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Work Opportunity Act of 1995

Introduced Jan 4, 1995 ยท Last action Jan 22, 1996 โ€” On motion to refer the bill and the accompanying veto message to the Committee on Ways and Means. Agreed to without objection.

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Summary

This legislation is called the Work Opportunity Act of 1995. On motion to refer the bill and the accompanying veto message to the Committee on Ways and Means. Agreed to without objection.

Full bill text

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                 H. R. 4

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

     Mr. Shaw, Mr. Talent, and Mr. LaTourette (for themselves, Mr.
  Hutchinson, Mr. Hostettler, Mr. Jones, Mr. Tiahrt, Mrs. Myrick, Mr.
   Ensign, Mrs. Cubin, Mr. Kingston, Mr. Hastings of Washington, Mr.
  Ganske, Mr. Ewing, Mr. Weldon of Florida, Mr. Coburn, Mr. Lewis of
   Kentucky, Mr. Bunning of Kentucky, Mr. Foley, Mr. Inglis of South
   Carolina, Mr. Lightfoot, Mr. Istook, Mr. Calvert, Mr. Hobson, Mr.
 Cremeans, Mr. Knollenberg, Mr. Bilirakis, Mr. Hayworth, Mr. Fox, Mr.
   Radanovich, Mr. Roth, Mr. Wamp, Mr. Goodling, Mr. Gilchrest, Mr.
    Solomon, Mr. Bliley, Mr. Doolittle, Mr. Packard, Mr. Stump, Mr.
 Everett, Mr. Gilman, Mr. Miller of Florida, Mr. Dornan, Mr. Hastert,
Mr. Cunningham, Mr. Forbes, Mr. Linder, Mr. Blute, Mr. Rohrabacher, Mr.
Cooley, Mr. Smith of Texas, Mr. Clinger, Mr. Bachus, Mr. Ballenger, Mr.
 Callahan, Mr. English of Pennsylvania, Mr. Saxton, Mr. Chrysler, Mr.
Camp, Mr. Hancock, Mr. Nussle, Mr. Greenwood, Mr. Bartlett of Maryland,
 Mr. Taylor of North Carolina, Mr. McCrery, Mr. Largent, Mr. Baker of
Louisiana, Mr. Collins of Georgia, Mr. Archer, Mr. Thomas, Mr. Herger,
   Mr. Sam Johnson of Texas, Mr. Stearns, Mr. Stockman, Mr. Smith of
Michigan, Mr. Baker of California, Mrs. Roukema, Mr. Sensenbrenner, Mr.
 Heineman, Mrs. Fowler, Mr. Royce, Mr. Flanagan, Mr. Burr, Mr. Latham,
Ms. Molinari, Mr. Gunderson, Mr. Riggs, Mr. Thornberry, Mr. Allard, Mr.
  Christensen, Mr. Goodlatte, Mr. Hilleary, Mr. Wicker, Mr. Bono, Mr.
Frisa, Mr. Shadegg, Mr. Canady, Mr. McCollum, Mr. Barton of Texas, Mr.
Barr, Mr. Armey, Mr. Horn, Ms. Dunn of Washington, Mr. Tate, Mr. Mica,
Mr. Crapo, Mr. Paxon, Mr. Young of Florida, Mr. Weldon of Pennsylvania,
Mr. Combest, Mr. Coble, and Mr. Ehrlich) introduced the following bill;
                     which was referred as follows:
Title I, referred to the Committee on Ways and Means and, in addition,
to the Committee on Banking and Financial Services, for a period to be
subsequently determined by the Speaker, in each case for consideration
  of such provisions as fall within the jurisdiction of the committee
                               concerned
Title II, referred to the Committee on Ways and Means and, in addition,
   to the Committee on Economic and Educational Opportunities, for a
 period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
                          committee concerned
    Title III, referred to the Committee on Ways and Means and, in
addition, to the Committees on Banking and Financial Services, Economic
 and Educational Opportunities, the Budget, and Rules, for a period to
      be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
                          committee concerned
Title IV, referred to the Committee on Ways and Means and, in addition,
to the Committees on Banking and Financial Services, Commerce, Economic
 and Educational Opportunities, the Judiciary, and Agriculture, for a
 period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
                          committee concerned
Title V, referred to the Committee on Agriculture and, in addition, to
   the Committees on Economic and Educational Opportunities and the
 Judiciary, for a period to be subsequently determined by the Speaker,
 in each case for consideration of such provisions as fall within the
                jurisdiction of the committee concerned
       Title VI-VII, referred to the Committee on Ways and Means
    Title VIII, referred to the Committee on Ways and Means and, in
   addition, to the Committees on Agriculture, Budget, Economic and
 Educational Opportunities, Banking and Financial Services, Commerce,
Agriculture, the Judiciary, and Rules, for a period to be subsequently
   determined by the Speaker, in each case for consideration of such
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

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

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                     TITLE I--REDUCING ILLEGITIMACY

Sec. 100. Sense of the Congress.
Sec. 101. Reduction or denial of AFDC for certain children whose
                            paternity is not established.
Sec. 102. Teens receiving AFDC required to live at home.
Sec. 103. Earlier paternity establishment efforts by States.
Sec. 104. Increase in paternity establishment percentage.
Sec. 105. Denial of AFDC for certain children born out-of-wedlock.
Sec. 106. Denial of AFDC for additional children.
Sec. 107. State option to deny AFDC benefits to children born out-of-
                            wedlock to individuals aged 18, 19, or 20,
                            and to deny such benefits and housing
                            benefits to such individuals.
Sec. 108. Grants to States for assistance to children born out-of-
                            wedlock.
Sec. 109. Removal of barriers to interethnic adoption.
                        TITLE II--REQUIRING WORK

Sec. 201. Findings; intent; statement of purpose.
Sec. 202. Work program.
Sec. 203. Work supplementation program amendments.
Sec. 204. Payments to States for certain individuals receiving food
                            assistance from the State who perform work
                            on behalf of the State.
      TITLE III--CAPPING THE AGGREGATE GROWTH OF WELFARE SPENDING

Sec. 301. Cap on growth of Federal spending on certain welfare
                            programs.
Sec. 302. Conversion of funding under certain welfare programs.
Sec. 303. Savings from welfare spending limits to be used for deficit
                            reduction.
                TITLE IV--RESTRICTING WELFARE FOR ALIENS

Sec. 401. Ineligibility of aliens for public welfare assistance.
Sec. 402. State AFDC agencies required to provide information on
                            illegal aliens to the Immigration and
                            Naturalization Service.
            TITLE V--CONSOLIDATING FOOD ASSISTANCE PROGRAMS

Sec. 501. Food assistance block grant program.
Sec. 502. Availability of Federal coupon system to States.
Sec. 503. Authority to sell Federal surplus commodities.
Sec. 504. Definitions.
Sec. 505. Repealers; amendments.
Sec. 506. Effective date; application of repealers and amendments.
          TITLE VI--EXPANDING STATUTORY FLEXIBILITY OF STATES

Sec. 601. Option to convert AFDC into a block grant program.
Sec. 602. Option to treat new residents of a State under rules of
                            former State.
Sec. 603. Option to impose penalty for failure to attend school.
Sec. 604. Option to provide married couple transition benefit.
Sec. 605. Option to disregard income and resources designated for
                            education, training, and employability, or
                            related to self-employment.
Sec. 606. Option to require attendance at parenting and money
                            management classes, and prior approval of
                            any action that would result in a change of
                            school for a dependent child.
             TITLE VII--DRUG TESTING FOR WELFARE RECIPIENTS

Sec. 701. AFDC recipients required to undergo necessary substance abuse
                            treatment as a condition of receiving AFDC.
                       TITLE VIII--EFFECTIVE DATE

Sec. 801. Effective date.

                     TITLE I--REDUCING ILLEGITIMACY

SEC. 100. SENSE OF THE CONGRESS.

    It is the sense of the Congress that--
            (1) marriage is the foundation of a successful society;
            (2) marriage is an essential social institution which
        promotes the interests of children and society at large;
            (3) the negative consequences of an out-of-wedlock birth on
        the child, the mother, and society are well documented as
        follows:
                    (A) the illegitimacy rate among black Americans was
                26 percent in 1965, but today the rate is 68 percent
                and climbing;
                    (B) the illegitimacy rate among white Americans has
                risen tenfold, from 2.29 percent in 1960 to 22 percent
                today;
                    (C) the total of all out-of-wedlock births between
                1970 and 1991 has risen from 10 percent to 30 percent
                and if the current trend continues, 50 percent of all
                births by the year 2015 will be out-of-wedlock;
                    (D) \3/4\ of illegitimate births among whites are
                to women with a high school education or less;
                    (E) the 1-parent family is 6 times more likely to
                be poor than the 2-parent family;
                    (F) children born into families receiving welfare
                assistance are 3 times more likely than children not
                born into families receiving welfare to be on welfare
                when they reach adulthood;
                    (G) teenage single parent mothering is the single
                biggest contributor to low birth weight babies;
                    (H) children born out-of-wedlock are more likely to
                experience low verbal cognitive attainment, child
                abuse, and neglect;
                    (I) young people from single parent or stepparent
                families are 2 to 3 times more likely to have emotional
                or behavioral problems than those from intact families;
                    (J) young white women who were raised in a single
                parent family are more than twice as likely to have
                children out-of-wedlock and to become parents as
                teenagers, and almost twice as likely to have their
                marriages end in divorce, as are children from 2-parent
                families;
                    (K) the younger the single parent mother, the less
                likely she is to finish high school;
                    (L) young women who have children before finishing
                high school are more likely to receive welfare
                assistance for a longer period of time;
                    (M) 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;
                    (N) the absence of a father in the life of a child
                has a negative effect on school performance and peer
                adjustment;
                    (O) the likelihood that a young black man will
                engage in criminal activities doubles if he is raised
                without a father and triples if he lives in a
                neighborhood with a high concentration of single parent
                families; and
                    (P) the greater the incidence of single parent
                families in a neighborhood, the higher the incidence of
                violent crime and burglary; and
            (4) in light of this demonstration of the crisis in our
        Nation, the reduction of out-of-wedlock births is an important
        government interest and the policy contained in provisions of
        this title address the crisis.

SEC. 101. REDUCTION OR DENIAL OF AFDC FOR CERTAIN CHILDREN WHOSE
              PATERNITY IS NOT ESTABLISHED.

    (a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (44);
            (2) by striking the period at the end of paragraph (45) and
        inserting ``; and''; and
            (3) by inserting after paragraph (45) the following:
            ``(46) provide that--
                    ``(A) except as provided in subparagraph (B), aid
                under the State plan shall not be payable, to a family
                on whose behalf an application for such aid is made
                after the effective date of this paragraph, with
                respect to a dependent child whose paternity has not
                been established, unless--
                            ``(i) the child was conceived as a result
                        of rape or incest; or
                            ``(ii) the State determines that efforts to
                        establish such paternity would result in
                        physical danger to the child or the relative
                        claiming such aid;
                    ``(B) if the paternity of a dependent child has not
                been established, the relative claiming such aid
                alleges that any of not more than 3 named individuals
                may be the biological father of the child and provides
                the address of each of the named individuals (or, if
                the relative is not aware of the address of such a
                named individual, the address of the immediate
                relatives of the named individual), and the State has
                not disproved the allegation, then aid under the State
                plan may not be denied to the family by reason of
                subparagraph (A), but the needs of the dependent child
                shall be disregarded in determining the amount of such
                aid;
                    ``(C) the relative claiming such aid shall have the
                burden of proving any allegation of paternity of a
                dependent child by an individual who is deceased, in
                accordance with procedures established by the State in
                consultation with the Secretary; and
                    ``(D) if the amount of aid payable to a family
                under the State plan is reduced by reason of this
                paragraph, each member of the family shall be
                considered to be receiving such aid for purposes of
                eligibility for medical assistance under the State plan
                approved under title XIX for so long as such aid would
                otherwise not be so reduced.''.
    (b) No Effect on Eligibility for Foster Care Maintenance
Payments.--Section 472(a)(4)(B) of such Act (42 U.S.C. 672(a)(4)(B)) is
amended--
            (1) in clause (i), by inserting ``and section 402(a)(46)
        were not applied to the child'' before the comma; and
            (2) in clause (ii), by inserting ``, section 402(a)(46)
        were not applied to the child,'' before ``and application''.
    (c) No Effect on Eligibility for Adoption Assistance Payments.--
Section 473(a)(2)(B)(ii) of such Act (42 U.S.C. 673(a)(2)(B)(ii)) is
amended--
            (1) in subclause (I), by inserting ``and section 402(a)(46)
        were not applied to the child'' before the comma; and
            (2) in subclause (II), by inserting ``, section 402(a)(46)
        were not applied to the child,'' before ``and application''.

SEC. 102. TEENS RECEIVING AFDC REQUIRED TO LIVE AT HOME.

    Section 402(a)(43) of the Social Security Act (42 U.S.C.
602(a)(43)) is amended--
            (1) by striking ``at the option of the State,''; and
            (2) by striking ``18'' and inserting ``19''.

SEC. 103. EARLIER PATERNITY ESTABLISHMENT EFFORTS BY STATES.

    (a) In General.--Section 466(a)(5)(C) of the Social Security Act
(42 U.S.C. 666(a)(5)(C)) is amended by redesignating clauses (i) and
(ii) as clauses (ii) and (iii) and by inserting before clause (ii) (as
so redesignated) the following: ``(i) a requirement that, as soon as an
officer or employee of the State becomes aware, in the performance of
official duties, of a pregnant, unmarried individual, the officer or
employee (I) inform the individual, orally and in writing, that she
will be ineligible for aid under the State plan under part A unless she
informs the State of the identity of the prospective father and, after
the child is born, cooperates in establishing the paternity of the
child, and (II) encourage the individual to urge the prospective father
to acknowledge paternity,''.
    (b) Conforming Amendments.--Section 466(a)(5) of such Act (42
U.S.C. 666(a)(5)) is amended in each of subparagraphs (D) and (E) by
striking ``(C)(ii)'' and inserting ``(C)(iii)''.
    (c) Sense of the Congress.--The Congress encourages the States to--
            (1) develop procedures in public hospitals and clinics to
        facilitate the acknowledgement of paternity; and
            (2) establish legal procedures that permit the
        establishment of paternity as quickly and easily as possible.

SEC. 104. INCREASE IN PATERNITY ESTABLISHMENT PERCENTAGE.

    Section 452(g)(1) of the Social Security Act (42 U.S.C. 652(g)(1))
is amended by striking all that follows ``--'' and inserting the
following:
            ``(A) 90 percent;
            ``(B) for a State with a paternity establishment percentage
        of not less than 50 percent but less than 90 percent for such
        fiscal year, the paternity establishment percentage of the
        State for the immediately preceding fiscal year plus 6
        percentage points; or
            ``(C) for a State with a paternity establishment percentage
        of less than 50 percent for such fiscal year, the paternity
        establishment percentage of the State for the immediately
        preceding fiscal year plus 10 percentage points.''.

SEC. 105. DENIAL OF AFDC FOR CERTAIN CHILDREN BORN OUT-OF-WEDLOCK.

    (a) Denial of AFDC.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)), as amended by section 101(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (45);
            (2) by striking the period at the end of paragraph (46) and
        inserting ``; and''; and
            (3) by inserting after paragraph (46) the following:
            ``(47) provide that--
                    ``(A) aid under the plan shall not be payable with
                respect to a child born out-of-wedlock, on or after the
                effective date of this paragraph, to an individual who,
                at the time of such birth, had not attained 18 years of
                age, unless, after the birth of the child--
                            ``(i) the individual marries an individual
                        who the State determines is the biological
                        father of the child; or
                            ``(ii) the biological parent of the child
                        has legal custody of the child and marries an
                        individual who legally adopts the child; and
                    ``(B) if the amount of aid payable to a family
                under the State plan is reduced by reason of this
                paragraph, each member of the family shall be
                considered to be receiving such aid for purposes of
                eligibility for medical assistance under the State plan
                approved under title XIX for so long as such aid would
                otherwise not be so reduced.''.
    (b) No Effect on Eligibility for Foster Care Maintenance
Payments.--Section 472(a)(4)(B) of such Act (42 U.S.C. 672(a)(4)(B)),
as amended by section 101(b) of this Act, is amended in each of clauses
(i) and (ii) by striking ``section 402(a)(46)'' and inserting
``paragraphs (46) and (47) of section 402(a)''.
    (c) No Effect on Eligibility for Adoption Assistance Payments.--
Section 473(a)(2)(B)(ii) of such Act (42 U.S.C. 673(a)(2)(B)(ii)), as
amended by section 101(b) of this Act, is amended in each of subclauses
(I) and (II) by striking ``section 402(a)(46)'' and inserting
``paragraphs (46) and (47) of section 402(a)''.

SEC. 106. DENIAL OF AFDC FOR ADDITIONAL CHILDREN.

    (a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)), as amended by sections 101(a) and 105(a)(1) of this
Act, is amended--
            (1) by striking ``and'' at the end of paragraph (46);
            (2) by striking the period at the end of paragraph (47) and
        inserting ``; and''; and
            (3) by inserting after paragraph (47) the following:
            ``(48)(A) provide that aid under the plan shall not be
        payable with respect to a child born on or after the effective
        date of this paragraph to--
                    ``(i) a recipient of aid under any State plan
                approved under this part; or
                    ``(ii) an individual who received aid under any
                such State plan at any time during the 10-month period
                ending with the birth of the child,
        unless the recipient or individual was pregnant with the child
        at the time of application for such aid; and
            ``(B) if the amount of aid payable to a family under the
        State plan is reduced by reason of this paragraph, each member
        of the family shall be considered to be receiving such aid for
        purposes of eligibility for medical assistance under the State
        plan approved under title XIX for so long as such aid would
        otherwise not be so reduced.''.
    (b) No Effect on Eligibility for Foster Care Maintenance
Payments.--Section 472(a)(4)(B) of such Act (42 U.S.C. 672(a)(4)(B)),
as amended by sections 101(b) and 105(b) of this Act, is amended in
each of clauses (i) and (ii) by striking ``and (47)'' and inserting ``,
(47), and (48)''.
    (c) No Effect on Eligibility for Adoption Assistance Payments.--
Section 473(a)(2)(B)(ii) of such Act (42 U.S.C. 673(a)(2)(B)(ii)), as
amended by sections 101(c) and 105(c) of this Act, is amended in each
of subclauses (I) and (II) by striking ``and (47)'' and inserting ``,
(47), and (48)''.

SEC. 107. STATE OPTION TO DENY AFDC BENEFITS TO CHILDREN BORN OUT-OF-
              WEDLOCK TO INDIVIDUALS AGED 18, 19, OR 20, AND TO DENY
              AFDC BENEFITS AND HOUSING BENEFITS TO SUCH INDIVIDUALS.

    (a) Denial of AFDC.--
            (1) In general.--Section 402(a) of the Social Security Act
        (42 U.S.C. 602(a)), as amended by sections 101(a), 105(a)(1),
        and 106 of this Act, is amended--
                    (A) by striking ``and'' at the end of paragraph
                (47);
                    (B) by striking the period at the end of paragraph
                (48) and inserting ``; and''; and
                    (C) by inserting after paragraph (48) the
                following:
            ``(49) at the option of the State, provide that--
                    ``(A) aid under the plan shall not be payable with
                respect to a child born out-of-wedlock to an individual
                who, at the time of such birth, had attained 18 years
                of age but had not attained such age not exceeding 21
                years as the State may determine; and
                    ``(B) aid under the plan shall not be payable with
                respect to an individual who has borne a child out-of-
                wedlock after attaining 18 years of age but before
                attaining 21 years of age, unless--
                            ``(i) after the birth of the child--
                                    ``(I) the individual marries an
                                individual who the State determines is
                                the biological father of the child; or
                                    ``(II) the biological parent of the
                                child has legal custody of the child
                                and marries an individual who legally
                                adopts the child; or
                            ``(ii) the individual is a biological and
                        custodial parent of another child who was not
                        born out-of-wedlock.''.
            (2) No effect on eligibility for foster care maintenance
        payments.--Section 472(a)(4)(B) of such Act (42 U.S.C.
        672(a)(4)(B)), as amended by sections 101(b), 105(b), and
        106(b) of this Act, is amended in each of clauses (i) and (ii)
        by striking ``and (48)'' and inserting ``(48), and (49)''.
            (3) No effect on eligibility for adoption assistance
        payments.--Section 473(a)(2)(B)(ii) of such Act (42 U.S.C.
        673(a)(2)(B)(ii)), as amended by sections 101(c), 105(c), and
        106(c) of this Act, is amended in each of subclauses (I) and
        (II) by striking ``and (48)'' and inserting ``(48), and (49)''.
            (4) Limitation on applicability.--The amendments made by
        this subsection shall not apply to a child born before the
        effective date of this Act who is a member of a family whose
        most recent application for aid to families with dependent
        children under a State plan approved under part A of title IV
        of the Social Security Act was made before such effective date.
    (b) Housing Benefits.--
            (1) Prohibition of assistance.--Notwithstanding any other
        provision of law, a household whose head of household is an
        individual who has borne a child out-of-wedlock after attaining
        18 years of age but before attaining 21 years of age may not be
        provided Federal housing assistance for a dwelling unit located
        in a covered State, unless--
                    (A) after the birth of the child--
                            (i) the individual marries an individual
                        who has been determined by the relevant State
                        to be the biological father of the child; or
                            (ii) the biological parent of the child has
                        legal custody of the child and marries an
                        individual who legally adopts the child;
                    (B) the individual is a biological and custodial
                parent of another child who was not born out-of-
                wedlock; or
                    (C) eligibility for such Federal housing assistance
                is based in whole or in part on any disability or
                handicap of a member of the household.
            (2) Covered states.--A State shall be considered a covered
        State for purposes of this subsection only during the period
        that--
                    (A) begins upon certification, made by the chief
                executive officer of the State (at the option of the
                State) to the Secretary of Housing and Urban
                Development and the Secretary of Agriculture, that the
                State is a covered State for purposes of this
                subsection; and
                    (B) ends upon submission of written notice (at the
                option of the State), by the chief executive officer of
                the State to such Secretaries, that the State is not a
                covered State for purposes of this subsection.
            (3) Notification of housing providers.--Upon certification
        under paragraph (2)(A) for a State and periodically thereafter
        during the period that the State is a covered State, the
        Secretary of Housing and Urban Development and the Secretary of
        Agriculture shall provide written notice that the State is a
        covered State for purposes of this subsection to--
                    (A) each public housing agency whose area of
                jurisdiction is located in whole or part within the
                State; and
                    (B) the owner or manager of each covered project.
            (4) Definitions.--For purposes of this subsection, the
        following definitions shall apply:
                    (A) Covered program.--The term ``covered program''
                means--
                            (i) the program of rental assistance on
                        behalf of low-income families provided under
                        section 8 of the United States Housing Act of
                        1937 (42 U.S.C. 1437f);
                            (ii) the public housing program under title
                        I of the United States Housing Act of 1937 (42
                        U.S.C. 1437 et seq.);
                            (iii) the program of rent supplement
                        payments on behalf of qualified tenants
                        pursuant to contracts entered into under
                        section 101 of the Housing and Urban
                        Development Act of 1965 (12 U.S.C. 1701s);
                            (iv) the program of interest reduction
                        payments pursuant to contracts entered into by
                        the Secretary of Housing and Urban Development
                        under section 236 of the National Housing Act
                        (12 U.S.C. 1715z-1);
                            (v) the program for mortgage insurance
                        provided pursuant to sections 221(d)(3) or (4)
                        of the National Housing Act (12 U.S.C.
                        1715l(d)) for multifamily housing for low- and
                        moderate-income families;
                            (vi) the rural housing loan program under
                        section 502 of the Housing Act of 1949 (42
                        U.S.C. 1472);
                            (vii) the rural housing loan guarantee
                        program under section 502(h) of the Housing Act
                        of 1949 (42 U.S.C. 1472(h));
                            (viii) the loan and grant programs under
                        section 504 of the Housing Act of 1949 (42
                        U.S.C. 1474) for repairs and improvements to
                        rural dwellings;
                            (ix) the program of loans for rental and
                        cooperative rural housing under section 515 of
                        the Housing Act of 1949 (42 U.S.C. 1485);
                            (x) the program of rental assistance
                        payments pursuant to contracts entered into
                        under section 521(a)(2)(A) of the Housing Act
                        of 1949 (42 U.S.C. 1490a(a)(2)(A));
                            (xi) the loan and assistance programs under
                        sections 514 and 516 of the Housing Act of 1949
                        (42 U.S.C. 1484, 1486) for housing for farm
                        labor;
                            (xii) the program of grants and loans for
                        mutual and self-help housing and technical
                        assistance under section 523 of the Housing Act
                        of 1949 (42 U.S.C. 1490c);
                            (xiii) the program of grants for
                        preservation and rehabilitation of housing
                        under section 533 of the Housing Act of 1949
                        (42 U.S.C. 1490m); and
                            (xiv) the program of site loans under
                        section 524 of the Housing Act of 1949 (42
                        U.S.C. 1490d).
                    (B) Covered project.--The term ``covered project''
                means any housing for which Federal housing assistance
                is provided that is attached to the project or specific
                dwelling units in the project.
                    (C) Federal housing assistance.--The term ``Federal
                housing assistance'' means--
                            (i) assistance provided under a covered
                        program in the form of any contract, grant,
                        loan, subsidy, cooperative agreement, loan or
                        mortgage guarantee or insurance, or other
                        financial assistance; or
                            (ii) occupancy in a dwelling unit that is--
                                    (I) provided assistance under a
                                covered program; or
                                    (II) located in a covered project
                                and subject to occupancy limitations
                                under a covered program that are based
                                on income.
                    (D) Public housing agency.--The term ``public
                housing agency'' has the meaning given the term in
                section 3(a) of the United States Housing Act of 1937.
                    (E) State.--The term ``State'' means the States of
                the United States, the District of Columbia, the
                Commonwealth of Puerto Rico, the Commonwealth of the
                Northern Mariana Islands, Guam, the Virgin Islands,
                American Samoa, and any other territory or possession
                of the United States.
            (5) Limitations on applicability.--Paragraph (1) shall not
        apply to Federal housing assistance provided for a household
        pursuant to an application or request for such assistance made
        by such household before the effective date of this Act.

SEC. 108. GRANTS TO STATES FOR ASSISTANCE TO CHILDREN BORN OUT-OF-
              WEDLOCK.

    (a) In General.--Title IV of the Social Security Act (42 U.S.C. 601
et seq.) is amended by inserting after part B the following:

    ``PART C--GRANTS FOR ASSISTANCE TO CHILDREN BORN OUT-OF-WEDLOCK

``SEC. 440. PURPOSE.

    ``(a) In General.--The purpose of this part is to grant a qualified
State the flexibility and resources necessary to provide such services
and activities as the State deems appropriate to discourage out-of-
wedlock births and assure care for children born out-of-wedlock.
    ``(b) Qualified State Defined.--For purposes of this part, the term
`qualified State' means a State which--
            ``(1) has a plan approved under section 402;
            ``(2) has certified to the Secretary that--
                    ``(A) the payments made to the State under this
                part will be used by the State in accordance with this
                part; and
                    ``(B) not less frequently than every 2 years, the
                State will audit the expenditures of the amounts paid
                to the State under this part; and
            ``(3) has provided the Secretary with a copy of any audit
        the performance of which was the subject of a prior
        certification pursuant to paragraph (2).

``SEC. 441. USE OF GRANT FUNDS.

    ``(a) In General.--Except as provided in subsection (b), each
qualified State that receives grant funds under this part shall use
such funds--
            ``(1) to establish or expand programs to reduce out-of-
        wedlock pregnancies;
            ``(2) to promote adoption;
            ``(3) to establish and operate orphanages;
            ``(4) to establish and operate closely supervised
        residential group homes for unwed mothers; or
            ``(5) in any manner that the State deems appropriate to
        accomplish the purpose of this part.
    ``(b) Prohibitions on Use of Funds.--
            ``(1) No individual payments.--A qualified State that
        receives grant funds under this part shall not use such funds
        to provide cash payments to an individual who is the parent of
        a child born out-of-wedlock or to the child.
            ``(2) No funds used for abortion.--No grant funds received
        by a qualified State under this part shall be used for making
        abortion available as a method of family planning or for any
        counseling or advising with respect to abortion.
    ``(c) Penalty for Misuse of Funds.--If a qualified State fails to
comply with subsection (b) in any fiscal year, the Secretary shall
reduce the amount to be paid to such State under this part for the
succeeding fiscal year by an amount equal to the amount of funds paid
to the State under this part that are involved in the noncompliance.

``SEC. 442. AMOUNT OF GRANT.

    ``(a) In General.--The Secretary shall make a payment to each
qualified State for each fiscal year in an amount equal to the Federal
savings amount for the State determined under subsection (b)(1) for the
fiscal year.
    ``(b) Determination of Grant Amount.--
            ``(1) In general.--The Federal savings amount for a State
        for a fiscal year is an amount that is equal to the product
        of--
                    ``(A) the State per capita amount for the fiscal
                year (as determined under paragraph (2)); and
                    ``(B) the State's excluded population for the
                fiscal year (as determined under paragraph (3)).
            ``(2) Per capita amount.--The State per capita amount for a
        fiscal year is--
                    ``(A) the total amount that the Secretary estimates
                will be paid to the State under paragraph (1) or (2) of
                section 403(a) during the fiscal year; divided by
                    ``(B) the total number of individuals who the
                Secretary estimates will receive aid under the State
                plan approved under section 402 during the fiscal year.
            ``(3) State excluded population.--
                    ``(A) In general.--The Director of the Office of
                Management and Budget shall determine an excluded
                population for each qualified State for each fiscal
                year in accordance with this paragraph.
                    ``(B) Determination.--A State's excluded population
                for a fiscal year shall equal the sum of--
                            ``(i) the number of excluded children for
                        the State for the fiscal year as determined
                        under subparagraph (C); and
                            ``(ii) the number of excluded parents for
                        the State for the fiscal year as determined
                        under subparagraph (D).
                    ``(C) Excluded children.--
                            ``(i) In general.--The number of excluded
                        children for a State for a fiscal year shall
                        be--
                                    ``(I) for fiscal year 1996, zero;
                                    ``(II) for fiscal year 1997, 50
                                percent of the monthly average number
                                of base year excluded children (as
                                defined in clause (ii)) who were under
                                age 1 during the base year (as defined
                                in clause (iii));
                                    ``(III) for fiscal year 1998, the
                                sum of--
                                            ``(aa) the monthly average
                                        number of base year excluded
                                        children who were under age 1
                                        during the base year; and
                                            ``(bb) 50 percent of the
                                        monthly average number of base
                                        year excluded children who were
                                        over age 1 and under age 2
                                        during the base year;
                                    ``(IV) for fiscal year 1999, the
                                sum of--
                                            ``(aa) the monthly average
                                        number of base year excluded
                                        children who were under age 2
                                        during the base year; and
                                            ``(bb) 50 percent of the
                                        monthly average number of base
                                        year excluded children who were
                                        over age 2 and under age 3
                                        during the base year;
                                    ``(V) for fiscal year 2000, the sum
                                of--
                                            ``(aa) the monthly average
                                        number of base year excluded
                                        children who were under age 3
                                        during the base year; and
                                            ``(bb) 50 percent of the
                                        monthly average number of base
                                        year excluded children who were
                                        over age 3 and under age 4
                                        during the base year; and
                                    ``(VI) for fiscal years after
                                fiscal year 2000, a number determined
                                by the Secretary using a formula
                                which--
                                            ``(aa) takes into account
                                        changes in out-of-wedlock birth
                                        rates in previous years, State
                                        incentives to continue programs
                                        designed to reduce illegitimate
                                        births, and other factors
                                        deemed relevant by the
                                        Secretary; and
                                            ``(bb) does not result in a
                                        payment to any State under this
                                        section for any fiscal year
                                        that exceeds the payment made
                                        to the State under this section
                                        for fiscal year 2000.
                            ``(ii) Base year excluded children.--The
                        term `base year excluded children' means
                        children who received aid under the State plan
                        approved under section 402 during the base year
                        who would not have been eligible for such aid
                        if paragraphs (47) and (49) of section 402(a)
                        (as in effect during the applicable fiscal
                        year) had been in effect at the time such
                        children were born.
                            ``(iii) Base year.--For purposes of this
                        part, the term `base year' means--
                                    ``(I) 1994, if the Congressional
                                Budget Office is able to determine an
                                excluded population for each State for
                                each fiscal year that such a
                                determination is required using data
                                provided by the National Integrated
                                Quality Control System operated by the
                                Department of Health and Human Services
                                and other relevant data sources; or
                                    ``(II) 1994, or another period
                                determined appropriate by the
                                Secretary, based on a survey conducted
                                or approved by the Secretary.
                    ``(D) Excluded parents.--The number of excluded
                parents for a State for a fiscal year shall be the
                number of parents excluded in connection with the
                exclusion of their children under subparagraph (C).''.
    (b) Study.--Not later than October 1, 1998, and not later than
October 1 of each of the 3 immediately succeding years, the Comptroller
General of the United States shall submit to the Congress a report on
how States have expended funds provided under part C of title IV of the
Social Security Act, the effect of such expenditures on the well-being
of mothers and children, and whether there is evidence that
illegitimacy rates have changed as as result of the implementation of
such part. Any such report may address such related matters as the
Comptroller General deems appropriate to examine.

SEC. 109. REMOVAL OF BARRIERS TO INTERETHNIC ADOPTION.

    (a) Findings.--The Congress finds that--
            (1) nearly 500,000 children are in foster care in the
        United States;
            (2) tens of thousands of children in foster care are
        waiting for adoption;
            (3) 2 years and 8 months is the median length of time that
        children wait to be adopted;
            (4) child welfare agencies should work to eliminate racial,
        ethnic, and national origin discrimination and bias in adoption
        and foster care recruitment, selection, and placement
        procedures; and
            (5) active, creative, and diligent efforts are needed to
        recruit parents, from every race and culture, for children
        needing foster care or adoptive parents.
    (b) 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.
    (c) Multiethnic Placements.--
            (1) Activities.--
                    (A) Prohibition.--An agency or entity that receives
                Federal assistance and is involved in adoption or
                foster care placements may not--
                            (i) 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
                            (ii) 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.
                    (B) Definition.--As used in this paragraph, the
                term ``placement decision'' means the decision to
                place, or to delay or deny the placement of, a child
                into foster care or in an adoptive home, and includes
                the decision of the agency or entity involved to seek
                the termination of birth parent rights or otherwise
                make a child legally available for adoptive placement.
            (2) Limitation.--The Secretary of Health and Human Services
        shall not provide placement and administrative funds under
        section 474(a)(3) of the Social Security Act (42 U.S.C.
        674(a)(3)) to an agency or entity described in paragraph (1)(A)
        of this subsection that is not in compliance with paragraph (1)
        of this subsection.
            (3) Private cause of action.--
                    (A) In general.--Any individual who is aggrieved by
                a violation of paragraph (1) by an agency or entity
                described in paragraph (1)(A) may bring an action
                seeking relief in any United States district court.
                    (B) Authority to award a reasonable attorney's
                fee.--In an action brought under this paragraph, the
                court, in its discretion, may allow a prevailing
                plaintiff a reasonable attorney's fee as part of the
                costs.
                    (C) Statute of limitations.--An action under this
                paragraph may not be brought more than 2 years after
                the date the alleged violation occurred.
                    (D) Waiver of state immunity.--This paragraph is
                intended, among other things, to authorize actions
                against States and State officials that might otherwise
                be barred under the Eleventh Article of Amendment to
                the Constitution of the United States, and is enacted
                pursuant to section 5 of the Fourteenth Article of
                Amendment to the Constitution of the United States.
            (4) Construction.--This subsection shall not be construed
        to affect the application of the Indian Child Welfare Act of
        1978 (25 U.S.C. 1901 et seq.).

                        TITLE II--REQUIRING WORK

SEC. 201. FINDINGS; INTENT; STATEMENT OF PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) the cash value of the typical welfare package of AFDC,
        food stamps, and medicaid is approximately $12,000 per year;
            (2) research shows that adults who leave AFDC for paid
        employment earn approximately $5.50 per hour, or well over
        $10,000 per year, and that, when combined with the Earned
        Income Tax Credit and food stamps, the total income of former
        AFDC families is at least $15,000 per year;
            (3) adults who leave AFDC for paid employment are on the
        ladder that can lead to greater future income, and their
        children have a role model for the societal value of self-
        sufficiency; and
            (4) most adult welfare recipients can find paid employment
        within 2 years.
    (b) Intent of the Congress.--The intent of the Congress is to--
            (1) provide States with the resources and authority
        necessary to help, cajole, lure, or force adults off welfare
        and into paid employment as quickly as possible, and to require
        adult welfare recipients, when necessary, to accept jobs that
        will help end welfare dependency;
            (2) permit States to provide education and training to
        welfare recipients only if, in the judgment of State officials,
        doing so will enhance the ability of such recipients to leave
        welfare for paid employment;
            (3) prohibit the States from providing adult welfare
        recipients with more than 2 years of education or training; and
            (4) give States the flexibility to design their own
        welfare-to-work programs and to decide who must participate in
        such programs.
    (c) Statement of Purpose.--The purpose of this title is to move
adult welfare recipients from welfare dependency to paid employment as
quickly as possible.

SEC. 202. WORK PROGRAM.

    (a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)) is amended by inserting the following after paragraph
(28):
            ``(29) provide that--
                    ``(A)(i) the State shall require recipients of aid
                under the State plan to participate in a work program
                in accordance with this paragraph; and
                    ``(ii) for purposes of this paragraph, the term
                `work program' means--
                            ``(I) a work supplementation program
                        operated under section 482(e);
                            ``(II) a community work experience program
                        established under section 482(f), or any other
                        work experience program approved by the
                        Secretary; or
                            ``(III) any other work program established
                        by the State, which is approved by the
                        Secretary;
                    ``(B)(i) except as provided in clause (ii), each
                individual who is required under this paragraph to
                participate in a work program and has received aid
                under the State plan for at least 24 months (whether or
                not consecutive) after the effective date of this
                paragraph shall participate in work activities for an
                average of not fewer than 35 hours per week during any
                month (or for an average of not fewer than 30 hours per
                week during any month if the individual is engaged in
                job search for an average of not fewer than 5 hours per
                week during the month), but the State may not require
                any such individual to participate in work activities
                for more than 40 hours during any week; and
                    ``(ii) in the case of a family which receives aid
                under the State plan by reason of section 407--
                            ``(I) the State must require at least 1
                        parent in the family to engage in work
                        activities for an average of 32 hours per week
                        during any month and in job search activities
                        for an average of 8 hours per week during any
                        month; and
                            ``(II) the State must combine the aid
                        payable to the family under the plan, and the
                        cash value of any benefits the State would have
                        provided under title V of the Personal
                        Responsibility Act of 1995 Act to the family,
                        into a single cash payment to the family;
                    ``(C)(i)(I) the State may impose such sanctions as
                the State considers appropriate on an individual who
                fails to satisfactorily participate in any activity
                required under this part during the first 24 months
                (after the effective date of this paragraph) for which
                the individual is a recipient of aid under the State
                plan;
                    ``(II) the State shall reduce the amount otherwise
                payable under the State plan for the month with respect
                to an individual to whom subparagraph (B)(i) applies,
                pro rata with respect to any period during the month
                for which the individual does not comply with
                subparagraph (B)(i); and
                    ``(III) in the case of a family which receives aid
                under the State plan by reason of section 407, the
                State shall reduce the cash payment payable to the
                family pursuant to subparagraph (B)(ii) pro rata with
                respect to any period for which the family does not
                comply with subparagraph (B)(ii); and
                    ``(ii) the State may suspend or terminate
                eligibility for aid under the State plan of any
                individual to whom a sanction has been applied under
                clause (i) on 3 or more occasions;
                    ``(D) the State may not provide subsidized non-work
                activities to an individual under the State plan for
                more than 24 months (whether or not consecutive) after
                the effective date of this paragraph;
                    ``(E) at the option of the State, the State may
                terminate eligibility for aid under the State plan of
                any family which--
                            ``(i) has received such aid for 24 months
                        (whether or not consecutive) after the
                        effective date of this paragraph;
                            ``(ii) has been required under this
                        paragraph for at least 12 months (whether or
                        not consecutive) after such effective date to
                        participate in a work program; and
                            ``(iii) was offered a work placement at the
                        beginning of such 12-month period;
                    ``(F) an adult who has received aid under the State
                plan for 60 months (whether or not consecutive) after
                the effective date of this paragraph shall not be
                eligible for aid under the State plan; and
                    ``(G) if a family is denied aid under the State
                plan by reason of subparagraph (E) or (F), each member
                of the family shall be considered to be receiving such
                aid for purposes of eligibility for medical assistance
                under the State plan approved under title XIX for so
                long as the family would otherwise be eligible for such
                aid.''.
    (b) Payments to States; Sanctions.--Section 403 of such Act (42
U.S.C. 603) is amended by adding at the end the following:
    ``(o)(1) Each State which has been paid under subsection (l) of
this section for any fiscal year an amount equal to the limitation
determined under subsection (k)(2) of this section for the fiscal year
shall be entitled to payments under paragraph (4) of this subsection
for the fiscal year in an amount equal to the lesser of--
            ``(A) the sum of the applicable percentages (specified in
        such paragraph (4)) of its expenditures under section
        402(a)(29) with respect to which payment has not been made
        under such subsection (l) (subject to limitations prescribed by
        or pursuant to part F (to the extent applicable) or such
        paragraph (4) on expenditures that may be included for purposes
        of determining payment under such paragraph (4)); or
            ``(B) the limitation determined under paragraph (2) of this
        subsection with respect to the State for the fiscal year.
    ``(2) The limitation determined under this paragraph with respect
to a State for any fiscal year is the amount that bears the same ratio
to the amount specified in paragraph (3) of this subsection for the
fiscal year as the average monthly number of adult recipients (as
defined in subsection (k)(4)) in the State in the preceding fiscal year
bears to the average monthly number of such recipients in all the
States for such preceding year.
    ``(3) The amount specified in this paragraph is--
            ``(A) $500,000,000 for fiscal year 1996;
            ``(B) $900,000,000 for fiscal year 1997;
            ``(C) $1,800,000,000 for fiscal year 1998;
            ``(D) $2,700,000,000 for fiscal year 1999; and
            ``(E) $4,000,000,000 for fiscal year 2000.
    ``(4) Each State which has been paid under subsection (l) of this
section for a fiscal year an amount equal to the limitation determined
under subsection (k)(2) of this section for the fiscal year shall, in
addition to any payment under subsection (a) or (l) of this section, be
entitled to payment from the Secretary of an amount equal to--
            ``(A) 50 percent of the expenditures of the State for
        administrative costs incurred under section 402(a)(29) during
        the fiscal year (other than personnel costs for staff employed
        to carry out section 402(a)(29)) with respect to which payment
        has not been made under such subsection (l); and
            ``(B) the greater of 70 percent or the Federal medical
        assistance percentage (as defined in section 1118 in the case
        of a State to which section 1108 applies, or as defined in
        section 1905(b) in the case of any other State) of the other
        expenditures of the State incurred in carrying out section
        402(a)(29) during the fiscal year with respect to which payment
        has not been made under such subsection (l).
    ``(p)(1) The Secretary shall reduce by 25 percent the amount
otherwise payable under subsection (o) to a State for each quarter in a
fiscal year if--
            ``(A) the State's participation rate for the 3rd quarter of
        the immediately preceding fiscal year is less than the
        participation rate set forth in paragraph (3) for the
        immediately preceding fiscal year; or
            ``(B) for more than 2 months in the immediately preceding
        fiscal year, the State's participation rate for the month is
        less than the participation rate set forth in paragraph (3) for
        the 2nd preceding fiscal year.
    ``(2)(A) A State's participation rate for a time period shall be--
            ``(i) the number of individuals receiving aid under the
        State plan approved under this part who, during the time
        period, participated in a work program (within the meaning of
        section 402(a)(29)(A)) for an average of not fewer than 35
        hours per week during the time period (or for an average of not
        fewer than 30 hours per week during the time period if the
        individual is engaged in job search for an average of not fewer
        than 5 hours per week during the time period); divided by
            ``(ii) the number of families receiving aid under the State
        plan approved under this part for the time period.
    ``(B) For purposes of subparagraph (A), in the case of an
individual who received aid under the State plan approved under this
part for only a portion of a time period, the conduct of the individual
during that portion of the time period is deemed to have occurred
throughout the time period.
    ``(3) The participation rate set forth in this paragraph is--
            ``(A) 2 percent, for fiscal year 1996;
            ``(B) 4 percent, for fiscal year 1997;
            ``(C) 8 percent, for fiscal year 1998;
            ``(D) 12 percent, for fiscal year 1999;
            ``(E) 17 percent, for fiscal year 2000;
            ``(F) 29 percent, for fiscal year 2001;
            ``(G) 40 percent, for fiscal year 2002; and
            ``(H) 50 percent, for fiscal year 2003 and each succeeding
        fiscal year.
    ``(4)(A) Before the beginning of each fiscal year, the Secretary
shall determine the number of individuals each State is required to
have participating in a work program pursuant to section 402(a)(29),
based on information from the immediately preceding fiscal year and on
any information submitted under subparagraph (B) of this paragraph.
    ``(B) If the number of individuals eligible for aid under the State
plan approved under this part during the 1st 3 quarters of a fiscal
year is less than such number for the 1st 3 quarters of the immediately
preceding fiscal year, then, not later than the 1st day of the
succeeding fiscal year, the State may submit to the Secretary
information documenting the decline.
    ``(C) At the beginning of each fiscal year, the Secretary shall
publish in the Federal Register the number determined pursuant to
subparagraph (A) for each State for the fiscal year.''.
    (c) Other Provisions Relating to Unemployed Parents.--
            (1) Extension to all states of option to limit afdc-up
        program.--
                    (A) In general.--Section 407(b)(2)(B) of such Act
                (42 U.S.C. 607(b)(2)(B)) is amended by striking clause
                (iii).
                    (B) Conforming amendment.--Section 407(b)(2)(B)(i)
                of such Act (42 U.S.C. 607(b)(2)(B)(i)) is amended by
                striking ``clauses (ii) and (iii)'' and inserting
                ``clause (ii)''.
            (2) Increase in required work program participation rates
        of unemployed parents.--Section 403(l)(4) of such Act (42
        U.S.C. 603(l)(4)) is amended--
                    (A) by striking subparagraph (A);
                    (B) in subparagraph (B)--
                            (i) by striking ``subparagraph (A)'' and
                        inserting ``section 402(a)(29)(B)(ii)(I)'';
                            (ii) in clause (iii), by striking ``and'';
                            (iii) in clause (iv), by striking ``each of
                        the fiscal years 1997 and 1998.'' and inserting
                        ``fiscal year 1997; and''; and
                            (iv) by adding at the end the following:
            ``(v) 90 percent in the case of the average of each month
        in fiscal year 1998.'';
                    (C) in subparagraph (C)--
                            (i) in clause (i), by striking
                        ``subparagraph (A)(i)'' and inserting ``section
                        402(a)(29)(B)(ii)(I)''; and
                            (ii) in clause (ii), by striking
                        ``subparagraph'' and inserting ``section''; and
                    (D) in subparagraph (D)--
                            (i) by striking ``subparagraph (A)'' each
                        place such term appears and inserting ``section
                        402(a)(29)(B)(ii)(I)'';
                            (ii) by inserting ``of this paragraph''
                        after ``subparagraph (B)''; and
                            (iii) by adding after and below the end the
                        following:
``The Secretary may not, under this subparagraph, waive a penalty with
respect to the same State more than once during any 5-year period.''.
    (d) Elimination of Certain JOBS Program Rules.--
            (1) Participation requirements.--Section 403(l) of such Act
        (42 U.S.C. 603(l)) is amended by striking paragraphs (2) and
        (3) and redesignating paragraph (4) as paragraph (2).
            (2) CWEP hours of work limitations.--Section 482(f) of such
        Act (42 U.S.C. 682(f)) is amended--
                    (A) in paragraph (1), by striking subparagraph (B)
                and redesignating subparagraph (C) as subparagraph (B);
                and
                    (B) by striking paragraph (2) and redesignating
                paragraphs (3) and (4) as paragraphs (2) and (3),
                respectively.
            (3) Rules relating to exemptions.--Section 402(a)(19) of
        such Act (42 U.S.C. 602(a)(19)) is amended by striking
        subparagraphs (C) and (D), by redesignating subparagraphs (E)
        and (F) as subparagraphs (C) and (D), respectively, and by
        adding ``and'' at the end of subparagraph (C) (as so
        redesignated).
            (4) Sanctions.--Section 402(a)(19) of such Act (42 U.S.C.
        602(a)(19)) is amended by striking subparagraph (G).
            (5) Limitation on authority to compel acceptance of a
        job.--Section 402(a)(19) of such Act (42 U.S.C. 602(a)(19)) is
        amended by striking subparagraph (H).
            (6) Conforming amendments and repeal.--
                    (A) Section 402(a)(19)(B) of such Act (42 U.S.C.
                602(a)(19)(B)) is amended--
                            (i) by striking ``--'' and all that follows
                        through ``(i) the'' and inserting ``the'';
                            (ii) by striking ``subclause (I)'' and
                        inserting ``clause (i)'';
                            (iii) by striking clauses (ii), (iii), and
                        (iv);
                            (iv) by redesignating subclauses (I) and
                        (II) as clauses (i) and (ii), respectively; and
                            (v) by moving clauses (i) and (ii) (as so
                        redesignated) 2 ems to the left.
                    (B) Section 407(b)(1)(B) of such Act (42 U.S.C.
                607(b)(1)(B)) is amended--
                            (i) by adding ``and'' at the end of clause
                        (iii);
                            (ii) by striking ``; and'' at the end of
                        clause (iv) and inserting a period; and
                            (iii) by striking clause (v).
                    (C) Section 482(g)(2) of such Act (42 U.S.C.
                682(g)) is amended by striking ``(other'' and all that
                follows through ``applies)''.
                    (D) Section 486 of such Act (42 U.S.C. 686) is
                hereby repealed.
                    (E) Section 487(a)(1) of such Act (42 U.S.C.
                687(a)(1)) is amended by inserting ``(as in effect
                immediately before the effective date of the Personal
                Responsibility Act of 1995)'' before the semicolon.
    (e) Sense of the Congress.--Each State that operates a program of
aid to families with dependent children under a plan approved under
part A of title IV of the Social Security Act is encouraged to assign
the highest priority to requiring families that include older preschool
or school-age children to participate in a work program in accordance
with section 402(a)(29) of such Act.

SEC. 203. WORK SUPPLEMENTATION PROGRAM AMENDMENTS.

    (a) Authority of States To Assign Participants to Unfilled Jobs.--
Section 484(c) of the Social Security Act (42 U.S.C. 684(c)) is amended
by striking the last sentence.
    (b) Authority of States To Use Sums That Would Otherwise Be
Expended for Food Stamp Benefits To Provide Subsidized Jobs for
Participants.--
            (1) In general.--Section 482(e)(1) of such Act (42 U.S.C.
        682(e)(1)) is amended--
                    (A) by inserting ``, and the sums that would
                otherwise be used to provide participants in the
                program under this subsection with benefits under title
                V of the Personal Responsibility Act of 1995,'' before
                ``and use''; and
                    (B) by inserting ``and the benefits under such
                title that would otherwise be so provided to them''
                before the period.
            (2) Subsidies provided to employers and included in wages
        of participants; minimum employer contribution.--Section
        482(e)(3) of such Act (42 U.S.C. 682(e)(3)) is amended by
        adding at the end the following:
    ``(E) Each State operating a work supplementation program under
this subsection shall enter into an agreement with the employer who is
to provide an eligible individual with a supplemented job under the
program, under which--
            ``(i) the State is required to pay the employer an amount
        specified in the agreement as the subsidized portion of the
        wages of the eligible individual; and
            ``(ii) the employer is required to pay the eligible
        individual wages which, when added to an amount that will be
        payable as aid to families with dependent children to the
        individual if the individual is paid such wages, are not less
        than 100 percent of the sum of--
                    ``(I) the amount that would otherwise be payable as
                aid to families with dependent children to the eligible
                individual if the State did not have a work
                supplementation program under this subsection in
                effect; and
                    ``(II) if the State elects to subsidize jobs for
                participants in the program through the reservation of
                sums that would otherwise be used to provide such
                participants with benefits under title V of the
                Personal Responsibility Act of 1995, the cash value of
                such benefits.
    ``(F) For purposes of computing the amount of the Federal payment
to a State under paragraph (1) or (2) of section 403(a), for
expenditures incurred in making payments to individuals and employers
under the State's work supplementation program under this section, the
State may claim as such expenditures the maximum amount payable to the
State under paragraph (4) of this subsection.
    ``(G) Notwithstanding paragraph (1), a State may use for any
purpose the sums reserved under paragraph (1) which are not used to
subsidize jobs under this subsection attributable to savings achieved
by operation of subparagraph (E).''.
            (3) Conforming amendment.--Section 482(e)(3)(A) of such Act
        (42 U.S.C. 682(e)(3)(A)) is amended by striking the 2nd
        sentence.

SEC. 204. PAYMENTS TO STATES FOR CERTAIN INDIVIDUALS RECEIVING FOOD
              ASSISTANCE FROM THE STATE WHO PERFORM WORK ON BEHALF OF
              THE STATE.

    (a) In General.--Each State (as defined in section 1101(a)(1) of
the Social Security Act for purposes of title IV of such Act) shall be
entitled to receive from the Secretary of Health and Human Services a
monthly payment in an amount equal to--
            (1) $20 (as adjusted under subsection (b) of this section);
        multiplied by
            (2) the number of nonexempt individuals (as defined in
        section 504(7) of this Act) who, during the immediately
        preceding month--
                    (A) received food assistance from the State under
                title V of this Act; and
                    (B) performed at least 32 hours of work on behalf
                of the State or a political subdivision of the State
                through a work program (as defined in section
                402(a)(29)(A)(i) of the Social Security Act).
    (b) Inflation Adjustment.--The Secretary of Health and Human
Services shall adjust the amount referred to in subsection (a)(1) on
October 1, 1996, and each October 1 thereafter, to reflect changes in
the Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics, as appropriately adjusted by the Bureau of
Labor Statistics after consultation with the Secretary concerning the
application of the Index to this paragraph, for the 12 months ending
the immediately preceding June 30.

      TITLE III--CAPPING THE AGGREGATE GROWTH OF WELFARE SPENDING

SEC. 301. CAP ON GROWTH OF FEDERAL SPENDING ON CERTAIN WELFARE
              PROGRAMS.

    (a) Restrictions on Spending.--(1) Effective for fiscal year 1996
and any ensuing fiscal year, the total amount of Federal spending for
that fiscal year for the programs listed in subsection (b) shall not
exceed an amount equal to the sum of the total estimated Federal
spending for the preceding fiscal year on those programs, adjusted for
inflation and change of the poverty population as specified in
paragraph (2).
    (2)(A) The inflator used in paragraph (1) shall be the percentage
change in the Implicit Gross Domestic Product deflator published by the
Department of Commerce for the most recently available fiscal year over
the preceding fiscal year.
    (B) Change of the poverty population for purposes of paragraph (1)
shall be the percentage by which the number of poor people in the
United States in the most recent fiscal year for which data are
available from the annual report on poverty published by the Bureau of
the Census differs from the number of poor people in the preceding
fiscal year, as computed by the Congressional Budget Office during
January of the calendar year in which the fiscal year subject to the
restriction begins.
    (b) Programs Subject to Spending Limit.--The programs listed in
this subsection are the following:
            (1) Family support.--The program of aid and services to
        needy families with children under part A of title IV of the
        Social Security Act, child support enforcement program under
        part D of such title, and the at-risk child care grant under
        part A of such title.
            (2) Supplemental security income.--The supplemental
        security income program under title XVI of the Social Security
        Act.
            (3) Housing aid.--
                    (A) Lower income housing assistance under section 8
                of the United States Housing Act of 1937 (42 U.S.C.
                1772).
                    (B) Low-rent public housing under the United States
                Housing Act of 1937.
                    (C) Rural housing loans for low-income families
                under section 502 of the Housing Act of 1949.
                    (D) Interest reduction payments under section 236
                of the National Housing Act.
                    (E) Rural rental housing loans under section 515 of
                the Housing Act of 1949.
                    (F) Rural rental assistance under section 521 of
                the Housing Act of 1949.
                    (G) Homeownership assistance for lower income
                families under section 235 of the National Housing Act.
                    (H) Rent supplements under section 101 of the
                Housing and Urban Development Act of 1965.
                    (I) Indian housing improvement grants under part
                256 of title 25, Code of Federal Regulations.
                    (J) Rural housing repair loan grants for very low-
                income rural home owners under section 504 of the
                Housing Act of 1949.
                    (K) Farm labor housing loans under section 514 of
                the Housing Act of 1949.
                    (L) Rural housing self-help technical assistance
                grants under section 523 of the Housing Act of 1949.
                    (M) Rural housing self-help technical assistance
                loans under section 523 of the Housing Act of 1949.
                    (N) Farm labor housing grants under section 516 of
                the Housing Act of 1949.
                    (O) Rural housing preservation grants for low-
                income rural homeowners under section 533 of the
                Housing Act of 1949.
            (4) Mandatory work program.--The mandatory work program
        under part A of title IV of the Social Security Act.
            (5) JOBS program.--The job opportunities and basic skills
        training program under part F of title IV of the Social
        Security Act.
    (c) Reconciliation of Growth Limits.--
            (1) Allocations.--The joint explanatory statement
        accompanying a conference report on a concurrent resolution on
        the budget described in section 301 of the Congressional Budget
        Act of 1974 for a fiscal year shall include allocations to each
        committee based on the spending cap imposed by subsection (a)
        for such fiscal year.
            (2) Reconciliation directives.--The reconciliation
        directives described in section 310 of the Congressional Budget
        Act of 1974 shall specify reductions for each committee
        necessary to comply with the spending caps imposed by
        subsection (a) for such fiscal year.
            (3) Consultation with committees.--In conducting any
        activities required under paragraphs (1) and (2), the
        Committees on the Budget of the House of Representatives and
        the Senate shall consult with the following committees of
        Congress, as applicable:
                    (A) The Committee on Appropriations of the House of
                Representatives or the Senate.
                    (B) The Committee on Banking and Financial Services
                of the House of Representatives or the Committee on
                Banking, Housing, and Urban Affairs of the Senate.
                    (C) The Committee on Ways and Means of the House of
                Representatives.
                    (D) The Committee on Finance of the Senate.

SEC. 302. CONVERSION OF FUNDING UNDER CERTAIN WELFARE PROGRAMS.

    Notwithstanding any other provision of law, effective October 1,
1995, all entitlement of individuals to benefits established under the
following programs, or of States to payments under such programs, is
terminated:
            (1) Family support.--The program of aid and services to
        needy families with children under part A of title IV of the
        Social Security Act, the child support enforcement program
        under part D of such title, and the at-risk child care grant
        under part A of such title.
            (2) Supplemental security income.--The supplemental
        security income program under title XVI of the Social Security
        Act.

SEC. 303. SAVINGS FROM WELFARE SPENDING LIMITS TO BE USED FOR DEFICIT
              REDUCTION.

    All savings to the Federal Government resulting from the spending
cap imposed under section 301 shall be used for deficit reduction. Such
savings shall not be used to fund increased spending under any programs
that are not subject to the spending cap.

                TITLE IV--RESTRICTING WELFARE FOR ALIENS

SEC. 401. INELIGIBILITY OF ALIENS FOR PUBLIC WELFARE ASSISTANCE.

    (a) In General.--Notwithstanding any other provision of law and
except as provided in subsections (b) and (c), no alien shall be
eligible for any program referred to in subsection (d).
    (b) Exceptions.--
            (1) Refugee exception.--Subsection (a) shall not apply to
        an alien admitted to the United States as a refugee under
        section 207 of the Immigration and Nationality Act until 6
        years after the date of such alien's arrival into the United
        States.
            (2) Aged exception.--Subsection (a) shall not apply to an
        alien who--
                    (A) has been lawfully admitted to the United States
                for permanent residence;
                    (B) is over 75 years of age; and
                    (C) has resided in the United States for at least 5
                years.
            (3) Current resident exception.--Subsection (a) shall not
        apply to the eligibility of an alien for a program referred to
        in subsection (d) until 1 year after the date of the enactment
        of this Act if, on such date of enactment, the alien is
        residing in the United States and is eligible for the program.
    (c) Program For Which Aliens May Be Eligible.--The limitation under
subsection (a) shall not apply to medical assistance with respect to
emergency services (as defined for purposes of section 1916(a)(2)(D) of
the Social Security Act).
    (d) Programs For Which Aliens Are Ineligible.--The programs
referred to in this subsection are the following:
            (1) The program of medical assistance under title XIX of
        the Social Security Act, except emergency services as provided
        in subsection (c).
            (2) The Maternal and Child Health Services Block Grant
        Program under title V of the Social Security Act.
            (3) The program established in section 330 of the Public
        Health Service Act (relating to community health centers).
            (4) The program established in section 1001 of the Public
        Health Service Act (relating to family planning methods and
        services).
            (5) The program established in section 329 of the Public
        Health Service Act (relating to migrant health centers).
            (6) The program of aid and services to needy families with
        children under part A of title IV of the Social Security Act.
            (7) The child welfare services program under part B of
        title IV of the Social Security Act.
            (8) The supplemental security income program under title
        XVI of the Social Security Act.
            (9) The program of foster care and adoption assistance
        under part E of title IV of the Social Security Act.
            (10) The food assistance block grant program established
        under title V of this Act.
            (11) The program of rental assistance on behalf of low-
        income families provided under section 8 of the United States
        Housing Act of 1937 (42 U.S.C. 1437f).
            (12) The program of assistance to public housing under
        title I of the United States Housing Act of 1937 (42 U.S.C.
        1437 et seq.).
            (13) The loan program under section 502 of the Housing Act
        of 1949 (42 U.S.C. 1472).
            (14) The program of interest reduction payments pursuant to
        contracts entered into by the Secretary of Housing and Urban
        Development under section 236 of the National Housing Act (12
        U.S.C. 1715z-1).
            (15) The program of loans for rental and cooperative
        housing under section 515 of the Housing Act of 1949 (42 U.S.C.
        1485).
            (16) The program of rental assistance payments pursuant to
        contracts entered into under section 521(a)(2)(A) of the
        Housing Act of 1949 (42 U.S.C. 1490a(a)(2)(A)).
            (17) The program of assistance payments on behalf of
        homeowners under section 235 of the National Housing Act (12
        U.S.C. 1715z).
            (18) The program of rent supplement payments on behalf of
        qualified tenants pursuant to contracts entered into under
        section 101 of the Housing and Urban Development Act of 1965
        (12 U.S.C. 1701s).
            (19) The loan and grant programs under section 504 of the
        Housing Act of 1949 (42 U.S.C. 1474) for repairs and
        improvements to rural dwellings.
            (20) The loan and assistance programs under sections 514
        and 516 of the Housing Act of 1949 (42 U.S.C. 1484, 1486) for
        housing for farm labor.
            (21) The program of grants for preservation and
        rehabilitation of housing under section 533 of the Housing Act
        of 1949 (42 U.S.C. 1490m).
            (22) The program of grants and loans for mutual and self-
        help housing and technical assistance under section 523 of the
        Housing Act of 1949 (42 U.S.C. 1490c).
            (23) The program of site loans under section 524 of the
        Housing Act of 1949 (42 U.S.C. 1490d).
            (24) The program under part B of title IV of the Higher
        Education Act of 1965.
            (25) The program under subpart 1 of part A of title IV of
        the Higher Education Act of 1965.
            (26) The program under part C of title IV of the Higher
        Education Act of 1965.
            (27) The program under subpart 3 of part A of title IV of
        the Higher Education Act of 1965.
            (28) The program under part E of title IV of the Higher
        Education Act of 1965.
            (29) The program under subpart 4 of part A of title IV of
        the Higher Education Act of 1965.
            (30) The program under title IX of the Higher Education Act
        of 1965.
            (31) The program under subpart 5 of part A of title IV of
        the Higher Education Act of 1965.
            (32) The programs established in sections 338A and 338B of
        the Public Health Service Act and the programs established in
        part A of title VII of such Act (relating to loans and
        scholarships for education in the health professions).
            (33) The program established in section 317(j)(1) of the
        Public Health Service Act (relating to grants for immunizations
        against vaccine-preventable diseases).
            (34) The program established in section 317A of the Public
        Health Service Act (relating to grants for screening,
        referrals, and education regarding lead poisoning in infants
        and children).
            (35) The program established in part A of title XIX of the
        Public Health Service Act (relating to block grants for
        preventive health and health services).
            (36) The programs established in subparts I and II of part
        B of title XIX of the Public Health Service Act.
            (37)(A) The program of training for disadvantaged adults
        under part A of title II of the Job Training Partnership Act
        (29 U.S.C. 1601 et seq.).
            (B) The program of training for disadvantaged youth under
        part C of title II of the Job Training Partnership Act (29
        U.S.C. 1641 et seq.).
            (38) The Job Corps program under part B of title IV of the
        Job Training Partnership Act (29 U.S.C. 1692 et seq.).
            (39) The summer youth employment and training programs
        under part B of title II of the Job Training Partnership Act
        (29 U.S.C. 1630 et seq.).
            (40) The programs carried out under the Older American
        Community Service Employment Act (42 U.S.C. 3001 et seq.).
            (41) The programs under title III of the Older Americans
        Act of 1965.
            (42) The programs carried out under part B of title II of
        the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5011-
        5012).
            (43) The programs carried out under part C of title II of
        the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5013).
            (44) The program under the Low-Income Energy Assistance Act
        of 1981 (42 U.S.C. 8621 et seq.).
            (45) The weatherization assistance program under title IV
        of the Energy Conservation and Production Act (42 U.S.C. 6851).
            (46) The program of block grants to States for social
        services under title XX of the Social Security Act.
            (47) The programs carried out under the Community Services
        Block Grant Act (42 U.S.C. 9901 et seq.).
            (48) The program of legal assistance to eligible clients
        and other programs under the Legal Services Corporation Act (42
        U.S.C. 2996 et seq.).
            (49) The program for emergency food and shelter grants
        under title III of the Stewart B. McKinney Homeless Assistance
        Act (42 U.S.C. 11331 et seq.).
            (50) The programs carried out under the Child Care and
        Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.).
            (51) A State program for providing child care under section
        402(i) of the Social Security Act.
            (52) The program of State legalization impact-assistance
        grants (SLIAG) under section 204 of the Immigration Reform and
        Control Act of 1986.
    (e) Notification.--Each Federal agency that administers a program
referred to in subsection (d) shall, directly or through the States,
post information and provide general notification to the public and
program recipients of the changes regardingly eligibility for any such
program pursuant to this section.

SEC. 402. STATE AFDC AGENCIES REQUIRED TO PROVIDE INFORMATION ON
              ILLEGAL ALIENS TO THE IMMIGRATION AND NATURALIZATION
              SERVICE.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as
amended by title I of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (48);
            (2) by striking the period at the end of paragraph (49) and
        inserting ``; and''; and
            (3) by inserting after paragraph (49) the following:
            ``(50) require the State agency to provide to the
        Immigration and Naturalization Service the name, address, and
        other identifying information that the agency has with respect
        to any individual unlawfully in the United States any of whose
        children is a citizen of the United States.''.

            TITLE V--CONSOLIDATING FOOD ASSISTANCE PROGRAMS

SEC. 501. FOOD ASSISTANCE BLOCK GRANT PROGRAM.

    (a) Authority To Make Block Grants.--The Secretary of Agriculture
shall make grants in accordance with this section to States to provide
food assistance to individuals who are economically disadvantaged and
to individuals who are members of economically disadvantaged families.
    (b) Distribution of Funds.--
            (1) Allotments to states.--Subject to paragraph (2), the
        funds appropriated to carry out this section for any fiscal
        year shall be allotted among the States as follows:
                    (A) Of the aggregate amount to be distributed under
                this section, .21 percent shall be reserved for grants
                to Guam, the Virgin Islands of the United States,
                American Samoa, the Commonwealth of the Northern
                Mariana Islands, the Republic of the Marshall Islands,
                the Federated States of Micronesia, and Palau.
                    (B) Of the aggregate amount to be distributed under
                this section, .24 percent shall be reserved for grants
                to tribal organizations that have governmental
                jurisdiction over geographically defined areas and
                shall be allocated equitably by the Secretary among
                such organizations.
                    (C) The remainder of such aggregate amount shall be
                allocated among the remaining States. The amount
                allocated to each of the remaining States shall bear
                the same proportion to such remainder as the number of
                resident individuals in such State who are economically
                disadvantaged separately or as members of economically
                disadvantaged families bears to the aggregate number of
                resident individuals in all such remaining States who
                are economically disadvantaged separately or as members
of economically disadvantaged families.
            (2) Limitation.--After September 30, 1996, the aggregate
        amount allotted under paragraph (1) for any fiscal year shall
        not exceed the aggregate amount allotted under paragraph (1)
        for the then preceding fiscal year adjusted by the Secretary to
        reflect--
                    (A) the percentage change in population during the
                1-year period ending June 30 of such preceding fiscal
                year, determined on the basis of the most current
                information available in the Current Population
                Reports, P25 series (as adjusted to include overseas
                members of the armed forces of the United States),
                published by the Bureau of the Census, and
                    (B) the percentage change in the food at home
                component of the Consumer Price Index For All Urban
                Consumers for the 1-year period ending May 31 of such
                preceding fiscal year.
    (c) Eligibility To Receive Grants.--To be eligible to receive a
grant in the amount allotted to a State for a fiscal year, such State
shall submit to the Secretary an application in such form, and
containing such information and assurances, as the Secretary may
require by rule, including--
            (1) an assurance that such grant will be expended by the
        State to provide food assistance to resident individuals in
        such State who are economically disadvantaged separately or as
        members of economically disadvantaged families,
            (2) an assurance that not more than 5 percent of such grant
        will be expended by the State for administrative costs incurred
        to provide assistance under this section,
            (3) an assurance that not less than 12 percent of each
        grant received from funds allotted for fiscal years 1996
        through 2000 will be expended to provide food assistance and
        nutrition education to pregnant women, postpartum women,
        breastfeeding women, infants, and young children,
            (4) an assurance that not less than 20 percent of each
        grant received from funds allotted for fiscal years 1996
        through 2000 will be expended to provide--
                    (A) nonprofit school breakfast programs for
                students from economically disadvantaged families,
                    (B) milk in nonprofit schools and in nonprofit
                nursery schools, child care centers, settlement houses,
                summer camps, and similar institutions devoted to the
                care and training of children, to children from
                economically disadvantaged families,
                    (C) nonprofit school lunch programs for students
                from economically disadvantaged families,
                    (D) expanded food service programs in institutions
                providing child care for children from economically
                disadvantaged families, and
                    (E) summer food service programs carried out by
                nonprofit food authorities, local governments,
                nonprofit higher education institutions participating
                in the National Youth Sports Program, and residential
                nonprofit summer camps, to provide meals to children
                from economically disadvantaged families; and
            (5) an assurance that the amount of food assistance that
        will be provided to any nonexempt individual who is otherwise
        eligible to receive such assistance will be reduced
        proportionally to reflect the extent to which the individual
        has not performed 32 hours of work on behalf of a State or a
        political subdivision of a State, through a program established
        by the State or political subdivision, during the month
        preceding the month for which such assistance is provided.
    (d) Authority To Reduce Certain Grants Requirements.--At the
request of a State for a particular fiscal year, the Secretary may
reduce a percentage requirement specified in paragraph (3) or (4) of
subsection (c) if the Secretary determines that the purpose described
in such paragraph will be adequately carried out by such State without
expending the full amount of funds required by such paragraph.
    (e) Limitation.--No State or political subdivision of a State that
receives funds provided under this title shall replace any employed
worker with an individual who is participating in a program described
in subsection (c)(5) for the purpose of complying with such subsection.
Such an individual may be placed in any position offered by the State
or political subdivision that--
            (A) is a new position,
            (B) is a position that became available in the normal
        course of conducting the business of the State or political
        subdivision,
            (C) involves performing work that would otherwise be
        performed on an overtime basis by a worker who is not an
individual participating in such program, or
            (D) that is a position which became available by shifting a
        current employee to an alternate position.
    (f) Authorization of Appropriations.--(1) There are authorized to
be appropriated to carry out this section $35,600,000,000 for fiscal
year 1996 and such sums as may be necessary for fiscal years 1997,
1998, 1999, and 2000.
    (2) For the purpose of affording adequate notice of funding
available under this section, an appropriation to carry out this
section is authorized to be included in an appropriation Act for the
fiscal year preceding the fiscal year for which such appropriation is
available for obligation.

SEC. 502. AVAILABILITY OF FEDERAL COUPON SYSTEM TO STATES.

    (a) Issuance, Purchase, and Use of Coupons.--The Secretary shall
issue, and make available for purchase by States, coupons for the
retail purchase of food from retail food stores that are approved in
accordance with subsection (b). Coupons issued, purchased, and used as
provided in this section shall be redeemable at face value by the
Secretary through the facilities of the Treasury of the United States.
The purchase price of each coupon issued under this subsection shall be
the face value of such coupon.
    (b) Approval of Retail Food Stores and Wholesale Food Concerns.--
(1) Regulations issued pursuant to this section shall provide for the
submission of applications for approval by retail food stores and
wholesale food concerns which desire to be authorized to accept and
redeem coupons under this section. In determining the qualifications of
applicants, there shall be considered among such other factors as may
be appropriate, the following:
            (A) The nature and extent of the food business conducted by
        the applicant.
            (B) The volume of coupon business which may reasonably be
        expected to be conducted by the applicant food store or
        wholesale food concern.
            (C) The business integrity and reputation of the applicant.
Approval of an applicant shall be evidenced by the issuance to such
applicant of a nontransferable certificate of approval. The Secretary
is authorized to issue regulations providing for a periodic
reauthorization of retail food stores and wholesale food concerns.
    (2) A buyer or transferee (other than a bona fide buyer or
transferee) of a retail food store or wholesale food concern that has
been disqualified under subsection (d) may not accept or redeem coupons
until the Secretary receives full payment of any penalty imposed on
such store or concern.
    (3) Regulations issued pursuant to this section shall require an
applicant retail food store or wholesale food concern to submit
information which will permit a determination to be made as to whether
such applicant qualifies, or continues to qualify, for approval under
this section or the regulations issued pursuant to this section.
Regulations issued pursuant to this section shall provide for
safeguards which limit the use or disclosure of information obtained
under the authority granted by this subsection to purposes directly
connected with administration and enforcement of this section or the
regulations issued pursuant to this section, except that such
information may be disclosed to and used by States that purchase such
coupons.
    (4) Any retail food store or wholesale food concern which has
failed upon application to receive approval to participate in the food
stamp program may obtain a hearing on such refusal as provided in
subsection (f).
    (c) Redemption of Coupons.--Regulations issued under this section
shall provide for the redemption of coupons accepted by retail food
stores through approved wholesale food concerns or through financial
institutions which are insured by the Federal Deposit Insurance
Corporation, or which are insured under the Federal Credit Union Act
(12 U.S.C. 1751 et seq.) and have retail food stores or wholesale food
concerns in their field of membership, with the cooperation of the
Treasury Department, except that retail food stores defined in section
504(10)(D) shall be authorized to redeem their members' food coupons
prior to receipt by the members of the food so purchased, and publicly
operated community mental health centers or private nonprofit
organizations or institutions which serve meals to narcotics addicts or
alcoholics in drug addiction or alcoholic treatment and rehabilitation
programs, public and private nonprofit shelters that prepare and serve
meals for battered women and children, public or private nonprofit
group living arrangements that serve meals to disabled or blind
residents, and public or private nonprofit establishments, or public or
private nonprofit shelters that feed individuals who do not reside in
permanent dwellings and individuals who have no fixed mailing addresses
shall not be authorized to redeem coupons through financial
institutions which are insured by the Federal Deposit Insurance
Corporation or the Federal Credit Union Act. No financial institution
may impose on or collect from a retail food store a fee or other charge
for the redemption of coupons that are submitted to the financial
institution in a manner consistent with the requirements, other than
any requirements relating to cancellation of coupons, for the
presentation of coupons by financial institutions to the Federal
Reserve banks.
    (d) Civil Money Penalties and Disqualification of Retail Food
Stores and Wholesale Food Concerns.--(1) Any approved retail food store
or wholesale food concern may be disqualified for a specified period of
time from further participation in the coupon program under this
section, or subjected to a civil money penalty of up to $10,000 for
each violation if the Secretary determines that its disqualification
would cause hardship to individuals who receive coupons, on a finding,
made as specified in the regulations, that such store or concern has
violated this section or the regulations issued pursuant to this
section.
    (2) Disqualification under paragraph (1) shall be--
            (A) for a reasonable period of time, of no less than 6
        months nor more than 5 years, upon the first occasion of
        disqualification,
            (B) for a reasonable period of time, of no less than 12
        months nor more than 10 years, upon the second occasion of
        disqualification, and
            (C) permanent upon--
                    (i) the third occasion of disqualification,
                    (ii) the first occasion or any subsequent occasion
                of a disqualification based on the purchase of coupons
                or trafficking in coupons by a retail food store or
                wholesale food concern, except that the Secretary shall
                have the discretion to impose a civil money penalty of
                up to $20,000 for each violation (except that the
                amount of civil money penalties imposed for violations
                occurring during a single investigation may not exceed
                $40,000) in lieu of disqualification under this
                subparagraph, for such purchase of coupons or
                trafficking in coupons that constitutes a violation of
                this section or the regulations issued pursuant to this
                section, if the Secretary determines that there is
                substantial evidence (including evidence that neither
                the ownership nor management of the store or food
                concern was aware of, approved, benefited from, or was
                involved in the conduct or approval of the violation)
                that such store or food concern had an effective policy
                and program in effect to prevent violations of this
                section and such regulations, or
                    (iii) a finding of the sale of firearms,
                ammunition, explosives, or controlled substance (as
                defined in section 802 of title 21, United States Code)
                for coupons, except that the Secretary shall have the
                discretion to impose a civil money penalty of up to
                $20,000 for each violation (except that the amount of
                civil money penalties imposed for violations occurring
                during a single investigation may not exceed $40,000)
                in lieu of disqualification under this subparagraph if
                the Secretary determines that there is substantial
                evidence (including evidence that neither the ownership
                nor management of the store or food concern was aware
                of, approved, benefited from, or was involved in the
                conduct or approval of the violation) that the store or
                food concern had an effective policy and program in
                effect to prevent violations of this section.
    (3) The action of disqualification or the imposition of a civil
money penalty shall be subject to review as provided in subsection (f).
    (4) As a condition of authorization to accept and redeem coupons
issued under subsection (a), the Secretary may require a retail food
store or wholesale food concern which has been disqualified or
subjected to a civil penalty pursuant to paragraph (1) to furnish a
bond to cover the value of coupons which such store or concern may in
the future accept and redeem in violation of this section. The
Secretary shall, by regulation, prescribe the amount, terms, and
conditions of such bond. If the Secretary finds that such store or
concern has accepted and redeemed coupons in violation of this section
after furnishing such bond, such store or concern shall forfeit to the
Secretary an amount of such bond which is equal to the value of coupons
accepted and redeemed by such store or concern in violation of this
section. Such store or concern may obtain a hearing on such forfeiture
pursuant to subsection (f).
    (5)(A) In the event any retail food store or wholesale food concern
that has been disqualified under paragraph (1) is sold or the ownership
thereof is otherwise transferred to a purchaser or transferee, the
person or persons who sell or otherwise transfer ownership of the
retail food store or wholesale food concern shall be subjected to a
civil money penalty in an amount established by the Secretary through
regulations to reflect that portion of the disqualification period that
has not yet expired. If the retail food store or wholesale food concern
has been disqualified permanently, the civil money penalty shall be
double the penalty for a 10-year disqualification period, as calculated
under regulations issued by the Secretary. The disqualification period
imposed under paragraph (2) shall continue in effect as to the person
or persons who sell or otherwise transfer ownership of the retail food
store or wholesale food concern notwithstanding the imposition of a
civil money penalty under this paragraph.
    (B) At any time after a civil money penalty imposed under
subparagraph (A) has become final under subsection (f)(1), the
Secretary may request the Attorney General of the United States to
institute a civil action against the person or persons subject to the
penalty in a district court of the United States for any district in
which such person or persons are found, reside, or transact business to
collect the penalty and such court shall have jurisdiction to hear and
decide such action. In such action, the validity and amount of such
penalty shall not be subject to review.
    (C) The Secretary may impose a fine against any retail food store
or wholesale food concern that accepts coupons that are not accompanied
by the corresponding book cover, other than the denomination of coupons
used for making change as specified in regulations issued under this
section. The amount of any such fine shall be established by the
Secretary and may be assessed and collected separately in accordance
with regulations issued under this section or in combination with any
fiscal claim established by the Secretary. The Attorney General of the
United States may institute judicial action in any court of competent
jurisdiction against the store or concern to collect the fine.
    (6) The Secretary may impose a fine against any person not approved
by the Secretary to accept and redeem coupons who violates this section
or a regulation issued under this section, including violations
concerning the acceptance of coupons. The amount of any such fine shall
be established by the Secretary and may be assessed and collected in
accordance with regulations issued under this section separately or in
combination with any fiscal claim established by the Secretary. The
Attorney General of the United States may institute judicial action in
any court of competent jurisdiction against the person to collect the
fine.
    (e) Collection and Disposition of Claims.--The Secretary shall have
the power to determine the amount of and settle and adjust any claim
and to compromise or deny all or part of any such claim or claims
arising under this section or the regulations issued pursuant to this
section, including, but not limited to, claims arising from fraudulent
and nonfraudulent overissuances to recipients, including the power to
waive claims if the Secretary determines that to do so would serve the
purposes of this section. Such powers with respect to claims against
recipients may be delegated by the Secretary to State agencies.
    (f) Administrative and Judicial Review.--(1) Whenever--
            (A) an application of a retail food store or wholesale food
        concern for approval to accept and redeem coupons issued under
        subsection (a) is denied pursuant to this section,
            (B) a retail food store or wholesale food concern is
        disqualified or subjected to a civil money penalty under
        subsection (d),
            (C) all or part of any claim of a retail food store or
        wholesale food concern is denied under subsection (e), or
            (D) a claim against a State is stated pursuant to
        subsection (e),
notice of such administrative action shall be issued to the retail food
store, wholesale food concern, or State involved. Such notice shall be
delivered by certified mail or personal service. If such store,
concern, or State is aggrieved by such action, it may, in accordance
with regulations promulgated under this section, within 10 days of the
date of delivery of such notice, file a written request for an
opportunity to submit information in support of its position to such
person or persons as the regulations may designate. If such a request
is not made or if such store, concern, or State fails to submit
information in support of its position after filing a request, the
administrative determination shall be final. If such request is made by
such store, concern, or State such information as may be submitted by
such store, concern, or State as well as such other information as may
be available, shall be reviewed by the person or persons designated by
the Secretary, who shall, subject to the right of judicial review
hereinafter provided, make a determination which shall be final and
which shall take effect 30 days after the date of the delivery or
service of such final notice of determination. If such store, concern,
or State feels aggrieved by such final determination, it may obtain
judicial review thereof by filing a complaint against the United States
in the United States court for the district in which it resides or is
engaged in business, or, in the case of a retail food store or
wholesale food concern, in any court of record of the State having
competent jurisdiction, within 30 days after the date of delivery or
service of the final notice of determination upon it, requesting the
court to set aside such determination. The copy of the summons and
complaint required to be delivered to the official or agency whose
order is being attacked shall be sent to the Secretary or such person
or persons as the Secretary may designate to receive service of
process. The suit in the United States district court or State court
shall be a trial de novo by the court in which the court shall
determine the validity of the questioned administrative action in
issue. If the court determines that such administrative action is
invalid, it shall enter such judgment or order as it determines is in
accordance with the law and the evidence. During the pendency of such
judicial review, or any appeal therefrom, the administrative action
under review shall be and remain in full force and effect, unless on
application to the court on not less than ten days' notice, and after
hearing thereon and a consideration by the court of the applicant's
likelihood of prevailing on the merits and of irreparable injury, the
court temporarily stays such administrative action pending disposition
of such trial or appeal.
    (g) Violations and Enforcement.--(1) Subject to paragraph (2),
whoever knowingly uses, transfers, acquires, alters, or possesses
coupons in any manner contrary to this section or the regulations
issued pursuant to this section shall, if such coupons are of a value
of $5,000 or more, be guilty of a felony and shall be fined not more
than $250,000 or imprisoned for not more than 20 years, or both, and
shall, if such coupons are of a value of $100 or more, but less than
$5,000, be guilty of a felony and shall, upon the first conviction
thereof, be fined not more than $10,000 or imprisoned for not more than
5 years, or both, and, upon the second and any subsequent conviction
thereof, shall be imprisoned for not less than 6 months nor more than 5
years and may also be fined not more than $10,000 or, if such coupons
are of a value of less than $100, shall be guilty of a misdemeanor,
and, upon the first conviction thereof, shall be fined not more than
$1,000 or imprisoned for not more than one year, or both, and upon the
second and any subsequent conviction thereof, shall be imprisoned for
not more than one year and may also be fined not more than $1,000.
    (2) In the case of any individual convicted of an offense under
paragraph (1), the court may permit such individual to perform work
approved by the court for the purpose of providing restitution for
losses incurred by the United States and the State as a result of the
offense for which such individual was convicted. If the court permits
such individual to perform such work and such individual agrees
thereto, the court shall withhold the imposition of the sentence on the
condition that such individual perform the assigned work. Upon the
successful completion of the assigned work the court may suspend such
sentence.
    (3) Whoever presents, or causes to be presented, coupons for
payment or redemption of the value of $100 or more, knowing the same to
have been received, transferred, or used in any manner in violation of
this section or the regulations issued under this section, shall be
guilty of a felony and, upon the first conviction thereof, shall be
fined not more than $20,000 or imprisoned for not more than 5 years, or
both, and, upon the second and any subsequent conviction thereof, shall
be imprisoned for not less than one year nor more than 5 years and may
also be fined not more than $20,000, or, if such coupons are of a value
of less than $100, shall be guilty of a misdemeanor and, upon the first
conviction thereof, shall be fined not more than $1,000 or imprisoned
for not more than one year, or both, and, upon the second and any
subsequent conviction thereof, shall be imprisoned for not more than
one year and may also be fined not more than $1,000.

SEC. 503. AUTHORITY TO SELL FEDERAL SURPLUS COMMODITIES.

    Notwithstanding any other provision of law, the Secretary of
Agriculture and the Commodity Credit Corporation may sell surplus
commodities and surplus foodstuffs to the States to provide food
assistance to individuals who are economically disadvantaged and to
individuals who are members of economically disadvantaged families.

SEC. 504. DEFINITIONS.

    For purposes of this title--
            (1) the term ``breastfeeding woman'' means women up to 1
        year postpartum who are breastfeeding their infants,
            (2) the term ``coupon'' means any coupon, stamp, or type of
        certificate, but does not include currency,
            (3) the term ``economically disadvantaged'' means an
        individual or a family, as the case may be, whose income does
        not exceed the most recent lower living standard income level
        published by the Department of Labor,
            (4) the term ``elderly or disabled individual'' means an
        individual who--
                    (A) is 60 years of age or older,
                    (B)(i) receives supplemental security income
                benefits under title XVI of the Social Security Act (42
                U.S.C. 1381 et seq.), or Federally or State
                administered supplemental benefits of the type
                described in section 212(a) of Public Law 93-66 (42
                U.S.C. 1382 note), or
                    (ii) receives Federally or State administered
                supplemental assistance of the type described in
                section 1616(a) of the Social Security Act (42 U.S.C.
                1382e(a)), interim assistance pending receipt of
                supplemental security income, disability-related
                medical assistance under title XIX of the Social
                Security Act (42 U.S.C. 1396 et seq.), or disability-
                based State general assistance benefits, if the
                Secretary determines that such benefits are conditioned
                on meeting disability or blindness criteria at least as
                stringent as those used under title XVI of the Social
                Security Act,
                    (C) receives disability or blindness payments under
                title I, II, X, XIV, or XVI of the Social Security Act
                (42 U.S.C. 301 et seq.) or receives disability
                retirement benefits from a governmental agency because
                of a disability considered permanent under section
                221(i) of the Social Security Act (42 U.S.C. 421(i)),
                    (D) is a veteran who--
                            (i) has a service-connected or non-service-
                        connected disability which is rated as total
                        under title 38, United States Code, or
                            (ii) is considered in need of regular aid
                        and attendance or permanently housebound under
                        such title,
                    (E) is a surviving spouse of a veteran and--
                            (i) is considered in need of regular aid
                        and attendance or permanently housebound under
                        title 38, United States Code, or
                            (ii) is entitled to compensation for a
                        service-connected death or pension benefits for
                        a non-service-connected death under title 38,
                        United States Code, and has a disability
                        considered permanent under section 221(i) of
                        the Social Security Act (42 U.S.C. 421(i)),
                    (F) is a child of a veteran and--
                            (i) is considered permanently incapable of
                        self-support under section 414 of title 38,
                        United States Code, or
                            (ii) is entitled to compensation for a
                        service-connected death or pension benefits for
                        a non-service-connected death under title 38,
                        United States Code, and has a disability
                        considered permanent under section 221(i) of
                        the Social Security Act (42 U.S.C. 421(i)), or
                    (G) is an individual receiving an annuity under
                section 2(a)(1)(iv) or 2(a)(1)(v) of the Railroad
                Retirement Act of 1974 (45 U.S.C. 231a(a)(1)(iv) or
                231a(a)(1)(v)), if the individual's service as an
                employee under the Railroad Retirement Act of 1974,
                after December 31, 1936, had been included in the term
                ``employment'' as defined in the Social Security Act
                (42 U.S.C. 301 et seq.), and if an application for
                disability benefits had been filed,
            (5) the term ``food'' means, for purposes of section 502(a)
        only--
                    (A) any food or food product for home consumption
                except alcoholic beverages, tobacco, and hot foods or
                hot food products ready for immediate consumption other
                than those authorized pursuant to subparagraphs (C),
                (D), (E), (G), (H), and (I),
                    (B) seeds and plants for use in gardens to produce
                food for the personal consumption of the eligible
                individuals,
                    (C) in the case of those persons who are 60 years
                of age or over or who receive supplemental security
                income benefits or disability or blindness payments
                under title I, II, X, XIV, or XVI of the Social
                Security Act (42 U.S.C. 301 et seq.), and their
                spouses, meals prepared by and served in senior
                citizens' centers, apartment buildings occupied
                primarily by such persons, public or private nonprofit
                establishments (eating or otherwise) that feed such
                persons, private establishments that contract with the
                appropriate agency of the State to offer meals for such
                persons at concessional prices, and meals prepared for
                and served to residents of federally subsidized housing
                for the elderly,
                    (D) in the case of persons 60 years of age or over
                and persons who are physically or mentally handicapped
                or otherwise so disabled that they are unable
                adequately to prepare all of their meals, meals
                prepared for and delivered to them (and their spouses)
                at their home by a public or private nonprofit
                organization or by a private establishment that
                contracts with the appropriate State agency to perform
                such services at concessional prices,
                    (E) in the case of narcotics addicts or alcoholics,
                and their children, served by drug addiction or
                alcoholic treatment and rehabilitation programs, meals
                prepared and served under such programs,
                    (F) in the case of eligible individuals living in
                Alaska, equipment for procuring food by hunting and
                fishing, such as nets, hooks, rods, harpoons, and
                knives (but not equipment for purposes of
                transportation, clothing, or shelter, and not firearms,
                ammunition, and explosives) if the Secretary determines
                that such individuals are located in an area of the
                State where it is extremely difficult to reach stores
                selling food and that such individuals depend to a
                substantial extent upon hunting and fishing for
                subsistence,
                    (G) in the case of disabled or blind recipients of
                benefits under title I, II, X, XIV, or XVI of the
                Social Security Act (42 U.S.C. 301 et seq.), or are
                individuals described in subparagraphs (B) through (G)
                of paragraph (4), who are residents in a public or
                private nonprofit group living arrangement that serves
                no more than 16 residents and is certified by the
                appropriate State agency or agencies under regulations
                issued under section 1616(e) of the Social Security Act
                (42 U.S.C. 1382e(e)) or under standards determined by
                the Secretary to be comparable to standards implemented
                by appropriate State agencies under such section, meals
                prepared and served under such arrangement,
                    (H) in the case of women and children temporarily
                residing in public or private nonprofit shelters for
                battered women and children, meals prepared and served,
                by such shelters, and
                    (I) in the case of individuals that do not reside
                in permanent dwellings and individuals that have no
                fixed mailing addresses, meals prepared for and served
                by a public or private nonprofit establishment
                (approved by an appropriate State or local agency) that
                feeds such individuals and by private establishments
                that contract with the appropriate agency of the State
                to offer meals for such individuals at concessional
                prices,
            (6) the term ``infants'' means individuals under 1 year of
        age,
            (7) the term ``nonexempt individual'' means an individual
        who is not--
                    (A) a parent residing with a dependent child under
                18 years of age,
                    (B) a member of a family with responsibility for
                the care of an incapacitated family member,
                    (C) mentally or physically unfit,
                    (D) under 18 years of age, or
                    (E) 63 years of age or older,
            (8) the term ``postpartum women'' means women during the
        180-day period after the end of their pregnancy,
            (9) the term ``pregnant women'' means women who have one or
        more fetuses in utero,
            (10) the term ``retail food store'' means--
                    (A) an establishment or recognized department
                thereof or house-to-house trade route, over 50 percent
                of whose food sales volume, as determined by visual
                inspection, sales records, purchase records, or other
                inventory or accounting recordkeeping methods that are
                customary or reasonable in the retail food industry,
                consists of staple food items for home preparation and
                consumption, such as meat, poultry, fish, bread,
                cereals, vegetables, fruits, dairy products, and the
                like, but not including accessory food items, such as
                coffee, tea, cocoa, carbonated and uncarbonated drinks,
                candy, condiments, and spices,
                    (B) an establishment, organization, program, or
                group living arrangement referred to in subparagraph
                (C), (D), (E), (G), (H), or (I) of paragraph (5),
                    (C) a store purveying the hunting and fishing
                equipment described in paragraph (5)(F), or
                    (D) any private nonprofit cooperative food
                purchasing venture, including those in which the
                members pay for food purchased prior to the receipt of
                such food,
            (11) the term ``school'' means an elementary, intermediate,
        or secondary school,
            (12) the term ``Secretary'' means the Secretary of
        Agriculture,
            (13) the term ``State'' means any of the several States,
        the District of Columbia, the Commonwealth of Puerto Rico,
        Guam, the Virgin Islands of the United States, American Samoa,
        the Commonwealth of the Northern Mariana Islands, the Republic
        of the Marshall Islands, the Federated States of Micronesia,
        Palau, or a tribal organization that exercises governmental
        jurisdiction over a geographically defined area,
            (14) the term ``tribal organization'' has the meaning given
        it in section 4(l) of the Indian Self-Determination and
        Education Assistance Act (25 U.S.C. 450b(l)), and
            (15) the term ``young children'' means individuals who are
        not less than 1 year of age and not more than 5 years of age.

SEC. 505. REPEALERS; AMENDMENTS.

    (a) Repealers.--The following Acts are repealed:
            (1) The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
            (2) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et
        seq.).
            (3) The National School Lunch Act (42 U.S.C. 1751 et seq.)
            (4) The Emergency Food Assistance Act of 1983 (7 U.S.C.
        612c note).
            (5) The Hunger Prevention Act of 1988 (Public Law 100-435;
        102 Stat. 1645).
            (6) The Commodity Distribution Reform Act and WIC
        Amendments of 1987 (Public Law 100-237; 101 Stat. 1733).
            (7) The Child Nutrition and WIC Reauthorization Act of 1989
        (Public Law 101-147; 103 Stat. 877).
    (b) Amendments.--
            (1) The Older Americans Act of 1965 (42 U.S.C. 3030a et
        seq.) is amended by striking sections 303(b) and 311, and part
        C of title III.
            (2) Section 32 of the Act of August 24, 1935 (Public Law
        320; 7 U.S.C. 612C) is amended--
                    (A) in the first undesignated paragraph--
                            (i) by striking ``30 per centum'' and
                        inserting ``1.5 per centum'', and
                            (ii) by striking ``; (2)'' and all that
                        follows through ``Agriculture;'', and
                    (B) by striking the last sentence.
            (3) The Agriculture and Consumer Protection Act of 1973 (7
        U.S.C. 612c note) is amended by striking sections 4 and 5.
            (4) The Agriculture and Food Act of 1981 (7 U.S.C. 1431) is
        amended by striking section 1114.
            (5) Section 402 of the Mutual Security Act of 1954 (22
        U.S.C. 1922) is amended by striking the last sentence.
            (6) The Act of September 6, 1958 (Public Law 83-931; 7
        U.S.C. 1431b) is amended by striking section 9.
            (7) The Agricultural Act of 1965 (7 U.S.C. 1446a-1) is
        amended by striking section 709.

SEC. 506. EFFECTIVE DATE; APPLICATION OF REPEALERS AND AMENDMENTS.

    (a) Effective Dates.--
            (1) General effective date.--Except as provided in
        subsection (b), this title and the amendments made by this
        title shall take effect on the date of the enactment of this
        Act.
            (2) Special effective date.--The repeals made by section
        505(a) shall not take effect until the first day of the first
        fiscal year for which funds are appropriated more than 180 days
        in advance of such fiscal year to carry out section 501.
    (b) Application of Repealers and Amendments.--A repeal or amendment
made by section 505 shall not apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties,
        or obligations applicable to financial assistance provided
        under the Act repealed or amended before the effective date of
        such repeal or amendment, and
            (2) administrative actions and proceedings commenced before
        such date, or authorized before such date to be commenced,
        under such Acts.

          TITLE VI--EXPANDING STATUTORY FLEXIBILITY OF STATES

SEC. 601. OPTION TO CONVERT AFDC INTO A BLOCK GRANT PROGRAM.

    Section 403 of the Social Security Act (42 U.S.C. 603) is amended
by inserting after subsection (b) the following:
    ``(c)(1) Any State that has in effect a plan approved under part D
and is operating a child support program in substantial compliance with
that plan may elect to receive payments under this subsection in lieu
of receiving payments under the other subsections of this section.
    ``(2) If a State makes an election under paragraph (1), then, in
lieu of any payment under any other subsection of this section, the
Secretary shall make payments to the State under this subsection for
each fiscal year in an amount equal to 103 percent of the total amount
to which the State was entitled under this section for fiscal year
1992, subject to paragraph (5).
    ``(3) Each State to which an amount is paid under paragraph (2) for
a fiscal year shall expend the amount to carry out any program
established by the State to provide benefits to needy families with
dependent children.
    ``(4) Within 3 months after the end of each fiscal year, each State
that has made an election under paragraph (1) shall submit to the
Secretary a report that accounts for all expenditures of amounts paid
to the State under this subsection for the fiscal year.
    ``(5) The Secretary shall reduce by 20 percent the amount that
would otherwise be payable to a State under this subsection for a
fiscal year if the Secretary finds that the State has expended any
amount provided under this subsection for any purpose other than to
carry out a program of cash benefits to needy families with children.
    ``(6)(A) The regulations issued with respect to State plans and the
operation of State programs under this part (other than under section
402(a)(27), section 403(h), and this subsection) shall not apply to any
State that makes an election under paragraph (1).
    ``(B) Section 403(h) shall continue to apply to any State that
makes an election under paragraph (1).''.

SEC. 602. OPTION TO TREAT NEW RESIDENTS OF A STATE UNDER RULES OF
              FORMER STATE.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as
amended by titles I and IV of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (49);
            (2) by striking the period at the end of paragraph (50) and
        inserting ``; and''; and
            (3) by inserting after paragraph (50) the following:
            ``(51) at the option of the State, in the case of a family
        applying for aid under the State plan that has moved to the
        State from another jurisdiction of the United States that has a
        plan approved under this part or has made an election under
        section 403(c)(1), and has resided in the State for less than
        12 months consecutively, apply the rules that would have been
        applied by such other jurisdiction if the family had not moved
        from such other jurisdiction, in determining the eligibility of
        the family for benefits, and the amount of benefits payable to
        the family, under the State plan.''.

SEC. 603. OPTION TO IMPOSE PENALTY FOR FAILURE TO ATTEND SCHOOL.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as
amended by titles I and IV, and section 602, of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (50);
            (2) by striking the period at the end of paragraph (51) and
        inserting ``; and''; and
            (3) by inserting after paragraph (51) the following:
            ``(52) at the option of the State, provide that the aid
        otherwise payable under the plan to a family may be reduced by
        not more than $75 per month for each parent under 21 years of
        age who has not completed secondary school (or the equivalent)
        and each dependent child in the family who, during the
        immediately preceding month, has failed, without good cause (as
        defined by the State in consultation with the Secretary), to
        maintain minimum attendance (as defined by the State in
        consultation with the Secretary) at an educational
        institution.''.

SEC. 604. OPTION TO PROVIDE MARRIED COUPLE TRANSITION BENEFIT.

    (a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)), as amended by titles I and IV, and sections 602 and
603, of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (51);
            (2) by striking the period at the end of paragraph (52) and
        inserting ``; and''; and
            (3) by inserting after paragraph (52) the following:
            ``(53) at the option of the State, provide that--
                    ``(A) if a recipient of aid under the plan marries
                an individual who is not a parent of a child of the
                recipient and (but for this paragraph) the resulting
                family would have become ineligible for such aid by
                reason of the marriage, then the family shall remain
                eligible for aid under the plan, in an amount equal to
                50 percent of the aid payable to the recipient
                immediately before the marriage, for a period
                (specified by the State) of not more than 12 months,
                but only for so long as the income of the family is
                less than 150 percent of the income official poverty
                line (as defined by the Office of Management and
                Budget, and revised annually in accordance with section
                673(2) of the Omnibus Budget Reconciliation Act of
                1981) applicable to a family of the size involved; and
                    ``(B) if a recipient of aid under the plan marries
                an individual who is not a parent of a child of the
                recipient and the resulting family would (in the
                absence of this subparagraph) be eligible for such aid
                by reason of section 407, then the State may provide
                aid to the family in accordance with section 407 or
                subparagraph (A) of this paragraph, but not both.''.
    (b) Applicability.--The amendments made by subsection (a) shall
apply only with respect to individuals who first become recipients of
aid under State plans approved under part A of title IV of the Social
Security Act on or after the effective date of this Act.

SEC. 605. OPTION TO DISREGARD INCOME AND RESOURCES DESIGNATED FOR
              EDUCATION, TRAINING, AND EMPLOYABILITY, OR RELATED TO
              SELF-EMPLOYMENT.

    (a) Resource Disregards.--Section 402(a)(7)(B) of the Social
Security Act (42 U.S.C. 602(a)(7)(B)) is amended--
            (1) by striking ``or'' before ``(iv)''; and
            (2) by inserting ``(v) at the option of the State, in the
        case of a family receiving aid under the State plan (and a
        family not receiving such aid but which received such aid in at
        least 1 of the preceding 4 months or became ineligible for such
        aid during the preceding 12 months because of excessive
        earnings), any amount (determined by the State) not to exceed
        $10,000 in a qualified asset account (as defined in section
        406(i)) of the family, or (vi) at the option of the State, the
        first $10,000 of the net worth (assets reduced by liabilities
        with respect thereto) of all microenterprises (as defined in
        section 406(j)(1)) owned, in whole or in part, by such child,
        relative, or other individual, for a period not to exceed 2
        years'' before ``; and''.
    (b) Disregard of Income from Qualified Asset Accounts.--Section
402(a)(8)(A) of such Act (42 U.S.C. 602(a)(8)(A)) is amended--
            (1) by striking ``and'' at the end of clause (vii); and
            (2) by inserting after clause (viii) the following new
        clause:
                            ``(ix) at the option of the State, may
                        disregard any interest or income earned on a
                        qualified asset account (as defined in section
                        406(i)), and any qualified distribution (as
                        defined in section 406(i)(2)) from a qualified
                        asset account (as defined in section
                        406(i)(1)); and''.
    (c) Nonrecurring Lump Sum Exempt From Lump Sum Rule.--Section
402(a)(17) of such Act (42 U.S.C. 602(a)(17)) is amended by adding at
the end the following: ``; and, at the option of the State, that this
paragraph shall not apply to earned or unearned income received in a
month on a nonrecurring basis to the extent that such income is placed
in a qualified asset account (as defined in section 406(i)) the total
amounts in which, after such placement, does not exceed $10,000;''.
    (d) Only Net Profits of Microenterprise Treated as Income.--Section
402(a)(7) of such Act (42 U.S.C. 602(a)(7)), as amended by subsection
(a) of this section, is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the semicolon at the end of subparagraph
        (C) and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) at the option of the State, may take into
                consideration as earned income of the family of which
                the child is a member, only the net profits (as defined
                in section 406(j)(2)) of microenterprises (as defined
                in section 406(j)(1)) owned, in whole or in part, by
                such child, relative, or other individual, for a period
                not to exceed 2 years.''.
    (e) Definitions.--Section 406 of such Act (42 U.S.C. 606) is
amended by adding at the end the following:
    ``(i)(1) The term `qualified asset account' means a mechanism
approved by the State (such as individual retirement accounts, escrow
accounts, or savings bonds) that allows savings of a family receiving
aid to families with dependent children to be used for qualified
distributions.
    ``(2) The term `qualified distribution' means a distribution from a
qualified asset account for expenses directly related to 1 or more of
the following purposes:
            ``(A) The attendance of a member of the family at any
        education or training program.
            ``(B) The improvement of the employability (including self-
        employment) of a member of the family (such as through the
        purchase of an automobile).
            ``(C) The purchase of a home for the family.
            ``(D) A change of the family residence.
    ``(j)(1) The term `microenterprise' means a commercial enterprise
which has 5 or fewer employees, 1 or more of whom owns the enterprise.
    ``(2) The term `net profits' means, with respect to a
microenterprise, the gross receipts of the business, minus--
            ``(A) payments of principal or interest on a loan to the
        microenterprise;
            ``(B) transportation expenses;
            ``(C) inventory costs;
            ``(D) expenditures to purchase capital equipment;
            ``(E) cash retained by the microenterprise for future use
        by the business;
            ``(F) taxes paid by reason of the business;
            ``(G) if the business is covered under a policy of
        insurance against loss--
                    ``(i) the premiums paid for such insurance; and
                    ``(ii) the losses incurred by the business that are
                not reimbursed by the insurer solely by reason of the
                existence of a deductible with respect to the insurance
                policy;
            ``(H) the reasonable costs of obtaining 1 motor vehicle
        necessary for the conduct of the business; and
            ``(I) the other expenses of the business.''.

SEC. 606. OPTION TO REQUIRE ATTENDANCE AT PARENTING AND MONEY
              MANAGEMENT CLASSES, AND PRIOR APPROVAL OF ANY ACTION THAT
              WOULD RESULT IN A CHANGE OF SCHOOL FOR A DEPENDENT CHILD.

    (a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)), as amended by titles I and IV, and sections 602, 603,
and 604, of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (52);
            (2) by striking the period at the end of paragraph (53) and
        inserting ``; and''; and
            (3) by inserting after paragraph (53) the following:
            ``(54) at the option of the State, provide that, as a
        condition of receiving aid under the State plan, the receipient
        must attend parenting and money management classes, and must
        receive the permission of the State agency before taking any
        action that would require a change in the educational
        institution attended by a dependent child of the recipient.''.

             TITLE VII--DRUG TESTING FOR WELFARE RECIPIENTS

SEC. 701. AFDC RECIPIENTS REQUIRED TO UNDERGO NECESSARY SUBSTANCE ABUSE
              TREATMENT AS A CONDITION OF RECEIVING AFDC.

    (a) In General.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)) is amended by inserting after paragraph (34) the
following:
            ``(35) provide that--
                    ``(A) each applicant or recipient of aid under the
                State plan who is addicted (as determined by the State)
                to alcohol or drugs must agree to participate and
                maintain satisfactory participation (as determined by
                the State) in an appropriate addiction treatment
                program (if available), and must agree to submit to
                tests for the presence of alcohol or drugs, without
                advance notice, during and after such participation;
                and
                    ``(B) during the 2-year period that begins with any
                failure by such an applicant or recipient to comply
                with any requirement imposed pursuant to subparagraph
                (A), the applicant or recipient shall not be eligible
                for such aid, but shall be considered to be receiving
                such aid for purposes of eligibility for medical
                assistance under the State plan approved under title
                XIX.''.
    (b) Delayed Applicability Permitted if State Legislation
Required.--In the case of a State plan approved under section 402(a) of
the Social Security Act which the Secretary of Health and Human
Services determines requires State legislation (other than legislation
appropriating funds) in order for the plan to meet the additional
requirement imposed by the amendment made by subsection (a) of this
section, the State plan shall not be regarded as failing to comply with
the requirements of such section 402(a) solely on the basis of the
failure of the plan to meet such additional requirement before the end
of the 2-year period that begins with the effective date of this Act.

                       TITLE VIII--EFFECTIVE DATE

SEC. 801. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on
October 1, 1995.
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Official legislative text sourced from the public record (cached on CivicsHQ).

Official source

View the original bill, actions, and full legislative record on Congress.gov.

View on Congress.govopen_in_new

Status

Vetoed

This bill did not complete the normal legislative path (vetoed).

Timeline reflects current normalized status only. Full action history is not yet stored in the API.

Cosponsors

Votes

SenateRoll Call 613Dec 22, 1995

Senate agreed to conference report by Yea-Nay Vote. 52-47. Record Vote No: 613. (consideration: CR S19181)

Vote totals recorded, but member positions were not captured.

HouseRoll Call 877Dec 21, 1995

On agreeing to the conference report Agreed to by recorded vote: 245 - 178 (Roll no. 877). (consideration: CR H15533)

Vote totals recorded, but member positions were not captured.

HouseRoll Call 876Dec 21, 1995

On motion to recommit with instructions to conference committee Failed by recorded vote: 192 - 231 (Roll no. 876). (consideration: CR H15533)

Vote totals recorded, but member positions were not captured.

HouseRoll Call 875Dec 21, 1995

On motion to table the motion to appeal the ruling of the Chair Agreed to by the Yeas and Nays: 240 - 182 (Roll no. 875).

Vote totals recorded, but member positions were not captured.

SenateRoll Call 443Sep 19, 1995

Passed Senate with an amendment and an amendment to the Title by Yea-Nay Vote. 87-12. Record Vote No: 443.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 442Sep 19, 1995

Amendment SP 2683 as modified agreed to in Senate by Yea-Nay Vote. 87-12. Record Vote No: 442.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 441Sep 19, 1995

Amendment SP 2615 agreed to in Senate by Yea-Nay Vote. 50-49. Record Vote No: 441.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 438Sep 15, 1995

Amendment SP 2682 not agreed to in Senate by Yea-Nay Vote. 44-48. Record Vote No: 438.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 437Sep 15, 1995

Motion to strike previously agreed to amendment (SP 2496) agreed to by Yea-Nay Vote. 50-44. Record Vote No: 437.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 436Sep 15, 1995

Motion to table SP 2615 rejected in Senate by Yea-Nay Vote. 49-49. Record Vote No: 436.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 435Sep 15, 1995

Motion to table SP 2617 agreed to in Senate by Yea-Nay Vote. 51-47. Record Vote No: 435.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 434Sep 15, 1995

Amendment SP 2568 not agreed to in Senate by Yea-Nay Vote. 23-76. Record Vote No: 434.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 433Sep 15, 1995

Amendment SP 2509 not agreed to in Senate by Yea-Nay Vote. 35-64. Record Vote No: 433.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 432Sep 15, 1995

Amendment SP 2550 not agreed to in Senate by Yea-Nay Vote. 47-53. Record Vote No: 432.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 431Sep 15, 1995

Amendment SP 2505 not agreed to in Senate by Yea-Nay Vote. 49-51. Record Vote No: 431.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 430Sep 15, 1995

Amendment SP 2468 not agreed to in Senate by Yea-Nay Vote. 37-63. Record Vote No: 430.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 429Sep 15, 1995

Amendment SP 2484 not agreed to in Senate by Yea-Nay Vote. 41-58. Record Vote No: 429.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 428Sep 15, 1995

Amendment SP 2513 not agreed to in Senate by Yea-Nay Vote. 20-78. Record Vote No: 428.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 427Sep 15, 1995

Amendment SP 2478 not agreed to in Senate by Yea-Nay Vote. 37-61. Record Vote No: 427.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 426Sep 15, 1995

Amendment SP 2669 not agreed to in Senate by Yea-Nay Vote. 34-64. Record Vote No: 426.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 425Sep 15, 1995

Amendment SP 2526 agreed to in Senate by Yea-Nay Vote. 93-5. Record Vote No: 425.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 424Sep 14, 1995

Amendment SP 2525 as modified agreed to in Senate by Yea-Nay Vote. 94-6. Record Vote No: 424.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 423Sep 14, 1995

Amendment SP 2581 not agreed to in Senate by Yea-Nay Vote. 37-63. Record Vote No: 423.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 422Sep 14, 1995

Amendment SP 2609 not agreed to in Senate by Yea-Nay Vote. 17-83. Record Vote No: 422.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 421Sep 13, 1995

SP 2586 (Division II) was agreed to by Yea-Nay. 59-41. Record Vote No: 421.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 420Sep 13, 1995

Amendment SP 2592 as modified agreed to in Senate by Yea-Nay Vote. 100-0. Record Vote No: 420.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 419Sep 13, 1995

Amendment SP 2603 not agreed to in Senate by Yea-Nay Vote. 24-76. Record Vote No: 419.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 418Sep 13, 1995

Amendment SP 2668 agreed to in Senate by Yea-Nay Vote. 55-45. Record Vote No: 418.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 417Sep 13, 1995

Amendment SP 2671 not agreed to in Senate by Yea-Nay Vote. 38-62. Record Vote No: 417.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 416Sep 13, 1995

Amendment SP 2575 as modified agreed to in Senate by Yea-Nay Vote. 66-34. Record Vote No: 416.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 415Sep 13, 1995

Amendment SP 2565 not agreed to in Senate by Yea-Nay Vote. 34-66. Record Vote No: 415.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 414Sep 13, 1995

Amendment SP 2472 not agreed to in Senate by Yea-Nay Vote. 40-60. Record Vote No: 414.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 413Sep 13, 1995

Amendment SP 2471 not agreed to in Senate by Yea-Nay Vote. 42-58. Record Vote No: 413.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 412Sep 12, 1995

Amendment SP 2562 not agreed to in Senate by Yea-Nay Vote. 36-64. Record Vote No: 412.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 411Sep 12, 1995

Motion to table SP 2488 agreed to in Senate by Yea-Nay Vote. 50-49. Record Vote No: 411.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 410Sep 12, 1995

Amendment SP 2469 not agreed to in Senate by Yea-Nay Vote. 40-59. Record Vote No: 410.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 409Sep 12, 1995

Amendment SP 2529 not agreed to in Senate by Yea-Nay Vote. 44-54. Record Vote No: 409.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 408Sep 11, 1995

Amendment SP 2523 not agreed to in Senate by Yea-Nay Vote. 32-66. Record Vote No: 408.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 407Sep 11, 1995

Amendment SP 2522 agreed to in Senate by Yea-Nay Vote. 76-22. Record Vote No: 407.

Vote totals recorded, but member positions were not captured.

SenateRoll Call 406Sep 11, 1995

Motion to table SP 2560 agreed to in Senate by Yea-Nay Vote. 50-48. Record Vote No: 406.

Vote totals recorded, but member positions were not captured.