1

2

3

4

5

6

7

8

52

(iv) by striking out "aid is being provided under

the plan of such other State" each place it appears in

such clause and inserting in lieu thereof "assistance to needy families with children or foster care payments are being provided in such other State"; and

(Q) by striking out "; and (23)" and all that

follows and inserting in lieu thereof a period.

(2) Clauses (5), (6), (9), (13), (14), (15), (16), 9 (17), (18), (19), (20), (21), and (22) of section 402 10 (a) of such Act, as amended by paragraph (1) of this 11 subsection, are redesignated as clauses (4) through (16), 12 respectively.

13

(c) Section 402 (b) of such Act is amended to read as 14 follows:

15

"(b) The Secretary shall approve any plan which ful16 fills the conditions specified in subsection (a), except that 17 he shall not approve any plan which imposes, as a condition 18 of eligibility for services under it, any residence requirement 19 which denies services or foster care payments with respect 20 to any individual residing in the State."

22

21

(d) Section 402 of such Act is further amended by

22 striking out subsection (c).

22

23

(e) (1) Subsection (a) of section 403 of such Act (42

24 U.S.C. 603) is amended

25

(A) by striking out "aid and services" and insert

53

ing in lieu thereof "services" in the matter preceding

paragraph (1);

(B) by striking out paragraph (1) and inserting in lieu thereof the following:

"(1) an amount equal to the sum of the following proportions of the total amounts expended during such quarter as payments for foster care in accordance with section 406

"(A) five-sixths of such expenditures, not counting so much of any expenditures with respect to any month as exceeds the product of $18 multi

plied by the number of children receiving such foster care in such month; plus

"(B) the Federal percentage of the amount by which such expenditures exceed the maximum which may be counted under subparagraph (A), not counting so much of any expenditures with respect to any month as exceeds the product of $100 multiplied by the number of children receiv

ing such foster care for such month;";

(C) by striking out paragraph (2);

(D) (i) by striking out "in the case of any State," in the matter preceding subparagraph (A) in paragraph (3),

(ii) by striking out "or relative who is receiving aid

54

under the plan, or to any other individual (living in the

same home as such relative and child) whose needs are taken into account in making the determination under clause (7) of such section" in clause (i) of subparagraph (A) of such paragraph and inserting in lieu thereof "receiving foster care or any member of a family receiving assistance to needy families with children or to any other individual (living in the same home as such family) whose needs would be taken into account in determining the need of any such member

under the State plan approved under this part as in effect prior to the enactment of part D",

(iii) by striking out "child or relative who is applying for aid to families with dependent children or" in clause (ii) of subparagraph (A) of such paragraph and inserting in lieu thereof "member of a family",

(iv) by striking out "likely to become an applicant for or recipient of such aid" in clause (ii) of subparagraph (A) of such paragraph and inserting in lieu

thereof "likely to become eligible to receive such assistance", and

(v) by striking out "(14) and (15)" each place it appears in subparagraph (A) of such paragraph and inserting in lieu thereof "(8) and (9)";

(E) by striking out all that follows "permitted"

55

1 in the last sentence of such paragraph and inserting in

2

3

4

5

6

7

8

9

10

11

lieu thereof "by the Secretary; and";

(F) by striking out "in the case of any State," in the matter preceding subparagraph (A) in paragraph

(5);

(G) by striking out "section 406 (e)" each place it appears in paragraph (5) and inserting in lieu thereof "section 405 (d)"; and

(H) by striking out the sentences following paragraph (5).

(2) Paragraphs (3) and (5) of section 403 (a) of 12 such Act, as amended by paragraph (1) of this subsection,

are redesignated as paragraphs (2) and (3), respectively.

(f) Section 403 (b) of such Act is amended

(1) by striking out "(B) records showing the number of dependent children in the State, and (C)” in paragraph (1) and inserting in lieu thereof "and

(B)"; and

(2) by striking out "(A)” in paragraph (2), and by striking out", and (B)" and all that follows in such paragraph and inserting in lieu thereof a period.

(g) Section 404 of such Act (42 U.S.C. 604) is amended

(1) by striking out "(a) In the case of any State

56

1

2

3

4

plan for aid and services" and inserting in lieu thereof

"In the case of any State plan for services"; and

(2) by striking out subsection (b).

(h) Section 405 of such Act (42 U.S.C. 605) is 5 repealed.

6 (i) Section 406 of such Act (42 U.S.C. 606) is redes7 ignated as section 405, and as so redesignated is amended— (1) by striking out subsections (a) and (b) and inserting in lieu thereof the following:

8

9

10

"(a) The term 'child' means a child as defined in sec

11 tion 445 (b).

12

"(b) The term 'needy families with children' means 13 families who are receiving family assistance benefits under 14 part D and who (1) are receiving supplementary payments 15 under part E, or (2) would be eligible to receive aid to fam16 ilies with dependent children, under a State plan (approved 17 under this part) as in effect prior to the enactment of part D, 18 if the State plan had continued in effect and if it included 19 assistance to dependent children of unemployed fathers pur20 suant to section 407 as it was in effect prior to such enact21 ment; and 'assistance to needy families with children' means 22 family assistance benefits under such part D, paid to such 23 families.";

24

(2) by striking out subsection (c) and redesignat