Authorizes States to use grants for healthy marriage promotion activities and requires the Secretary to make bonus grants to each State that has achieved formulated employment goals.
Revises requirements for the consideration of certain child care expenditures in determining State compliance with contingency fund requirements.
Revises State work participation requirements, incorporating a 40-hour work week standard.
Revises requirements for the use of TANF grants. Repeals the Secretary's authority to make loans to State welfare programs and revises State work participation requirements.
Authorizes the Secretary to develop TANF performance measures. Makes appropriations for research, demonstrations, and technical assistance.
Authorizes the Secretary to make grants to public and nonprofit community entities for demonstration projects to test the effectiveness of various approaches to create a Fatherhood Program.
Permits States the option to make TANF programs mandatory partners with one-stop employment training centers.
Reauthorizes funding for State child care entitlement programs and revises State requirements for child support payments.
Amends SSA title XI (General Provisions) to eliminate specified limitations on the Secretary's authority to approve demonstration projects and grant waivers.
Amends SSA title XVI (Supplemental Security Income) (SSI) to require the Commissioner of Social Security to review State agency blindness and disability determinations.
Authorizes the administering Secretary to authorize innovative State demonstration projects involving individual programs, or integrating multiple public assistance, employment security, and other programs to support working families.
Amends the Food Stamp Act of 1977 to require the Secretary to establish a program to make grants to States to provide food assistance and funds to operate employment and training programs for needy individuals.
Extends abstinence education funding and reauthorizes transitional medical assistance.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2648 Introduced in Senate (IS)]
107th CONGRESS
2d Session
S. 2648
To reauthorize and improve the program of block grants to States for
temporary assistance for needy families, improve access to quality
child care, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 19, 2002
Mr. Hutchinson (for himself, Mr. Sessions, Mr. Inhofe, Mr. Frist, Mr.
Lott, Mr. Kyl, Mr. Gramm, and Mr. Thomas) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To reauthorize and improve the program of block grants to States for
temporary assistance for needy families, improve access to quality
child care, and for other purposes.
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 ``Working Toward Independence Act of
2002''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Findings.
TITLE I--TANF
Sec. 101. Purposes.
Sec. 102. Family assistance grants.
Sec. 103. Promotion of family formation and healthy marriage.
Sec. 104. Supplemental grant for population increases in certain
States.
Sec. 105. Bonus to reward employment achievement.
Sec. 106. Contingency fund.
Sec. 107. Use of funds.
Sec. 108. Repeal of Federal loan for State welfare programs.
Sec. 109. Universal engagement and family self-sufficiency plan
requirements.
Sec. 110. Work participation requirements.
Sec. 111. Maintenance of effort.
Sec. 112. Performance improvement.
Sec. 113. Data collection and reporting.
Sec. 114. Direct funding and administration by Indian tribes.
Sec. 115. Research, evaluations, and national studies.
Sec. 116. Studies by the Census Bureau and the General Accounting
Office.
Sec. 117. Definition of assistance.
Sec. 118. Technical corrections.
Sec. 119. Fatherhood program.
Sec. 120. State option to make TANF programs mandatory partners with
one-stop employment training centers.
Sec. 121. Sense of the Congress.
TITLE II--CHILD CARE
Sec. 201. Entitlement funding.
TITLE III--CHILD SUPPORT
Sec. 301. Federal matching funds for limited pass through of child
support payments to families receiving
TANF.
Sec. 302. State option to pass through all child support payments to
families that formerly received TANF.
Sec. 303. Mandatory review and adjustment of child support orders for
families receiving TANF.
Sec. 304. Mandatory fee for successful child support collection for
family that has never received TANF.
Sec. 305. Report on undistributed child support payments.
Sec. 306. Use of new hire information to assist in administration of
unemployment compensation programs.
Sec. 307. Decrease in amount of child support arrearage triggering
passport denial.
Sec. 308. Use of tax refund intercept program to collect past-due child
support on behalf of children who are not
minors.
Sec. 309. Garnishment of compensation paid to veterans for service-
connected disabilities in order to enforce
child support obligations.
Sec. 310. Improving Federal debt collection practices.
Sec. 311. Maintenance of technical assistance funding.
Sec. 312. Maintenance of Federal Parent Locator Service funding.
TITLE IV--CHILD WELFARE
Sec. 401. Extension of authority to approve demonstration projects.
Sec. 402. Elimination of limitation on number of waivers.
Sec. 403. Elimination of limitation on number of States that may be
granted waivers to conduct demonstration
projects on same topic.
Sec. 404. Elimination of limitation on number of waivers that may be
granted to a single State for demonstration
projects.
Sec. 405. Streamlined process for consideration of amendments to and
extensions of demonstration projects
requiring waivers.
Sec. 406. Availability of reports.
Sec. 407. Technical correction.
TITLE V--SUPPLEMENTAL SECURITY INCOME
Sec. 501. Review of State agency blindness and disability
determinations.
TITLE VI--STATE AND LOCAL FLEXIBILITY
Sec. 601. Program coordination demonstration projects.
Sec. 602. State food assistance block grant demonstration project.
TITLE VII--ABSTINENCE EDUCATION
Sec. 701. Extension of abstinence education funding under maternal and
child health program.
TITLE VIII--TRANSITIONAL MEDICAL ASSISTANCE
Sec. 801. One-year reauthorization of transitional medical assistance.
TITLE IX--EFFECTIVE DATE
Sec. 901. Effective date.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the amendment or repeal shall be
considered to be made to a section or other provision of the Social
Security Act.
SEC. 4. FINDINGS.
The Congress makes the following findings:
(1) The Temporary Assistance for Needy Families (TANF)
Program established by the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (Public Law 104-193) has
succeeded in moving families from welfare to work and reducing child
poverty.
(A) There has been a dramatic increase in the
employment of current and former welfare recipients.
The percentage of working recipients reached an all-
time high in fiscal years 1999 and 2000. In fiscal year
1999, 33 percent of adult recipients were working,
compared to less than 7 percent in fiscal year 1992,
and 11 percent in fiscal year 1996. All States met the
overall participation rate standard in fiscal year
2000, as did the District of Columbia and Puerto Rico.
(B) Earnings for welfare recipients remaining on
the rolls have also increased significantly, as have
earnings for female-headed households. The increases
have been particularly large for the bottom 2 income
quintiles, that is, those women who are most likely to
be former or present welfare recipients.
(C) Welfare dependency has plummeted. As of
September 2001, 2,103,000 families and 5,333,000
individuals were receiving assistance. Accordingly, the
number of families in the welfare caseload and the
number of individuals receiving cash assistance
declined 52 percent and 56 percent, respectively, since
the enactment of TANF. These declines have persisted
even as unemployment rates have increased: unemployment
rates nationwide rose 25 percent, from 3.9 percent in
September 2000 to 4.9 percent in September 2001, while
welfare caseloads continued to drop by 7 percent.
(D) The child poverty rate continued to decline
between 1996 and 2000, falling 21 percent from 20.5 to
16.2 percent. The 2000 child poverty rate is the lowest
since 1979. Child poverty rates for African-American
and Hispanic children have also fallen dramatically
during the past 6 years. African-American child poverty
is at the lowest rate on record and Hispanic child
poverty has had the largest 4-year decrease on record.
(E) Despite these gains, States have had mixed
success in fully engaging welfare recipients in work
activities. While all States have met the overall work
participation rates required by law, in 2000, in an
average month, only about \1/3\ of all families with an
adult participated in work activities that were
countable toward the State's participation rate. Eight
jurisdictions failed to meet the more rigorous 2-parent
work requirements, and about 20 States are not subject
to the 2-parent requirements, most because they moved
their 2-parent cases to separate State programs where
they are not subject to a penalty for failing the 2-
parent rates.
(2) As a Nation, we have made substantial progress in
reducing teen pregnancies and births, slowing increases in
nonmarital childbearing, and improving child support
collections and paternity establishment.
(A) The teen birth rate has fallen continuously
since 1991, down a dramatic 22 percent by 2000. During
the period of 1991-2000, teenage birth rates fell in
all States and the District of Columbia, Puerto Rico,
and the Virgin Islands. Declines also have spanned age,
racial, and ethnic groups. There has been success in
lowering the birth rate for both younger and older
teens. The birth rate for those 15-17 years of age is
down 29 percent since 1991, and the rate for those 18
and 19 is down 16 percent. Between 1991 and 2000, teen
birth rates declined for all women ages 15-19--white,
African American, American Indian, Asian or Pacific
Islander, and Hispanic women ages 15-19. The rate for
African American teens--until recently the highest--
experienced the largest decline, down 31 percent from
1991 to 2000, to reach the lowest rate ever reported
for this group. Most births to teens are nonmarital; in
2000, about 73 percent of the births to teens aged 15-
19 occurred outside of marriage.
(B) Nonmarital childbearing continued to increase
slightly in 2000, however not at the sharp rates of
increase seen in recent decades. The birth rate among
unmarried women in 2000 was 3.5 percent lower than its
peak reached in 1994, while the proportion of births
occurring outside of marriage has remained at
approximately 33 percent since 1998.
(C) The negative consequences of out-of-wedlock
birth on the mother, the child, the family, and society
are well documented. These include increased likelihood
of welfare dependency, increased risks of low birth
weight, poor cognitive development, child abuse and
neglect, and teen parenthood, and decreased likelihood
of having an intact marriage during adulthood.
(D) An estimated 23,900,000 children do not live
with their biological father. 16,000,000 children live
with their mother only. These facts are attributable
largely to declining marriage rates, increasing divorce
rates, and increasing rates of nonmarital births during
the latter part of the 20th century.
(E) There has been a dramatic rise in cohabitation
as marriages have declined. Only 40 percent of children
of cohabiting couples will see their parents marry.
Those who do marry experience a 50 percent higher
divorce rate. Children in single-parent households and
cohabiting households are at much higher risk of child
abuse than children in intact married and stepparent
families.
(F) Children who live apart from their biological
fathers, on average, are more likely to be poor,
experience educational, health, emotional, and
psychological problems, be victims of child abuse,
engage in criminal behavior, and become involved with
the juvenile justice system than their peers who live
with their married, biological mother and father. A
child living in a single-parent family is nearly 5
times as likely to be poor as a child living in a
married-couple family. In married-couple families, the
child poverty rate is 8.1 percent, in households headed
by a single mother, the poverty rate is 39.7 percent.
(G) Since the enactment of the Personal
Responsibility and Work Opportunity Reconciliation Act
of 1996, child support collections within the child
support enforcement system have grown every year,
increasing from $12,000,000,000 in fiscal year 1996 to
nearly $19,000,000,000 in fiscal year 2001. The number
of paternities established or acknowledged in fiscal
year 2002 reached an historic high of over 1,500,000--
which includes a nearly 100 percent increase through
in-hospital acknowledgement programs to 688,510 in 2000
from 349,356 in 1996. Child support collections were
made in over 7,000,000 cases in fiscal year 2000,
significantly more than the almost 4,000,000 cases
having a collection in 1996.
(3) The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 gave States great flexibility in the
use of Federal funds to develop innovative programs to help
families leave welfare and begin employment and to encourage
the formation of 2-parent families.
(A) Total Federal and State TANF expenditures in
fiscal year 2000 were $24,000,000,000, up from
$22,600,000,000 for the previous year. This increased
spending is attributable to significant new investments
in supportive services in the TANF program, such as
child care and activities to support work.
(B) Since the welfare reform effort began there has
been a dramatic increase in work participation
(including employment, community service, and work
experience) among welfare recipients, as well as an
unprecedented reduction in the caseload because
recipients have left welfare for work.
(C) States are making policy choices and investment
decisions best suited to the needs of their citizens.
(i) To expand aid to working families, all
States disregard a portion of a family's earned
income when determining benefit levels.
(ii) Most States increased the limits on
countable assets above the former Aid to
Families with Dependent Children (AFDC)
program. Every State has increased the vehicle
asset level above the prior AFDC limit for a
family's primary automobile.
(iii) States are experimenting with
programs to promote marriage and father
involvement. Over half the States have
eliminated restrictions on 2-parent families.
Many States use TANF, child support, or State
funds to support community-based activities to
help fathers become more involved in their
children's lives or strengthen relationships
between mothers and fathers.
(4) Therefore, it is the sense of the Congress that
increasing success in moving families from welfare to work, as
well as in promoting healthy marriage and other means of
improving child well-being, are very important Government
interests and the policy contained in part A of title IV of the
Social Security Act (as amended by this Act) is intended to
serve these ends.
TITLE I--TANF
SEC. 101. PURPOSES.
Section 401(a) (42 U.S.C. 601(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``increase'' and inserting ``improve child well-being by
increasing'';
(2) in paragraph (1), by inserting ``and services'' after
``assistance'';
(3) in paragraph (2), by striking ``parents on government
benefits'' and inserting ``families on government benefits and
reduce poverty''; and
(4) in paragraph (4), by striking ``two-parent families''
and inserting ``healthy, 2-parent married families, and
encourage responsible fatherhood''.
SEC. 102. FAMILY ASSISTANCE GRANTS.
(a) Extension of Authority.--Section 403(a)(1)(A) (42 U.S.C.
603(a)(1)(A)) is amended--
(1) by striking ``1996, 1997, 1998, 1999, 2000, 2001, and
2002'' and inserting ``2003 through 2007''; and
(2) by inserting ``payable to the State for the fiscal
year'' before the period.
(b) State Family Assistance Grant.--Section 403(a)(1) (42 U.S.C.
603(a)(1)) is amended by striking subparagraphs (B) through (E) and
inserting the following:
``(B) State family assistance grant.--The State
family assistance grant payable to a State for a fiscal
year shall be the amount that bears the same ratio to
the amount specified in subparagraph (C) of this
paragraph as the amount required to be paid to the
State under this paragraph for fiscal year 2002
(determined without regard to any reduction pursuant to
section 412(a)(1)) bears to the total amount required
to be paid under this paragraph for fiscal year 2002.
``(C) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each of fiscal
years 2003 through 2007 $16,566,542,000 for grants
under this paragraph.''.
(c) Matching Grants for the Territories.--Section 1108(b)(2) (42
U.S.C. 1308(b)(2)) is amended by striking ``1997 through 2002'' and
inserting ``2003 through 2007''.
SEC. 103. PROMOTION OF FAMILY FORMATION AND HEALTHY MARRIAGE.
(a) State Plans.--Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is
amended by adding at the end the following:
``(vii) Encourage equitable treatment of
married, 2-parent families under the program
referred to in clause (i).''.
(b) Healthy Marriage Promotion Grants; Repeal of Bonus for
Reduction of Illegitimacy Ratio.--Section 403(a)(2) (42 U.S.C.
603(a)(2)) is amended to read as follows:
``(2) Healthy marriage promotion grants.--
``(A) Authority.--The Secretary shall award
competitive grants to States, territories, and tribal
organizations for not more than 50 percent of the cost
of developing and implementing innovative programs to
promote and support healthy, married, 2-parent
families.
``(B) Healthy marriage promotion activities.--
Subject to subparagraph (C), funds provided under
subparagraph (A) shall be used to support any of the
following programs or activities:
``(i) Public advertising campaigns on the
value of marriage and the skills needed to
increase marital stability and health.
``(ii) Education in high schools on the
value of marriage, relationship skills, and
budgeting.
``(iii) Marriage education, marriage
skills, and relationship skills programs, that
may include parenting skills, financial
management, conflict resolution, and job and
career advancement, for non-married pregnant
women and non-married expectant fathers.
``(iv) Pre-marital education and marriage
skills training for engaged couples and for
couples interested in marriage.
``(v) Marriage enhancement and marriage
skills training programs for married couples.
``(vi) Divorce reduction programs that
teach relationship skills.
``(vii) Marriage mentoring programs which
use married couples as role models and mentors
in at-risk communities.
``(viii) Programs to reduce the
disincentives to marriage in means-tested aid
programs, if offered in conjunction with any
activity described in this subparagraph.
``(C) Requirements.--Any program or activity
conducted with funds made available under a grant made
under this paragraph shall--
``(i) be voluntary in the case of an
individual receiving assistance under the State
program funded under this part; and
``(ii) include an element designed to
reduce and prevent domestic violence.
``(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each of fiscal
years 2003 through 2007 $100,000,000 for grants under
this paragraph.''.
(c) Counting of Spending on Non-Eligible Families To Prevent and
Reduce Incidence of Out-of-Wedlock Births, Encourage Formation and
Maintenance of Healthy, 2-Parent Married Families, or Encourage
Responsible Fatherhood.--Section 409(a)(7)(B)(i) (42 U.S.C.
609(a)(7)(B)(i)) is amended by adding at the end the following:
``(V) Counting of spending on non-
eligible families to prevent and reduce
incidence of out-of-wedlock births,
encourage formation and maintenance of
healthy, 2-parent married families, or
encourage responsible fatherhood.--The
term `qualified State expenditures'
includes the total expenditures by the
State during the fiscal year under all
State programs for a purpose described
in paragraph (3) or (4) of section
401(a).''.
SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN CERTAIN
STATES.
Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is amended--
(1) in the subparagraph heading, by striking ``of grants
for fiscal year 2002'';
(2) in clause (i), by striking ``fiscal year 2002'' and
inserting ``each of fiscal years 2002 through 2007'';
(3) in clause (ii), by striking ``2002'' and inserting
``2007''; and
(4) in clause (iii), by striking ``fiscal year 2002'' and
inserting ``each of fiscal years 2002 through 2007''.
SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.
(a) Reallocation of Funding.--Section 403(a)(4) (42 U.S.C.
603(a)(4)) is amended--
(1) in the paragraph heading, by striking ``high
performance states'' and inserting ``employment achievement'';
(2) in subparagraph (D)(ii)--
(A) in subclause (I), by striking ``equals
$200,000,000'' and inserting ``(other than 2003) equals
$200,000,000, and for bonus year 2003 equals
$100,000,000''; and
(B) in subclause (II), by striking
``$1,000,000,000'' and inserting ``$900,000,000''; and
(3) in subparagraph (F), by striking ``$1,000,000,000'' and
inserting ``$900,000,000''.
(b) Bonus To Reward Employment Achievement.--
(1) In general.--Section 403(a)(4) (42 U.S.C. 603(a)(4)) is
amended by striking subparagraphs (A) through (F) and inserting
the following:
``(A) In general.--The Secretary shall make a grant
pursuant to this paragraph to each State for each bonus
year for which the State is an employment achievement
State.
``(B) Amount of grant.--
``(i) In general.--Subject to clause (ii)
of this subparagraph, the Secretary shall
determine the amount of the grant payable under
this paragraph to an employment achievement
State for a bonus year, which shall be based on
the performance of the State as determined
under subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus year.
``(ii) Limitation.--The amount payable to a
State under this paragraph for a bonus year
shall not exceed 5 percent of the State family
assistance grant.
``(C) Formula for measuring state performance.--
``(i) In general.--Subject to clause (ii),
not later than October 1, 2003, the Secretary,
in consultation with the States, shall develop
a formula for measuring State performance in
operating the State program funded under this
part so as to achieve the goals of employment
entry, job retention, and increased earnings
from employment for families receiving
assistance under the program, as measured on an
absolute basis and on the basis of improvement
in State performance.
``(ii) Special rule for bonus year 2004.--
For the purposes of awarding a bonus under this
paragraph for bonus year 2004, the Secretary
may measure the performance of a State in
fiscal year 2003 using the job entry rate, job
retention rate, and earnings gain rate
components of the formula developed under
section 403(a)(4)(C) as in effect immediately
before the effective date of this paragraph.
``(D) Determination of state performance.--For each
bonus year, the Secretary shall--
``(i) use the formula developed under
subparagraph (C) to determine the performance
of each eligible State for the fiscal year that
precedes the bonus year; and
``(ii) prescribe performance standards in
such a manner so as to ensure that--
``(I) the average annual total
amount of grants to be made under this
paragraph for each bonus year equals
$100,000,000; and
``(II) the total amount of grants
to be made under this paragraph for all
bonus years equals $500,000,000.
``(E) Definitions.--In this paragraph:
``(i) Bonus year.--The term `bonus year'
means each of fiscal years 2004 through 2008.
``(ii) Employment achievement state.--The
term `employment achievement State' means, with
respect to a bonus year, an eligible State
whose performance determined pursuant to
subparagraph (D)(i) for the fiscal year
preceding the bonus year equals or exceeds the
performance standards prescribed under
subparagraph (D)(ii) for such preceding fiscal
year.
``(F) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal years
2004 through 2008 $500,000,000 for grants under this
paragraph.
``(G) Grants for tribal organizations.--This
paragraph shall apply with respect to tribal
organizations in the same manner in which this
paragraph applies with respect to States. In
determining the criteria under which to make grants to
tribal organizations under this paragraph, the
Secretary shall consult with tribal organizations.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 2003.
SEC. 106. CONTINGENCY FUND.
(a) Deposits Into Fund.--Section 403(b)(2) (42 U.S.C. 603(b)(2)) is
amended--
(1) by striking ``1997, 1998, 1999, 2000, 2001, and 2002''
and inserting ``2003 through 2007''; and
(2) by striking all that follows ``$2,000,000,000'' and
inserting a period.
(b) Grants.--Section 403(b)(3)(C)(ii) (42 U.S.C. 603(b)(3)(C)(ii))
is amended by striking ``fiscal years 1997 through 2002'' and inserting
``fiscal years 2003 through 2007''.
(c) Definition of Needy State.--Clauses (i) and (ii) of section
403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are amended by inserting after
``1996'' the following: ``, and the Food Stamp Act of 1977 as in effect
during the corresponding 3-month period in the fiscal year preceding
such most recently concluded 3-month period,''.
(d) Annual Reconciliation: Federal Matching of State Expenditures
Above ``Maintenance of Effort'' Level.--Section 403(b)(6) (42 U.S.C.
603(b)(6)) is amended--
(1) in subparagraph (A)(ii)--
(A) by adding ``and'' at the end of subclause (I);
(B) by striking ``; and'' at the end of subclause
(II) and inserting a period; and
(C) by striking subclause (III);
(2) in subparagraph (B)(i)(II), by striking all that
follows ``section 409(a)(7)(B)(iii))'' and inserting a period;
(3) by amending subparagraph (B)(ii)(I) to read as follows:
``(I) the qualified State
expenditures (as defined in section
409(a)(7)(B)(i)) for the fiscal year;
plus''; and
(4) by striking subparagraph (C).
(e) Consideration of Certain Child Care Expenditures in Determining
State Compliance With Contingency Fund Maintenance of Effort
Requirement.--Section 409(a)(10) (42 U.S.C. 609(a)(10)) is amended--
(1) by striking ``(other than the expenditures described in
subclause (I)(bb) of that paragraph)) under the State program
funded under this part'' and inserting a close parenthesis; and
(2) by striking ``excluding any amount expended by the
State for child care under subsection (g) or (i) of section 402
(as in effect during fiscal year 1994) for fiscal year 1994,''.
SEC. 107. USE OF FUNDS.
(a) General Rules.--Section 404(a)(2) (42 U.S.C. 604(a)(2)) is
amended by striking ``in any manner that'' and inserting ``for any
purposes or activities for which''.
(b) Treatment of Interstate Immigrants.--
(1) State plan provision.--Section 402(a)(1)(B) (42 U.S.C.
602(a)(1)(B)) is amended by striking clause (i) and
redesignating clauses (ii) through (iv) as clauses (i) through
(iii), respectively.
(2) Use of funds.--Section 404 (42 U.S.C. 604) is amended
by striking subsection (c).
(c) Increase in Amount Transferable to Child Care.--Section
404(d)(1) (42 U.S.C. 604(d)(1)) is amended by striking ``30'' and
inserting ``50''.
(d) Increase in Amount Transferable to Title XX Programs.--Section
404(d)(2)(B) (42 U.S.C. 604(d)(2)(B)) is amended to read as follows:
``(B) Applicable percent.--For purposes of
subparagraph (A), the applicable percent is 10 percent
for fiscal year 2003 and each succeeding fiscal
year.''.
(e) Clarification of Authority of States To Use TANF Funds Carried
Over From Prior Years To Provide TANF Benefits and Services.--Section
404(e) (42 U.S.C. 604(e)) is amended to read as follows:
``(e) Authority To Carryover or Reserve Certain Amounts for
Benefits or Services or for Future Contingencies.--
``(1) Carryover.--A State or tribe may use a grant made to
the State or tribe under this part for any fiscal year to
provide, without fiscal year limitation, any benefit or service
that may be provided under the State or tribal program funded
under this part.
``(2) Contingency reserve.--A State or tribe may designate
any portion of a grant made to the State or tribe under this
part as a contingency reserve for future needs, and may use any
amount so designated to provide, without fiscal year
limitation, any benefit or service that may be provided under
the State or tribal program funded under this part. If a State
or tribe so designates a portion of such a grant, the State
shall, on an annual basis, include in its report under section
411(a) the amount so designated.''.
SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE PROGRAMS.
(a) Repeal.--Section 406 (42 U.S.C. 606) is repealed.
(b) Conforming Amendments.--
(1) Section 409(a) (42 U.S.C. 609(a)) is amended by
striking paragraph (6).
(2) Section 412 (42 U.S.C. 612) is amended by striking
subsection (f) and redesignating subsections (g) through (i) as
subsections (f) through (h), respectively.
(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by
striking ``406,''.
SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUFFICIENCY PLAN
REQUIREMENTS.
(a) Modification of State Plan Requirements.--Section 402(a)(1)(A)
(42 U.S.C. 602(a)(1)(A)) is amended by striking clauses (ii) and (iii)
and inserting the following:
``(ii) Require a parent or caretaker
receiving assistance under the program to
engage in work or alternative self-sufficiency
activities (as defined by the State),
consistent with section 407(e)(2).
``(iii) Require families receiving
assistance under the program to engage in
activities in accordance with family self-
sufficiency plans developed pursuant to section
408(b).''.
(b) Establishment of Family Self-Sufficiency Plans.--
(1) In general.--Section 408(b) (42 U.S.C. 608(b)) is
amended to read as follows:
``(b) Family Self-Sufficiency Plans.--
``(1) In general.--A State to which a grant is made under
section 403 shall--
``(A) assess, in the manner deemed appropriate by
the State, the skills, prior work experience, and
employability of each work-eligible individual (as
defined in section 407(b)(2)(C)) receiving assistance
under the State program funded under this part;
``(B) establish for each family that includes such
an individual, in consultation as the State deems
appropriate with the individual, a self-sufficiency
plan that specifies appropriate activities described in
the State plan submitted pursuant to section 402,
including direct work activities as appropriate
designed to assist the family in achieving their
maximum degree of self-sufficiency, and that provides
for the ongoing participation of the individual in the
activities;
``(C) require, at a minimum, each such individual
to participate in activities in accordance with the
self-sufficiency plan;
``(D) monitor the participation of each such
individual in the activities specified in the self-
sufficiency plan, and regularly review the progress of
the family toward self-sufficiency;
``(E) upon such a review, revise the self-
sufficiency plan and activities as the State deems
appropriate.
``(2) Timing.--The State shall comply with paragraph (1)
with respect to a family--
``(A) in the case of a family that, as of October
1, 2002, is not receiving assistance from the State
program funded under this part, not later than 60 days
after the family first receives assistance on the basis
of the most recent application for the assistance; or
``(B) in the case of a family that, as of such
date, is receiving the assistance, not later than 12
months after the date of enactment of this subsection.
``(3) State discretion.--A State shall have sole
discretion, consistent with section 407, to define and design
activities for families for purposes of this subsection, to
develop methods for monitoring and reviewing progress pursuant
to this subsection, and to make modifications to the plan as
the State deems appropriate to assist the individual in
increasing their degree of self-sufficiency.
``(4) Rule of interpretation.--Nothing in this part shall
preclude a State from requiring participation in work and any
other activities the State deems appropriate for helping
families achieve self-sufficiency and improving child well-
being.''.
(2) Penalty for failure to establish family self-
sufficiency plan.--Section 409(a)(3) (42 U.S.C. 609(a)(3)) is
amended--
(A) in the paragraph heading, by inserting ``or
establish family self-sufficiency plan'' after
``rates''; and
(B) in subparagraph (A), by inserting ``or 408(b)''
after ``407(a)''.
SEC. 110. WORK PARTICIPATION REQUIREMENTS.
(a) In General.--Section 407 (42 U.S.C. 607) is amended by striking
all that precedes subsection (b)(3) and inserting the following:
``SEC. 407. WORK PARTICIPATION REQUIREMENTS.
``(a) Participation Rate Requirements.--A State to which a grant is
made under section 403 for a fiscal year shall achieve a minimum
participation rate equal to not less than--
``(1) 50 percent for fiscal year 2003;
``(2) 55 percent for fiscal year 2004;
``(3) 60 percent for fiscal year 2005;
``(4) 65 percent for fiscal year 2006; and
``(5) 70 percent for fiscal year 2007 and each succeeding
fiscal year.
``(b) Calculation of Participation Rates.--
``(1) Average monthly rate.--For purposes of subsection
(a), the participation rate of a State for a fiscal year is the
average of the participation rates of the State for each month
in the fiscal year.
``(2) Monthly participation rates; incorporation of 40-hour
work week standard.--
``(A) In general.--For purposes of paragraph (1),
the participation rate of a State for a month is--
``(i) the total number of countable hours
(as defined in subsection (c)) with respect to
the counted families for the State for the
month; divided by
``(ii) 160 multiplied by the number of
counted families for the State for the month.
``(B) Counted families defined.--
``(i) In general.--In subparagraph (A), the
term `counted family' means, with respect to a
State and a month--
``(I) a family that includes a
work-eligible individual and that
receives assistance in the month under
the State program funded under this
part, subject to clause (ii); or
``(II) an individual not currently
receiving assistance under the State
program as described in paragraph (4).
``(ii) State option to exclude certain
families.--At the option of a State, the term
`counted family' shall not include on a case-
by-case basis, a family in which the youngest
child has not attained 12 months of age.
``(iii) State option to include individuals
receiving assistance under a tribal family
assistance plan or tribal work program.--At the
option of a State, the term `counted family'
may include families in the State that are
receiving assistance under a tribal family
assistance plan approved under section 412 or
under a tribal work program to which funds are
provided under this part.
``(C) Work-eligible individual defined.--In this
section, the term `work-eligible individual' means--
``(i) an individual--
``(I) who is married or a single
head of household; and
``(II) whose needs are (or, but for
sanctions under this part that have
been in effect for more than 3 months
(whether or not consecutive) in the
preceding 12 months or under part D,
would be) included in determining the
amount of cash assistance to be
provided to the family under the State
program funded under this part; or
``(ii) an individual--
``(I) who is married or a single
head of household; and
``(II) is not currently receiving
assistance as described in paragraph
(4).''.
(b) Phase-Out of Pro Rata Reduction of Participation Rate Due To
Caseload Reductions.--
(1) Provisions for fiscal years 2003 and 2004.--Section
407(b)(3) (42 U.S.C. 607(b)(3)) is amended by adding at the end
the following:
``(C) Provisions for fiscal years 2003 and 2004.--
Notwithstanding the preceding provisions of this
paragraph, and subject to paragraph (5), with respect
to a State, in determining the percentage reduction in
the minimum participation rate otherwise required by
this section--
``(i) for fiscal years 2003 and 2004,
subparagraph (B) and the second sentence of
subparagraph (A) shall not apply; and
``(ii) for fiscal year 2004, the applicable
percentage point reduction shall be reduced by
\1/2\.''.
(2) Repeal.--Effective October 1, 2004, section 407(b)(3)
(42 U.S.C. 607(b)(3)) is repealed.
(c) Employment Credit for Families That Have Ceased Receiving
Assistance for Employment-Related Reasons.--
(1) In general.--Section 407(b) (42 U.S.C. 607(b)), as
amended by subsections (a) and (b), is amended--
(A) by striking paragraphs (4) and (5); and
(B) by inserting after paragraph (3), the
following:
``(4) Employment credit for families that have ceased
receiving assistance for employment-related reasons.--Subject
to paragraph (5), for purposes of calculation of the minimum
participation rate otherwise required by this section, a work-
eligible individual not currently receiving assistance under
the State program funded under this part, that ceased receiving
such assistance at a time within the previous 3 months when a
family member was employed, shall be deemed to be engaged in a
direct work activity for an average of 40 hours per week.''.
(2) Technical amendments.--Effective October 1, 2004,
section 407(b) (42 U.S.C. 607(b)) is amended--
(A) by redesignating paragraph (4), as added by
paragraph (1) of this subsection, as paragraph (3); and
(B) in subparagraphs (B)(i)(II) and (C)(ii)(II) of
paragraph (2), by striking ``paragraph (4)'' each place
it appears and inserting ``paragraph (3)''.
(d) Limitation On Reduction of Work Participation Rate.--
(1) In general.--Section 407(b) (42 U.S.C. 607(b)), as
amended by subsections (a), (b), and (c), is amended by
inserting after paragraph (4), the following:
``(5) Limitation on reduction of work participation rate.--
Notwithstanding paragraph (3) or (4), a State may not credit an
individual with being engaged in countable hours for purposes
of calculation of the minimum participation rate otherwise
required by this section if the minimum participation rate
determined for families described in paragraph (2)(B)(i)(I) for
a State would be reduced below--
``(A) 15 percent, in the case of fiscal year 2003;
``(B) 25 percent, in the case of fiscal year 2004;
``(C) 35 percent, in the case of fiscal year 2005;
``(D) 45 percent, in the case of fiscal year 2006;
or
``(E) 55 percent, in the case of fiscal year
2007.''.
(2) Technical amendments.--Effective October 1, 2004,
section 407(b) (42 U.S.C. 607(b)) is amended--
(A) by redesignating paragraph (5), as added by
paragraph (1) of this subsection, as paragraph (4);
(B) in such paragraph (4) (as so redesignated), by
striking ``(3), (4),'' and inserting ``(3)''; and
(C) in paragraph (3) (as redesignated by subsection
(c)(2)(A)), by striking ``paragraph (5)'' and inserting
``paragraph (4)''.
(e) Countable Hours.--Section 407 of such Act (42 U.S.C. 607) is
amended by striking subsections (c) and (d) and inserting the
following:
``(c) Countable Hours.--
``(1) Definition.--In subsection (b)(2), the term
`countable hours' means, with respect to a family for a month,
the total number of hours in the month in which any member of
the family who is a work-eligible individual is engaged in a
direct work activity or other organized activities (excluding
an activity that does not address a purpose specified in
section 401(a)), subject to the other provisions of this
subsection.
``(2) Limitations.--Subject to such regulations as the
Secretary may prescribe:
``(A) Minimum weekly average of 24 hours of direct
work activities required.--If the work-eligible
individuals in a family are engaged in a direct work
activity for an average total of fewer than 24 hours
per week in a month, then the number of countable hours
with respect to the family for the month shall be zero.
``(B) Maximum weekly average of 16 hours of other
organized activities.--An average of not more than 16
hours per week of organized activities (subject to the
exclusion described in paragraph (1)) may be considered
countable hours in a month with respect to a family.
Such activities may include the following:
``(i) Substance abuse counseling or
treatment.
``(ii) Rehabilitation treatment and
services.
``(iii) Work-related education or training
directed at enabling the family member to work.
``(iv) Job search or job readiness
assistance.
``(v) Parenting education.
``(vi) Marriage and relationship skills
training.
``(vii) Domestic violence counseling.
``(viii) Any other activity that addresses
a purpose specified in section 401(a).
``(3) Special rules.--For purposes of paragraph (1):
``(A) Participation in qualified activities.--
``(i) In general.--If, with the approval of
the State, the work-eligible individuals in a
family are engaged in 1 or more qualified
activities for an average total of at least 24
hours per week in a month, then all such
engagement in the month shall be considered
engagement in a direct work activity, subject
to clause (iii).
``(ii) Qualified activity defined.--The
term `qualified activity' means an activity
specified by the State (subject to the
exclusion described in paragraph (1)) that
meets such standards and criteria as the State
may specify, including an activity described in
any of clauses (i) through (viii) of paragraph
(2)(B).
``(iii) Limitation.--
``(I) In general.--Except as
provided in subclause (II), clause (i)
shall not apply to a family for more
than 3 months in any period of 24
consecutive months.
``(II) Special rule applicable to
education and training.--
``(aa) In general.--Subject
to item (bb), a State may, on a
case-by-case basis, apply
clause (i) to a work-eligible
individual so that
participation by the individual
in education or training, if
needed to permit the individual
to complete a certificate
program or other work-related
education or training directed
at enabling the individual to
fill a known job need in a
local area, may be considered countable hours with respect to the
family of the individual for not more than 12 months in any period of
24 consecutive months
``(bb) Limitation.--With
respect to a month, a State may
not apply item (aa) to more
than 30 percent of counted
families for the month.
``(B) School attendance by teen head of
household.--The work-eligible members of a family shall
be considered to be engaged in a direct work activity
for an average of 40 hours per week in a month if the
family includes an individual who is married, or is a
single head of household, who has not attained 20 years
of age, and the individual--
``(i) maintains satisfactory attendance at
secondary school or the equivalent in the
month; or
``(ii) participates in education directly
related to employment for an average of at
least 20 hours per week in the month.
``(d) Direct Work Activity.--In this section, the term `direct work
activity' means--
``(1) unsubsidized employment;
``(2) subsidized private sector employment;
``(3) subsidized public sector employment;
``(4) on-the-job training;
``(5) supervised work experience; or
``(6) supervised community service.''.
(f) Penalties Against Individuals.--Section 407(e)(1) (42 U.S.C.
607(e)(1)) is amended to read as follows:
``(1) Reduction or termination of assistance.--Except as
provided in paragraph (2), if an individual in a family
receiving assistance under a State program funded under this
part fails to engage in activities required in accordance with
this section, or other activities required by the State under
the program, and the family does not otherwise engage in
activities in accordance with the self-sufficiency plan
established for the family pursuant to section 408(b), the
State shall--
``(A) if the failure is partial or persists for not
more than 1 month--
``(i) reduce the amount of assistance
otherwise payable to the family pro rata (or
more, at the option of the State) with respect
to any period during a month in which the
failure occurs; or
``(ii) terminate all assistance to the
family, subject to such good cause exceptions
as the State may establish; or
``(B) if the failure is total and persists for at
least 2 consecutive months, terminate all cash payments
to the family including qualified State expenditures
(as defined in section 409(a)(7)(B)(i)) for at least 1
month and thereafter until the State determines that
the individual has resumed full participation in the
activities, subject to such good cause exceptions as
the State may establish.''.
(g) Conforming Amendments.--
(1) Section 407(f) (42 U.S.C. 607(f)) is amended in each of
paragraphs (1) and (2) by striking ``work activity described in
subsection (d)'' and inserting ``direct work activity''.
(2) The heading of section 409(a)(14) (42 U.S.C.
609(a)(14)) is amended by inserting ``or refusing to engage in
activities under a family self-sufficiency plan'' after
``work''.
SEC. 111. MAINTENANCE OF EFFORT.
(a) In General.--Section 409(a)(7) (42 U.S.C. 609(a)(7)) is
amended--
(1) in subparagraph (A) by striking ``fiscal year 1998,
1999, 2000, 2001, 2002, or 2003'' and inserting ``fiscal year
2003, 2004, 2005, 2006, 2007 or 2008''; and
(2) in subparagraph (B)(ii)--
(A) by inserting ``preceding'' before ``fiscal
year''; and
(B) by striking ``for fiscal years 1997 through
2002,''.
(b) State Spending on Promoting Healthy Marriage.--
(1) In general.--Section 404 (42 U.S.C. 604) is amended by
adding at the end the following:
``(l) Marriage Promotion.--A State, territory, or tribal
organization to which a grant is made under section 403(a)(2) may use a
grant made to the State, territory, or tribal organization under any
other provision of section 403 for marriage promotion activities, and
the amount of any such grant so used shall be considered State funds
for purposes of section 403(a)(2).''.
(2) Federal tanf funds used for marriage promotion
disregarded for purposes of maintenance of effort
requirement.--Section 409(a)(7)(B)(i) (42 U.S.C.
609(a)(7)(B)(i)), as amended by section 103(c) of this Act, is
amended by adding at the end the following:
``(VI) Exclusion of federal tanf
funds used for marriage promotion
activities.--Such term does not include
the amount of any grant made to the
State under section 403 that is
expended for a marriage promotion
activity.''.
SEC. 112. PERFORMANCE IMPROVEMENT.
(a) State Plans.--Section 402(a) (42 U.S.C. 602(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by redesignating clause (vi) and clause
(vii) (as added by section 103(a) of this Act)
as clauses (vii) and (viii), respectively; and
(ii) by striking clause (v) and inserting
the following:
``(v) The document shall--
``(I) describe how the State will
pursue ending dependence of needy
families on government benefits and
reducing poverty by promoting job
preparation and work;
``(II) describe how the State will
encourage the formation and maintenance
of healthy 2-parent married families,
encourage responsible fatherhood, and
prevent and reduce the incidence of
out-of-wedlock pregnancies;
``(III) include specific,
numerical, and measurable performance
objectives for accomplishing subclauses
(I) and (II), and with respect to
subclause (I), include objectives
consistent with the criteria used by
the Secretary in establishing
performance targets under section
403(a)(4)(B) if available; and
``(IV) describe the methodology
that the State will use to measure
State performance in relation to each
such objective.
``(vi) Describe any strategies and programs
the State may be undertaking to address--
``(I) employment retention and
advancement for recipients of
assistance under the program, including
placement into high-demand jobs, and
whether the jobs are identified using
labor market information;
``(II) efforts to reduce teen
pregnancy;
``(III) services for struggling and
noncompliant families, and for clients
with special problems; and
``(IV) program integration,
including the extent to which
employment and training services under
the program are provided through the
One-Stop delivery system created under
the Workforce Investment Act of 1998,
and the extent to which former
recipients of such assistance have
access to additional core, intensive,
or training services funded through
such Act.''; and
(B) in subparagraph (B), by striking clause (iii)
(as so redesignated by section 107(b)(1) of this Act)
and inserting the following:
``(iii) The document shall describe
strategies and programs the State is
undertaking to engage religious organizations
in the provision of services funded under this
part and efforts related to section 104 of the
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996.
``(iv) The document shall describe
strategies to improve program management and
performance.''; and
(2) in paragraph (4), by inserting ``and tribal'' after
``that local''.
(b) Consultation With State Regarding Plan and Design of Tribal
Programs.--Section 412(b)(1) (42 U.S.C. 612(b)(1)) is amended--
(1) by striking ``and'' at the end of subparagraph (E);
(2) by striking the period at the end of subparagraph (F)
and inserting ``; and''; and
(3) by adding at the end the following:
``(G) provides an assurance that the State in which
the tribe is located has been consulted regarding the
plan and its design.''.
(c) Performance Measures.--Section 413 (42 U.S.C. 613) is amended
by adding at the end the following:
``(k) Performance Improvement.--The Secretary, in consultation with
the States, shall develop uniform performance measures designed to
assess the degree of effectiveness, and the degree of improvement, of
State programs funded under this part in accomplishing the purposes of
this part.''.
(d) Annual Ranking of States.--Section 413(d)(1) (42 U.S.C.
613(d)(1)) is amended by striking ``long-term private sector jobs'' and
inserting ``private sector jobs, the success of the recipients in
retaining employment, the ability of the recipients to increase their
wages''.
SEC. 113. DATA COLLECTION AND REPORTING.
(a) Contents of Report.-- Section 411(a)(1)(A) (42 U.S.C.
611(a)(1)(A)) is amended--
(1) in clause (vii), by inserting ``and minor parent''
after ``of each adult'';
(2) in clause (viii), by striking ``and educational
level'';
(3) in clause (ix), by striking ``, and if the latter 2,
the amount received'';
(4) in clause (x)--
(A) by striking ``each type of''; and
(B) by inserting before the period ``and, if
applicable, the reason for receipt of the assistance
for a total of more than 60 months'';
(5) in clause (xi), by striking the subclauses and
inserting the following:
``(I) Subsidized private sector
employment.
``(II) Unsubsidized employment.
``(III) Public sector employment,
supervised work experience, or
supervised community service.
``(IV) On-the-job training.
``(V) Job search and placement.
``(VI) Training.
``(VII) Education.
``(VIII) Other activities directed
at the purposes of this part, as
specified in the State plan submitted
pursuant to section 402.'';
(6) in clause (xii), by inserting ``and progress toward
universal engagement'' after ``participation rates'';
(7) in clause (xiii), by striking ``type and'' before
``amount of assistance'';
(8) in clause (xvi), by striking subclause (II) and
redesignating subclauses (III) through (V) as subclauses (II)
through (IV), respectively; and
(9) by adding at the end the following:
``(xviii) The date the family first
received assistance from the State program on
the basis of the most recent application for
such assistance.
``(xix) Whether a self-sufficiency plan is
established for the family in accordance with
section 408(b).
``(xx) With respect to any child in the
family, the marital status of the parents at
the birth of the child, and if the parents were
not then married, whether the paternity of the
child has been established.''.
(b) Use of Samples.--Section 411(a)(1)(B) (42 U.S.C. 611(a)(1)(B))
is amended--
(1) in clause (i)--
(A) by striking ``a sample'' and inserting
``samples''; and
(B) by inserting before the period ``, except that
the Secretary may designate core data elements that
must be reported on all families''; and
(2) in clause (ii), by striking ``funded under this part''
and inserting ``described in subparagraph (A)''.
(c) Report on Families That Become Ineligible To Receive
Assistance.--Section 411(a) (42 U.S.C. 611(a)) is amended--
(1) by striking paragraph (5);
(2) by redesignating paragraph (6) as paragraph (5); and
(3) by inserting after paragraph (5) (as so redesignated)
the following:
``(6) Report on families that become ineligible to receive
assistance.--The report required by paragraph (1) for a fiscal
quarter shall include for each month in the quarter the number
of families and total number of individuals that, during the
month, became ineligible to receive assistance under the State
program funded under this part (broken down by the number of
families that become so ineligible due to earnings, changes in
family composition that result in increased earnings,
sanctions, time limits, or other specified reasons).''.
(d) Regulations.--Section 411(a)(7) (42 U.S.C. 611(a)(7)) is
amended--
(1) by inserting ``and to collect the necessary data''
before ``with respect to which reports'';
(2) by striking ``subsection'' and inserting ``section'';
and
(3) by striking ``in defining the data elements'' and all
that follows and inserting ``, the National Governors'
Association, the American Public Human Services Association,
the National Conference of State Legislatures, and others in
defining the data elements.''.
(e) Additional Reports by States.--Section 411 (42 U.S.C. 611) is
amended--
(1) by redesignating subsection (b) as subsection (e); and
(2) by inserting after subsection (a) the following:
``(b) Annual Reports on Program Characteristics.--Not later than 90
days after the end of fiscal year 2004 and each succeeding fiscal year,
each eligible State shall submit to the Secretary a report on the
characteristics of the State program funded under this part and other
State programs funded with qualified State expenditures (as defined in
section 409(a)(7)(B)(i)). The report shall include, with respect to
each such program, the program name, a description of program
activities, the program purpose, the program eligibility criteria, the
sources of program funding, the number of program beneficiaries,
sanction policies, and any program work requirements.
``(c) Monthly Reports on Caseload.--Not later than 3 months after
the end of a calendar month that begins 1 year or more after the
enactment of this subsection, each eligible State shall submit to the
Secretary report on the number of families and total number of
individuals receiving assistance in the calendar month under the State
program funded under this part.
``(d) Annual Report on Performance Improvement.--Beginning with
fiscal year 2004, not later than January 1 of each fiscal year, each
eligible State shall submit to the Secretary a report on achievement
and improvement during the preceding fiscal year under the numerical
performance goals and measures under the State program funded under
this part with respect to each of the matters described in section
402(a)(1)(A)(v).''.
(f) Annual Reports to Congress by the Secretary.--Section 411(e),
as so redesignated by subsection (e) of this section, is amended--
(1) in the matter preceding paragraph (1), by striking
``and each fiscal year thereafter'' and inserting ``and by July
1 of each fiscal year thereafter'';
(2) in paragraph (2), by striking ``families applying for
assistance,'' and by striking the last comma; and
(3) in paragraph (3), by inserting ``and other programs
funded with qualified State expenditures (as defined in section
409(a)(7)(B)(i))'' before the semicolon.
(g) Increased Analysis of State Single Audit Reports.--Section 411
(42 U.S.C. 611) is amended by adding at the end the following:
``(f) Increased Analysis of State Single Audit Reports.--
``(1) In general.--Within 3 months after a State submits to
the Secretary a report pursuant to section 7502(a)(1)(A) of
title 31, United States Code, the Secretary shall analyze the
report for the purpose of identifying the extent and nature of
problems related to the oversight by the State of
nongovernmental entities with respect to contracts entered into
by such entities with the State program funded under this part,
and determining what additional actions may be appropriate to
help prevent and correct the problems.
``(2) Inclusion of program oversight section in annual
report to the congress.--The Secretary shall include in each
report under subsection (a) a section on oversight of State
programs funded under this part, including findings on the
extent and nature of the problems referred to in paragraph (1),
actions taken to resolve the problems, and to the extent the
Secretary deems appropriate make recommendations on changes
needed to resolve the problems.''.
SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.
(a) Tribal Family Assistance Grant.--Section 412(a)(1)(A) (42
U.S.C. 612(a)(1)(A)) is amended by striking ``1997, 1998, 1999, 2000,
2001, and 2002'' and inserting ``2003 through 2007''.
(b) Grants for Indian Tribes That Received JOBS Funds.--Section
412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)) is amended by striking ``1997,
1998, 1999, 2000, 2001, and 2002'' and inserting ``2003 through 2007''.
SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.
(a) Secretary's Fund for Research, Demonstrations, and Technical
Assistance.--Section 413 (42 U.S.C. 613), as amended by section 112(c)
of this Act, is further amended by adding at the end the following:
``(l) Funding for Research, Demonstrations, and Technical
Assistance.--
``(1) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated $102,000,000 for each of fiscal years 2003 through
2007, which shall be available to the Secretary for the purpose
of conducting and supporting research and demonstration
projects by public or private entities, and providing technical
assistance to States, Indian tribal organizations, and such
other entities as the Secretary may specify that are receiving
a grant under this part, which shall be expended primarily on
activities described in section 403(a)(2)(B), and which shall
be in addition to any other funds made available under this
part.
``(2) Set aside for demonstration projects for coordination
of provision of child welfare and tanf services to tribal
families at risk of child abuse or neglect.--
``(A) In general.--Of the amounts made available
under paragraph (1) for a fiscal year, $2,000,000 shall
be awarded on a competitive basis to fund
demonstration projects designed to test the effectiveness of tribal
governments or tribal consortia in coordinating the provision to tribal
families at risk of child abuse or neglect of child welfare services
and services under tribal programs funded under this part.
``(B) Use of funds.--A grant made to such a project
shall be used--
``(i) to improve case management for
families eligible for assistance from such a
tribal program;
``(ii) for supportive services and
assistance to tribal children in out-of-home
placements and the tribal families caring for
such children, including families who adopt
such children; and
``(iii) for prevention services and
assistance to tribal families at risk of child
abuse and neglect.
``(C) Reports.--The Secretary may require a
recipient of funds awarded under this paragraph to
provide the Secretary with such information as the
Secretary deems relevant to enable the Secretary to
facilitate and oversee the administration of any
project for which funds are provided under this
paragraph.''.
(b) Funding of Studies and Demonstrations.--Section 413(h)(1) (42
U.S.C. 613(h)(1)) is amended in the matter preceding subparagraph (A)
by striking ``1997 through 2002'' and inserting ``2003 through 2007''.
(c) Report on Enforcement of Certain Affidavits of Support and
Sponsor Deeming.--Not later than March 31, 2004, the Secretary of
Health and Human Services, in consultation with the Attorney General,
shall submit to the Congress a report on the enforcement of affidavits
of support and sponsor deeming as required by section 421, 422, and 432
of the Personal Responsibility and Work Opportunity Reconciliation Act
of 1996.
(d) Report on Coordination.--Not later than 6 months after the date
of the enactment of this Act, the Secretary of Health and Human
Services and the Secretary of Labor shall jointly submit a report to
the Congress describing common or conflicting data elements,
definitions, performance measures, and reporting requirements in the
Workforce Investment Act of 1998 and part A of title IV of the Social
Security Act, and, to the degree each Secretary deems appropriate, at
the discretion of either Secretary, any other program administered by
the respective Secretary, to allow greater coordination between the
welfare and workforce development systems.
SEC. 116. STUDIES BY THE CENSUS BUREAU AND THE GENERAL ACCOUNTING
OFFICE.
(a) Census Bureau Study.--
(1) In general.--Section 414(a) (42 U.S.C. 614(a)) is
amended to read as follows:
``(a) In General.--The Bureau of the Census shall implement a new
longitudinal survey of program dynamics, developed in consultation with
the Secretary and made available to interested parties, to allow for
the assessment of the outcomes of continued welfare reform on the
economic and child well-being of low-income families with children,
including those who received assistance or services from a State
program funded under this part, and, to the extent possible, shall
provide State representative samples. The content of the survey should
include such information as may be necessary to examine the issues of
out-of-wedlock childbearing, marriage, welfare dependency and
compliance with work requirements, the beginning and ending of spells
of assistance, work, earnings and employment stability, and the well-
being of children.''.
(2) Appropriation.--Section 414(b) (42 U.S.C. 614(b)) is
amended by striking ``1996,'' and all that follows through
``2002'' and inserting ``2003 through 2007''.
(b) GAO Studies.--
(1) Study regarding effect of phase-out rates.--
(A) In general.--The Comptroller General of the
United States shall conduct a study to determine the
combined effect of the phase-out rates for Federal
programs and policies which provide support to low-
income families and individuals as they move from
welfare to work, at all earning levels up to $35,000
per year, for at least 5 States including Wisconsin and
California, and any potential disincentives the
combined phase-out rates create for families to achieve
independence or to marry.
(B) Report.--Not later than 1 year after the date
of the enactment of this subsection, the Comptroller
General shall submit a report to Congress containing
the results of the study conducted under this paragraph
and, as appropriate, any recommendations consistent
with the results.
(2) Study regarding accuracy of work participation rates.--
(A) In general.--The Comptroller General of the
United States shall conduct a study to determine the
accuracy of the monthly work participation rates
reported by States under section 407 of the Social
Security Act (42 U.S.C. 607). The study shall include
an examination of --
(i) whether States are accurately
determining that recipients of assistance under
the temporary assistance to needy families
program established under part A of title IV of
such Act (42 U.S.C. 601 et seq.) are engaged in
countable hours (as defined in section 407(c)
of such Act (42 U.S.C. 607(c)) (as amended by
section 110(e)); and
(ii) the extent to which the minimum
participation rate required under that section
is reduced due to the caseload reduction credit
provided under section 407(b)(3) of the Social
Security Act (42 U.S.C. 607(b)(3) (as amended
by section 110(c)), the employment credit
provided under section 407(b)(4) of such Act
(42 U.S.C. 607(b)(4)) (as added by
section 110(c)), or under other provisions of part A of title IV of
such Act (42 U.S.C. 601 et seq.) that allow recipients of assistance
under the temporary assistance to needy families program to be deemed
to be engaged in a direct work activity for purposes of determining
such rate.
(B) Report.--Not later than 2 years after the date
of the enactment of this subsection, the Comptroller
General shall submit a report to Congress containing
the results of the study conducted under this paragraph
and, as appropriate, any recommendations consistent
with the results.
SEC. 117. DEFINITION OF ASSISTANCE.
(a) In General.--Section 419 (42 U.S.C. 619) is amended by adding
at the end the following:
``(6) Assistance.--
``(A) In general.--The term `assistance' means
payment, by cash, voucher, or other means, to or for an
individual or family for the purpose of meeting a
subsistence need of the individual or family (including
food, clothing, shelter, and related items, but not
including costs of transportation or child care).
``(B) Exception.--The term `assistance' does not
include a payment described in subparagraph (A) to or
for an individual or family on a short-term,
nonrecurring basis (as defined by the State in
accordance with regulations prescribed by the
Secretary).''.
(b) Conforming Amendments.--
(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by
striking ``assistance'' and inserting ``aid''.
(2) Section 404(f) (42 U.S.C. 604(f)) is amended by
striking ``assistance'' and inserting ``benefits or services''.
(3) Section 408(a)(5)(B)(i) (42 U.S.C. 608(a)(5)(B)(i)) is
amended in the heading by striking ``assistance'' and inserting
``aid''.
(4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is amended by
striking ``assistance'' and inserting ``aid''.
SEC. 118. TECHNICAL CORRECTIONS.
(a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is amended by inserting
a comma after ``appropriate''.
(b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. 611(a)(1)(A)(ii)(III))
is amended by striking the last close parenthesis.
(c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is amended by
striking ``section'' and inserting ``sections''.
(d)(1) Section 413 (42 U.S.C. 613) is amended by striking
subsection (g) and redesignating subsections (h) through (j) and
subsections (k) and (l) (as added by sections 112(c) and 115(a) of this
Act, respectively) as subsections (g) through (k), respectively.
(2) Each of the following provisions is amended by striking
``413(j)'' and inserting ``413(i)'':
(A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C.
603(a)(5)(A)(ii)(III)).
(B) Section 403(a)(5)(F) (42 U.S.C. 603(a)(5)(F)).
(C) Section 403(a)(5)(G)(ii) (42 U.S.C. 603(a)(5)(G)(ii)).
(D) Section 412(a)(3)(B)(iv) (42 U.S.C. 612(a)(3)(B)(iv)).
SEC. 119. FATHERHOOD PROGRAM.
(a) Short Title.--This section may be cited as the ``Promotion and
Support of Responsible Fatherhood and Healthy Marriage Act of 2002''.
(b) Fatherhood Program.--
(1) In general.--Title I of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (Public Law 104-
193) is amended by adding at the end the following:
``SEC. 117. FATHERHOOD PROGRAM.
``(a) In General.--Title IV (42 U.S.C. 601-679b) is amended by
inserting after part B the following:
`PART C--FATHERHOOD PROGRAM
`SEC. 441. PURPOSES.
`(a) Purposes.--The purposes of this part are:
`(1) To provide for projects and activities by public
entities and by nonprofit community entities, including
religious organizations, designed to test promising approaches
to accomplishing the following objectives:
`(A) Promoting responsible, caring, and effective
parenting through counseling, mentoring, and parenting
education, dissemination of educational materials and
information on parenting skills, encouragement of
positive father involvement, including the positive
involvement of nonresident fathers, and other methods.
`(B) Enhancing the abilities and commitment of
unemployed or low-income fathers to provide material
support for their families and to avoid or leave
welfare programs by assisting them to take full
advantage of education, job training, and job search
programs, to improve work habits and work skills, to
secure career advancement by activities such as
outreach and information dissemination, coordination,
as appropriate, with employment services and job
training programs, including the One-Stop delivery
system established under title I of the Workforce
Investment Act of 1998, encouragement and support of
timely payment of current child support and regular
payment toward past due child support obligations in
appropriate cases, and other methods.
`(C) Improving fathers' ability to effectively
manage family business affairs by means such as
education, counseling, and mentoring in matters
including household management, budgeting, banking, and
handling of financial transactions, time management,
and home maintenance.
`(D) Encouraging and supporting healthy marriages
and married fatherhood through such activities as
premarital education, including the use of premarital
inventories, marriage preparation programs, skills-
based marriage education programs, marital therapy,
couples counseling, divorce education and reduction programs, divorce
mediation and counseling, relationship skills enhancement programs,
including those designed to reduce child abuse and domestic violence,
and dissemination of information about the benefits of marriage for
both parents and children.
`(2) Through the projects and activities described in
paragraph (1), to improve outcomes for children with respect to
measures such as increased family income and economic security,
improved school performance, better health, improved emotional
and behavioral stability and social adjustment, and reduced
risk of delinquency, crime, substance abuse, child abuse and
neglect, teen sexual activity, and teen suicide.
`(3) To evaluate the effectiveness of various approaches
and to disseminate findings concerning outcomes and other
information in order to encourage and facilitate the
replication of effective approaches to accomplishing these
objectives.
`SEC. 442. DEFINITIONS.
`In this part, the terms ``Indian tribe'' and ``tribal
organization'' have the meanings given them in subsections (e) and (l),
respectively, of section 4 of the Indian Self-Determination and
Education Assistance Act.
`SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.
`(a) In General.--The Secretary may make grants for fiscal years
2003 through 2007 to public and nonprofit community entities, including
religious organizations, and to Indian tribes and tribal organizations,
for demonstration service projects and activities designed to test the
effectiveness of various approaches to accomplish the objectives
specified in section 441(a)(1).
`(b) Eligibility Criteria for Full Service Grants.--In order to be
eligible for a grant under this section, except as specified in
subsection (c), an entity shall submit an application to the Secretary
containing the following:
`(1) Project description.--A statement including--
`(A) a description of the project and how it will
be carried out, including the geographical area to be
covered and the number and characteristics of clients
to be served, and how it will address each of the 4
objectives specified in section 441(a)(1); and
`(B) a description of the methods to be used by the
entity or its contractor to assess the extent to which
the project was successful in accomplishing its
specific objectives and the general objectives
specified in section 441(a)(1).
`(2) Experience and qualifications.--A demonstration of
ability to carry out the project, by means such as
demonstration of experience in successfully carrying out
projects of similar design and scope, and such other
information as the Secretary may find necessary to demonstrate
the entity's capacity to carry out the project, including the
entity's ability to provide the non-Federal share of project
resources.
`(3) Addressing child abuse and neglect and domestic
violence.--A description of how the entity will assess for the
presence of, and intervene to resolve, domestic violence and
child abuse and neglect, including how the entity will
coordinate with State and local child protective service and
domestic violence programs.
`(4) Addressing concerns relating to substance abuse and
sexual activity.--A commitment to make available to each
individual participating in the project education about
alcohol, tobacco, and other drugs, and about the health risks
associated with abusing such substances, and information about
diseases and conditions transmitted through substance abuse and
sexual contact, including HIV/AIDS, and to coordinate with
providers of services addressing such problems, as appropriate.
`(5) Coordination with specified programs.--An undertaking
to coordinate, as appropriate, with State and local entities
responsible for the programs under parts A, B, and D of this
title, including programs under title I of the Workforce
Investment Act of 1998 (including the One-Stop delivery
system), and such other programs as the Secretary may require.
`(6) Records, reports, and audits.--An agreement to
maintain such records, make such reports, and cooperate with
such reviews or audits as the Secretary may find necessary for
purposes of oversight of project activities and expenditures.
`(7) Self-initiated evaluation.--If the entity elects to
contract for independent evaluation of the project (part or all
of the cost of which may be paid for using grant funds), a
commitment to submit to the Secretary a copy of the evaluation
report within 30 days after completion of the report and not
more than 1 year after completion of the project.
`(8) Cooperation with secretary's oversight and
evaluation.--An agreement to cooperate with the Secretary's
evaluation of projects assisted under this section, by means
including random assignment of clients to service recipient and
control groups, if determined by the Secretary to be
appropriate, and affording the Secretary access to the project
and to project-related records and documents, staff, and
clients.
`(c) Eligibility Criteria for Limited Purpose Grants.--In order to
be eligible for a grant under this section in an amount under $25,000
per fiscal year, an entity shall submit an application to the Secretary
containing the following:
`(1) Project description.--A description of the project and
how it will be carried out, including the number and
characteristics of clients to be served, the proposed duration
of the project, and how it will address at least 1 of the 4
objectives specified in section 441(a)(1).
`(2) Qualifications.--Such information as the Secretary may
require as to the capacity of the entity to carry out the
project, including any previous experience with similar
activities.
`(3) Coordination with related programs.--As required by
the Secretary in appropriate cases, an undertaking to
coordinate and cooperate with State and local entities
responsible for specific programs relating to the objectives of
the project including, as appropriate, jobs programs and
programs serving children and families.
`(4) Records, reports, and audits.--An agreement to
maintain such records, make such reports, and cooperate with
such reviews or audits as the Secretary may find necessary for
purposes of oversight of project activities and expenditures.
`(5) Cooperation with secretary's oversight and
evaluation.--An agreement to cooperate with the Secretary's
evaluation of projects assisted under this section, by means
including affording the Secretary access to the project and to
project-related records and documents, staff, and clients.
`(d) Considerations in Awarding Grants.--
`(1) Diversity of projects.--In awarding grants under this
section, the Secretary shall seek to achieve a balance among
entities of differing sizes, entities in differing geographic
areas, entities in urban and in rural areas, and entities
employing differing methods of achieving the purposes of this
section, including working with the State agency responsible
for the administration of part D to help fathers satisfy child
support arrearage obligations.
`(2) Preference for projects serving low-income fathers.--
In awarding grants under this section, the Secretary may give
preference to applications for projects in which a majority of
the clients to be served are low-income fathers.
`(e) Federal Share.--
`(1) In general.--Grants for a project under this section
for a fiscal year shall be available for a share of the cost of
such project in such fiscal year equal to--
`(A) up to 80 percent (or up to 90 percent, if the
entity demonstrates to the Secretary's satisfaction
circumstances limiting the entity's ability to secure
non-Federal resources) in the case of a project under
subsection (b); and
`(B) up to 100 percent, in the case of a project
under subsection (c).
`(2) Non-federal share.--The non-Federal share may be in
cash or in kind. In determining the amount of the non-Federal
share, the Secretary may attribute fair market value to goods,
services, and facilities contributed from non-Federal sources.
`SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION PROJECTS.
`(a) In General.--The Secretary may make grants under this section
for fiscal years 2003 through 2007 to eligible entities (as specified
in subsection (b)) for 2 multicity, multistate projects demonstrating
approaches to achieving the objectives specified in section 441(a)(1).
One of the projects shall test the use of married couples to deliver
program services.
`(b) Eligible Entities.--An entity eligible for a grant under this
section must be a national nonprofit fatherhood promotion organization
that meets the following requirements:
`(1) Experience with fatherhood programs.--The organization
must have substantial experience in designing and successfully
conducting programs that meet the purposes described in section
441.
`(2) Experience with multicity, multistate programs and
government coordination.--The organization must have experience
in simultaneously conducting such programs in more than 1 major
metropolitan area in more than 1 State and in coordinating such
programs, where appropriate, with State and local government
agencies and private, nonprofit agencies (including community-
based and religious organizations), including State or local
agencies responsible for child support enforcement and
workforce development.
`(c) Application Requirements.--In order to be eligible for a grant
under this section, an entity must submit to the Secretary an
application that includes the following:
`(1) Qualifications.--
`(A) Eligible entity.--A demonstration that the
entity meets the requirements of subsection (b).
`(B) Other.--Such other information as the
Secretary may find necessary to demonstrate the
entity's capacity to carry out the project, including
the entity's ability to provide the non-Federal share
of project resources.
`(2) Project description.--A description of and commitments
concerning the project design, including the following:
`(A) In general.--A detailed description of the
proposed project design and how it will be carried out,
which shall--
`(i) provide for the project to be
conducted in at least 3 major metropolitan
areas;
`(ii) state how it will address each of the
4 objectives specified in section 441(a)(1);
`(iii) demonstrate that there is a
sufficient number of potential clients to allow
for the random selection of individuals to
participate in the project and for comparisons
with appropriate control groups composed of
individuals who have not participated in such
projects; and
`(iv) demonstrate that the project is
designed to direct a majority of project
resources to activities serving low-income
fathers (but the project need not make services
available on a means-tested basis).
`(B) Oversight, evaluation, and adjustment
component.--An agreement that the entity--
`(i) in consultation with the evaluator
selected pursuant to section 445, and as
required by the Secretary, will modify the
project design, initially and (if necessary)
subsequently throughout the duration of the
project, in order to facilitate ongoing and
final oversight and evaluation of project
operation and outcomes (by means including, to
the maximum extent feasible, random assignment
of clients to service recipient and control
groups), and to provide for mid-course
adjustments in project design indicated by
interim evaluations;
`(ii) will submit to the Secretary revised
descriptions of the project design as modified
in accordance with clause (i); and
`(iii) will cooperate fully with the
Secretary's ongoing oversight and ongoing and
final evaluation of the project, by means
including affording the Secretary access to the
project and to project-related records and
documents, staff, and clients.
`(3) Addressing child abuse and neglect and domestic
violence.--A description of how the entity will assess for the
presence of, and intervene to resolve, domestic violence and
child abuse and neglect, including how the entity will
coordinate with State and local child protective service and
domestic violence programs.
`(4) Addressing concerns relating to substance abuse and
sexual activity.--A commitment to make available to each
individual participating in the project education about
alcohol, tobacco, and other drugs, and about the health risks
associated with abusing such substances, and information about
diseases and conditions transmitted through substance abuse and
sexual contact, including HIV/AIDS, and to coordinate with
providers of services addressing such problems, as appropriate.
`(5) Coordination with specified programs.--An undertaking
to coordinate, as appropriate, with State and local entities
responsible for the programs funded under parts A, B, and D of
this title, programs under title I of the Workforce Investment
Act of 1998 (including the One-Stop delivery system), and such
other programs as the Secretary may require.
`(6) Records, reports, and audits.--An agreement to
maintain such records, make such reports, and cooperate with
such reviews or audits (in addition to those required under the
preceding provisions of paragraph (2)) as the Secretary may
find necessary for purposes of oversight of project activities
and expenditures.
`(d) Federal Share.--
`(1) In general.--Grants for a project under this section
for a fiscal year shall be available for up to 80 percent of
the cost of such project in such fiscal year.
`(2) Non-federal share.--The non-Federal share may be in
cash or in kind. In determining the amount of the non-Federal
share, the Secretary may attribute fair market value to goods,
services, and facilities contributed from non-Federal sources.
`SEC. 445. EVALUATION.
`(a) In General.--The Secretary, directly or by contract or
cooperative agreement, shall evaluate the effectiveness of service
projects funded under sections 443 and 444 from the standpoint of the
purposes specified in section 441(a)(1).
`(b) Evaluation Methodology.--Evaluations under this section
shall--
`(1) include, to the maximum extent feasible, random
assignment of clients to service delivery and control groups
and other appropriate comparisons of groups of individuals
receiving and not receiving services;
`(2) describe and measure the effectiveness of the projects
in achieving their specific project goals; and
`(3) describe and assess, as appropriate, the impact of
such projects on marriage, parenting, domestic violence, child
abuse and neglect, money management, employment and earnings,
payment of child support, and child well-being, health, and
education.
`(c) Evaluation Reports.--The Secretary shall publish the following
reports on the results of the evaluation:
`(1) An implementation evaluation report covering the first
24 months of the activities under this part to be completed by
36 months after initiation of such activities.
`(2) A final report on the evaluation to be completed by
September 30, 2010.
`SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.
`The Secretary is authorized, by grant, contract, or cooperative
agreement, to carry out projects and activities of national
significance relating to fatherhood promotion, including--
`(1) Collection and dissemination of information.--
Assisting States, communities, and private entities, including
religious organizations, in efforts to promote and support
marriage and responsible fatherhood by collecting, evaluating,
developing, and making available (through the Internet and by
other means) to all interested parties information regarding
approaches to accomplishing the objectives specified in section
441(a)(1).
`(2) Media campaign.--Developing, promoting, and
distributing to interested States, local governments, public
agencies, and private nonprofit organizations, including
charitable and religious organizations, a media campaign that
promotes and encourages involved, committed, and responsible
fatherhood and married fatherhood.
`(3) Technical assistance.--Providing technical assistance,
including consultation and training, to public and private
entities, including community organizations and faith-based
organizations, in the implementation of local fatherhood
promotion programs.
`(4) Research.--Conducting research related to the purposes
of this part.
`SEC. 447. NONDISCRIMINATION.
`The projects and activities assisted under this part shall be
available on the same basis to all fathers and expectant fathers able
to benefit from such projects and activities, including married and
unmarried fathers and custodial and noncustodial fathers, with
particular attention to low-income fathers, and to mothers and
expectant mothers on the same basis as to fathers.
`SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RESERVATION FOR CERTAIN
PURPOSE.
`(a) Authorization.--There are authorized to be appropriated
$20,000,000 for each of fiscal years 2003 through 2007 to carry out the
provisions of this part.
`(b) Reservation.--Of the amount appropriated under this section
for each fiscal year, not more than 15 percent shall be available for
the costs of the multicity, multicounty, multistate demonstration
projects under section 444, evaluations under section 445, and projects
of national significance under section 446.'.
``(b) Inapplicability of Effective Date Provisions.--Section 116
shall not apply to the amendment made by subsection (a) of this
section.''.
(2) Clerical amendment.--Section 2 of such Act is amended
in the table of contents by inserting after the item relating
to section 116 the following new item:
``Sec. 117. Fatherhood program.''.
SEC. 120. STATE OPTION TO MAKE TANF PROGRAMS MANDATORY PARTNERS WITH
ONE-STOP EMPLOYMENT TRAINING CENTERS.
Section 408 of the Social Security Act (42 U.S.C. 608) is amended
by adding at the end the following:
``(h) State Option to Make TANF Programs Mandatory Partners With
One-Stop Employment Training Centers.--For purposes of section 121(b)
of the Workforce Investment Act of 1998, a State program funded under
part A of title IV of the Social Security Act shall be considered a
program referred to in paragraph (1)(B) of such section, unless, after
the date of the enactment of this subsection, the Governor of the State
notifies the Secretaries of Health and Human Services and Labor in
writing of the decision of the Governor not to make the State program a
mandatory partner.''.
SEC. 121. SENSE OF THE CONGRESS.
It is the sense of the Congress that a State welfare-to-work
program should include a mentoring program.
TITLE II--CHILD CARE
SEC. 201. ENTITLEMENT FUNDING.
Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amended--
(1) by striking ``and'' at the end of subparagraph (E);
(2) by striking the period at the end of subparagraph (F)
and inserting ``; and''; and
(3) by adding at the end the following:
``(G) $2,917,000,000 for each of fiscal years 2003
through 2007.''.
TITLE III--CHILD SUPPORT
SEC. 301. FEDERAL MATCHING FUNDS FOR LIMITED PASS THROUGH OF CHILD
SUPPORT PAYMENTS TO FAMILIES RECEIVING TANF.
(a) In General.--Section 457(a) (42 U.S.C. 657(a)) is amended--
(1) in paragraph (1)(A), by inserting ``subject to
paragraph (7)'' before the semicolon; and
(2) by adding at the end the following:
``(7) Federal matching funds for limited pass through of
child support payments to families receiving tanf.--
Notwithstanding paragraph (1), a State shall not be required to
pay to the Federal Government the Federal share of an amount
collected during a month on behalf of a family that is a
recipient of assistance under the State program funded under
part A, to the extent that--
``(A) the State distributes the amount to the
family;
``(B) the total of the amounts so distributed to
the family during the month--
``(i) exceeds the amount (if any) that, as
of December 31, 2001, was required under State
law to be distributed to a family under
paragraph (1)(B); and
``(ii) does not exceed the greater of--
``(I) $100; or
``(II) $50 plus the amount
described in clause (i); and
``(C) the amount is disregarded in determining the
amount and type of assistance provided to the family
under the State program funded under part A.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to amounts distributed on or after October 1, 2004.
SEC. 302. STATE OPTION TO PASS THROUGH ALL CHILD SUPPORT PAYMENTS TO
FAMILIES THAT FORMERLY RECEIVED TANF.
(a) In General.--Section 457(a) (42 U.S.C. 657(a)), as amended by
section 401(a) of this Act, is amended--
(1) in paragraph (2)(B), in the matter preceding clause
(i), by inserting ``, except as provided in paragraph (8),''
after ``shall''; and
(2) by adding at the end the following:
``(8) State option to pass through all child support
payments to families that formerly received tanf.--In lieu of
applying paragraph (2) to any family described in paragraph
(2), a State may distribute to the family any amount collected
during a month on behalf of the family.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to amounts distributed on or after October 1, 2004.
SEC. 303. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS FOR
FAMILIES RECEIVING TANF.
(a) In General.--Section 466(a)(10)(A)(i) (42 U.S.C.
666(a)(10)(A)(i)) is amended--
(1) by striking ``parent, or,'' and inserting ``parent
or''; and
(2) by striking ``upon the request of the State agency
under the State plan or of either parent,''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2004.
SEC. 304. MANDATORY FEE FOR SUCCESSFUL CHILD SUPPORT COLLECTION FOR
FAMILY THAT HAS NEVER RECEIVED TANF.
(a) In General.--Section 454(6)(B) (42 U.S.C. 654(6)(B)) is
amended--
(1) by inserting ``(i)'' after ``(B)'';
(2) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively;
(3) by adding ``and'' after the semicolon; and
(4) by adding after and below the end the following new
clause:
``(ii) in the case of an individual who has never
received assistance under a State program funded under
part A and for whom the State has collected at least
$500 of support, the State shall impose an annual fee
of $25 for each case in which services are furnished,
which shall be retained by the State from support
collected on behalf of the individual (but not from the
1st $500 so collected), paid by the individual applying
for the services, recovered from the absent parent, or
paid by the State out of its own funds (the payment of
which from State funds shall not be considered as an
administrative cost of the State for the operation of
the plan, and shall be considered income to the
program);''.
(b) Conforming Amendment.--Section 457(a)(3) (42 U.S.C. 657(a)(3))
is amended to read as follows:
``(3) Families that never received assistance.--In the case
of any other family, the State shall distribute to the family
the portion of the amount so collected that remains after
withholding any fee pursuant to section 454(6)(B)(ii).''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2003.
SEC. 305. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.
Not later than 6 months after the date of the enactment of this
Act, the Secretary of Health and Human Services shall submit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the procedures that the
States use generally to locate custodial parents for whom child support
has been collected but not yet distributed. The report shall include an
estimate of the total amount of such undistributed child support and
the average length of time it takes for such child support to be
distributed. To the extent the Secretary deems appropriate, the
Secretary shall include in the report recommendations as to whether
additional procedures should be established at the State or Federal
level to expedite the payment of undistributed child support.
SEC. 306. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF
UNEMPLOYMENT COMPENSATION PROGRAMS.
(a) In General.--Section 453(j) (42 U.S.C. 653(j)) is amended by
adding at the end the following:
``(7) Information comparisons and disclosure to assist in
administration of unemployment compensation programs.--
``(A) In general.--If a State agency responsible
for the administration of an unemployment compensation
program under Federal or State law transmits to the
Secretary the name and social security account number
of an individual, the Secretary shall, if the
information in the National Directory of New Hires
indicates that the individual may be employed, disclose
to the State agency the name, address, and employer
identification number of any putative employer of the
individual, subject to this paragraph.
``(B) Condition on disclosure.--The Secretary shall
make a disclosure under subparagraph (A) only to the
extent that the Secretary determines that the
disclosure would not interfere with the effective
operation of the program under this part.
``(C) Use of information.--A State agency may use
information provided under this paragraph only for
purposes of administering a program referred to in
subparagraph (A).''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2003.
SEC. 307. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING
PASSPORT DENIAL.
(a) In General.--Section 452(k)(1) (42 U.S.C. 652(k)(1)) is amended
by striking ``$5,000'' and inserting ``$2,500''.
(b) Conforming Amendment.--Section 454(31) (42 U.S.C. 654(31)) is
amended by striking ``$5,000'' and inserting ``$2,500''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2003.
SEC. 308. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD
SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.
(a) In General.--Section 464 (42 U.S.C. 664) is amended--
(1) in subsection (a)(2)(A), by striking ``(as that term is
defined for purposes of this paragraph under subsection (c))'';
and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``(1) Except as provided in
paragraph (2), as used in'' and inserting
``In''; and
(ii) by inserting ``(whether or not a
minor)'' after ``a child'' each place it
appears; and
(B) by striking paragraphs (2) and (3).
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on October 1, 2004.
SEC. 309. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT
OBLIGATIONS.
(a) In General.--Section 459(h) (42 U.S.C. 659(h)) is amended--
(1) in paragraph (1)(A)(ii)(V), by striking all that
follows ``Armed Forces'' and inserting a semicolon; and
(2) by adding at the end the following:
``(3) Limitations with respect to compensation paid to
veterans for service-connected disabilities.--Notwithstanding
any other provision of this section:
``(A) Compensation described in paragraph
(1)(A)(ii)(V) shall not be subject to withholding
pursuant to this section--
``(i) for payment of alimony; or
``(ii) for payment of child support if the
individual is fewer than 60 days in arrears in
payment of the support.
``(B) Not more than 50 percent of any payment of
compensation described in paragraph (1)(A)(ii)(V) may
be withheld pursuant to this section.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on October 1, 2004.
SEC. 310. IMPROVING FEDERAL DEBT COLLECTION PRACTICES.
Section 3716(h)(3) of title 31, United States Code, is amended to
read as follows:
``(3) In applying this subsection with respect to any debt owed to
a State, other than past due support being enforced by the State,
subsection (c)(3)(A) shall not apply. Subsection (c)(3)(A) shall apply
with respect to past due support being enforced by the State
notwithstanding any other provision of law, including sections 207 and
1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 1383(d)(1)),
section 413(b) of Public Law 91-173 (30 U.S.C. 923(b)), and section 14
of the Act of August 29, 1935 (45 U.S.C. 231m).''.
SEC. 311. MAINTENANCE OF TECHNICAL ASSISTANCE FUNDING.
Section 452(j) (42 U.S.C. 652(j)) is amended by inserting ``or the
amount appropriated under this paragraph for fiscal year 2002,
whichever is greater,'' before ``which shall be available''.
SEC. 312. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE FUNDING.
Section 453(o) (42 U.S.C. 653(o)) is amended--
(1) in the 1st sentence, by inserting ``or the amount
appropriated under this paragraph for fiscal year 2002,
whichever is greater,'' before ``which shall be available'';
and
(2) in the 2nd sentence, by striking ``for each of fiscal
years 1997 through 2001''.
TITLE IV--CHILD WELFARE
SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEMONSTRATION PROJECTS.
Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by striking
``2002'' and inserting ``2007''.
SEC. 402. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS.
Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by striking
``not more than 10''.
SEC. 403. ELIMINATION OF LIMITATION ON NUMBER OF STATES THAT MAY BE
GRANTED WAIVERS TO CONDUCT DEMONSTRATION PROJECTS ON SAME
TOPIC.
Section 1130 (42 U.S.C. 1320a-9) is amended by adding at the end
the following:
``(h) No Limit on Number of States That May Be Granted Waivers To
Conduct Same or Similar Demonstration Projects.--The Secretary shall
not refuse to grant a waiver to a State under this section on the
grounds that a purpose of the waiver or of the demonstration project
for which the waiver is necessary would be the same as or similar to a
purpose of another waiver or project that is or may be conducted under
this section.''.
SEC. 404. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS THAT MAY BE
GRANTED TO A SINGLE STATE FOR DEMONSTRATION PROJECTS.
Section 1130 (42 U.S.C. 1320a-9) is further amended by adding at
the end the following:
``(i) No Limit on Number of Waivers Granted to, or Demonstration
Projects That May Be Conducted by, a Single State.--The Secretary shall
not impose any limit on the number of waivers that may be granted to a
State, or the number of demonstration projects that a State may be
authorized to conduct, under this section.''.
SEC. 405. STREAMLINED PROCESS FOR CONSIDERATION OF AMENDMENTS TO AND
EXTENSIONS OF DEMONSTRATION PROJECTS REQUIRING WAIVERS.
Section 1130 (42 U.S.C. 1320a-9) is further amended by adding at
the end the following:
``(j) Streamlined Process for Consideration of Amendments and
Extensions.--The Secretary shall develop a streamlined process for
consideration of amendments and extensions proposed by States to
demonstration projects conducted under this section.''.
SEC. 406. AVAILABILITY OF REPORTS.
Section 1130 (42 U.S.C. 1320a-9) is further amended by adding at
the end the following:
``(k) Availability of Reports.--The Secretary shall make available
to any State or other interested party any report provided to the
Secretary under subsection (f)(2), and any evaluation or report made by
the Secretary with respect to a demonstration project conducted under
this section, with a focus on information that may promote best
practices and program improvements.''.
SEC. 407. TECHNICAL CORRECTION.
Section 1130(b)(1) (42 U.S.C. 1320a-9(b)(1)) is amended by striking
``422(b)(9)'' and inserting ``422(b)(10)''.
TITLE V--SUPPLEMENTAL SECURITY INCOME
SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY
DETERMINATIONS.
Section 1633 (42 U.S.C. 1383b) is amended by adding at the end the
following:
``(e)(1) The Commissioner of Social Security shall review
determinations, made by State agencies pursuant to subsection (a) in
connection with applications for benefits under this title on the basis
of blindness or disability, that individuals who have attained 18 years
of age are blind or disabled as of a specified onset date. The
Commissioner of Social Security shall review such a determination
before any action is taken to implement the determination.
``(2)(A) In carrying out paragraph (1), the Commissioner of Social
Security shall review--
``(i) at least 20 percent of all determinations referred to
in paragraph (1) that are made in fiscal year 2003;
``(ii) at least 40 percent of all such determinations that
are made in fiscal year 2004; and
``(iii) at least 50 percent of all such determinations that
are made in fiscal year 2005 or thereafter.
``(B) In carrying out subparagraph (A), the Commissioner of Social
Security shall, to the extent feasible, select for review the
determinations which the Commissioner of Social Security identifies as
being the most likely to be incorrect.''.
TITLE VI--STATE AND LOCAL FLEXIBILITY
SEC. 601. PROGRAM COORDINATION DEMONSTRATION PROJECTS.
(a) Purpose.--The purpose of this section is to establish a program
of demonstration projects in a State or portion of a State to
coordinate multiple public assistance, workforce development, and other
programs, for the purpose of supporting working individuals and
families, helping families escape welfare dependency, promoting child
well-being, or helping build stronger families, using innovative
approaches to strengthen service systems and provide more coordinated
and effective service delivery.
(b) Definitions.--In this section:
(1) Administering secretary.--The term ``administering
Secretary'' means, with respect to a qualified program, the
head of the Federal agency responsible for administering the
program.
(2) Qualified program.--The term ``qualified program''
means--
(A) a program under part A of title IV of the
Social Security Act;
(B) the program under title XX of such Act;
(C) activities funded under title I of the
Workforce Investment Act of 1998, except subtitle C of
such title;
(D) a demonstration project authorized under
section 505 of the Family Support Act of 1988;
(E) activities funded under the Wagner-Peyser Act;
(F) activities funded under the Adult Education and
Family Literacy Act;
(G) activities funded under the Child Care and
Development Block Grant Act of 1990;
(H) activities funded under the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.), except
that such term shall not include--
(i) any program for rental assistance under
section 8 of such Act (42 U.S.C. 1437f); and
(ii) the program under section 7 of such
Act (42 U.S.C. 1437e) for designating public
housing for occupancy by certain populations;
(I) activities funded under title I, II, III, or IV
of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11301 et seq.); or
(J) the food stamp program as defined in section
3(h) of the Food Stamp Act of 1977 (7 U.S.C. 2012(h)).
(c) Application Requirements.--The head of a State entity or of a
sub-State entity administering 2 or more qualified programs proposed to
be included in a demonstration project under this section shall (or, if
the project is proposed to include qualified programs administered by 2
or more such entities, the heads of the administering entities (each of
whom shall be considered an applicant for purposes of this section)
shall jointly) submit to the administering Secretary of each such
program an application that contains the following:
(1) Programs included.--A statement identifying each
qualified program to be included in the project, and describing
how the purposes of each such program will be achieved by the
project.
(2) Population served.--A statement identifying the
population to be served by the project and specifying the
eligibility criteria to be used.
(3) Description and justification.--A detailed description
of the project, including--
(A) a description of how the project is expected to
improve or enhance achievement of the purposes of the
programs to be included in the project, from the
standpoint of quality, of cost-effectiveness, or of
both; and
(B) a description of the performance objectives for
the project, including any proposed modifications to
the performance measures and reporting requirements
used in the programs.
(4) Waivers requested.--A description of the statutory and
regulatory requirements with respect to which a waiver is
requested in order to carry out the project, and a
justification of the need for each such waiver.
(5) Cost neutrality.--Such information and assurances as
necessary to establish to the satisfaction of the administering
Secretary, in consultation with the Director of the Office of
Management and Budget, that the proposed project is reasonably
expected to meet the applicable cost neutrality requirements of
subsection (d)(5).
(6) Evaluation and reports.--An assurance that the
applicant will conduct ongoing and final evaluations of the
project, and make interim and final reports to the
administering Secretary, at such times and in such manner as
the administering Secretary may require.
(7) Public housing agency plan.--In the case of an
application proposing a demonstration project that includes
activities referred to in subsection (b)(2)(H) of this
section--
(A) a certification that the applicable annual
public housing agency plan of any agency affected by
the project that is approved under section 5A of the
United States Housing Act of 1937 (42 U.S.C. 1437c-1)
by the Secretary includes the information specified in
paragraphs (1) through (4) of this subsection; and
(B) any resident advisory board recommendations,
and other information, relating to the project that,
pursuant to section 5A(e)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437c-1(e)(2), is
required to be included in the public housing agency
plan of any public housing agency affected by the
project.
(8) Other information and assurances.--Such other
information and assurances as the administering Secretary may
require.
(d) Approval of Applications.--
(1) In general.--The administering Secretary with respect
to a qualified program that is identified in an application
submitted pursuant to subsection (c) may approve the
application and, except as provided in paragraph (2), waive any
requirement applicable to the program, to the extent consistent
with this section and necessary and appropriate for the conduct
of the demonstration project proposed in the application, if
the administering Secretary determines that the project--
(A) has a reasonable likelihood of achieving the
objectives of the programs to be included in the
project;
(B) may reasonably be expected to meet the
applicable cost neutrality requirements of paragraph
(5), as determined by the Director of the Office of
Management and Budget; and
(C) includes the coordination of 2 or more
qualified programs.
(2) Provisions excluded from waiver authority.--Except as
provided in paragraph (3), a waiver shall not be granted under
paragraph (1)--
(A) with respect to any provision of law relating
to--
(i) civil rights or prohibition of
discrimination;
(ii) purposes or goals of any program;
(iii) maintenance of effort requirements;
(iv) health or safety;
(v) labor standards under the Fair Labor
Standards Act of 1938; or
(vi) environmental protection;
(B) with respect to section 241(a) of the Adult
Education and Family Literacy Act;
(C) in the case of a program under the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.),
with respect to any requirement under section 5A of
such Act (42 U.S.C. 1437c-1; relating to public housing agency plans
and resident advisory boards);
(D) in the case of the food stamp program (as
defined in section 3(h) of the Food Stamp Act of 1977
(7 U.S.C. 2012(h)), with respect to any requirement
under--
(i) section 6 (if waiving a requirement
under such section would have the effect of
expanding eligibility for the program), 7(b) or
16(c) of the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.); or
(ii) title IV of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1601 et
seq.); or
(E) with respect to any requirement that a State
pass through to a sub-State entity part or all of an
amount paid to the State.
(3) Grievances and complaints procedures.--Provisions
related to required State and local procedures for addressing
complaints or grievances regarding the matters identified in
paragraph (2)(A) may be waived to the extent necessary to
provide for the consolidation and uniformity of such procedures
in a State across programs or Acts described in subsection
(b)(2).
(4) Agreement of each administering secretary required.--
(A) In general.--An applicant may not conduct a
demonstration project under this section unless each
administering Secretary with respect to any program
proposed to be included in the project has approved the
application to conduct the project.
(B) Agreement with respect to funding and
implementation.--Before approving an application to
conduct a demonstration project under this section, an
administering Secretary shall have in place an
agreement with the applicant with respect to the
payment of funds and responsibilities required of the
administering Secretary with respect to the project.
(5) Cost-neutrality requirement.--
(A) General rule.--Notwithstanding any other
provision of law (except subparagraph (B)), the total
of the amounts that may be paid by the Federal
Government for a fiscal year with respect to the
programs in the State in which an entity conducting a
demonstration project under this section is located
that are affected by the project shall not exceed the
estimated total amount that the Federal Government
would have paid for the fiscal year with respect to the
programs if the project had not been conducted, as
determined by the Director of the Office of Management
and Budget.
(B) Special rule.--If an applicant submits to the
Director of the Office of Management and Budget a
request to apply the rules of this subparagraph to the
programs in the State in which the applicant is located
that are affected by a demonstration project proposed
in an application submitted by the applicant pursuant
to this section, during such period of not more than 5
consecutive fiscal years in which the project is in
effect, and the Director determines, on the basis of
supporting information provided by the applicant, to
grant the request, then, notwithstanding any other
provision of law, the total of the amounts that may be
paid by the Federal Government for the period with
respect to the programs shall not exceed the estimated
total amount that the Federal Government would have
paid for the period with respect to the programs if the
project had not been conducted.
(6) 90-day approval deadline.--
(A) In general.--If an administering Secretary
receives an application to conduct a demonstration
project under this section and does not disapprove the
application within 90 days after the receipt, then--
(i) the administering Secretary is deemed
to have approved the application for such
period as is requested in the application,
except to the extent inconsistent with
subsection (e); and
(ii) any waiver requested in the
application which applies to a qualified
program that is identified in the application
and is administered by the administering
Secretary is deemed to be granted, except to
the extent inconsistent with paragraph (2) or
(5) of this subsection.
(B) Deadline extended if additional information is
sought.--The 90-day period referred to in subparagraph
(A) shall not include any period that begins with the
date the Secretary requests the applicant to provide
additional information with respect to the application
and ends with the date the additional information is
provided.
(e) Duration of Projects.--A demonstration project under this
section may be approved for a term of not more than 5 years.
(f) Reports to Congress.--
(1) Report on disposition of applications.--Within 90 days
after an administering Secretary receives an application
submitted pursuant to this section, the administering Secretary
shall submit to each Committee of the Congress which has
jurisdiction over a qualified program identified in the
application notice of the receipt, a description of the
decision of the administering Secretary with respect to the
application, and the reasons for approving or disapproving the
application.
(2) Reports on projects.--Each administering Secretary
shall provide annually to the Congress a report concerning
demonstration projects approved under this section, including--
(A) the projects approved for each applicant;
(B) the number of waivers granted under this
section, and the specific statutory provisions waived;
(C) how well each project for which a waiver is
granted is improving or enhancing program achievement
from the standpoint of quality, cost-effectiveness, or
both;
(D) how well each project for which a waiver is
granted is meeting the performance objectives specified
in subsection (c)(3)(B);
(E) how each project for which a waiver is granted
is conforming with the cost-neutrality requirements of
subsection (d)(4); and
(F) to the extent the administering Secretary deems
appropriate, recommendations for modification of
programs based on outcomes of the projects.
(g) Amendment to United States Housing Act of 1937.--Section 5A(d)
of the United States Housing Act of 1937 (42 U.S.C. 1437c-1(d)) is
amended--
(1) by redesignating paragraph (18) as paragraph (19); and
(2) by inserting after paragraph (17) the following new
paragraph:
``(18) Program coordination demonstration projects.--In the
case of an agency that administers an activity referred to in
section 601(b)(2)(H) of the Working Toward Independence Act of
2002 that, during such fiscal year, will be included in a
demonstration project under section 601 of such Act, the
information that is required to be included in the application
for the project pursuant to paragraphs (1) through (4) of
section 601(b) of such Act.''.
SEC. 602. STATE FOOD ASSISTANCE BLOCK GRANT DEMONSTRATION PROJECT.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is amended by
adding at the end the following:
``SEC. 28. STATE FOOD ASSISTANCE BLOCK GRANT DEMONSTRATION PROJECT.
``(a) Establishment.--The Secretary shall establish a program to
make grants to States in accordance with this section to provide--
``(1) food assistance to needy individuals and families
residing in the State;
``(2) funds to operate an employment and training program
under subsection (g) for needy individuals under the program;
and
``(3) funds for administrative costs incurred in providing
the assistance.
``(b) Election.--
``(1) In general.--A State may elect to participate in the
program established under subsection (a).
``(2) Election revocable.--A State that elects to
participate in the program established under subsection (a) may
subsequently reverse the election of the State only once
thereafter. Following the reversal, the State shall only be
eligible to participate in the food stamp program in accordance
with the other sections of this Act and shall not receive a
block grant under this section.
``(3) Program exclusive.--A State that is participating in
the program established under subsection (a) shall not be
subject to, or receive any benefit under, this Act except as
provided in this section.
``(c) Lead Agency.--
``(1) Designation.--A State desiring to participate in the
program established under subsection (a) shall designate, in an
application submitted to the Secretary under subsection (d)(1),
an appropriate State agency that complies with paragraph (2) to
act as the lead agency for the State.
``(2) Duties.--The lead agency shall--
``(A) administer, either directly, through other
State agencies, or through local agencies, the
assistance received under this section by the State;
``(B) develop the State plan to be submitted to the
Secretary under subsection (d)(1); and
``(C) coordinate the provision of food assistance
under this section with other Federal, State, and local
programs.
``(d) Application and Plan.--
``(1) Application.--To be eligible to receive assistance
under this section, a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary shall by
regulation require, including--
``(A) an assurance that the State will comply with
the requirements of this section;
``(B) a State plan that meets the requirements of
paragraph (2); and
``(C) an assurance that the State will comply with
the requirements of the State plan under paragraph (2).
``(2) Requirements of plan.--
``(A) Lead agency.--The State plan shall identify
the lead agency.
``(B) Use of block grant funds.--The State plan
shall provide that the State shall use the amounts
provided to the State for each fiscal year under this
section--
``(i) to provide food assistance to needy
individuals and families residing in the State,
other than residents of institutions who are
ineligible for food stamps under section 3(i);
``(ii) to administer an employment and
training program under subsection (g) for needy
individuals under the program and to provide
reimbursements to needy individuals and
families as would be allowed under section
16(h)(3); and
``(iii) to pay administrative costs
incurred in providing the assistance.
``(C) Assistance for entire state.--The State plan
shall provide that benefits under this section shall be
available throughout the entire State.
``(D) Notice and hearings.--The State plan shall
provide that an individual or family who applies for,
or receives, assistance under this section shall be
provided with notice of, and an opportunity for a
hearing on, any action under this section that
adversely affects the individual or family.
``(E) Other assistance.--
``(i) Coordination.--The State plan may
coordinate assistance received under this
section with assistance provided under the
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.).
``(ii) Penalties.--If an individual or
family is penalized for violating part A of
title IV of the Act, the State plan may reduce
the amount of assistance provided under this
section or otherwise penalize the individual or
family.
``(F) Eligibility limitations.--The State plan
shall describe the income and resource eligibility
limitations that are established for the receipt of
assistance under this section.
``(G) Receiving benefits in more than 1
jurisdiction.--The State plan shall establish a system
to verify and otherwise ensure that no individual or
family shall receive benefits under this section in
more than 1 jurisdiction within the State.
``(H) Privacy.--The State plan shall provide for
safeguarding and restricting the use and disclosure of
information about any individual or family receiving
assistance under this section.
``(I) Other information.--The State plan shall
contain such other information as may be required by
the Secretary.
``(3) Approval of application and plan.--During fiscal
years 2003 through 2007, the Secretary may approve the
applications and State plans that satisfy the requirements of
this section of not more than 5 States for a term of not more
than 5 years.
``(e) Construction of Facilities.--No funds made available under
this section shall be expended for the purchase or improvement of land,
or for the purchase, construction, or permanent improvement of any
building or facility.
``(f) Benefits for Aliens.--No individual shall be eligible to
receive benefits under a State plan approved under subsection (d)(3) if
the individual is not eligible to participate in the food stamp program
under title IV of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1601 et seq.).
``(g) Employment and Training.--Each State shall implement an
employment and training program for needy individuals under the
program.
``(h) Enforcement.--
``(1) Review of compliance with state plan.--The Secretary
shall review and monitor State compliance with this section and
the State plan approved under subsection (d)(3).
``(2) Noncompliance.--
``(A) In general.--If the Secretary, after
reasonable notice to a State and opportunity for a
hearing, finds that--
``(i) there has been a failure by the State
to comply substantially with any provision or
requirement set forth in the State plan
approved under subsection (d)(3); or
``(ii) in the operation of any program or
activity for which assistance is provided under
this section, there is a failure by the State
to comply substantially with any provision of
this section, the Secretary shall notify the
State of the finding and that no further
payments will be made to the State under this
section (or, in the case of noncompliance in
the operation of a program or activity, that no
further payments to the State will be made with
respect to the program or activity) until the
Secretary is satisfied that there is no longer
any failure to comply or that the noncompliance
will be promptly corrected.
``(B) Other sanctions.--In the case of a finding of
noncompliance made pursuant to subparagraph (A), the
Secretary may, in addition to, or in lieu of, imposing
the sanctions described in subparagraph (A), impose
other appropriate sanctions, including recoupment of
money improperly expended for purposes prohibited or
not authorized by this section and disqualification
from the receipt of financial assistance under this
section.
``(C) Notice.--The notice required under
subparagraph (A) shall include a specific
identification of any additional sanction being imposed
under subparagraph (B).
``(3) Issuance of regulations .--The Secretary shall
establish by regulation procedures for--
``(A) receiving, processing, and determining the
validity of complaints concerning any failure of a
State to comply with the State plan or any requirement
of this section; and
``(B) imposing sanctions under this section.
``(i) Payments.--
``(1) In general.--For each fiscal year, the Secretary
shall pay to a State that has an application approved by the
Secretary under subsection (d)(3) an amount that is equal to
the allotment of the State under subsection (l)(2) for the
fiscal year.
``(2) Method of payment.--The Secretary shall make payments
to a State for a fiscal year under this section by issuing 1 or
more letters of credit for the fiscal year, with necessary
adjustments on account of overpayments or underpayments, as
determined by the Secretary.
``(3) Spending of funds by state.--
``(A) In general.--Except as provided in
subparagraph (B), payments to a State from an allotment
under subsection (l)(2) for a fiscal year may be
expended by the State only in the fiscal year.
``(B) Carryover.--The State may reserve up to 10
percent of an allotment under subsection (l)(2) for a
fiscal year to provide assistance under this section in
subsequent fiscal years, except that the reserved funds
may not exceed 30 percent of the total allotment
received under this section for a fiscal year.
``(4) Provision of food assistance.--A State may provide
food assistance under this section in any manner determined
appropriate by the State to provide food assistance to needy
individuals and families in the State, such as electronic
benefits transfer limited to food purchases, coupons limited to
food purchases, or direct provision of commodities.
``(5) Definition of food assistance.--In this section, the
term `food assistance' means assistance that may be used only
to obtain food, as defined in section 3(g).
``(j) Audits.--
``(1) Requirement.--After the close of each fiscal year, a
State shall arrange for an audit of the expenditures of the
State during the program period from amounts received under
this section.
``(2) Independent auditor.--An audit under this section
shall be conducted by an entity that is independent of any
agency administering activities that receive assistance under
this section and be in accordance with generally accepted
auditing principles.
``(3) Payment accuracy.--Each annual audit under this
section shall include an audit of payment accuracy under this
section that shall be based on a statistically valid sample of
the caseload in the State.
``(4) Submission.--Not later than 30 days after the
completion of an audit under this section, the State shall
submit a copy of the audit to the legislature of the State and
to the Secretary.
``(5) Repayment of amounts.--Each State shall repay to the
United States any amounts determined through an audit under
this section to have not been expended in accordance with this
section or to have not been expended in accordance with the
State plan, or the Secretary may offset the amounts against any
other amount paid to the State under this section.
``(k) Nondiscrimination.--
``(1) In general.--The Secretary shall not provide
financial assistance for any program, project, or activity
under this section if any person with responsibilities for the
operation of the program, project, or activity discriminates
with respect to the program, project, or activity because of
race, religion, color, national origin, sex, or disability.
``(2) Enforcement.--The powers, remedies, and procedures
set forth in title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.) may be used by the Secretary to enforce
paragraph (1).
``(l) Allotments.--
``(1) Definition of state.--In this section, the term
'State' means each of the 50 States, the District of Columbia,
Guam, and the Virgin Islands of the United States.
``(2) State allotment.--
``(A) In general.--Except as provided in
subparagraph (B), from the amounts made available under
section 18 of this Act for each fiscal year, the
Secretary shall allot to each State participating in
the program established under subsection (a) an amount
that is equal to the sum of--
``(i) the greater of, as determined by the
Secretary--
``(I) the total dollar value of all
benefits issued under the food stamp
program established under this Act by
the State during fiscal year 2002; or
``(II) the average per fiscal year
of the total dollar value of all
benefits issued under the food stamp
program by the State during each of
fiscal years 2000 through 2002; and
``(ii) the greater of, as determined by the
Secretary--
``(I) the total amount received by
the State for administrative costs and
the employment and training program
under subsections (a) and (h),
respectively, of section 16 of this Act
for fiscal year 2002; or
``(II) the average per fiscal year
of the total amount received by the
State for administrative costs and the
employment and training program under
subsections (a) and (h), respectively,
of section 16 of this Act for each of
fiscal years 2000 through 2002.
``(B) Insufficient funds.--If the Secretary finds
that the total amount of allotments to which States
would otherwise be entitled for a fiscal year under
subparagraph (A) will exceed the amount of funds that
will be made available to provide the allotments for
the fiscal year, the Secretary shall reduce the
allotments made to States under this subsection, on a
pro rata basis, to the extent necessary to allot under
this subsection a total amount that is equal to the
funds that will be made available.''.
TITLE VI--ABSTINENCE EDUCATION
SEC. 701. EXTENSION OF ABSTINENCE EDUCATION FUNDING UNDER MATERNAL AND
CHILD HEALTH PROGRAM.
Section 510(d) (42 U.S.C. 710(d)) is amended by striking ``2002''
and inserting ``2007''.
TITLE VIII--TRANSITIONAL MEDICAL ASSISTANCE
SEC. 801. ONE-YEAR REAUTHORIZATION OF TRANSITIONAL MEDICAL ASSISTANCE.
(a) In General.--Section 1925(f) (42 U.S.C. 1396r-6(f)) is amended
by striking ``2002'' and inserting ``2003''.
(b) Conforming Amendment.--Section 1902(e)(1)(B) (42 U.S.C.
1396a(e)(1)(B)) is amended by striking ``2002'' and inserting ``2003''.
TITLE IX--EFFECTIVE DATE
SEC. 901. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided, the amendments made
by this Act shall take effect on October 1, 2002.
(b) Exception.--In the case of a State plan under part A or D of
title IV of the Social Security Act which the Secretary determines
requires State legislation in order for the plan to meet the additional
requirements imposed by the amendments made by this Act, the effective
date of the amendments imposing the additional requirements shall be 3
months after the first day of the first calendar quarter beginning
after the close of the first regular session of the State legislature
that begins after the date of the enactment of this Act. For purposes
of the preceding sentence, in the case of a State that has a 2-year
legislative session, each year of the session shall be considered to be
a separate regular session of the State legislature.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S5778-5779)
Read twice and referred to the Committee on Finance.
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