104th Congress H. R. 4  As Introduced in the House

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      The printed Bill and Resolution produced by the Government Printing
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VERSION   As Introduced in the House
CONGRESS  104th CONGRESS
           1st Session
BILL                                    H. R. 4
TITLE     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
                                  --------------------
TEXT                                     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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