)]
    46. Strike Sec. 17(h)(8)(C). Obsolete. [Sec. 929(g)]
    47. Strike Sec. 17(h)(8)(G)(ii)-(ix) to eliminate specific 
provisions as to how the Secretary solicits bids. Insert a new 
clause (ii) to ``grandfather'' existing contracts. [Sec. 
929(g)]
    48. Revise Sec. 17(h)(8)(I), striking all but clause (v), 
which relates to funds for cost containment innovations. [Sec. 
929(g)]
    49. Strike Sec. 17(h)(8)(M) to eliminate requirement for 
product code pilot projects. [Sec. 929(g)]
    50. Strike Sec. 17(h)(10) to change from ``shall'' to 
``may'' the requirement for infrastructure development and 
breastfeeding promotion funding. [Sec. 929(g)]
    51. Revise Sec. 17(k)(3) providing that the council shall 
elect a Chairman and a Vice-Chairman. [Sec. 929(h)]
    52. Strike Sec. 17(n). Obsolete. [Sec. 929(i)]
    53. Strike Sec. 17(o) to eliminate community college 
demonstration. [Sec. 929(i)]
    54. Strike Sec. 17(p) to eliminate authorization to make 
grants for information/data systems. [Sec. 929(i)]
    55. Strike Sec. 18 to eliminate unused authority for cash 
grants for nutrition education. [Sec. 930]
    56. Revise Sec. 19(a) to modify language concerning 
Congressional findings about nutrition education and training. 
[Sec. 931(a)]
    57. Revise Sec. 19(b) to modify language regarding purpose 
of nutrition education and training. [Sec. 931(a)]
    58. Revise Sec. 19(f)(1)(A), striking clauses (ix)-(xix), 
eliminating unnecessary stipulations on uses of funds. [Sec. 
931(b)]
    59. Strike Sec. 19(f)(1)(B) to eliminate ``language 
appropriate'' information provision. [Sec. 931(b)]
    60. Strike Sec. 19(f)(2) and 19(f)(4). Technical and 
conforming. [Sec. 931(b)]
    61. Revise Sec. 19(g)(1) to provide that accounts and 
records shall be available at any ``reasonable time.'' [Sec. 
931(c)]
    62. Revise Sec. 19(h)(1) to eliminate paragraph cross-
references. Technical and conforming. [Sec. 931(d)]
    63. Revise Sec. 19(h)(2), striking all but the first 
sentence to eliminate language concerning assessment of 
nutrition education and training needs. [Sec. 931(d)]
    64. Revise Sec. 19(h)(3) to eliminate specific requirements 
with regard to nutrition coordinator's duties. [Sec. 931(d)]
    65. Revise Sec. 19(i), to make the Nutrition Education and 
Training program discretionary instead of mandatory and 
authorize appropriations of $10 million per year. [Sec. 931(e)]
    66. Strike Sec. 19(J) to eliminate requirement for 
Secretarial assessment of nutrition education and training. 
[Sec. 931(e)]
    67. Repeal Sec. 21. [Sec. 932]
    68. Insert, at the end of the Act, subsection (n), to 
disqualify approved vendors that are disqualified from 
accepting benefits under the food stamp program. [Sec. 929(j)]

           2. authorization for family nutrition block grant

                       A. Requirement for Grants

Present law

    The Child Nutrition Act (see item 1) and the National 
School Lunch Act (see item 11) require that the Secretary of 
Agriculture provide Federal assistance to States for the WIC, 
Child and Adult Care Food Summer Food Service, and Special Milk 
programs, as well as other support (e.g., for State 
administrative expenses and nutrition education and training), 
under terms of agreements with States meeting Federal 
standards.

House bill

    Directs the Secretary of Agriculture to provide to each 
State that submits an annual application in accordance with the 
revised Child Nutrition Act's requirements (see item 4) an 
annual family nutrition grant for the purpose of achieving the 
goals of the Family Nutrition Block Grant Program (see item 2B 
for the program's goals and item 3 for State allotments).

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see Item #1).

                                B. Goals

Present law

    The Child Nutrition Act declares it the policy of Congress 
to extend, expand, and strengthen child nutrition programs as a 
measure to safeguard the health and well-being of the Nation's 
children and to encourage the domestic consumption of 
agricultural commodities by assisting States through grants and 
other means to more effectively meet children's nutritional 
needs. [Sec. 2 of the Child Nutrition Act]

House bill

    Establishes the goals of the Family Nutrition Block Grant 
Program:
            (1) to provide nutritional risk assessments, food 
        assistance based on the assessments, and nutrition 
        education and counseling to economically disadvantaged 
        pregnant, postpartum, and breastfeeding women, as well 
        as infants and young children, determined to be at 
        nutritional risk (see item 10 for definitions);
            (2) to provide nutritional risk assessments of 
        participating women so that food assistance and 
        nutrition education is provided that meets their 
        specific needs;
            (3) to provide nutrition education to participating 
        women to increase their awareness of the foods needed 
        for good health;
            (4) to provide food assistance, including 
        nutritious supplements, to participating women in order 
        to reduce the incidence of low-birthweight babies and 
        babies born with birth defects because of nutritional 
        deficiencies;
            (5) to provide food assistance, including 
        nutritious supplements, to participating women, 
        infants, and children to ensure their future good 
        health;
            (6) to ensure that participating women, infants, 
        and children are referred to other health services, 
        including routine pediatric/obstetric care;
            (7) to ensure that children from economically 
        disadvantaged families in day care facilities, family 
        day care homes, homeless shelters, settlement houses, 
        recreational centers, Head Start centers, Even Start 
        programs, and facilities for disabled children receive 
        nutritious meals, supplements, and low-cost milk; (see 
        item 10B for definition of ``economically 
        disadvantaged''); and
            (8) to provide summer food service programs for 
        children from economically disadvantaged families when 
        school is not in session (see item 10B for definition 
        of ``economically disadvantaged'').

Senate amendment

    No provision.

Conference agreement

    Senate recedes with an amendment making changes to the 
Child Nutrition Act (see Item #1).

                         C. Timing of Payments

Present law

    No provision.

House bill

    Directs that the Secretary of Agriculture make family 
nutrition grant payments to the States on a quarterly basis.

Senate amendment

    No comparable provision.

Confernce agreement

    Senate recedes with an amendment making changes to the 
Child Nutrition Act (see Item #1).

              3. Allotment of Family Nutrition Block Grant

Present law

    Current activities that may be funded under the House 
bill's Family Nutrition Block Grant include those now supported 
by the WIC program, the Homeless Children Nutrition program 
(authorized under section 17B of the National School Lunch 
Act), the Child and Adult Care Food program (authorized under 
section 17 of the National School Lunch Act), the Summer Food 
Service program (authorized under section 13 of the National 
School Lunch Act), and the Special Milk program.
    Under the WIC program, Federal funds, determined by 
appropriations levels, are made available to States under a 
formula that reflects State caseloads, food cost inflation, 
need (as evidenced by poverty and health indices) and a 
specified national average per participant grant; in effect, 
funds are allotted so that each State can maintain its caseload 
from year to year, and extra money is shared so as to support 
expanded enrollment in States with greater need.
    Under the Homeless Children Nutrition program, Federal 
funds are made available to existing projects to continue 
operations and, from any additional amounts, money is provided 
for new projects or to expand existing projects.
    Under the Child and Adult Care Food program, child and 
adult care centers and family day care homes receive Federal 
reimbursements for each meal or supplement served at 
legislatively established, inflation indexed rates.
    Under the Summer Food Service program, sponsors receive 
Federal reimbursements for each meal or supplement served, at 
legislatively established, inflation indexed rates.
    Under the Special Milk program, schools and other 
participating institutions receive specified, inflation indexed 
Federal reimbursements for each half-pint of milk served.

House bill

    As set forth below, provides for the Secretary of 
Agriculture to make State allotments of any appropriations for 
the Family Nutrition Block Grant.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see Item #1).

                     A. First Year State Allotments

Present law

    No provisions.

House bill

    For the first fiscal year in which grants are made, 
provides that the Secretary make allotments to States based on 
the proportion of funds each State received under prior law for 
the preceding fiscal year.
    Base-year State shares.--Each State's allotment would be 
its prior-year share of funds received under the WIC and 
Homeless Children Nutrition programs, plus its prior-year share 
of 87.5% of the amounts received under the Child and Adult Care 
Food, Summer Food Service, and Special Milk programs.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see Item #1).

                    B. Second Year State Allotments

Present law

    No provision.

House bill

    For the second fiscal year in which grants are made, 
provides that (1) 95% of the amount appropriated be allotted 
according to each State's share of the amount allotted in the 
first year and (2) 5% of the amount allotted be based on each 
State's share of the number of individuals receiving assistance 
under the grant during the 1-year period ending the preceding 
June 30.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

               C. Third and Fourth Year State Allotments

Present law

    For the third and fourth fiscal years in which grants are 
made, provides that (1) 90% of the amount appropriated be 
allotted according to each State's share of the amount allotted 
in the preceding year and (2) 10% of the amount allotted be 
based on each State's share of the number of individuals 
receiving assistance under the grant during the 1-year period 
ending the preceding June 30.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

                     D. Fifth Year State Allotments

Present law

    No provision.

House bill

    For the fifth fiscal year in which grants are made, 
provides that (1) 85% of the amount appropriated be allotted 
according to each State's share of the amount allotted in the 
fourth year and (2) 15% of the amount allotted be based on each 
State's share of the number of individuals receiving assistance 
under the grant during the 1-year period ending the preceding 
June 30.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

               4. Application for Family Nutrition Grants

Present law

    Nutrition requirements for food assistance provided under 
the current WIC, Child and Adult Care Food, and Summer Food 
Service programs are established by the Secretary of 
Agriculture, as are the general standards for determining 
nutritional risk in women, infants, and children, on the basis 
of tested nutritional research. [Sec. 17(b)(8) & (14) and 
(f)(12) of the Child Nutrition Act; Sec. 17(g)(1) and Sec. 
13(f) of the National School Lunch Act]
    The use/disclosure of information obtained from 
applications for free/reduced-price meals is limited to those 
administering/enforcing child nutrition programs, 
administrators of other health or education programs (with 
restrictions), and the General Accounting Office and law 
enforcement officials. [Sec. 9(b)(2) of the National School 
Lunch Act]

House bill

    Provides that the Secretary make a family nutrition grant 
to a State if it submits an application containing only the 
following:
    (1) an agreement that the State will use the grant in 
accordance with Family Nutrition Block Grant program 
requirements (see item 5);
    (2) an agreement that the State will set minimum nutrition 
requirements for food assistance provided under the grant based 
on the most recent tested nutrition research available (but the 
requirements may not prohibit the substitution of foods to 
accommodate medical or other special dietary needs, and would 
have to be based, at a minimum, on the weekly average nutrient 
content of school lunches or other standards set by the State);
    (3) an agreement that, with respect to assistance to 
pregnant, postpartum, and breastfeeding women, and infants and 
children, the State will implement minimum nutrition 
requirements based on the most recent tested nutritional 
research available or the model nutrition standards developed 
by the National Academy of Sciences (see item 8B);
    (4) an agreement that the State will take reasonable steps 
it deems necessary to restrict the use and disclosure of 
information about those receiving assistance under the grant;
    (5) an agreement that the State will not use more than 5% 
of its grant for administrative costs incurred to provide 
assistance (costs associated with nutritional risk assessments 
of pregnant, postpartum, and breastfeeding women, and infants 
and children, as well as those associated with nutrition 
education and counseling for these individuals, would not be 
considered administrative costs subject to the 5% limit); and
    (6) an agreement that the State will submit an annual 
report to the Secretary (see item 6).

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

   5. use of amounts provided under the family nutrition block grant

                        A. Activities Supported

Present law

    The WIC program provides nutritional risk assessment, 
specific nutritious foods (under Federal guidelines), nutrition 
education/counseling, breastfeeding support, and a farmers' 
market program for lower-income pregnant, postpartum, and 
breastfeeding women, as well as infants and children (up to age 
5). Recipients' family income must be below 185% of poverty, 
and they must be judged at nutritional risk. [Sec. 17 of the 
Child Nutrition Act]
    The Special Milk program provides Federal reimbursement for 
each half-pint of milk served in schools and other child care 
institutions not participating in a meal service program (and 
schools with split sessions for kindergartners). Milk is served 
at a ow price or for free and each half-pint is subsidized at a 
different rate depending on whether it served free or not. 
Provision of free milk is not required. [Sec. 3 of the Child 
Nutrition Act]
    The Child and Adult Care Food program provides Federal per-
meal/supplement reimbursements for all meals and supplements 
served in public and private nonprofit child care centers, 
public and private nonprofit adult day care centers, certain 
for-profit child and adult day care centers, and family day 
care homes. Reimbursements for meals/supplements served in 
child/adult care centers differ according to whether they are 
served free (to children from families with income below 130% 
of Federal poverty guidelines), at a reduced price (to children 
with family income between 130% and 185% of the poverty 
guidelines), or at ``full price'' (so-called ``paid'' meals and 
supplements for those with family income above 185% of poverty 
or who do not apply for free or reduced price meals/
supplements). Reimbursements for meals and supplements served 
in family day care homes do not vary by the family income of 
the child, and sponsors of family day care homes receive 
monthly payments for administrative costs. [Sec. 17 of the 
National School Lunch Act]
    The Summer Food Service program provides Federal per meal/
supplement reimbursements for all summer meals and supplements 
served through public and private nonprofit sponsors (including 
schools and local governments) to children in areas where 50% 
or more have family income below 185% of the Federal poverty 
guidelines (are eligible for free or reduced-price school 
meals). Summer food service subsidies also are provided to 
public and private nonprofit summer camps and higher education 
institutions in the National Youth Sports program. [Sec. 13 of 
the National School Lunch Act]
    The Homeless Children Nutrition program grants funds to 
public and private nonprofit sponsors providing food service 
(meals and supplements), similar to that provided under the 
Child and Adult Care Food program, to homeless children under 
age 6 in shelters. [Sec. 17B of the National School Lunch Act] 
[General Note: In addition to cash reimbursements, Federal 
commodity assistance is available for the Child and Adult Care 
Food and Summer Food Service programs.]

House bill

    Provides that the Secretary of Agriculture make family 
nutrition grants to States if they agree to use their grant to:
            (1) provide nutritional risk assessment, food 
        assistance based on the assessment, and nutrition 
        education and counseling to economically disadvantaged 
        pregnant, postpartum, and breastfeeding women, and 
        infants and young children, who are determined to be at 
        nutritional risk (see item 10 for definitions);
            (2) provide milk in nonprofit nursery schools, 
        child care centers, settlement houses, summer camps, 
        and similar child care settings to children from 
        economically disadvantaged families (see item 10 for 
        definitions) [Note: Under the School-Based Nutrition 
        Block Grant Program, support could be provided for milk 
        served in schools.];
            (3) provide food service in institutions and family 
        day care homes providing child care to children from 
        economically disadvantaged families (see item 10 for 
        definitions) [Note: Under the School-Based Nutrition 
        Block Grant Program, support could be provided for 
        child care food service provided through schools. 
        Further Note: Adult-care food service would not be 
        funded under the Family Nutrition Block Grant 
        program.];
            (4) provide summer food service to economically 
        disadvantaged children through programs carried out by 
        nonprofit food authorities, local governments, higher 
        education institutions in the National Youth Sports 
        program, and nonprofit summer camps (see item 10 for 
        definitions) [Note: Under the School-Based Nutrition 
        Block Grant Program, support could be provided for 
        summer food service by schools.]; and
            (5) provide nutritious meals to pre-school-age 
        homeless children in shelters and other facilities 
        serving the homeless.
    [General Note: Federal commodity assistance would not be 
available for child care food and summer food service 
activities under the family nutrition grant.]

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

   B. Additional Requirements for Assistance for Women, Infants, and 
                                Children

Present law

    Under the WIC program, States must carry out cost 
containment measures in procuring infant formula (and, where 
practicable, other foods). Cost containment must be by 
competitive bidding (selection of a single source offering the 
lowest price) or another method that yields equal or greater 
savings. Cost savings (e.g., through manufacturer rebates) may 
be used by the State for WIC program purposes. The Secretary of 
Agriculture must provide technical assistance for cost-
containment bids and offer to solicit multi-State bids for 
infant formula and infant cereal. In addition, certain rules 
against bid-rigging and anti-competitive practices are 
established. [Sec. 17(b) (17)-(20) and (h) (8) and (9) of the 
Child Nutrition Act, and Sec. 25 of the National School Lunch 
Act]

House bill

    Requires that each State ensure that not less than 80% of 
its family nutrition grant is used to provide nutrition risk 
assessment, food assistance based on the assessment, and 
nutrition education and counseling to economically 
disadvantaged pregnant women, postpartum women, breastfeeding 
women, infants, and young children.
    With respect to assistance provided to women, infants, and 
young children, requires States to establish and carry out a 
cost containment system for procuring infant formula. Requires 
States to use cost containment savings for any of the 
activities supported under their family nutrition grant. 
Requires States to submit annual reports to the Secretary (1) 
describing their infant formula cost containment system and (2) 
estimating the cost savings from the system for the report year 
compared to savings from the preceding year, where appropriate.
    Requires States to ensure that equitable assistance for 
economically disadvantaged pregnant women, postpartum women, 
breastfeeding women, infants, and young children is provided to 
members of the Armed Forces and their dependents, regardless of 
their State of residence (see item 10 for definitions).

Senate amendment

    Includes findings on the success of the WIC program in 
improving the health status of women, infants, and children and 
saving Medicaid expenditures, as well as the importance of 
manufacturer rebates in helping to fund the WIC program. 
Provides that it is the sense of the Senate that any 
legislation not eliminate or in any way weaken present 
competitive bidding requirements for the purchase of infant 
formula in programs supported with Federal funds.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

        C. Child Care Food Assistance on Military Installations

Present law

    Assisted child care facilities must be licensed under 
Federal, State, or local rules. [Sec. 17(a)(1) of the National 
School Lunch Act]

House bill

    Requires States to provide equitable assistance under its 
program for child care facilities to Defense Department child 
care programs on military installations--to the extent 
consistent with the number of children in the programs and 
after consultation with the programs' representatives.
    In carrying out programs for child care facilities, bars 
States from requiring that those on military installations be 
licensed under State law if they are licensed by the Defense 
Department.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment making changes to the 
Child Nutrition Act (see item 1).

  D. Authority to Use Family Nutrition Block Grant Amounts for Other 
                                Purposes

Present law

    No provision.

House bill

    Allows States to use not more than 20% of amounts received 
from a family nutrition block grant for any fiscal year to 
carry out State programs under other block grants authorized 
by:
            (1) part A of title IV of the Social Security Act 
        (relating to welfare for families with children);
            (2) part B of title IV of the Social Security Act 
        (relating to provision of child welfare services);
            (3) title XX of the Social Security Act (relating 
        to provision of social services);
            (4) the National School Lunch Act (relating to 
        school-based nutrition block grants); and
            (5) the Child Care and Development Block Grant.
    Provides that States may not transfer funds to other block 
grants unless the appropriate State agency makes a 
determination that sufficient amounts will remain available for 
the fiscal year to carry out activities under the Family 
Nutrition Block Grant program.
    Provides that family nutrition grant amounts States 
transfer to other block grants (noted above) will not be 
subject to the requirements of the Family Nutrition Block Grant 
program under the revised Child Nutrition Act, but will be 
subject to the requirements that apply to Federal funds 
provided directly to the block grant to which they are 
transferred.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to the 
Child Nutrition Act (see item 1).

                               6. reports

Present law

    No comparable provision.

House bill

    Requires that States, as a condition of receiving a family 
nutrition grant, agree to submit an annual report to the 
Secretary of Agriculture describing:
            (1) the number of individuals receiving assistance 
        under the grant for the reporting (fiscal) year;
            (2) the different types of assistance provided;
            (3) the extent to which the assistance provided was 
        effective in achieving the goals of the Family 
        Nutrition Block Grant program (see item 2B);
            (4) the standards and methods the State is using to 
        ensure the nutritional quality of assistance under the 
        grant;
            (5) the number of low-birthweight births in the 
        State in the reporting (fiscal) year compared to the 
        number of low-birthweight births in the previous year; 
        and
            (6) any other information that can be reasonably 
        required by the Secretary.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to the 
Child Nutrition Act (see item 1).

                              7. penalties

                       A. Penalty for Violations

Present law

    The Child Nutrition and National School Lunch Acts provide 
penalties for fraud in relation to assistance provided under 
either Act, grant the Secretary of Agriculture authority to 
establish and adjust claims against States, and establish a 
compliance and accountability program to monitor the use of 
Federal funds. [Sec. 12(g) and Sec. 22 of the National School 
Lunch Act, and Sec. 16 of the Child Nutrition Act]

House bill

    Requires the Secretary of Agriculture to reduce family 
nutrition grant amounts otherwise payable to a State by any 
amount paid under the grant that an audit made under the 
``Single Audit Act'' (chapter 75 of title 31 of the United 
States Code) finds has been used in violation of the revised 
Child Nutrition Act. However, the Secretary is barred from 
reducing any quarterly payment to the State by more than 25%.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

           B. Penalty for Failure to Submit a Required Report

Present law

    No specific provision

House bill

    Requires the Secretary to reduce by 3% the family nutrition 
grant amount otherwise payable to a State for any fiscal year 
if the Secretary determines that the State has not submitted 
the required annual report (see item 6) for the immediately 
preceding fiscal year within 6 months after the end of that 
fiscal year.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

 8. Model nutrition standards for food assistance for women, infants, 
                              and children

                             A. Requirement

Present law

    No comparable provisions. [Note: The Secretary establishes 
nutrition standards for and foods to be made available under 
the WIC program; Sec. 17(b)(14) and 17(f)(12) of the Child 
Nutrition Act.]

House bill

    Not later than April 1, 1996, requires the National Academy 
of Sciences to develop model nutrition standards for food 
assistance provided to economically disadvantaged pregnant 
women, postpartum women, breastfeeding women, infants, and 
young children under the Family Nutrition Block Grant program 
(see item 10 for definitions). The standards are to be 
developed by the Food and Nutrition Board of the Academy's 
Institute of Medicine, in cooperation with pediatricians, 
obstetricians, nutritionists, and directors of programs 
providing food assistance, nutrition education and counseling 
to these women, infants, and children.
    The model standards must require that food assistance 
provided to these women, infants and children contain nutrients 
that are lacking in their diets, as determined by nutritional 
research.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

                         B. Report to Congress

Present law

    No provision.

House bill

    Not later than one year after the model nutrition standards 
(noted above) are developed, requires the National Academy of 
Sciences to report to Congress regarding effort of States to 
implement them.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (See item 1).

                   9. Authorization of Appropriations

                            A. Authorization

Present law

    Federal appropriations for activities under current law 
replaced by the House bill's Family Nutrition Block Grant 
program are authorized at such sums as are necessary, except 
for the Homeless Children Nutrition program (provided specific 
amounts). [Sec. 13(r), 17(b), and 17B of the National School 
Lunch Act; Sec. 3(a) and 4(a) of the Child Nutrition Act]

House bill

    Authorizes appropriations for the Family Nutrition Block 
Grant program under the revised Child Nutrition Act at: $4.606 
billion for fiscal year 1996, $4.777 billion for fiscal year 
1997, $4.936 billion for fiscal year 1998, $5.120 billion for 
fiscal year 1999, and $5.308 billion for fiscal year 2000.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

                            B. Availability

Present law

    With the exception of funding for the WIC program, 
appropriations for the activities under current law to be 
replaced by the Family Nutrition Block Grant program generally 
cannot be carried over to the next fiscal year.

House bill

    Authorizes amounts for the Family Nutrition Block Grant 
program to remain available until the end of the fiscal year 
subsequent to the year they were appropriated for.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

                            10. definitions

A. Breastfeeding Women, Infants, Postpartum Women, Pregnant Women, and 
                             Young Children

Present law

    For purposes of the WIC program: (1) breastfeeding women 
are defined as women up to 1 year postpartum who are 
breastfeeding their infants; (2) infants are defined as persons 
under 1 year of age; (3) postpartum women are defined as women 
up to 6 months after termination of pregnancy; (4) pregnant 
women are defined as those who have 1 or more fetuses in utero; 
and (5) young children are persons who have had their first 
birthday but not attained their fifth birthday. [Sec. 17(b) of 
the Child Nutrition Act]

House bill

    For purposes of State family nutrition grant programs, 
adopts present-law definitions of breastfeeding women, infants, 
postpartum women, pregnant women, and young children.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

                     B. Economically Disadvantaged

Present law

    No directly comparable provisions. [Note: Under present 
law, means tests for assistance apply as follows: (1) for the 
WIC program, recipients must have family income below 185% of 
the Federal poverty guidelines (but States may not set 
standards below poverty); and (2) for those in child and adult 
care centers under the Child and Adult Care Food program, 
persons with family income below 130% of poverty are eligible 
for free meals/supplements, those with family income between 
130% and 185% of poverty are eligible for reduced-price meals 
and supplements, and those with family income above 185% of 
poverty (or who do not apply for free or reduced-price 
treatment) are eligible for ``paid'' (but still subsidized 
meals and supplements. No individual income test is applied in 
the family day care home component of the Child and Adult Care 
Food program, the Summer Food Service program, the Special Milk 
program, and the Homeless Children Nutrition program.

House bill

    The term ``economically disadvantaged'' is defined to apply 
to individuals or families with annual income below 185% of the 
Federal poverty guidelines. [Note: No assistance under a family 
nutrition grant (other than aid to homeless children) could be 
given to those with family income above 185% of poverty.]

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see item 1).

                        C. School and Secretary

Present law

    ``Schools'' are defined as public or private nonprofit 
elementary, intermediate, or secondary schools. The 
``Secretary'' is defined as the Secretary of Agriculture.

House bill

    ``Schools'' and the ``Secretary'' would, under the Family 
Nutrition Block Grant program, have the same meaning as in 
present law.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see Item #1).

                                D. State

Present law

    In general, ``State'' is defined as the 50 States, the 
District of Columbia, Puerto Rico, the Northern Marianas, 
American Samoa, Guam, and the Virgin Islands. In the WIC 
program, it includes an Indian tribe, band, or group recognized 
by the Interior Department, an intertribal council or group 
recognized by the Interior Department, or the Indian Health 
Service.

House bill

    ``State'' would, under the Family Nutrition Block Grant 
program have the same meaning as in present law. In addition, 
Indian tribal organizations (as defined under section 4(l) of 
the Indian Self-Determination and Education Assistance Act) 
would be included as States and could apply for grants.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment making changes to Child 
Nutrition Act (see Item #1).

                     11. National School Lunch Act

Present law

    Authorizes the School Lunch, Summer Food Service, Child and 
Adult Care Food, and Homeless Children Nutrition programs. Also 
authorizes commodity assistance for child nutrition programs 
and school lunch assistance for Defense Department overseas 
dependents' schools.
    Under the School Lunch program, schools choosing to 
participate receive per-meal Federal subsidies for all lunches 
they serve that meet Federal nutrition standards. Subsidies are 
indexed annually and differ depending on whether the meal is 
served free (to children from families with income below 130% 
of Federal poverty guidelines), at a reduced price (to children 
with family income between 130% and 185% of poverty), or at 
``full price'' (so-called ``paid'' lunches for those with 
family income above 185% of poverty or who do not apply for 
free or reduced-price meals). Schools with high proportions of 
free or reduced-price participants receive an additional per-
meal subsidy. [Sec. 4 & 11 of the National School Lunch Act]
    The Summer Food Service program provides Federal per-meal/
supplement reimbursements for all summer meals and supplements 
served through public and private nonprofit sponsors (including 
schools and local governments) to children in areas where 50% 
or more have family income below 185% of the Federal poverty 
guidelines (are eligible for free or reduced-price school 
meals). Summer food service subsidies also are provided to 
public and private nonprofit summer camps and higher education 
institutions in the National Youth Sports program. [Sec. 13 of 
the National School Lunch Act]
    The Child and Adult Care Food Service program provides 
Federal per-meal reimbursements for all meals and supplements 
served in public and private nonprofit child care centers, 
public and private nonprofit adult day care centers, certain 
for-profit child and adult daycare centers, and family day care 
homes. Reimbursements for meals/supplements in centers vary by 
the recipient's income, but not in family day care homes. 
Certain schools with after-school care programs also may 
receive assistance. [Sec. 17 & 17A of the National School Lunch 
Act] The Homeless Children Nutrition program grants funds to 
public and private nonprofit sponsors providing food service 
(meals and supplements), similar to that provided under the 
Child and Adult Care Food program, to homeless children under 
age 6 in shelters.
    The Agriculture Department is required to provide commodity 
support for meals served by institutions in the School Lunch, 
Child and Adult Care Food, and Summer Food Service programs. 
Schools and other institutions are ``entitled'' to a specific 
dollar value of commodities based on the number of meals 
served. Schools and other institutions also receive ``bonus'' 
commodities donated from Federal stocks at the Agriculture 
Department's discretion. [Sec. 6 & 14 of the National School 
Lunch Act]
    The Secretary of Agriculture is required to make funds 
available for school lunch programs in Defense Department 
overseas dependent's schools to the same degree as for other 
schools (authority for school breakfast programs in these 
schools is contained in Sec. 20 of the Child Nutrition Act). 
[Sec. 17A of the National School Lunch Act]

House bill

    Retains the designation of the Act as the National School 
Lunch Act and replaces the Act's current provisions with 
authority for a School-Based Nutrition Block Grant Program.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment to:

A. Create an optional State block grant demonstration program entitled, 
    ``School Nutrition Optional Block Grant Demonstration Program.''

    Optional Block Grant Demonstration Program.--Under the 
terms of the optional block grant demonstration program, seven 
States--one per USDA Food and Consumer Service Region--will be 
eligible to receive funds to carry out programs offering school 
breakfasts and lunches for all school children under a block 
grant demonstration program.
    Decision to participate.--States opting to participate in 
the block grant demonstration program may not reverse such 
decision prior to the end of the authorization period.
    State plan.--States are required to submit a State plan to 
the Secretary in order to participate in the block grant 
demonstration program.
    Use of funds.--Allows States to use funds only for school 
lunches, breakfasts, meal supplements and for the purchase of 
equipment or improvement of facilities needed to improve school 
food services.
    Nonprofit operation.--School lunch and breakfast programs 
are to be operated on a nonprofit basis.
    Administrative expenses.--None of the funds under the block 
grant demonstration program are to be used for State 
administrative expenses (States will continue to receive such 
funds under current SAE provisions).
    Nutritional requirements.--States are to provide minimum 
nutritional requirements for meals based on the most recent 
tested nutritional research available. Such requirements shall 
be consistent with the goals of the most recent Dietary 
Guidelines for Americans. Meals shall provide, on the average 
over a week, at least \1/3\ of the recommended dietary 
allowance for lunches and \1/4\ of the recommended dietary 
allowance for breakfasts. The Secretary may not impose any 
additional nutritional requirements beyond those specified in 
this section.
    State review.--States will review the meal operations in 
each school food authority participating in the block grant 
demonstration program no later than two years after 
implementation of the block grant demonstration program and at 
the end of each 5-year period thereafter.
    Income eligibility.--The State plan will describe how the 
block grant demonstration program will serve specific groups of 
children in the State. The plan will further describe the 
income eligibility limitations established for free meals and 
low-cost meals. A state may use group eligibility criteria 
based upon census or other data that measures family income in 
determining eligibility.
    Free meals.--State's plans are required to offer access to 
free meals to students who are members of families with incomes 
at or below 130 percent of poverty and who attend a school 
participating in the block grant demonstration program. In 
addition, the block grant demonstration program allows States 
to provide students who are members of families with incomes at 
or above 130 percent of poverty free school lunches and school 
breakfasts.
    Low cost meals.--The State plan must provide for a low cost 
meal payment charge for students who are members of families 
whose incomes are equal to or more than 130 percent of poverty 
and equal to or less than 185 percent of the poverty line. 
States may develop their own eligibility criteria which may be 
based on group eligibility, census data, demographic 
information, and prior year participation.
    Proportion of students served.--The State shall ensure that 
for any year the proportion of low income and needy students 
served meals under the block grant demonstration program is not 
less than the proportion of such students served meals in the 
last year of participation by the State in the School Lunch 
program or the School Breakfast program.
    Proportion of funds used to provide service.--The State 
plan shall provide that for any year the proportion of funds 
used by the State to provide meals for low income and needy 
students under the block grant demonstration program is not 
less than the proportion of funds used to provide meals for 
such students in the last year of participation by the State in 
the School Lunch program or the School Breakfast program.
    Continued participation.--Each school participating in the 
current school lunch and breakfast program in a State opting 
into the block grant demonstration program is to be given the 
opportunity to operate similar programs under the block grant 
demonstration program.
    CASH/CLOC.--States are required to permit to permit a 
school district, nonprofit private school or DOD domestic 
dependents' school to receive commodity assistance in the same 
form they received such assistance as of January 1, 1987.
    Privacy.--States shall provide for safeguarding and 
restricting the use and disclosure of information about 
children receiving assistance under this Act. Physical 
segregation and overt identification of children participating 
in the block grant demonstration program is prohibited.
    Required report.--In order to participate, States must 
agree to submit a report to the Secretary each fiscal year 
describing (a) the number of children receiving assistance; (b) 
the different types of assistance provided; (c) the extent to 
which assistance was effective in achieving in achieving 
program goals; (d) the standards and methods used to ensure the 
nutritional quality of meals and meal supplements; and (e) 
other information the Secretary can reasonably require. Failure 
to submit the required report will cause a 3 percent reduction 
in amounts otherwise payable to a State.
    Compliance.--The Secretary is required to review and 
monitor State compliance and withhold funds to the State with 
respect to the program or activity for which noncompliance is 
found, until the Secretary determines the problem has been 
corrected. The sanctions to be implied may include a partial 
reduction of grant in subsequent years. The Secretary may seek 
financial restitution for misused funds.
    Payments to States.--Payments to States under the block 
grant demonstration program shall be on a quarterly basis and 
may be expended by the State for the current fiscal year or the 
succeeding fiscal year.
    Audits.--A yearly audit is required.
    Allotment.--In the first year of participation, the 
Secretary is required to allot to each participating State an 
amount that is equal to the amount the Secretary projects will 
be made available to the State to carry out the school lunch 
and breakfast programs (including commodities) for the current 
fiscal year. In succeeding years, the amount will equal the 
amount provided in the preceding fiscal year, adjusted to 
reflect changes in the consumer price index, services for food 
away from home, and changes in each State's student enrollment.
    State contribution.--Funds appropriated or used 
specifically by the State for block grant demonstration program 
purposes shall be not less than the amount that the State made 
available for the preceding fiscal year for the School Lunch 
program and the School Breakfast program.
    Commodities.--Not less than 8 percent and not more than 10 
percent of the amount of a State's allotment will be in the 
form of commodities.
    Alternative assistance.--Requires the Secretary to arrange 
for the provision of assistance and reduce State allotments 
accordingly, in cases where a State is prohibited by law from 
providing assistance to a nonprofit private school or a DOD 
domestic dependents' school or if a State has substantially 
failed or is unwilling to provide such assistance to a 
nonprofit private school, a DOD domestic dependents' school or 
a public school.
    Transition.--A State opting into the block grant 
demonstration program may use funds and commodities from the 
block grant demonstration program to transition out of the 
block grant demonstration program at the end of the 
authorization period.
    Evaluation.--No later than three years after the 
establishment of the block grant demonstration program the 
Secretary is to conduct an evaluation and submit a report to 
Congress, including the comments of the Comptroller General. 
The report is to include information on the effects of the 
block grant demonstration program on the nutritional quality of 
meals; the degree to which children, particularly low income 
children participated in the block grant demonstration program, 
the income distribution of children served and the amount of 
assistance such children received; the types of meals offered 
under the block grant demonstration program; how the 
implementation of the block grant demonstration program differs 
from the implementation of the school lunch and breakfast 
programs; the effect of the block grant demonstration program 
on state and school administrative costs, the effect of the 
block grant demonstration program on paperwork.
    Authorization period.--the authority to carry out the block 
grant demonstration program shall terminate on September 30, 
2000. [Sec. 914]

   B. Streamline provisions of the National School Lunch Act of 1966.

    1. Revise Sec. 8, striking the third and fourth sentences, 
moving the 5th sentence (defining child) to the Miscellaneous/
Definitions section of the Act and striking language relating 
to maximum per meal reimbursements. [Sec. 901]
    2. Strike Sec. 9(a)(2)(B) to eliminate the required 
purchase of low fat cheese equivalent to estimated decline in 
milk fat purchases because of elimination of whole milk 
requirement. [Sec. 902]
    3. Strike Sec. 9(a)(3) to eliminate administrative 
procedures to diminish plate waste. [Sec. 902]
    4. Strike Sec. 9(b)(2)(A) to eliminate requirement that 
State Educational Agencies and local school food authorities 
announce income eligibility requirements each year. [Sec. 902]
    5. Revise Sec. 9(b)(5), striking sentence relating to 
physical segregation and overt identification (duplicative of 
preceding language). [Sec. 902]
    6. Revise Sec. 9(c), striking the second, fourth and sixth 
sentences to eliminate requirement that schools use commodities 
that are in abundance in their lunch programs. [Sec. 902]
    7. Revise Sec. 9(f), striking paragraph (1) to eliminate 
provision requiring schools to inform students of nutritional 
content of lunches and their consistency with the Dietary 
Guidelines for Americans. [Sec. 902]
    8. Revise Sec. 9(f)(2)(D) to permit schools to use any 
reasonable approach to meet dietary guidelines. [Sec. 902]
    9. Strike Sec. 9(h) to eliminate language providing the 
States can use NET funds for training to improve nutritional 
quality and acceptance of meals. [Sec. 902]
    10. Revise Sec. 11(b), striking references to ``maximum per 
lunch amounts.'' [Sec. 904]
    11. Strike Sec. 11(d) to eliminate language referring to 
applicability of other provisions in the Act to Sec. 11. [Sec. 
904]
    12. Revise Sec. 11(e)(2) to require that the Secretary make 
a request for monthly reports rather than receive them 
automatically. [Sec. 904]
    13. Revise Sec. 12(a) providing that accounts and records 
shall be available at any reasonable time. [Sec. 905]
    14. Revise 12(c) to strike language that prohibits 
``State'' from imposing requirements on teaching personnel and 
curricula. [Sec. 905]
    15. Revise Sec. 12(d) by changing the definition of 
``State,'' by striking ``the Trust Territory of the Pacific 
Islands'' and inserting ``the Commonwealth of the Northern 
Mariana Islands.'' Makes conforming changes throughout. [Sec. 
905]
    16. Strike Sec. 12(d)(3) to eliminate ``participation need 
rate'' definition. [Sec. 905]
    17. Strike Sec. 12(d)(4) to eliminate assistance need rate 
definition. [Sec. 905]
    18. Strike Sec. 12(k)(1),(2), and (5) to eliminate 
provisions dealing with the establishment of regulations on 
food based menus. [Sec. 905]
    19. Revise Sec. 12(l)(1)(B)(2)(A), striking clauses (v), 
(vi), (vii), and (2)(B). [Sec. 905]
    20. Strike Sec. 12(l)(3(B) to eliminate requirement that 
Sec. respond in writing to written waiver request. [Sec. 905]
    21. Strike Sec. 12(l)(3)(C) to eliminate requirement that 
the result of waiver decisions be disseminated by State. [Sec. 
905]
    22. Strike Sec. 12(l)(3)(D)(i) and (ii) to eliminate the 2 
year limit on waiver period and authority for extension. [Sec. 
905]
    23. Revise Sec. 12(l)(4), striking subparagraphs (B), (D), 
(F), (H), (J), (K), (L), and inserting a general prohibition on 
any waiver that will increase Federal costs. [Sec. 905]
    24. Strike Sec. 12(l)(6)(A) to eliminate requirement that 
eligible service providers receiving waivers report annually to 
the State, therefore eliminating the requirement that States 
annually submit a summary of said reports to the Secretary. 
[Sec. 905]
    25. Strike Sec. 12(m) to eliminate Nutrition Instruction 
Grants. [Sec. 905]
    26. Revise Sec. 13(a)(1) to eliminate reference to 
expansion. [Sec. 906]
    27. Revise Sec. 13(a)(7)(A). Technical and conforming. 
[Sec. 906]
    28. Revise Sec. 13(b)(2) to change ``may serve up to four 
meals'' to ``three meals or two meals and one supplement.'' 
[Sec. 906]
    29. In Sec. 13, references to the National Youth Sports 
Program are amended by (1) striking non summer months payments; 
(2) striking severe needs reimbursements; and (3) requiring 
that participants be eligible based on residence in low income 
areas, or on the basis of income eligibility statements from 
children enrolled in the program. [Sec. 906]
    30. Revise Sec. 13(f) by (1) eliminating requirement that 
the Secretary provide additional technical assistance to 
service providers having difficulty maintaining compliance; and 
(2) providing that contracts between service institutions and 
food service management companies require periodic inspections 
by an independent State agency to determine conformance with 
standards set by local health authorities. [Sec. 906]
    31. Strike Sec. 13(f)(4) to eliminate specific provisions 
governing advance payments. [Sec. 906]
    32. Strike Sec. 13(g)(1)(A). Redundant in relation to 
preceding language. [Sec. 906]
    33. Revise Sec. 13(g)(1)(B) by striking second statement to 
eliminate technical assistance for those with difficulty 
maintaining compliance. [Sec. 906]
    34. Strike Sec. 13(k)(3) to eliminate added Federal funding 
to States for health department inspections. [Sec. 906]
    35. Strike Sec. 13(l)(4) to eliminate provision for small 
business preference). [Sec. 906]
    36. Strike Sec. 13(l)(5) to eliminate provision for 
standard contract forms. [Sec. 906]
    37. Revise Sec. 13(m) to provide that accounts and records 
be available ``at any reasonable time.'' [Sec. 906]
    38. Revise Sec. 13(n)(2) by striking the clause beginning 
``including the State's methods.'' [Sec. 906]
    39. Strike Sec. 13(n)(3) to eliminate provisions dealing 
with States' ``best estimates'' of those served. [Sec. 906]
    40. Strike Sec. 13(n)(4) to eliminate requirement for a 
State ``schedule'' for providing technical assistance. [Sec. 
906]
    41. Strike Sec. 13(p). Obsolete. [Sec. 906]
    42. Strike Sec. 13(q)(2) to eliminate requirements for 
training and technical assistance for private nonprofits. [Sec. 
906]
    43. Strike Sec. 13(q)(4). Technical and conforming. [Sec. 
906]
    44. Strike Sec. 14(b)(1) regarding the inclusion of cereal 
and shortening in commodity donations. [Sec. 907]
    45. Revise Sec. 14(d) by striking the matter requiring an 
impact study of commodity distribution procedures. [Sec. 907]
    46. Strike Sec. 14(e) to eliminate the State Advisory 
Council. [Sec. 907]
    47. Strike Sec. 14(g)(3). Obsolete. [Sec. 907]
    48. Revise Sec. 17 by, in the title of the section, 
striking ``and Adult.'' [Sec. 908]
    49. Revise Sec. 17(a) to eliminate reference to 
authorization to ``expand'' programs. [Sec. 908]
    50. Revise Sec. 17(d)(1) to eliminate provision for 
technical assistance in completing applications. [Sec. 908]
    51. Revise Sec. 17(f)(3)(B) by striking last two sentences. 
Obsolete. [Sec. 908]
    52. Revise Sec. 17(f)(3)(C)(i) by striking all references 
to ``expansion.'' [Sec 908]
    53. Strike Sec. 17(f)(3)(C)(ii) to eliminate provision for 
outreach and recruitment. [Sec. 908]
    54. Strike Sec. 17(f)(4) to eliminate specific provisions 
requiring advance payments. States would be allowed to make 
such payments but would not be required to do so. [Sec. 908]
    55. Strike Sec. 17(g)(1)(A) to eliminate redundant 
provision. [Sec. 908]
    56. Strike Sec. 17(g)(1)(B) to eliminate provision for 
added technical assistance for those with difficulty 
maintaining compliance. [Sec. 908]
    57. Strike Sec. 17(k), replacing with language requiring 
States to provide sufficient training technical assistance and 
to facilitate effective operation of the program. [Sec. 908]
    58. Revise Sec. 17(m) to provide that accounts and records 
be available at any ``reasonable time.'' [Sec. 908]
    59. Strike Sec. 17(o) to modify provision to limit 
eligibility to day care centers providing services to 
chronically impaired disabled persons. [Sec. 908]
    60. Strike Sec. 17(q). Obsolete (provisions for WIC 
information). [Sec. 908]
    61. Strike Sec. 18(a) to eliminate the 3 State evaluation 
of effect of Secretary contracting with vendors to act as 
States in administering programs not administered by States. 
[Sec. 909]
    62. Strike Sec. 18(d)(3)(A),(B),(C) to eliminate the 
universal free pilot. [Sec. 909]
    63. Revise Sec. 18(e) to make the demonstration project for 
outside school hours discretionary. [Sec. 909]
    64. Strike Sec. 18(g) and (h) dealing with additional food 
choices: Fruits, vegetables, cereals, organic foods and low fat 
dairy products. [Sec. 909]
    65. Strike Sec. 18(i) to eliminate Paperwork reduction 
pilot. [Sec. 909]
    66. Repeal Section 19. [Sec. 910]
    67. Repeal Section 23. Obsolete. [Sec. 911]
    68. Repeal Section 24. [Sec. 912]
    69. Repeal Section 26. [Sec. 913]

        12. Authorization for School-Based Nutrition Block Grant

                             A. Entitlement

Present law

    States are entitled to ``performance-based'' funding 
according to the number and type of meals and supplements 
served under school-based programs authorized by the National 
School Lunch and Child Nutrition Acts.

House bill

    ``Entitles'' each State that submits an annual application 
(see item 14) to receive an annual school-based nutrition grant 
for the purpose of achieving the goals of the School-Based 
Nutrition Block Grant Program (see item 12D for the program's 
goals and item 13 for State entitlement allotments).

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

                 B. Requirement To Provide Commodities

Present law

    The Secretary of Agriculture is required to ensure that no 
less than 12% of the total amount of ``entitlement'' commodity 
and cash assistance for the School Lunch program is in the form 
of commodity support (including cash in lieu of commodities in 
the limited instances where available and administrative costs 
for procuring commodities). [Sec. 6(g) of the National School 
Lunch Act]

House bill

    Requires that 9% of the amount of assistance available 
under the school-based block grant be in the form of 
commodities.

Senate amendment

    No directly comparable provision. [Note: See item 26]

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11)

               C. The School-Based nutrition Block grant

Present law

    Federal funds for activities under existing law replaced by 
the House bill's school-based grant are authorized at such sums 
as are necessary and provided based on the number of meals, 
supplements, and half-pints of milk served.
    The Secretary is required to make school lunch and school 
breakfast funding and commodities available to Defense 
Department overseas dependents' schools to the same degree as 
other schools. [Sec. 20 of the National School Lunch Act and 
Sec. 20 of the Child Nutrition Act]

House bill

    Provides that the annual total school-based block grant 
provided States as their ``entitlement'' will be: $6.681 
billion for fiscal year 1996, $6.956 billion (fiscal year 
1997), $7.237 billion (fiscal year 1998), $7.538 billion 
(fiscal year 1999), and $7.849 billion (fiscal year 2000).
    For each fiscal year, requires the Secretary to reserve 
from the total entitlement an amount determined necessary, in 
consultation with the Secretary of Defense, to establish and 
carry out nutritious food service programs at Defense 
Department overseas dependents' schools.
    Permits States to obligate payments under a school-based 
nutrition grant in the succeeding fiscal year.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

                                D. Goals

Present law

    The National School Lunch Act declares it the policy of 
Congress, as a measure of national security, to safeguard the 
health and well-being of the Nation's children and to encourage 
the domestic consumption of agricultural commodities by 
assisting States through grants and other means in providing 
support for the establishment, maintenance, operation, and 
expansion of nonprofit school lunch programs. [Sec. 2 of the 
National School Lunch Act]

House bill

    Establishes the goals of the School-Based Block Grant 
Program:
            (1) to safeguard the health and well-being of 
        children through the provision of nutritious, well-
        balanced meals and food supplements;
            (2) to provide economically disadvantaged children 
        (see item 21B for definition) access to nutritious free 
        or low-cost meals, food supplements, and low-cost milk;
            (3) to ensure that children served under the 
        School-Based Block Grant program are receiving the 
        nutrition they require to take advantage of educational 
        opportunities;
            (4) to emphasize foods that are naturally good 
        sources of vitamins and minerals over enriched foods 
        and those high in fat or sodium content;
            (5) to provide a comprehensive school nutrition 
        program for children; and
            (6) to minimize paperwork burdens and 
        administrative expenses for participating schools.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

                         E. Timing of Payments

Present law

    No provision.

House bill

    Directs that the Secretary of Agriculture make school-based 
nutrition grant payments to the States on a quarterly basis.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

          13. allotment of school-based nutrition block grant

Present law

    Current activities that may be funded under the House 
bill's School-Based Nutrition Block Grant program include those 
now supported by the School Lunch and Breakfast programs, and 
school-sponsored programs under the Child and Adult Care Food 
program, the Summer Food Service program, and the Special Milk 
program.
    In all cases, ``performance funding'' is provided for each 
meal, supplement, or half-pint of milk served by participating 
schools, at legislatively established, inflation indexed rates.

House bill

    As set forth below, provides for the Secretary of 
Agriculture to make State allotments of the School-Based 
Nutrition Block Grant entitlement.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

                     A. First Year State Allotments

Present law

    No provisions.

House bill

    For the first fiscal year in which grants are made, 
provides that the Secretary make allotments to States based on 
the proportion of funds each State received under prior law for 
the preceding fiscal year.
    Base-year State Shares: Each State's allotment would be its 
prior-year share of funds received under the School Lunch and 
Breakfast programs, plus 12.5% of the amounts received under 
the Child and Adult Care Food, Summer Food Service, and Special 
Milk programs.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

                    B. Second Year State Allotments

Present law

    No provision.

House bill

    For the second fiscal year in which grants are made, 
provides that (1) 95% of the total entitlement amount be 
allotted to each State's share of the amount allotted in the 
first year and (2) 5% of the entitlement amount allotted be 
based on each State's share of the number of meals served under 
the grant during the 1-year period ending the preceding June 
30.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

               C. Third and Fourth Year State Allotments

Present law

    No provision.

House bill

    For the third and fourth fiscal years in which grants are 
made, provides that (1) 90% of the total entitlement amount be 
allotted according to each State's share of the amount allotted 
in the preceding year and (2) 10% of the entitlement amount 
allotted be based on each State's share of the number of meals 
served under the grant during the 1-year period ending the 
preceding June 30.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch (see item 11).

                     D. Fifth Year Sale Allotments

Present law

    No provision.

House bill

    For the fifth fiscal year in which grants are made, 
provides that (1) 85% of the total entitlement amount be 
allotted according to each State's share of the amount allotted 
in the fourth year and (2) 15% of the entitlement amount 
allotted be based on each State's share of the number of meals 
served under the grant during the 1-year period ending the 
preceding June 30.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

           14. Application for School-Based Nutrition Grants

Present law

    Nutrition requirements for school-provided meals are 
established by the Secretary of Agriculture on the basis of 
tested nutritional research, are not to be construed to 
prohibit substitution of foods to accommodate medical or other 
special dietary needs, must, at a minimum, be based on the 
weekly average nutrient content of school lunches, and may, 
with certain limits on how schools may be required to implement 
them, be based on the Federal ``Dietary Guidelines for 
Americans.'' [Sec. 9(a) and Sec. 12(k) of the National School 
Lunch Act, and Sec. 4(e) of the Child Nutrition Act]
    The use/disclosure of information obtained from 
applications for free/reduced-price meals is limited to those 
administering and/or enforcing child nutrition programs, 
administrators of other health or education programs (with 
restrictions), and the General Accounting Office and law 
enforcement officials. [Sec. 9(b) of the National School Lunch 
Act]

House bill

    Provides that the Secretary make a school-based nutrition 
grant to a State if it submits an application containing only 
the following:
            (1) an agreement that the State will use the grant 
        in accordance with the School-Based Block Grant program 
        requirements (see item 15);
            (2) an agreement that the State will set minimum 
        nutrition requirements for meals provided under the 
        grant based on the most recent tested nutrition 
        research available (but the requirements could not be 
        construed to prohibit the substitution of foods to 
        accommodate medical or other special dietary needs and 
        would have to be based, at a minimum, on the weekly 
        average nutrient content of school lunches or other 
        standards set by the State);
            (3) an agreement that, with respect to provision of 
        meals to students, the State will implement minimum 
        nutrition requirements based on the most recent tested 
        nutrition research available or the model nutrition 
        standards development by the National Academy of 
        Sciences (see item 20);
            (4) an agreement that the State will take 
        reasonable steps it deems necessary to restrict the use 
        and disclosure of information about those receiving 
        assistance under the grant;
            (5) an agreement that the State will not use more 
        than 2% of its grant for administrative costs incurred 
        to provide assistance; and
            (6) an agreement that the State will submit an 
        annual report to the Secretary (see item 16).

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

  15. use of amounts provided under the school-based nutrition block 
                                 grant

                        A. Activities Supported

Present law

    The School Lunch and Breakfast programs provide Federal 
support to schools for nonprofit meal services to 
schoolchildren. In addition, to a more limited degree, schools 
offer (and receive Federal subsidies for) after-school food 
assistance, milk service, and summer food service programs.

House bill

    Provides that the Secretary of Agriculture make school-
based nutrition grants to States if they agree to use their 
grant to provide assistance to schools for nutritious food 
service programs that provide affordable meals and supplements 
to students, including nonprofit:
            (1) school breakfast programs;
            (2) school lunch programs;
            (3) before and after school supplement programs;
            (4) low-cost milk services; and
            (5) summer meal programs.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

                       B. Additional Requirements

Present law

    Under the School Lunch and Breakfast programs, and after-
school assistance, milk service, and summer food service 
programs, schools are provided with specific Federal 
reimbursements for free and reduced-price meals, supplements, 
and milk for lower-income children (with family income below 
185% of poverty) that are higher than those granted for 
``paid'' meals, supplements, and milk provided those with 
higher income.

House bill

    Requires that each State ensure that not less than 80% of 
its school-based grant is used to provide free or low-cost 
meals to economically disadvantaged children (see item 21 for 
definitions).
    Requires that each State ensure that nutritious food 
service programs are established and carried out in private 
nonprofit and Defense Department domestic dependents' schools 
on an equitable basis with programs in public schools in the 
State--to the extent consistent with the number of children in 
these schools and after consultation with representatives of 
the schools (see item 18).

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

  C. Authority to Use School-Based Nutrition Block Grant Amounts for 
                             Other Purposes

Present law

    No provision.

                         (2) Sufficient funding

    No provision.

                  (3) Amounts used for other purposes

House Bill

    Allows States to use not more than 20% of amounts received 
from a school-based nutrition grant for any fiscal year to 
carry out State programs under other block grants authorized 
by:
    (1) part A of title IV of the Social Security Act (relating 
to welfare for families with children);
    (2) part B of title IV of the Social Security Act (relating 
to provision of child welfare services);
    (3) title XX of the Social Security Act (relating to 
provision of social services);
    (4) the Child Nutrition Act of 1966 (relating to family 
nutrition block grants); and
    (5) the Child Care and Development Block Grant.
    Provides that States may not transfer funds to other block 
grants unless the appropriate State agency makes determination 
that sufficient funds will remain available for the fiscal year 
to carry out activities under the School-Based Block Nutrition 
Block Grant Program.
    Provides that school-based nutrition block grant amounts 
States transfer to other block grants (noted above) will not be 
subject to the requirements of the School-Based Nutrition Block 
Grant program under the revised National School Lunch Act, but 
will be subject to the requirements that apply to Federal funds 
provided directly to the block grant to which they are 
transferred.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

               D. Limitation on Provision of Commodities

Present law

    Certain schools receive cash or commodity letters of credit 
in lieu of entitlement commodities (so-called ``Cash/CLOC'' 
schools). [Sec. 18(b) of the National School Lunch Act]

House Bill

    Provides that States may to require current Cash/CLOC 
schools to accept commodities in lieu of cash or commodity 
letters of credit.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

E. Segregation/Identification of Children Eligible for Free or Low-Cost 
                          Meals or Supplements

Present law

    Schools may not physically segregate, overtly identify, or 
otherwise discriminate against any child eligible for free or 
reduced-price lunches. [Sec. 9(b)(4) of the National School 
Lunch Act]

House Bill

    Requires States to ensure that schools receiving school-
based nutrition grant assistance do not physically segregate, 
overtly identify, or otherwise discriminate against children 
eligible for free or low-cost meals or supplements.

Senate amendment

    No Comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

                              16. reports

Present law

    No comparable provision.

House bill

    Requires that States, as a condition of receiving a school-
based nutrition grant, agree to submit an annual report to the 
Secretary of Agriculture describing:
            (1) the number of individuals receiving assistance 
        under the grant for the reporting (fiscal) year;
            (2) the different types of assistance provided;
            (3) the total number of meals served to students 
        under the grant, including the percentage served to 
        economically disadvantaged students;
            (4) the extent to which the assistance provided was 
        effective in achieving the goals of the School-Based 
        Nutrition Block Grant program (see item 12D);
            (5) the standards and methods the State is using to 
        ensure the nutritional quality of assistance under the 
        grant; and
            (6) any other information that can be reasonably 
        required by the Secretary.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

                             17. penalties

                        A. Penalty for Violators

Present law

    [Note: See item 7.]

House bill

    Requires the Secretary of Agriculture to reduce the school-
based nutrition grant amount otherwise payable to a State by 
any amount paid under the grant that an audit made under the 
``Single Audit Act'' (chapter 75 of title 31 of the United 
States Code) finds has been used in violation of the revised 
National School Lunch Act. However, the Secretary is barred 
from reducing any quarterly payment to the State by more than 
25%.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

           B. Penalty for Failure to Submit a Required Report

Present law

    No specific provision.

House bill

    Requires the Secretary to reduce by 3% the school-based 
nutrition grant amount otherwise payable to a State for any 
fiscal year if the Secretary determines that the State has not 
submitted the required annual report (see item 16) for the 
immediately preceding fiscal year within 6 months after the end 
of that fiscal year.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

 18. Federal Assistance for Children in Private Nonprofit Schools and 
            Defense Department Domestic Dependents' Schools

Present law

    Where States are by law precluded from providing child 
nutrition assistance to certain types of schools (e.g. private 
nonprofit schools), the Secretary is authorized to provide 
assistance directly.

House bill

    If a State is precluded by law from providing assistance 
under the school-based nutrition grant to nonprofit private 
schools or Defense Department domestic dependents' schools, or 
the Secretary has determined that the State has substantially 
failed or is unwilling to provide assistance to the schools, 
requires the Secretary to arrange for provision of school-based 
nutrition assistance to the schools, after consultation with 
appropriate school representatives. In the case that the 
Secretary provides assistance to private nonprofit schools or 
Defense Department domestic dependents' schools, the State's 
school-based nutrition grant would be reduced to reflect the 
assistance provided.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

 19. Food Service Programs for Defense Department Overseas Dependents' 
                                Schools

                             A. Assistance

Present law

    [Note: See item 12C(2)]

House bill

    Requires the Secretary to make available to the Secretary 
of Defense funds and commodities (as determined by the 
Secretary in consultation with the Secretary of Defense, and 
reserved from the total school-based grant) for establishing 
and carrying out nutritious food service programs providing 
affordable meals and supplements to students in Defense 
Department overseas dependents' schools.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

                            B. Requirements

Present law

    Federally subsidized school meal programs in Defense 
Department overseas dependents' schools must meet the same 
requirements as programs in domestic schools.

House bill

    In carrying out food service programs in Defense Department 
overseas dependents' schools, requires the Secretary of Defense 
to (1) ensure that not less than 80% of the assistance is used 
to provide free or low-cost meals and supplements to 
economically disadvantaged children (see item 21B for 
definition) and (2) the schools will implement minimum 
nutrition requirements in the same way domestic schools 
receiving assistance under the school-based nutrition grant are 
required to (including optional use of model nutrition 
standards).

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

            20. Model Nutrition Standards for Student Meals

                             A. Requirement

Present law

    No comparable provisions. [Note: The Secretary establishes 
nutrition standards for school meals.]

House bill

    Not later than April 1, 1996, requires the National Academy 
of Sciences to develop model nutrition standards for meals 
provided to students under the School-Based Block Grant 
Program. The standards are to be developed by the Food and 
Nutrition Board of the Academy's Institute of Medicine, in 
cooperation with nutritionists and directors of school meal 
programs.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

                         B. Report to Congress

Present law

    No provision.

House bill

    Not later than one year after the model nutrition standards 
(noted above) are developed, requires the National Academy of 
Sciences to report to Congress regarding the efforts of States 
to implement them.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item #11).

                            21. definitions

                        A. Schools and Secretary

Present law

    In general, ``schools'' are defined as public or private 
nonprofit elementary, intermediate, or secondary schools. The 
``Secretary'' is defined as the Secretary of Agriculture.

House bill

    ``Schools'' and ``Secretary'' would be defined as having 
the same meaning as in existing law. In addition, parallel 
definitions are added for Defense Department domestic and 
overseas dependents' schools.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item 11).

                     B. Economically Disadvantaged

Present law

    No directly comparable provision. [Note: Subsidies are 
provided for free and reduced-price meals served to children 
with family income under 185% of the Federal poverty 
guidelines. However, Federal school food service subsidies are 
not limited to these lower-income children.]

House bill

    The term ``economically disadvantaged'' is defined to apply 
to individuals or families with annual income below 185% of the 
Federal poverty guidelines. [Note: Assistance under the School-
Based Nutrition grant could be given to children with family 
income above 185% of poverty.]

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item 11).

                                C. State

Present law

    In general, for school food programs, ``State'' is defined 
as the 50 States, the District of Columbia, Puerto Rico, the 
Northern Marianas, American Samoa, and the Virgin Islands.

House bill

    ``State,'' under the School-Based Nutrition grant, would 
have the same meaning as in present law, except that Indian 
tribal organizations (as defined under section 4(l) of the 
Indian Self-Determination and Education Assistance Act) would 
be included as States and could apply for grants.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see Item 11).

                             22. repealers

Present law

    Not applicable.

House bill

    Makes conforming technical amendments repealing the 
Commodity Distribution Reform Act and WIC Amendments of 1987 
and the Child Nutrition and WIC Reauthorization Act of 1989.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

                           23. effective date

Present law

    Not applicable.

House bill

    Makes amendments replacing Child Nutrition and National 
School Lunch Act provisions with Family Nutrition and School-
Based Nutrition Block Grants effective October 1, 1995.

Senate amendment

    No comparable provision.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

              24. application of amendments and repealers

Present law

    Not applicable.

House bill

    Provides that amendments and repealers associated with 
replacing Child Nutrition and National School Lunch Act 
provisions with Family Nutrition and School-Based Nutrition 
Block Grants not apply with respect to (1) financial assistance 
provided under prior law and (2) administrative actions or 
proceedings commenced or authorized to be commenced before the 
effective date.

Senate amendment

    No comparable provisions.

Conference agreement

    Senate recedes with an amendment creating an optional block 
grant demonstration program and making changes to National 
School Lunch Act (see item 11).

25. termination of additional payments for lunches served in high free 
                and reduced price participation schools

Present law

    Lunches served by school food authorities where 60 percent 
or more of the lunches are served free or at a reduced price 
(to children with family income below 185 percent of the 
Federal poverty income guidelines) are reimbursed at a rate 2 
cents a meal higher than regular subsidy rates. [Sec. 4(b) of 
the National School Lunch Act]

House bill

    No comparable provision.

Senate amendment

    Effective July 1, 1996 (the 1996-1997 school year), ends 
the extra 2-cent-a-lunch reimbursement to schools with high 
rates of free and reduced-price participation.

Conference agreement

    Senate recedes.

                      26. Value of Food Assistance

Present law

    Schools and certain other child nutrition sponsors are 
``entitled'' to commodities valued at a legislatively set, 
inflation-indexed amount per meal served. The per-meal 
reimbursement rate is indexed annually to reflect the annual 
percentage change in a 3-month average value of the Price Index 
for Food Used in Schools and Institutions, and rounded to the 
nearest \1/4\ cent. [Sec. 6(e) of the National School Lunch 
Act]

House bill

    No directly comparable provision. [Note: See item 12B.]

Senate amendment

    Freezes (for one year) the guaranteed per-meal 
reimbursement rate for entitlement commodity assistance and 
revises (by changing rounding rules) the method of calculating 
this reimbursement rate.
    On January 1, 1996, the entitlement commodity reimbursement 
rate set under current law for the 1995-1996 school year (as 
rounded to the nearest \1/4\ cent) would be rounded down to the 
nearest lower cent. For the 1996-1997 school year, the rate 
would be frozen at the rate for the 1995-1996 school year (as 
rounded down to the nearest lower cent). For the 1997-1998 
school year, the rate would be the unrounded rate for the 1995-
1996 school year, adjusted for inflation over the most recent 
12-month period and rounded down to the nearest lower cent. For 
following school years, the rate would be the unrounded rate 
for the preceding year, adjusted for inflation over the most 
recent 12-month period and rounded down to the nearest lower 
cent. (p. 348)
    [Note: Current-law rules as to the inflation-adjustment 
factor to be used (i.e., the Price Index for Food Used in 
Schools and Institutions) are not changed.]

Conference agreement

    Senate recedes.

                27. Lunches, Breakfasts, and Supplements

Present law

    ``Paid'' lunches, breakfasts, and supplements are served to 
those with family income above 185 percent of the Federal 
poverty guidelines. Guaranteed Federal reimbursement rates for 
each paid lunch, breakfast, and supplement are indexed annually 
to reflect changes in the food away from home series of the 
Consumer Price Index. When indexed, all reimbursement rates 
(i.e., for paid, free, and reduced-price meals and supplements) 
are rounded to the nearest \1/4\ cent. [Sec. 11(a) of the 
National School Lunch Act]

House bill

    No comparable provisions.

Senate amendment

    Freezes (for two years) reimbursement rates for paid 
lunches, breakfasts, and supplements. Revises (by changing 
rounding rules) the method for calculating reimbursement rate 
for paid, free, and reduced-price lunches, breakfasts, and 
supplements. [Note: Reimbursement rates for meals and 
supplements served in family day care homes and the Summer Food 
Service program are and would be governed by separate 
provisions of law (see below).]
    On January 1, 1996, reimbursement rates for paid, free, and 
reduced-price lunches, breakfasts, and supplements set under 
current law for the 1995-1996 school year (as rounded to the 
nearest \1/4\ cent) would be rounded down to the nearest lower 
cent. For the 1996-1997 and 1997-1998 school years, the 
reimbursement rates for paid lunches, breakfasts, and 
supplements would be frozen at the rates for the 1995-1996 
school year (as rounded down to the nearest lower cent). For 
the 1998-1999 school year, the reimbursement rates for paid 
lunches, breakfasts, and supplements would be the unrounded 
rates for the 1995-1996 school year adjusted for inflation over 
the most recent 12-month period for which data are available, 
and rounded down to the nearest lower cent. For following 
school years, the reimbursement rates for paid lunches, 
breakfasts, and supplements would be the unrounded rates for 
the preceding year adjusted for inflation over the most recent 
12-month period, and rounded down to the nearest lower cent.
    Reimbursement rates for free and reduced-price lunches, 
breakfasts, and supplements would continue to be indexed 
annually for inflation each school year (i.e., no two-year 
freeze), but would be rounded down to the nearest lower cent. 
[Note: Current-law rules as to the inflation-adjustment factor 
to be used (i.e., the food away from home series of the 
Consumer Price Index) are not changed.]

Conference agreement

    Senate recedes.

              28. summer food service program for children

Present law

    Under the Summer Food Service program, all meals and 
supplements served are federally subsidized at legislatively 
set, inflation-indexed rates that, for the 1995 summer (set in 
January 1995), were $2.12 for each lunch/supper, $1.18 for each 
breakfast, and 55.5 cents for each supplement. In addition, 
sponsors receive payments for administrative costs based on the 
number of meals/supplements served. Basic Federal payments for 
lunches, breakfasts, and supplements are indexed for inflation 
annually based on the food away from home series of the 
Consumer Price Index, and rounded to the nearest \1/4\ cent. 
[Sec. 13(b) of the National School Lunch Act]

House bill

    No comparable provisions.

Senate amendment

    Establishes new, lower reimbursement rates for meals and 
supplements served in the Summer Food Service program as 
follows: $2 for lunches/suppers, $120 for breakfasts, and 50 
cents for supplements. The new rates would become effective 
January 1, 1996 (for the 1996 summer program), and be adjusted 
each January thereafter to reflect changes in the food away 
from home series of the Consumer Price Index (as under current 
law). However, while each adjustment would be based on the 
unrounded rates for the prior 12-month period, it would be 
rounded down to the nearest cent. [Note: Additional 
administrative-cost payment rates to sponsors are not 
affected.]

Conference agreement

    House recedes with an amendment establishing new, lower 
rates for meals and supplements served in the Summer Food 
service program as follows: $1.82 for lunches served; $1.13 
each breakfast served and $.46 for each meal supplement served. 
[Sec. 906(b)]

                        29. special milk program

Present law

    Under the Special Milk program, the minimum per-half-pint 
reimbursement rate is indexed annually to reflect changes in 
the Producer Price Index for Fresh Processed Milk, and rounded 
to the nearest \1/4\ cent. [Sec. 3(a) of the Child Nutrition 
Act]

House bill

    No comparable provisions.

Senate amendment

    Freezes (for one year) the minimum per-half-pint 
reimbursement rate and revises (by changing rounding rules) the 
method of calculating the reimbursement rate.
    On Jan. 1, 1996, the minimum reimbursement rate set under 
current law for the 1995-1996 school year (as rounded to the 
nearest \1/4\ cent) would be rounded down to the nearest cent. 
For the 1996-1997 school year, the minimum reimbursement rate 
would be frozen at the rate for the 1995-1996 school year (as 
rounded down to the nearest cent). For the 1997-1998 school 
year, the minimum reimbursement rate would be the unrounded 
rate for the 1995-1996 school year adjusted for inflation over 
the most recent 12-month period for which data are available, 
and rounded down to the nearest lower cent. For following 
school years, the minimum reimbursement rate would be the 
unrounded rate for the preceding year adjusted annually for 
inflation, and rounded down to the nearest lower cent. [Note: 
Current-law rules as to the inflation adjustment factor to be 
used (i.e., the Producer Price Index for Fresh Processed Milk) 
are not changed.]

Conference agreement

    Senate recedes.

                 30. free and reduced price breakfasts

Present law

    Reimbursement rates for free and reduced-price breakfasts 
are indexed annually for inflation and rounded to the nearest 
\1/4\ cent. [Sec. 4(b) of the Child Nutrition Act]

House bill

    No comparable provision.

Senate amendment

    Requires that annual adjustments to reimbursement rates for 
free and reduced-price breakfasts be based on the previous 
year's unrounded rates and, after adjustment for inflation, 
rounded down to the nearest lower cent.

Conference agreement

    Senate recedes.

      31. Conforming Reimbursement for Paid Breakfasts and Lunches

Present law

    The per-meal reimbursement for paid breakfasts (paid meals 
are those served to children with family income above 185 
percent of the Federal poverty income guidelines) is higher 
than the reimbursement rate for paid lunches--by about 2 cents 
a meal for the 1995-1996 school year. [Sec. 4(b) of the Child 
Nutrition Act]
    [Note: The paid breakfast reimbursement rate is roughly the 
same as the current-law paid lunch rate for schools with free 
and reduced-price participation of 60 percent or more. This 
special lunch rate would be eliminated under Sec. 401 of the 
Senate amendment (see item 25).]

House bill

    No comparable provision.

Senate amendment

    Requires that the reimbursement rate for paid breakfasts be 
the same as the rate for paid lunches.

Conference agreement

    Senate recedes.

                  32. School Breakfast Startup Grants

Present law

    The Secretary is required to make competitive grants to 
help defray costs associated with starting or expanding school 
breakfast and summer food service programs. Funding of $5 
million a year is provided through fiscal year 1997; $6 million 
is provided for fiscal year 1998; and $7 million a year is 
provided for fiscal year 1999 and each subsequent year. [Sec. 
4(g) of the Child Nutrition Act]

House bill

    No comparable provision.

Senate amendment

    Repeals the startup/expansion competitive grant program.

Conference agreement

    House recedes. [Sec. 923]

             33. Nutrition Education and Training Programs

Present law

    The Secretary is required to make funding available to 
States for child nutrition program nutrition education and 
training activities. Funding of $10 million a year is provided. 
[See. 19(i) of the Child Nutrition Act]

House bill

    No comparable provision.

Senate amendment

    Reduces the amount that must be provided for nutrition 
education and training to $7 million a year.

Conference agreement

    House recedes with an amendment eliminating mandatory 
status. Authorizes appropriations of $10 million per year. 
[Sec. 931]

                           34. Effective Date

Present law

    Not applicable.

House bill

    No comparable provision.

Senate amendment

    Establishes Oct. 1, 1996 as the effective date for repeal 
of the startup/expansion competitive grant program and 
reduction of funding for nutrition education and training.

Conference agreement

    Makes October 1, 1996 the effective date for reduction in 
funding authority for nutrition education and training. [Sec. 
931(g)]

              35. Free and Reduced Price Policy Statement

Present law

    [Note: See note under Senate amendment.]

House bill

    No comparable provision.

Senate amendment

    Provides that, after initial submission, schools may not be 
required to submit free and reduced-price policy statements for 
the School Lunch and School Breakfast programs to State 
education agencies--unless there is a substantive change in the 
school's policy. Implementation of routine changes (such as the 
annual adjustment in the income eligibility guidelines) would 
not be sufficient cause to require submission of a policy 
statement. [Note: Under current regulations, annual submission 
of policy statements is required.]

Conference agreement

    House recedes. [Sec. 922]

              36. Summer Food Service Program for Children

                    A. Permitting Offer versus Serve

Present law

    No provision. [Note: The ``offer versus serve'' option is 
permitted in school meal programs.]

House bill

    No comparable provision.

Senate amendment

    Allows schools operating summer food service programs to 
permit children attending a site on school premises to refuse 
one item of a meal without affecting the Federal reimbursement 
for the meal.

Conference agreement

    House recedes. [Sec. 906(g)]

              B. Removing Mandatory Notice to Institutions

Present law

    Under the Summer Food Service program, States must submit 
to the Secretary, by February 15 of each year, a plan and 
schedule for informing service institutions of the availability 
of the program. [Sec. 13(n) of the National School Lunch Act]

House bill

    No comparable provision.

Senate amendment

    Prohibits the Secretary from requiring States to submit 
their plans and schedules for informing institutions of the 
availability of the Summer Food Service program.

Conference agreement

    House recedes. [Sec. 906(k)]

                 37. child and adult care food program

                    A. Payments to Sponsor Employees

Present law

    No provision.

House bill

    No comparable provision.

Senate amendment

    Bars Child and Adult Care Food program sponsoring 
organizations with more than one employee from basing payments 
to employees on the number of family/group day care homes 
recruited.

Conference agreement

    House recedes. [Sec. 908(b)]

         b. Improved Targeting of Day Care Home Reimbursements

Present law

    Federal reimbursement rates for meals and supplements 
served in family/group day care homes are standard for all 
homes, established separately from those for day care centers, 
not differentiated by the participating children's family 
income (as is the case for day car centers), and set 
approximately half-way between reimbursements for free and 
reduced-price meals/supplements in day care centers. They are 
indexed for inflation each July 1 (see item 36B(2)), and for 
the period July 1995-June 1996, they are: $1.5375 for all 
lunches/suppers, 84.5 cents for all breakfasts, and 45.75 cents 
for all supplements. Family/group day care home sponsors also 
receive separate administrative cost reimbursements based on 
the number of homes sponsored. [Sec. 17(f) of the National 
School Lunch Act]
    Meal and supplement reimbursements for family/group day 
care homes are indexed annually to reflect changes in the 
Consumer Price Index for food away from home and rounded to the 
nearest \1/4\ cent. [Sec. 17(f) of the National School Lunch 
Act]

House bill

    No comparable provisions.

Senate amendment

    Restructures reimbursements for meals and supplements 
served in family/group day care homes. In general, homes would 
be divided into two ``tiers,'' one of which would receive 
current-law reimbursements (with indexing adjustments, see item 
37B(2) for changes in inflation indexing rules) and the other 
which would receive lower reimbursements as set out under the 
Senate amendment. [Note: Separate payments to sponsors based on 
the number of homes sponsored are not changed, and current 
rules barring certain documents requirements and reimbursements 
for meals/supplements served to providers' children are 
retained.]
    Tier I homes would be paid the meal/supplement 
reimbursements for family/group homes in effect on the date of 
enactment, adjusted on August 1, 1996, and each July 1 
thereafter, to reflect inflation for the most recent 12-month 
period for which data are available.
    Tier I homes would be those (1) located in areas, as 
defined by the Secretary based on Census data, in which at 
least half of the children are members of households with 
income below 185 percent of the Federal poverty income 
guidelines, (2) located in an area served by a school enrolling 
elementary students in which at least 50 percent of those 
enrolled are certified eligible for free or reduced-price 
school meals (i.e., have family income below 185 percent of the 
Federal poverty guidelines), or (3) operated by a provider 
whose family income is verified by its sponsoring organization 
to be below 185 percent of the poverty guidelines.
    In general, tier II homes would be paid reimbursements of 
$1 for each lunch/supper, 30 cents for each breakfast, and 15 
cents for each supplement (all substantially below tier I 
rates), adjusted on July 1, 1997, and each July 1 thereafter, 
to reflect inflation for the most recent 12-month period for 
which data are available.
    Tier II homes would be homes that do not meet the tier I 
low-income area/provider standards.
    Tier II homes could, at their option, claim higher tier I 
reimbursement rates under certain conditions: Tier II homes 
could elect to receive tier I reimbursements for meals/
supplements served to children in households with income below 
185 percent of the poverty guidelines, if the sponsoring 
organization collects the necessary income information and 
makes the appropriate eligibility determinations (in accordance 
with the Secretary's rules). Tier II homes also could receive 
tier I reimbursements for children in or subsidized under (or 
children of parents in or subsidized under) federally or State 
supported child care or other benefit programs with an income 
limit that does not exceed 185 percent of the poverty 
guidelines, and could restrict their claim for tier I 
reimbursements to these children if they opt not to have income 
statements collected from parents/caretakers.
    The Secretary would be required to prescribe ``simplified'' 
meal counting/reporting procedures for use by tier II homes 
(and their sponsors) that elect to claim tier I reimbursements 
for children meeting the income or program participation 
requirements noted above. These procedures could include: (1) 
setting an annual percentage of meals/supplements to be 
reimbursed at tier I rates based on the family income of 
children enrolled during a specific month or other period, (2) 
placing a home in a reimbursement category based on the 
percentage of children with household income below 185 percent 
of poverty, or (3) other procedures determined by the 
Secretary.
    The Secretary also would be permitted to establish minimum 
requirements for verifying income and program participation for 
children in tier II homes opting to claim tier I reimbursement 
rates.
    Requires that reimbursements for family/group day care 
homes be indexed annually to reflect changes in the Consumer 
Price Index for food at home, based on the unrounded rates for 
the preceding 12-month period, and then rounded down to the 
nearest lower cent.
    Requires the Secretary to reserve, from amounts available 
for the Child and Adult Care Food program in fiscal year 1996, 
$5 million--to provide grants for (1) training, materials, 
computer and other assistance to sponsoring organization staff 
and (2) training and other aid to family/group day care homes 
in implementing the new reimbursement-rate structure directed 
by the Senate amendment. The funds would be allocated among the 
States based on their proportion of participating homes, with a 
minimum of $30,000 as a State's base funding share, and State 
would not be allowed to retain more than 30 percent of their 
grant at the State level (passing the remainder to sponsors and 
providers).
    Requires (1) the Secretary to provide State agencies with 
Census data necessary for determining homes' tier I status and 
(2) State agencies to provide the data to day care home 
sponsoring organizations.
    Requires State agencies administering school meal programs 
to provide approved day care home sponsoring organizations a 
list of schools serving elementary school children in which at 
least half those enrolled are certified to receive free or 
reduced-price meals (one test for an area eligible for tier I 
reimbursements). The data for the list must be collected 
annually and provided on a timely basis to any requesting 
approved sponsoring organization.
    Provides that, in determining homes' tier I status, State 
agencies and sponsoring organizations must use the most current 
data available.
    Provides that a determination that a home is located in an 
area that qualifies it as a tier I home be in effect for three 
years, unless the State agency determined the area no longer 
qualifies the home. In the case of a determination made in on 
the basis of Census data, the determination is to be in effect 
until more recent data are available.
    Makes conforming technical amendments recognizing the new 
structure of family/group day care home reimbursement rates.

Conference agreement

    House recedes with an amendment accepting Senate provisions 
and establishing new lower reimbursement rates for tier II 
homes for meals and supplements as follows: $90 for each lunch 
and supper; $.25 for each breakfast; and $.10 for supplements. 
[Sec. 908(e)]

                       C. Disallowing Meal Claims

Present law

    No specific provision.

House bill

    No comparable provision.

Senate amendment

    Makes clear that States and sponsoring organizations may 
recoup reimbursements to day care home providers for improperly 
claimed meals/supplements.

Conference agreement

    Senate recedes with an amendment that deletes advance 
payments to sponsors. [Sec. 908(f)]

         D. Elimination of State Paperwork and Outreach Burden

Present law

    Provisions of the National School Lunch Act require (1) 
States to take affirmative action to expand availability of the 
Child and Adult Care Food program's benefits (including annual 
notification of all nonparticipating family/group day care home 
providers), (2) the Secretary to conduct demonstration projects 
to test approaches to removing or reducing barriers to 
participation by homes that operate in low-income areas or 
primarily serve low-income children, (3) the Secretary and 
States to provide training and technical assistance to 
sponsoring organizations in reaching low-income children, and 
(4) the Secretary to instruct States to provide information/
training about child health and development through sponsoring 
organizations. [Sec 17(k) of the National School Lunch Act]

House bill

    No comparable provision.

Senate amendment

    Repeals existing ``outreach'' requirements noted under 
present law and requires that (1) States provide sufficient 
training, technical assistance, and monitoring to facilitate 
effective operation of the Child and Adult Care Food Program 
and (2) the Secretary assist States in carrying out this 
obligation.

Conference agreement

    House recedes. [Sec. 908(h)]

 E. Study of Impact of Amendments on Program Participation and Family 
                          Day Care Licensing.

Present law

    No provision.

House bill

    No comparable provision.

Senate amendment

    Not later than two years after the date of enactment, 
requires the Secretary of Agriculture, in conjunction with the 
Secretary of Health and Human Services, to study the impact of 
the revisions to the Child and Adult Care Food program under 
the Senate amendment on:
            (1) the number of participating family day care 
        homes, day care home sponsoring organizations, and day 
        care homes that are licensed, certified, registered, or 
        approved by each State;
            (2) the rate of growth in the number of 
        participating homes, sponsors, and licensed, certified, 
        registered, or approved homes;
            (3) the nutritional adequacy/quality of meals 
        served in family day care homes that no longer receive 
        reimbursements or no longer receive ``full'' 
        reimbursements: and
            (4) the proportion of low-income children 
        participating in the program. (p. 377)
    Requires each State agency to submit data on (1) the number 
of participating family day care homes on July 31, 1996, and 
July 31, 1997, (2) the number of licensed, certified, 
registered, or approved family day care homes on July 31, 1996, 
and July 31, 1997, and (3) other matters needed to carry out 
the study as required by the Secretary.

Conference agreement

    House recedes. [Sec. 908(n)]

                   F. Effective Date and Regulations

Present law

    Not applicable.

House bill

    No comparable provisions.

Senate amendment

    Establishes the effective date for changes in the family/
group day care home reimbursement structure--August 1, 1996. 
Other changes affecting the Child and Adult Care Food program 
would be effective on enactment (e.g., grants to assist in 
implementation of the changes, limits on payments to sponsors' 
employees).
    Requires that, by February 1, 1996, the Secretary issue 
interim regulations to implement (1) the changes in the family/
group day care home reimbursement structure and (2) existing 
provisions of law for the use of sponsoring organizations' 
administrative expense payments for startup/expansion and 
outreach and recruitment activities. Final regulations would be 
required by August 1, 1996.

Conference agreement

    House recedes. [Sec. 908(m)]

      38. reducing required reports to state agencies and schools

Present law

    Not applicable.

House bill

    No comparable provisions.

Senate amendment

    Directs the Secretary to review all existing reporting 
requirements placed on local providers (e.g., schools) under 
the National School Lunch and Child Nutrition Acts and notify 
the appropriate committees of Congress of those requirements 
that are mandated by law, with recommendations as to whether 
any should be eliminated because their contribution to program 
effectiveness is not sufficient to warrant the paperwork burden 
imposed. The Secretary also would be required to provide 
justification for those reporting requirements established 
solely by regulation. The review and report would be due no 
later than one year after enactment.

Conference agreement

    House recedes.

                      39. categorical eligibility

Present law

    In general, children are categorically income eligible for 
child nutrition programs, and women, infants, and children for 
the WIC program, if they are recipients of AFDC benefits. [Sec. 
9(b) of the National School Lunch Act and Sec. 17(d) of the 
Child Nutrition Act]

House bill

    No comparable provisions.

Senate amendment

    Amends the National School Lunch and Child Nutrition Acts 
to (1) technically conform citations to the new family 
assistance block grant (rather than the AFDC program) and (2) 
make categorically eligible for child nutrition and WIC 
programs only those recipients in family assistance block grant 
programs that comply with standards established by the 
Secretary of Agriculture to ensure that a State's family 
assistance block grant program standards are comparable to or 
more restrictive than those in effect for the AFDC program on 
June 1, 1995.

Conference agreement

    House recedes. [Sec. 109]

            Title X. Food Stamps and Commodity Distribution

                           Food Stamp Reform

                        1. declaration of policy

Present law

    The Food Stamp Act's declared policy is to safeguard the 
health and well-being of the Nation's population by raising 
levels of nutrition among low-income households. To alleviate 
hunger and malnutrition among low-income households with 
limited food purchasing power, the Act authorizes the food 
stamp program to permit low-income households to obtain a more 
nutritious diet through normal channels of trade by increasing 
the food purchasing power of all eligible households who apply. 
[Sec. 2]

House bill

    No comparable provision.

Senate amendment

    Adds to the existing Food Stamp Act declaration of policy a 
statement that Congress intends that the food stamp program 
support the employment focus and family strengthening mission 
of public welfare and welfare replacement programs by 
facilitating transition to economic self-sufficiency through 
work, promoting employment as the primary means of income 
support and reducing barriers to employment, and maintaining 
and strengthening healthy family functioning and family life.

Conference agreement

    The Conference agreement follows the House bill.

                             2. short title

Present law

    No provision.

House bill

    Cites this subtitle as ``The Food Stamp Simplification and 
Reform Act of 1995.''

Senate amendment

    No comparable provision.

Conference agreement

    The Conference agreement follows the House bill.

           3. establishment of simplified food stamp program

Present law

    The Secretary is directed to establish uniform national 
standards of eligibility for food stamps (with certain 
variations allowed for Alaska, Hawaii, Guam, the Virgin 
Islands, and certain administrative rules.). States may not 
impose any other standards of eligibility as a condition for 
participation in the program. [Sec. 5(b)]

House bill

    Permits States to operate a ``simplified food stamp 
program,'' either statewide or in any political subdivision. 
Under this program, households receiving regular cash benefits 
under the Temporary Assistance for Needy Families (TANF) block 
grant established by title I of the Personal Responsibility Act 
(replacing the current Aid to Families with Dependent Children 
(AFDC) program) could be provided food stamp benefits using the 
rules and procedures established by the State for its TANF 
block grant program, as an alternative to using regular food 
stamp rules.

Senate amendment

    Explicitly permits non-uniform standards of eligibility. 
[Note: Also see item 38]

Conference agreement

    The Conference agreement follows the Senate amendment.

                    4. Simplified Food Stamp Program

                         A. Basic State Option

Present law

    Households composed entirely of AFDC recipients are 
automatically eligible for food stamps, with few exceptions 
(e.g., aliens who do not meet the Food Stamp program's more 
stringent rules barring illegal aliens). [Sec. 5(a)]
    As with other households, food stamp benefits for AFDC 
households are determined under Food Stamp program rules 
governing counting of income, expense deductions, and 
procedural requirements.

House bill

    [Note: Sec. 542(a) of the House bill adds a new section 24 
to the Food Stamp Act containing rules for the Simplified Food 
Stamp Program.]
    If a State elects to exercise its option to use its TANF 
block grant rules and procedures for food stamp benefits, 
requires that (1) households in which all members receive 
regular cash benefits under a TANF block grant program be 
automatically eligible for food stamps and (2) food stamp 
benefits for them be determined under rules and procedures 
established by the State or locality under the State's TANF 
block grant program or the regular food stamp program.

Senate amendment

    [Note: Sec. 342(a) of the Senate amendment adds a new 
section 24 to the Food Stamp Act containing rules for the 
Simplified Food Stamp Program]
    Permits a State to exercise an option to use rules and 
procedures established for its family assistance block grant 
(under title I of the Senate amendment) to determine food stamp 
benefits for households in which all members receive family 
assistance block grant aid: (1) households in which all members 
receive aid under a family assistance block grant program would 
be automatically eligible for food stamps; and (2) their food 
stamp benefits could be determined by using rules and 
procedures established by the State for its family assistance 
block grant program, regular food stamp program rules and 
procedures, or a combination of the two. States also would be 
allowed to apply a single ``shelter standard'' to households 
that receive a housing subsidy and another to households that 
do not.

Conference agreement

    The Conference agreement follows the Senate amendment with 
an amendment deleting the specific reference to use of a single 
shelter standard.

                        B. Federal Cost Control

Present law

    No comparable provisions.

House bill

    Requres that, when approving a State's plan to exercise its 
option for a simplified food stamp program, the Secretary 
certify that the average per-household food stamp benefit 
received by participating TANF households is not expected to 
exceed the average food stamp benefit level for AFDC or TANF 
recipients in the preceding fiscal year--adjusted for any 
changes in the ``Thrifty Food Plan'' (the basis for food stamp 
benefit levels). The Secretary also is required to compute the 
``permissible'' average per-household benefit for each State or 
locality exercising the simplified program option.
    Requires that, if average food stamp benefits under the 
simplified program exceed the permissible level (the Thrifty-
Food-Plan-adjusted prior year amount), the State must pay the 
Federal Government the benefit cost of the excess within 90 
days of notification.

Senate amendment

    Provides that a State may not operate a simplified food 
stamp program unless it has an approved plan and requires the 
Secretary to approve any State plan if the Secretary determines 
it complies with the provisions of law governing the simplified 
food stamp program option and would not increase Federal costs 
under the Food Stamp Act. Federal costs for this purpose are 
defined to exclude research, demonstration, and evaluation 
costs.
    Requires the Secretary to determine whether a State's 
simplified food stamp program is increasing Federal costs under 
the Food Stamp Act. In making the determination, the Secretary 
(1) could not required States to collect or report any 
information on households not included in the simplified food 
stamp program and (2) could approve State requests to use 
alternative accounting periods. If the Secretary determines 
that a simplified food stamp program has increased Federal 
costs, the State must be notified by January 1 of the 
succeeding fiscal year.
    If the Secretary determines that a simplified program has 
increased Federal costs for a two-year period, the State must 
pay the Federal Government the amount of any increased costs 
within 90 days of the determination (or have amounts due it for 
administrative costs reduced).

Conference agreement

    The Conference agreement follows the Senate amendment with 
an amendment. The Secretary must, for each fiscal year, 
determine whether a simplified program is increasing Federal 
costs above those incurred under the food stamp program in the 
fiscal year prior to implementation of the simplified program, 
adjusted for changes in participation, the non-public-
assistance income of participants, and the cost of the Thrifty 
Food Plan. The Secretary must notify the State of a 
determination of increased Federal costs, and the State must 
submit for approval a corrective action plan designed to 
prevent increased Federal costs. If a State fails to submit a 
plan or carry out an approved plan, the Secretary must 
terminate approval of the State's simplified program, and the 
State is ineligible for future participation under simplified 
program rules.

                          C. Disqualification

Present law

    Households penalized for an intentional failure to comply 
with a Federal, State, or local welfare program may not, for 
the duration of the penalty, receive an increased food stamp 
allotment because their welfare income has been reduced. [Sec. 
8(d)]
    [Note: This has been interpreted by regulation to apply 
only to reductions in welfare income due to repayment of 
overpayments resulting from a welfare violation, although a 
revision of the regulation is scheduled.]

House bill

    Provides that (1) households receiving food stamps under 
the simplified program option who are sanctioned (disqualified 
or have their benefits reduced) under a State's TANF program 
may have the same penalty applied for food stamp purposes and 
(2) food stamp benefits to households participating under the 
simplified program option may not be increased as the result of 
a reduction in their TANF benefits caused by a sanction. Any 
household disqualified from food stamps as the result of a TANF 
program sanctions would be eligible to apply for food stamps 
(as a new applicant) after the disqualification period has 
expired.

Senate amendment

    [Note: See items 10 and 43.]

Conference agreement

    The Conference agreement follows the Senate amendment.

               D. Extending Rules to ``Mixed'' Households

Present law

    No comparable provisions.

House bill

    Allows States the further option of applying their TANF 
rules and procedures to food stamp households in which some, 
but not all, members receive TANF benefits. These households 
would not be automatically eligible for food stamps (they would 
have to meet normal food stamp eligibility rules), but their 
benefits could be determined under the State's TANF rules and 
procedures, so long as the Secretary ensures that the State's 
plan provides for an ``equitable'' distribution of benefits 
among all household members.

Senate amendment

    No comparable provisions.

Conference agreement

    The Conference agreement follows the Senate amendment. The 
conferees encourage the Secretary to work with States to test 
methods for applying a single set of rules and procedures to 
households in which some, but not all, members receive cash 
welfare benefits under State rules.

                           E. Cash Assistance

Present law

    No comparable provisions.

House bill

    Allows States exercising the simplified program option to 
pay food stamp benefits in cash to some participating 
households. Cash benefits could be paid to households with 3 or 
more consecutive months' earned income of at least $350 a month 
from a private sector employer.
    Provides that: (1) cash assistance in lieu of food stamps 
be considered the food stamp benefit of the earner's household, 
(2) the value of food stamp benefits provided in cash be 
treated as food stamp coupons for taxation and other purposes 
(i.e., disregarded), and (3) the State opting for cash payments 
increase the payments (at State expense) to offset the effect 
of any food sales taxes, unless the Secretary determines it 
unnecessary because of the limited nature of items taxed (sales 
taxes on food purchases with food stamp benefits are barred by 
existing law).
    Requires States electing the cash benefit option to submit 
a written evaluation the effect of cash assistance after 2 
years' operation.

Senate amendment

    [Note: See item 55.]

Conference agreement

    The Conference agreement follows the Senate amendment.

                      F. Federal Food Stamp Rules

Present law

    The Federal Government shares 50% of any State food stamp 
administrative costs (except that certain States with very low 
rates of erroneous benefit and eligibility determinations can 
receive up to 60%). States also may retain certain proportions 
of any overissued benefits they recoup. Special Federal cost-
sharing rules apply in the case of employment and training 
programs for food stamp recipients. States are subject to a 
quality control system under which the extent of erroneous 
benefit and eligibility decisions is measures. Those with high 
rates of erroneous benefit and eligibility decisions are 
subject to fiscal sanctions. [Sec. 16]

House bill

    Requires States exercising the simplified program option 
to, at a minimum, comply with certain rules mandated under the 
Food Stamp Act:
            (1) requirements governing issuance procedures for 
        food stamp benefits;
            (2) the requirement that benefits be calculated by 
        subtracting 30% of a household's income (as determined 
        by state-established, not Federal, rules under the 
        simplified program option) from the maximum food stamp 
        benefit;
            (3) the bar against counting food stamp benefits as 
        income or resources in other programs;
            (4) the requirements that State agencies assume 
        responsibility for eligibility certification and 
        issuance of benefits and keep records for inspection 
        and audit;
            (5) the bar against discrimination by reason of 
        race, sex, religious creed, national origin, or 
        political beliefs;
            (6) requirements related to submission and approval 
        of plans of operation and administration of the food 
        stamp program on Indian reservations;
            (7) limits on the use and disclosure of information 
        about food stamp households;
            (8) requirements for notice to and fair hearings 
        for aggrieved households (or comparable requirements 
        established by the State under its TANF program;)
            (9) requirements for submission of reports and 
        other information required by the Secretary;
            (10) the requirement to report illegal aliens to 
        the Immigration and Naturalization Service;
            (11) requirements for use of certain Federal and 
        State data sources in verifying recipients' 
        eligibility;
            (12) requirements to take measures to ensure that 
        households are not receiving duplicate benefits; and
            (13) requirements for the provision of social 
        security numbers as a condition of eligibility and for 
        their use by State agencies.
    States electing the simplified program option would be 
subject to normal food stamp program cost-sharing rules.
    States electing the simplified option would be subject to 
the food stamp quality control system (including fiscal 
sanctions).

Senate amendment

    Permits States exercising the option for a simplified food 
stamp program to apply rules and procedures under their family 
assistance block grant, the rules/procedures of the regular 
food stamp program, or the rules/procedures of one program to 
certain matters and those of the other in remaining matters. 
Permits States to standardize food stamp expense 
``deductions,'' but, in doing so, States would be required to 
give consideration to the work expenses, dependent car costs, 
and shelter costs of participating households.
    Otherwise, the Senate amendment is the same as the House 
bill, except that it also would (1) require that States follow 
the revised rule in the Senate amendment (see item 43) as to 
not increasing food stamp benefits when other public assistance 
benefits are decreased (see item 4C in the House bill), (2) 
require that eligible households be certified and receive 
benefits not later than 30 days after application (as now 
required under the regular food stamp program), and (3) require 
that States issue ``expedited'' benefits to very low-income 
households (as required under the regular food stamp program).

Conference agreement

    The Conference agreement follows the House bill with an 
amendment (1) allowing States to standardize deductions and (2) 
requiring States to follow the revised rule in the Senate 
amendment as to not increasing food stamp benefits when other 
public assistance benefits are decreased.

                             G. State Plans

Present law

    No comparable provision.

House bill

    Requires that State plans for those States electing to 
exercise the simplified program option include the rules and 
procedures to be followed in determining benefits under the 
option, whether the program will include households in which 
not all members receive TANF grant benefits, and the method by 
which the State or political subdivision participating in the 
simplified program will carry out its quality control 
obligations.

Senate amendment

    Requires that State plans for those States electing to 
exercise the simplified program option include the rules and 
procedures to be followed in determining benefits under the 
option, how the States will address the needs of households 
with high shelter costs, and a description of the method by 
which the State will carry out its quality control obligations.

Conference agreement

    The Conference agreement follows the Senate amendment.

        5. conforming amendments: simplified food stamp program

Present law

    Allows the Secretary to operate pilot projects similar to 
the simplified food stamp program State option proposed in the 
House bill. [Sec. 8(e) and Sec. 17(i)]

House bill

    Deletes provisions for pilot projects similar to the 
simplified food stamp program State option.

Senate amendment

    Same as the House bill.

Conference agreement

    The Conference agreement follows the House bill with an 
amendment to add necessary conforming amendments.

                          6. thrifty food plan

Present law

    Maximum monthly food stamp benefits are defined as 103% of 
the cost of the Agriculture Department's ``Thrifty Food Plan,'' 
adjusted for food-price inflation each October according to the 
plan's cost in the immediately preceding June and rounded down 
to the nearest dollar by household size. [Sec. 3(o)]

House bill

    Provides that current maximum monthly food stamp benefits 
(103% of the cost of the Thrifty Food Plan in June 1994) be 
increased by 2% a year, beginning with the October 1995 
adjustment, and rounded down to the nearest dollar by household 
size.

Senate amendment

    Sets maximum monthly food stamp benefits at 100% of the 
cost of the Thrifty Food Plan, effective October 1, 1995, 
adjusted annually, as under existing law and rounded down to 
the nearest dollar by household size. Requires that the October 
1, 1995, adjustment not reduce maximum benefit levels.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment making it effective October 1, 1996.

               7. income deductions and energy assistance

                          A. Energy Assistance

Present law

    Payments or allowances for energy assistance provided by 
State or local law are, under rules set by the Secretary, 
disregarded (``excluded'') as income. [Sec. 5(d)(11) and 5(k)]
    Payments or allowances for weatherization assistance are 
disregarded as energy assistance. [Sec. 5(d)(11) and 5(k)] 
[Note: Weatherization payments could otherwise be disregarded 
as lump-sum payments, vendor payments, or reimbursements.]
    Federal Low-Income House Energy Assistance Program (LIHEAP) 
benefits are disregarded as income. [Sec. 5(d)(11) and 5(k) of 
the Food Stamp Act and sec. 2605(f) of the Low-Income Home 
Energy Assistance Act]
    Certain utility allowances under Department of Housing and 
Urban Development (HUD) programs are disregarded. [Sec. 
5(d)(11) and 5(k)]
    Shelter expense deductions may be claimed for utility costs 
covered by LIHEAP benefits, but not in the case of other 
disregarded energy assistance unless the household has 
additional out-of-pocket expenses. [Sec. 5(e) of the Food Stamp 
Act and Sec. 2605(f) of the Low-Income Home Energy Assistance 
Act]

House bill

    Requires that State/local energy assistance be counted as 
income.
    Continues to disregard as income payments or allowances for 
weatherization assistance under a Federal energy assistance 
program. Other weatherization assistance could be disregarded 
as lump-sum payments, vendor payments, or reimbursements.
    Bars claiming shelter expense deductions for utility costs 
covered either directly or indirectly by the LIHEAP and other 
disregarded energy assistance.

Senate amendment

    Requires that State/local energy assistance be counted as 
income.
    Requires an income disregard for one-time payments/
allowances under a Federal or State law for the costs of 
weatherization or emergency repair/replacement of unsafe/
inoperative furnaces or other heating/cooling devices.
    Counts Federal LIHEAP benefits as income.
    Counts HUD utility allowances as income.
    Allows claiming shelter expense deductions for utility 
costs covered directly or indirectly by the LIHEAP and other 
counted energy assistance.

Conference agreement

    The Conference agreement follows the Senate amendment.

                         B. Standard Deductions

Present law

    For purposes of determining food stamp benefits and 
eligibility, applicant/recipient households may claim standard 
deductions from their otherwise countable income. Standard 
deductions are indexed annually (each October 1) for inflation 
based on the Consumer Price Index for items other than food and 
rounded down to the nearest dollar. For FY1995, standard 
deductions are set at: $134 a month for the 48 States and the 
District of Columbia, $229 for Alaska, $189 for Hawaii, $269 
for Guam, and $118 for the Virgin Islands. For FY1996, they 
were ``scheduled'' to rise to: $138, $236, $195, $277, and 
$122, respectively, but this was barred by the FY1996 
agriculture appropriations act. (Sec. 5(e)]

House bill

    Sets standard deductions at their FY1995 levels, effective 
October 1, 1995

Senate amendment

    Reduces standard deductions:
    (1) for FY1996, they would be $132, $225, $186, $265, and 
$116; and
    (2) for FY1997-2002, they would be $124, $211, $174, $248, 
and $109.
    Inflation indexing of standard deductions would resume 
October 1, 2002 (using existing indexing rules).

Conference agreement

    The Conference agreement follows the House bill and 
continues to set standard deductions at their FY1995 levels.

                       C. Earned Income Deduction

Present law

    Households may claim a deduction for 20% of any earned 
income. This deduction is not allowed with respect to any 
income that a household willfully or fraudulently fails to 
report in a timely manner (as proven in a fraud hearing 
proceeding)--i.e., it is not allowed when determining the 
amount of a benefit overissuance. [Sec. 5(e)]

House bill

    Denies an earned income deduction for the food stamp 
benefit portion of income earned under a work supplementation/
support program. [Note: See item 15.]

Senate amendment

    Disallows an earned income deduction for any income not 
reported in a timely manner--i.e., the deduction would not be 
allowed in determining the amount of any overissued benefits.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment denying an earned income deduction for the public 
assistance portion of income earned under a work 
supplementation/support program.

                  D. Excess Shelter Expense Deduction

Present law

    For purposes of determining food stamp benefits and 
eligibility, applicant/recipient households may claim excess 
shelter expense deductions from their otherwise countable 
income--in the amount of any shelter expenses (including 
utility costs) above 50% of their countable income after all 
other deductions have been applied. For households with elderly 
or disabled members, these deductions are unlimited. For other 
households, they are limited by law through December 1996; 
limits are lifted as of January 1, 1997. For FY1995, excess 
shelter expense deductions were capped at: $231 a month for the 
48 States and the District of Columbia, $402 for Alaska, $330 
for Hawaii, $280 for Guam, and $171 for the Virgin Islands. For 
October 1995 through December 1996, the caps rose to $247, 
$248, $353, $300, and $182, respectively. [Sec. 5(e)]
    States may use ``standard utility allowances'' (as approved 
by the Secretary) in calculating households' shelter expenses. 
However, households may claim actual expenses instead of the 
allowance and may switch between an actual expense claim and 
the standard allowance at the end of any certification period 
and one additional time during any 12-month period. [Sec. 5(e)]

House bill

    Sets the limits on excess shelter expense deductions at 
FY1995 levels.

Senate amendment

    Permits States to make the use of standard utility 
allowances mandatory for all households if (1) the State has 
developed separate standards that include the cost of heating 
and cooling and do not include these costs and (2) the 
Secretary finds that the standards will not result in increased 
Federal costs.
    Removes the option for households to switch between a 
standard utility allowance and actual costs once during every 
12-month period.

Conference agreement

    The Conference agreement follows the Senate amendment with 
an amendment that establishes excess shelter expense deduction 
limits at the October 1995/December 1996 levels.

                     E. Homeless Shelter Deduction

Present law

    For homeless households not receiving free shelter 
throughout the month, States may develop a homeless shelter 
expenses estimate (a standard amount) to be used in calculating 
an excess shelter expense deduction. States must use this 
amount unless the household verifies higher expenses. The 
Secretary may prohibit the use of the deduction for households 
with extremely low shelter costs. The amounts is inflation 
indexed, and, for FY 1995, it is limited to $139 a month; 
effective October 1, 1995, it is scheduled to rise to $143. 
[Sec. 11(e)(3)]

House bill

    Sets the homeless shelter deduction at the FY 1995 $139 a 
month amount and requires that it be used in establishig 
homeless households' excess shelter expense deductions when 
they do not receive free shelter throughout the month.

Senate amendment

    Same as the House bill, except that States may prohibit the 
use of the deduction for households with extremely low shelter 
costs.

Conference agreement

    The Conference agreement follows the Senate amendment.

                          8. Vehicle Allowance

              A. Threshold for Counting a Vehicle's Value

Present law

    In determining a household's liquid assets for food stamp 
eligibility purposes, a vehicle's fair market value in excess 
of $4,550 is counted. This threshold rose to $4,600 in October 
1995 and is scheduled to be annually indexed for inflation 
beginning in fiscal year 1997. [Sec. 5(g)(2)] [Note: Eligible 
households may have liquid assets of no more than $2,000 
($3,000 for households with elderly members).]

House bill

    Sets the threshold above which the fair marekt value of a 
vehicle is counted as an assets at $4,550.

Senate amendment

    Eliminates the October 1, 1995, increase in the increase in 
the threshold to $4,600 and reqires that the $4,550 threshold 
begin to be inflation adjusted on October 1, 1996.

Conference agreement

    The Conference agreement follows the House bill, with an 
amendment setting the threshold at $4,600.

                   B. Vehicles Carrying Fuel or Water

Present law

    In determining a household's liquid assets for food stamp 
eligibility purposes, the value of a vehicle that the household 
depends on to carry fuel for heating or water for home use is 
excluded. [Sec. 5(g)(2)

House bill

    Deletes the asset exclusion for vehicles used to carry fuel 
or water.

Senate amendment

    No provision.

Conference agreement

    The conference agreement follows the Senate amendment.

                          9. work requirements

    Non-exempt recipients between 16 and 60 are ineligible for 
food stamps if they refuse to register for employment, refuse 
to participate in an employment/training program when required 
to do so by the State, or refuse a job offer meeting minimum 
standards. [Sec. 6(d)]
    Exempt individuals are: (1) those who are not physically or 
mentally fit, (2) those subject to and complying with a work/
training requirement under the AFDC program or the unemployment 
compensation system (although failure to comply with an AFDC/
unemployment system requirement is treated as a failure to 
comply with food stamp rules, if the requirement is 
``comparable''), (3) parents and other household members with 
the responsibility for care of a dependent child under age 6 or 
an incapacitated person, (4) postsecondary students enrolled at 
least half-time (separate rules bar eligibility for most 
postsecondary students who are not working or do not have 
dependents), (5) regular participants in drug addiction or 
alcoholic treatment programs, (6) persons employed at least 30 
hours a week or receiving the minimum wage equivalent, and (7) 
persons between 16 and 18 who are not head of household and are 
in school at least half time. [Sec. 6(d) (1) and (2)]
    In addition, if a non-exempt head of household fails to 
comply with one of the above-noted requirements or voluntarily 
quits a job without good cause, or if any non-exempt household 
member is on strike, the entire household is ineligible for 
food stamps. [Sec. 6(d) (1) & (3)]

                             A. Job Search

Present law

    As noted above, non-exempt individuals refusing to 
participate in an employment/training program when required to 
do so by the State are ineligible for food stamps (if they are 
head of household, the entire household is ineligible). State-
designed employment and training programs may include a 
requirement to perform job search activities. [Sec. 6(d) (1) & 
(2)]

House bill

    Makes ineligible non-exempt individuals (and their 
households if they are head of household) who refuse to 
participate in a State-established job search program. [Note: 
Able-bodied non-elderly adults without dependents would be 
subject to new work requirements, see below.]

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                    B. Comparable Work Requirements

Present law

    As noted above, individuals are exempt from food stamp 
employment/training requirements if they are subject to and 
complying with an AFDC or unemployment compensation work/
training requirement, and failure to comply with such an AFDC 
or unemployment compensation requirement is treated as failure 
to comply with food stamp employment/training requirements, if 
the requirement is ``comparable.'' [Sec. 6(d)(2)]

House bill

    Requires that failure to comply with an TANF or 
unemployment compensation system work/training requirement be 
treated as failure to comply with a food stamp employment/
training requirement, whether or not the requirement is 
``comparable.''

Senate amendment

    Same as the House bill.

Conference agreement

    The Conference agreement follows the House bill.

                        C. New Work Requirement

Present law

    As noted above, non-exempt individuals are ineligible for 
food stamps if they refuse to participate in an employment/
training program when required to do so by the State. [Sec. 
6(d)(1)]

House bill

    Deletes provisions of law barring eligibility to those 
refusing to participate in State-established employment/
training programs.
    In their place, adds a new work requirement: non-exempt 
recipients (see below) would be disqualified if they are not 
employed a minimum of 20 hours a week or are not participating 
in the work program newly established under the House bill (see 
below) within 90 days of certification of eligibility.
    Allows individuals who have been disqualified under the new 
work requirement to re-establish food stamp eligibility if they 
become exempt (under the rules noted immediately below), become 
employed at least 20 hours a week during any consecutive 30-day 
period, or participate in a work program (see below).
    Exempt from the new requirement would be: (1) those under 
18 or over 50, (2) those medically certified as physically or 
mentally unfit for employment, (3) parents or other household 
members responsible for the care of a dependent child, and (4) 
those who are otherwise exempt from work registration and job 
search rules (see present law description above).
    Upon a State's request, allows the Secretary to waive 
application of the new work requirement for some or all 
individuals in all or part of a State if the Secretary 
determines that the area (1) has an unemployment rate over 10% 
or (2) does not have sufficient jobs to provide employment for 
those subject to the new requirement. The Secretary would be 
required to report to the Agriculture Committees the basis for 
any waiver based on lack of sufficient jobs.

Senate amendment

    Adds a new work requirement: non-exempt persons (see below) 
would be ineligible if, during the preceding 12-month period, 
they received food stamps for 6 months or more while not 
working 20 hours or more a week (averaged monthly) or 
participating in and complying with a work/training program 
(see note regarding exemptions below) for at least 20 hours a 
week.
    Exempt from the new requirement would be: (1) those under 
18 or over 50, (2) those certified by a physician as physically 
or mentally unfit for employment, (3) parents or other 
household members responsible for the care of a dependent, (4) 
those participating a minimum of 20 hours a week in (and 
complying with the requirements of) a Job Training partnership 
Act (JTPA) program, a Trade Adjustment Assistance Act training 
program, or a State or local government employment or training 
program meeting Governor-approved standards, and (5) those 
otherwise exempt from work registration and job search rules 
(see present law description above.) [Note: The new work 
requirement could be met by those participating in and 
complying with (for 20 hours a week or more) a JTPA program, a 
Trade Adjustment Assistance training program, or a State/local 
employment or training program meeting Governor-approved 
standards (including a food stamp program employment/training 
activity other than job search or job search training).]
    As in the House bill, waivers are allowed, except that the 
unemployment rate threshold is 8% and the Secretary must report 
the basis for any waiver.
    Provides for a transition to the new work requirement. 
Prior to October 1, 1996, administrators would not ``look 
back'' a full 12 months in determining whether a recipient had 
been receiving food stamps and not meeting the new requirement; 
they would look back only to October 1, 1995.

Conference agreement

    The Conference agreement follows the House bill, with an 
amendment. Non-exempt persons (see below) are ineligible if, 
during the preceding 12-month period, they received food stamps 
for 4 months or more while not working 20 hours or more a week 
(averaged monthly), participating in and complying with a work 
program (see below) for at least 20 hours a week, or 
participating in a workfare program.
    Exempt from the new requirement are: (1) those under 18 or 
over 50, (2) those medically certified as physically or 
mentally unfit for employment, (3) parents or other household 
members responsible for the care of a dependent child, (4) 
those otherwise exempt from work registration or job search 
rules (e.g., those caring for incapacitated persons), and (5) 
pregnant women.
    Work programs allowing an exemption are programs under the 
JTPA or the Trade Adjustment Assistance Act, or employment/
training programs operated or supervised by a State or locality 
meeting standards approved by the Governor (including a food 
stamp employment/training program)--except for job search or 
job search training programs.
    Waiver reports are required for any waiver based on 
unemployment rates (over 10%) or lack of sufficient jobs.
    The disqualification imposed by the new work requirement 
ceases to apply if, during a 30-day period, an individual works 
80 hours or more, participates in and complies with a work 
program for at least 80 hours, or participates in a workfare 
program. In the subsequent 12-month period, an individual is 
eligible for food stamps for up to 4 months while not working 
for at least 20 hours a week, participating in a work program 
for at least 20 hours a week, or participating in a workfare 
program.
    As in the Senate amendment, a transition to the new work 
requirement is provided.

                          D. Disqualification

Present law

    [Note: See present law description above. In addition, 
disqualification periods for failure to fulfill work 
requirements are (1) 2 months or until compliance (whichever is 
first) for most failures and (2) 90 days in case of a voluntary 
quit.]

House bill

    No comparable provisions. [Note: The House bill creates new 
disqualification penalties for those covered by its new work 
requirement.]

Senate amendment

    Rewrites and adds to rules governing disqualification for 
violation of work and employment/training requirements (other 
than those for the new work requirement noted above).
    In addition to existing provisions for disqualification 
(e.g., job refusal, failure to participate in an employment/
training program), makes ineligible (1) individuals who refuse 
without good cause to provide sufficient information to allow a 
determination of their employment status or job availability, 
(2) all individuals (in addition to heads of household) who 
voluntarily and without good cause quit a job, and (3) 
individuals who voluntarily and without good cause reduce their 
work effort (and, after the reduction, are working less than 30 
hours a week).
    Establishes a new household ineligibility rule: if any 
individual who is head of household is disqualified under a 
work rule, the entire household would, at State option, be 
ineligible for the lesser of the duration of the individual's 
ineligibility or 180 days--as determined by the State.
    Establishes new mandatory minimum work-rule 
disqualification periods for individuals. For the first 
violation, individuals would be ineligible until the later of 
the date they fulfill work rules, for 1 month, or a period 
(determined by the State) not to exceed 3 months. For the 
second violation, individuals would be ineligible until the 
later of the date they fulfill work rules, for 3 months, or a 
period (determined by the State) not to exceed 6 months. For a 
third or subsequent violation, individuals would be ineligible 
until the later of the date they fulfill work rules, 6 months, 
a date determined by the State, or (at State option) 
permanently. These disqualification period also would apply to 
those failing to meet workfare requirements
    In establishing good cause, voluntary quits, and reduction 
of work effort, the Secretary would determine the meaning of 
the terms. States would determine the meaning of other terms 
and the procedures for making compliance decisions, but could 
not make a determination that would be less restrictive than a 
comparable one under the State's family assistance block grant 
program.
    States would be required to include the standards and 
procedures they use in making work-rule disqualification/
compliance decisions in their State plan.

Conference agreement

    The Conference agreement follows the Senate amendment

                         E. Caretaker Exemption

Present law

    Parents or other household members with responsibility for 
the care of a dependent child under age 6 or of an 
incapacitated person are exempt from food stamp work rules 
[Sec. 6(d)(2)]

House bill

    No provision.

Senate amendment

    Permits States to lower the age at which a child 
``exempts'' a parent/caretaker from 6 to not under the age of 
1.

Conference agreement

    The Conference agreement follows the Senate amendment.

                F. Work and Employment/Training Programs

Present law

    States must operate employment and training programs for 
non-exempt food stamp recipients and place at least 15% of 
those covered in a program component. Exempt are those listed 
above and those States opt to exempt under Federal rules. 
Program components can range from job search or education 
activities to work experience/training and ``workfare'' 
assignments. [Sec. 6(d)(4)]
    Work experience/training program components must limit 
assignments to projects serving a useful public purpose, use 
the prior training/experience of assignees, not provide work 
that has the effect of replacing others, and provide the same 
benefits and working conditions provided to other comparable 
employees. [Sec. 6(d)(4)(B)]
    States and political subdivisions also may operate workfare 
programs under which non-exempt recipients may be required to 
perform work in return for the minimum wage equivalent of their 
household's monthly food stamp allotment. In general, those 
exempt are those listed above (p. 16). [Sec. 20]
    Workfare assignments may not have the effect of replacing 
or preventing the employment of others and must provide the 
same benefits and working conditions provided to other 
comparable employees. [Sec. 20(d)]
    The total hours of work required of a household under an 
employment/training program (including workfare) cannot in any 
month exceed the minimum wage equivalent of the household's 
monthly food stamp benefit. The total hours of participation in 
an employment and training program required of any household 
member cannot in any month exceed 120 hours (when added to 
other work). And, workfare hours (when added to other work) 
cannot exceed 30 hours a week for a household member. [Sec. 
6(d)(4)(F) and Sec. 20(c)]
    Under employment and training programs for food stamp 
recipients, States must provide or pay for transportation and 
other costs directly related to participation (up to $25 a 
month for each participant) and necessary dependent care 
expenses (in general, up to $175 or $200 a month for each 
dependent, depending on the dependent's age). Under workfare 
programs, States must reimburse participants for transportation 
and other costs directly related to participation (up to $25 a 
month for each participant). [Sec. 6(d)(4)(I) and Sec. 20 
(d)(3)]

House bill

    Deletes the requirement for States to operate employment 
and training programs and current provisions for work 
experience/training and workfare programs.
    Instead, requires the Secretary to permit any State that 
applies and submits a plan in compliance with the Secretary's 
guidelines to operate a work program for food stamp recipients 
subject to the new work requirement (see above) in the State or 
any political subdivision. A State's work program would require 
those accepting an offer of a work position in order to 
maintain food stamp eligibility to perform work on the State or 
local jurisdiction's behalf, or on behalf of a private 
nonprofit entity. The Secretary's guidelines would be required 
to allow States and localities to operate a work program that 
is consistent and compatible with similar programs they might 
operate.
    Requires that, in order to be approved, a State's work 
program provide that participants work no more than the minimum 
wage equivalent of their household's monthly food stamp benefit 
(i.e., the number of hours equivalent to their household's 
monthly benefit divided by the minimum wage).
    Limits the degree to which a State or locality can assign 
participants to replace other workers. No State/locality could 
replace an employed worker with a work program participant, but 
participants could be placed in (1) new positions, (2) 
positions that became available during the normal course of 
business, (3) positions that involve performing work that would 
otherwise be performed on an overtime basis, or (4) positions 
that became available by shifting current employees to an 
alternate position. [Note: States would receive Federal 
costsharing for work program participant expenses (see below).]

Senate amendment

    Revises the existing requirements for State-operated 
employment/training programs for food stamp recipients:
            (1) makes clear the work experience is a purpose of 
        employment/training programs;
            (2) requires that each component of an employment/
        training program be delivered through a ``statewide 
        workforce development system,'' unless the component is 
        not available locally;
            (3) expands the existing State option to apply work 
        rules to applicants at application to all work 
        requirements, not only job search;
            (4) removes specific rules governing job search 
        components (i.e., tied to those for the AFDC program);
            (5) removes provisions for employment/training 
        components related to work experience requiring that 
        they be in public service work and use (to the extent 
        possible) recipients' prior training and experience;
            (6) removes specific Federal rules as to States' 
        authority to exempt categories and individuals from 
        employment/training requirements;
            (7) removes the requirement to serve volunteers in 
        employment/training programs;
            (8) removes the requirement for ``conciliation 
        procedures'' for resolution of disputes involving 
        participation in an employment or training program;
            (9) limits employment/training funding provided by 
        the food stamp program for services to AFDC or family 
        assistance block grant funding recipients to the amount 
        used by the State for AFDC recipients in FY1995; and
            (10) removes Federal performance standards on 
        States for employment/training programs for food stamp 
        recipients.

Conference agreement

    The Conference agreement follows the Senate amendment.

            G. Funding Work and Employment/Training Programs

Present law

    To support employment and training programs for food stamp 
recipients, States receive a formula share of $75 million a 
year (based partially on their share of food stamp recipients 
not exempt from work registration and employment/training 
requirements and partially on their share of those placed in 
employment/training program components). Minimum State annual 
allocations are $50,000.
    In addition to its portion of the $75 million annual grant, 
each State is entitled to (1) 50% of any additional costs 
incurred, (2) 50% of any transportation or other participant 
costs paid or incurred up to half of $25 a month for each 
participant, and (3) 50% of any dependent care costs paid or 
incurred up to half of certain limits (generally, $175/$200 a 
month for each dependent, depending on the dependent's age). 
[Sec. 16(h)]

House bill

    To support work programs for food stamp recipients, 
requires the Secretary to allocate among States and localities 
operating them $75 million a year, based on their share of 
recipients subject to the new work requirement (see above). 
Minimum State allocations would be $50,000.
    Requires States to notify the Secretary as to their 
intention to operate a work program, and requires the Secretary 
to reallocate unclaimed portions of the $75 million annual 
grant to other States, as the Secretary deems appropriate and 
equitable.
    Requires that, in addition to its portion of the $75 
million annual grant, the Secretary pay each State (1) 50% of 
any additional costs incurred and (2) 50% of any transportation 
or other participant costs paid or incurred up to half of $25 a 
month for each participant.
    Allows the Secretary to suspend or cancel some or all 
payments made to States for the work program, or withdraw 
approval, on a finding of noncompliance.

Senate amendment

    To support employment/training programs for food stamp 
recipients, requires the Secretary to ``reserve for 
allocation'' to States: $77 million for FY1996, $80 million for 
FY1997, $83 million for FY1998, $86 million for FY1999, $89 
million for FY2000, $92 million for FY2001, and $95 million for 
FY2002. Allocations would be based on a ``reasonable formula'' 
(determined by the Secretary) that gives consideration to 
States' shares of the population affected by the new work 
requirement (see above). Minimum State allocations would be 
$50,000.
    Requires reallocations as in the House bill.
    Continues existing provisions for payments for additional 
costs, but adds explicit permission for a 50% Federal share of 
State case management costs.

Conference agreement

    The Conference agreement follows the Senate amendment with 
an amendment. The amounts ``reserved for allocation'' to states 
are: $77 million for FY 1996; $79 million for FY 1997; $81 
million for FY 1998; $84 million for FY 1999; $86 million for 
FY 2000; $88 million for FY 2001; and $90 million for FY 2002.

                        H. Conforming Amendment

Present law

    There is authorized a demonstration project similar to the 
new work requirement in the House bill; it has not been 
implemented. [Sec. 17(d)]

House bill

    Deletes authorization for a demonstration project similar 
to the new work requirement in the House bill.

Senate amendment

    Makes several technical and conforming amendments to 
employment and training provisions.

Conference agreement

    The Conference agreement follows the House bill and makes 
technical and conforming amendments.

          10. Comparable Treatment of Disqualified Individuals

Present law

    [Note: See item 4C.]

House bill

    Requires that individuals who have been disqualified for 
noncompliance with requirements under a TANF program not be 
eligible to participate for food stamps during the 
disqualification period.

Senate amendment

    If an individual is disqualified for failure to perform an 
action required under a Federal, State, or local welfare/public 
assistance program, permits States to impose the same 
disqualification for food stamps.
    If a disqualification is imposed under the family 
assistance block grant, permits States to use the family 
assistance block grant's rules and procedures to impose the 
same disqualification for food stamps.
    Permits individuals disqualified from food stamps because 
of failure to perform a required action under another welfare/
public assistance program to apply for food stamps as new 
applicants after the disqualification period has expired--
except that a prior disqualification under food stamp work 
requirements must be considered in determining eligibility.
    Requires States to include the guidelines they use in 
carrying out food stamp disqualification for failure to perform 
a required action in another welfare/public assistance program 
in their State plans.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment changing references to welfare or public 
assistance programs to references to needs-tested public 
assistance programs.

           11. Encourage Electronic Benefit Transfer Systems

                            A. Regulation E

Present law

    The Federal Reserve Board has ruled that, as of March 1997 
and with some minor modifications, its ``Regulation E'' will 
apply to electronic benefit transfer systems. Regulation E 
provides certain protections for consumers using cards to 
access their accounts. It limits the liability of cardholders 
for unauthorized withdrawals (to $50, if notification is made) 
and requires periodic account statements and certain error 
resolution procedures. [Federal Register of Mar. 7, 1994]

House bill

    [Note: See item 56 for optional block grants for States 
fully implementing electronic benefit transfer systems.]
    Provides that Regulation E not apply to any electronic 
benefit transfer program (distributing needs-tested benefits) 
established or administered by States or localities.

Senate amendment

    Provides that Regulation E not apply to food stamp benefits 
delivered through any electronic benefit transfer system.

Conference agreement

    The Conference agreement follows the House bill.

      B. Charging for Electronic Benefit Transfer Card Replacement

Present law

    No specific provision.

House bill

    No provision.

Senate amendment

    Provides that States may charge recipients for the cost of 
replacing a lost or stolen electronic benefit transfer card and 
may collect the charge by reducing the recipient's food stamp 
benefit.

Confernce agreement

    The Conference agreement follows Senate amendment.

                     C. Photographic Identification

Present law

    No provision.

House bill

    Requires that each electronic benefit transfer card bear a 
photograph of the members of the household to which the card is 
issued.

Senate amendment

    Permits States to require that electronic benefit transfer 
cards contain a photograph of 1 or more household members and 
requires that, if a State requires a photograph, it shall 
establish procedures to ensure that other appropriate members 
of the household and authorized representatives may use the 
card.

Conference agreement

    The Conference agreement follows the Senate amendment.

            D. Rules for Electronic Benefit Transfer Systems

Present law

    State agencies, with the Secretary's approval, may 
implement on-line electronic benefit transfer systems for 
delivering food stamp benefits, in lieu of coupons. No State 
may implement or expand an electronic benefit transfer system 
without prior approval from the Secretary. States are 
responsible for 50% of any electronic benefit transfer system 
costs (as with any benefit issuance system), including 
equipment and electronic benefit transfer cards. [Sec. 7(i)]
    The Secretary's regulations for approval must (1) include 
standards that require that, in any one year, the operational 
cost of an electronic benefit transfer system does not exceed 
costs of prior issuance systems and (2) include system security 
standards. [Sec. 7(i)]

House bill

    Deletes requirements for the Secretary's prior approval, 
``encourages'' State agencies to implement on-line electronic 
benefit transfer systems for delivering food stamp benefits, 
and authorizes States to procure and implement these systems 
(under terms, conditions and designs that the State deems 
appropriate).
    Allows the Secretary to waive, on a State's request, any 
provision of the Food Stamp Act that prohibits effective 
implementation of an electronic benefit transfer system for 
food stamp benefits.
    Requires re-issuance and revision of regulations governing 
food stamp electronic benefit transfer systems (current 
regulations for approval of these systems were issued in April 
1992).
    Deletes the requirement that the Secretary's regulations 
for electronic benefit transfer systems require that costs of 
the electronic benefit transfer system in any one year not 
exceed costs of prior issuance systems.
    Adds requirements that the Secretary's standards for 
electronic benefit transfer systems include (1) measures to 
maximize system security using the most recent technology the 
State considers appropriate (including personal identification 
numbers, photographic identification on electronic benefit 
transfer cards, and other measures to protect against fraud and 
abuse) and (2) effective not later than 2 years after 
enactment, measures that permit electronic benefit transfer 
systems to differentiate food items that may be acquired with 
food stamp benefits from those that may not.

Senate amendment

    Permits States to implement EBT systems under rules 
separate from those in existing law as amended, if a State 
notifies the Secretary of its intent to convert to a statewide 
system within 3 years of enactment. The Secretary may not 
provide coupons to a State beginning 3 years after the chief 
executive gives notification of intent to convert under the EBT 
option--but the State may extend this deadline by 2 years and 
the Secretary may grant a waiver of up to 6 months for good 
cause. [Note: The Secretary is authorized to provide coupons 
for disaster relief.]
    Places requirements on the Secretary under the EBT option. 
The Secretary must:
            (1) assist States in converting to an EBT system 
        and (in consultation with the Inspector General and the 
        Secret Service) inform States about proper security 
        features, management techniques, and counterfeit 
        deterrence;
            (2) reimburse States for purchasing and issuing EBT 
        cards [Note: The Secretary may charge recipients 
        (through allotment reduction or otherwise) for the cost 
        of replacing lost or stolen cards, unless stolen by 
        force or threat of force];
            (3) assign additional employees to investigate and 
        monitor compliance with EBT and retailer participation 
        rules;
            (4) establish a Transition Conversion Account (TCA) 
        to be funded with transaction fees of no more than 2 
        cents a transaction (maximum of 16 cents a month) taken 
        from each EBT household's benefits [Note: Fees would be 
        imposed during the 10-year period beginning with the 
        first full fiscal year after enactment. They would be 
        imposed to the extent necessary to not increase the 
        Secretary's costs under the EBT option and could not be 
        greater not be greater than needed for the purposes of 
        the TCA (see below). Fees could be reduced for 
        households receiving maximum benefits.]
            (5) from the TCA and, to the extent necessary, from 
        food stamp appropriations, provide funds to States 
        choosing the EBT option for (1) reasonable purchase and 
        installation costs (including reimbursements to 
        retailers) of single-function point-of-sale equipment 
        to be used only for Federal/State assistance programs, 
        (2) reasonable start-up purchase and installation costs 
        for telephone equipment and connections to the point-
        of-sale equipment, and (3) modification of existing EBT 
        systems to the extent necessary to operate Statewide or 
        interstate;
            (6) from the TCA, provide funds to implement the 
        EBT option and for (1) start-up training, (2) 
        reasonable one-time costs of converting to a system 
        capable of interstate and law enforcement functions, 
        (3) liabilities assumed by the Secretary under the EBT 
        option (e.g., for replaced replaced benefits), and (4) 
        implementing and expanding a nationwide program for 
        compliance with EBT and retailer rules; and
            (7) consult with government, food industry, 
        financial services, and food advocacy representatives 
        in the conversion to EBT as to (1) integrating EBT 
        systems into commercial networks, (2) EBT system 
        security, (3) use of laser scanner technology to ensure 
        that only eligible items are purchased, (4) use of EBT 
        system data to identify fraud (5) means of ensuring 
        confidentiality, (6) using existing terminals and 
        systems top reduce costs (7) using EBT systems for 
        multiple benefits.
    Places requirements and conditions on States under the EBT 
option. States:
            (1) must take into account generally accepted 
        operating rules based on commercial technology and the 
        need to permit interstate operations and law 
        enforcement monitoring and investigations;
            (2) may use paper-based and other benefit transfer 
        approaches for special-need retailers (located in very 
        rural areas, without access to dependable electricity 
        or regular telephone service, farmers' markets, and 
        house-to-house trade routes);
            (3) must purchase and install (or reimburse for) 
        single-function point-of-sale (and related telephone) 
        equipment, usuable only for Federal/State assistance, 
        for retailers that do not have point-of-sale EBT 
        equipment and do not intend to obtain it in the near 
        future [Note: Equipment must be capable of interstate 
        operations (based on commericial operating principles) 
        that permit law enforcement monitoring and be capable 
        of giving recipients access to multiple benefits.];
            (4) must purchase (or reimburse for) point-of-sale 
        paper-based or alternative benefit transfer equipment 
        for special-need retailers without this equipment who 
        do not intend to obtain it in the near future 
        (equipment would be usuable only for Federal/State 
        assistance);
            (5) must be competitive bidding systems in 
        purchasing EBT equipment and cards [Note: States may 
        not have purchase agreements conditioned on buying 
        additional services or equipment, the Secretary must 
        monitor prices paid, and the Inspector General must 
        investigate possible wrongdoing,];
            (6) must advise recipients how to promptly report 
        lost, stolen, damaged, improperly manufactured, 
        dysfunctional, or destroyed EBT cards;
            (7) must not (following the Secretary's 
        regulations) replace benefits lost due to unauthorized 
        use an EBT card, but recipients would receive 
        replacement benefits for losses caused by (1) force or 
        threat of force, (2) unauthorized use after the State 
        gets notice by (1) force or threat of force, (2) 
        unauthorized use of the State and gets notice a card 
        was lost/stolen, or (3) problems with the EBT system 
        [Note: Except for losses caused by force or threat of 
        force, States must reimburse the Secretary for benefit 
        replacements, and States may obtain reimbursement from 
        service providers for losses caused by system 
        problems.];
            (8) may require an explanation from recipients on 
        occasions where they report lost or stolen cards or 
        cards are used for an unauthorized transaction;
            (9) must, in appropriate circumstances, investigate 
        and act on (through administrative disqualification or 
        court referral) cases of lost or stolen cards or 
        unauthorized use;
            (10) must (1) take into account the needs of law 
        enforcement personnel and the need to permit and 
        encourage technological/scientific advances, (2) ensure 
        security is protected, (3) provide for recipient 
        privacy, ease of EBT card use, and access to and 
        service by retailers, (4) provide for financial 
        accountability and system capability for interstate 
        operations and law enforcement monitoring, (5) prohibit 
        retailer participation unless appropriate equipment is 
        operational and reasonably available to recipients, and 
        (6) provide for monitoring and investigation by law 
        enforcement agencies;
            (11) must, on a recipient's request, provide, once 
        a month, a statement of benefit transfers and balances 
        for the preceding month; and
            (12) must design systems to timely resolve disputes 
        over errors. [Note: Recipients able to obtain error 
        corrections under the system would not be entitled to a 
        fair hearing.]
    Provides that retailers may return equipment provided by 
the State and obtain equipment with their own funds and that 
the cost of documents or systems under the EBT option may not 
be imposed on retailers.
    Provides that EBT retailer fraud and related activities be 
governed by the Food Stamp Act and 18 U.S.C. 1029.
    Makes technical and conforming amendments and defines 
electronic benefit transfer system, retail food store, special-
need retail food store, and electronic benefit transfer card

Conference agreement

    The Conference agreement follows the House bill, with an 
amendment. States are required to implement an electronic 
benefit transfer system (``on-line'' or ``off-line'') before 
October 1, 2002, unless the Secretary waives the requirement 
because a State agency faces unusual barriers to 
implementation, and State are encouraged to implement an 
electronic benefit transfer system as soon as practicable. 
Subject to Federal standards, states are allowed to procure and 
implement an electronic benefit transfer system under terms, 
conditions, and design that they consider appropriate, and a 
new requirement for Federal procurement standards is added. A 
requirement is added for electronic benefit transfer standards 
following generally accepted standard operating rules based on 
commercial technology, the need to permit interstate operation 
and law enforcement, and the need to permit monitoring and 
investigations by authorized law enforcement officials. A 
requirement that regulations regarding replacement of benefits 
under an electronic benefit transfer system be similar to those 
in effect for a paper food stamp issuance system is added. The 
Conferees intend that regulations issued by the Secretary 
regarding the replacement of benefits and liability for 
replacement of benefits under an EBT system will not require 
greater replacement of benefits or impose greater liability 
than those regulations in effect for a paper-based food stamp 
issuance system. Provisions in the House bill that are retained 
are: a provision deleting the requirement that electronic 
benefit transfer systems be cost-neutral in any one year, 
requirements as to measures to maximize security, and a 
provision requiring measures to permit electronic benefit 
systems to differentiate among food items (to the extent 
practicable). The House bill provision allowing the Secretary 
to waive Food Stamp Act provisions that prohibit effective 
implementation of electronic benefit transfer systems is 
deleted.

                     12. Value of Minimum Allotment

Present law

    The minimum monthly allotment for 1- and 2-person 
households is set at $10. It is scheduled to rise to $15 in FY 
1997 or 1998 (depending on food-price inflation). [Sec. 9(a)]

House bill

    Sets the minimum monthly allotment for 1- and 2-person 
households at $10.

Senate amendment

    Same as the House bill.

Conference agreement

    The Conference agreement follows the House bill.

                13. Initial Month Benefit Determination

Present law

    Recipient households not fulfilling eligibility 
recertification requirements in the last month of their 
certification period are allowed a 1-month ``grace period'' in 
which to fulfill the requirements before their benefits are 
pro-rated (reduced) to reflect the delay in meeting 
recertification requirements. [Sec. 8(c)(2)(B)]

House bill

    For those who do not complete all eligibility 
recertification requirements in the last month of their 
certification period, but are then determined eligible after 
their certification period has expired, requires that they 
receive reduced benefits in the first month of their new 
certification period (i.e., their benefits would be pro-rated 
to the date they met the requirements and were judged 
eligible).

Senate amendment

    Same as the House bill.

Conference agreement

    The Conference agreement follows the Senate amendment.

                  14. Improving Food Stamp Management

                  A. Quality Control Fiscal Sanctions

Present law

    States are assessed fiscal sanctions if their ``quality 
control'' combined (overpayment and underpayment) error rate 
for a given fiscal year is higher than the national average for 
that year. The amount of each State's sanction is determined by 
using a ``sliding scale'' so that its penalty assessment 
reflects the degree to which its combined error rate exceeds 
the national average tolerance level. In effect, the current 
system requires that States be sanctioned for a portion of 
every benefit dollar that exceeds the tolerance level. For 
example, if the tolerance level were 10% and the State's 
combined error rate were 12%, or 2 percentage points (20%) 
above the tolerance level, the State would be assessed a 
penalty of .2% of benefits issued in the State that year (i.e., 
20% of the excess above the threshold). [Sec. 16(c)]

House bill

    Requires the assessment of fiscal sanctions if a State's 
combined error rate is above a tolerance level set at the 
lowest national average combined error rate ever achieved, plus 
1 percentage point. States would be assessed a dollar penalty 
for each dollar in error above the tolerance level. For 
example, if a State's combined error rate were 2 percentage 
points above the lowest ever national average tolerance level, 
plus 1 percentage point, it would be assessed a penalty of 2% 
of benefits issued in the State that year.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                B. Quality Control Administrative Rules

Present law

    Errors resulting from the application of new regulations 
are not included in a State's error rate for assessing 
sanctions during the first 120 days from required 
implementation of the regulations. [Sec. 16(c)(3)(A)]
    Specific time frames are set out for completion of quality 
control reviews, determining final error rates, and various 
steps of the appeals process. Administrative law judges are 
required to consider all grounds for denying a sanction claim 
against a State, including contentions that a claim should be 
waived for good cause. [Sec. 16(c)(8)]
    For judging to what degree a State should be sanctioned, 
``good cause'' is defined as including: (1) a natural disaster 
or civil disorder that adversely affects food stamp operations, 
(2) a strike by State employees who are necessary for food 
stamp operations, (3) a significant growth in food stamp 
caseload, (4) a change in the Food Stamp program (or other 
Federal or State program) that has a substantial adverse impact 
on the management of the Food Stamp program, and (5) a 
significant circumstance beyond the control of a State agency. 
[Sec. 16(c)(9)]
    If a State appeals a quality control sanction claim, 
interest on any unpaid portion of the claim accrues from the 
date of the decision on the administrative appeal or from a 
date that is 1 year after the date a bill for the sanction is 
received, whichever is earlier. [Sec. 13(a)(1)]

House bill

    Bars inclusion of errors resulting from the application of 
new regulations for 60 days (or 90 days at the Secretary's 
discretion).
    Deletes specific time frames for reviews, error rates, and 
the appeals process. Deletes the directive that administrative 
law judges consider all grounds for denying a sanction claim 
against a State.
    Deletes the Act's definition of good cause for the quality 
control system.
    Requires that interest on sanction claims begin to accrue 
from the date of the administrative appeal decision or 2 years 
after the sanction bill is received, whichever is earlier.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

              15. work supplementation or support program

Present law

    No provision.
    Permits States having a work supplementation or support 
program (under which public assistance benefits are provided to 
employers who hire public assistance recipients and then used 
to pay part of their wages) to include the cash value of a 
recipient's household food stamp benefits in the amount paid 
the employer to subsidize wages paid. Work supplementation/
support programs would be required to meet standards set by the 
Secretary in order to avail themselves of the option to include 
food stamp benefits. The food stamp benefit value of the 
supplement could not be considered income for other purposes, 
and the household of the participating member would not receive 
regular food stamp allotments while the member was in a work 
supplementation/support program. States would be required to 
include any plans for including food stamp recipients in work 
supplementation or support programs in their State plans.

Senate amendment

    Same as the House bill, except (1) a qualified work 
supplementation/support program may not allow participation of 
any individual for longer than one year (unless the Secretary 
approves a longer period), and (2) a qualified work 
supplementation/support program must be used for hiring and 
employing new employees.

Conference agreement

    The Conference agreement follows the House bill, with an 
amendment to provide that (1) States must provide a description 
of how recipients in the program will, within a specific period 
of time, be moved to employment that is not supplemented or 
supported and (2) programs not displace employment of those who 
are not supplemented or supported.

                     16. Obligations and Allotments

Present law

    The Food Stamp Act authorizes to be appropriated such sums 
as are necessary for each FY1991-1995. [Sec. 18(a)]

House bill

    Provides that the amount obligated under the Act will not 
be in excess of the cost estimate of the Congressional Budget 
Office for fiscal year 1996, with adjustments for additional 
fiscal year--in both cases reflecting amendments made by the 
Personal Responsibility Act.
    Requires the Secretary to file reports (each February, 
April, and July) stating whether there is a need for additional 
obligational authority and authorizes the Secretary to provide 
recommendations as to how to equitably achieve spending 
reductions if allotments must be limited in any fiscal year.

Senate amendment

    Authorizes such sums as are necessary through FY2002.

Conference agreement

    The Conference agreement follows the House bill with the 
following amendments. Appropriations (such sums as are 
necessary) are authorized through FY2002. Annual obligations 
are limited to $25,443,000,000 in FY 1996; $24,636,000,000 in 
FY 1997; $25,319,000,000 in FY 1998; $26,307,000,000 in FY 
1999; $27,568,000,000 in FY 2000; $28,602,000,000 in FY 2001; 
and $29,804,000,000 in FY 2002. On May 15 of each year, the 
Secretary must adjust that year's obligation limit based on the 
increase or decrease in participation during the first 6 months 
of the year. On October 1 each year (the beginning of the 
fiscal year), the Secretary also must adjust the upcoming 
year's obligation limit based on the degree to which the cost 
of the Thrifty Food Plan in the immediately preceding June (the 
basis for each October's food stamp benefit adjustment) is 
higher or lower than projected by the Congressional Budget 
Office in its estimates made prior to enactment. If the 
Secretary finds that program funding requirements for a year 
will exceed allowed obligations, the Secretary must direct 
States to reduce allotments to the extent necessary to stay 
within the obligation limits for the year. The Secretary is 
required to report to the House and Senate Agriculture 
Committees.

    17. reauthorization of puerto rico nutrition assistance program

Present law

    The Food Stamp Act requires the Secretary to pay specific 
sums for Puerto Rico's nutrition assistance block grant for 
FY1991-1995. The FY1995 amount is $1.143 billion. [Sec. 19(a)]

House bill

    No provision.

Senate amendment

    Requires the following payments for Puerto Rico's nutrition 
assistance block grant: $1.143 billion for each of FY1995 and 
FY1996, $1.182 billion for FY1997, $1.223 billion for FY1998, 
$1.266 billion for FY1999, $1.310 billion for FY2000, $1.343 
billion for FY2001, and $1.376 billion for FY2002.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment to require the following payments for Puerto 
Rico's block grant: $1.143 billion for FY1996, $1.174 billion 
for FY1997, $1.204 billion for FY1998, $1.236 billion for 
FY1999, $1.268 billion for FY2000, $1.301 billion for FY2001, 
and $.1335 billion for FY2002.

            18. authority to establish authorization periods

Present law

    No provision.

House bill

    Requires the Secretary to establish specific time periods 
during which retail food stores' and wholesale food concerns' 
authorization to accept and redeem food stamps coupons (or 
redeem food stamp benefits through an electronic benefit 
transfer system) will be valid.

Senate amendment

    Permits the Secretary to issue regulations establishing 
specific time periods during which authorization to accept and 
redeem food stamp coupons will be valid.

Conference agreement

    The Conference agreement follows the House bill.

    19. condition precedent for approval of retail food stores and 
                        wholesale food concerns

Present law

    No provision.

House bill

    Provides that no retail food stores or wholesale food 
concerns be approved for participation in the Food Stamp 
program unless an Agriculture Department employee (or, whenever 
possible, a State or local government official designated by 
the Department) has visited it.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the House bill, with an 
amendment limiting stores and food concerns that must be 
visited to those of a type, determined by the Secretary, based 
on factors that include size, location, and type of items sold.

 20. waiting period for retail food stores and wholesale food concerns 
               that are denied approval to accept coupons

Present law

    No provision.

House bill

    Provides that retail food stores and wholesale food 
concerns that have failed to be approved for participation in 
the Food Stamp program may not submit a new application for 
approval for 6 months from the date they receive a notice of 
denial. Current law provisions granting denied retailers and 
wholesalers a hearing on a refusal are retained.

Senate amendment

    Same as the House bill, except that stores and concerns may 
not submit a new application for 6 months from the date of the 
denial.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment providing that stores and concerns denied approval 
because they do not meet the Secretary's approval criteria may 
not, for at least 6 months, submit a new application. The 
Secretary is allowed to establish longer waiting periods, 
including permanent disqualification, that reflect the severity 
of the basis for denial.

 21. Disqualification of Retail Food Stores and Wholesale Food Concerns

Present law

    No provision.

House bill

    Requires that a retail food store or wholesale food concern 
that is disqualified from participation in the Special 
Supplemental Nutrition Program for Women, Infants, and Children 
(WIC) also be disqualified from participating in the Food Stamp 
program for the period of time it is disqualified from the WIC 
program.

Senate amendment

    Requires the Secretary to issue regulations providing 
criteria for disqualifying from food stamps retail food stores 
and wholesale food concerns disqualified from the WIC program. 
Disqualification must be for the same period as under the WIC 
program, may begin at a later date, and would not be subject to 
food stamp administrative/judicial review procedures.

Conference agreement

    The Conference agreement follows the Senate amendment with 
a technical amendment.

22. Authority to Suspend Stores Violating Program Requirements Pending 
                   Administrative and Judicial Review

Present law

    No provision.

House bill

    Requires that, where a retail food store or wholesale food 
concern has been permanently disqualified (for its third 
offense or for certain instances of trafficking), the 
disqualification period will be effective from the date it 
receives notice of disqualification, pending administrative and 
judicial review.

Senate amendment

    Permits regulations establishing criteria under which 
authorization of a retail food store or wholesale food concern 
may be suspended at the time the store/concern is initially 
found to have committed a violation that would result in 
permanent disqualification; the suspension may coincide with 
the period of administrative/judicial review. The Secretary 
would not be liable for the value of any lost sales during any 
suspension/disqualification period.
    Requires notice in suspension cases. Stipulates that a 
suspension period remains in effect pending administrative/
judicial review and that the suspension period be part of any 
disqualification imposed.
    Removes provisions for courts temporarily staying 
administrative actions against stores, concerns, and States 
pending judicial appeal.

Conference agreement

    The Conference agreement follows the Senate amendment with 
an amendment providing that any permanent disqualification of a 
store or concern be effective from the date the notice of 
disqualification is received. If the disqualification is 
reverse through administrative or judicial review, the 
Secretary is not liable for the value of lost sales during the 
disqualification period.

                        23. criminal forfeiture

Present law

    ``Administrative forfeiture'' rules allow the Secretary to 
subject property involved in a program violation to forfeiture 
to the United States. [Sec. 15(g)]

House bill

    Establishes ``criminal forfeiture'' rules. Requires courts, 
in imposing sentence on those convicted of trafficking in food 
stamp benefits, to order that the person forfeit property to 
the United States (in addition to any other sentence imposed). 
Property subject to forfeiture would include all property (real 
and personal) used in a transaction (or attempted transaction) 
to commit (or facilitate the commission of) a trafficking 
violation (other than a misdemeanor); proceeds traceable to the 
violation also would be subject to forfeiture. An owner's 
property interest would not be subject to forfeiture if the 
owner establishes that the violation was committed without the 
owner's knowledge or consent. (p. 246).
    Requires that the proceeds from any sale of forfeited 
properties, and any money forfeited, be used (1) to reimburse 
the Justice Department for costs incurred in initiating and 
completing forfeiture proceedings, (2) to reimburse the 
Agriculture Department's Office of Inspector General for costs 
incurred in the law enforcement effort that led to the 
forfeiture, (3) to reimburse Federal or State law enforcement 
agencies for costs incurred in the law enforcement effort that 
led to the forfeiture, and (4) by the Secretary to carry out 
store approval, reauthorization, and compliance activities.

Senate amendment

    Removes provisions for administrative forfeiture for 
property ``intended to be furnished'' in trafficking cases.
    Establishes ``criminal forfeiture'' rules similar to those 
in the House bill, but applied only in trafficking cases 
involving benefits of $5,000 or more. Property subject to 
forfeiture would include: (1) food stamp benefits, and any 
property constituting, derived from, or traceable to any 
proceeds obtained directly or indirectly as the result of the 
violation and (2) food stamp benefits, and any property used or 
intended to be used to commit or facilitate the violation.
    Food stamp benefits and property subject to criminal 
forfeiture, any seizure or disposition of the benefits/
property, and any administrative/judicial proceeding relating 
to the benefits/property would be subject to forfeiture 
provisions of the Drug Abuse Prevention and Control Act of 1970 
(where consistent with Food Stamp Act provisions). [Note: No 
specific Food Stamp Act provisions for use of the proceeds from 
forfeited property are included]

Conference agreement

    The Conference agreement follows the House bill.

                 24. expanded definition of ``coupon''

Present law

    The Act defines ``coupon'' to mean any coupon, stamp, or 
type of certificate issued under the provisions of the Food 
Stamp Act. [Sec. 3(d)]

House bill

    In order to expand the types of items to which trafficking 
penalties apply, revises the current definition of ``coupon'' 
to include authorization cards, cash or checks issued in lieu 
of coupons, and ``access devices'' for electronic benefit 
transfer systems (including electronic benefit transfer cards 
and personal identification numbers).

Senate amendment

    Same as the House bill.

Conference agreement

    The Conference agreement follows the Senate amendment.

      25. Doubled Penalties for Violating Food Stamp Requirements

Present law

    The disqualification penalty for the first intentional 
violation of program requirements is 6 months. The penalty for 
a second intentional violation (and the first violation 
involving trading of a controlled substance) is 1 year. [Sec. 
6(b)(1)]

House bill

    Inreases the disqualification penalty for a first 
intentional violation to 1 year. Increases the disqualification 
penalty for a second intentional violation (and the first 
violation involving a controlled substance) to 2 years.

Senate amendment

    Same as the House bill.

Conference agreement

    The Conference agreement follows the Senate amendment.

             26. Disqualification of Convicted Individuals

Present law

    Permanent disqualification is required for the third 
intentional violation of program requirements, the second 
violation involving trading of a controlled substance, and the 
first violation involving trading of firearms, ammunition, or 
explosives. [Sec. 6(b)(1)]

House bill

    Adds a requirement for permanent disqualification of 
persons convicted of trafficking in food stamp benefits where 
the benefits trafficked have a value of $500 or more.

Senate amendment

    No comparable provision.

Conference agreement

    The Conference agreement follows the House bill, with a 
technical amendment.

                         27. claims collection

                     A. Federal Income Tax Refunds

Present law

    Otherwise uncollected overissued benefits may, except for 
claims arising out of State agency error, may be recovered from 
Federal pay or pensions. [See 13(d) and Sec. 11(e)(8)]

House bill

    Requires collection of otherwise uncollected overissued 
benefits, other than those arising out of State agency error, 
from Federal pay or pensions and from Federal income tax 
refunds.

Senate amendment

    Permits collection of all otherwise uncollected overissued 
benefits from Federal pay or pensions and from Federal income 
tax refunds.

Conference agreement

    The Conference agreement follows the Senate amendment.

                 B. Authority to Collect Overissuances

Present law

    State collection of overissued benefits is limited in 
certain circumstances. In the case of overissuances due to an 
intentional program violation, households must agree to 
repayment by either a reduction in future benefits or cash 
repayment; States also are required to collect overissuances to 
these households through other means, such as tax refund or 
unemployment compensation collections (if a cash repayment or 
reduction is not forthcoming), unless they demonstrate that the 
other means are not cost effective. In cases of overissuance 
because of inadvertent household ``error,'' States must collect 
the overissuance through a reduction in future benefits--except 
that households must be given 10 days' notice to elect another 
means, and collections are limited to 10% of the monthly 
allotment or $10 a month (whichever would result in faster 
collection)--and may use other means of collection. In cases of 
overissuances because of State agency error, States may request 
repayment or use other means of collection (not including 
reduction in future benefits). [Sec. 13(b)] States may retain 
25% of ``non-fraud'' collections not caused by State error and 
50% of ``fraud'' collections (increased from 10% and 25% on 
October 1, 1995). [Sec. 16(a)]

House bill

    No provisions

Senate amendment

    Replaces existing overissuance collection rules with 
provisions requiring States to collect any overissuance of 
benefits by reducing future benefits, withholding unemployment 
compensation, recovering from Federal pay or income tax 
refunds, or any other means--unless the State demonstrates that 
all of the means are not cost effective. Bars the use of future 
benefit reductions as a claims collection mechanism if it would 
cause a hardship on the household (as determined by the State) 
and limits benefit reductions (absent intentional program 
violations) to the greater of 10% of the monthly benefit or $10 
a month. Provides that States must collect overissued benefits 
in accordance with State-established requirements for notice, 
electing a means of payment, and setting a schedule for 
payment.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment (1) deleting the specific bar against collections 
in hardship cases and (2) setting the percentage of collections 
(other than in cases of State agency error) that a State may 
retain at a uniform 25%.

28. Denial of Food Stamp Benefits For 10 Years to Individuals Found to 
Have Fraudulently Misrepresented Residence In Order To Obtain Benefits 
                   Simultaneously in 2 or More States

Present law

    Disqualification periods ranging from 6 months to permanent 
disqualification are prescribed for intentional violations of 
Food Stamp program requirements. [Sec. 6(b)]

House bill

    Disqualifies from food stamps for 10 years an individual 
found to have fraudulently misrepresented the individual's 
place of residence in order to receive food stamp, Medicaid, 
TANF, or Supplemental Security Income (SSI) benefits in two or 
more States.

Senate amendment

    Disqualifies from food stamps permanently an individual 
found to have fraudulently misrepresented the individual's 
place of residence in order to receive food stamps in two or 
more States.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment disqualifying from food stamps for 10 years an 
individual found by a State agency or court to have made a 
fraudulent misrepresentation of identity or residence in order 
to receive multiple benefits. The conferees note that State 
agency hearing processes have sufficient recipient protections 
to warrant a decision to impose a 10-year disqualification in 
these cases.

         29. disqualification relating to child support arrears

Present law

    No provision.

House bill

    Disqualifies individuals during any period the individual 
has an unpaid liability that is under a court child support 
order, unless the court is allowing delayed payments.

Senate amendment

    Same as the House bill, except that States are permitted to 
apply a child support arrears disqualification and compliance 
with a child support agency payment plan also exempts 
individuals from disqualification.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment that requires disqualification.

30. Elimination of Food Stamp Benefits with Respect to Fugitive Felons 
                   and Probation and Parole Violators

                 A. Disqualification of Fleeing Felons

Present law

    No provision.

House bill

    Disqualifies individuals while they are (1) fleeing to 
avoid prosecution or custody after conviction for a crime (or 
crime attempt) which is a felony or (2) violating a condition 
of parole under Federal or State law.

Senate amendment

    Same as the House bill.

Conference agreement

    The Conference agreement follows the Senate amendment with 
a technical amendment.

                       B. Exchange of Information

Present law

    Requires State agencies to immediately report to the 
Immigration and Naturalization Service a determination that a 
food stamp household member is ineligible for food stamps 
because the individual is present in the United States in 
violation of the Immigration and Nationality Act. [Sec. 
11(e)(17)]

House bill

    Requires State food stamp agencies to make available to law 
enforcement officers the address of a food stamp recipient if 
the officer furnishes the recipient's name and notifies the 
agency that (1) the individual is fleeing to avoid prosecution 
or custody for a felony crime (or attempt) or the individual 
has information necessary for the officer to conduct official 
duties, (2) the location or apprehension of the individual is 
within the officer's official duties, and (3) the request is 
made in the proper exercise of official duties.

Senate amendment

    Similar to the House bill, requires State food stamp 
agencies to make available to law enforcement officers the 
address, social security number, and (when available) 
photograph of a food stamp recipient if the officer furnishes 
the recipient's name and notifies the agency as stipulated in 
the House bill.
    Requires State agencies to furnish the Immigration and 
Naturalization Service with the name of, address of, and 
identifying information on any individual the agency knows is 
unlawfully in the United States.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment (1) deleting the requirement for Immigration and 
Naturalization Service notification and (2) making clear that 
the requested information must be related to apprehension of a 
felon or parolee.

                          31. Effective Dates

Present law

    No provision.

House bill

    Except for amendments dealing with the Food Stamp program's 
quality control system (effective October 1, 1994), the food 
stamp and commodity distribution program amendments made by the 
Personal Responsibility Act would be effective October 1, 1995.

Senate amendment

    Provides that Food Stamp Act amendments would be effective 
October 1, 1995.

Conference agreement

    The Conference agreement provides that (1) provisions 
affecting deduction levels are effective October 1, 1996. and 
(2) all other provisions are effective on enactment.

                         32. Sense of Congress

Present law

    No provision.

House bill

    Provides that it is the sense of Congress the States 
operating electronic benefit transfer systems to provide food 
stamp benefits should operate systems that are compatible with 
each other.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the House bill.

                         33. Deficit Reduction

Present law

    No provision.

House bill

    Provides that it is the sense of the House Committee on 
Agriculture that reductions in outlays resulting from Food 
Stamp Act (and commodity distribution program) provisions of 
the Personal Responsibility Act not be taken into account for 
purposes of Section 252 of the Balanced Budget and Emergency 
Deficit Control Act (relating to enforcement of ``pay-as-you-
go'' provisions of the Budget Act).

Senate amendment

    No provision

Conference agreement

    The Conference agreement follows the Senate amendment.

                        34. Certification Period

Present law

    For households subject to periodic (monthly) reporting of 
their circumstances, eligibility certification periods must be 
6-12 months, except that the Secretary may waive this rule to 
improve program administration. For households receiving 
federally aided public assistance or general assistance, 
certification periods must coincide with the certification 
periods for the other public assistance. For other households, 
certification periods generally must be not less than 3 
months--but they can be (1) up to 12 months for those 
consisting entirely of unemployable, elderly, or primarily 
self-employed persons or (2) as short as circumstances require 
for those with a substantial likehood of frequent changes in 
income or other household circumstances and for any household 
on initial eligibility determination (as judged by the 
Secretary). The Secretary may waive the maximum 12-month limit 
to improve program administration. [See 3(c)]

House bill

    No provision

Senate amendment

    Replaces existing provisions as to certification periods 
with a requirement that certification periods not exceed 12 
months--but can be up to 24 months if all adult household 
members are elderly, disabled, or primarily self-employed.
    Requires State agencies to have at least 1 personal contact 
with each certified household every 12 months.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment allowing certification periods of up to 24 months 
for households whose adult members are all elderly or disabled 
and deleting the reference to a ``personal'' contact.

                35. Treatment of Children Living at Home

Present law

    Parents and their children 21 years of age or younger who 
live together must apply for food stamps as a single household 
(thereby reducing aggregate household benefits)--except for 
children who are themselves parents living with their children 
and children who are married and living with their spouses. 
[Sec. 3(i)]

House bill

    No provision.

Senate amendment

    Removes the existing exception for children who are 
themselves parents living with their children and children who 
are married and living with their spouses.

Conference agreement

    The Conference agreement follows the Senate amendment.

 36. optional additional criteria for separate household determinations

Present law

    Certain persons who live together may apply for food stamps 
as separate households (thereby increasing aggregate household 
benefits) if they (1) are unrelated and purchase food and 
prepare meals separately or (2) are related but are not spouses 
or children living with their parents (See item 35). In 
addition, elderly persons who live with others and cannot 
purchase food and prepare meals separately because of a 
substantial disability may apply a separate households as long 
as their co-residents' income is below prescribed limits (165% 
of the Federal poverty income guidelines). [Sec. 3(i)]

House bill

    No provision.

Senate amendment

    Permits States to establish criteria that prescribe when 
individuals living together, and would otherwise be allowed to 
apply as separate households, must apply as a single household 
(without regard to common purchase of food and preparation of 
meals).

Conference agreement

    The Conference agreement follows the Senate amendment.

                 37. definition of homeless individual

Present law

    For food stamp eligibility and benefit determination 
purposes, a ``homeless individual'' is a person lacking a 
fixed/regular nighttime residence or one whose primary 
nighttime residence is a shelter, a residence intended for 
those to be institutionalize, a temporary accommodation in the 
resident of another, or a public or private place not designed 
to be a regular sleeping accommodation for humans. [Sec. 3(s)]

House bill

    No provision.

Senate amendment

    Provides that persons whose primary nighttime residence is 
a temporary accommodation in the home of another may only be 
considered homeless if the accommodation is for no more than 90 
days.

Conference agreement

    The Conference agreement follows the Senate amendment.

                    38. state options in regulations

Present law

    The Secretary is directed to establish uniform national 
standards of eligibility for food stamps (with certain 
variations allowed for Alaska, Hawaii, Guam, and the Virgin 
Islands) and in other cases (e.g., imposition of monthly 
reporting requirements). States may not impose any other 
standards of eligibility as a condition of participation in the 
program. [Sec. 5(b)]

House bill

    No directly comparable provision. [Note: See item 3.]

Senate amendment

    Explicitly permits non-uniform standards of eligibility.

Conference agreement

    The Conference agreement follows the Senate amendment.

                        39. earnings of students

Present law

    The earnings of an elementary/secondary student are 
disregarded as income until the student's 22nd birthday. [Sec. 
5(d)(7)]

House bill

    No provision.

Senate amendment

    Requires that earnings of an elementary/secondary student 
be counted as income once the student turns age 20.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment requiring that earnings be counted for students 
who are 20 or older.

                        40. Benefits for Aliens

               A. Deeming Sponsors' Income and Resources

Present law

    A portion of the income and resources of the sponsor of a 
lawfully admitted alien must be deemed as available to the 
sponsored alien for 3 years after the alien's entry. Income is 
deemed to the extent it exceeds the appropriate food stamp 
income eligibility limit (130% of the Federal income poverty 
guidelines); liquid resources are deemed to the extent they 
exceed $1,500. [Sec. 5(i)]

House bill

    No directly comparable provision.

Senate amendment

    Extends the deeming period for sponsored legal aliens to 5 
years from lawful admittance or the period of time agreed to in 
the sponsor's affidavit, whichever is longer. [Note: See 
conference comparison for title IV in the House bill and title 
V in the Senate amendment.]

Conference agreement

    The Conference agreement follows the House bill.

                B. Counting Aliens' Income and Resources

Present law

    The income (less a pro rata share) and all resources of 
aliens who are ineligible for food stamps under provisions of 
the Food Stamp Act are counted as income/resources to the rest 
of the household living with the alien. [Sec. 6(f)]

House bill

    No provision.

Senate amendment

    Permits States to count all of the income and resources of 
aliens ineligible for food stamps under the provisions of the 
Food Stamp Act as income/resources to the rest of the 
household.

Conference agreement

    The Conference agreement follows the Senate amendment.

              41. Cooperation with Child Support Agencies

                          A. Custodial Parents

Present law

    No provisions.

House bill

    No provisions.

Senate amendment

    Permits States to disqualify custodial parents of children 
under the age of 18 who have an absent parent unless the 
custodial parent cooperates with the State child support agency 
in establishing the child's paternity and obtaining support for 
the child and the custodial parent. Cooperation would not be 
required if the State finds there is good cause (in accordance 
with Federal standards taking into account the child's best 
interest). Fees or other costs for services could not be 
charged.

Conference agreement

    The Conference agreement follows the Senate amendment.

                        B. Non-custodial Parents

Present law

    No provisions.

House bill

    No provisions.

Senate amendment

    Permits States to disqualify putative or identified non-
custodial parents of children under 18 if they refuse to 
cooperate with the State child support agency in establishing 
the child's paternity and providing support for the child. The 
Secretary and the Secretary of Health and Human Services would 
develop guidelines for what constitutes a refusal to cooperate, 
and States would develop procedures (using these guidelines) 
for determining whether there has been a refusal to cooperate. 
Fees or other costs for services could not be charged. States 
would be required to provide safeguards to restrict the use of 
information collected by the child support agency to the 
purposes for which it was collected.

Conference agreement

    The Conference agreement follows the Senate amendment.

        42. optional combined allotment for expedited households

Present law

    For households applying after the 15th day of the month, 
States may provide an allotment that is the aggregate of the 
initial (pro-rated) allotment and the first regular allotment--
but combined allotments must be provided to households applying 
after the 15th of the month who are entitled to expedited 
service. [Sec. 8(c)(3)]

House bill

    No provision.

Senate amendment

    Makes provision of combined allotments a State option both 
for regular and expedited service applicants.

Conference agreement

    The Conference agreement follows the Senate amendment.

43. failure to comply with other welfare and public assistance programs

Present law

    Households penalized for an intentional failure to comply 
with a Federal, State, or local welfare program may not, for 
the duration of the penalty, receive an increased food stamp 
allotment because their welfare income has been reduced. [Sec. 
8(d)]
    [Note: This has been interpreted by regulation to apply 
only to reductions in welfare income due to repayment of 
overpayments resulting from a welfare violation, although a 
revision of the regulation is scheduled.]

House bill

    [Note: See item 4C.]

Senate amendment

    Bars increased food stamp allotments because the benefits 
of a household are reduced under a Federal, State, or local 
welfare or public assistance program for failure to perform a 
required action. In carrying out this requirement, States may, 
in determining food stamp allotments for the duration of the 
public assistance reduction, use the household's pre-reduction 
welfare benefits.
    Permits States also to reduce the household's food stamp 
allotment by up to 25%. If the allotment is reduced for failure 
to perform an action required under a family assistance block 
grant program, the State may use the rules and procedures of 
that program to reduce the food stamp allotment.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment changing references to welfare or public 
assistance programs to references to mean-tested public 
assistance programs.

         44. allotments for households residing in institutions

Present law

    Homeless shelters and residential drug or alcoholic 
treatment centers may be designated as recipients' authorized 
representatives. [Note: In the case of residential treatment 
centers, benefits generally are provided to the center.]

House bill

    No provision.

Senate amendment

    Permits States to divide a month's food stamp benefits 
between the shelter/center and an individual who leaves the 
shelter/center.
    Permits States to require residents of shelters/centers to 
designate the shelter/center as authorized representatives.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment deleting homeless shelters from those institutions 
covered by the amendment.

                  45. operation of food stamp offices

                       A. State Plan Requirements

Present law

    States must:
            (1) allow households contacting the food stamp 
        office in person during office hours to make an oral/
        written request for aid and receive and file an 
        application on the same day;
            (2) use a simplified, uniform federally designed 
        application, unless a waiver is approved;
            (3) include certain, specific information in 
        applications;
            (4) waive in-person interviews under certain 
        circumstances (they may use telephone interviews or 
        home visits instead);
            (5) provide for telephone contact and mail 
        application by household with transportation or similar 
        difficulties;
            (6) require an adult representative of the 
        household to certify as to household members' 
        citizenship/alien status;
            (7) assist households in obtaining verification and 
        completing applications;
            (8) not require additional verification of 
        currently verified information (unless there is reason 
        to believe that the information is inaccurate, 
        incomplete, or inconsistent);
            (9) not deny an application solely because a non-
        household member fails to cooperate;
            (10) process applications if the household meets 
        cooperation requirements;
            (11) provide households (at certification and 
        recertification) with a statement of reporting 
        responsibilities;
            (12) provide a toll-free or local telephone number 
        at which households may reach State personnel;
            (13) display and make available nutrition 
        information; and
            (14) use mail issuance in rural areas where low-
        income households face substantial difficulties in 
        obtaining transportation (with exceptions for high mail 
        losses). [Sec. 11(e)(2), (3), (14), & (25)]

House bill

    No Provisions.

Senate amendment

    Replaces noted existing State plan requirements with 
requirements that the State:
            (1) establish procedures governing the operation of 
        food stamp offices that it determines best serve 
        households in the State, including those with special 
        needs (such as households with elderly or disabled 
        members, those in rural areas, the homeless, households 
        residing on reservations, and households speaking a 
        language other than English);
            (2) provide timely, accurate, and fair service to 
        applicants and participants;
            (3) permit applicants to apply and participate on 
        the same day they first contact the food stamp office 
        during office hours; and
            (4) consider an application field on the date the 
        applicant submits an application that contains the 
        applicant's name, address, and signature.
    Permits States to establish operating procedures that vary 
for local food stamp offices to reflect regional and local 
differences.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment that also (1) requires applicants to certify in 
writing as the truth of information on application (including 
citizenship status), (2) stipulates that the signature of a 
single adult will be sufficient to comply with any provision of 
Federal law requiring applicant's signatures, (3) requires that 
States have methods for certifying homeless households, (4) 
makes clear that nothing in the Food Stamp Act prohibits 
electronic storage of application and other information, and 
(5) makes technical amendments.

                  B. Application and Denial Procedures

Present law

    A single interview for determining AFDC and food stamp 
benefits if required. Food stamp applications generally are 
required to be contained in public assistance applications, and 
applications and information on how to apply for food stamps 
must be provided local assistance applicants. Applicants 
(including those who have recently lost or been public 
assistance) must be certified eligible for food stamps based on 
the information in their public assistance casefile (to the 
extent it is reasonably verified).
    No household may be terminated from or denied food stamps 
solely on the basis that it has terminated from or denied other 
public assistance and without a separate food stamp eligibility 
determination.

House bill

    No provisions.

Senate amendment

    Deletes noted existing requirements for single interviews, 
applications, and food stamp determinations based on public 
assistance information.
    Permits disqualification for food stamps based on another 
public assistance program's disqualification for failure to 
comply with its rules or regulations.

Conference agreement

    The Conference agreement follows the Senate amendment.

               46. state employee and training standards

Present law

    States must employ agency personnel doing food stamp 
certifications in accordance with current Federal ``merit 
system'' standards. States must provide continuing, 
comprehensive training for all certification personnel. States 
may undertake intensive training of certification personnel to 
ensure they are qualified for certifying farming households. 
States may provide or contract for the provision of training/
assistance to persons working with volunteer or nonprofit 
organizations that provide outreach and eligibility screening 
activities. [Sec. 11(e)(6)]

House bill

    No provision.

Senate amendment

    Deletes noted existing provisions for merit system 
standards and training.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment retaining existing provisions for merit system 
standards.

                      47. expedited coupon service

Present law

    States must provide expedited benefits to applicant 
households that (1) have gross income under $150 a month (or 
are ``destitute'' migrant or seasonal farmworker households) 
and have liquid resources of no more then $100, (2) homeless 
households, and (3) households that have combined gross income 
and liquid resources less than the household's monthly shelter 
expenses.
    Expedited service means providing an allotment no later 
than 5 days after application. [Sec. 11(e)(9)]

House bill

    No provision.

Senate amendment

    Deletes noted existing requirements to provide expedited 
service to the homeless and households with shelter expenses in 
excess of their income/resources.
    Lengthens the period in which expedited benefits must be 
provided to 7 business days.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment providing that expedited benefits must be provided 
in 7 calendar days.

                           48. fair hearings

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Permits households to withdraw fair hearing requests orally 
or in writing. If it is an oral request, the State must provide 
a written notice to the household confirming the request and 
providing the household with another chance to request a 
hearing.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment providing that permission for households to 
withdraw fair hearing requests orally or in writing is a State 
option.

             49. income and eligibility verification system

Present law

    States must use the ``income and eligibility verification 
systems'' established under Sec. 1137 of the Social Security 
Act to assist in verifying household circumstances; this 
includes a system for verifying financial circumstances (IEVS) 
and a system for verifying alien status (SAVE). [Sec. 11(e)(19) 
of the Food Stamp Act and Sec. 1137 of the Social Security 
Act.]

House bill

    No provision.

Senate amendment

    Makes use of IEVS and SAVE optional with the States.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment making clear that the option applies to both IEVS 
and SAVE.

  50. termination of federal march for optional information activities

Present law

    If a State opts to conduct informational (``outreach'') 
activities for the food stamp program, the Federal Government 
shares half the cost. [Sec. 11(e)(1) & Sec. 16(a)]

House bill

    No provision.

Senate amendment

    Terminates the Federal share of optional State outreach 
activities. [Note: Sec. 333(b) makes a technical amendment to 
Sec. 16(g) of the Food Stamp Act.]

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment that does not terminate the Federal share of 
optional State outreach activities but bar a Federal share for 
``recruitment activities.''

                    51. standards for administration

Present law

    The Secretary is required to (1) establish standards for 
efficient and effective administration of the program, 
including standards for review of food stamp office hours to 
ensure that employed individuals are adequately served, and (2) 
instruct States to submit reports on administrative actions 
taken to meet the standards. [Sec. 16(b)]

House bill

    No provision.

Senate amendment

    Deletes the noted existing requirements relating to Federal 
standards for efficient and effective administration.

Conference agreement

    The Conference agreement follows the Senate amendment.

                          52. waiver authority

Present law

    The Secretary may waive Food Stamp Act requirements to the 
degree necessary to conduct pilot/demonstration projects, but 
no project may be implemented that would lower or further 
restrict food stamp income/resource eligibility standards or 
benefit levels (other than certain projects involving the 
payment of the average value of allotments in cash and certain 
work program demonstrations). [Sec. 17(b)(1)]

House bill

    No provision.

Senate amendment

    Replaces existing waiver authority with authority for the 
Secretary to waive Food Stamp Act requirements to the extent 
necessary to conduct pilot/experimental projects, including 
those designed to test innovative welfare reform, promote work, 
and allow conformity with other assistance programs.
    Requires that any project involving the payment of benefits 
in the form of cash maintain the average value of allotments 
for affected households.

Conference agreement

    The Conference agreement follows the Senate amendment. The 
Secretary is permitted to conduct pilot or experimental 
projects and waive Food Stamp Act requirements as long as the 
project is consistent with the goal of the food stamp program, 
to provide food to increase the level of nutrition among needy 
families. The Secretary is permitted to conduct projects that 
will improve the administration of the program, increase self-
sufficiency of food stamp participants, test innovative welfare 
reform strategies, or allow greater conformity among public 
assistance programs than is otherwise allowed in the Food Stamp 
Act. The Secretary is not permitted to conduct projects that 
involve issuing food stamp benefits in the form of cash (beyond 
those approved at enactment), substantially transfer program 
benefits to other public assistance programs, or are not 
limited to specific time periods.

                  53. authorization of pilot projects

Present law

    Existing pilot projects for the payment of food stamp 
benefits in the form of cash to households composed of elderly 
persons or SSI recipients are authorized to continue through 
October 1, 1995, if a State requests. [Sec. 17(b)(1)]

House bill

    No provision.

Senate amendment

    Extends the authorization for elderly/SSI cash-out projects 
through October 1, 2002.

Conference agreement

    The Conference agreement follows the Senate amendment.

                        54. Response to Waivers

Present law

    No provisions.

Present law

    No provisions.

House bill

    No provision.

Senate amendment

    Requires that, not later than 60 days after receiving a 
demonstration project waiver request, the Secretary (1) approve 
the request, (2) deny the request and explain any modifications 
needed for approval, (3) deny the request and explain the 
grounds for denial, or (4) ask for clarification of the 
request. If a response is not forthcoming in 60 days, the 
waiver would be considered approved. If a waiver request is 
denied, the Secretary must provide a copy of the waiver request 
and the grounds for denial to the House and Senate Agriculture 
Committees.

Conference agreement

    The Conference agreement follows the Senate amendment.

               55. Private Sector Employment Initiatives

Present law

    No provision.

House bill

    [Note: See item 4E.]

Senate amendment

    Allows certain States to operate `private sector employment 
initiatives'' under which food stamp benefits could be paid in 
cash to some participants households. States would be eligible 
to operate private sector employment initiatives if not less 
than 50% of the households that received food stamp benefits in 
the summer of 1993 also received AFDC benefits. Households 
would be eligible to receive cash payments if an adult member 
so elects and (1) has worked in unsubsidized private sector 
employment for not less than the 90 preceding days, (2) has 
earned not less than $350 a month from that employment, (3) is 
eligible to receive family assistance block grant benefits (or 
was eligible when cash payments were first received and is no 
longer eligible because of earned income), and (4) is 
continuing to earn not less than $350 a month from private 
sector employment. States operating a private sector employment 
initiative for 2 years must provide a written evaluation of the 
impact of cash assistance (the content of the evaluation would 
be determined by the State).

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment requiring States that select this option to 
increase benefits to compensate for State or local sales taxes 
on food purchases.

                       56. Optional Block Grants

Present law

    No provisions.

House bill

    [Note: Sec. 556(b) of the House bill adds a new section 25 
to the Food Stamp Act containing provisions for an optional 
block grant.]
    Allows States that have fully implemented an electronic 
benefit transfer system to elect an annual block grant to 
operate a low-income nutrition assistance program in lieu of 
the food stamp program.
    Grants funds to States electing a block grant.--States 
would receive (1) the greater of: the total fiscal year 1994 
amount they received as food stamp benefits; or the fiscal 
years 1992-1994 average they received as food stamp benefits 
and (2) the greater of: the fiscal year 1994 Federal share of 
administrative costs; or the fiscal years 1992-1994 average 
they received as the Federal share of administrative costs. 
Grant payments would be made at times and in a manner 
determined by the Secretary.
    Requires annual submission of a State plan specifying the 
manner in which the block grant nutrition assistance program 
will be conducted. The plan must:
            (1) certify that the State has implemented a State-
        wide electronic benefit transfer system under Food 
        Stamp Act conditions;
            (2) designate a single State agency responsible for 
        administration;
            (3) assess the food and nutrition needs of needy 
        persons in the State;
            (4) limit assistance to the purchase of food;
            (5) describe the persons to whom aid will be 
        provided;
            (6) assure that assistance will be provided to the 
        most needy;
            (7) assure that applicants for assistance have 
        adequate notice and fair hearing rights comparable to 
        those under the regular food stamp program;
            (8) provide that there be no discrimination on the 
        basis of race, sex, religion, national origin, or 
        political beliefs; and
            (9) include other information as required by the 
        Secretary.
    In general, permits block grant payments to be expended 
only in the fiscal year in which they are distributed to a 
State. States may reserve up to 5% of a fiscal year's grant to 
provide assistance in subsequent years, but reserved funds may 
not total more than 20% of the total grant received for a 
fiscal year.
    Requires States to keep records concerning block grant 
program operations and make them available to the Secretary and 
the Comptroller General.
    If the Secretary finds there is substantial failure by a 
State to comply, requires the Secretary to (1) suspend all or 
part of a grant payment until the State is determined in 
substantial compliance, (2) withhold all/part of a grant 
payment until the Secretary determines that there is no longer 
a failure to comply, or (3) terminate the State's authority to 
operate a nutrition assistance block grant program.
    Requires States to provide for biennial audits of block 
grant expenditures, provide the Secretary with the audit, and 
make it available for public inspection.
    Requires an annual ``activities report'' comparing actual 
spending for nutrition assistance in each fiscal year with the 
spending predicted in the State plan; the report must be made 
available for public inspection.
    Requires that whoever knowingly and willfully embezzles, 
misapplies, steals, or obtains by fraud, false statement, or 
forgery any funds or property provided or financed under a 
nutrition assistance block grant be fined not more than 
$10,000, imprisoned for not more than 5 years, or both.
    Requires that the State plan provide that there will be no 
discrimination on the basis of race, sex, religion, national 
origin, or political beliefs.
    Requires that all assistance provided under the block grant 
be limited to the purchase of food. [Note: Because the State 
would have fully implemented an electronic benefit transfer 
system, benefits would be provided through these systems.]

Senate amendment

    [Note: Sec. 343(a) of the Senate amendment adds a new 
section 25 to the Food Stamp Act containing provisions for an 
optional block grant.]
    Requires the Secretary to establish a program to make 
grants to States, in lieu of the food stamp program, to provide 
food assistance to needy individuals and families, wage 
subsidies and payments in return for work for needy 
individuals, funds to operate an employment and training 
program for needy individuals, and funds for administrative 
costs incurred in providing assistance.
    Grants funds to States electing a block grant--States would 
receive (1) the greater of: the total fiscal year 1994 amount 
they received as food stamp benefits; or the fiscal years 1992-
1994 average they received as food stamp benefits and (2) the 
greater of: the fiscal year 1994 Federal share of 
administrative costs and employment/training program costs; or 
the fiscal years 1992-1994 average they received as the Federal 
share of administrative costs and employment/training program 
costs. If total allotments for a fiscal year would exceed the 
amount of funds made available to provide them, the Secretary 
is required to reduce allotments on a pro rata basis to the 
extent necessary. Grant payments would be made by issuing 1 or 
more letters of credit, with necessary adjustments for 
overpayments and underpayments.
    Requires annual submission of a State plan containing 
information as required by the Secretary. The plan:
            (1) must have an assurance that the State will 
        comply with block grant requirements;
            (2) must identify a ``lead agency'' responsible for 
        administration, development of the plan, and 
        coordination with other programs;
            (3) must provide that the State will use grant 
        funds as follows:
                    (a) to give food assistance to needy 
                persons (other than certain residents of 
                institutions);
                    (b) at State option, to provide wage 
                subsidies and workfare for needy persons;
                    (c) to administer an employment and 
                training program for needy persons (and provide 
                reimbursement for support services); and
                    (d) to pay administrative costs incurred in 
                providing assistance;
            (4) must describe how the program will serve 
        specific groups of persons (and how that treatment will 
        differ from the regular food stamp program) including 
        the elderly, migrants or seasonal farmworkers, the 
        homeless, those under the supervision of institutions, 
        those with earnings, and Indians;
            (5) must provide that benefits be available 
        statewide;
            (6) must provide that applicants and recipients are 
        provided with notice and fair hearing rights;
            (7) may coordinate block grant assistance with aid 
        under the family assistance block grant;
            (8) may reduce food assistance or otherwise 
        penalize persons or families penalized for violating 
        family assistance block grant rules;
            (9) must assess the food and nutrition needs of 
        needy persons in the State;
            (10) must describe the income and resource 
        eligibility limits established under the block grant;
            (11) must establish a system to ensure that no 
        persons receive block grant benefits in more than 1 
        jurisdiction;
            (12) must provide for safeguarding and restricting 
        the use and disclosure of information about recipients; 
        and
            (13) must contain other information as required by 
        the Secretary.
    Same as the House bill, except that States may reserve up 
to 10% a year and reserve funds may not total more than 30% of 
the total grant received.
    Requires the Secretary to review and monitor State 
compliance with block grant rules and State plans. If the 
Secretary (after notice and opportunity for a hearing) finds 
that there has been a failure to substantially comply with the 
State's plan or the provisions of the block grant, the 
Secretary must notify the State and no further payments would 
be made until the Secretary is satisfied that there is no 
longer a failure to comply or that noncompliance will be 
promptly corrected.
    Allows the Secretary (in cases of noncompliance) to impose 
other appropriate sanctions on States in addition to, or in 
lieu of, withholding block grant payments; these sanctions may 
include recoupment of money improperly spent and 
disqualification from receipt of a block grant. The Secretary 
also is required to establish procedures for (1) receiving, 
processing, and determining the validity of complaints about 
States' failure to comply with block grant obligations and (2) 
imposing sanctions. In addition, the Secretary is permitted to 
withhold not more than 5% of a State's annual allotment if the 
State does not use an ``income and eligibility verification 
system''' established under Sec. 1137 of the Social Security 
Act.
    Requires States to arrange for annual independent audits of 
block grant expenditures. Each annual audit must include an 
audit of payment accuracy based on a statistically valid sample 
and be submitted to the State legislature and the Secretary. 
States must repay any amounts the audit determines have not 
been expended in accordance with the State plan, or the 
Secretary can offset amounts against any other amount paid the 
State under the block grant.
    Provides that a State that elects a food assistance block 
grant option may subsequently reverse that choice only once.
    Finds that the Senate has adopted a resolution that 
Congress should not enact/adopt any legislation that will 
increase the number of hungry children, that it is not its 
intent to cause more children to be hungry, that the food stamp 
program serves to prevent child hunger, and that a State's 
election for a food assistance block grant should not serve to 
increase the number hungry children in the State.
    Provides that a State's election for a food assistance 
block grant be permanently revoked 180 days after the Secretary 
of Health and Human Services has made 2 successive findings 
(over a 6-year period) that the ``hunger rate'' among children 
is significantly higher in a food assistance block grant State 
than it would have been if the State had not made the choice.
    Specifies procedures for a finding that a State's child 
hunger rate has risen significantly. Every 3 years, the 
Secretary must develop data and report with respect to any 
significant increase in child hunger in States that have 
elected a food assistance block grant. The Secretary must 
provide the report to states that have elected a block grant 
and must provide States with a higher child hunger rate with an 
opportunity to respond. If the State's response does not result 
in a reversal of the Secretary's determination that the child 
hunger rate is significantly higher than it would have been 
without the State's block grant election, the Secretary must 
publish a determination that the State's block grant choice is 
revoked.
    Requires States to designate a lead administrative agency. 
The agency must administer (either directly or through other 
agencies) the food assistance block grant aid, develop the 
State plan, hold at least 1 hearing for public comment on the 
plan, and coordinate food assistance block grant aid with other 
government assistance. In developing the State plan, the lead 
agency must consult with local governments and private sector 
organizations so that services are provided in a manner 
appropriate to local populations.
    Provides that nothing in the new food assistance block 
grant section of the Food Stamp Act entitles anyone to 
assistance or limits the right of States to impose additional 
limits or conditions.
    Requires that no funds under the food assistance block 
grant be spent for the purchase or improvement of land, or for 
the purchase, construction, or permanent improvement of any 
building/facility.
    Requires that no alien otherwise ineligible to participate 
in the regular food stamp program be eligible to participate in 
a food assistance block grant program, and that the income of 
the sponsor of an alien be counted as in the regular food stamp 
program.
    Requires that (1) no person be eligible to receive food 
assistance block grant benefits if they do not meet regular 
food stamp program work requirements and (2) that each State 
operating a food assistance block grant implement an employment 
and training program under regular food stamp program rules.
    Bars the Secretary from providing assistance for any 
program, project, or activity under a food assistance block 
grant if any person with operational responsibilities 
discriminates because of race, religion, color, national 
origin, sex, or disability. Also provides for enforcement 
through title VI of the Civil Rights Act.
    Requires that, in each fiscal year, at least 80% of Federal 
funds expended under a State's block grant be for good 
assistance and not more than 6% be for administrative expenses. 
A State could provide food assistance to meet the 80% 
requirement in any manner it determines appropriate (such as 
electronic benefit transfers, coupons, or direct provision of 
commodities), but ``food assistance'' would be limited to 
assistance that may only be used to obtain food (as defined in 
the Food Stamp Act).
    Provides that the Secretary may conduct research on the 
effects and costs of a State food assistance block grant 
program.

Conference agreement

    The Conference agreement follows the House bill with and 
amendment. States that meet one of three conditions may elect 
to receive an annual block grant to operate a food assistance 
program for needy persons in lieu of the food stamp program. 
Eligible States may opt for a block grant at any time, but, if 
the State chooses to withdraw from the block grant or is 
disqualified, it may not again opt for a block grant. Eligible 
States include: (1) those that have fully implemented a 
statewide electronic benefit transfer system, (2) those for 
which the dollar value of erroneous benefit and eligibility 
determinations (overpayments, payments to ineligibles, and 
underpayments) in the food stamp program or their food 
assistance block grant program is 6% of benefits issued or less 
(a ``payment error rate'' of 6% or less), and (3) those with a 
payment error rate higher than 6% that agree to contribute, 
from non-Federal sources, a dollar amount equal to the 
difference between their payment error rate and a 6% rate to 
pay for benefits and administration of their food assistance 
block grant program. A State's payment error rate for block 
grant purposes is the most recent rate available, as determined 
by the Secretary.
    States electing a block grant would be provided an annual 
grant equal to: (1) the greater of the FY1994 amount they 
received as food stamp benefits, or the 1992-1994 average they 
received as food stamp benefits and (2) the greater of the FY 
1994 Federal share of administrative costs, or the 1992-1994 
average they received as the Federal share of administrative 
costs. However, grants to States with payment error rates above 
6% would be reduced by the amount they are required to 
contribute (i.e., the dollar amount equal to the difference 
between their payment error rate and a 6% rate). In general, 
block grant payments must be expended in the fiscal year for 
which they were distributed; but States may reserve up to 10% a 
year, up to a total of 30% of the block grant. If total 
allotments for a fiscal year would exceed the amount of funds 
made available to provide them, the Secretary is required to 
reduce allotments or a pro rata basis to the extent necessary. 
Grant payments would be made by issuing letters of credit.
    Block grant funding may only be used for food assistance 
and administrative costs related to its provision, and, in each 
fiscal year, not more than 6% of total funds expended 
(including State funds required to be spent) may be used for 
administrative costs.
    Each participating block grant State is required to 
maintain a food stamp quality control program to measure 
erroneous benefit and eligibility determinations, and block 
grant States would continue to be subject to the food stamp 
program's quality control system (including eligibility for 
incentive payments and imposition of fiscal sanction for very 
high payment error rates). Each participating State is required 
to implement an employment and training program under Food 
Stamp Act terms and conditions and is eligible to receive 
Federal funding for employment and training activities (in 
addition to the food stamp block grant amount).
    In order to receive a block grant, a State must annually 
submit a State plan for approval by the Secretary. The State 
plan must: (1) identify a lead administering agency, (2) 
describe how and to what extent the State's program serves 
specific groups (e.g., the elderly, migrant and seasonal 
farmworkers, the homeless, those with earnings, Indian) and how 
the treatment differs from their treatment under the food stamp 
program, (3) provide that benefits are available statewide, (4) 
provide for notice and an opportunity for a hearing to those 
adversely affected, (5) assess the food and nutrition needs of 
needy persons in the State, (6) describe the State's 
eligibility standards for assistance under the block grant 
program, (7) establish a system for exchanging information with 
other States to verify recipients' identity and the possible 
receipt of benefits in another State, (8) provide for 
safeguarding and restricting the use and disclosure of 
information about recipients, and (9) other information 
required by the Secretary.
    Eligibility for assistance under the block grant is 
determined by the State, and there is not individual 
entitlement to assistance. However, certain Federal rules 
apply: (1) aliens who would not be eligible under the food 
stamp program are not eligible for block grant aid; (2) persons 
and households who would be ineligible under the food stamp 
program's work rules are not eligible for block grant aid; (3) 
disqualification of fleeing felons; and (4) disqualification 
for child support arrears.
    If the Secretary finds that here has been a failure to 
comply with provisions of the block grant or the State's 
approved plan or finds that, in the operation of any program or 
activity for which assistance is provided, there is a State 
failure to comply substantially with block grant provisions--
the Secretary must withhold funding, as appropriate, until 
satisfied there is no longer a failure to comply or that the 
noncompliance will be promptly corrected. In addition, the 
Secretary may impose other appropriate penalties, including 
recoupment of improperly spent money and disqualification from 
the block grant. States must be provided notice and an 
opportunity for a hearing in this process.
    The Secretary is authorized to conduct research on the 
effects and costs of a State food assistance block grant.

 57. specific period for prohibiting participation of stores based on 
                       lack of business integrity

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Authorizes the Secretary to issue regulations establishing 
specific time periods during which retailers/wholesalers that 
have been denied approval or had approval withdrawn on the 
basis of ``business integrity and reputation'' may not submit a 
new application for approval. The periods established would be 
required to reflect the severity of the business integrity 
infractions on which the denial/withdrawal was based.

Conference agreement

    See item 20 above.

      58. information for verifying eligibility for authorization

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Permits the Secretary to require that retailers and 
wholesalers seeking approval submit relevant income and sales 
tax filing documents. Permits regulations requiring retailers 
and wholesalers to provide written authorization for the 
Secretary to verify all relevant tax filings and to obtain 
corroborating documentation from other sources in order to 
verify the accuracy of information provided by retailers and 
wholesalers.

Conference agreement

    The Conference agreement follows the Senate amendment.

            59. bases for suspensions and disqualifications

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Requires criteria for finding violations by retailers and 
wholesalers (and their suspension or disqualification) on the 
basis of evidence including on-site investigations, 
inconsistent redemption data, or electronic benefit transfer 
system transaction reports.

Conference agreement

    The Conference agreement follows the House bill. The 
Conferees note that the Secretary currently has the authority 
contained in the Senate amendment.

60. permanent debarment of retailers who intentionally submit falsified 
                              applications

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Requires regulations permanently disqualifying retailers 
and wholesalers that knowingly submit an application or 
approval that contains false information about a substantive 
matter. A permanent disqualification or a knowingly false 
application would be subject to administrative and judicial 
review, but the disqualification would remain in effect pending 
the review.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment permitting the Secretary to disqualify a store or 
concern, including permanently, upon knowing submission of 
false information on an application.

                      61. categorical eligibility

Present law

    Households in which all members are recipients of AFDC are 
categorically eligible for food stamps. [Sec. 5(a)]
    Child support payments received by a household and excluded 
under the AFDC program may be disregarded for food stamps, at 
State option and expense. [Sec. 5(d)(13)]
    Household members who are AFDC recipients are considered to 
have met food stamp resource (asset) eligibility standards. 
[Sec. 5(j)]
    Persons who are AFDC recipients are exempt from food stamp 
rules barring eligibility to most postsecondary students. [Sec. 
6(e)]
    In general, food stamp eligibility is barred to those with 
total (gross) household income above 130% of the Federal income 
poverty guidelines. [Sec. 5(c)]
    Political subdivisions electing to operate workfare 
programs for food stamp recipients may comply with food stamp 
requirements by operating a workfare program under title IV of 
the Social Security Act. [Sec. 20(a)]
    Households exempt from food stamp work rules because of 
participation in an AFDC community work experience program are 
subject to a limit on the number of hours of work--their cash 
assistance plus food stamps, divided by the minimum wage (but 
no person can be required to work more than 120 hours a month). 
[Sec. 20(a)]

House bill

    No provision. [Note: TANF households would presumably be 
categorically eligible for food stamps under existing 
provisions of law.]
    No provision. [Note: TANF recipients would presumably be 
considered to have met food stamp resource standards under 
existing provisions of law.]
    No provision. [Note: TANF recipients would presumably not 
be exempt from food stamp postsecondary student rules under 
existing provisions of law.]

Senate amendment

    Provides that households in which all members are 
recipients of benefits under a State's family assistance block 
grant program be categorically eligible for food stamps, if the 
Secretary determines that the program complies with Secretarial 
standards that ensure that State program standards are 
comparable to or more restrictive than those in effect June 1, 
1995.
    Deletes the existing provision for a State-option child 
support disregard. [Note: A separate provision (Sec. 5(m) of 
the Food Stamp Act) providing for State funding of the 
disregard is not deleted.]
    Provides that persons receiving benefits under a State's 
family assistance block grant program will be considered to 
have met food stamp resource eligibility standards, if the 
Secretary determines that the program complies with Secretarial 
standards that ensure that State program standards are 
comparable to or more restrictive than those in effect June 1, 
1995.
    Provides that persons receiving benefits under a State's 
family assistance block grant program are exempt from food 
stamp rules barring eligibility to most postsecondary students, 
if the Secretary determines that the program complies with 
Secretarial standards that ensure that State program standards 
are comparable to or more restrictive than those in effect June 
1, 1995.
    Provides that households may not receive food stamp 
benefits as the result of eligibility under a State's family 
assistance block grant program unless the Secretary determines 
that households with income above 130% of the poverty 
guidelines are not eligible for the State's program--
notwithstanding any other provision of the Food Stamp Act.
    Deletes the existing provision allowing compliance with 
food stamp workfare rules by operating a workfare program under 
title IV of the Social Security Act.
    Deletes the existing rule placing limits on hours worked 
for food stamp recipients in community work experience 
programs.
    Makes various technical amendments to the Food Stamp Act 
conforming its existing references to the AFDC program to cite 
the new family assistance block grant program.

Conference agreement

    The Conference agreement follows the Senate amendment.

                 62. protection of battered individuals

Present law

    No provision. [Note: Certain work rules contain a ``good 
cause'' exemption.]

House bill

    No provision.

Senate amendment

    In the case of individuals who were battered or subjected 
to extreme cruelty, permits states to exempt them from the 
following provisions of food stamp law (or modify their 
application) if their physical, mental, or emotional well-being 
would be endangered:
            (1) the requirement that the income and resources 
        of a sponsor of an alien be deemed to the sponsored 
        alien;
            (2) the requirement that custodial parents 
        cooperate with child support agencies (as added by the 
        senate amendment); and
            (3) all work requirements (including the new work 
        requirement added by the Senate amendment).

Conference agreement

    The Conference agreement follows the House bill. The 
conferees note that the Food Stamp act already provides 
protection to battered individuals in the application of child 
support enforcement and work rules.

                     63. reconciliation provisions

                        A. Transitional Housing

Present law

    Payments from regular welfare benefits made on behalf of 
households in transitional housing are disregarded as income. 
[(Sec. 5(k)]

House bill

    No provision.

Senate amendment

    Deletes disregard of transitional housing payments.

Conference agreement

    The Conference agreement follows the Senate amendment.

                           B. American Samoa

Present law

    No provision. [Note: A food assistance program for American 
Samoa is supported under provisions of law granting Secretarial 
discretion to extend Agriculture Department programs to 
American Samoa.]

House bill

    No provision.

Senate amendment

    Provides for funding of not more than $5.3 million a year 
through FY2002 for a nutrition assistance program in America 
Samoa.

Conference agreement

    The Conference agreement follows the Senate amendment.

               C. Assistance for Community Food Projects

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Authorizes $2.5 million a year for community food project 
grants to meet the food needs of low-income people, increase 
the self-reliance of communities in providing for their own 
food needs, and promote comprehensive responses to local food, 
farm, and nutrition issues.

Conference agreement

    The Conference agreement follows the Senate amendment, with 
an amendment making the funding for community food projects 
mandatory.

                         Commodity Distribution

                             1. Short Title

Present law

    The Emergency Food Assistance Act (EFAA), the Hunger 
Prevention Act of 1988, the Commodity Distribution Reform Act 
and WIC Amendments, the Charitable Assistance and Food Bank Act 
of 1987, the Food Security Act of 1985, the Agriculture and 
Consumer Protection Act of 1973, and the Food, Agriculture, 
Conservation, and Trade Act of 1990.

House bill

    Combines several existing commodity donation programs and 
authorities under one title, the Commodity Distribution Act of 
1995.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the House bill with an 
amendment striking the House provision and replacing it with a 
provision combining the emergency food assistance program 
(TEFAP) with the soup kitchen/food bank program into one 
program to be known as the TEFAP. The revised TEFAP is 
reauthorized through 2002, and the Secretary is required to 
purchase $300 million of commodities each year through 2002 for 
distribution through the TEFAP. The requirement to purchase 
$300 million of commodities is included in the Food Stamp Act 
authorization for appropriations.

                     2. Availability of Commodities

Present law

    Requires the Secretary to purchase a variety of nutritious 
and useful commodities using the resources of the CCC or 
Section 32 to supplement commodities acquired from the excess 
inventories of CCC for distribution to emergency feeding 
organizations. [Sec. 214(c) of Emergency Food Assistance Act 
(EFAA)]
    In addition to commodities donated from excess CCC 
holdings, authorizes the Secretary to donate Section 32 
commodities to eligible recipient agencies participating in 
TEFAP. [Sec. 202(c)]
    Requires the Secretary to make available to eligible 
recipient agencies CCC commodities in excess of those needed to 
meet domestic and international obligations and market 
development and food aid commitments and to carry out farm 
price and income stabilization features of the AAA of 1938, the 
AA of 1949, and the CCC Charter. [Sec. 202(a), EFAA]

House bill

    For fiscal years 1996-2000, authorizes the Secretary of 
Agriculture to purchase a variety of nutritious and useful 
commodities to distribute to the States for purposes laid out 
in the subtitle.
    Similar to current law, but also authorizes the use of 
Section 32 funds not otherwise used or needed, to purchase, 
process, and distribute commodities for purposes under the new 
program.
    Leaves current general authority untouched; maintains EFAA 
requirement but adds language stipulating that donations are to 
be in addition to authorized Section 32 donations.

Senate amendment

    Extends existing law purchasing authorities through FY 
2002.

Conference agreement

    See item 1 above.

                    3. Basis for Commodity Purchases

Present law

    Requires that commodities made available under the EFAA 
include a variety of items most useful to eligible recipient 
agencies, including dairy products, wheat and wheat products, 
rice, honey, and cornmeal. [Sec. 202(d), EFAA]

House bill

    Requires the Secretary to determine the types, varieties, 
and amounts of commodities purchased under this subtitle, and 
to make such purchases, to the maximum extent practicable and 
appropriate, on the basis of agricultural market conditions, 
State and distribution agency preferences and needs, and the 
preferences of recipients.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

           4. state and local supplementation of commodities

Present law

    Requires the Secretary to establish procedures by which 
State and local agencies, charitable institutions, or other 
person may supplement the commodities distributed under TEFAP 
for use by emergency feeding organizations with donations of 
nutritious and wholesome commodities. [Sec. 203D(a), EFAA]
    Allows States and emergency feeding organizations to use 
TEFAP funds, equipment, structures, vehicles, and all other 
facilities and personnel involved in the storage, handling, and 
distribution of TEFAP commodities to store, handle, or 
distribute commodities donated to supplement TEFAP commodities. 
[Sec. 203D(b), EFAA]
    Requires States and emergency feeding organizations to 
continue to use volunteer workers and commodities and foods 
donated by charitable and other organizations, to the maximum 
extent practical, in operating TEFAP.

House bill

    Similar to current law except that supplementation applies 
to all programs eligible to receive commodities under the new 
program, not just TEFAP.
    Similar to current law except it allows use of these 
sources to all programs eligible to participate in the new 
program (not just TEFAP), and explicitly identifies the funds 
that States and eligible agencies may use to help with 
supplemental commodities as those appropriated for 
administrative costs under the new Section 519(b).
    Same as current law, except substitutes recipient agencies 
for emergency feeding organizations to reflect expansion of 
provisions to cover other commodity donation programs as well 
as TEFAP.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                             5. State plan

Present law

    Requires Secretary to expedite the distribution of 
commodities to agencies designated by the Governor, or directly 
distribute commodities to eligible recipient agencies engaged 
in national commodity processing; allows States to give 
priority to donations to existing food bank networks serving 
low-income households. Requires States to expeditiously 
distribute commodities to eligible recipient agencies, and to 
encourage distribution to rural areas. Also requires States to 
distribute commodities only to agencies that serve needy 
persons and to set their own need criteria, with the approval 
of the Secretary. [Sec. 203B (a) and (c) of EFAA]

House bill

    Requires that States seeking commodities under this program 
submit a plan of operation and administration every four years 
for approval by the Secretary and allows amendment of the plan 
at any time.
    Requires that, at a minimum, the State receiving 
commodities include in its plan:
            designation of the State agency responsible for 
        distributing commodities;
            the plan of operation and administration to 
        expeditiously distribute commodities in amounts 
        requested by eligible recipient agencies;
            the standards of eligibility for recipient 
        agencies; and
            the individual or household eligibility standards 
        for commodity recipients, which shall require that they 
        be needy, and residing in the geographic location 
        served by the recipient agency.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the House bill.

                           6. advisory board

Present law

    No provision.

House bill

    Requires the Secretary to encourage States to establish 
advisory boards consisting of representatives of all interested 
entities, public and private, in the distribution of 
commodities.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the House bill.

                  7. Cooperative Agreements/Transfers

Present law

    Permits States receiving TEFAP commodities to enter into 
cooperative agreements with agencies of other States to jointly 
provide commodities serving eligible recipients from each State 
in a single area, or to transfer commodities [Sec. 203B(d)]

House bill

    Similar to current law, except adds language specifying 
that the State may advise the Secretary of such agreements and 
transfers. Note: Because the new commodity distribution program 
covers more than TEFAP agencies, this represents a new 
provision for other recipient agencies now receiving 
commodities (e.g. CSFP, charitable institutions).

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                 8. Allocation of Commodities to States

Present law

    Requires Secretary to allocate commodities purchased for 
TEFAP to States in the following proportions:
            60% of the value of commodities available based on 
        each State's proportion of the national total of 
        persons with incomes below the poverty line; and
            40% based on each State's proportion of the 
        national total of the average monthly number of 
        unemployed persons.

House bill

    Similar to current law as relates to allocation of TEFAP 
commodities. CSFP commodities are exempted from the allocation 
method, however, other recipient agencies currently receiving 
commodities under authority other than the EFAA (e.g. 
charitable institutions) are covered by the allocation formula.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                            9. Notification

Present law

    Requires the Secretary to notify each State of the amount 
of commodities it is allotted to receive. Requires each State 
to notify the Secretary promptly if it will not accept 
commodities available to it, and requires the Secretary to 
reallocate and distribute such commodities as he deems 
appropriate and equitable. Further requires the Secretary to 
establish procedures to permit State to decline portions of 
commodity allocations during each fiscal year and to reallocate 
and distribute such commodities, as deemed appropriate and 
equitable. [Sec. 214(g), EFAA]

House bill

    Same as current law, except applies to all eligible 
agencies receiving commodities, not just TEFAP agencies.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                             10. Disasters

Present law

    Permits the Secretary to request that States consider 
assisting other States where substantial number of persons have 
been affected by drought, flood, hurricane or other natural 
disasters by allowing the Secretary to reallocate commodities 
to those States affected by such disasters. [Sec. 214(g), EFAA]

House bill

    Same as current law.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                   11. national commodity processing

Present law

    Requires through FY1995 that the Secretary encourage 
agreements with private companies for reprocessing into end-use 
products those commodities donated at no charge to nutrition 
programs. [Sec. 1114(a)(2)(A) of Agriculture of Food Act of 
1981]

House bill

    No provision.

Senate amendment

    Extends national commodity processing provision through 
FY2002.

Conference agreement

    The Conference agreement follows the Senate amendment.

                        12. purchases and timing

Present law

    Requires that in each fiscal year, the Secretary purchase 
commodities at times and under conditions determined 
appropriate; deliver such commodities at reasonable intervals 
to States (but no later than the end of the fiscal year), based 
on the allocation formula, and entitles each State to the 
additional commodities purchased for TEFAP in amounts based on 
the allocation formula. [Sec. 214(h), EFAA]

House bill

    Similar to current law except for reference to CSFP, 
deletion of language relating to ``additional'' commodities, 
and requirement that commodities be delivered by December 31 of 
the following fiscal year.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

       13. priority system for state distribution of commodities

                   A. Emergency Feeding Organizations

Present law

    Requires States to give priority for commodities to 
emergency feeding organizations if sufficient commodities are 
not available to meet requests of all eligible agencies, and 
encourages States to distribute commodities to rural areas. 
[Sec. 203B(b), EFAA]

House bill

    Requires that in distributing commodities allocated under 
this section for other than CSFP, the State agency offer its 
full allocation of commodities to emergency feeding 
organizations.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                       B. Charitable Institutions

Present law

    No provision.

House bill

    Permits States agencies to distribute commodities that are 
not able to be used by emergency feeding organizations to 
charitable institutions (excluding penal institutions) that do 
not receive commodities as emergency feeding organizations.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                       C. Other Eligible Agencies

Present law

    No provision.

House bill

    Permits the State agency to distribute commodities that are 
not able to be used by emergency feeding organizations or other 
charitable institutions to other eligible recipient agencies 
not receiving commodities under the previous distributions.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                      14. initial processing costs

Present law

    Permits the Secretary to use CCC funds to pay the cost of 
initial processing and packaging of commodities distributed 
under this Act into forms and quantities the Secretary 
determines are suitable for use by individual households or 
institutional use. Permits payment in the form of commodities 
equal in value to the cost, and requires the Secretary to 
ensure that such payments in kind do not displace commercial 
sales. [Sec. 203A, EFAA]

House bill

    Similar to present law, except substitutes term ``eligible 
recipient agencies'' for ``institutional use.''

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                    15. assurances; anticipated use

Present law

    Requires the Secretary to take precautions to assure that 
eligible recipient agencies and persons receiving commodities 
do not diminish their normal expenditures for food because of 
receipt of commodities, and to ensure that commodities made 
available under the Act do not displace commercial sales. 
Prohibits Secretary from donating commodities in a quantity or 
manner that will substitute for agricultural produce that 
otherwise would be purchased in the market. Requires Secretary 
to submit a report to the Congress each year on whether and to 
what extent displacement or substitution is occurring. [Sec. 
203C(a)]

House bill

    Similar to current law but does not refer to individual 
displacement or substitutions or prohibit donation in a 
quantity or manner that might interfere with market sales. Also 
sets December 1997, and at least every two years thereafter as 
the dates for displacement reports.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                               16. waste

Present law

    Requires that the Secretary purchase and distribute 
commodities in quantities that can be consumed without waste, 
and prohibits eligible recipient agencies receiving commodities 
under this Act from receiving commodities in excess of 
anticipated use (based on inventory records and controls), or 
in excess of their ability to accept and store. [Sec. 203C(b)]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                  17. Authorization of Appropriations

Present law

    Authorizes $175 million for FY 1991, $190 million for FY 
1992, and $220 million for each of FY 1993-1995 to purchase, 
process and distribute additional commodities to TEFAP 
agencies. [Sec. 214(e)]

House bill

    Authorizes $260 million annually for each of fiscal years 
1996 through 2000 to purchase, process, and distribute 
commodities to States for distribution to eligible recipient 
agencies, which include charitable institutions and CSFP 
agencies, as well as TEFAP agencies.

Senate amendment

    Extends funding authority for commodity purchases at $220 
million annually through FY 2002.

Conference agreement

    See Item #1 above.

Present law

    Authorizes $50 million for FY 1991-95 for the Secretary to 
make available to States for State and local payments of costs 
associated with the distribution of commodities by eligible 
recipient agencies. Requires Secretary to allocate funds to 
States on advance basis in the same proportion as the 
proportion each State receives of allocated commodities, and 
requires the Secretary to reallocate funds not able to be used 
by a State to other States in an appropriate and equitable 
manner. Permits States to use funds for costs associated with 
the distribution of additional commodities purchased for the 
program and for soup kitchens and food banks. [See 204(a)(1)]

House bill

    Authorizes $40 million annually for each of fiscal years 
1996 through 2000 for payments to States and local agencies 
(except for the CSFP) for the costs associated with 
transporting storing, and handling commodities other than those 
distributed to CSFP agencies. Same as current law with respect 
to allocations and reallocations, and advanced funding. No 
specific reference to soup kitchens and food banks, which are 
included as eligible recipient agencies.

Senate amendment

    Extends authority for administrative funding at $50 million 
annually through FY 2002.

Conference agreement

    The Conference agreement follows the Senate amendment with 
an amendment providing that administrative funds may be used 
for processing, transporting, or distributing commodities other 
than TEFAP commodities.

                   18. Local Administrative Payments

Present law

    Requires each State to make available not less than 40% of 
the funds it receives for administrative costs in each fiscal 
year to pay for, or provide advance payments to eligible 
recipient agencies, for allowable expenses incurred by such 
agencies in distributing commodities to needy persons. Defines 
``allowable expenses'' to include the costs of transporting, 
storing, handling, repackaging and distributing commodities 
after receipt by the eligible recipient agency; costs 
associated with eligibility, verification, and documentation of 
eligibility; costs of providing information to commodity 
recipients on appropriate storage and preparation of 
commodities; and costs of recordkeeping, auditing, and other 
required administrative procedures. [Sec. 204(a)(2), EFAA]

House bill

    Same as current law except also applies to non-TEFAP 
agencies.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                   19. state coverage of local costs

Present law

    Requires that amounts of funding that States use to cover 
the allowable expenses of eligible recipient agencies be 
counted toward the amount a State must make available from 
administrative funding provided under this Act for eligible 
recipient agencies. [Sec. 204(a)(2), EFAA]

House bill

    Same as present law except that it references the CSFP, 
which is excluded from this rule.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                         20. financial reports

Present law

    Requires States receiving funds to submit financial reports 
on a regular basis to the Secretary on the use of such funds 
and prohibits any such funds from being used by States for 
costs other than those used to the distribution of commodities 
by eligible recipient agencies. [Sec. 204(a)(3), EFAA]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                     21. non-federal matching funds

Present law

    Requires that each State receiving administrative funds 
under this subsection provide cash or in-kind contributions 
from non-Federal sources in an amount equal to the amount of 
Federal administrative funds it receives that are not 
distributed to eligible recipient agencies or used to cover the 
expenses of such agencies. Permits States to receive 
administrative funding prior to satisfying the matching 
requirement, based on their estimated contribution, and 
requires the Secretary to periodically reconcile estimated and 
actual contributions to correct for overpayments and 
underpayments. [Sec. 204(a)(4), EFAA]

House bill

    Same as present law, except excludes administrative funds 
distributed for the CSFP from the non-Federal matching 
requirements and rules.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                          22. federal charges

Present law

    Prohibits any charge against the appropriations authorized 
by this section for the value of commodities donated for the 
purposes of this Act, or for the funds used by the CCC for the 
costs of initial processing, packaging, and delivery of program 
commodities to the States. [Sec. 204(b), EFAA]

House bill

    Similar to present law except it applies the prohibition to 
bonus donations of Section 32 and CCC commodities, as well as 
those bought for the program.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

                           23. State Charges

Present law

    Prohibits States from charging for commodities made 
available to eligible recipient agencies and from passing along 
the cost of matching requirements. [Sec. 204(a)(5), EFAA]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    See Item #1 above.

        24. Mandatory Funding for Nutrition Program Commodities

Present law

    For each of fiscal years 1994-1996, requires $230,000 of 
Treasury funds not otherwise appropriated to be provided to the 
Secretary to purchase, process and distribute commodities that 
are low in saturated fats, sodium, and sugar, and a good source 
of calcium, protein, and other nutrients to 2 States, selected 
by the Secretary, to carry out a three year project to improve 
the health of low-income participants of TEFAP. Requires that 
commodities be easy for low-income families to store, use, and 
handle, and include low-sodium peanut butter, low-fat and low 
sodium cheese and canned meats, fruits, and vegetables. Also 
requires that $5000 of the amount provided be given to each of 
the participating States to help with administrative costs. 
[Sec. 13962 of OBRA, 1993]

House bill

    No provision.

 Senate amendment

     Extends this requirement through FY2002.

Conference agreement

    The Conference agreement follows the House bill.

     25. Commodity Supplemental Food Program (CSFP)--Authorization

Present law

     For each of fiscal years 1991--1995, authorizes the 
Secretary to purchase and distribute sufficient agricultural 
commodities with appropriated funds to maintain the traditional 
level of assistance for food programs including the 
supplemental food programs for women, infants, children, and 
the elderly. [Sec. 4(a), Agriculture and Consumer Protection 
Act of 1973]

House bill

    Requires that $94.5 million of the amount appropriated for 
programs under this subtitle for the period FY 1996-2000 be 
used each fiscal year to purchase and distribute commodities to 
supplemental feeding programs for women, infants, and children, 
or elderly individuals participating in the commodity 
supplemental food program.

Senate amendment

    Extends present law authority through FY2002.

Conference agreement

    The Conference agreement follows the Senate amendment.

                    26. CSFP Administrative Funding

Present law

    Requires the Secretary to provide administrative funds to 
State and local agencies administering the CSFP for each of 
fiscal years 1991-1995. Authorizes appropriations in an amount 
equal to not more than 20% of the value of commodities 
purchased for the program. [Sec. 5(a) Agriculture and Consumer 
Protection Act of 1973]
    Defines administrative costs to include expenses for 
information and referral, operation, monitoring, nutrition 
education, start-up costs, and general administration 
(including staff, warehouse, and transportation personnel, 
insurance and administration of the State or local office. 
[Sec. 5(c), Agriculture and Consumer Protection Act of 1973]

House bill

    Requires that not more than 20% of the funds made available 
for commodity purchase and distribution for the CSFP be made 
available to States for the State and local payments of costs 
associated with the distribution of commodities by CSFP 
agencies.

Senate amendment

    Extends present law authority through FY2002.

Conference agreement

    The Conference agreement follows the Senate amendment.

           27. CSFP--Commodity Purchases and Advance Warning

Present law

    Permits the Secretary to determine the types, varieties, 
and amounts of commodities purchased for the CSFP, but requires 
the Secretary to report to the House and Senate Agriculture 
Committees plans for significant changes from commodities 
available or planned at the beginning of the fiscal year before 
implementing such changes.

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                     28. Cheese and Nonfat Dry Milk

Present law

    In each of fiscal years 1991-1995, the CCC is required to 
provide at least 9 million pounds of cheese and 4 million 
pounds of nonfat dry milk (to the extent inventory levels 
permit), for the Secretary to use, before the end of each 
fiscal year, to carry out the CSFP. [Sec. 5(d)(2), Agriculture 
and Consumer Protection Act of 1973]

House bill

    Implements this present law provision for fiscal years 
1996-2000, otherwise it is exactly the same as present law.

Senate amendment

    Extends present law provision through FY2002.

Conference agreement

    The Conference agreement follows the Senate amendment.

                       29. Additional CSFP Sites

Present law

    Requires the Secretary to approve additional sites each 
fiscal year, including sites serving the elderly, in areas 
where the program does not operate to the full extent that 
applications can be approved within the funding available, and 
without reducing participation levels (including the elderly) 
in areas where the program is in effect. [Sec. 5(f), 
Agriculture and Consumer Protection Act of 1973]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                       30. Additional Recipients

Present law

    Permits a local agency to serve low-income elderly persons, 
with the approval of the Secretary, if it determines that the 
amount of assistance it receives is more than is needed to 
provide assistance to women, infants and children. [Sec. 5(g), 
Agriculture and Consumer Protection Act of 1973]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                     31. commodity price increases

Present law

    Requires the Secretary to determine the decline in the 
number of persons able to be served by the CSFP if the price of 
one or more commodities purchased for the program is 
significantly higher than expected; to promptly notify State 
agencies operating programs of the decline; and ensure that 
State agencies notify local agencies of the decline. [Sec. 
5(j)(1) and (2), Agriculture and Consumer Protection Act of 
1973]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

       32. affect of csfp commodities on other recipient agencies

Present law

    No provision.

House bill

    Stipulates that commodities distributed to CSFP agencies 
under this section not be considered when determining commodity 
allocations to States for other eligible recipient agencies 
receiving commodities under this Act, or in following the 
priority for distribution of commodities to such agencies.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                       33. commodities not income

Present law

    Specifies that commodities distributed under this Act not 
be considered income or resources for any purposes under 
Federal, State, or local law. [Sec. 206, EFAA]

House bill

    Similar to present law, but narrower. Specifies that 
receipt of commodities cannot be considered in ``determining 
eligibility for any Federal, State, or local ``means-tested 
program,'' instead of the broader ``any purposes'' outlined in 
present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                    34. prohibition on state charges

Present law

    Prohibits States from charging eligible recipient agencies 
any amount that exceeds the difference between the State's 
direct costs of storing and transporting commodities to 
recipient agencies and the amount of funds provided for this 
purpose by the Secretary. [Sec. 208, EFAA]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                            35. Definitions

            A. Average Monthly Number of Unemployed Persons

Present law

    The average monthly number of unemployed persons within a 
State in the most recent fiscal year for which information is 
available, as determined by the Bureau of Labor Statistics of 
the Department of Labor. [Sec. 2143(b), EFAA]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the House bill with an 
amendment providing that all definitions included in the TEFAP 
and soup kitchen/food bank program will be included in the 
revised TEFAP.

                           B. Elderly Persons

Present law

    No provision.

House bill

    Defines ``elderly persons'' to mean persons 60 years or 
older.

Senate amendment

    No provision.

Conference agreement

    See Item 35A above.

    C. Eligible Recipient Agencies; Emergency Feeding Organizations

Present law

    Combines definition of ``eligible recipient agencies'' and 
``emergency feeding organizations, as follows: ``Eligible 
recipient agency'' means public or non-profit organizations 
that administer activities or projects providing nutrition 
assistance to relieve situations of emergency and distress 
through the provision of food to needy persons (including those 
in charitable institutions, food banks, hunger centers, soup 
kitchens, and similar non-profit recipient agencies 
(hereinafter referred to as ``emergency feeding 
organizations''); and school lunch, summer camps, and child 
nutrition meal service, elderly feeding programs, CSFP, 
charitable institutions for the needy, and disaster relief. 
[Sec. 201A, EFAA]

House bill

    Similar to present law, but separates into two separate 
definitions, as follows: Defines ``eligible recipient agency'' 
to mean a public or non-profit organization that administers:
            An institution operating a CSFP;
            An emergency feeding organization (EFO);
            A charitable institution (including a hospital and 
        a retirement home, but excluding a penal institution) 
        serving need persons;
            A summer camp for children or a child nutrition 
        food service program;
            An elderly feeding program; or
            A disaster relief program.
    Defines ``emergency feeding organization'' to mean public 
or private organizations that administer activities and 
projects (including charitable institutions, food banks and 
pantries, hunger relief centers, soup kitchens, or similar non-
profit eligible agencies) providing nutrition assistance to 
relieve situations of emergency and distress by providing food 
to needy persons, including low-income and unemployed persons.

Senate amendment

    No provision.

Conference agreement

    See Item 35A above.

                              D. Food Bank

Present law

    The term ``food bank'' means a public and charitable 
institution that maintains an established operation providing 
food to food pantries, soup kitchens, hunger relief centers, or 
other feeding centers that provide meals or food to feed needy 
persons on a regular basis as an integral part of their normal 
activity. [Sec. 110, Hunger Prevention Act of 1988]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    See Item 35A above.

                             E. Food Pantry

Present law

    Defines ``food pantry'' to mean a public or private 
nonprofit organization distributing food (including other than 
USDA food) to low-income and unemployed households to relieve 
situations of emergency and distress. [Sec. 110, Hunger 
Prevention Act of 1988]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    See Item 35A above.

                            F. Needy Persons

Present law

    No provision.

House bill

    Defines ``needy persons'' to mean individuals who have low 
incomes or are unemployed as determined by the State, as long 
as this is not higher than 185% of the poverty line; households 
certified as food stamp participants or individuals 
participating in other Federally-supported means-tested 
programs.

Senate amendment

    No provision.

Conference agreement

    See Item 35A above.

                            G. Poverty Line

Present law

    The term ``poverty line'' is the same as the term used in 
Section 673(2) of the Community Services Block Grant Act (42 
U.S.C. 9902(2)). [Sec. 110, Hunger Prevention Act]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    See Item 35A above.

                            H. Soup Kitchen

Present law

    The term ``soup kitchen'' means a public and charitable 
institution that, as an integral part of its normal activities, 
maintains an established feeding operation for needy homeless 
persons on a regular basis. [Sec. 110, Hunger Prevention Act]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    See Item 35A above.

                            36. Regulations

Present law

    Requires the Secretary to issue regulations within 30 days 
to implement this subtitle; to minimize to the extent 
practicable the regulatory, recordkeeping and paperwork 
requirements imposed on eligible recipient agencies, to publish 
in the Federal Register as early as feasible, but not later 
than the beginning of each fiscal year, an estimate of the 
types and quantitites of commodities anticipated to be 
available; and to include in regulations provisions that set 
standards relating to liability for commodity losses when there 
is no evidence of negligence or fraud, and establish conditions 
for payment to cover such losses, taking into account the 
special needs and circumstances of the recipient agencies. 
[Sec. 210, EFAA]

House bill

    Similar to present law except provides 120 days for 
Secretary to issue regulations and includes reference to ``non-
binding'' nature of Secretary's estimates of donations.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                     37. Finality of Determinations

Present law

    Specifies that determinations made by the Secretary 
concerning the types and quantities of commodities donated 
under this subtitle, when in conformance with applicable 
regulations, be final and conclusive and not reviewable by any 
other officer or agency of the Government. [Sec. 211, EFAA]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                 38. Prohibition on Sale of Commodities

Present law

    Prohibits the sale or disposal of commodities in commercial 
channels in any form, except as permitted under Section 517 for 
in-kind payment of initial processing costs by the CCC. [Sec. 
205(b), EFAA]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                        39. Settlement of Claims

Present law

    Gives the Secretary or designee authority to determine the 
amount of, settle and adjust any claim arising under this 
subtitle, and waive any claim when the Secretary determines it 
will serve the purposes of this Act. Specifies that nothing in 
this Act diminishes the authority of the Attorney General to 
conduct litigation on behalf of the United States. [Sec. 215, 
EFAA]

House bill

    Same as present law.

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment.

                      40. Repealers and Amendments

Present law

    No provision.

House bill

    Repeals the Emergency Food Assistance Act of 1983.
    In the Hunger Prevention Act of 1988, strikes Section 110 
(soup kitchens and food banks); Subtitle C of Title II (Food 
processing and distribution); and Section 502 (food bank 
demonstration project).
    Stikes Section 4 of the Commodity Distribution Reform Act 
of 1987 (Food bank demonstration).
    Strikes Section 3 of the Charitable Assistance and Food 
Bank Act of 1987.
    Amends the Food Security At of 1985 by striking Section 
1571, and striking Section 4 of the Agriculture and Consumer 
Protection Act (CSFP) and inserting Section 110 of the 
Commodity Distribution Act of 1995.
    In the Agriculture and Consumer Protection Act of 1973: In 
Section 4(a) strikes ``institutions (including hospitals and 
facilities caring for needy infants and children) supplemental 
feeding programs serving women, infants, and children, and 
elderly, or both, wherever located, disaster areas, summer 
camps for children'' and inserting ``disaster areas;'' In 
subsection 4(c) strikes ``the Emergency Food Assistance Act of 
1983'' and inserts ``The Commodity Distribution Act of 1995''; 
and strikes Section 5.
    In the Food Agriculture, Conservation, and Trade Act of 
1990, strikes Section 1773(f).

Senate amendment

    No provision.

Conference agreement

    The Conference agreement follows the Senate amendment with 
an amendment repealing section 110 (soup kitchens and food 
banks), subtitle C of title III (food processing and 
distribution), and section 502 (food bank demonstration 
project) of the Hunger Prevention Act of 1988, and section 3 
(food bank demonstration) of the Charitable Institution and 
Food Bank Act of 1987.

                        Title XI. Miscellaneous

1. expenditure of federal funds in accordance with laws and procedures 
  applicable to expenditure of states funds (subtitle a--section 1101)

Present law

    According to the National Conference of State Legislatures, 
there currently are six States in which Federal funds go to the 
Governor rather than the State legislature. Those States are 
Arizona, Colorado, Connecticut, Delaware, New Mexico, and 
Oklahoma.

House bill

    No provision.

Senate amendment

    Stipulates that funds from certain Federal block grants to 
the States are to be expended in accordance with the laws and 
procedures applicable to the expenditure of the State's own 
resources, (i.e., appropriated through the State legislature in 
all States). This provision applies to the following block 
grants: temporary assistance to needy families block grant 
under title I, the optional State food assistance block grant 
under title III, and the child care block grant under title VI 
of the Senate amendment. Thus, in the States in which the 
Governor previously had control over Federal funds, the State 
legislatures now would share control according to State laws 
regarding State expenditures.

Conference agreement

    The conference agreement follows the Senate amendment.

 2. elimination of housing assistance with respect to fugitive felons 
     and probation and parole violators (subtitle a--section 1102)

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Ends eligibility for public housing and Section 8 housing 
assistance of a person who is fleeing to avoid prosecution 
after conviction for a crime, or attempt to commit a crime, 
that is a felony where committed (or, in the case of New 
Jersey, is a high misdemeanor), or who is violating a condition 
of probation or parole. The amendment states that the person's 
flight shall be cause for immediate termination of their 
housing aid.
    Requires specified public housing agencies to furnish any 
Federal, State, or local law enforcement officer, upon the 
request of the officer, with the current address, social 
security number, and photograph (if applicable) of any SSI 
recipient, if the officer furnishes the public housing agency 
with the person's name and notifies the agency that the 
recipient is a fugitive felon (or in the case of New Jersey a 
person fleeing because of a high misdemeanor) or a probation or 
parole violator or that the person has information that is 
necessary for the officer to conduct his official duties, and 
the location or apprehension of the recipient is within the 
officer's official duties.

Conference agreement

    The conference agreement follows the Senate amendment.

3. sense of the senate regarding enterprise zones (subtitle a--section 
                                 1103)

Present law

    No specific provision. However, as stated, the provisions 
outlined in the Sense of the Senate language already can be 
done under present law.

House bill

    No provision.

Senate amendment

    Outlines findings related to urban centers and empowerment 
zones and includes sense of the Senate language that urges the 
104th Congress to pass an enterprise zone bill that provides 
Federal tax incentives to increase the formation and expansion 
of small businesses and to promote commercial revitalization; 
allows localities to request waivers to accomplish the 
objectives of the enterprise zones; encourages resident 
management of public housing and home ownership of public 
housing; and authorizes pilot projects in designated enterprise 
zones to expand the educational opportunities for elementary 
and secondary school children.

Conference agreement

    The conference agreement follows the senate amendment.

  4. sense of the senate regarding the inability of the non-custodial 
         parent to pay child support (subtitle a--section 1104)

Present law

    No provision.

House bill

    No provision.

Senate amendment

    It is the sense of the Senate that States should pursue 
child support payments under all circumstances even if the 
noncustodial parent is unemployed or his or her whereabouts are 
unknown; and that States are encouraged to pursue pilot 
programs in which the parent of a minor non-custodial parent 
who refuses or is unable to pay child support contribute to the 
child support owed.

Conference agreement

    The conference agreement follows the Senate amendment.

          5. food stamp eligibility (subtitle a--section 1105)

Present law

    For purposes of determining eligibility and benefits under 
the Food Stamp program, the income--less a pro rata share--and 
financial resources of an ineligible alien are included in the 
income and resources of the household of which the alien is a 
member. [Sec. 6(f) of the Food Stamp Act]

House bill

    No provision.

Senate amendment

    Permits States to include all of an ineligible alien's 
income and resource in the income and resources of the 
household of which the alien is a member. (Note: This provision 
applies only to those aliens made ineligible under present food 
stamp law, not to those who might be made ineligible for food 
stamps under new provisions in Senate amendment.)

Conference agreement

    The conference agreement follows the Senate amendment.

   6. sense of the senate on legislative accountability for unfunded 
                 mandates in welfare reform legislation

Present law

    P.L. 104-4, the Unfunded Mandates Reform Act of 1995, 
enacted March 22, 1995, responds to the concern of many State 
and local officials regarding costs placed upon them by 
``unfunded mandates.'' The Act addresses this issue by 
requiring the Congressional Budget Office (CBO) to estimate the 
costs to State, local, and tribal governments and the private 
sector of unfunded intergovernmental mandates that exceed a 
specified amount and to make the information available to the 
Congress before a final vote on a given piece of legislation is 
taken.

House bill

    No provision.

Senate amendment

    Includes the ``purposes'' section of P.L. 104-4 as findings 
and states that it is the Sense of the Senate that before the 
Senate acts on the conference agreement on H.R. 4 (or any other 
welfare reform legislation), CBO include in its 7-year 
estimates the costs to States of meeting all work requirements 
(and other requirements) in the conference agreement, including 
those for single-parent families, two-parent families, and 
those who have received cash assistance for 2 years; the 
resources available to the State to meet these work 
requirements and what States are projected to spend under 
current welfare law; and the amount of additional revenue 
needed by the States to meet the work requirements. In 
addition, the Senate would like CBO to estimate how many States 
would pay a penalty rather than raise the additional revenue 
needed to comply with the specified work requirements.

Conference agreement

    The conference agreement follows the House bill (no 
provision).

7. sense of the senate regarding competitive bidding for infant formula

Present law

    Under the Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC), States must carry out cost 
containment measures in procuring infant formula (and, where 
practicable, other foods). Cost containment must be by 
competitive bidding or another method that yields equal or 
greater savings. Any cost savings may be used by the State for 
WIC program purposes. [Sec. 17(b) and (h) of the Child 
Nutrition Act]

House bill

    With respect to assistance provided to women, infants, and 
young children under the Family Nutrition Block Grant, States 
are required to establish and carry out a cost containment 
system for procuring infant formula. States must use cost 
containment savings for any of the activities supported under 
the Family Nutrition Block Grant and must report on their 
system and the estimated cost savings compared to the previous 
year.

Senate amendment

    Includes findings on the success of the WIC program in: 
improving the health status of women, infants, and children, 
saving Medicaid expenditures, and establishing the importance 
of infant formula manufacture rebates in helping to fund the 
WIC program. The amendment states that it is the sense of the 
Senate that any legislation enacted by Congress must not 
eliminate or in any way weaken present competitive bidding 
requirements for the purchase of infant formula supported with 
Federal funds.

Cjonference agreement

    The conference agreement is to drop the provision on 
competitive bidding for infant formula.

8. establishing national goals to prevent teenage pregnancies (subtitle 
                            a--section 1106)

                                A. Goals

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Requires the Secretary of HHS to establish and implement by 
January 1, 1997, a strategy for:
            (1) preventing an additional 2 percent of out-of-
        wedlock teenage pregnancies a year; and
            (2) assuring that at least 25 percent of U.S. 
        communities have teenage pregnancy programs in place.
    HHS is required to report to Congress by June 30, 1998, on 
progress made toward meeting these 2 goals.

Conference agreement

    The conference agreement follows the Senate amendment, but 
eliminates the reference to ``an additional 2 percent'' in (1).

                         B. Prevention Programs

Present law

    The Social Services block grant (SSBG) (sec. 2002 of SSA, 
42 USC 1397a) entitles States to an allotment for services not 
limited to, but including: child day care; protective services 
for children and adults; services for children and adults in 
foster care; home management services; adult day care; 
transportation; family planning services; training and related 
services; employment services; information, referral and 
counseling; meal preparation and delivery; health support 
services; and, combinations of services to meet the special 
needs of children, the aged, the mentally retarded, the blind, 
the emotionally disturbed, the physically handicapped, 
alcoholics, and drug addicts. Also, Title XX of the Public 
Health Service Act establishes the Adolescent Family Life (AFL) 
program to encourage adolescents to delay sexual activity and 
to provide services to alleviate the problems surrounding 
adolescent parenthood. One-third of all funding for AFL program 
services go to projects that provide ``prevention services.'' 
The purpose of the prevention component is to find effective 
means within the context of the family of reaching adolescents, 
both male and female, before they become sexually active to 
maximize the guidance and support of parents and other family 
members in promoting abstinence from adolescent premarital 
sexual relations. (The FY 1995 appropriation for AFL was $6.7 
million.)

House bill

    No provision.

Senate amendment

    Amends the Social Services block grant (SSBG) (sec. 2002 of 
the Social Security Act) to require the Secretary to conduct a 
study of the relative effectiveness of different State programs 
to prevent out-of-wedlock and teenage pregnancies and to 
require States conducting programs under this provision to 
provide data required by the Secretary to evaluate these 
programs.

Conference agreement

    The conference agreement follows the House bill (no 
provision).

  9. sense of the senate regarding enforcement of statutory rape laws 
                       (subtitle a--section 1107)

Present law

    No provision.

House bill

    No provision.

Senate amendment

    Includes Sense of the Senate that States and local 
jurisdictions should aggressively enforce statutory rape laws.

Conference agreement

    The conference agreement follows the Senate amendment.

    10. Sanctioning for Testing Positive for Controlled Substances 
                       (Subtitle A--Section 1108)

Present law

    Eligibility and benefit status for most of the Federal 
welfare programs are not affected by a recipient's use of 
illegal drugs. Even under the SSI program, as long as a 
recipient who is classified as a drug addict or alcoholic 
participates in an approved treatment plan when so directed and 
allows his or her treatment to be monitored, he or she is in 
compliance with the SSI rules, and in most cases the SSI 
benefit would continue without interruption.

House bill

    No provision.

Senate amendment

    Stipulates that States shall not be prohibited by the 
Federal Government from sanctioning welfare recipients who test 
positive for use of controlled substances.

Conference agreement

    The conference agreement follows the Senate amendment.

          11. Abstinence Education (Subtitle A--Section 1109)

Present law

    The Maternal and Child Health (MCH) block grants (title V 
of the SSA, 42 U.S.C. 701) provides grants to States and 
insular areas to fund a broad range of preventive health and 
primary care activities to improve the health status of mothers 
and children, with a special emphasis on those with low income 
or with limited availability of health services. Sec. 502 
includes a set-aside program for projects of national or 
regional significance. (The FY 1995 appropriation for MCH was 
$684 million.) See also: Title XX of the Public Health Service 
Act establishes the Adolescent Family Life (AFL) program to 
encourage adolescents to delay sexual activity and to provide 
services to alleviate the problems surrounding adolescent 
parenthood. One-third of all funding for AFL program services 
goes to projects that provide ``prevention services.'' The 
purpose of the prevention component is to find effective means 
within the context of the family of reaching adolescents, both 
male and female, before they become sexually active to maximize 
the guidance and support of parents and other family members in 
promoting abstinence from adolescent premarital sexual 
relations. (The FY 1995 appropriation for AFL was $6.7 
million.)

House bill

    No provision.

Senate amendment

    Amends the Maternal and Child Health (MCH) block grants 
(title V of the SSA) to set aside $75 million to provide 
abstinence education--defined as an educational or motivational 
program that has abstaining from sexual activity as its 
exclusive purpose--and to provide at the option of the State 
mentoring, counseling and adult supervision to promote 
abstinence with a focus on those groups most likely to bear 
children out-of-wedlock. Also increases the authorization level 
of MCH to $761 million.

Conference agreement

    The conference agreement follows the Senate amendment.

    12. Provisions to Encourage Electronic Benefit Transfer Systems 
                       (Subtitle A--Section 1110)

Present law

    In 1978, Congress passed the Electronic Fund Transfer Act 
to provide a basic framework establishing the rights, 
liabilities, and responsibilities of participants in electronic 
fund transfer systems and required the Federal Reserve Board to 
develop implementing regulations, which generally are referred 
to as Regulation E.

House bill

    The House bill exempts from Regulation E requirements any 
electronic benefit transfer program (distributing needs-tested 
benefits) established under State or local law or administered 
by a State or local government.

Senate amendment

    See Sec. 320 in Senate amendment, which exempts from 
Regulation E any food stamp electronic benefit transfers.

Conference agreement

    The conference agreement follows the House bill.

       13. Social Services Block Grant (Subtitle A--Section 1111)

Present law

    The Social Services Block Grant (Title XX) provides funds 
to States in order to provide a wide variety of social 
services, including:
    (1) Child care;
    (2) Family planning;
    (3) Protective services for children and adults;
    (4) Services for children and adults on foster care; and
    (5) Employment services.
    States have wide discretion over how they use Social 
Services Block Grant funds. States set their own eligibility 
requirements and are allowed to transfer up to 10 percent of 
their allotment to certain Federal health block grants, and for 
low-income home energy assistance (LIHEAP).
    States can also use their block grant funds for staff 
training in the field of social services. This includes 
training at workshops, conferences, seminars, and educational 
institutions.
    Funding for the Social Services Block Grant is capped at 
$2.8 billion a year. Funds are allocated among States according 
to the State's share of its total population. No State matching 
funds are required to receive Social services Block Grant 
money.

House bill

    No provision.

Senate amendment

    Beginning in FY 1997, the Social Services Block Grant will 
be reduced by 20 percent.

Conference agreement

    The House recedes to the Senate amendment, with the 
modification that the Social Services Block Grant will be 
reduced by only 10 percent.
                                   Bill Archer,
                                   Bill Goodling,
                                   Pat Roberts,
                                   E. Clay Shaw, Jr.,
                                   James Talent,
                                   Jim Nussle,
                                   Tim Hutchinson,
                                   Jim McCrery,
                                   Lamar Smith,
                                   Nancy L. Johnson,
                                   Dave Camp,
                                   Gary A. Franks,
                As an additional conferee:
                                   Bill Emerson,
                As an additional conferee:
                                   Randy ``Duke'' Cunningham,
                                 Managers on the Part of the House.

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

                                
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