[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4 Reported in Senate (RS)]
Calendar No. 305
108th CONGRESS
1st Session
H. R. 4
[Report No. 108-162]
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 13, 2003
Received; read twice and referred to the Committee on Finance
October 3, 2003
Reported by Mr. Grassley, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
AN ACT
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 ``Personal Responsibility and
Individual Development for Everyone Act'' or the ``PRIDE Act''.
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.
TITLE I--TANF
Sec. 101. State plan.
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. Work participation requirements.
Sec. 110. Universal engagement and family self-sufficiency plan
requirements; other prohibitions and
requirements.
Sec. 111. Penalties.
Sec. 112. Data collection and reporting.
Sec. 113. Direct funding and administration by Indian tribes.
Sec. 114. Research, evaluations, and national studies.
Sec. 115. Study by the Census Bureau.
Sec. 116. Funding for child care.
Sec. 117. Definitions.
Sec. 118. Responsible fatherhood program.
Sec. 119. Additional grants.
Sec. 120. Technical corrections.
TITLE II--ABSTINENCE EDUCATION
Sec. 201. Extension of abstinence education program.
TITLE III--CHILD SUPPORT
Sec. 301. Distribution of child support collected by States on behalf
of children receiving certain welfare
benefits.
Sec. 302. Mandatory review and adjustment of child support orders for
families receiving TANF.
Sec. 303. Report on undistributed child support payments.
Sec. 304. Use of new hire information to assist in administration of
unemployment compensation programs.
Sec. 305. Decrease in amount of child support arrearage triggering
passport denial.
Sec. 306. Use of tax refund intercept program to collect past-due child
support on behalf of children who are not
minors.
Sec. 307. Garnishment of compensation paid to veterans for service-
connected disabilities in order to enforce
obligations.
Sec. 308. Improving Federal debt collection practices.
Sec. 309. Maintenance of technical assistance funding.
Sec. 310. Maintenance of Federal parent locator service funding.
Sec. 311. Identification and seizure of assets held by multistate
financial institutions.
Sec. 312. Information comparisons with insurance data.
Sec. 313. Tribal access to the Federal parent locator service.
Sec. 314. Reimbursement of Secretary's costs of information comparisons
and disclosure for enforcement of
obligations on Higher Education Act loans
and grants.
Sec. 315. Technical amendment relating to cooperative agreements
between States and Indian tribes.
Sec. 316. Claims upon longshore and harbor workers' compensation for
child support.
Sec. 317. State option to use statewide automated data processing and
information retrieval system for interstate
cases.
Sec. 318. Interception of gambling winnings for child support.
Sec. 319. State law requirement concerning the Uniform Interstate
Family Support Act (UIFSA).
Sec. 320. Grants to States for access and visitation programs.
Sec. 321. Timing of corrective action year for State noncompliance with
child support enforcement program
requirements.
TITLE IV--CHILD WELFARE
Sec. 401. Extension of authority to approve demonstration projects.
Sec. 402. Removal of Commonwealth of Puerto Rico foster care funds from
limitation on payments.
Sec. 403. Technical correction.
TITLE V--SUPPLEMENTAL SECURITY INCOME
Sec. 501. Review of State agency blindness and disability
determinations.
TITLE VI--TRANSITIONAL MEDICAL ASSISTANCE
Sec. 601. Extension and simplification of the transitional medical
assistance program (TMA).
Sec. 602. Prohibition against covering childless adults with SCHIP
funds.
TITLE VII--EFFECTIVE DATE
Sec. 701. 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.
TITLE I--TANF
SEC. 101. STATE PLAN.
(a) Performance Improvement.--Section 402(a) (42 U.S.C. 602(a)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by redesignating clause (vi) as clause
(vii); and
(ii) by striking clause (v) and inserting
the following:
``(v) Establish specific measurable
performance objectives for pursuing the
purposes of the program under this part as
described in section 401(a), including by--
``(I) establishing objectives
consistent (as determined by the State)
with the criteria used by the Secretary
in establishing performance targets
under section 403(a)(4)(C) (including
with respect to workplace attachment
and advancement), and with such
additional criteria related to other
purposes of the program under this part
as described in section 401(a) as the
Secretary, in consultation with the
National Governors' Association and the
American Public Human Services
Association, shall establish; and
``(II) describing 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 plans to use 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)--
(i) by striking clauses (i) and (iv);
(ii) by redesignating clauses (ii) and
(iii) as clauses (i) and (ii), respectively;
and
(iii) by inserting after clause (ii) (as so
redesignated by clause (ii)) the following:
``(iii) If the State is undertaking any
strategies or programs to engage faith-based
organizations in the provision of services
funded under this part, or that otherwise
relate to section 104 of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, the document shall
describe such strategies and programs.
``(iv) The document shall describe
strategies to improve program management and
performance.
``(v) The document shall include a
performance report which details State progress
toward full engagement for all adult or minor
child head of household recipients of
assistance.'';
(2) in paragraph (4), by inserting ``and tribal'' after
``that local''; and
(3) by adding at the end the following:
``(8) Certification of consultation on provision of
transportation aid.--In the case of a State that provides
transportation aid under the State program, a certification by
the chief executive officer of the State that State and local
transportation agencies and planning bodies have been consulted
in the development of the plan.''.
(b) Procedures for Submitting and Amending State Plans.--
(1) In general.--Subsection (b) of section 402 (42 U.S.C.
602(b)) is amended to read as follows:
``(b) Procedures for Submitting and Amending State Plans.--
``(1) Standard state plan format.--The Secretary shall,
after notice and public comment, develop a proposed Standard
State Plan Form to be used by States under subsection (a). Such
form shall be finalized by the Secretary for use by States not
later than 9 months after the date of enactment of the Personal
Responsibility and Individual Development for Everyone Act.
``(2) Requirement for completed plan using standard state
plan format by fiscal year 2005.--Notwithstanding any other
provision of law, each State shall submit a complete State
plan, using the Standard State Plan Form developed under
paragraph (1), not later than October 1, 2004.
``(3) Public notice and comment.--Prior to submitting a
State plan to the Secretary under this section, the State
shall--
``(A) make the proposed State plan available to the
public through an appropriate State maintained Internet
website and through other means as the State determines
appropriate;
``(B) allow for a reasonable public comment period
of not less than 45 days; and
``(C) make comments received concerning such plan
or, at the discretion of the State, a summary of the
comments received available to the public through such
website and through other means as the State determines
appropriate.
``(4) Public availability of state plan.--A State shall
ensure that the State plan that is in effect for any fiscal
year is available to the public through an appropriate State
maintained Internet website and through other means as the
State determines appropriate.
``(5) Amending the state plan.--A State shall file an
amendment to the State plan with the Secretary if the State
determines that there has been a material change in any
information required to be included in the State plan or any
other information that the State has included in the plan,
including substantial changes in the use of funding. Prior to
submitting an amendment to the State plan to the Secretary, the
State shall--
``(A) make the proposed amendment available to the
public as provided for in paragraph (3)(A);
``(B) allow for a reasonable public comment period
of not less than 45 days; and
``(C) make the comments available as provided for
in paragraph (3)(C).''.
(2) Conforming amendment.--Section 402 (42 U.S.C. 602) is
amended by striking subsection (c).
(c) Consultation With State Regarding Plan and Design of Tribal
Programs.--Section 412(b)(1) (42 U.S.C. 612(b)(1)) is amended--
(1) in subparagraph (E), by striking ``and'' at the end;
(2) in subparagraph (F), by striking the period at the end
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.''.
(d) 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.''.
(e) Annual Ranking of States.--Section 413(d)(1) (42 U.S.C.
613(d)(1)) is amended to read as follows:
``(1) Annual ranking of states.--
``(A) In general.--The Secretary shall rank
annually the States to which grants are paid under
section 403 in the order of their success in--
``(i) placing recipients of assistance
under the State program funded under this part
into private sector jobs;
``(ii) the success of the recipients in
retaining employment;
``(iii) the ability of the recipients to
increase their wages;
``(iv) the degree to which recipients have
workplace attachment and advancement;
``(v) reducing the overall welfare
caseload; and
``(vi) when a practicable method for
calculating this information becomes available,
diverting individuals from formally applying to
the State program and receiving assistance.
``(B) Consideration of other factors.--In ranking
States under this paragraph, the Secretary shall take
into account the average number of minor children
living at home in families in the State that have
incomes below the poverty line and the amount of
funding provided each State under this part for such
families.''.
SEC. 102. FAMILY ASSISTANCE GRANTS.
(a) Extension of Authority.--Section 403(a)(1) (42 U.S.C.
603(a)(1)(A)), as amended by section 3(a) of the Welfare Reform
Extension Act of 2003 (Public Law 108-040, 117 Stat. 836), is amended--
(1) in subparagraph (A)--
(A) by striking ``1996, 1997, 1998, 1999, 2000,
2001, 2002, and 2003'' and inserting ``2004 through
2008''; and
(B) by inserting ``payable to the State for the
fiscal year'' before the period; and
(2) in subparagraph (C), by striking ``for fiscal year
2003'' and all that follows through the period, and inserting
``for each of fiscal years 2004 through 2008, $16,566,542,000
for grants under this paragraph.''.
(b) Matching Grants for the Territories.--Section 1108(b)(2) (42
U.S.C. 1308(b)(2)), as amended by section 3(b) of the Welfare Reform
Extension Act of 2003 (Public Law 108-040, 117 Stat. 836), is amended
by striking ``1997 through 2003'' and inserting ``2004 through 2008''.
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)), as
amended by section 101(a), is amended by adding at the end the
following:
``(viii) Encourage equitable treatment of
healthy 2-parent married 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.--
``(i) In general.--The Secretary shall
award competitive grants to States,
territories, and Indian tribes and tribal
organizations for not more than 50 percent of
the cost of developing and implementing
innovative programs to promote and support
healthy 2-parent married families.
``(ii) Use of other tanf funds.--A State or
Indian tribe with an approved tribal family
assistance plan may use funds provided under
other grants made under this part for all or
part of the expenditures incurred for the
remainder of the costs described in clause (i).
In the case of a State, any such funds expended
shall not be considered qualified State
expenditures for purposes of section 409(a)(7).
``(B) Healthy marriage promotion activities.--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, non-married expectant fathers, and non-
married recent parents.
``(iv) Pre-marital education and marriage
skills training for engaged couples and for
couples or individuals 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.
``(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) Voluntary participation.--Participation in
programs or activities described in any of clauses
(iii) through (vii) shall be voluntary.
``(D) General rules governing use of funds.--The
rules of section 404, other than subsection (b) of that
section, shall not apply to a grant made under this
paragraph.
``(E) Requirements for receipt of funds.--A State,
territory, or Indian tribe or tribal organization may
not be awarded a grant under this paragraph unless the
State, territory, Indian tribe or tribal organization,
as a condition of receiving funds under such a grant--
``(i) consults with experts in domestic
violence or with relevant community domestic
violence coalitions in developing such programs
or activities; and
``(ii) describes in the application for a
grant under this paragraph--
``(I) how the programs or
activities proposed to be conducted
will address, as appropriate, issues of
domestic violence; and
``(II) what the State, territory,
or Indian tribe or tribal organization,
will do, to the extent relevant, to
ensure that participation in such
programs or activities is voluntary,
and to inform potential participants
that their involvement is voluntary.
``(F) Appropriation.--
``(i) In general.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each
of fiscal years 2004 through 2008, $100,000,000
for grants under this paragraph.
``(ii) Extended availability of funds.--
``(I) In general.--Funds
appropriated under clause (i) for each
of fiscal years 2004 through 2008 shall
remain available to the Secretary until
expended.
``(II) Authority for grant
recipients.--A State, territory, or
Indian tribe or tribal organization may
use funds made available under a grant
awarded under this paragraph without
fiscal year limitation pursuant to the
terms of the grant.''.
(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.--
Subject to subclauses (II) and (III),
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).''.
(d) Purposes.--Section 401(a)(4) (42 U.S.C. 601(a)(4)) is amended
by striking ``two-parent families'' and inserting ``healthy 2-parent
married families, and encourage responsible fatherhood''.
SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN CERTAIN
STATES.
Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)), as amended by
section 3(d) of the Welfare Reform Extension Act of 2003 (Public Law
108-040), 117 Stat. 837), is amended--
(1) in clause (i), by striking ``2002 and 2003'' and
inserting ``2004 through 2007'';
(2) in clause (ii), by striking ``2003'' and inserting
``2007''; and
(3) in clause (iii), by striking ``2002 and 2003'' and
inserting ``2004 through 2007''.
SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.
(a) Bonus To Reward Employment Achievement.--Section 403(a)(4) (42
U.S.C. 603(a)(4)) is amended to read as follows:
``(4) Bonus to reward employment achievement.--
``(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),
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, 2004, 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, increased earnings from
employment, and workplace attachment and
advancement 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 years 2004
and 2005.--For the purposes of awarding a bonus
under this paragraph for bonus year 2004 or
2005, the Secretary may measure the performance
of a State in fiscal year 2003 or 2004 (as the
case may be) 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 $600,000,000.
``(E) Definitions.--In this paragraph:
``(i) Bonus year.--The term `bonus year'
means each of fiscal years 2004 through 2009.
``(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 the period of
fiscal years 2004 through 2009, $600,000,000 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.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2003.
SEC. 106. CONTINGENCY FUND.
(a) Contingency Funding Available to Needy States.--Section 403(b)
(42 U.S.C. 603(b)) is amended--
(1) by striking paragraphs (1) through (3) and inserting
the following:
``(1) Contingency fund grants.--
``(A) Payments.--Subject to subparagraph (C), and
out of funds appropriated under subparagraph (E), each
State shall receive a contingency fund grant for each
eligible month in which the State is a needy State
under paragraph (3).
``(B) Monthly contingency fund grant amount.--For
each eligible month in which a State is a needy State,
the State shall receive a contingency fund grant equal
to the product of--
``(i) the applicable percentage (as defined
under subparagraph (D)(i)) of the applicable
benefit level (as defined in subparagraph
(D)(ii)); and
``(ii) the amount by which the total number
of families that received assistance under the
State program funded under this part in the
most recently concluded 3-month period for
which data are available from the State exceeds
a 5-percent increase in the number of such
families in the corresponding 3-month period in
either of the 2 most recent preceding fiscal
years and that was due, in large measure, to
economic conditions rather than State policy
changes.
``(C) Limitation.--The total amount paid to a
single State under subparagraph (A) during a fiscal
year shall not exceed the amount equal to 10 percent of
the State family assistance grant (as defined under
subparagraph (B) of subsection (a)(1)).
``(D) Definitions.--In this paragraph:
``(i) Applicable percentage.--The term
`applicable percentage' means the Federal
medical assistance percentage for the State (as
defined in section 1905(b)).
``(ii) Applicable benefit level.--
``(I) In general.--Subject to
subclause (II), the term `applicable
benefit level' means the amount equal
to the maximum cash assistance grant
for a family consisting of 3
individuals under the State program
funded under this part.
``(II) Rule for states with more
than 1 maximum level.--In the case of a
State that has more than 1 maximum cash
assistance grant level for families
consisting of 3 individuals, the basic
assistance cost shall be the amount
equal to the maximum cash assistance
grant level applicable to the largest
number of families consisting of 3
individuals receiving assistance under
the State program funded under this
part.
``(E) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there is appropriated for the period of
fiscal years 2004 through 2008, such sums as are
necessary for making contingency fund grants under this
subsection in a total amount not to exceed
$2,000,000,000.'';
(2) by redesignating paragraph (4) as paragraph (2); and
(3) in paragraph (2), as so redesignated--
(A) by striking ``(3)(A)'' and inserting ``(1)'';
and
(B) by striking ``2-month period that begins with
any'' and inserting ``fiscal year quarter that includes
a''.
(b) Modification of Definition of Needy State.--Section 403(b), as
amended by subsection (a), (42 U.S.C. 603(b)) is further amended--
(1) by striking paragraphs (5) and (6);
(2) by redesignating paragraphs (7) and (8) as paragraphs
(5) and (6), respectively; and
(3) by inserting after paragraph (2) (as redesignated by
subsection (a)(2)) the following:
``(3) Initial determination of whether a state qualifies as
a needy state.--
``(A) In general.--For purposes of paragraph (1),
subject to paragraph (4), a State will be initially
determined to be a needy State for a month if, as
determined by the Secretary--
``(i) the monthly average of the
unduplicated number of families that received
assistance under the State program funded under
this part in the most recently concluded 3-
month period for which data are available from
the State increased by at least 5 percent over
the number of such families that received such
benefits in the corresponding 3-month period in
either of the 2 most recent preceding fiscal
years;
``(ii) the increase in the number of such
families for the State was due, in large
measure, to economic conditions rather than
State policy changes; and
``(iii) the State satisfies any of the
following criteria:
``(I) The average rate of total
unemployment in the State (seasonally
adjusted) for the period consisting of
the most recent 3 months for which data
are available has increased by the
lesser of 1.5 percentage points or by
50 percent over the corresponding 3-
month period in either of the 2 most
recent preceding fiscal years.
``(II) The average insured
unemployment rate for the most recent
13 weeks for which data are available
has increased by 1 percentage point
over the corresponding 13-week period
in either of the 2 most recent
preceding fiscal years.
``(III) As determined by the
Secretary of Agriculture, the monthly
average number of households (as of the
last day of each month) that
participated in the food stamp program
in the State in the then most recently
concluded 3-month period for which data
are available exceeds by at least 15
percent the monthly average number of
households (as of the last day of each
month) in the State that participated
in the food stamp program in the
corresponding 3-month period in either
of the 2 most recent preceding fiscal
years, but only if the Secretary and
the Secretary of Agriculture concur in
the determination that the State's
increased caseload was due, in large
measure, to economic conditions rather
than changes in Federal or State
policies related to the food stamp
program.
``(B) Duration.--A State that qualifies as a needy
State--
``(i) under subclause (I) or (II) of
subparagraph (A)(iii), shall be considered a
needy State until the State's average rate of
total unemployment or the State's insured
unemployment rate, respectively, falls below
the level attained in the applicable period
that was first used to determine that the State
qualified as a needy State under that
subparagraph (and in the case of the insured
unemployment rate, without regard to any
declines in the rate that are the result of
seasonal variation); and
``(ii) under subclause (III) of
subparagraph (A)(iii), shall be considered a
needy State so long as the State meets the
criteria for being considered a needy State
under that subparagraph.
``(4) Exceptions.--
``(A) Unexpended balances.--
``(i) In general.--Notwithstanding
paragraph (3), a State that has unexpended TANF
balances in an amount that exceeds 30 percent
of the total amount of grants received by the
State under subsection (a) for the most
recently completed fiscal year (other than
welfare-to-work grants made under paragraph (5)
of that subsection prior to fiscal year 2000),
shall not be a needy State under this
subsection.
``(ii) Definition of unexpended tanf
balances.--In clause (i), the term `unexpended
TANF balances' means the lessor of--
``(I) the total amount of grants
made to the State (regardless of the
fiscal year in which such funds were
awarded) under subsection (a) (other
than welfare-to-work grants made under
paragraph (5) of that subsection prior
to fiscal year 2000) but not yet
expended as of the end of the fiscal
year preceding the fiscal year for
which the State would, in the absence
of this subparagraph, be considered a
needy State under this subsection; and
``(II) the total amount of grants
made to the State under subsection (a)
(other than welfare-to-work grants made
under paragraph (5) of that subsection
prior to fiscal year 2000) but not yet
expended as of the end of such
preceding fiscal year, plus the
difference between--
``(aa) the pro rata share
of the current fiscal year
grant to be made under
subsection (a) to the State;
and
``(bb) current year
expenditures of the total
amount of grants made to the
State under subsection (a)
(regardless of the fiscal year
in which such funds were
awarded) (other than such
welfare-to-work grants) through
the end of the most recent
calendar quarter.
``(B) Failure to satisfy maintenance of effort
requirement.--Notwithstanding paragraph (3), a State
that fails to satisfy the requirement of section
409(a)(7) with respect to a fiscal year shall not be a
needy State under this subsection for that fiscal
year.''.
(c) Clarification of Reporting Requirements.--Paragraph (6) of
section 403(b) (42 U.S.C. 603(b)), as redesignated by subsection
(b)(2), is amended by striking ``on the status of the Fund'' and
inserting ``on the States that qualified for contingency funds and the
amount of funding awarded under this subsection''.
(d) Elimination of Penalty for Failure To Maintain 100 Percent
Maintenance of Effort.--
(1) In general.--Section 409(a) (42 U.S.C. 609(a)) is
amended--
(A) by striking paragraph (10); and
(B) by redesignating paragraphs (11) through (14)
as paragraphs (10) through (13), respectively.
(2) Conforming amendments.--Section 409 (42 U.S.C. 609) is
amended--
(A) in subsection (a)(7)(B)(i)(III), by striking
``(12)'' and inserting ``(11)'';
(B) in subsection (b)(2), by striking ``(10), (12),
or (13)'' and inserting ``(11), or (12)''; and
(C) in subsection (c)(4), by striking ``(10), (12),
or (13)'' and inserting ``(11), or (12)''.
SEC. 107. USE OF FUNDS.
(a) Treatment of Interstate Immigrants.--Section 404 (42 U.S.C.
604) is amended by striking subsection (c).
(b) Restoration of Authority To Transfer Up to 10 Percent of TANF
Funds to the Social Services Block Grant.--Section 404(d)(2) (42 U.S.C.
604(d)(2)) is amended to read as follows:
``(2) Limitation on amount transferable to title xx
programs.--A State may use not more than 10 percent of the
amount of any grant made to the State under section 403(a) for
a fiscal year to carry out State programs pursuant to title
XX.''.
(c) 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 or
tribe shall include in its report under section 411(a) the
amount so designated.''.
(d) State Option To Establish Undergraduate Postsecondary or
Vocational Educational Program.--
(1) In general.--Section 404 (42 U.S.C. 604) is amended by
adding at the end the following:
``(l) Authority To Establish Undergraduate Postsecondary or
Vocational Educational Program.--
``(1) In general.--Subject to the succeeding paragraphs of
this subsection, a State to which a grant is made under section
403 may use the grant to establish a program under which an
eligible participant (as defined in paragraph (5)) may be
provided support services described in paragraph (7) and,
subject to paragraph (8), may have hours of participation in
such program counted as being engaged in work for purposes of
determining monthly participation rates under section
407(b)(1)(B)(i).
``(2) State plan requirement.--In order to establish a
program under this subsection, a State shall describe (in an
addendum to the State plan submitted under section 402) the
applicable eligibility criteria that is designed to limit
participation in the program to only those individuals--
``(A) whose past earnings indicate that the
individuals cannot qualify for employment that pays
enough to allow them to obtain self-sufficiency (as
determined by the State); and
``(B) for whom enrollment in the program will
prepare the individuals for higher-paying occupations
in demand in the State.
``(3) Limitation on enrollment.--The number of eligible
participants in a program established under this subsection may
not exceed 10 percent of the total number of families receiving
assistance under the State program funded under this part.
``(4) No federal funds for tuition.--A State may not use
Federal funds provided under a grant made under section 403 to
pay tuition for an eligible participant.
``(5) Definition of eligible participant.--In this
subsection, the term `eligible participant' means an individual
who receives assistance under the State program funded under
this part and satisfies the following requirements:
``(i) The individual is enrolled in a
postsecondary 2- or 4-year degree program or in
a vocational educational training program.
``(ii) During the period the individual
participates in the program, the individual
maintains satisfactory academic progress, as
defined by the institution operating the
undergraduate postsecondary or vocational
educational program in which the individual is
enrolled.
``(6) Required time periods for completion of degree or
vocational educational training program.--
``(A) In general.--Subject to subparagraph (B), an
eligible participant participating in a program
established under this subsection shall be required to
complete the requirements of a degree or vocational
educational training program within the normal
timeframe for full-time students seeking the particular
degree or completing the vocational educational
training program.
``(B) Exception.--For good cause, the State may
allow an eligible participant to complete their degree
requirements or vocational educational training program
within a period not to exceed 1\1/2\ times the normal
timeframe established under subparagraph (A) (unless
further modification is required by the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), or
section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794)) and may modify the requirements applicable
to an individual participating in the program. For
purposes of the preceding sentence, good cause includes
the case of an eligible participant with 1 or more
significant barriers to normal participation, as
determined by the State, such as the need to care for a
family member with special needs.
``(7) Support services described.--For purposes of
paragraph (1), the support services described in this paragraph
include any or all of the following during the period the
eligible participant is in the program established under this
subsection:
``(A) Child care.
``(B) Transportation services.
``(C) Payment for books and supplies.
``(D) Other services provided under policies
determined by the State to ensure coordination and lack
of duplication with other programs available to provide
support services.
``(8) Rules for inclusion in monthly work participation
rates.--
``(A) Families counted as participating if they
meet the requirements of subparagraphs (b) or (c).--For
each eligible participant, a State may elect, for
purposes of determining monthly participation rates
under section 407(b)(1)(B)(i), to include such
participant in the determination of such rates in
accordance with subparagraph (B) or (C).
``(B) Full or partial credit for hours of
participation in educational or related activities.--
``(i) In general.--Subject to clause (iv),
an eligible participant who participates in
educational or related activities (as
determined by the State) under a program
established under this subsection shall be
given credit for the number of hours of such
participation to the extent that an adult
recipient or minor child head of household
would be given credit under section 407(c) for
being engaged in the same number of hours of
work activities described in paragraph (1),
(2), (3), (4), (5), (6), (7), (8), or (12) of
section 407(d).
``(ii) Related activities.--For purposes of
clause (i), related activities shall include--
``(I) work activities described in
paragraph (1), (2), (3), (4), (5), (6),
(7), (8), or (12) of section 407(d);
``(II) work study, practicums,
internships, clinical placements,
laboratory or field work, or such other
activities as will enhance the eligible
participant's employability in the
participant's field of study, as
determined by the State; or
``(III) subject to clause (iii),
study time.
``(iii) Limitation on inclusion of study
time.--For purposes of determining hours per
week of participation by an eligible
participant under a program established under
this subsection, a State may not count study
time of less than 1 hour for every hour of
class time or more than 2 hours for every hour
of class time.
``(iv) Total number of hours limited to
being counted as 1 family.--In no event may
hours per week of participation by an eligible
participant under a program established under
this subsection be counted as more than 1
family for purposes of determining monthly
participation rates under section
407(b)(1)(B)(i).
``(C) Full credit for being engaged in direct work
activities for certain hours per week.--
``(i) In general.--A family that includes
an eligible participant who, in addition to
complying with the full-time educational
participation requirements of the degree or
vocational educational training program they
are enrolled in, participates in an activity
described in subclause (I), (II), or (III) of
subparagraph (B)(ii) for not less than the
number of hours required per week under clause
(ii) shall be counted as 1 family.
``(ii) Required hours per week.--For
purposes of clause (i), subject to clause
(iii), the number of hours per week are--
``(I) 6 hours per week during the
first 12-month period that an eligible
participant participates in a program
established under this subsection;
``(II) 8 hours per week during the
second 12-month period of such
participation;
``(II) 10 hours per week during the
third 12-month period of such
participation; and
``(II) 12 hours per week during the
fourth or any other succeeding 12-
month period of such participation.
``(iii) Modification of requirements for
good cause.--A State may modify the number of
hours per week required under clause (ii) for
good cause. For purposes of the preceding
sentence, good cause includes the case of an
eligible participant with 1 or more significant
barriers to normal participation, as determined
by the State, such as the need to care for a
family member with special needs.''.
(2) Conforming amendment.--Section 407(d)(8) (42 U.S.C.
607(d)(8)) is amended by inserting ``other than an individual
participating in a program established under section 404(l)''
after ``individual''.
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 (42 U.S.C. 609), as amended by section
106(d)(2), is amended--
(A) in subsection (a), by striking paragraph (6);
(B) in subsection (b)(2), by striking ``(6),''; and
(C) in subsection (c)(4), by striking ``(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. WORK PARTICIPATION REQUIREMENTS.
(a) Elimination of Separate Work Participation Rate for 2-Parent
Families Beginning With Fiscal Year 2003.--
(1) In general.--Section 407 (42 U.S.C. 607) is amended--
(A) in subsection (a)--
(i) in the heading, by striking
``Participation Rate Requirements'' and all
that follows through ``A State'' and inserting
``Participation Rate Requirements.--A State'';
and
(ii) by striking paragraph (2);
(B) in subsection (b)--
(i) by striking paragraph (2);
(ii) in paragraph (4), by striking
``paragraphs (1)(B) and (2)(B)'' and inserting
``determining monthly participation rates under
paragraph (1)(B)''; and
(iii) in paragraph (5), by striking
``rates'' and inserting ``rate''; and
(C) in subsection (c)--
(i) in paragraph (1)--
(I) by striking ``General rules.--
'' and all that follows through ``For
purposes'' in subparagraph (A) and
inserting ``General rule.--For
purposes''; and
(II) by striking subparagraph (B);
and
(ii) in paragraph (2)(D)--
(I) by striking ``paragraphs
(1)(B)(i) and (2)(B) of subsection
(b)'' and inserting ``subsection
(b)(1)(B)(i)''; and
(II) by striking ``and in 2-parent
families, respectively,''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect as if enacted on October 1, 2002.
(b) Minimum Participation Rates.--Section 407(a) (42 U.S.C.
607(a)), as amended by subsection (a)(1)(A), is amended to read as
follows:
``(a) Participation Rate Requirements.--
``(1) In general.--A State to which a grant is made under
section 403 for a fiscal year shall achieve a minimum
participation rate with respect to all families receiving
assistance under the State program funded under this part that
is equal to not less than--
``(A) 50 percent for fiscal year 2004;
``(B) 55 percent for fiscal year 2005;
``(C) 60 percent for fiscal year 2006;
``(D) 65 percent for fiscal year 2007; and
``(E) 70 percent for fiscal year 2008 and each
succeeding fiscal year.''.
(c) Limitation on Reduction of Participation Rate Through
Application of Credits.--Section 407(a) (42 U.S.C. 607(b)), as amended
by subsection (b), is amended by adding at the end the following:
``(2) Limitation on reduction of participation rate through
application of credits.--Notwithstanding any other provision of
this part, the net effect of any percentage reduction in the
minimum participation rate otherwise required under this
section with respect to families receiving assistance under the
State program funded under this part as a result of the
application of any employment credit, caseload reduction
credit, or other credit against such rate for a fiscal year,
shall not exceed--
``(A) 40 percentage points, in the case of fiscal
year 2004;
``(B) 35 percentage points, in the case of fiscal
year 2005;
``(C) 30 percentage points, in the case of fiscal
year 2006;
``(D) 25 percentage points, in the case of fiscal
year 2007; or
``(E) 20 percentage points, in the case of fiscal
year 2008 or any fiscal year thereafter.''.
(d) Replacement of Caseload Reduction Credit With Employment
Credit.--
(1) Employment credit to reward states in which families
leave welfare for work; additional credit for families with
higher earnings.--
(A) In general.--Section 407(b) (42 U.S.C. 607(b)),
as amended by subsection (a)(1)(B)(i), is amended by
inserting after paragraph (1) the following:
``(2) Employment credit.--
``(A) In general.--Subject to subsection (a)(2),
the Secretary shall, by regulation, reduce the minimum
participation rate otherwise applicable to a State
under this subsection for a fiscal year by the number
of percentage points in the employment credit for the
State for the fiscal year, as determined by the
Secretary--
``(i) using information in the National
Directory of New Hires;
``(ii) with respect to a recipient of
assistance or former recipient of assistance
under the State program funded under this part
who is placed with an employer whose hiring
information is not reported to the National
Directory of New Hires, using quarterly wage
information submitted by the State to the
Secretary not later than such date as the
Secretary shall prescribe in regulations; or
``(iii) with respect to families described
in subclause (II) or (III) of subparagraph
(B)(ii), using such other data as the Secretary
may require in order to determine the
employment credit for a State under this
paragraph.
``(B) Calculation of credit.--
``(i) In general.--The employment credit
for a State for a fiscal year is an amount
equal to the sum of the amounts determined
under clause (ii), divided by the amount
determined under clause (iii).
``(ii) Numerator.--For purposes of clause
(i), the amounts determined under this clause
are the following:
``(I) Twice the quarterly average
unduplicated number of families that
include an adult or minor child head of
household recipient of assistance under
the State program funded under this
part, that ceased to receive such
assistance for at least 2 consecutive
months following the date of the case
closure for the family during the
applicable period (as defined in clause
(v)), that did not receive assistance
under a separate State-funded program
during such 2-month period, and that
were employed during the calendar
quarter immediately succeeding the
quarter in which the assistance under
the State program funded under this
part ceased.
``(II) At the option of the State,
twice the quarterly average number of
families that received a nonrecurring
short-term benefit under the State
program funded under this part during
the applicable period (as so defined),
that were employed during the calendar
quarter immediately succeeding the
quarter in which the nonrecurring
short-term benefit was so received, and
that earned at least $1,000 during the
applicable period (as so defined).
``(III) At the option of the State,
twice the quarterly average number of
families that includes an adult who is
receiving substantial child care or
transportation assistance (as defined
by the Secretary, in consultation with
directors of State programs funded
under this part, which definition shall
specify for each type of assistance a
threshold which is a dollar value or a
length of time over which the
assistance is received, and which takes
account of large one-time transition
payments)) during the applicable period
(as so defined).
``(iii) Denominator.--For purposes of
clause (i), the amount determined under this
clause is the amount equal to the sum of the
following:
``(I) The average monthly number of
families that include an adult or minor
child head of household who received
assistance under the State program
funded under this part during the
applicable period (as defined under
clause (v)).
``(II) If the State elected the
option under clause (ii)(II), twice the
quarterly average number of families
that received a nonrecurring short-term
benefit under the State program funded
under this part during the applicable
period (as so defined).
``(III) If the State elected the
option under clause (ii)(III), twice
the quarterly average number of
families that includes an adult who is
receiving substantial child care or
transportation assistance during the
applicable period (as so defined).
``(iv) Special rule for former recipients
with higher earnings.--In calculating the
employment credit for a State for a fiscal
year, in the case of a family that includes an
adult or a minor child head of household that
is to be included in the amount determined
under clause (ii)(I) and that, with respect to
the quarter in which the family's earnings was
examined during the applicable period, earned
at least 33 percent of the average quarterly
earnings in the State (determined on the basis
of State unemployment data), the family shall
be considered to be 1.5 families.
``(v) Definition of applicable period.--For
purposes of this paragraph, the term
`applicable period' means, with respect to a
fiscal year, the most recent 4 quarters for
which data are available to the Secretary
providing information on the work status of--
``(I) individuals in the quarter
after the individuals ceased receiving
assistance under the State program
funded under this part;
``(II) at State option, individuals
in the quarter after the individuals
received a short-term, nonrecurring
benefit; and
``(III) at State option,
individuals in the quarter after the
individuals ceased receiving
substantial child care or
transportation assistance.
``(C) Notification to state.--Not later than August
30 of each fiscal year, the Secretary shall--
``(i) determine, on the basis of the
applicable period, the amount of the employment
credit that will be used in determining the
minimum participation rate for a State under
subsection (a) for the immediately succeeding
fiscal year; and
``(ii) notify each State conducting a State
program funded under this part of the amount of
the employment credit for such program for the
succeeding fiscal year.''.
(B) Authority of secretary to use information in
national directory of new hires.--Section 453(i) (42
U.S.C. 653(i)) is amended by adding at the end the
following:
``(5) Calculation of employment credit for purposes of
determining state work participation rates under tanf.--The
Secretary may use the information in the National Directory of
New Hires for purposes of calculating State employment credits
pursuant to section 407(b)(2).''.
(2) Elimination of caseload reduction credit.--Section
407(b) (42 U.S.C. 607(b)) is amended by striking paragraph (3)
and redesignating paragraphs (4) and (5) as paragraphs (3) and
(4), respectively.
(3) Effective dates.--
(A) In general.--Except as provided in
subparagraphs (B) and (C), the amendments made by this
subsection shall take effect on October 1, 2005.
(B) State option to phase-in replacement of
caseload reduction credit with employment credit and
delay applicability of other provisions.--A State may
elect to have the amendments made by this subsection
not apply to the State program funded under part A of
title IV of the Social Security Act until October 1,
2006, and if the State makes the election, then, in
determining the participation rate of the State for
purposes of section 407 of the Social Security Act for
fiscal year 2006, the State shall be credited with \1/
2\ of the reduction in the rate that would otherwise
result from applying section 407(b)(2) of the Social
Security Act (as added by paragraph (1)(A)) to the
State for fiscal year 2006 and \1/2\ of the reduction
in the rate that would otherwise result from applying
section 407(b)(3) of the Social Security Act (as in
effect with respect to fiscal year 2003) to the State
for fiscal year 2006.
(C) Authority to use information in the national
directory of new hires.--The amendment made by
paragraph (1)(B) shall take effect on October 1, 2003.
(e) State Options for Participation Requirement Exemptions.--
Section 407(b)(4) (42 U.S.C. 607(b)(4)), as amended by subsection
(a)(1)(B)(iii) and redesignated by subsection (d)(2), is amended to
read as follows:
``(4) State options for participation requirement
exemptions.--At the option of a State, a State may, on a case-
by-case basis--
``(A) not include a family in the determination of
the monthly participation rate for the State in the
first month for which the family receives assistance
from the State program funded under this part on the
basis of the most recent application for such
assistance; or
``(B) not require a family in which the youngest
child has not attained 12 months of age to engage in
work, and may disregard that family in determining the
minimum participation rate under subsection (a) for the
State for not more than 12 months.''.
(f) Determination of Countable Hours Engaged in Work.--
(1) In general.--Section 407(c) (42 U.S.C. 607(c)) is
amended to read as follows:
``(c) Determination of Countable Hours Engaged in Work.--
``(1) Single parent or relative with a child over age 6.--
``(A) Minimum average number of hours per week.--
Subject to the succeeding paragraphs of this
subsection, a family in which an adult recipient or
minor child head of household in the family is
participating in work activities described in
subsection (d) shall be treated as engaged in work for
purposes of determining monthly participation rates
under subsection (b)(1)(B)(i) as follows:
``(i) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 20, but
less than 24, hours per week in a month, as
0.675 of a family.
``(ii) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 24, but
less than 30, hours per week in a month, as
0.75 of a family.
``(iii) In the case of a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 30, but
less than 34, hours per week in a month, as
0.875 of a family.
``(iv) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 34, but
less than 35, hours per week in a month, as 1
family.
``(v) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 35, but
less than 38, hours per week in a month, as
1.05 families.
``(vi) In the case of a family in which the
total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 38 hours
per week in a month, as 1.08 families.
``(B) Direct work activities required for an
average of 24 hours per week.--Except as provided in
subparagraph (C)(i), a State may not count any hours of
participation in work activities specified in paragraph
(9), (10), or (11) of subsection (d) of any adult
recipient or minor child head of household in a family
before the total number of hours of participation by
any adult recipient or minor child head of household in
the family in work activities described in paragraph
(1), (2), (3), (4), (5), (6), (7), (8), or (12) of
subsection (d) for the family for the month averages at
least 24 hours per week.
``(C) State flexibility to count participation in
certain activities.--
``(i) Qualified activities for 3-months in
any 24-month period.--
``(I) 24-hours per week required.--
Subject to subclauses (III) and (IV),
for purposes of determining hours under
subparagraph (A), a State may count the
total number of hours any adult
recipient or minor child head of
household in a family engages in
qualified activities described in
subclause (II) as a work activity
described in subsection (d), without
regard to whether the recipient has
satisfied the requirement of
subparagraph (B), but only if--
``(aa) the total number of
hours of participation in such
qualified activities for the
family for the month average at
least 24 hours per week; and
``(bb) engaging in such
qualified activities is a
requirement of the family self-
sufficiency plan.
``(II) Qualified activities
described.--For purposes of subclause
(I), qualified activities described in
this subclause are any of the
following:
``(aa) Postsecondary
education.
``(bb) Adult literacy
programs or activities.
``(cc) Substance abuse
counseling or treatment.
``(dd) Programs or
activities designed to remove
barriers to work, as defined by
the State.
``(ee) Work activities
authorized under any waiver for
any State that was continued
under section 415 before the
date of enactment of the
Personal Responsibility and
Individual Development for
Everyone Act.
``(III) Limitation.--Except as
provided in clause (ii), subclause (I)
shall not apply to a family for more
than 3 months in any period of 24
consecutive months.
``(IV) Certain activities.--The
Secretary may allow a State to count
the total hours of participation in
qualified activities described in
subclause (II) for an adult recipient
or minor child head of household
without regard to the minimum 24 hour
average per week of participation
requirement under subclause (I) if the
State has demonstrated conclusively
that such activity is part of a
substantial and supervised program
whose effectiveness in moving families
to self-sufficiency is superior to any
alternative activity and the
effectiveness of the program in moving
families to self-sufficiency would be
substantially impaired if participating
individuals participated in additional,
concurrent qualified activities that
enabled the individuals to achieve an
average of at least 24 hours per week
of participation.
``(ii) Additional 3-month period permitted
for certain activities.--
``(I) Self-sufficiency plan
requirement combined with minimum
number of hours.--A State may extend
the 3-month period under clause (i) for
an additional 3 months in the same
period of 24 consecutive months in the
case of an adult recipient or minor
child head of household who is
receiving qualified rehabilitative
services described in subclause (II)
if--
``(aa) the total number of
hours that the adult recipient
or minor child head of
household engages in such
qualified rehabilitative
services and, subject to
subclause (III), a work
activity described in paragraph
(1), (2), (3), (4), (5), (6),
(7), (8), or (12) of subsection
(d) for the month average at
least 24 hours per week; and
``(bb) engaging in such
qualified rehabilitative
services is a requirement of
the family self-sufficiency
plan.
``(II) Qualified rehabilitative
services described.--For purposes of
subclause (I), qualified rehabilitative
services described in this subclause
are any of the following:
``(aa) Adult literacy
programs or activities.
``(bb) Participation in a
program designed to increase
proficiency in the English
language.
``(cc) In the case of an
adult recipient or minor child
head of household who has been
certified by a qualified
medical, mental health, or
social services professional
(as defined by the State) as
having a physical or mental
disability, substance abuse
problem, or other problem that
requires a rehabilitative
service, substance abuse
treatment, or mental health
treatment, the service or
treatment determined necessary
by the professional.
``(III) Nonapplication of
limitations on job search and
vocational educational training.--An
adult recipient or minor child head of
household who is receiving qualified
rehabilitative services described in
subclause (II) may engage in a work
activity described in paragraph (6) or
(8) of subsection (d) for purposes of
satisfying the minimum 24 hour average
per week of participation requirement
under subclause (I)(aa) without regard
to any limit that otherwise applies to
the activity (including the 30 percent
limitation on participation in
vocational educational training under
paragraph (6)(C)).
``(iii) Hours in excess of an average of 24
work activity hours per week.--If the total
number of hours that any adult recipient or
minor child head of household in a family has
participated in a work activity described in
paragraph (1), (2), (3), (4), (5), (6), (7),
(8), or (12) of subsection (d) averages at
least 24 hours per week in a month, a State,
for purposes of determining hours under
subparagraph (A), may count any hours an adult
recipient or minor child head of household in
the family engages in--
``(I) any work activity described
in subsection (d), without regard to
any limit that otherwise applies to the
activity (including the 30 percent
limitation on participation in
vocational educational training under
paragraph (6)(C)); and
``(II) any qualified activity
described in clause (i)(II), as a work
activity described in subsection (d).
``(2) Single parent or relative with a child under age 6.--
``(A) In general.--A family in which an adult
recipient or minor child head of household in the
family is the only parent or caretaker relative in the
family of a child who has not attained 6 years of age
and who is participating in work activities described
in subsection (d) shall be treated as engaged in work
for purposes of determining monthly participation rates
under subsection (b)(1)(B)(i) as follows:
``(i) In the case of such a family in which
the total number of hours in which the adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 20, but
less than 24, hours per week in a month, as
0.675 of a family.
``(ii) In the case of such a family in
which the total number of hours in which the
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
24, but less than 35, hours per week in a
month, as 1 family.
``(iii) In the case of such a family in
which the total number of hours in which the
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
35, but less than 38, hours per week in a
month, as 1.05 families.
``(iv) In the case of such a family in
which the total number of hours in which the
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
38 hours per week in a month, as 1.08 families.
``(B) Application of rules regarding direct work
activities and state flexibility to count participation
in certain activities.--Subparagraphs (B) and (C) of
paragraph (1) apply to a family described in
subparagraph (A) in the same manner as such
subparagraphs apply to a family described in paragraph
(1)(A).
``(3) 2-parent families.--
``(A) In general.--Subject to paragraph (6)(A), a
2-parent family in which an adult recipient or minor
child head of household in the family is participating
in work activities described in subsection (d) shall be
treated as engaged in work for purposes of determining
monthly participation rates under subsection
(b)(1)(B)(i) as follows:
``(i) In the case of such a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 26, but
less than 30, hours per week in a month, as
0.675 of a family.
``(ii) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
30, but less than 35, hours per week in a
month, as 0.75 of a family.
``(iii) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
35, but less than 39, hours per week in a
month, as 0.875 of a family.
``(iv) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
39, but less than 40, hours per week in a
month, as 1 family.
``(v) In the case of such a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 40, but
less than 43, hours per week in a month, as
1.05 families.
``(vi) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
43 hours per week in a month, as 1.08 families.
``(B) Application of rules regarding direct work
activities and state flexibility to count participation
in certain activities.--Subparagraphs (B) and (C) of
paragraph (1) apply to a 2-parent family described in
subparagraph (A) in the same manner as such
subparagraphs apply to a family described in paragraph
(1)(A), except that subparagraph (B) of paragraph (1)
shall be applied to a such a 2-parent family by
substituting `34' for `24' each place it appears.
``(4) 2-parent families that receive federally funded child
care.--
``(A) In general.--Subject to paragraph (6)(A), if
a 2-parent family receives federally funded child care
assistance, an adult recipient or minor child head of
household in the family participating in work
activities described in subsection (d) shall be treated
as engaged in work for purposes of determining monthly
participation rates under subsection (b)(1)(B)(i) as
follows:
``(i) In the case of such a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 40, but
less than 45, hours per week in a month, as
0.675 of a family.
``(ii) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
45, but less than 51, hours per week in a
month, as 0.75 of a family.
``(iii) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
51, but less than 55, hours per week in a
month, as 0.875 of a family.
``(iv) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
55, but less than 56, hours per week in a
month, as 1 family.
``(v) In the case of such a family in which
the total number of hours in which any adult
recipient or minor child head of household in
the family is participating in such work
activities for an average of at least 56, but
less than 59, hours per week in a month, as
1.05 families.
``(vi) In the case of such a family in
which the total number of hours in which any
adult recipient or minor child head of
household in the family is participating in
such work activities for an average of at least
59 hours per week in a month, as 1.08 families.
``(B) Application of rules regarding direct work
activities and state flexibility to count participation
in certain activities.--Subparagraphs (B) and (C) of
paragraph (1) apply to a 2-parent family described in
subparagraph (A) in the same manner as such
subparagraphs apply to a family described in paragraph
(1)(A), except that subparagraph (B) of paragraph (1)
shall be applied to a such a 2-parent family by
substituting `50' for `24' each place it appears.
``(5) Calculation of hours per week.--The number of hours
per week that a family is engaged in work is the quotient of--
``(A) the total number of hours per month that the
family is engaged in work; divided by
``(B) 4.
``(6) Special rules.--
``(A) Family with a disabled parent not treated as
a 2-parent family.--A family that includes a disabled
parent shall not be considered a 2-parent family for
purposes of paragraph (3) or (4).
``(B) Number of weeks for which job search counts
as work.--An individual shall not be considered to be
engaged in work for a month by virtue of participation
in an activity described in subsection (d)(6) of a
State program funded under this part, after the
individual has participated in such an activity for 6
weeks (or, if the unemployment rate of the State is at
least 50 percent greater than the unemployment rate of
the United States, or the State meets the criteria of
subclause (I), (II), or (III) of section
403(b)(3)(A)(iii) or satisfies the applicable duration
requirement of section 403(b)(3)(B)), 12 weeks).
``(C) Single teen head of household or married teen
who maintains satisfactory school attendance deemed to
count as 1 family.--For purposes of determining hours
under the preceding paragraphs of this subsection, with
respect to a month, a State shall count a recipient who
is married or a head of household and who has not
attained 20 years of age as 1 family if the recipient--
``(i) maintains satisfactory attendance at
secondary school or the equivalent during the
month; or
``(ii) participates in education directly
related to employment for an average of at
least 20 hours per week during the month.
``(D) Limitation on number of persons who may be
treated as engaged in work by reason of participation
in educational activities.--Except as provided in
paragraph (1)(C)(ii)(I), for purposes of subsection
(b)(1)(B)(i), not more than 30 percent of the number of
individuals in all families in a State who are treated
as engaged in work for a month may consist of
individuals who are--
``(i) determined (without regard to
individuals participating in a program
established under section 404(l)) to be engaged
in work for the month by reason of
participation in vocational educational
training (but only with respect to such
training that does not exceed 12 months with
respect to any individual); or
``(ii) deemed to be engaged in work for the
month by reason of subparagraph (C) of this
paragraph.
``(E) State option to deem single parent caring for
a child or adult dependent for care with a physical or
mental impairment to be meeting all or part of a
family's work participation requirements for a month.--
``(i) In general.--A State may count the
number of hours per week that an adult
recipient or minor child head of household who
is the only parent or caretaker relative for a
child or adult dependent for care with a
physical or mental impairment engages in
providing substantial ongoing care for such
child or adult dependent for care if the State
determines that--
``(I) the child or adult dependent
for care has been verified through a
medically acceptable clinical or
diagnostic technique as having a
significant physical or mental
impairment or combination of
impairments that require substantial
ongoing care;
``(II) the adult recipient or minor
child head of household providing such
care is the most appropriate means, as
determined by the State, by which such
care can be provided to the child or
adult dependent for care;
``(III) for each month in which
this subparagraph applies to the adult
recipient or minor child head of
household, the adult recipient or minor
child head of household is in
compliance with the requirements of the
family's self-sufficiency plan; and
``(IV) the recipient is unable to
participate fully in work activities,
after consideration of whether there
are supports accessible and available
to the family for the care of the child
or adult dependent for care.
``(ii) Total number of hours limited to
being counted as 1 family.--In no event may a
family that includes a recipient to which
clause (i) applies be counted as more than 1
family for purposes of determining monthly
participation rates under subsection
(b)(1)(B)(i).
``(iii) State requirements.--In the case of
a recipient to which clause (i) applies, the
State shall--
``(I) conduct regular, periodic
evaluations of the family of the adult
recipient or minor child head of
household; and
``(II) include as part of the
family's self-sufficiency plan, regular
updates on what special needs of the
child or the adult dependent for care,
including substantial ongoing care,
could be accommodated either by
individuals other than the adult
recipient or minor child head of
household outside of the home.
``(iv) Rule of construction.--Nothing in
this subparagraph shall be construed as
prohibiting a State from including in a
recipient's self-sufficiency plan a requirement
to engage in work activities described in
subsection (d).
``(F) Optional modification of work requirements
for recipients residing in areas of indian country or
an alaskan native village with high joblessness.--If a
State has included in the State plan a description of
the State's policies in areas of Indian country or an
Alaskan Native village described in section
408(a)(7)(D), the State may define the activities that
the State will treat as being work activities described
in subsection (d) that a recipient who resides in such
an area and who is participating in such activities in
accordance with a self-sufficiency plan under section
408(b) may engage in for purposes of satisfying work
requirements under the State program and for purposes
of determining monthly participation rates under
subsection (b)(1)(B)(i).''.
(2) Conforming amendment relating to authority to deem
single parent of a child or adult dependent for care with a
physical or mental impairment deemed to be meeting all or part
of a family's work participation requirements for a month.--
Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as amended by
section 101(a)(1)(B), is amended by adding at the end the
following:
``(vi) The document shall set forth the
criteria for applying section 407(c)(6)(E) to
an adult recipient or minor child head of
household who is the only parent or caretaker
relative for a child or adult dependent for
care.''.
SEC. 110. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUFFICIENCY PLAN
REQUIREMENTS; OTHER PROHIBITIONS AND REQUIREMENTS.
(a) Universal Engagement and Family Self-Sufficiency Plan
Requirements.--
(1) 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).''.
(2) Establishment of family self-sufficiency plans.--
(A) 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) make an initial screening and assessment, in
the manner deemed appropriate by the State, of the
skills, prior work experience, education obtained, work
readiness, barriers to work, and employability of each
adult or minor child head of household recipient of
assistance in the family who--
``(i) has attained age 18; or
``(ii) has not completed high school or
obtained a certificate of high school
equivalency and is not attending secondary
school;
``(B) assess, in the manner deemed appropriate by
the State, the work support and other assistance and
family support services for which each family receiving
assistance is eligible; and
``(C) assess, in the manner deemed appropriate by
the State, the well-being of the children in the
family, and, where appropriate, activities or resources
to improve the well-being of the children.
``(2) Contents of plans.--The State shall, in the manner
deemed appropriate by the State--
``(A) establish for each family that includes an
individual described in paragraph (1)(A), in
consultation as the State deems appropriate with the
individual, a self-sufficiency plan that--
``(i) specifies activities described in the
State plan submitted pursuant to section 402,
including work activities described in
paragraph (1), (2), (3), (4), (5), (6), (7),
(8), or (12) of section 407(d), as appropriate;
``(ii) is designed to assist the family in
achieving their maximum degree of self-
sufficiency, and
``(iii) provides for the ongoing
participation of the individual in the
activities specified in the plan;
``(B) requires, at a minimum, each such individual
to participate in activities in accordance with the
self-sufficiency plan;
``(C) sets forth the appropriate supportive
services the State intends to provide for the family;
``(D) establishes for the family a plan that
addresses the issue of child well-being and, when
appropriate, adolescent well-being, and that may
include services such as domestic violence counseling,
mental health referrals, and parenting courses; and
``(E) includes a section designed to assist the
family by informing the family, in such manner as
deemed appropriate by the State, of the work support
and other assistance for which the family may be
eligible including (but not limited to)--
``(i) the food stamp program established
under the Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.);
``(ii) the medicaid program funded under
title XIX;
``(iii) the State children's health
insurance program funded under title XXI;
``(iv) Federal or State funded child care,
including child care funded under the Child
Care Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.) and funds made available
under this title or title XX;
``(v) the earned income tax credit under
section 32 of the Internal Revenue Code of
1986;
``(vi) the low-income home energy
assistance program established under the Low-
Income Home Energy Assistance Act of 1981 (42
U.S.C. 8621 et seq.);
``(vii) the special supplemental nutrition
program for women, infants, and children
established under section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786);
``(viii) programs conducted under the
Workforce Investment Act of 1998 (29 U.S.C.
2801 et seq.); and
``(ix) low-income housing assistance
programs.
``(3) Review.--
``(A) Regular review.--A State to which a grant is
made under section 403 shall--
``(i) monitor the participation of each
adult recipient or minor child head of
household in the activities specified in the
self-sufficiency plan, and regularly review the
progress of the family toward self-sufficiency;
and
``(ii) upon such a review, revise the plan
and activities required under the plan as the
State deems appropriate in consultation with
the family.
``(B) Prior to the imposition of a sanction.--Prior
to imposing a sanction against an adult recipient,
minor child head of household, or a family for failure
to comply with a requirement of the self-sufficiency
plan or the State program funded under this part, the
State shall, to the extent determined appropriate by
the State--
``(i) review the self-sufficiency plan; and
``(ii) make a good faith effort (as defined
by the State) to consult with the family.
``(4) 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.
``(5) Application to partially-sanctioned families.--The
requirements of this subsection shall apply in the case of a
family that includes an adult or minor child head of household
recipient of assistance who is subject to a partial sanction.
``(6) Timing.--The State shall initiate screening and
assessment and the establishment of a family self-sufficiency
plan in accordance with the requirements of this subsection--
``(A) in the case of a family that, as of the date
of enactment of the Personal Responsibility and
Individual Development for Everyone Act, is not
receiving assistance from the State program funded
under this part, not later than the later of--
``(i) 1 year after such date of enactment;
or
``(ii) 60 days after the family first
receives assistance on the basis of the most
recent application for assistance; and
``(B) in the case of a family that, as of such
date, is receiving assistance under the State program
funded under this part, not later than 1 year after
such date of enactment.
``(7) Rule of interpretation.--Nothing in this subsection
shall preclude a State from--
``(A) requiring participation in work and any other
activities the State deems appropriate for helping
families achieve self-sufficiency and improving child
well-being; or
``(B) using job search or other appropriate job
readiness or work activities to assess the
employability of individuals and to determine
appropriate future engagement activities.''.
(B) Penalty for failure to comply with family self-
sufficiency plan requirements.--
(i) In general.--Section 409(a)(3) (42
U.S.C. 609(a)(3)) is amended--
(I) in the paragraph heading, by
inserting ``or comply with family self-
sufficiency plan requirements'' after
``rates'';
(II) in subparagraph (A), by
inserting ``or 408(b)'' after
``407(a)''; and
(III) by striking subparagraph (C)
and inserting the following:
``(C) Penalty based on severity of failure.--
``(i) Failure to satisfy minimum
participation rate.--If, with respect to fiscal
year 2005 or any fiscal year thereafter, the
Secretary finds that a State has failed or is
failing to substantially comply with the
requirements of section 407(a) for that fiscal
year, the Secretary shall impose reductions
under subparagraph (A) with respect to the
immediately succeeding fiscal year based on the
degree of substantial noncompliance. In
assessing the degree of substantial
noncompliance under section 407(a) for a fiscal
year, the Secretary shall take into account
factors such as--
``(I) the degree to which the State
missed the minimum participation rate
for that fiscal year;
``(II) the change in the number of
individuals who are engaged in work in
the State since the prior fiscal year;
and
``(III) the number of consecutive
fiscal years in which the State failed
to reach the minimum participation
rate.
``(ii) Failure to comply with self-
sufficiency plan requirements.--If, with
respect to fiscal year 2005 or any fiscal year
thereafter, the Secretary finds that a State
has failed or is failing to substantially
comply with the requirements of section 408(b)
for that fiscal year, the Secretary shall
impose reductions under subparagraph (A) with
respect to the immediately succeeding fiscal
year based on the degree of substantial
noncompliance. In assessing the degree of
substantial noncompliance under section 408(b),
the Secretary shall take into account factors
such as--
``(I) the number or percentage of
families for which a self-sufficiency
plan is not established in a timely
fashion for that fiscal year;
``(II) the duration of the delays
in establishing a self-sufficiency plan
during that fiscal year;
``(III) whether the failures are
isolated and nonrecurring; and
``(IV) the existence of systems
designed to ensure that self-
sufficiency plans are established for
all families in a timely fashion and
that families' progress under such
plans is monitored.
``(iii) Authority to reduce the penalty.--
The Secretary may reduce the penalty that would
otherwise apply under this paragraph if the
substantial noncompliance is due to
circumstances that caused the State to meet the
criteria of subclause (I), (II), or (III) of
section 403(b)(3)(A)(iii) or to satisfy the
applicable duration requirement of section
403(b)(3)(B) during the fiscal year, or if the
noncompliance is due to extraordinary
circumstances such as a natural disaster or
regional recession. The Secretary shall provide
a written report to Congress to justify any
waiver or penalty reduction due to such
extraordinary circumstances.''.
(ii) Effective date.--The amendments made
by this subparagraph take effect on October 1,
2004.
(3) GAO evaluation and report.--Not later than September
30, 2005, the Comptroller General of the United States shall
submit a report to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate
evaluating the implementation of the universal engagement
provisions under the temporary assistance to needy families
program under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), as added by the amendments made by this
subsection.
(4) Rules of Construction.--Nothing in this subsection or
the amendments made by this subsection shall be construed--
(A) as establishing a private right or cause of
action against a State for failure to comply with the
requirements imposed under this subsection or the
amendments made by this subsection; or
(B) as limiting claims that may be available under
other Federal or State laws.
(b) Transitional Compliance for Teen Parents.--
(1) In general.--Section 408(a)(5) (42 U.S.C. 608(a)(5)) is
amended--
(A) in subparagraph (A)(i), by striking
``subparagraph (B)'' and inserting ``subparagraphs (B)
and (C)''; and
(B) by adding at the end the following:
``(C) Authority to provide temporary assistance.--A
State may use any part of a grant made under section
403 to provide assistance to an individual described in
clause (ii) of subparagraph (A) who would otherwise be
prohibited from receiving such assistance under clause
(i) of that subparagraph, subparagraph (B), or section
408(a)(4) for not more than a single 60-day period in
order to assist the individual in meeting the
requirement of clause (i) of subparagraph (A),
subparagraph (B), or section 408(a)(4) for receipt of
such assistance.''.
(2) Inclusion of transitional living youth projects as a
form of adult-supervised setting.--Clause (i) of section
408(a)(5)(A) (42 U.S.C. 608(a)(5)(A)(i)), as amended by
paragraph (1), is amended--
(A) by striking ``do not reside in a place of'' and
inserting ``do not reside in a--
``(I) place of'';
(B) by striking the period and inserting ``; or'';
and
(C) by adding at the end the following:
``(II) transitional living youth
project funded under a grant made under
section 321 of the Runaway and Homeless
Youth Act (42 U.S.C. 5714-1).''.
SEC. 111. PENALTIES.
Section 409(a)(7) (42 U.S.C. 609(a)(7)), as amended by section 3(g)
of the Welfare Reform Extension Act of 2003 (Public Law 108-040, 117
Stat. 837) is amended--
(1) in subparagraph (A) by striking ``fiscal year 1998,
1999, 2000, 2001, 2002, 2003, or 2004'' and inserting ``fiscal
year 2004, 2005, 2006, 2007, 2008, or 2009''; and
(2) in subparagraph (B)(ii)--
(A) by inserting ``preceding'' before ``fiscal
year''; and
(B) by striking ``for fiscal years 1997 through
2003,''.
SEC. 112. 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 the matter preceding clause (i), by inserting ``and
on families receiving assistance under State programs funded
with other qualified State expenditures (as defined in section
409(a)(7)(B)(i))'' before the colon;
(2) in clause (vii), by inserting ``and minor parent''
after ``of each adult'';
(3) in clause (viii), by striking ``and educational
level'';
(4) in clause (ix), by striking ``, and if the latter 2,
the amount received'';
(5) 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'';
(6) in clause (xi), by striking subclauses (I) through
(VII) 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.'';
(7) in clause (xii), by inserting ``and progress toward
universal engagement'' after ``participation rates'';
(8) in clause (xiii), by striking ``type and'' before
``amount of assistance'';
(9) in clause (xvi), by striking subclause (II) and
redesignating subclauses (III) through (V) as subclauses (II)
through (IV), respectively; and
(10) 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 each calendar month that begins 1 year or more after the
date of enactment of this subsection, each eligible State shall submit
to the Secretary a 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 and under other State programs funded
with qualified State expenditures (as defined in section
409(a)(7)(B)(i)).
``(d) Annual Report on Performance Improvement.--Beginning with
fiscal year 2005, 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 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)
(42 U.S.C. 611(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 not
later than 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.
SEC. 113. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.
(a) Funding for Tribal TANF programs.--
(1) Reauthorization of tribal family assistance grants.--
Section 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)), as amended by
section 3(h) of the Welfare Reform Extension Act of 2003, is
amended by striking ``1997, 1998, 1999, 2000, 2001, 2002, and
2003'' and inserting ``2004 through 2008''.
(2) Grants for indian tribes that received jobs funds.--
Section 412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)), as so amended,
is amended by striking ``1997, 1998, 1999, 2000, 2001, 2002,
and 2003'' and inserting ``2004 through 2008''.
(b) Tribal TANF Improvement Fund.--Section 412(a) (42 U.S.C.
612(a)) is amended by adding at the end the following:
``(4) Tribal tanf improvement fund.--
``(A) Establishment.--The Secretary shall establish
a fund for purposes of carrying out any of the
following activities:
``(i) Providing technical assistance to
Indian tribes considering applying to carry
out, or that are carrying out, a tribal family
assistance plan under this section in order to
help such tribes establish and operate strong
and effective tribal family assistance plans
under this section that will allow families
receiving assistance under such plans achieve
the highest measure of self-sufficiency.
``(ii) Awarding competitive grants directly
to Indian tribes carrying out a tribal family
assistance plan under this section for purposes
of conducting programs and activities that
would substantially improve the operation and
effectiveness of such plans and the ability of
such tribes to achieve the purposes of the
program under this part as described in section
401(a).
``(iii) Awarding competitive grants
directly to Indian tribes carrying out a tribal
family assistance plan under this section to
support tribal economic development activities
that would significantly assist families
receiving assistance under the State program
funded under this part or a tribal family
assistance plan obtain employment and achieve
self-sufficiency.
``(iv) Conducting, directly or through
grants, contracts, or interagency agreements,
research and development to improve knowledge
about tribal family assistance programs
conducted under this section and challenges
faced by such programs in order to improve the
effectiveness of such programs.
``(B) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry
out this paragraph, $100,000,000 for each of fiscal
years 2004 through 2008.''.
SEC. 114. 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 101(d),
is further amended by adding at the end the following:
``(l) Funding for Research, Demonstrations, and Technical
Assistance.--
``(1) Appropriation.--
``(A) In general.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
are appropriated $100,000,000 for each of fiscal years
2004 through 2008, which shall remain available to the
Secretary until expended.
``(B) Use of funds.--
``(i) In general.--Funds appropriated under
subparagraph (A) shall be used for the purpose
of--
``(I) conducting or supporting
research and demonstration projects by
public or private entities; or
``(II) providing technical
assistance in connection with a purpose
of the program funded under this part,
as described in section 401(a), to
States, Indian tribal organizations,
sub-State entities, and such other
entities as the Secretary may specify.
``(ii) Requirement.--Not less than 80
percent of the funds appropriated under
subparagraph (A) for a fiscal year shall be
expended for the purpose of conducting or
supporting research and demonstration projects,
or for providing technical assistance, in
connection with activities described in section
403(a)(2)(B). Funds appropriated under
subparagraph (A) and expended in accordance
with this clause shall be in addition to any
other funds made available under this part for
activities described in section 403(a)(2)(B).
``(2) Secretary's authority.--The Secretary may conduct
activities authorized by this subsection directly or through
grants, contracts, or interagency agreements with public or
private entities.
``(3) Requirement for use of funds.--The Secretary shall
not pay any funds appropriated under paragraph (1)(A) to an
entity for the purpose of conducting or supporting research and
demonstration projects involving activities described in
section 403(a)(2)(B) unless the entity complies with the
requirements of section 403(a)(2)(E).''.
(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 ``2004 through 2008''.
(c) Program Coordination Demonstration Projects.--
(1) Purpose.--The purpose of this subsection is to
establish a program of demonstration projects in a State or
portion of a State to coordinate assistance provided under
qualified 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.
(2) Definitions.--In this subsection:
(A) Qualified program.--The term ``qualified
program'' means--
(i) a program under part A of title IV of
the Social Security Act (42 U.S.C. 601 et
seq.);
(ii) the program under title XX of the
Social Security Act (42 U.S.C. 1397 et seq.);
and
(iii) child care assistance funded under
section 418 of the Social Security Act (42
U.S.C. 618).
(B) Secretary.--The term ``Secretary'' means the
Secretary of Health and Human Services.
(3) 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 subsection 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
subsection) shall jointly) submit to the Secretary an
application that contains the following:
(A) 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.
(B) Population served.--A statement identifying the
population to be served by the project and specifying
the eligibility criteria to be used.
(C) Description and justification.--A detailed
description of the project, including--
(i) 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
(ii) a description of the performance
objectives for the project, including any
proposed modifications to the performance
measures and reporting requirements used in the
programs.
(D) 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.
(E) Cost neutrality.--Such information and
assurances as necessary to establish to the
satisfaction of the 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 paragraph
(4)(E).
(F) Evaluation and reports.--An assurance that the
applicant will--
(i) obtain an evaluation by an independent
contractor of the effectiveness of the project
using an evaluation design that, to the maximum
extent feasible, includes random assignment of
clients (or entities serving such clients) to
service delivery and control groups; and
(ii) make interim and final reports to the
Secretary, at such times and in such manner as
the Secretary may require.
(G) Other information and assurances.--Such other
information and assurances as the Secretary may
require.
(4) Approval of applications.--
(A) In general.--The 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 subparagraph
(B), waive any requirement applicable to the program,
to the extent consistent with this subsection and
necessary and appropriate for the conduct of the
demonstration project proposed in the application, if
the Secretary determines that the project--
(i) has a reasonable likelihood of
achieving the objectives of the programs to be
included in the project;
(ii) may reasonably be expected to meet the
applicable cost neutrality requirements of
subparagraph (E), as determined by the Director
of the Office of Management and Budget;
(iii) includes the coordination of 2 or
more qualified programs; and
(iv) provides for an independent evaluation
that includes random assignment to the maximum
extent feasible, as described in paragraph
(3)(F), and which the Secretary determines to
be appropriate for assessing the effectiveness
of the project.
(B) Provisions excluded from waiver authority.--A
waiver shall not be granted under subparagraph (A)--
(i) 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;
(ii) in the case of child care assistance
funded under section 418 of the Social Security
Act (42 U.S.C. 618), with respect to the
requirement under the first sentence of
subsection (b)(1) of that section that funds
received by a State under that section shall
only be used to provide child care assistance;
(iii) 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;
(iv) if the waiver would waive any funding
restriction or limitation provided in an
appropriations Act, or would have the effect of
transferring appropriated funds from 1
appropriations account to another; or
(v) except as otherwise provided by
statute, if the waiver would waive any funding
restriction applicable to a program authorized
under an Act which is not an appropriations Act
(but not including program requirements such as
application procedures, performance standards,
reporting requirements, or eligibility
standards), or would have the effect of
transferring funds from a program for which
there is direct spending (as defined in section
250(c)(8) of the Balanced Budget and Emergency
Deficit Control Act of 1985) to another
program.
(C) 10 state limitation.--The Director of the
Office of Management and Budget shall establish a
procedure for ensuring that not more than 10 States
(including any portion of a State) conduct a
demonstration project under this subsection.
(D) Agreement of secretary required.--
(i) In general.--An applicant may not
conduct a demonstration project under this
subsection unless the Secretary, with respect
to each qualified program proposed to be
included in the project, has approved the
application to conduct the project.
(ii) Agreement with respect to funding and
implementation.--Before approving an
application to conduct a demonstration project
under this subsection, the Secretary shall have
in place an agreement with the applicant with
respect to the payment of funds and
responsibilities required of the Secretary with
respect to the project.
(E) Cost-neutrality requirement.--
(i) General rule.--Notwithstanding any
other provision of law (except as provided in
clause (ii)), 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 subsection 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.
(ii) Special rule.--If an applicant submits
to the Director of the Office of Management and
Budget a request to apply the rules of this
clause 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.
(F) 90-day approval deadline.--
(i) In general.--If the Secretary receives
an application to conduct a demonstration
project under this subsection and does not
disapprove the application within 90 days after
the receipt, then, subject to the 10 State
limitation under paragraph (3)--
(I) the Secretary is deemed to have
approved the application for such
period as is requested in the
application, except to the extent
inconsistent with paragraph (5); 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 Secretary is deemed to be granted,
except to the extent inconsistent with
subparagraph (B) or (E) of this
paragraph.
(ii) Deadline extended if additional
information is sought.--The 90-day period
referred to in clause (i) 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.
(5) Duration of projects.--A demonstration project under
this subsection may be approved for a term of not more than 5
years.
(6) Reports to congress.--
(A) Report on disposition of applications.--Within
90 days after the date the Secretary receives an
application submitted pursuant to this subsection, the
Secretary shall submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the
House of Representatives notice of the receipt, a
description of the decision of the Secretary with
respect to the application, and the reasons for
approving or disapproving the application.
(B) Reports on projects.--The Secretary shall
provide annually to Congress a report concerning
demonstration projects approved under this subsection,
including--
(i) the projects approved for each
applicant;
(ii) the number of waivers granted under
this subsection, and the specific statutory
provisions waived;
(iii) 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;
(iv) how well each project for which a
waiver is granted is meeting the performance
objectives specified in paragraph (3)(C)(ii);
(v) how each project for which a waiver is
granted is conforming with the cost-neutrality
requirements of paragraph (4)(E); and
(vi) to the extent the Secretary deems
appropriate, recommendations for modification
of programs based on outcomes of the projects.
SEC. 115. STUDY BY THE CENSUS BUREAU.
(a) 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 or
enhance a longitudinal survey of program participation, 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.''.
(b) Reports on the Well-Being of Children and Families.--Section
414 (42 U.S.C. 614), as amended by subsection (a), is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Reports on the Well-Being of Children and Families.--
``(1) In general.--Not later than 24 months after the date
of enactment of the Personal Responsibility and Individual
Development for Everyone Act, the Secretary of Commerce shall
prepare and 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 well-being of children and families
using data collected under subsection (a).
``(2) Second report.--Not later than 60 months after such
date of enactment, the Secretary of Commerce shall submit a
second report to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate
on the well-being of children and families using data collected
under subsection (a).
``(3) Inclusion of comparable measures.--Where comparable
measures for data collected under subsection (a) exist in
surveys previously administered by the Bureau of the Census,
appropriate comparisons shall be made and included in each
report required under this subsection on the well-being of
children and families to assess changes in such measures.''.
(c) Appropriation.--Section 414(c) (42 U.S.C. 614(c)), as
redesignated by subsection (b)(1) and as amended by section 3(i) of the
Welfare Reform Extension Act of 2003 (Public Law 108-040, 117 Stat.
837), is amended by striking ``1996,'' and all that follows through the
period and inserting ``2004 through 2008 for payment to the Bureau of
the Census to carry out this section. Funds appropriated under this
subsection for a fiscal year shall remain available through fiscal year
2008 to carry out this section.''.
SEC. 116. FUNDING FOR CHILD CARE.
(a) Increase in Mandatory Funding.--Section 418(a)(3) (42 U.S.C.
618(a)(3)), as amended by section 4 of the Welfare Reform Extension Act
of 2003 (Public Law 108-040, 117 Stat. 837), 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 2004
through 2008.''.
(b) Inclusion of Commonwealth of Puerto Rico in Reservation of
Child Care Funds.--
(1) In general.--Section 418(a)(4) (42 U.S.C. 618(a)(4)) is
amended--
(A) in the paragraph heading, by striking ``Indian
tribes'' and inserting ``Amounts reserved'';
(B) by striking ``The Secretary'' and inserting the
following:
``(A) Indian tribes.--The Secretary''; and
(C) by adding at the end the following:
``(B) Puerto rico.--The Secretary shall reserve
$10,000,000 of the amount appropriated under paragraph
(3) for each fiscal year for payments to the
Commonwealth of Puerto Rico for each such fiscal year
for the purpose of providing child care assistance.''.
(2) Conforming amendment.--Section 1108(a)(2) (42 U.S.C.
1308(a)(2)), as amended by section 108(b)(3), is amended by
striking ``or 413(f)'' and inserting ``413(f), or
418(a)(4)(B)''.
SEC. 117. DEFINITIONS.
(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''.
(5) Section 5(g)(2)(D) of the Food Stamp Act of 1977 (7
U.S.C. 2014(g)(2)(D)) is amended--
(A) by striking ``If the vehicle allowance'' and
inserting the following:
``(i) In general.--If the vehicle
allowance''; and
(B) by adding at the end the following:
``(ii) Definition of assistance.--In clause
(i), the term `assistance' shall have the
meaning given such term in section 260.31 of
title 45 of the Code of Federal Regulations, as
in effect on June 1, 2002.''.
SEC. 118. RESPONSIBLE FATHERHOOD PROGRAM.
(a) Responsible Fatherhood Program.--
(1) Findings.--Congress makes the following findings:
(A) Nearly 24,000,000 children in the United
States, or 34 percent of all such children, live apart
from their biological father.
(B) Sixty percent of couples who divorce have at
least 1 child.
(C) The number of children living with only a
mother increased from just over 5,000,000 in 1960 to
17,000,000 in 1999, and between 1981 and 1991 the
percentage of children living with only 1 parent
increased from 19 percent to 25 percent.
(D) Forty percent of children who live in
households without a father have not seen their father
in at least 1 year and 50 percent of such children have
never visited their father's home.
(E) The most important factor in a child's
upbringing is whether the child is brought up in a
loving, healthy, supportive environment.
(F) Children who live without contact with their
biological father are, in comparison to children who
have such contact--
(i) 5 times more likely to live in poverty;
(ii) more likely to bring weapons and drugs
into the classroom;
(iii) twice as likely to commit crime;
(iv) twice as likely to drop out of school;
(v) more likely to commit suicide;
(vi) more than twice as likely to abuse
alcohol or drugs; and
(vii) more likely to become pregnant as
teenagers.
(G) Violent criminals are overwhelmingly males who
grew up without fathers.
(H) Between 20 and 30 percent of families in
poverty are headed by women who have suffered domestic
violence during the past year, and between 40 and 60
percent of women with children receiving welfare were
abused sometime during their life.
(I) Responsible fatherhood includes active
participation in financial support and child care, as
well as the formation and maintenance of a positive,
healthy, and nonviolent relationship between father and
child and a cooperative relationship between parents.
(J) States should be encouraged to implement
programs that provide support for responsible
fatherhood, promote marriage, and increase the
incidence of marriage, and should not be restricted
from implementing such programs.
(K) Fatherhood programs should promote and provide
support services for--
(i) loving and healthy relationships
between parents and children; and
(ii) cooperative parenting.
(L) There is a social need to reconnect children
and fathers.
(M) The promotion of responsible fatherhood and
encouragement of healthy 2-parent married families
should not--
(i) denigrate the standing or parenting
efforts of single mothers or other caregivers;
(ii) lessen the protection of children from
abusive parents; or
(iii) compromise the safety or health of
the custodial parent;
but should increase the chance that children will have
2 caring parents to help them grow up healthy and
secure.
(N) The promotion of responsible fatherhood must
always recognize and promote the values of nonviolence.
(O) For the future of the United States and the
future of our children, Congress, States, and local
communities should assist parents to become more
actively involved in their children's lives.
(P) Child support is an important means by which a
parent can take financial responsibility for a child
and emotional support is an important means by which a
parent can take social responsibility for a child.
(2) Fatherhood program.--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--RESPONSIBLE FATHERHOOD PROGRAM
```SEC. 441. RESPONSIBLE FATHERHOOD GRANTS.
```(a) Grants to States To Conduct Demonstration Programs.--
```(1) Authority to award grants.--
```(A) In general.--The Secretary shall award
grants to up to 10 eligible States to conduct
demonstration programs to carry out the purposes
described in paragraph (2).
```(B) Eligible state.--For purposes of this
subsection, an eligible State is a State that submits
to the Secretary the following:
```(i) Application.--An application for a
grant under this subsection, at such time, in
such manner, and containing such information as
the Secretary may require.
```(ii) State plan.--A State plan that
includes the following:
```(I) Project description.--A
description of the programs or
activities the State will fund under
the grant, including a good faith
estimate of the number and
characteristics of clients to be served
under such projects and how the State
intends to achieve at least 2 of the
purposes described in paragraph (2).
```(II) Coordination efforts.--A
description of how the State will
coordinate and cooperate with State and
local entities responsible for carrying
out other programs that relate to the
purposes intended to be achieved under
the demonstration program, including as
appropriate, entities responsible for
carrying out jobs programs and programs
serving children and families.
```(III) Records, reports, and
audits.--An agreement to maintain such
records, submit such reports, and
cooperate with such reviews and audits
as the Secretary finds necessary for
purposes of oversight of the
demonstration program.
```(iii) Certifications.--The following
certifications from the chief executive officer
of the State:
```(I) A certification that the
State will use funds provided under the
grant to promote at least 2 of the
purposes described in paragraph (2).
```(II) A certification that the
State will return any unused funds to
the Secretary in accordance with the
reconciliation process under paragraph
(5).
```(III) A certification that the
funds provided under the grant will be
used for programs and activities that
target low-income participants and that
not less than 50 percent of the
participants in each program or
activity funded under the grant shall
be--
```(aa) parents of a child
who is, or within the past 24
months has been, a recipient of
assistance or services under a
State program funded under part
A, D, or E of this title, title
XIX, or the Food Stamp Act of
1977; or
```(bb) parents, including
an expectant parent or a
married parent, whose income
(after adjustment for court-
ordered child support paid or
received) does not exceed 150
percent of the poverty line.
```(IV) A certification that the
State has or will comply with the
requirements of paragraph (4).
```(V) A certification that funds
provided to a State under this
subsection shall not be used to
supplement or supplant other Federal,
State, or local funds that are used to
support programs or activities that are
related to the purposes described in
paragraph (2).
```(C) Preferences and factors of consideration.--
In awarding grants under this subsection, the Secretary
shall take into consideration the following:
```(i) Diversity of entities used to
conduct programs and activities.--The Secretary
shall, to the extent practicable, achieve a
balance among the eligible States awarded
grants under this subsection with respect to
the size, urban or rural location, and
employment of differing or unique methods of
the entities that the eligible States intend to
use to conduct the programs and activities
funded under the grants.
```(ii) Priority for certain states.--The
Secretary shall give priority to awarding
grants to eligible States that have--
```(I) demonstrated progress in
achieving at least 1 of the purposes
described in paragraph (2) through
previous State initiatives; or
```(II) demonstrated need with
respect to reducing the incidence of
out-of-wedlock births or absent fathers
in the State.
```(2) Purposes.--The purposes described in this paragraph
are the following:
```(A) Promoting responsible fatherhood through
marriage promotion.--To promote marriage or sustain
marriage through activities such as counseling,
mentoring, disseminating information about the benefits
of marriage and 2-parent involvement for children,
enhancing relationship skills, education regarding how
to control aggressive behavior, disseminating
information on the causes of domestic violence and
child abuse, marriage preparation programs, premarital
counseling, marital inventories, skills-based marriage
education, financial planning seminars, including
improving a family's ability to effectively manage
family business affairs by means such as education,
counseling, or mentoring on matters related to family
finances, including household management, budgeting,
banking, and handling of financial transactions and
home maintenance, and divorce education and reduction
programs, including mediation and counseling.
```(B) Promoting responsible fatherhood through
parenting promotion.--To promote responsible parenting
through activities such as counseling, mentoring, and
mediation, disseminating information about good
parenting practices, skills-based parenting education,
encouraging child support payments, and other methods.
```(C) Promoting responsible fatherhood through
fostering economic stability of fathers.--To foster
economic stability by helping fathers improve their
economic status by providing activities such as work
first services, job search, job training, subsidized
employment, job retention, job enhancement, and
encouraging education, including career-advancing
education, dissemination of employment materials,
coordination with existing employment services such as
welfare-to-work programs, referrals to local employment
training initiatives, and other methods.
```(3) Restriction on use of funds.--No funds provided
under this subsection may be used for costs attributable to
court proceedings regarding matters of child visitation or
custody, or for legislative advocacy.
```(4) Requirements for receipt of funds.--A State may not
be awarded a grant under this section unless the State, as a
condition of receiving funds under such a grant--
```(A) consults with experts in domestic violence
or with relevant community domestic violence coalitions
in developing such programs or activities; and
```(B) describes in the application for a grant
under this section--
```(i) how the programs or activities
proposed to be conducted will address, as
appropriate, issues of domestic violence; and
```(ii) what the State will do, to the
extent relevant, to ensure that participation
in such programs or activities is voluntary,
and to inform potential participants that their
involvement is voluntary.
```(5) Reconciliation process.--
```(A) 3-year availability of amounts allotted.--
Each eligible State that receives a grant under this
subsection for a fiscal year shall return to the
Secretary any unused portion of the grant for such
fiscal year not later than the last day of the second
succeeding fiscal year, together with any earnings on
such unused portion.
```(B) Procedure for redistribution.--The Secretary
shall establish an appropriate procedure for
redistributing to eligible States that have expended
the entire amount of a grant made under this subsection
for a fiscal year any amount that is returned to the
Secretary by eligible States under subparagraph (A).
```(6) Amount of grants.--
```(A) In general.--Subject to subparagraph (B),
the amount of each grant awarded under this subsection
shall be an amount sufficient to implement the State
plan submitted under paragraph (1)(B)(ii).
```(B) Minimum amounts.--No eligible State shall--
```(i) in the case of the District of
Columbia or a State other than the Commonwealth
of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands,
receive a grant for a fiscal year in an amount
that is less than $1,000,000; and
```(ii) in the case of the Commonwealth of
Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, receive a grant
for a fiscal year in an amount that is less
than $500,000.
```(7) Definition of state.--In this subsection the term
`State' means each of the 50 States, the District of Columbia,
the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands.
```(8) Authorization of appropriations.--There is
authorized to be appropriated $20,000,000 for each of fiscal
years 2004 through 2008 for purposes of making grants to
eligible States under this subsection.
```(b) Grants to Eligible Entities To Conduct Demonstration
Programs.--
```(1) Authority to award grants.--
```(A) In general.--The Secretary shall award
grants to eligible entities to conduct demonstration
programs to carry out the purposes described in
subsection (a)(2).
```(B) Eligible entity.--For purposes of this
subsection, an eligible entity is a local government,
local public agency, community-based or nonprofit
organization, or private entity, including any
charitable or faith-based organization, or an Indian
tribe (as defined in section 419(4)), that submits to
the Secretary the following:
```(i) Application.--An application for a
grant under this subsection, at such time, in
such manner, and containing such information as
the Secretary may require.
```(ii) Project description.--A description
of the programs or activities the entity
intends to carry out with funds provided under
the grant, including a good faith estimate of
the number and characteristics of clients to be
served under such programs or activities and
how the entity intends to achieve at least 2 of
the purposes described in subsection (a)(2).
```(iii) Coordination efforts.--A
description of how the entity will coordinate
and cooperate with State and local entities
responsible for carrying out other programs
that relate to the purposes intended to be
achieved under the demonstration program,
including as appropriate, entities responsible
for carrying out jobs programs and programs
serving children and families.
```(iv) Records, reports, and audits.--An
agreement to maintain such records, submit such
reports, and cooperate with such reviews and
audits as the Secretary finds necessary for
purposes of oversight of the demonstration
program.
```(v) Certifications.--The following
certifications:
```(I) A certification that the
entity will use funds provided under
the grant to promote at least 2 of the
purposes described in subsection
(a)(2).
```(II) A certification that the
entity will return any unused funds to
the Secretary in accordance with the
reconciliation process under paragraph
(3).
```(III) A certification that the
funds provided under the grant will be
used for programs and activities that
target low-income participants and that
not less than 50 percent of the
participants in each program or
activity funded under the grant shall
be--
```(aa) parents of a child
who is, or within the past 24
months has been, a recipient of
assistance or services under a
State program funded under part
A, D, or E of this title, title
XIX, or the Food Stamp Act of
1977; or
```(bb) parents, including
an expectant parent or a
married parent, whose income
(after adjustment for court-
ordered child support paid or
received) does not exceed 150
percent of the poverty line.
```(IV) A certification that the
entity has or will comply with the
requirements of paragraph (3).
```(V) A certification that funds
provided to an entity under this
subsection shall not be used to
supplement or supplant other Federal,
State, or local funds provided to the
entity that are used to support
programs or activities that are related
to the purposes described in subsection
(a)(2).
```(C) Preferences and factors of consideration.--
In awarding grants under this subsection, the Secretary
shall, to the extent practicable, achieve a balance
among the eligible entities awarded grants under this
subsection with respect to the size, urban or rural
location, and employment of differing or unique methods
of the entities.
```(2) Restriction on use of funds.--No funds provided
under this subsection may be used for costs attributable to
court proceedings regarding matters of child visitation or
custody, or for legislative advocacy.
```(3) Requirements for use of funds.--The Secretary may
not award a grant under this subsection to an eligible entity
unless the entity, as a condition of receiving funds under such
a grant--
```(A) consults with experts in domestic violence
or with relevant community domestic violence coalitions
in developing the programs or activities to be
conducted with such funds awarded under the grant; and
```(B) describes in the application for a grant
under this section--
```(i) how the programs or activities
proposed to be conducted will address, as
appropriate, issues of domestic violence; and
```(ii) what the entity will do, to the
extent relevant, to ensure that participation
in such programs or activities is voluntary,
and to inform potential participants that their
involvement is voluntary.
```(4) Reconciliation process.--
```(A) 3-year availability of amounts allotted.--
Each eligible entity that receives a grant under this
subsection for a fiscal year shall return to the
Secretary any unused portion of the grant for such
fiscal year not later than the last day of the second
succeeding fiscal year, together with any earnings on
such unused portion.
```(B) Procedure for redistribution.--The Secretary
shall establish an appropriate procedure for
redistributing to eligible entities that have expended
the entire amount of a grant made under this subsection
for a fiscal year any amount that is returned to the
Secretary by eligible entities under subparagraph (A).
```(5) Authorization of appropriations.--There is
authorized to be appropriated $30,000,000 for each of fiscal
years 2004 through 2008 for purposes of making grants to
eligible entities under this subsection.
```SEC. 442. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD
PROGRAMS.
```(a) Media Campaign National Clearinghouse for Responsible
Fatherhood.--
```(1) In general.--From any funds appropriated under
subsection (c), the Secretary shall contract with a nationally
recognized, nonprofit fatherhood promotion organization
described in subsection (b) to--
```(A) develop, promote, and distribute to
interested States, local governments, public agencies,
and private entities a media campaign that encourages
the appropriate involvement of parents in the life of
any child, with a priority for programs that
specifically address the issue of responsible
fatherhood; and
```(B) develop a national clearinghouse to assist
States and communities in efforts to promote and
support marriage and responsible fatherhood by
collecting, evaluating, and making available (through
the Internet and by other means) to other States
information regarding the media campaigns established
under section 443.
```(2) Coordination with domestic violence programs.--The
Secretary shall ensure that the nationally recognized nonprofit
fatherhood promotion organization with a contract under
paragraph (1) coordinates the media campaign developed under
subparagraph (A) of such paragraph and the national
clearinghouse developed under subparagraph (B) of such
paragraph with national, State, or local domestic violence
programs.
```(b) Nationally Recognized, Nonprofit Fatherhood Promotion
Organization Described.--The nationally recognized, nonprofit
fatherhood promotion organization described in this subsection is an
organization that has at least 4 years of experience in--
```(1) designing and disseminating a national public
education campaign, as evidenced by the production and
successful placement of television, radio, and print public
service announcements that promote the importance of
responsible fatherhood, a track record of service to Spanish-
speaking populations and historically underserved or minority
populations, the capacity to fulfill requests for information
and a proven history of fulfilling such requests, and a
mechanism through which the public can request additional
information about the campaign; and
```(2) providing consultation and training to community-
based organizations interested in implementing fatherhood
outreach, support, or skill development programs with an
emphasis on promoting married fatherhood as the ideal.
```(c) Authorization of Appropriations.--There is authorized to be
appropriated $5,000,000 for each of fiscal years 2004 through 2008 to
carry out this section.
```SEC. 443. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.
```(a) Definitions.--In this section:
```(1) Broadcast advertisement.--The term `broadcast
advertisement' means a communication intended to be aired by a
television or radio broadcast station, including a
communication intended to be transmitted through a cable
channel.
```(2) Child at risk.--The term `child at risk' means each
young child whose family income does not exceed the poverty
line.
```(3) Poverty line.--The term `poverty line' has the
meaning given such term in section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)), including any
revision required by such section, that is applicable to a
family of the size involved.
```(4) Printed or other advertisement.--The term `printed
or other advertisement' includes any communication intended to
be distributed through a newspaper, magazine, outdoor
advertising facility, mailing, or any other type of general
public advertising, but does not include any broadcast
advertisement.
```(5) State.--The term `State' means each of the 50
States, the District of Columbia, the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American Samoa,
and the Commonwealth of the Northern Mariana Islands.
```(6) Young child.--The term `young child' means an
individual under age 5.
```(b) State Certifications.--Not later than October 1 of each of
fiscal year for which a State desires to receive an allotment under
this section, the chief executive officer of the State shall submit to
the Secretary a certification that the State shall--
```(1) use such funds to promote the formation and
maintenance of healthy 2-parent married families, strengthen
fragile families, and promote responsible fatherhood through
media campaigns conducted in accordance with the requirements
of subsection (d);
```(2) return any unused funds to the Secretary in
accordance with the reconciliation process under subsection
(e); and
```(3) comply with the reporting requirements under
subsection (f).
```(c) Payments to States.--For each of fiscal years 2004 through
2008, the Secretary shall pay to each State that submits a
certification under subsection (b), from any funds appropriated under
subsection (i), for the fiscal year an amount equal to the amount of
the allotment determined for the fiscal year under subsection (g).
```(d) Establishment of Media Campaigns.--Each State receiving an
allotment under this section for a fiscal year shall use the allotment
to conduct media campaigns as follows:
```(1) Conduct of media campaigns.--
```(A) Radio and television media campaigns.--
```(i) Production of broadcast
advertisements.--At the option of the State, to
produce broadcast advertisements that promote
the formation and maintenance of healthy 2-
parent married families, strengthen fragile
families, and promote responsible fatherhood.
```(ii) Airtime challenge program.--At the
option of the State, to establish an airtime
challenge program under which the State may
spend amounts allotted under this section to
purchase time from a broadcast station to air a
broadcast advertisement produced under clause
(i), but only if the State obtains an amount of
time of the same class and during a comparable
period to air the advertisement using non-
Federal contributions.
```(B) Other media campaigns.--At the option of the
State, to conduct a media campaign that consists of the
production and distribution of printed or other
advertisements that promote the formation and
maintenance of healthy 2-parent married families,
strengthen fragile families, and promote responsible
fatherhood.
```(2) Administration of media campaigns.--A State may
administer media campaigns funded under this section directly
or through grants, contracts, or cooperative agreements with
public agencies, local governments, or private entities,
including charitable and faith-based organizations.
```(3) Consultation with domestic violence assistance
centers.--In developing broadcast and printed advertisements to
be used in the media campaigns conducted under paragraph (1),
the State or other entity administering the campaign shall
consult with representatives of State and local domestic
violence centers.
```(4) Non-federal contributions.--In this section, the
term `non-Federal contributions' includes contributions by the
State and by public and private entities. Such contributions
may be in cash or in kind. Such term does not include any
amounts provided by the Federal Government, or services
assisted or subsidized to any significant extent by the Federal
Government, or any amount expended by a State before October 1,
2003.
```(e) Reconciliation Process.--
```(1) 3-year availability of amounts allotted.--Each State
that receives an allotment under this section shall return to
the Secretary any unused portion of the amount allotted to a
State for a fiscal year not later than the last day of the
second succeeding fiscal year together with any earnings on
such unused portion.
```(2) Procedure for redistribution of unused allotments.--
The Secretary shall establish an appropriate procedure for
redistributing to States that have expended the entire amount
allotted under this section any amount that is--
```(A) returned to the Secretary by States under
paragraph (1); or
```(B) not allotted to a State under this section
because the State did not submit a certification under
subsection (b) by October 1 of a fiscal year.
```(f) Reporting Requirements.--
```(1) Monitoring and evaluation.--Each State receiving an
allotment under this section for a fiscal year shall monitor
and evaluate the media campaigns conducted using funds made
available under this section in such manner as the Secretary,
in consultation with the States, determines appropriate.
```(2) Annual reports.--Not less frequently than annually,
each State receiving an allotment under this section for a
fiscal year shall submit to the Secretary reports on the media
campaigns conducted using funds made available under this
section at such time, in such manner, and containing such
information as the Secretary may require.
```(g) Amount of Allotments.--
```(1) In general.--Except as provided in paragraph (2), of
the amount appropriated for the purpose of making allotments
under this section for a fiscal year, the Secretary shall allot
to each State that submits a certification under subsection (b)
for the fiscal year an amount equal to the sum of--
```(A) the amount that bears the same ratio to 50
percent of such funds as the number of young children
in the State (as determined by the Secretary based on
the most current reliable data available) bears to the
number of such children in all States; and
```(B) the amount that bears the same ratio to 50
percent of such funds as the number of children at risk
in the State (as determined by the Secretary based on
the most current reliable data available) bears to the
number of such children in all States.
```(2) Minimum allotments.--No allotment for a fiscal year
under this section shall be less than--
```(A) in the case of the District of Columbia or a
State other than the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands, 1
percent of the amount appropriated for the fiscal year
under subsection (i); and
```(B) in the case of the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
Islands, 0.5 percent of such amount.
```(3) Pro rata reductions.--The Secretary shall make such
pro rata reductions to the allotments determined under this
subsection as are necessary to comply with the requirements of
paragraph (2).
```(h) Evaluation.--
```(1) In general.--The Secretary shall conduct an
evaluation of the impact of the media campaigns funded under
this section.
```(2) Report.--Not later than December 31, 2006, the
Secretary shall report to Congress the results of the
evaluation under paragraph (1).
```(3) Funding.--Of the amount appropriated under
subsection (i) for fiscal year 2004, $1,000,000 of such amount
shall be transferred and made available for purposes of
conducting the evaluation required under this subsection, and
shall remain available until expended.
```(i) Authorization of Appropriations.--There is authorized to be
appropriated $20,000,000 for each of fiscal years 2004 through 2008 for
purposes of making allotments to States under this section.'.
``(b) Inapplicability of Effective Date Provisions.--Section 116
shall not apply to the amendment made by subsection (a) of this
section.''.
(b) 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. Responsible fatherhood program.''.
SEC. 119. ADDITIONAL GRANTS.
(a) Grants To Capitalize and Develop Sustainable Social Services.--
Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end the
following:
``(6) Grants to capitalize and develop sustainable social
services.--
``(A) Authority to award grants.--The Secretary may
award grants to entities for the purpose of
capitalizing and developing the role of sustainable
social services that are critical to the success of
moving recipients of assistance under a State program
funded under this part to work.
``(B) Application.--
``(i) In general.--An entity desiring a
grant under this paragraph shall submit an
application to the Secretary, at such time, in
such manner, and, subject to clause (ii),
containing such information as the Secretary
may require.
``(ii) Strategy for generation of
revenue.--An application for a grant under this
paragraph shall include a description of the
capitalization strategy that the entity intends
to follow to develop a program that generates
its own source of ongoing revenue while
assisting recipients of assistance under a
State program funded under this part.
``(C) Use of funds.--
``(i) In general.--Funds made available
under a grant made under this paragraph may be
used for the acquisition, construction, or
renovation of facilities or buildings.
``(ii) General rules governing use of
funds.--The rules of section 404, other than
subsection (b) of that section, shall not apply
to a grant made under this paragraph.
``(D) Evaluation and report.--The Secretary shall,
by grant, contract, or interagency agreement, conduct
an evaluation of the programs developed with grants
awarded under this paragraph and shall submit a report
to Congress on the results of such evaluation.
``(E) Authorization of appropriations.--Out of any
money in the Treasury of the United States not
otherwise appropriated, there is appropriated to the
Secretary for the purpose of carrying out this
paragraph, $40,000,000 for each of fiscal years 2004
through 2008.''.
(b) Grants for Low-Income Car Ownership Programs.--Section 403(a)
(42 U.S.C. 603(a)), as amended by subsection (a), is further amended by
adding at the end the following:
``(7) Grants for low-income car ownership programs.--
``(A) Purposes.--The purposes of this paragraph are
to--
``(i) assist low-income families with
children obtain dependable, affordable
automobiles to improve their employment
opportunities and access to training; and
``(ii) provide incentives to States, Indian
tribes, localities, and nonprofit entities to
develop and administer programs that provide
assistance with automobile ownership for low-
income families.
``(B) Definitions.--In this paragraph:
``(i) Locality.--The term `locality' means
a municipality that does not administer a State
program funded under this part.
``(ii) Low-income family with children.--
The term `low-income family with children'
means a household that is eligible for benefits
or services funded under the State program
funded under this part or under a program
funded with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)).
``(iii) Nonprofit entity.--The term
`nonprofit entity' means a school, local
agency, organization, or institution owned and
operated by 1 or more nonprofit corporations or
associations, no part of the net earnings of
which inures, or may lawfully inure, to the
benefit of any private shareholder or
individual.
``(C) Authority to award grants.--The Secretary may
award grants to States, counties, localities, Indian
tribes, and nonprofit entities to promote improving
access to dependable, affordable automobiles by low-
income families with children.
``(D) Grant approval criteria.--The Secretary shall
establish criteria for approval of an application for a
grant under this paragraph that include consideration
of--
``(i) the extent to which the proposal, if
funded, is likely to improve access to training
and employment opportunities and child care
services by low-income families with children
by means of car ownership;
``(ii) the level of innovation in the
applicant's grant proposal; and
``(iii) any partnerships between the public
and private sector in the applicant's grant
proposal.
``(E) Use of funds.--
``(i) In general.--A grant awarded under
this paragraph shall be used to administer
programs that assist low-income families with
children with dependable automobile ownership,
and maintenance of, or insurance for, the
purchased automobile.
``(ii) Supplement not supplant.--Funds
provided to a State, Indian tribe, county, or
locality under a grant awarded under this
paragraph shall be used to supplement and not
supplant other State, county, or local public
funds expended for car ownership programs.
``(iii) General rules governing use of
funds.--The rules of section 404, other than
subsection (b) of that section, shall not apply
to a grant made under this paragraph.
``(F) Application.--Each applicant desiring a grant
under this paragraph shall submit an application to the
Secretary at such time, in such manner, and accompanied
by such information as the Secretary may reasonably
require.
``(G) Reversion of funds.--Any funds not expended
by a grantee within 3 years after the date the grant is
awarded under this paragraph shall be available for
redistribution among other grantees in such manner and
amount as the Secretary may determine, unless the
Secretary extends by regulation the time period to
expend such funds.
``(H) Limitation on administrative costs of the
secretary.--Not more than an amount equal to 5 percent
of the funds appropriated to make grants under this
paragraph for a fiscal year shall be expended for
administrative costs of the Secretary in carrying out
this paragraph.
``(I) Evaluation.--The Secretary shall, by grant,
contract, or interagency agreement, conduct an
evaluation of the programs administered with grants
awarded under this paragraph.
``(J) Authorization of appropriations.--There is
authorized to be appropriated to the Secretary to make
grants under this paragraph, $25,000,000 for each of
fiscal years 2004 through 2008.''.
SEC. 120. 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)).
TITLE II--ABSTINENCE EDUCATION
SEC. 201. EXTENSION OF ABSTINENCE EDUCATION PROGRAM.
(a) Extension of Appropriations.--Section 510(d) (42 U.S.C.
710(d)), as amended by section 6 of the Welfare Reform Extension Act of
2003 (Public Law 108-040, 117 Stat. 837), is amended by striking
``2003'' and inserting ``2008''.
(b) Allotment of Funds.--Section 510(a) (42 U.S.C. 710(a)) is
amended--
(1) in the matter preceding paragraph (1), by striking ``an
application for the fiscal year under section 505(a)'' and
inserting ``, for the fiscal year, an application under section
505(a), and an application under this section (in such form and
meeting such terms and conditions as determined appropriate by
the Secretary),''; and
(2) in paragraph (2), to read as follows:
``(2) the percentage described in section 502(c)(1)(B)(ii)
that would be determined for the State under section 502(c) if
such determination took into consideration only those States
that transmitted both such applications for such fiscal
year.''.
(c) Reallotment of Funds.--Section 510 (42 U.S.C. 710(a)) is
amended by adding at the end the following:
``(e)(1) With respect to allotments under subsection (a) for fiscal
year 2004 and subsequent fiscal years, the amount of any allotment to a
State for a fiscal year that the Secretary determines will not be
required to carry out a program under this section during such fiscal
year or the succeeding fiscal year shall be available for reallotment
from time to time during such fiscal years on such dates as the
Secretary may fix, to other States that the Secretary determines--
``(A) require amounts in excess of amounts previously
allotted under subsection (a) to carry out a program under this
section; and
``(B) will use such excess amounts during such fiscal
years.
``(2) Reallotments under paragraph (1) shall be made on the basis
of such States' applications under this section, after taking into
consideration the population of low-income children in each such State
as compared with the population of low-income children in all such
States with respect to which a determination under paragraph (1) has
been made by the Secretary.
``(3) Any amount reallotted under paragraph (1) to a State is
deemed to be part of its allotment under subsection (a).''.
(d) Effective Date.--The amendments made by this section shall be
effective with respect to the program under section 510 for fiscal
years 2004 and succeeding fiscal years.
TITLE III--CHILD SUPPORT
SEC. 301. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF
OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.
(a) Modification of Rule Requiring Assignment of Support Rights as
a Condition of Receiving TANF.--Section 408(a)(3) (42 U.S.C. 608(a)(3))
is amended to read as follows:
``(3) No assistance for families not assigning certain
support rights to the state.--A State to which a grant is made
under section 403 shall require, as a condition of paying
assistance to a family under the State program funded under
this part, that a member of the family assign to the State any
right the family member may have (on behalf of the family
member or of any other person for whom the family member has
applied for or is receiving such assistance) to support from
any other person, not exceeding the total amount of assistance
so paid to the family, which accrues during the period that the
family receives assistance under the program.''.
(b) Increasing Child Support Payments to Families and Simplifying
Child Support Distribution Rules.--
(1) Distribution rules.--
(A) In general.--Section 457(a) (42 U.S.C. 657(a))
is amended to read as follows:
``(a) In General.--Subject to subsections (d) and (e), the amounts
collected on behalf of a family as support by a State pursuant to a
plan approved under this part shall be distributed as follows:
``(1) Families receiving assistance.--In the case of a
family receiving assistance from the State, the State shall--
``(A) pay to the Federal Government the Federal
share of the amount collected, subject to paragraph
(3)(A);
``(B) retain, or pay to the family, the State share
of the amount collected, subject to paragraph (3)(B);
and
``(C) pay to the family any remaining amount.
``(2) Families that formerly received assistance.--In the
case of a family that formerly received assistance from the
State:
``(A) Current support.--To the extent that the
amount collected does not exceed the current support
amount, the State shall pay the amount to the family.
``(B) Arrearages.--Except as otherwise provided in
an election made under section 454(34), to the extent
that the amount collected exceeds the current support
amount, the State--
``(i) shall first pay to the family the
excess amount, to the extent necessary to
satisfy support arrearages not assigned
pursuant to section 408(a)(3);
``(ii) if the amount collected exceeds the
amount required to be paid to the family under
clause (i), shall--
``(I) pay to the Federal Government
the Federal share of the excess amount
described in this clause, subject to
paragraph (3)(A); and
``(II) retain, or pay to the
family, the State share of the excess
amount described in this clause,
subject to paragraph (3)(B); and
``(iii) shall pay to the family any
remaining amount.
``(3) Limitations.--
``(A) Federal reimbursements.--The total of the
amounts paid by the State to the Federal Government
under paragraphs (1) and (2) of this subsection with
respect to a family shall not exceed the Federal share
of the amount assigned with respect to the family
pursuant to section 408(a)(3).
``(B) State reimbursements.--The total of the
amounts retained by the State under paragraphs (1) and
(2) of this subsection with respect to a family shall
not exceed the State share of the amount assigned with
respect to the family pursuant to section 408(a)(3).
``(4) Families that never received assistance.--In the case
of any other family, the State shall pay the amount collected
to the family.
``(5) Families under certain agreements.--Notwithstanding
paragraphs (1) through (3), in the case of an amount collected
for a family in accordance with a cooperative agreement under
section 454(33), the State shall distribute the amount
collected pursuant to the terms of the agreement.
``(6) State financing options.--To the extent that the
State's share of the amount payable to a family pursuant to
paragraph (2)(B) of this subsection exceeds the amount that the
State estimates (under procedures approved by the Secretary)
would have been payable to the family pursuant to former
section 457(a)(2)(B) (as in effect for the State immediately
before the date this subsection first applies to the State) if
such former section had remained in effect, the State may elect
to have the payment considered a qualified State expenditure
for purposes of section 409(a)(7).
``(7) State option to pass through additional support with
federal financial participation.--
``(A) Families that formerly received assistance.--
Notwithstanding paragraph (2), a State shall not be
required to pay to the Federal Government the Federal
share of an amount collected on behalf of a family that
formerly received assistance from the State to the
extent that the State pays the amount to the family.
``(B) Families that currently receive assistance.--
``(i) In general.--Notwithstanding
paragraph (1), in the case of a family that
receives assistance from the State, a State
shall not be required to pay to the Federal
Government the Federal share of the excepted
portion (as defined in clause (ii)) of any
amount collected on behalf of such family
during a month to the extent that--
``(I) the State pays the excepted
portion to the family; and
``(II) the excepted portion is
disregarded in determining the amount
and type of assistance provided to the
family under such program.
``(ii) Excepted portion defined.--For
purposes of this subparagraph, the term
`excepted portion' means that portion of the
amount collected on behalf of a family during a
month that does not exceed $400 per month, or
in the case of a family that includes 2 or more
children, that does not exceed an amount
established by the State that is not more than
$600 per month.
``(8) States with demonstration waivers.--Notwithstanding
the preceding paragraphs, in the case of a State that, on the
date of enactment of this paragraph, has had in effect since
October 1, 1997, a waiver under section 1115 permitting
passthrough payments of child support collections--
``(A) the State may continue to distribute such
payments to families without regard to the expiration
date of such waiver; and
``(B) the requirement under paragraph (1) to pay to
the Federal Government the Federal share of the amount
collected on behalf of a family shall not apply to the
extent that--
``(i) the State distributes such amount to
the family; and
``(ii) such amount is disregarded in
determining the amount and type of assistance
paid to the family.''.
(B) State plan to include election as to which
rules to apply in distributing child support arrearages
collected on behalf of families formerly receiving
assistance.--Section 454 (42 U.S.C. 654) is amended--
(i) by striking ``and'' at the end of
paragraph (32);
(ii) by striking the period at the end of
paragraph (33) and inserting ``; and''; and
(iii) by inserting after paragraph (33) the
following:
``(34) include an election by the State to apply section
457(a)(2)(B) of this Act or former section 457(a)(2)(B) of this
Act (as in effect for the State immediately before the date
this paragraph first applies to the State) to the distribution
of the amounts which are the subject of such sections and, for
so long as the State elects to so apply such former section,
the amendments made by section 301(d)(1) of the Personal
Responsibility and Individual Development for Everyone Act
shall not apply with respect to the State, notwithstanding
section 301(e) of that Act.''.
(C) Approval of estimation procedures.--Not later
than the date that is 6 months after the date of
enactment of this Act, the Secretary of Health and
Human Services, in consultation with the States (as
defined for purposes of part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.)), shall
establish the procedures to be used to make the
estimate described in section 457(a)(6) of such Act (42
U.S.C. 657(a)(6)).
(2) Current support amount defined.--Section 457(c) (42
U.S.C. 657(c)) is amended by adding at the end the following:
``(5) Current support amount.--The term `current support
amount' means, with respect to amounts collected as support on
behalf of a family, the amount designated as the monthly
support obligation of the noncustodial parent in the order
requiring the support.''.
(c) State Option To Discontinue Older Support Assignments.--Section
457(b) (42 U.S.C. 657(b)) is amended to read as follows:
``(b) Continuation of Assignments.--
``(1) State option to discontinue pre-1997 support
assignments.--
``(A) In general.--Any rights to support
obligations assigned to a State as a condition of
receiving assistance from the State under part A and in
effect on September 30, 1997 (or such earlier date on
or after August 22, 1996, as the State may choose), may
remain assigned after such date.
``(B) Distribution of amounts after assignment
discontinuation.--If a State chooses to discontinue the
assignment of a support obligation described in
subparagraph (A), the State may treat amounts collected
pursuant to such assignment as if such amounts had
never been assigned and may distribute such amounts to
the family in accordance with subsection (a)(4).
``(2) State option to discontinue post-1997 assignments.--
``(A) In general.--Any rights to support
obligations accruing before the date on which a family
first receives assistance under part A that are
assigned to a State under that part and in effect
before the implementation date of this section may
remain assigned after such date.
``(B) Distribution of amounts after assignment
discontinuation.--If a State chooses to discontinue the
assignment of a support obligation described in
subparagraph (A), the State may treat amounts collected
pursuant to such assignment as if such amounts had
never been assigned and may distribute such amounts to
the family in accordance with subsection (a)(4).''.
(d) Conforming Amendments.--
(1) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)), as
amended by section 103(c), is amended--
(A) in subclause (I)(aa), by striking
``457(a)(1)(B)'' and inserting ``457(a)(1)''; and
(B) by adding at the end the following:
``(VI) Portions of certain child
support payments collected on behalf of
and distributed to families no longer
receiving assistance.--Any amount paid
by a State pursuant to clause (i) or
(ii) of section 457(a)(2)(B), but only
to the extent that the State properly
elects under section 457(a)(6) to have
the payment considered a qualified
State expenditure.''.
(2) Section 6402(c) of the Internal Revenue Code of 1986
(relating to offset of past-due support against overpayments)
is amended--
(A) in the first sentence, by striking ``the Social
Security Act.'' and inserting ``of such Act.''; and
(B) by striking the third sentence and inserting
the following: ``The Secretary shall apply a reduction
under this subsection first to an amount certified by
the State as past due support under section 464 of the
Social Security Act before any other reductions allowed
by law.''.
(e) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on October 1, 2007, and shall apply to payments
under parts A and D of title IV of the Social Security Act for
calendar quarters beginning on or after such date, and without
regard to whether regulations to implement such amendments (in
the case of State programs operated under such part D) are
promulgated by such date.
(2) State option to accelerate effective date.--In
addition, a State may elect to have the amendments made by this
section apply to the State and to amounts collected by the
State (and such payments under parts A and D), on and after
such date as the State may select that is after the date of
enactment of this Act and before October 1, 2007.
SEC. 302. 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 amendments made by subsection (a) shall
take effect on October 1, 2005.
SEC. 303. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.
Not later than 6 months after the date of 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 undistributed child support and the
average length of time it takes undistributed 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 Federal or State
level to expedite the payment of undistributed child support.
SEC. 304. 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, for purposes of
administering an unemployment compensation program
under Federal or State law, a State agency responsible
for the administration of such program transmits to the
Secretary the name and social security account number
of an individual, the Secretary shall disclose to the
State agency information on the individual and the
individual's employer that is maintained in the
National Directory of New Hires, subject to the
succeeding provisions of this paragraph.
``(B) Condition on disclosure by the secretary.--
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 and disclosure of information by state
agencies.--
``(i) In general.--A State agency may not
use or disclose information provided under this
paragraph except for purposes of administering
a program referred to in subparagraph (A).
``(ii) Information security.--A State
agency to which information is provided under
this paragraph shall have in effect data
security and control policies that the
Secretary finds adequate to ensure the security
of information obtained under this paragraph
and to ensure that access to such information
is restricted to authorized persons for
purposes of authorized uses and disclosures.
``(iii) Penalty for misuse of
information.--An officer or employee of a State
agency who fails to comply with this
subparagraph shall be subject to the sanctions
under subsection (l)(2) to the same extent as
if such officer or employee was an officer or
employee of the United States.
``(D) Procedural requirements.--A State agency
requesting information under this paragraph shall
adhere to uniform procedures established by the
Secretary governing information requests and data
matching under this paragraph.
``(E) Reimbursement of costs.--A State agency shall
reimburse the Secretary, in accordance with subsection
(k)(3), for the costs incurred by the Secretary in
furnishing the information requested under this
paragraph.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2004.
SEC. 305. 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, 2004.
SEC. 306. 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, 2005.
SEC. 307. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
CONNECTED DISABILITIES IN ORDER TO ENFORCE OBLIGATIONS.
(a) In General.--Section 459(h)(1)(A)(ii)(V)) (42 U.S.C.
659(h)(1)(A)(ii)(V)) is amended by striking all that follows ``Armed
Forces'' and inserting ``, except that such compensation shall not be
subject to withholding pursuant to this section for payment of alimony
unless the former member to whom it is payable is in receipt of retired
or retainer pay and has waived a portion of such pay in order to
receive such compensation;''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2005.
SEC. 308. IMPROVING FEDERAL DEBT COLLECTION PRACTICES.
(a) In General.--Section 3716(h)(3) of title 31, United States
Code, is amended to read as follows:
``(3)(A) Except as provided in subparagraph (B), in applying this
subsection with respect to any debt owed to a State, subsection
(c)(3)(A) shall not apply.
``(B) Subparagraph (A) shall not apply with respect to payments
owed to an individual under title II of the Social Security Act, for
purposes of an offset under this section of such payments against past-
due support (as defined in section 464(c) of the Social Security Act,
without regard to paragraphs (2) and (3) of such section 464(c)) that
is being enforced by a State agency administering a program under part
D of title IV of that Act.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 2004.
SEC. 309. 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. 310. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE FUNDING.
Section 453(o) (42 U.S.C. 653(o)) is amended--
(1) in the first 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 second sentence, by striking ``for each of
fiscal years 1997 through 2001''.
SEC. 311. IDENTIFICATION AND SEIZURE OF ASSETS HELD BY MULTISTATE
FINANCIAL INSTITUTIONS.
(a) Duties of the Secretary.--Section 452(l) (42 U.S.C. 652(l)) is
amended to read as follows:
``(l) Identification and seizure of assets held by multistate
Financial Institutions.--
``(1) In general.--The Secretary, through the Federal
Parent Locator Service, is authorized--
``(A) to assist State agencies operating programs
under this part and financial institutions doing
business in 2 or more States in reaching agreements
regarding the receipt from such institutions, and the
transfer to the State agencies, of information that may
be provided pursuant to section 466(a)(17)(A)(i) or
469A(a);
``(B) to perform data matches comparing information
from such State agencies and financial institutions
entering into such Agreements with respect to
individuals owing past-due support; and
``(C) to seize assets, held by such financial
institutions, of individuals identified through such
data matches who owe past-due support, by--
``(i) issuing a notice of lien or levy to
such financial institutions requiring them to
encumber such assets for 30 calendar days and
to subsequently transfer such assets to the
Secretary (except that the Secretary shall
promptly release such lien or levy within such
30-day period upon request of the State
agencies responsible for collecting past-due
support from such individuals); and
``(ii) providing notice to such individuals
of the lien or levy upon their assets and
informing them--
``(I) of their procedural due
process rights, including the
opportunity to contest such lien or
levy to the appropriate State agency;
and
``(II) in the case of jointly owned
assets, of the process by which other
owners may secure their respective
share of such assets, according to such
policies and procedures as the
Secretary may specify with respect to
seizure of such assets.
``(2) Transfer of funds to states.--Assets seized from
individuals under paragraph (1)(C) shall be promptly
transferred by the Secretary to the State agencies responsible
for collecting past-due support from such individuals for
distribution pursuant to section 457.
``(3) Relationship to state laws.--Notwithstanding any
provision of State law, an individual receiving a notice under
paragraph (1)(C) shall have 21 calendar days from the date of
such notice to contest the lien or levy imposed under such
paragraph by requesting an administrative review by the State
agency responsible for collecting past-due support from such
individual.
``(4) Treatment of disclosures.--For purposes of section
1113(d) of the Right to Financial Privacy Act of 1978, a
disclosure pursuant to this subsection shall be considered a
disclosure pursuant to a Federal statute.''.
(b) State Duties.--
(1) Individuals with assets subject to federal seizure.--
Section 454 (42 U.S.C. 654), as amended by section
301(b)(1)(B)(iii), is amended--
(A) in paragraph (33), by striking ``and'' at the
end;
(B) in paragraph (34), by striking the period and
inserting ``; and''; and
(C) by inserting after paragraph (34), the
following:
``(35) provide that the State shall--
``(A) upon furnishing the Secretary with
information under section 452(l) with respect to
individuals owing past-due support, provide notice to
such individuals that their assets held in financial
institutions shall be subject to seizure to pay such
past-due support, and shall--
``(i) instruct such individuals of the
steps which may be taken to contest the State's
determination that past-due support is owed or
the amount of the past-due support; and
``(ii) include, in the case of jointly
owned assets, a description of the process by
which other owners may secure their share of
such assets, in accordance with such policies
and procedures as the Secretary may specify
with respect to seizure of such assets;
``(B) promptly resolve cases in which such
individuals contest the State's determination with
respect to past-due support, and provide for expedited
refund of any assets erroneously seized and transferred
to the State under such section 452(l); and
``(C) except as otherwise specified under this
paragraph or by the Secretary, ensure that the due
process protections afforded under this paragraph to
individuals whose assets are subject to seizure under
section 452(l) are generally consistent with, and to
the extent practicable conform to, the due process
protections afforded by the State to individuals
subject to offset of tax refunds under section 464.''.
(2) Reimbursement of federal costs.--Section 453(k)(3) (42
U.S.C. 653(k)(3)) is amended--
(A) in the paragraph heading, by inserting ``and
enforcement services'' after ``information''
(B) by inserting ``or enforcement services'' after
``that receives information'';
(C) by inserting ``or section 452(l)'' after
``pursuant to this section''; and
(D) by striking ``in furnishing the information''
and inserting ``in furnishing such information or
enforcement services''.
(c) Conforming Amendments.--
(1) State law requirements.--Section 466(a)(17) (42 U.S.C.
666(a)(17)) is amended--
(A) in subparagraph (A)--
(i) in clause (i), by inserting ``pursuant
to section 452(l)'' after ``and the Federal
Parent Locator Service''; and
(ii) in clause (ii), by inserting ``issued
by the State agency or by the Secretary under
section 452(l)'' after ``in response to a
notice of lien or levy''; and
(B) in subparagraph (C)--
(i) in clause (i), by inserting ``or to the
Federal Parent Locator Service'' after ``to the
State agency''; and
(ii) in clause (ii), by striking ``issued
by the State agency''.
(2) Non Liability for financial institutions.--Section
469A(a) (42 U.S.C. 669a(a)) is amended by inserting ``section
452(l) or'' before ``section 466(a)(17)(A)''.
SEC. 312. INFORMATION COMPARISONS WITH INSURANCE DATA.
(a) Duties of the Secretary.--Section 452 (42 U.S.C. 652) is
amended by adding at the end the following:
``(m) Comparisons With Insurance Information.--
``(1) In general.--The Secretary, through the Federal
Parent Locator Service, is authorized--
``(A) to compare information concerning individuals
owing past-due support with information maintained by
insurers (or their agents) concerning insurance claims,
settlements, awards, and payments, and
``(B) to furnish information resulting from such
data matches to the State agencies responsible for
collecting child support from such individuals.
``(2) Liability.--No insurer (including any agent of an
insurer) shall be liable under any Federal or State law to any
person for any disclosure provided for under this subsection,
or for any other action taken in good faith in accordance with
the provisions of this subsection.''.
(b) State Reimbursement of Federal Costs.--Section 453(k)(3) (42
U.S.C. 653(k)(3)), as amended by section 312(b)(2), is amended by
striking ``section 452(l)'' and inserting ``subsection (l) or (m) of
section 452''.
SEC. 313. TRIBAL ACCESS TO THE FEDERAL PARENT LOCATOR SERVICE.
Section 453(c)(1) (42 U.S.C. 653(c)(1)) is amended by inserting
``or Indian tribe or tribal organization'' after ``any agent or
attorney of any State''.
SEC. 314. REIMBURSEMENT OF SECRETARY'S COSTS OF INFORMATION COMPARISONS
AND DISCLOSURE FOR ENFORCEMENT OF OBLIGATIONS ON HIGHER
EDUCATION ACT LOANS AND GRANTS.
Section 453(j)(6)(F) (42 U.S.C. 653(j)(6)(F)) is amended by
striking ``additional''.
SEC. 315. TECHNICAL AMENDMENT RELATING TO COOPERATIVE AGREEMENTS
BETWEEN STATES AND INDIAN TRIBES.
Section 454(33) (42 U.S.C. 654(33)) is amended by striking ``that
receives funding pursuant to section 428 and''.
SEC. 316. CLAIMS UPON LONGSHORE AND HARBOR WORKERS' COMPENSATION FOR
CHILD SUPPORT.
(a) In General.--Section 17 of the Longshore and Harbor Workers'
Compensation Act (33 U.S.C. 917) is amended to read as follows:
``liens on compensation; child support enforcement
``Sec. 17. (a) Liens.--Where a trust fund which complies with
section 302(c) of the Labor Management Relations Act, 1947 (29 U.S.C.
186(c)) established pursuant to a collective-bargaining agreement in
effect between an employer and an employee covered under this Act has
paid disability benefits to an employee which the employee is legally
obligated to repay by reason of the employee's entitlement to
compensation under this Act or under a settlement, the Secretary shall
authorize a lien on such compensation in favor of the trust fund for
the amount of such payments.
``(b) Child Support.--Compensation or benefits due or payable to an
individual under this Act (other than medical benefits) shall be
subject, in like manner and to the same extent as similar compensation
or benefits under a workers' compensation program if established under
State law--
``(1) to withholding in accordance with State law enacted
pursuant to subsections (a)(1) and (b) of section 466 of the
Social Security Act and regulations under such subsections; and
``(2) to any other legal process brought, by a State agency
administering a program under a State plan approved under part
D of title IV of the Social Security Act or by an individual
obligee, to enforce the legal obligation of the individual to
provide child support or alimony.''.
(b) Conforming Amendment.--Section 16 of the Longshore and Harbor
Workers' Compensation Act (33 U.S.C. 916) is amended--
(1) by striking ``No'' and inserting ``Except as provided
by this Act, no''; and
(2) by striking ``, except as provided by this Act,'' after
``under this Act''.
SEC. 317. STATE OPTION TO USE STATEWIDE AUTOMATED DATA PROCESSING AND
INFORMATION RETRIEVAL SYSTEM FOR INTERSTATE CASES.
Section 466(a)(14)(A)(iii) (42 U.S.C. 666(a)(14)(A)(iii)) is
amended by inserting before the semicolon the following: ``(but the
assisting State may establish a corresponding case based on such other
State's request for assistance)''.
SEC. 318. INTERCEPTION OF GAMBLING WINNINGS FOR CHILD SUPPORT.
(a) Interception of Gambling Winnings for Child Support.--Section
452 (42 U.S.C. 652), as amended by section 313, is amended by adding at
the end the following:
``(n) Interception of Gambling Winnings for Past-Due Support.--
``(1) In general.--The Secretary, through the Federal
Parent Locator Service, is authorized, in accordance with this
subsection, to intercept gambling winnings of an individual
owing past-due support being enforced by a State agency with a
plan approved under this part, and to transmit such winnings to
the State agency for distribution pursuant to section 457.
``(2) Requirements for gambling establishments.--A gambling
establishment subject to this subsection shall not pay to any
individual gambling winnings (as defined in paragraph (6))
meeting the criteria for reporting to the Internal Revenue
Service pursuant to section 6041 of the Internal Revenue Code
of 1986 until the establishment--
``(A) has furnished to the Secretary--
``(i) the information required to be so
reported with respect to such individual and
such winnings; and
``(ii) the net amount of such gambling
winnings (hereafter in this subsection referred
to as the `net gambling winnings') after
withholding of amounts for Federal taxes as
required pursuant to section 3402(q) of the
Internal Revenue Code of 1986; and
``(B) has complied with the Secretary's
instructions pursuant to paragraph (3).
``(3) Data match and withholding.--The Secretary shall--
``(A) compare information furnished pursuant to
paragraph (2)(A) with information on individuals who
owe past-due support;
``(B) direct the gambling establishment to withhold
from an individual's net gambling winnings all amounts
not exceeding the total past-due support owed by the
individual;
``(C) authorize the gambling establishment, in
reimbursement of its costs of complying with this
subsection, to withhold and retain from such net
gambling winnings an amount equal to 2 percent of the
amount to be withheld pursuant to subparagraph (B),
which amount shall be taken first from any excess of
such net winnings above the amount withheld pursuant to
subparagraph (B), with any balance to be taken from the
amount so withheld; and
``(D) require the gambling establishment to furnish
written notice to the individual whose gambling
winnings are withheld pursuant to this subsection, that
includes--
``(i) the amounts withheld pursuant to
subparagraphs (B) and (C);
``(ii) the reason and authority for the
withholding; and
``(iii) an explanation of the individual's
procedural due process rights, including the
right to contest such withholding to the
responsible State agency and information
necessary to contact such State agency.
``(4) Transfer of withheld amounts.--Net amounts withheld
for past-due support pursuant to subparagraphs (B) and (C) of
paragraph (3) shall--
``(A) be transferred by the gambling establishment
to the Secretary at the same time and in the same
manner as amounts withheld under section 3402(q) of the
Internal Revenue Code of 1986 would be transferred to
the Internal Revenue Service, together with the
information described in paragraph (2)(A)(i) with
respect to the individuals whose winnings were withheld
under this subsection; and
``(B) be promptly transferred by the Secretary to
the appropriate State agency.
``(5) Nonliability of gambling establishments.--A gambling
establishment shall not be liable under any Federal or State
law to any person--
``(A) for any disclosure of information to the
Secretary under this subsection;
``(B) for withholding or surrendering gambling
winnings in accordance with this subsection; or
``(C) for any other action taken in good faith to
comply with this subsection.
``(6) Definition of gambling winnings.--In this subsection,
the term `gambling winnings' means the proceeds of a wager that
are subject to reporting under section 6041 of the Internal
Revenue Code of 1986.''.
(b) Requirement for State Laws.--Section 466(a) (42 U.S.C. 666(a))
is amended by inserting after paragraph (19) the following:
``(20) Interception of gambling winnings.--Procedures under
which--
``(A) gambling establishments subject to the laws
of the State are required to comply with the provisions
of section 452(n), and are subject to sanctions for
failure to comply, which shall include liability in an
amount equal to the amount the establishment would have
withheld if it so complied;
``(B) noncustodial parents owing past-due support
are provided with written notice that gambling winnings
may be subject to withholding for past-due support
under section 452(n); and
``(C) cases where such noncustodial parents contest
the State's determination with respect to past-due
support are promptly resolved, and expedited refund is
made of any amounts erroneously seized under such
section 452(n).''.
(c) State Reimbursement of Federal Costs.--Section 453(k)(3) (42
U.S.C.653(k)(3)), as amended by section 313(b), is amended by striking
``or (m)'' and inserting ``(m), or (n)''.
(d) Requirement for Participating Indian Tribes.--Section 455(f)
(42 U.S.C. 655(f)) is amended in the first sentence by striking ``and
location of absent parents'' and inserting ``location of absent
parents, and interception of gambling winnings consistent with the
requirements of sections 452(n) and 466(a)(20)''.
SEC. 319. STATE LAW REQUIREMENT CONCERNING THE UNIFORM INTERSTATE
FAMILY SUPPORT ACT (UIFSA).
(a) In General.--Section 466(f) (42 U.S.C. 666(f)) is amended--
(1) by striking ``and as in effect on August 22, 1996,'';
and
(2) by striking ``adopted as of such date'' and inserting
``adopted as of August, 2001''.
(b) Full Faith and Credit for Child Support Orders.--Section 1738B
of title 28, United States Code, is amended--
(1) by striking subsection (d) and inserting the following:
``(d) Continuing Exclusive Jurisdiction.--
``(1) In general.--Subject to paragraph (2), a court of a
State that has made a child support order consistent with this
section has continuing, exclusive jurisdiction to modify its
order if the order is the controlling order and--
``(A) the State is the child's State or the
residence of any individual contestant; or
``(B) if the State is not the residence of the
child or an individual contestant, the contestants
consent in a record or in open court that the court may
continue to exercise jurisdiction to modify its order.
``(2) Requirement.--A court may not exercise its
continuing, exclusive jurisdiction to modify the order if the
court of another State, acting in accordance with subsections
(e) and (f), has made a modification of the order.'';
(2) in subsection (e)(2)--
(A) in subparagraph (A), by striking ``because''
and all that follows through the semicolon and
inserting ``pursuant to paragraph (1) or (2) of
subsection (d);'' and
(B) in subparagraph (B), by inserting ``with
jurisdiction over at least 1 of the individual
contestants or that is located in the child's State''
after ``another State'';
(3) in subsection (f)--
(A) in the subsection heading, by striking
``Recognition of'' and inserting ``Determination of
Controlling'';
(B) in the matter preceding paragraph (1), by
striking ``shall apply'' and all that follows through
the colon and inserting ``having personal jurisdiction
over both individual contestants shall apply the
following rules and by order shall determine which
order controls:''
(C) in paragraph (1), by striking ``must be'' and
inserting ``controls and must be so'';
(D) in paragraph (2), by striking ``must be
recognized'' and inserting ``controls'';
(E) in paragraph (3), by striking ``must be
recognized'' each place it appears and inserting
``controls'';
(F) in paragraph (4)--
(i) by striking ``may'' and inserting
``shall''; and
(ii) by striking ``must be recognized'' and
inserting ``controls''; and
(G) by striking paragraph (5);
(4) by striking subsection (g) and inserting the following:
``(g) Enforcement of Modified Orders.--If a child support order
issued by a court of a State is modified by a court of another State
which properly assumed jurisdiction, the issuing court--
``(1) may enforce its order that was modified only as to
arrears and interest accruing before the modification;
``(2) may provide appropriate relief for violations of its
order which occurred before the effective date of the
modification; and
``(3) shall recognize the modifying order of the other
State for the purpose of enforcement.'';
(5) in subsection (h)--
(A) in paragraph (1), by striking ``and (3)'' and
inserting ``, (3), and (4)'';
(B) in paragraph (2), by inserting ``the
computation and payment of arrearages, and the accrual
of interest on the arrearages,'' after ``obligations of
support,''; and
(C) by adding at the end the following:
``(4) Prospective application.--After a court determines
which is the controlling order and issues an order
consolidating arrears, if any, a court shall prospectively
apply the law of the State issuing the controlling order,
including that State's law with respect to interest on arrears,
current and future support, and consolidated arrears.''; and
(6) in subsection (i), by inserting ``and subsection (d)(2)
does not apply'' after ``issuing State''.
SEC. 320. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.
(a) Authority To Make Grants to Indian Tribes.--Section 469B (42
U.S.C. 669b) is amended--
(1) in the section heading, by inserting ``and indian
tribes'' after ``states''; and
(2) in subsection (a), by inserting ``and Indian tribes or
tribal organizations'' after ``to enable States''.
(b) Amount of Grants.--Section 469B(b) (42 U.S.C. 669b(b)) is
amended to read as follows:
``(b) Amount of Grants.--
``(1) Grants to states.--The amount of the grant to be made
to a State under this section for a fiscal year shall be an
amount equal to the lesser of--
``(A) 90 percent of State expenditures during the
fiscal year for activities described in subsection (a);
or
``(B) the allotment of the State under subsection
(c) for the fiscal year.
``(2) Grants to indian tribes.--An Indian tribe or tribal
organization operating a program under section 455 that has
operated such program throughout the preceding fiscal year and
has an application under this section approved by the Secretary
shall receive a grant under this section for a fiscal year in
an amount equal to the allotment of such Indian tribe or tribal
organization under subsection (c)(2) for the fiscal year.''.
(c) Allotments.--Section 469B(c) (42 U.S.C. 669b(c)) is amended to
read as follows:
``(c) Allotments.--
``(1) Allotments to states.--
``(A) In general.--Subject to the subparagraph (C),
the allotment of a State for a fiscal year is the
amount that bears the same ratio to the amount
specified in subparagraph (B) for such fiscal year as
the number of children in the State living with only 1
parent bears to the total number of such children in
all States.
``(B) Amount available for allotment.--For purposes
of subparagraph (A), the amount specified in this
subparagraph is the following amount, reduced by the
total allotments to Indian tribes or tribal
organizations in accordance with paragraph (2):
``(i) $12,000,000 for fiscal year 2004.
``(ii) $14,000,000 for fiscal year 2005.
``(iii) $16,000,000 for fiscal year 2006.
``(iv) $20,000,000 for fiscal year 2007 and
each succeeding fiscal year.
``(C) Minimum state allotment.--The Secretary shall
adjust allotments to States under subparagraph (A) as
necessary to ensure that no State is allotted less
than--
``(i) $120,000 for fiscal year 2004;
``(ii) $140,000 for fiscal year 2005;
``(iii) $160,000 for fiscal year 2006; and
``(iv) $180,000 for fiscal year 2007 and
each succeeding fiscal year.
``(2) Allotments to indian tribes.--
``(A) In general.--Subject to subparagraph (C), the
allotment of an Indian tribe or tribal organization
described in subsection (b)(2) for a fiscal year is an
amount that bears the same ratio to the amount
specified in subparagraph (B) for such fiscal year as
the number of children in the Indian tribe or tribal
organization living with only 1 parent bears to the
total number of such children in all Indian tribes and
tribal organizations eligible to receive grants under
this section for such year.
``(B) Amount available for allotment.--For purposes
of subparagraph (A), the amount available under this
subparagraph is an amount, deducted from the amount
specified in paragraph (1)(B), not to exceed--
``(i) $250,000 for fiscal year 2004;
``(ii) $600,000 for fiscal year 2005;
``(iii) $800,000 for fiscal year 2006; and
``(iv) $1,670,000 for fiscal year 2007 and
each succeeding year.
``(C) Minimum and maximum tribal allotment.--The
Secretary shall adjust allotments to Indian tribes and
tribal organizations under subparagraph (A) as
necessary to ensure that no Indian tribe or tribal
organization is allotted, for a fiscal year, an amount
which is less than $10,000 or more than the minimum
State allotment for such fiscal year.''.
(d) Administration.--Section 469B(e) (42 U.S.C. 669b(e)) is amended
to read as follows:
``(e) Administration.--
``(1) Grants to states.--Each State to which a grant is
made under this section--
``(A) may administer State programs funded with the
grant, directly or through grants to or contracts with
courts, local public agencies, or nonprofit private
entities; and
``(B) shall not be required to operate such
programs on a statewide basis.
``(2) Grants to States or indian tribes.--Each State or
Indian tribe or tribal organization to which a grant is made
under this section shall monitor, evaluate, and report on such
programs in accordance with regulations prescribed by the
Secretary.''.
SEC. 321. TIMING OF CORRECTIVE ACTION YEAR FOR STATE NONCOMPLIANCE WITH
CHILD SUPPORT ENFORCEMENT PROGRAM REQUIREMENTS.
(a) In General.--Section 409(a)(8) (42 U.S.C. 609(a)(8)) is
amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i)(I), by
striking ``in a fiscal year'' and inserting ``for a
fiscal year''; and
(B) in clause (ii)--
(i) in the matter preceding subclause (I),
by striking ``that, with respect to the
succeeding fiscal year--'' and inserting
``that, with respect to the period described in
subparagraph (D)''; and
(ii) in the matter following subclause
(II), by striking ``the end of such succeeding
fiscal year'' and inserting ``the end of the
period described in subparagraph (D)''; and
(2) by adding at the end the following:
``(D) Period described.--Subject to subparagraph
(E), for purposes of this paragraph, the period
described in this subparagraph is the period that
begins with the date on which the Secretary makes a
finding described in subparagraph (A)(i) with respect
to State performance in a fiscal year and ends on
September 30 of the fiscal year following the fiscal
year in which the Secretary makes such a finding.
``(E) No penalty if state corrects noncompliance in
finding year.--The Secretary shall not take a reduction
described in subparagraph (A) with respect to a
noncompliance described in clause (i) of that
subparagraph if the Secretary determines that the State
has corrected the noncompliance in the fiscal year in
which the Secretary makes the finding of the
noncompliance.''.
(b) Effective Date.--The amendments made by subsection (a) shall be
effective with respect to determinations of State compliance for fiscal
year 2002 and succeeding fiscal years.
(c) Special Rule for Fiscal Year 2001.--Notwithstanding any other
provision of law, the Secretary shall not take against amounts
otherwise payable to a State, a reduction described in section
409(a)(8)(A) of the Social Security Act (42 U.S.C. 609(a)(8)(A)) with
respect to a noncompliance described in such section occurring in
fiscal year 2001 if the Secretary determines that the State has
corrected such noncompliance in fiscal year 2002 or 2003.
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)), as amended by section
5 of the Welfare Reform Extension Act of 2003 (Public Law 108-040, 117
Stat. 837) is amended by striking ``2003'' and inserting ``2008''.
SEC. 402. REMOVAL OF COMMONWEALTH OF PUERTO RICO FOSTER CARE FUNDS FROM
LIMITATION ON PAYMENTS.
Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by section
116(b)(2), is amended--
(1) by striking ``Paragraph (1)'' and inserting the
following:
``(A) In general.--Paragraph (1)'';
(2) in subparagraph (A) (as added by paragraph (1)), by
striking ``or 418(a)(4)(B)'' and inserting ``418(a)(4)(B), or,
subject to clause (ii) of subparagraph (B), payments to Puerto
Rico described in clause (i) of that subparagraph'' before the
period; and
(3) by adding at the end the following:
``(B) Certain payments to puerto rico.--
``(i) Payments described.--For purposes of
subparagraph (A), payments described in this
subparagraph are payments made to Puerto Rico
under part E of title IV with respect to the
portion of foster care payments made to Puerto
Rico for fiscal year 2005 or any fiscal year
thereafter that exceed the total amount of such
payments for fiscal year 2002.
``(ii) Limitation.--The total amount of
payments to Puerto Rico described in clause (i)
that are disregarded under subparagraph (A) may
not exceed $6,250,000 for each of fiscal years
2005 through 2008.''.
SEC. 403. 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 2004;
``(ii) at least 40 percent of all such determinations that
are made in fiscal year 2005; and
``(iii) at least 50 percent of all such determinations that
are made in fiscal year 2006 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--TRANSITIONAL MEDICAL ASSISTANCE
SEC. 601. EXTENSION AND SIMPLIFICATION OF THE TRANSITIONAL MEDICAL
ASSISTANCE PROGRAM (TMA).
(a) Option of Continuous Eligibility for 12 Months; Option of
Continuing Coverage for Up To an Additional Year.--
(1) Option of continuous eligibility for 12 months by
making reporting requirements optional.--Section 1925(b) (42
U.S.C. 1396r-6(b)) is amended--
(A) in paragraph (1), by inserting ``, at the
option of a State,'' after ``and which'';
(B) in paragraph (2)(A), by inserting ``Subject to
subparagraph (C):'' after ``(A) Notices.--'';
(C) in paragraph (2)(B), by inserting ``Subject to
subparagraph (C):'' after ``(B) Reporting
requirements.--'';
(D) by adding at the end the following:
``(C) State option to waive notice and reporting
requirements.--A State may waive some or all of the
reporting requirements under clauses (i) and (ii) of
subparagraph (B). Insofar as it waives such a reporting
requirement, the State need not provide for a notice
under subparagraph (A) relating to such requirement.'';
and
(E) in paragraph (3)(A)(iii), by inserting ``the
State has not waived under paragraph (2)(C) the
reporting requirement with respect to such month under
paragraph (2)(B) and if'' after ``6-month period if''.
(2) State option to extend eligibility for low-income
individuals for up to 12 additional months.--Section 1925 (42
U.S.C. 1396r-6) is further amended--
(A) by redesignating subsections (c) through (f) as
subsections (d) through (g), respectively; and
(B) by inserting after subsection (b) the
following:
``(c) State Option of Up To 12 Months of Additional Eligibility.--
``(1) In general.--Notwithstanding any other provision of
this title, each State plan approved under this title may
provide, at the option of the State, that the State shall offer
to each family which received assistance during the entire 6-
month period under subsection (b) and which meets the
applicable requirement of paragraph (2), in the last month of
the period the option of extending coverage under this
subsection for the succeeding period not to exceed 12 months.
``(2) Income restriction.--The option under paragraph (1)
shall not be made available to a family for a succeeding period
unless the State determines that the family's average gross
monthly earnings (less such costs for such child care as is
necessary for the employment of the caretaker relative) as of
the end of the 6-month period under subsection (b) does not
exceed 185 percent of the official poverty line (as defined by
the Office of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable to a family of the size
involved.
``(3) Application of extension rules.--The provisions of
paragraphs (2), (3), (4), and (5) of subsection (b) shall apply
to the extension provided under this subsection in the same
manner as they apply to the extension provided under subsection
(b)(1), except that for purposes of this subsection--
``(A) any reference to a 6-month period under
subsection (b)(1) is deemed a reference to the
extension period provided under paragraph (1) and any
deadlines for any notices or reporting and the premium
payment periods shall be modified to correspond to the
appropriate calendar quarters of coverage provided
under this subsection; and
``(B) any reference to a provision of subsection
(a) or (b) is deemed a reference to the corresponding
provision of subsection (b) or of this subsection,
respectively.''.
(b) State Option To Waive Receipt of Medicaid for 3 of Previous 6
Months To Qualify for TMA.--Section 1925(a)(1) (42 U.S.C. 1396r-
6(a)(1)) is amended by adding at the end the following: ``A State may,
at its option, also apply the previous sentence in the case of a family
that was receiving such aid for fewer than 3 months, or that had
applied for and was eligible for such aid for fewer than 3 months,
during the 6 immediately preceding months described in such
sentence.''.
(c) Extension of Sunset for TMA.--
(1) In general.--Subsection (g) of section 1925 (42 U.S.C.
1396r-6), as so redesignated under subsection (a)(2)(A), and as
amended by section 7 of the Welfare Reform Extension Act of
2003, is further redesignated as subsection (i) and is amended
by striking ``2003'' and inserting ``2008''.
(2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C.
1396a(e)(1)(B)), as so amended, is amended by striking
``September 30, 2003'' and inserting ``the last date (if any)
on which section 1925 applies under subsection (f) of that
section''.
(d) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 (42 U.S.C. 1396r-6), as amended by subsections (a)(2)(A)
and (c)(1), is amended by inserting after subsection (f) the following:
``(g) Additional Provisions.--
``(1) Collection and reporting of participation
information.--Each State shall--
``(A) collect and submit to the Secretary, in a
format specified by the Secretary, information on
average monthly enrollment and average monthly
participation rates for adults and children under this
section; and
``(B) make such information publicly available.
Such information shall be submitted under subparagraph (A) at
the same time and frequency in which other enrollment
information under this title is submitted to the Secretary.
Using such information, the Secretary shall submit to Congress
annual reports concerning such rates.''.
(e) Coordination of Work.--Section 1925(g) (42 U.S.C. 1396r-6(g)),
as added by subsection (d), is amended by adding at the end the
following:
``(2) Coordination with administration for children and
families.--The Administrator of the Centers for Medicare &
Medicaid Services, in carrying out this section, shall work
with the Assistant Secretary for the Administration for
Children and Families to develop guidance or other technical
assistance for States regarding best practices in guaranteeing
access to transitional medical assistance under this
section.''.
(f) Elimination of TMA Requirement for States That Extend Coverage
to Children and Parents Through 185 Percent of Poverty.--
(1) In general.--Section 1925 (42 U.S.C. 1396r-6) is
amended by inserting after subsection (g), as added by
subsection (d), the following:
``(h) Provisions Optional for States That Extend Coverage to
Children and Parents Through 185 Percent of Poverty.--A State may meet
(but is not required to meet) the requirements of subsections (a) and
(b) if it provides for medical assistance under section 1931 to
families (including both children and caretaker relatives) the average
gross monthly earning of which (less such costs for such child care as
is necessary for the employment of a caretaker relative) is at or below
a level that is at least 185 percent of the official poverty line (as
defined by the Office of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus Budget Reconciliation Act
of 1981) applicable to a family of the size involved.''.
(2) Conforming amendments.--Section 1925 (42 U.S.C. 1396r-
6) is amended, in subsections (a)(1) and (b)(1), by inserting
``, but subject to subsection (h),'' after ``Notwithstanding
any other provision of this title,'' each place it appears.
(g) Requirement of Notice for All Families Losing TANF.--Subsection
(a)(2) of section 1925 (42 U.S.C. 1396r-6) is amended by adding at the
end the following flush sentences:
``Each State shall provide, to families whose aid under part A
or E of title IV has terminated but whose eligibility for
medical assistance under this title continues, written notice
of their ongoing eligibility for such medical assistance. If a
State makes a determination that any member of a family whose
aid under part A or E of title IV is being terminated is also
no longer eligible for medical assistance under this title, the
notice of such determination shall be supplemented by a 1-page
notification form describing the different ways in which
individuals and families may qualify for such medical
assistance and explaining that individuals and families do not
have to be receiving aid under part A or E of title IV in order
to qualify for such medical assistance. Such notice shall
further be supplemented by information on how to apply for
child health assistance under the State children's health
insurance program under title XXI and how to apply for medical
assistance under this title.''.
(h) Extending Use of Outstationed Workers To Accept Applications
for Transitional Medical Assistance.--Section 1902(a)(55) (42 U.S.C.
1396a(a)(55)) is amended by inserting ``and under section 1931'' after
``(a)(10)(A)(ii)(IX)''.
(i) Effective Dates.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to calendar
quarters beginning on or after October 1, 2003, without regard
to whether or not final regulations to carry out such
amendments have been promulgated by such date.
(2) Notice.--The amendment made by subsection (g) shall
take effect 6 months after the date of enactment of this Act.
(3) Delay permitted for state plan amendment.--In the case
of a State plan for medical assistance under title XIX of the
Social Security Act which the Secretary of Health and Human
Services determines requires State legislation (other than
legislation appropriating funds) in order for the plan to meet
the additional requirements imposed by the amendments made by
this section, the State plan shall not be regarded as failing
to comply with the requirements of such title solely on the
basis of its failure to meet these additional requirements
before 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 enactment of this
Act. For purposes of the previous sentence, in the case of a
State that has a 2-year legislative session, each year of such
session shall be deemed to be a separate regular session of the
State legislature.
SEC. 602. PROHIBITION AGAINST COVERING CHILDLESS ADULTS WITH SCHIP
FUNDS.
(a) Prohibition on Use of SCHIP Funds.--
(1) In general.--Section 2107 (42 U.S.C. 1397gg) is amended
by adding at the end the following:
``(f) Limitation on Waiver Authority.--Notwithstanding subsection
(e)(2)(A) and section 1115(a), the Secretary may not approve a waiver,
experimental, pilot, or demonstration project, or an amendment to such
a project that has been approved as of the date of enactment of this
subsection, that would allow funds made available under this title to
be used to provide child health assistance or other health benefits
coverage to childless adults. For purposes of the preceding sentence, a
caretaker relative (as such term is defined for purposes of carrying
out section 1931) shall not be considered a childless adult.''.
(2) Conforming amendment.--Section 2105(c)(1) (42 U.S.C.
1397ee(c)(1)) is amended by inserting before the period the
following: ``and may not include coverage of childless adults.
For purposes of the preceding sentence, a caretaker relative
(as such term is defined for purposes of carrying out section
1931) shall not be considered a childless adult.''.
(b) Rule of Construction.--Nothing in this section or the
amendments made by this section shall be construed to--
(1) authorize the waiver of any provision of title XIX or
XXI of the Social Security Act (42 U.S.C. 1396 et seq., 1397aa
et seq.) that is not otherwise authorized to be waived under
such titles or under title XI of such Act (42 U.S.C. 1301 et
seq.) as of the date of enactment of this Act; or
(2) imply congressional approval of any waiver,
experimental, pilot, or demonstration project affecting the
medicaid program under title XIX of the Social Security Act or
the State children's health insurance program under title XXI
of such Act that has been approved as of such date of
enactment.
(c) Effective Date.--This section and the amendments made by this
section take effect on the date of enactment of this Act and apply to
proposals to conduct a waiver, experimental, pilot, or demonstration
project affecting the medicaid program under title XIX of the Social
Security Act or the State children's health insurance program under
title XXI of such Act, and to any proposals to amend such projects,
that are approved or extended on or after such date of enactment.
TITLE VII--EFFECTIVE DATE
SEC. 701. EFFECTIVE DATE.
(a) In General.--Subject to subsection (b) and except as otherwise
provided, the amendments made by this Act take effect on the date of
enactment of this Act.
(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 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.
Calendar No. 305
108th CONGRESS
1st Session
H. R. 4
[Report No. 108-162]
_______________________________________________________________________
AN ACT
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.
_______________________________________________________________________
October 3, 2003
Reported with an amendment