A bill to amend part A of title IV of the Social Security Act to improve quality control standards and procedures under the Aid to Families with Dependent Children Program, and for other purposes.

[AI summary unavailable — showing source text] Amends part A (Aid to Families with Dependent Children) of title IV of the Social Security Act to require, in order to establish and maintain improved AFDC quality control standards and procedures: (1) each State to collect and submit to the Secretary of Health and Human Services a statistically reliable sample of AFDC cases; (2) the Secretary to review the sample and notify the State of its error rates for overpayments and underpayments; and (3) the State to develop and submit to the Secretary a quality improvement plan for eliminating or reducing errors. Excuses a State from submitting a quality improvement plan if it has consistently had error rates below its error rate tolerance levels. Directs the Secretary to establish procedures for quality control review of AFDC cases and criteria for State quality improvement plans. Reduces Federal AFDC payments to a State to the extent the State's overpayments exceed its overpayment error rate tolerance level. Sets State overpayment tolerance levels pursuant to a formula which takes into account variations among States in population density and caseload volume and composition. Disregards State errors resulting from recent changes in Feder…