(a) Subsection (b) of section 508 of the Unemployment Compensation Amendments of 1976 (42 U.S.C. 603a; Public Law 94-566; 90 Stat. 2689) is amended to read as follows:

'(b) PROVISION FOR REIMBURSEMENT OF EXPENSES.--For purposes of section 455 of the Social Security Act, expenses incurred to reimburse State employment offices for furnishing information requested of such offices--

'(1) pursuant to the third sentence of section 3(a) of the Act entitled 'An Act to provide for the establishment of a national employment system and for cooperation with the States in the promotion of such system, and for other purposes', approved June 6, 1933 (29 U.S.C. 49b(a)), or

'(2) by a State or local agency charged with the duty of carrying a State plan for child support approved under part D of title IV of the Social Security Act,

shall be considered to constitute expenses incurred in the administration of such State plan.'.

(b) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 602 note) is repealed.

(d) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 (42 U.S.C. 602 note), relating to treatment under AFDC of certain rental payments for federally assisted housing, is repealed.

(e) Section 159 of the Tax Equity and Fiscal Responsibility Act of 1982 (42 U.S.C. 602 note) is repealed.

(f) Section 202(d) of the Social Security Amendments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.

(g) Section 903 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), relating to demonstration projects to reduce number of AFDC families in welfare hotels, is amended--

(1) in subsection (a), by striking 'aid to families with dependent children under a State plan approved' and inserting 'assistance under a State program funded'; and

(2) in subsection (c), by striking 'aid to families with dependent children in the State under a State plan approved' and inserting 'assistance in the State under a State program funded'.

(h) The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended--

(1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by striking '(Aid to Families with Dependent Children)'; and

(2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by striking 'aid to families with dependent children under a State plan approved' and inserting 'assistance under a State program funded'.

(i) The Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.) is amended--

(1) in section 231(d)(3)(A)(ii) (20 U.S.C. 2341(d)(3)(A)(ii)), by striking 'The program for aid to dependent children' and inserting 'The State program funded';

(2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by striking 'the program for aid to families with dependent children' and inserting 'the State program funded'; and

(3) in section 521(14)(B)(iii) (20 U.S.C. 2471(14)(B)(iii)), by striking 'the program for aid to families with dependent children' and inserting 'the State program funded'.

(j) The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 et seq.) is amended--

(1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by striking 'Aid to Families with Dependent Children program' and inserting 'State program funded under part A of title IV of the Social Security Act';

(2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by striking 'the program of aid to families with dependent children under a State plan approved under' and inserting 'a State program funded under part A of'; and

(3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--

(A) in subparagraph (A)(xi), by striking 'Aid to Families with Dependent Children benefits' and inserting 'assistance under a State program funded under part A of title IV of the Social Security Act'; and

(B) in subparagraph (B)(viii), by striking 'Aid to Families with Dependent Children' and inserting 'assistance under the State program funded under part A of title IV of the Social Security Act'.

(k) The 4th proviso of chapter VII of title I of Public Law 99-88 (25 U.S.C. 13d-1) is amended to read as follows:

'Provided further, That general assistance payments made by the Bureau of Indian Affairs shall be made--

'(1) after April 29, 1985, and before October 1, 1995, on the basis of Aid to Families with Dependent Children (AFDC) standards of need; and

'(2) on and after October 1, 1995, on the basis of standards of need established under the State program funded under part A of title IV of the Social Security Act,

except that where a State ratably reduces its AFDC or State program payments, the Bureau shall reduce general assistance payments in such State by the same percentage as the State has reduced the AFDC or State program payment.'.

(l) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is amended--

(1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking all that follows 'agency as' and inserting 'being eligible for financial assistance under part A of title IV of the Social Security Act and as having continually received such financial assistance during the 90-day period which immediately precedes the date on which such individual is hired by the employer.';

(2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by striking 'eligibility for aid or services,' and all that follows through 'children approved' and inserting 'eligibility for assistance, or the amount of such assistance, under a State program funded';

(3) in section 6103(l)(7)(D)(i) (26 U.S.C. 6103(l)(7)(D)(i)), by striking 'aid to families with dependent children provided under a State plan approved' and inserting 'a State program funded';

(4) in section 6103(l)(10) (26 U.S.C. 6103(l)(10))--

(A) by striking '(c) or (d)' each place it appears and inserting '(c), (d), or (e)'; and

(B) by adding at the end of subparagraph (B) the following new sentence: 'Any return information disclosed with respect to section 6402(e) shall only be disclosed to officers and employees of the State agency requesting such information.';

(5) in section 6103(p)(4) (26 U.S.C. 6103(p)(4)), in the matter preceding subparagraph (A)--

(A) by striking '(5), (10)' and inserting '(5)'; and

(B) by striking '(9), or (12)' and inserting '(9), (10), or (12)';

(6) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), by striking '(relating to aid to families with dependent children)';

(7) in section 6402 (26 U.S.C. 6402)--

(A) in subsection (a), by striking '(c) and (d)' and inserting '(c), (d), and (e)';

(B) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and

'(e) COLLECTION OF OVERPAYMENTS UNDER TITLE IV-A OF THE SOCIAL SECURITY ACT.--The amount of any overpayment to be refunded to the person making the overpayment shall be reduced (after reductions pursuant to subsections (c) and (d), but before a credit against future liability for an internal revenue tax) in accordance with section 405(e) of the Social Security Act (concerning recovery of overpayments to individuals under State plans approved under part A of title IV of such Act).'; and

(8) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by striking 'aid to families with dependent children' and inserting 'assistance under a State program funded under part A of title IV of the Social Security Act'.

(m) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is amended by striking 'State plan approved under part A of title IV' and inserting 'State program funded under part A of title IV'.

(n) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is amended--

(1) in section 4(29)(A)(i) (29 U.S.C. 1503(29)(A)(i)), by striking '(42 U.S.C. 601 et seq.)';

(2) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by striking 'State aid to families with dependent children records,' and inserting 'records collected under the State program funded under part A of title IV of the Social Security Act,';

(3) in section 121(b)(2) (29 U.S.C. 1531(b)(2))--

(A) by striking 'the JOBS program' and inserting 'the work activities required under title IV of the Social Security Act'; and

(B) by striking the second sentence;

(4) in section 123(c) (29 U.S.C. 1533(c))--

(A) in paragraph (1)(E), by repealing clause (vi); and

(B) in paragraph (2)(D), by repealing clause (v);

(5) in section 203(b)(3) (29 U.S.C. 1603(b)(3)), by striking ', including recipients under the JOBS program';

(6) in subparagraphs (A) and (B) of section 204(a)(1) (29 U.S.C. 1604(a)(1)(A) and (B)), by striking '(such as the JOBS program)' each place it appears;

(7) in section 205(a) (29 U.S.C. 1605(a)), by striking paragraph (4) and inserting the following:

'(4) the portions of title IV of the Social Security Act relating to work activities;';

(8) in section 253 (29 U.S.C. 1632)--

(A) in subsection (b)(2), by repealing subparagraph (C); and

(B) in paragraphs (1)(B) and (2)(B) of subsection (c), by striking 'the JOBS program or' each place it appears;

(9) in section 264 (29 U.S.C. 1644)--

(A) in subparagraphs (A) and (B) of subsection (b)(1), by striking '(such as the JOBS program)' each place it appears; and

(B) in subparagraphs (A) and (B) of subsection (d)(3), by striking 'and the JOBS program' each place it appears;

(10) in section 265(b) (29 U.S.C. 1645(b)), by striking paragraph (6) and inserting the following:

'(6) the portion of title IV of the Social Security Act relating to work activities;';

(11) in the second sentence of section 429(e) (29 U.S.C. 1699(e)), by striking 'and shall be in an amount that does not exceed the maximum amount that may be provided by the State pursuant to section 402(g)(1)(C) of the Social Security Act (42 U.S.C. 602(g)(1)(C))';

(12) in section 454(c) (29 U.S.C. 1734(c)), by striking 'JOBS and';

(13) in section 455(b) (29 U.S.C. 1735(b)), by striking 'the JOBS program,';

(14) in section 501(1) (29 U.S.C. 1791(1)), by striking 'aid to families with dependent children under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)' and inserting 'assistance under the State program funded under part A of title IV of the Social Security Act';

(15) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by striking 'aid to families with dependent children' and inserting 'assistance under the State program funded';

(16) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by striking 'aid to families with dependent children' and inserting 'assistance under the State program funded'; and

(17) in section 701(b)(2)(A) (29 U.S.C. 1792(b)(2)(A))--

(A) in clause (v), by striking the semicolon and inserting '; and'; and

(B) by striking clause (vi).

(o) Section 3803(c)(2)(C)(iv) of title 31, United States Code, is amended to read as follows:

'(iv) assistance under a State program funded under part A of title IV of the Social Security Act;'.

(p) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is amended to read as follows:

'(i) assistance under the State program funded under part A of title IV of the Social Security Act;'.

(q) Section 303(f)(2) of the Family Support Act of 1988 (42 U.S.C. 602 note) is amended--

(1) by striking '(A)'; and

(2) by striking subparagraphs (B) and (C).

(r) The Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is amended--

(1) in the first section 255(h) (2 U.S.C. 905(h)), by striking 'Aid to families with dependent children (75-0412-0-1-609);' and inserting 'Block grants to States for temporary assistance for needy families;'; and

(2) in section 256 (2 U.S.C. 906)--

(A) by striking subsection (k); and

(B) by redesignating subsection (l) as subsection (k).

(s) The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended--

(1) in section 210(f) (8 U.S.C. 1160(f)), by striking 'aid under a State plan approved under' each place it appears and inserting 'assistance under a State program funded under';

(2) in section 245A(h) (8 U.S.C. 1255a(h))--

(A) in paragraph (1)(A)(i), by striking 'program of aid to families with dependent children' and inserting 'State program of assistance'; and

(B) in paragraph (2)(B), by striking 'aid to families with dependent children' and inserting 'assistance under a State program funded under part A of title IV of the Social Security Act'; and

(3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking 'State plan approved' and inserting 'State program funded'.

(t) Section 640(a)(4)(B)(i) of the Head Start Act (42 U.S.C. 9835(a)(4)(B)(i)) is amended by striking 'program of aid to families with dependent children under a State plan approved' and inserting 'State program of assistance funded'.

(u) Section 9 of the Act of April 19, 1950 (64 Stat. 47, chapter 92; 25 U.S.C. 639) is repealed.

(v) Subparagraph (E) of section 213(d)(6) of the School-To-Work Opportunities Act of 1994 (20 U.S.C. 6143(d)(6)) is amended to read as follows:

'(E) part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) relating to work activities;'.

(w) Section 552a(a)(8)(B)(iv)(III) of title 5, United States Code, is amended by striking 'section 464 or 1137 of the Social Security Act' and inserting 'section 404(e), 464, or 1137 of the Social Security Act'.

* * * * * * *

SEC. 116. EFFECTIVE DATE; TRANSITION RULE.

(a) EFFECTIVE DATES.--

(1) IN GENERAL.--Except as otherwise provided in this title, this title and the amendments made by this title shall take effect on July 1, 1997.

(2) DELAYED EFFECTIVE DATE FOR CERTAIN PROVISIONS.--Notwithstanding any other provision of this section, paragraphs (2), (3), (4), (5), (8), and (10) of section 409(a) and section 411(a) of the Social Security Act (as added by the amendments made by section 103(a) of this Act) shall not take effect with respect to a State until, and shall apply only with respect to conduct that occurs on or after, the later of--

(A) July 1, 1997; or

(B) the date that is 6 months after the date the Secretary of Health and Human Services receives from the State a plan described in section 402(a) of the Social Security Act (as added by such amendment).

(3) GRANTS TO OUTLYING AREAS.--The amendments made by section 103(b) shall take effect on October 1, 1996.

(4) ELIMINATION OF CHILD CARE PROGRAMS.--The amendments made by section 103(c) shall take effect on October 1, 1996.

(5) DEFINITIONS APPLICABLE TO NEW CHILD CARE ENTITLEMENT.--Sections 403(a)(1)(C), 403(a)(1)(D), and 419(4) of the Social Security Act, as added by the amendments made by section 103(a) of this Act, shall take effect on October 1, 1996.

(b) TRANSITION RULES.--Effective on the date of the enactment of this Act:

(1) STATE OPTION TO ACCELERATE EFFECTIVE DATE.--

(A) IN GENERAL.--If the Secretary of Health and Human Services receives from a State a plan described in section 402(a) of the Social Security Act (as added by the amendment made by section 103(a)(1) of this Act), then--

(i) on and after the date of such receipt--

(I) except as provided in clause (ii), this title and the amendments made by this title (other than by section 103(c) of this Act) shall apply with respect to the State; and

(II) the State shall be considered an eligible State for purposes of part A of title IV of the Social Security Act (as in effect pursuant to the amendments made by such section 103(a)); and

(ii) during the period that begins on the date of such receipt and ends on June 30, 1997, there shall remain in effect with respect to the State--

(I) section 403(h) of the Social Security Act (as in effect on September 30, 1995); and

(II) all State reporting requirements under parts A and F of title IV of the Social Security Act (as in effect on September 30, 1995), modified by the Secretary as appropriate, taking into account the State program under part A of title IV of the Social Security Act (as in effect pursuant to the amendments made by such section 103(a)).

(B) LIMITATIONS ON FEDERAL OBLIGATIONS.--

(i) UNDER AFDC PROGRAM.--The total obligations of the Federal Government to a State under part A of title IV of the Social Security Act (as in effect on September 30, 1995) with respect to expenditures in fiscal year 1997 shall not exceed an amount equal to the State family assistance grant.

(ii) UNDER TEMPORARY FAMILY ASSISTANCE PROGRAM.--Notwithstanding section 403(a)(1) of the Social Security Act (as in effect pursuant to the amendments made by section 103(a) of this Act), the total obligations of the Federal Government to a State under such section 403(a)(1)--

(I) for fiscal year 1996, shall be an amount equal to--

(aa) the State family assistance grant; multiplied by

(bb) 1/366 of the number of days during the period that begins on the date the Secretary of Health and Human Services first receives from the State a plan described in section 402(a) of the Social Security Act (as added by the amendment made by section 103(a)(1) of this Act) and ends on September 30, 1996; and

(II) for fiscal year 1997, shall be an amount equal to the lesser of--

(aa) the amount (if any) by which the State family assistance grant exceeds the total obligations of the Federal Government to the State under part A of title IV of the Social Security Act (as in effect on September 30, 1995) with respect to expenditures in fiscal year 1997; or

(bb) the State family assistance grant, multiplied by 1/365 of the number of days during the period that begins on October 1, 1996, or the date the Secretary of Health and Human Services first receives from the State a plan described in section 402(a) of the Social Security Act (as added by the amendment made by section 103(a)(1) of this Act), whichever is later, and ends on September 30, 1997.

(iii) CHILD CARE OBLIGATIONS EXCLUDED IN DETERMINING FEDERAL AFDC OBLIGATIONS.--As used in this subparagraph, the term 'obligations of the Federal Government to the State under part A of title IV of the Social Security Act' does not include any obligation of the Federal Government with respect to child care expenditures by the State.

(C) SUBMISSION OF STATE PLAN FOR FISCAL YEAR 1996 OR 1997 DEEMED ACCEPTANCE OF GRANT LIMITATIONS AND FORMULA AND TERMINATION OF AFDC ENTITLEMENT.--The submission of a plan by a State pursuant to subparagraph (A) is deemed to constitute--

(i) the State's acceptance of the grant reductions under subparagraph (B) (including the formula for computing the amount of the reduction); and

(ii) the termination of any entitlement of any individual or family to benefits or services under the State AFDC program.

(D) DEFINITIONS.--As used in this paragraph:

(i) STATE AFDC PROGRAM.--The term 'State AFDC program' means the State program under parts A and F of title IV of the Social Security Act (as in effect on September 30, 1995).

(ii) STATE.--The term 'State' means the 50 States and the District of Columbia.

(iii) STATE FAMILY ASSISTANCE GRANT.--The term 'State family assistance grant' means the State family assistance grant (as defined in section 403(a)(1)(B) of the Social Security Act, as added by the amendment made by section 103(a)(1) of this Act).

(2) CLAIMS, ACTIONS, AND PROCEEDINGS.--The amendments made by this title shall not apply with respect to--

(A) powers, duties, functions, rights, claims, penalties, or obligations applicable to aid, assistance, or services provided before the effective date of this title under the provisions amended; and

(B) administrative actions and proceedings commenced before such date, or authorized before such date to be commenced, under such provisions.

(3) CLOSING OUT ACCOUNT FOR THOSE PROGRAMS TERMINATED OR SUBSTANTIALLY MODIFIED BY THIS TITLE.--In closing out accounts, Federal and State officials may use scientifically acceptable statistical sampling techniques. Claims made with respect to State expenditures under a State plan approved under part A of title IV of the Social Security Act (as in effect on September 30, 1995) with respect to assistance or services provided on or before September 30, 1995, shall be treated as claims with respect to expenditures during fiscal year 1995 for purposes of reimbursement even if payment was made by a State on or after October 1, 1995. Each State shall complete the filing of all claims under the State plan (as so in effect) within 2 years after the date of the enactment of this Act. The head of each Federal department shall--

(A) use the single audit procedure to review and resolve any claims in connection with the close out of programs under such State plans; and

(B) reimburse States for any payments made for assistance or services provided during a prior fiscal year from funds for fiscal year 1995, rather than from funds authorized by this title.

(4) CONTINUANCE IN OFFICE OF ASSISTANT SECRETARY FOR FAMILY SUPPORT.--The individual who, on the day before the effective date of this title, is serving as Assistant Secretary for Family Support within the Department of Health and Human Services shall, until a successor is appointed to such position--

(A) continue to serve in such position; and

(B) except as otherwise provided by law--

(i) continue to perform the functions of the Assistant Secretary for Family Support under section 417 of the Social Security Act (as in effect before such effective date); and

(ii) have the powers and duties of the Assistant Secretary for Family Support under section 416 of the Social Security Act (as in effect pursuant to the amendment made by section 103(a)(1) of this Act).

(c) TERMINATION OF ENTITLEMENT UNDER AFDC PROGRAM.--Effective October 1, 1996, no individual or family shall be entitled to any benefits or services under any State plan approved under part A or F of title IV of the Social Security Act (as in effect on September 30, 1995).

* * * * * * *

TITLE III--CHILD SUPPORT

* * * * * * *

Subtitle B--Locate and Case Tracking

* * * * * * *

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

(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS AND ASSETS.--Section 453 (42 U.S.C. 653) is amended--

(1) in subsection (a), by striking all that follows 'subsection (c))' and inserting

', for the purpose of establishing parentage, establishing, setting the amount of, modifying, or enforcing child support obligations, or enforcing child custody or visitation orders--

'(1) information on, or facilitating the discovery of, the location of any individual--

'(A) who is under an obligation to pay child support or provide child custody or visitation rights;

'(B) against whom such an obligation is sought;

'(C) to whom such an obligation is owed,

including the individual's social security number (or numbers), most recent address, and the name, address, and employer identification number of the individual's employer;

'(2) information on the individual's wages (or other income) from, and benefits of, employment (including rights to or enrollment in group health care coverage); and

'(3) information on the type, status, location, and amount of any assets of, or debts owed by or to, any such individual.'; and

'(2) in subsection (b)--

'(A) in the matter preceding paragraph (1), by striking 'social security' and all that follows through 'absent parent' and inserting 'information described in subsection (a)'; and

'(B) in the flush paragraph at the end, by adding the following:

'No information shall be disclosed to any person if the State has notified the Secretary that the State has reasonable evidence of domestic violence or child abuse and the disclosure of such information could be harmful to the custodial parent or the child of such parent. Information received or transmitted pursuant to this section shall be subject to the safeguard provisions contained in section 454(26).'.

(b) AUTHORIZED PERSON FOR INFORMATION REGARDING VISITATION RIGHTS.--Section 453(c) (42 U.S.C. 653(c)) is amended--

(1) in paragraph (1), by striking 'support' and inserting 'support or to seek to enforce orders providing child custody or visitation rights'; and

(2) in paragraph (2), by striking ', or any agent of such court; and' and inserting 'or to issue an order against a resident parent for child custody or visitation rights, or any agent of such court;'.

(c) REIMBURSEMENT FOR INFORMATION FROM FEDERAL AGENCIES.--Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence by inserting 'in an amount which the Secretary determines to be reasonable payment for the information exchange (which amount shall not include payment for the costs of obtaining, compiling, or maintaining the information)' before the period.

(d) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.--Section 453 (42 U.S.C. 653) is amended by adding at the end the following new subsection:

'(g) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.--The Secretary may reimburse Federal and State agencies for the costs incurred by such entities in furnishing information requested by the Secretary under this section in an amount which the Secretary determines to be reasonable payment for the information exchange (which amount shall not include payment for the costs of obtaining, compiling, or maintaining the information).'.

(e) CONFORMING AMENDMENTS.--

(1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), and 663(f)) are each amended by inserting 'Federal' before 'Parent' each place such term appears.

(2) Section 453 (42 U.S.C. 653) is amended in the heading by adding 'FEDERAL' before 'PARENT'.

(f) NEW COMPONENTS.--Section 453 (42 U.S.C. 653), as amended by subsection (d) of this section, is amended by adding at the end the following new subsections:

'(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.--

'(1) IN GENERAL.--Not later than October 1, 1998, in order to assist States in administering programs under State plans approved under this part and programs funded under part A, and for the other purposes specified in this section, the Secretary shall establish and maintain in the Federal Parent Locator Service an automated registry (which shall be known as the 'Federal Case Registry of Child Support Orders'), which shall contain abstracts of support orders and other information described in paragraph (2) with respect to each case in each State case registry maintained pursuant to section 454A(e), as furnished (and regularly updated), pursuant to section 454A(f), by State agencies administering programs under this part.

'(2) CASE INFORMATION.--The information referred to in paragraph (1) with respect to a case shall be such information as the Secretary may specify in regulations (including the names, social security numbers or other uniform identification numbers, and State case identification numbers) to identify the individuals who owe or are owed support (or with respect to or on behalf of whom support obligations are sought to be established), and the State or States which have the case.

'(i) NATIONAL DIRECTORY OF NEW HIRES.--

'(1) IN GENERAL.--In order to assist States in administering programs under State plans approved under this part and programs funded under part A, and for the other purposes specified in this section, the Secretary shall, not later than October 1, 1997, establish and maintain in the Federal Parent Locator Service an automated directory to be known as the National Directory of New Hires, which shall contain the information supplied pursuant to section 453A(g)(2).

'(2) ENTRY OF DATA.--Information shall be entered into the data base maintained by the National Directory of New Hires within 2 business days of receipt pursuant to section 453A(g)(2).

'(3) ADMINISTRATION OF FEDERAL TAX LAWS.--The Secretary of the Treasury shall have access to the information in the National Directory of New Hires for purposes of administering section 32 of the Internal Revenue Code of 1986, or the advance payment of the earned income tax credit under section 3507 of such Code, and verifying a claim with respect to employment in a tax return.

'(4) LIST OF MULTISTATE EMPLOYERS.--The Secretary shall maintain within the National Directory of New Hires a list of multistate employers that report information regarding newly hired employees pursuant to section 453A(b)(1)(B), and the State which each such employer has designated to receive such information.

'(j) INFORMATION COMPARISONS AND OTHER DISCLOSURES.--

'(1) VERIFICATION BY SOCIAL SECURITY ADMINISTRATION.--

'(A) IN GENERAL.--The Secretary shall transmit information on individuals and employers maintained under this section to the Social Security Administration to the extent necessary for verification in accordance with subparagraph (B).

'(B) VERIFICATION BY SSA.--The Social Security Administration shall verify the accuracy of, correct, or supply to the extent possible, and report to the Secretary, the following information supplied by the Secretary pursuant to subparagraph (A):

'(i) The name, social security number, and birth date of each such individual.

'(ii) The employer identification number of each such employer.

'(2) INFORMATION COMPARISONS.--For the purpose of locating individuals in a paternity establishment case or a case involving the establishment, modification, or enforcement of a support order, the Secretary shall--

'(A) compare information in the National Directory of New Hires against information in the support case abstracts in the Federal Case Registry of Child Support Orders not less often than every 2 business days; and

'(B) within 2 business days after such a comparison reveals a match with respect to an individual, report the information to the State agency responsible for the case.

'(3) INFORMATION COMPARISONS AND DISCLOSURES OF INFORMATION IN ALL REGISTRIES FOR TITLE IV PROGRAM PURPOSES.--To the extent and with the frequency that the Secretary determines to be effective in assisting States to carry out their responsibilities under programs operated under this part and programs funded under part A, the Secretary shall--

'(A) compare the information in each component of the Federal Parent Locator Service maintained under this section against the information in each other such component (other than the comparison required by paragraph (2)), and report instances in which such a comparison reveals a match with respect to an individual to State agencies operating such programs; and

'(B) disclose information in such registries to such State agencies.

'(4) PROVISION OF NEW HIRE INFORMATION TO THE SOCIAL SECURITY ADMINISTRATION.--The National Directory of New Hires shall provide the Commissioner of Social Security with all information in the National Directory.

'(5) RESEARCH.--The Secretary may provide access to information reported by employers pursuant to section 453A(b) for research purposes found by the Secretary to be likely to contribute to achieving the purposes of part A or this part, but without personal identifiers.

'(k) FEES.--

'(1) FOR SSA VERIFICATION.--The Secretary shall reimburse the Commissioner of Social Security, at a rate negotiated between the Secretary and the Commissioner, for the costs incurred by the Commissioner in performing the verification services described in subsection (j).

'(2) FOR INFORMATION FROM STATE DIRECTORIES OF NEW HIRES.--The Secretary shall reimburse costs incurred by State directories of new hires in furnishing information as required by subsection (j)(3), at rates which the Secretary determines to be reasonable (which rates shall not include payment for the costs of obtaining, compiling, or maintaining such information).

'(3) FOR INFORMATION FURNISHED TO STATE AND FEDERAL AGENCIES.--A State or Federal agency that receives information from the Secretary pursuant to this section shall reimburse the Secretary for costs incurred by the Secretary in furnishing the information, at rates which the Secretary determines to be reasonable (which rates shall include payment for the costs of obtaining, verifying, maintaining, and comparing the information).

'(l) RESTRICTION ON DISCLOSURE AND USE.--Information in the Federal Parent Locator Service, and information resulting from comparisons using such information, shall not be used or disclosed except as expressly provided in this section, subject to section 6103 of the Internal Revenue Code of 1986.

'(m) INFORMATION INTEGRITY AND SECURITY.--The Secretary shall establish and implement safeguards with respect to the entities established under this section designed to--

'(1) ensure the accuracy and completeness of information in the Federal Parent Locator Service; and

'(2) restrict access to confidential information in the Federal Parent Locator Service to authorized persons, and restrict use of such information to authorized purposes.

'(n) FEDERAL GOVERNMENT REPORTING.--Each department, agency, and instrumentality of the United States shall on a quarterly basis report to the Federal Parent Locator Service the name and social security number of each employee and the wages paid to the employee during the previous quarter, except that such a report shall not be filed with respect to an employee of a department, agency, or instrumentality performing intelligence or counterintelligence functions, if the head of such department, agency, or instrumentality has determined that filing such a report could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.'.

(g) CONFORMING AMENDMENTS.--

(1) TO PART D OF TITLE IV OF THE SOCIAL SECURITY ACT.--

(A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as follows:

'(B) the Federal Parent Locator Service established under section 453;'.

(B) Section 454(13) (42 U.S.C.654(13)) is amended by inserting 'and provide that information requests by parents who are residents of other States be treated with the same priority as requests by parents who are residents of the State submitting the plan' before the semicolon.

(2) TO FEDERAL UNEMPLOYMENT TAX ACT.--Section 3304(a)(16) of the Internal Revenue Code of 1986 is amended--

(A) by striking 'Secretary of Health, Education, and Welfare' each place such term appears and inserting 'Secretary of Health and Human Services';

(B) in subparagraph (B), by striking 'such information' and all that follows and inserting 'information furnished under subparagraph (A) or (B) is used only for the purposes authorized under such subparagraph;';

(D) by redesignating subparagraph (B) as subparagraph (C); and

(E) by inserting after subparagraph (A) the following new subparagraph:

'(B) wage and unemployment compensation information contained in the records of such agency shall be furnished to the Secretary of Health and Human Services (in accordance with regulations promulgated by such Secretary) as necessary for the purposes of the National Directory of New Hires established under section 453(i) of the Social Security Act, and'.

(3) TO STATE GRANT PROGRAM UNDER TITLE III OF THE SOCIAL SECURITY ACT.--Subsection (h) of section 303 (42 U.S.C. 503) is amended to read as follows:

'(h)(1) The State agency charged with the administration of the State law shall, on a reimbursable basis--

'(A) disclose quarterly, to the Secretary of Health and Human Services, wage and claim information, as required pursuant to section 453(i)(1), contained in the records of such agency;

'(B) ensure that information provided pursuant to subparagraph (A) meets such standards relating to correctness and verification as the Secretary of Health and Human Services, with the concurrence of the Secretary of Labor, may find necessary; and

'(C) establish such safeguards as the Secretary of Labor determines are necessary to insure that information disclosed under subparagraph (A) is used only for purposes of section 453(i)(1) in carrying out the child support enforcement program under title IV.

'(2) Whenever the Secretary of Labor, after reasonable notice and opportunity for hearing to the State agency charged with the administration of the State law, finds that there is a failure to comply substantially with the requirements of paragraph (1), the Secretary of Labor shall notify such State agency that further payments will not be made to the State until the Secretary of Labor is satisfied that there is no longer any such failure. Until the Secretary of Labor is so satisfied, the Secretary shall make no future certification to the Secretary of the Treasury with respect to the State.

'(3) For purposes of this subsection--

'(A) the term 'wage information' means information regarding wages paid to an individual, the social security account number of such individual, and the name, address, State, and the Federal employer identification number of the employer paying such wages to such individual; and

'(B) the term 'claim information' means information regarding whether an individual is receiving, has received, or has made application for, unemployment compensation, the amount of any such compensation being received (or to be received by such individual), and the individual's current (or most recent) home address.'.

(4) DISCLOSURE OF CERTAIN INFORMATION TO AGENTS OF CHILD SUPPORT ENFORCEMENT AGENCIES.--

(A) IN GENERAL.--Paragraph (6) of section 6103(l) of the Internal Revenue Code of 1986 (relating to disclosure of return information to Federal, State, and local child support enforcement agencies) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:

'(B) DISCLOSURE TO CERTAIN AGENTS.--The following information disclosed to any child support enforcement agency under subparagraph (A) with respect to any individual with respect to whom child support obligations are sought to be established or enforced may be disclosed by such agency to any agent of such agency which is under contract with such agency to carry out the purposes described in subparagraph (C):

'(i) The address and social security account number (or numbers) of such individual.

'(ii) The amount of any reduction under section 6402(c) (relating to offset of past-due support against overpayments) in any overpayment otherwise payable to such individual.'.

(B) CONFORMING AMENDMENTS.--

(i) Paragraph (3) of section 6103(a) of such Code is amended by striking '(l)(12)' and inserting 'paragraph (6) or (12) of subsection (l)'.

(ii) Subparagraph (C) of section 6103(l)(6) of such Code, as redesignated by subsection (a), is amended to read as follows:

'(C) RESTRICTION ON DISCLOSURE.--Information may be disclosed under this paragraph only for purposes of, and to the extent necessary in, establishing and collecting child support obligations from, and locating, individuals owing such obligations.'.

(iii) The material following subparagraph (F) of section 6103(p)(4) of such Code is amended by striking 'subsection (l)(12)(B)' and inserting 'paragraph (6)(A) or (12)(B) of subsection (l)'.

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

* * * * * * *

Subtitle G--Enforcement of Support Orders

SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

(a) COLLECTION OF FEES.--Section 6305(a) of the Internal Revenue Code of 1986 (relating to collection of certain liability) is amended--

(1) by striking 'and' at the end of paragraph (3);

(2) by striking the period at the end of paragraph (4) and inserting ', and';

(3) by adding at the end the following new paragraph:

'(5) no additional fee may be assessed for adjustments to an amount previously certified pursuant to such section 452(b) with respect to the same obligor.'; and

(4) by striking 'Secretary of Health, Education, and Welfare' each place it appears and inserting 'Secretary of Health and Human Services'.

(b) EFFECTIVE DATE.--The amendments made by this section shall become effective October 1, 1997.

* * * * * * *

TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

* * * * * * *

Subtitle F--Earned Income Credit Denied to Unauthorized Employees

SEC. 451. EARNED INCOME CREDIT DENIED TO INDIVIDUALS NOT AUTHORIZED TO BE EMPLOYED IN THE UNITED STATES.

(a) IN GENERAL.--Section 32(c)(1) of the Internal Revenue Code of 1986 (relating to individuals eligible to claim the earned income credit) is amended by adding at the end the following new subparagraph:

'(F) IDENTIFICATION NUMBER REQUIREMENT.--The term 'eligible individual' does not include any individual who does not include on the return of tax for the taxable year--

'(i) such individual's taxpayer identification number, and

'(ii) if the individual is married (within the meaning of section 7703), the taxpayer identification number of such individual's spouse.'.

(b) SPECIAL IDENTIFICATION NUMBER.--Section 32 of such Code is amended by adding at the end the following new subsection:

'(l) IDENTIFICATION NUMBERS.--Solely for purposes of subsections (c)(1)(F) and (c)(3)(D), a taxpayer identification number means a social security number issued to an individual by the Social Security Administration (other than a social security number issued pursuant to clause (II) (or that portion of clause (III) that relates to clause (II)) of section 205(c)(2)(B)(i) of the Social Security Act).'.

(c) EXTENSION OF PROCEDURES APPLICABLE TO MATHEMATICAL OR CLERICAL ERRORS.--Section 6213(g)(2) of such Code (relating to the definition of mathematical or clerical errors) is amended by striking 'and' at the end of subparagraph (D), by striking the period at the end of subparagraph (E) and inserting a comma, and by inserting after subparagraph (E) the following new subparagraphs:

'(F) an omission of a correct taxpayer identification number required under section 32 (relating to the earned income credit) to be included on a return, and

'(G) an entry on a return claiming the credit under section 32 with respect to net earnings from self-employment described in section 32(c)(2)(A) to the extent the tax imposed by section 1401 (relating to self-employment tax) on such net earnings has not been paid.'.

(d) EFFECTIVE DATE.--The amendments made by this section shall apply with respect to returns the due date for which (without regard to extensions) is more than 30 days after the date of the enactment of this Act.

* * * * * * *

TITLE IX--MISCELLANEOUS

SEC. 901. APPROPRIATION BY STATE LEGISLATURES.

(a) IN GENERAL.--Any funds received by a State under the provisions of law specified in subsection (b) shall be subject to appropriation by the State legislature, consistent with the terms and conditions required under such provisions of law.

(b) PROVISIONS OF LAW.--The provisions of law specified in this subsection are the following:

(1) Part A of title IV of the Social Security Act (relating to block grants for temporary assistance for needy families).

(2) The Child Care and Development Block Grant Act of 1990 (relating to block grants for child care).

SEC. 902. SANCTIONING FOR TESTING POSITIVE FOR CONTROLLED SUBSTANCES.

Notwithstanding any other provision of law, States shall not be prohibited by the Federal Government from testing welfare recipients for use of controlled substances nor from sanctioning welfare recipients who test positive for use of controlled substances.

SEC. 903. ELIMINATION OF HOUSING ASSISTANCE WITH RESPECT TO FUGITIVE FELONS AND PROBATION AND PAROLE VIOLATORS.

(a) ELIGIBILITY FOR ASSISTANCE.--The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--

(1) in section 6(l)--

(A) in paragraph (5), by striking 'and' at the end;

(B) in paragraph (6), by striking the period at the end and inserting '; and'; and

'(7) provide that it shall be cause for immediate termination of the tenancy of a public housing tenant if such tenant--

'(A) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which the individual flees, for a crime, or attempt to commit a crime, which is a felony under the laws of the place from which the individual flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or

'(2) is violating a condition of probation or parole imposed under Federal or State law.'; and

(2) in section 8(d)(1)(B)--

(A) in clause (iii), by striking 'and' at the end;

(B) in clause (iv), by striking the period at the end and inserting '; and'; and

'(v) it shall be cause for termination of the tenancy of a tenant if such tenant--

'(I) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which the individual flees, for a crime, or attempt to commit a crime, which is a felony under the laws of the place from which the individual flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or

'(II) is violating a condition of probation or parole imposed under Federal or State law;'.

(b) PROVISION OF INFORMATION TO LAW ENFORCEMENT AGENCIES.--Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following:

'SEC. 27. EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT AGENCIES.

'Notwithstanding any other provision of law, each public housing agency that enters into a contract for assistance under section 6 or 8 of this Act with the Secretary shall furnish any Federal, State, or local law enforcement officer, upon the request of the officer, with the current address, Social Security number, and photograph (if applicable) of any recipient of assistance under this Act, if the officer--

'(1) furnishes the public housing agency with the name of the recipient; and

'(2) notifies the agency that--

'(A) such recipient--

'(i) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which the individual flees, for a crime, or attempt to commit a crime, which is a felony under the laws of the place from which the individual flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or

'(ii) is violating a condition of probation or parole imposed under Federal or State law; or

'(iii) has information that is necessary for the officer to conduct the officer's official duties;

'(B) the location or apprehension of the recipient is within such officer's official duties; and

'(C) the request is made in the proper exercise of the officer's official duties.'.

SEC. 904. SENSE OF THE SENATE REGARDING THE INABILITY OF THE NONCUSTODIAL PARENT TO PAY CHILD SUPPORT.

It is the sense of the Senate that--

(a) States should diligently continue their efforts to enforce child support payments by the non-custodial parent to the custodial parent, regardless of the employment status or location of the non-custodial parent; and

(b) States are encouraged to pursue pilot programs in which the parents of a non-adult, non-custodial parent who refuses to or is unable to pay child support must--

(1) pay or contribute to the child support owed by the non-custodial parent; or

(2) otherwise fulfill all financial obligations and meet all conditions imposed on the non-custodial parent, such as participation in a work program or other related activity.

SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEENAGE PREGNANCIES.

(a) IN GENERAL.--Not later than January 1, 1997, the Secretary of Health and Human Services shall establish and implement a strategy for--

(1) preventing out-of-wedlock teenage pregnancies, and

(2) assuring that at least 25 percent of the communities in the United States have teenage pregnancy prevention programs in place.

(b) REPORT.--Not later than June 30, 1998, and annually thereafter, the Secretary shall report to the Congress with respect to the progress that has been made in meeting the goals described in paragraphs (1) and (2) of subsection (a).

SEC. 906. SENSE OF THE SENATE REGARDING ENFORCEMENT OF STATUTORY RAPE LAWS.

(a) SENSE OF THE SENATE.--It is the sense of the Senate that States and local jurisdictions should aggressively enforce statutory rape laws.

(b) JUSTICE DEPARTMENT PROGRAM ON STATUTORY RAPE.--Not later than January 1, 1997, the Attorney General shall establish and implement a program that--

(1) studies the linkage between statutory rape and teenage pregnancy, particularly by predatory older men committing repeat offenses; and

(2) educates State and local criminal law enforcement officials on the prevention and prosecution of statutory rape, focusing in particular on the commission of statutory rape by predatory older men committing repeat offenses, and any links to teenage pregnancy.

(c) VIOLENCE AGAINST WOMEN INITIATIVE.--The Attorney General shall ensure that the Department of Justice's Violence Against Women initiative addresses the issue of statutory rape, particularly the commission of statutory rape by predatory older men committing repeat offenses.

SEC. 907. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER SYSTEMS.

Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) is amended--

(1) by striking '(d) In the event' and inserting '(d) APPLICABILITY TO SERVICE PROVIDERS OTHER THAN CERTAIN FINANCIAL INSTITUTIONS.--

'(1) IN GENERAL.--In the event'; and

(2) by adding at the end the following new paragraph:

'(2) STATE AND LOCAL GOVERNMENT ELECTRONIC BENEFIT TRANSFER PROGRAMS.--

'(A) EXEMPTION GENERALLY.--The disclosures, protections, responsibilities, and remedies established under this title, and any regulation prescribed or order issued by the Board in accordance with this title, shall not apply to any electronic benefit transfer program established under State or local law or administered by a State or local government.

'(B) EXCEPTION FOR DIRECT DEPOSIT INTO RECIPIENT'S ACCOUNT.--Subparagraph (A) shall not apply with respect to any electronic funds transfer under an electronic benefit transfer program for deposits directly into a consumer account held by the recipient of the benefit.

'(C) RULE OF CONSTRUCTION.--No provision of this paragraph may be construed as--

'(i) affecting or altering the protections otherwise applicable with respect to benefits established by Federal, State, or local law; or

'(ii) otherwise superseding the application of any State or local law.

'(D) ELECTRONIC BENEFIT TRANSFER PROGRAM DEFINED.--For purposes of this paragraph, the term 'electronic benefit transfer program'--

'(i) means a program under which a government agency distributes needs-tested benefits by establishing accounts to be accessed by recipients electronically, such as through automated teller machines, or point-of-sale terminals; and

'(ii) does not include employment-related payments, including salaries and pension, retirement, or unemployment benefits established by Federal, State, or local governments.'.

SEC. 908. REDUCTION OF BLOCK GRANTS TO STATES FOR SOCIAL SERVICES; USE OF VOUCHERS.

(a) REDUCTION OF GRANTS.--Section 2003(c) of the Social Security Act (42 U.S.C. 1397b(c)) is amended--

(1) by striking 'and' at the end of paragraph (4); and

(2) by striking paragraph (5) and inserting the following:

'(5) $2,800,000,000 for each of the fiscal years 1990 through 1995;

'(6) $2,381,000,000 for the fiscal year 1996;

'(7) $2,380,000,000 for each of the fiscal years 1997 through 2002; and

'(8) $2,800,000,000 for the fiscal year 2003 and each succeeding fiscal year.'.

(b) AUTHORITY TO USE VOUCHERS.--Section 2002 of such Act (42 U.S.C. 1937a) is amended by adding at the end the following:

'(f) A State may use funds provided under this title to provide vouchers, for services directed at the goals set forth in section 2001, to families, including--

'(1) families who have become ineligible for assistance under a State program funded under part A of title IV by reason of a durational limit on the provision of such assistance; and

'(2) families denied cash assistance under the State program funded under part A of title IV for a child who is born to a member of the family who is--

'(A) a recipient of assistance under the program; or

'(B) a person who received such assistance at any time during the 10-month period ending with the birth of the child.'.

SEC. 909. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT ON BASIS OF DISQUALIFIED INCOME.

(a) REDUCTION IN DISQUALIFIED INCOME THRESHOLD.--

(1) IN GENERAL.--Paragraph (1) of section 32(i) of the Internal Revenue Code of 1986 (relating to denial of credit for individuals having excessive investment income) is amended by striking '$2,350' and inserting '$2,200'.

(2) ADJUSTMENT FOR INFLATION.--Subsection (j) of section 32 of such Code is amended to read as follows:

'(j) INFLATION ADJUSTMENTS.--

'(1) IN GENERAL.--In the case of any taxable year beginning after 1996, each of the dollar amounts in subsections (b)(2) and (i)(1) shall be increased by an amount equal to--

'(A) such dollar amount, multiplied by

'(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 'calendar year 1995' for 'calendar year 1992' in subparagraph (B) thereof.

'(2) ROUNDING.--

'(A) IN GENERAL.--If any dollar amount in subsection (b)(2), after being increased under paragraph (1), is not a multiple of $10, such dollar amount shall be rounded to the nearest multiple of $10.

'(B) DISQUALIFIED INCOME THRESHOLD AMOUNT.--If the dollar amount in subsection (i)(1), after being increased under paragraph (1), is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.'.

(3) CONFORMING AMENDMENT.--Paragraph (2) of section 32(b) of such Code is amended to read as follows:

'(2) AMOUNTS.--The earned income amount and the phaseout amount shall be determined as follows:

------------------------------------------------------------------

'In the case of an eligible The earned income The phaseout

individual with: amount is: amount is:

------------------------------------------------------------------

1 qualifying child $6,330 $11,610

2 or more qualifying children $8,890 $11,610

No qualifying children $4,220 $ 5,280'.

------------------------------------------------------------------

(b) DEFINITION OF DISQUALIFIED INCOME.--Paragraph (2) of section 32(i) of such Code (defining disqualified income) is amended by striking 'and' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting a comma, and by adding at the end the following new subparagraphs:

'(D) the capital gain net income (as defined in section 1222) of the taxpayer for such taxable year, and

'(E) the excess (if any) of--

'(i) the aggregate income from all passive activities for the taxable year (determined without regard to any amount included in earned income under subsection (c)(2) or described in a preceding subparagraph), over

'(ii) the aggregate losses from all passive activities for the taxable year (as so determined).

For purposes of subparagraph (E), the term 'passive activity' has the meaning given such term by section 469.'.

(1) IN GENERAL.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1995.

(2) ADVANCE PAYMENT INDIVIDUALS.--In the case of any individual who on or before June 26, 1996, has in effect an earned income eligibility certificate for the individual's taxable year beginning in 1996, the amendments made by this section shall apply to taxable years beginning after December 31, 1996.

SEC. 910. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION FOR EARNED INCOME CREDIT.

(a) IN GENERAL.--Subsections (a)(2)(B), (c)(1)(C), and (f)(2)(B) of section 32 of the Internal Revenue Code of 1986 are each amended by striking 'adjusted gross income' each place it appears and inserting 'modified adjusted gross income'.

(b) MODIFIED ADJUSTED GROSS INCOME DEFINED.--Section 32(c) of such Code (relating to definitions and special rules) is amended by adding at the end the following new paragraph:

'(5) MODIFIED ADJUSTED GROSS INCOME.--

'(A) IN GENERAL.--The term 'modified adjusted gross income' means adjusted gross income determined without regard to the amounts described in subparagraph (B).

'(B) CERTAIN AMOUNTS DISREGARDED.--An amount is described in this subparagraph if it is--

'(i) the amount of losses from sales or exchanges of capital assets in excess of gains from such sales or exchanges to the extent such amount does not exceed the amount under section 1211(b)(1),

'(ii) the net loss from estates and trusts,

'(iii) the excess (if any) of amounts described in subsection (i)(2)(C)(ii) over the amounts described in subsection (i)(2)(C)(i) (relating to nonbusiness rents and royalties), and

'(iv) 50 percent of the net loss from the carrying on of trades or businesses, computed separately with respect to--

'(I) trades or businesses (other than farming) conducted as sole proprietorships,

'(II) trades or businesses of farming conducted as sole proprietorships, and

'(III) other trades or businesses.

For purposes of clause (iv), there shall not be taken into account items which are attributable to a trade or business which consists of the performance of services by the taxpayer as an employee.'.

(1) IN GENERAL.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1995.

SEC. 911. FRAUD UNDER MEANS-TESTED WELFARE AND PUBLIC ASSISTANCE PROGRAMS.

(a) IN GENERAL.--If an individual's benefits under a Federal, State, or local law relating to a means-tested welfare or a public assistance program are reduced because of an act of fraud by the individual under the law or program, the individual may not, for the duration of the reduction, receive an increased benefit under any other means-tested welfare or public assistance program for which Federal funds are appropriated as a result of a decrease in the income of the individual (determined under the applicable program) attributable to such reduction.

(b) WELFARE OR PUBLIC ASSISTANCE PROGRAMS FOR WHICH FEDERAL FUNDS ARE APPROPRIATED.--For purposes of subsection (a), the term 'means-tested welfare or public assistance program for which Federal funds are appropriated' includes the food stamp program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), any program of public or assisted housing under title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), and any State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).

SEC. 912. ABSTINENCE EDUCATION.

Title V of the Social Security Act (42 U.S.C. 701 et seq.) is amended by adding at the end the following section:

'SEPARATE PROGRAM FOR ABSTINENCE EDUCATION

'SEC. 510. (a) For the purpose described in subsection (b), the Secretary shall, for fiscal year 1998 and each subsequent fiscal year, allot to each State which has transmitted an application for the fiscal year under section 505(a) an amount equal to the product of--

'(1) the amount appropriated in subsection (d) for the fiscal year; and

'(2) the percentage determined for the State under section 502(c)(1)(B)(ii).

'(b)(1) The purpose of an allotment under subsection (a) to a State is to enable the State to provide abstinence education, and at the option of the State, where appropriate, mentoring, counseling, and adult supervision to promote abstinence from sexual activity, with a focus on those groups which are most likely to bear children out-of-wedlock.

'(2) For purposes of this section, the term 'abstinence education' means an educational or motivational program which--

'(A) has as its exclusive purpose, teaching the social, psychological, and health gains to be realized by abstaining from sexual activity;

'(B) teaches abstinence from sexual activity outside marriage as the expected standard for all school age children;

'(C) teaches that abstinence from sexual activity is the only certain way to avoid out-of-wedlock pregnancy, sexually transmitted diseases, and other associated health problems;

'(D) teaches that a mutually faithful monogamous relationship in context of marriage is the expected standard of human sexual activity;

'(E) teaches that sexual activity outside of the context of marriage is likely to have harmful psychological and physical effects;

'(F) teaches that bearing children out-of-wedlock is likely to have harmful consequences for the child, the child's parents, and society;

'(G) teaches young people how to reject sexual advances and how alcohol and drug use increases vulnerability to sexual advances; and

'(H) teaches the importance of attaining self-sufficiency before engaging in sexual activity.

'(c)(1) Sections 503, 507, and 508 apply to allotments under subsection (a) to the same extent and in the same manner as such sections apply to allotments under section 502(c).

'(2) Sections 505 and 506 apply to allotments under subsection (a) to the extent determined by the Secretary to be appropriate.

'(d) For the purpose of allotments under subsection (a), there is appropriated, out of any money in the Treasury not otherwise appropriated, an additional $50,000,000 for each of the fiscal years 1998 through 2002. The appropriation under the preceding sentence for a fiscal year is made on October 1 of the fiscal year.'.

SEC. 913. CHANGE IN REFERENCE.

Effective January 1, 1997, the third sentence of section 1902(a) and section 1908(e)(1) of the Social Security Act (42 U.S.C. 1396a(a), 1396g-1(e)(1)) are each amended by striking 'The First Church of Christ, Scientist, Boston, Massachusetts' and inserting 'The Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc.' each place it appears.

Speaker of the House of Representatives.

Vice President of the United States and President of the Senate.

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