A bill to amend part A of title IV of the Social Security Act to improve quality control standards and procedures under the AFDC program, and to provide for studies to assist in the further improvement of such standards and procedures.

[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 statiscally reliable sample of AFDC cases; (2) the Secretary to review the sample and notify the State of its error rate; and (3) the State to develop and submit to the Secretary a corrective plan for eliminating or reducing errors. Provides for financial sanctions for States with error rates exceeding certain levels. Permits waivers of the sanctions in certain instances. Defines "error rate" as the ratio of erroneous payments to total payments. Defines "erroneous payments" as: (1) payments to ineligible families; (2) overpayments to eligible families; and (3) underpayments to eligible families. Directs the Secretary to study and to report to Congress concerning: (1) the nature of AFDC client errors; and (2) measures of a States' performance under the AFDC program which are broader than the current quality control system based on payment accuracy alone. Provides, with respect to title XVI (Supplemental S…