[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1443 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1443
To amend part A of title IV of the Social Security Act to reauthorize
the temporary assistance to needy families program, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 22 (legislative day, July 21), 2003
Mr. Carper (for himself, Mr. Nelson of Nebraska, and Ms. Collins)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To amend part A of title IV of the Social Security Act to reauthorize
the temporary assistance to needy families program, 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 ``Building on Welfare Success Act of
2003''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Findings.
TITLE I--WORK
Sec. 101. Increase in minimum participation rates.
Sec. 102. Increase in number of hours required for work and work-
related activities.
Sec. 103. Treatment of rehabilitative services as an additional work
activity.
Sec. 104. Education and training.
Sec. 105. Authority to establish parents as scholars programs.
Sec. 106. Replacement of caseload reduction credit with employment
credit.
Sec. 107. Elimination of separate work participation rate for 2-parent
families.
Sec. 108. State option to count a caregiver of a family member with a
disability or chronic illness as engaged in
work.
TITLE II--FAMILY PROMOTION AND SUPPORT
Subtitle A--Family Formation Fund and Teen Pregnancy Prevention Grants
Sec. 201. Promotion of family formation.
Sec. 202. Ban on imposition of stricter eligibility criteria for 2-
parent families.
Sec. 203. Teen pregnancy prevention grants.
Sec. 204. Teen pregnancy prevention resource center.
Sec. 205. Establishing national goals to prevent teen pregnancy.
Subtitle B--Child Support Distribution to Families First
Chapter 1--Distribution of Child Support
Sec. 211. Distribution of child support collected by States on behalf
of children receiving certain welfare
benefits.
Chapter 2--Expanded Enforcement
Sec. 221. Decrease in amount of child support arrearage triggering
passport denial.
Sec. 222. Use of tax refund intercept program to collect past-due child
support on behalf of children who are not
minors.
Sec. 223. Garnishment of compensation paid to veterans for service-
connected disabilities in order to enforce
child support obligations.
Sec. 224. Mandatory review and adjustment of child support orders for
families receiving TANF.
Sec. 225. Improved interstate enforcement.
Chapter 3--Miscellaneous
Sec. 231. Report on undistributed child support payments.
Sec. 232. Use of new hire information to assist in administration of
unemployment compensation programs.
Sec. 233. Immigration provisions.
Sec. 234. Increase in payment rate to States for expenditures for
short-term training of staff of certain
child welfare agencies.
Subtitle C--Responsible Fatherhood
Sec. 241. Responsible fatherhood grants.
Sec. 242. National clearinghouse for responsible fatherhood programs.
Sec. 243. Block grants to States to encourage media campaigns.
TITLE III--STATE FLEXIBILITY
Sec. 301. State option to assist legal immigrant families.
Sec. 302. Optional coverage of legal immigrants under the medicaid
program and title XXI.
Sec. 303. 5-year extension and simplification of the transitional
medical assistance program (TMA).
Sec. 304. Definition of assistance.
Sec. 305. Clarification of authority of States to use TANF funds
carried over from prior years to provide
TANF benefits and services.
Sec. 306. Authority to use TANF funds for housing benefits.
TITLE IV--RESOURCES AND ACCOUNTABILITY
Sec. 401. Reauthorization of State family assistance grants.
Sec. 402. Reauthorization of supplemental grants for population
increases.
Sec. 403. Contingency fund.
Sec. 404. Child care.
Sec. 405. Restoration of funding for the social services block grant.
Sec. 406. Competitive grants for public-private partnerships for
educational opportunities for career
advancement.
Sec. 407. Grants to improve access to transportation.
Sec. 408. Pathway to self-sufficiency grants to improve coordination of
assistance for low-income families.
Sec. 409. Transitional jobs programs.
Sec. 410. GAO study on impact of ban on SSI benefits for legal
immigrants.
Sec. 411. Ensuring TANF funds are not used to displace public
employees; application of workplace laws to
welfare recipients.
Sec. 412. Data collection and reporting.
TITLE V--MISCELLANEOUS
Sec. 501. Effective date.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the amendment or repeal shall be
considered to be made to a section or other provision of the Social
Security Act.
SEC. 4. FINDINGS.
Congress makes the following findings:
(1) The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2105)
was a fundamental change to reform the Federal welfare system
to shift it from an entitlement program into a transition
program to help families move from welfare to work and personal
responsibility.
(2) Since enactment of the 1996 welfare reform law, welfare
cash assistance caseloads have dropped dramatically, by
approximately 50 percent, and approximately \2/3\ of welfare
recipients who have left the cash assistance rolls have left
for work.
(3) Another sign of reform and progress is that funding has
shifted from providing monthly cash assistance for parents to
stay at home to over \1/2\ of the funding targeted to pay for
work supports, such as child care, transportation, job
placement, limited job training, or other priorities.
(4) Investments in child care and transportation, and
health care access will help continue this success and move
more people from welfare to work.
(5) While many families have moved from welfare to work,
many families struggle in low-wage jobs and have trouble
getting promised supports such as medicaid, child care, food
stamps, and other supports available under programs intended to
help families.
(6) Child poverty rates in the United States have improved
but they could be lower and they remain high when compared to
the rates of other developed countries. More must be done to
reduce child poverty in our Nation.
(7) State flexibility has been critical to the success of
the 1996 welfare reform law and will be important for States to
provide a broad range of services to address parents on welfare
with barriers to employment. State flexibility also is
important for States to continue successful welfare programs
that have cut the caseload in half since 1996.
(8) Children deserve to be raised in supportive homes,
preferably with 2 loving parents. It is crucial to end policies
that discriminate against serving 2-parent families within the
welfare system. It is also important to support innovative
programs to encourage full participation in child support and
child rearing by noncustodial parents.
(9) Despite declining national and State rates, 35 percent
of girls in the United States get pregnant at least once by age
20, nearly 900,000 girls get pregnant each year, and there are
nearly 500,000 teen births each year. The national teen birth
rate for Hispanic teen girls--the fastest growing group--is
declining the slowest.
(10) If teen birth rates had stayed at the 1991 peak level,
there would have been at least 800,000 additional babies born
to teenagers.
TITLE I--WORK
SEC. 101. INCREASE IN MINIMUM PARTICIPATION RATES.
The table set forth in section 407(a)(1) (42 U.S.C. 607(a)(1)) is
amended--
(1) in the item relating to fiscal year 2002--
(A) by striking ``or thereafter'' and inserting
``2003, or 2004''; and
(B) by striking the period; and
(2) by adding at the end the following:
``2005....................... 55
2006........................ 60
2007........................ 65
2008 or thereafter.......... 70.''.
SEC. 102. INCREASE IN NUMBER OF HOURS REQUIRED FOR WORK AND WORK-
RELATED ACTIVITIES.
Section 407(c)(1) (42 U.S.C. 607(c)(1)), as amended by section
107(3), is amended--
(1) in the matter preceding the table set forth in that
paragraph, by striking ``20 hours'' and inserting ``24 hours'';
and
(2) in the table--
(A) in the item relating to fiscal year 2000, by
striking ``or thereafter'' and inserting ``, 2001,
2002, or 2003'';
(B) by striking the period at the end; and
(C) by adding at the end the following:
2004 or thereafter.......... 32.''.
SEC. 103. TREATMENT OF REHABILITATIVE SERVICES AS AN ADDITIONAL WORK
ACTIVITY.
(a) In General.--Section 407(d) (42 U.S.C. 607(d)) is amended--
(1) in paragraph (11), by striking ``and'' at the end;
(2) in paragraph (12), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(13)(A) rehabilitative services, such as adult basic
education, participation in a program designed to increase
proficiency in the English language, or, in the case of an
individual determined by a qualified medical, mental health, or
social services professional as having a physical or mental
disability, substance abuse problem, or other problem that
requires rehabilitative services, substance abuse treatment,
mental health treatment, or other rehabilitative services,
provided that the provision of such services is a requirement
of the individual's individual responsibility plan under
section 408(b) (not to exceed 3 months out of any 24-month
period, or, if such services for a longer period of time is a
requirement of the individual's plan under section 408(b), up
to 6 months, but only if, during the last 3 months of such 6
months, such services are combined with work or job-readiness
activities); and
``(B) for purposes of counting toward the minimum average
number of hours per week specified in subsection (c)(1),
services described in subparagraph (A), the provision of which
is a requirement of the individual's individual responsibility
plan under section 408(b), until an individual successfully
completes such services (and without regard to the time limits
for the receipt of such services for purposes of subparagraph
(A)).''.
(b) Conforming Amendments.--Section 407(c)(1) (42 U.S.C.
607(c)(1)), as amended by sections 102 and 107(3), is amended by
striking ``or (12)'' and inserting ``(12), or (13)(A)''.
SEC. 104. EDUCATION AND TRAINING.
(a) Increase in Months for Vocational Educational Training To Count
as a Work Activity.--Section 407(d)(8) is amended to read as follows:
``(8) vocational educational training (not to exceed 24
months with respect to any individual);''.
(b) State Option To Treat Participants in Postsecondary Education
Program Established by the State as Engaged in Work.--Section 407(c)(2)
(42 U.S.C. 607(c)(2)) is amended by adding at the end the following:
``(E) State option to treat participants in
postsecondary education program established by the
State as engaged in work.--In the case of a State that
elects to establish a postsecondary education program
under section 404(l), the State may include, for
purposes of determining monthly participation rates
under subsection (b)(1)(B)(i), all families that
include an individual participating in such program
during the month as being engaged in work for the
month, so long as each such individual is in compliance
with the requirements of that program.''.
(c) Elimination of Recipients Completing Secondary School From
Limit on Number of TANF Recipients Participating in Vocational
Educational Training.--
(1) In general.--Section 407(c)(2)(D) (42 U.S.C.
607(c)(2)(D)) is amended to read as follows:
``(D) Limitation on number of persons who may be
treated as engaged in work by reason of participation
in vocational educational training.--For purposes of
determining monthly participation rates under
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 determined to be engaged
in work for the month by reason of participation in
vocational educational training (determined without
regard to individuals described in subparagraph (C) or
participating in a program referred to in subparagraph
(E)).''.
(2) Conforming amendment.--Section 407(c)(2)(C)(ii) (42
U.S.C. 607(c)(2)(C)(ii) is amended by inserting ``including
vocational educational training'' after ``employment''.
SEC. 105. AUTHORITY TO ESTABLISH PARENTS AS SCHOLARS PROGRAMS.
Section 404 (42 U.S.C. 604) is amended by adding at the end the
following:
``(l) Authority To Establish Parents as Scholars Programs.--
``(1) In general.--A State to which a grant is made under
section 403 may use the grant to establish a parents as
scholars program under which an eligible participant may be
provided support services described in paragraph (4) based on
the participant's need in order to complete the program.
``(2) Definition of eligible participant.--
``(A) In general.--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 as a full-
time student in a postsecondary 2- or 4-year
degree program.
``(ii) The individual does not have a
marketable bachelor's degree.
``(iii) The individual does not have the
skills necessary to earn at least 85 percent of
the median wage for the State or locality in
which the individual resides.
``(iv) The individual is--
``(I) pursuing a degree that will
improve the individual's ability to
support the individual's family,
considering the local labor market and
employment opportunities; and
``(II) demonstrating an ability to
succeed in the educational program that
has been chosen.
``(v) The individual participates in a
combination of education, training, study or
worksite experience for an average of not less
than 20 hours per week (including time spent
studying at 150 percent of time spent in
class).
``(vi) After the first 24 months of
participation in the program, the individual--
``(I) works not less than 15 hours
per week (in addition to school and
study time); or
``(II) engages in a combination of
class hours, study hours (including
time spent studying at 150 percent of
time spent in class) and work for a
total of not less than 32 hours per
week.
``(vii) During the period the individual
participates in the program, the individual--
``(I) maintains not less than a 2.0
grade point average;
``(II) attends classes as
scheduled;
``(III) reports to the individual's
caseworker for the program any changes
that might affect the individual's
participation;
``(IV) provides the individual's
caseworker with a copy of any financial
aid award letters; and
``(V) provides the individual's
caseworker with the individual's
semester grades as requested.
``(B) Definition of full-time student.--
``(i) In general.--For purposes of
subparagraph (A)(i), an individual shall be
considered a full-time student if such
individual is taking courses having the number
of hours needed under the requirements of the
educational institution in which the individual
is enrolled, to complete the requirements of a
degree within the usual timeframe of 2 or 4
years, as applicable.
``(ii) Exception.--The State may, for good
cause, modify the number of hours required
under clause (i) to allow additional time, not
to exceed 150 percent of the usual timeframe
required for completion of a 2- or 4-year
degree, for an individual to complete a degree
and be considered a full-time student under a
program established under this subsection.
``(3) Modification of eligible participant requirements.--A
State may, for good cause, modify the requirements for an
eligible participant set forth in paragraph (2)(A).
``(4) Support services described.--For purposes of
paragraph (1), the support services described in this paragraph
include 1 or more of the following during the period the
eligible participant is in the program established under this
subsection:
``(A) Child care for children under age 13 or for
children who are physically or mentally incapable of
caring for themselves.
``(B) Transportation services, including--
``(i) mileage at a set rate per mile or
reimbursement for public or private
transportation;
``(ii) payment for automotive repairs, not
to exceed $500 per academic year on a vehicle
registered to the eligible participant; and
``(iii) reimbursement for vehicle liability
insurance, not to exceed $300, for the eligible
participant's vehicle.
``(C) Payment for books and supplies to the extent
that such items are not covered by grants and loans,
not to exceed $750 per academic year.
``(D) Such other expenses, not to exceed $500, that
the State determines are necessary for the eligible
participant to complete the program established under
this subsection and that are not covered by any other
available support services program.''.
SEC. 106. REPLACEMENT OF CASELOAD REDUCTION CREDIT WITH EMPLOYMENT
CREDIT.
(a) Employment Credit To Reward States in Which Families Leave
Welfare for Work; Additional Credit for Families With Higher
Earnings.--
(1) In general.--Section 407(b) (42 U.S.C. 607(b)), as
amended by section 107(2)(A), is amended by inserting after
paragraph (1) the following:
``(2) Employment credit.--
``(A) In general.--The participation rate
determined under paragraph (1) of a State for a fiscal
year shall be increased by the lesser of--
``(i) the number of percentage points (if
any) of the employment credit for the State for
the fiscal year; or
``(ii) the number of percentage points (if
any) by which the participation rate, so
determined, is less than 100 percent.
``(B) Calculation of credit.--
``(i) In general.--The employment credit
for a State for a fiscal year is an amount
equal to--
``(I) twice the average quarterly
number of families with an adult that
ceased to receive assistance under the
State program funded under this part
during the preceding fiscal year (but
only if the adult did not receive such
assistance for at least 2 months after
the cessation) and that was employed
during the calendar quarter immediately
succeeding the quarter in which the
payments ceased; divided by
``(II) the average monthly number
of families that include an adult who
received cash payments under the State
program funded under this part during
the preceding fiscal year.
``(ii) Special rule for former recipients
with higher earnings.--In calculating the
employment credit for a State for a fiscal
year, a family that, in the quarter in which
the wage was examined, earned at least 50
percent of the average quarterly wage in the
State (determined on the basis of State
unemployment data) shall be considered to be
1.5 families.
``(C) Regulations.--The Secretary may prescribe
such regulations as may be necessary to carry out this
paragraph.
``(D) Reports on amount of credit.--Not later than
6 months after the end of each calendar quarter, the
Secretary shall report to Congress and each State the
amount of the employment credit for the State for the
quarter. The Secretary may carry out this subparagraph
using funds made available under this part for
research.''.
(2) 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).''.
(3) Elimination of caseload reduction credit.--Section
407(b), as amended by paragraph (1) and section 107(2)(A), is
amended by striking paragraph (3) and redesignating paragraphs
(4) and (5) as paragraphs (3) and (4), respectively.
(b) States To Receive Partial Credit Toward Work Participation Rate
for Recipients Engaged in Part-Time Work.--Section 407(c)(1) (42 U.S.C.
607(c)(1)), as amended by section 107(3), is amended by adding at the
end the following flush sentence: ``For purposes of subsection
(b)(1)(B)(i), a family that does not include a recipient who is
participating in work activities for an average of 32 hours per week
during a month but includes a recipient who is participating in such
activities during the month for an average of at least 50 percent of
the minimum average number of hours per week specified for the month in
the table set forth in this subparagraph shall be counted as a
percentage of a family that includes an adult or minor child head of
household who is engaged in work for the month, which percentage shall
be the number of hours for which the recipient participated in such
activities during the month divided by the number of hours of such
participation required of the recipient under this section for the
month.''.
(c) TANF Recipients Who Qualify for Supplemental Security Income
Benefits Removed From Work Participation Rate Calculation for Entire
Year.--Section 407(b)(1)(B)(ii) (42 U.S.C. 607(b)(1)(B)(ii)) is
amended--
(1) in subclause (I), by inserting ``who has not become
eligible for supplemental security income benefits under title
XVI during the fiscal year'' before the semicolon; and
(2) in subclause (II), by inserting ``, and that do not
include an adult or minor child head of household who has
become eligible for supplemental security income benefits under
title XVI during the fiscal year'' before the period.
(d) Effective Date.--The amendments made by this section take
effect on October 1, 2005.
SEC. 107. ELIMINATION OF SEPARATE WORK PARTICIPATION RATE FOR 2-PARENT
FAMILIES.
Section 407 (42 U.S.C. 607) is amended--
(1) in subsection (a)--
(A) in the heading of paragraph (1), by striking
``All families'' and inserting ``In general''; and
(B) by striking paragraph (2);
(2) in subsection (b)--
(A) by striking paragraph (2);
(B) in paragraph (4), by striking ``paragraphs
(1)(B) and (2)(B)'' and inserting ``paragraph (1)(B)'';
and
(C) in paragraph (5), by striking ``rates'' and
inserting ``rate''; and
(3) in subsection (c)(1)--
(A) by striking ``General rules.--'' and all that
follows through ``For purposes'' in subparagraph (A)
and inserting ``General rule.--For purposes''; and
(B) by striking subparagraph (B).
SEC. 108. STATE OPTION TO COUNT A CAREGIVER OF A FAMILY MEMBER WITH A
DISABILITY OR CHRONIC ILLNESS AS ENGAGED IN WORK.
Section 407(c)(2) (42 U.S.C. 607(c)(2)) is amended by adding at the
end the following:
``(E) State option to count a caregiver of a family
member with a disability or chronic illness as engaged
in work.--
``(i) In general.--If a State determines
that a recipient is needed to provide care for
a child with a physical or mental disability or
chronic illness (as defined by the State), or
an adult relative with a physical or mental
disability or chronic illness (as so defined),
the State may deem the recipient to be engaged
in work for purposes of determining the monthly
participation rate under subsection
(b)(1)(B)(i).
``(ii) Inclusion in individual
responsibility plan; annual review.--The need
to provide care described in clause (i) shall
be specified in the recipient's individual
responsibility plan established under section
408(b) and reviewed not less than annually.
``(iii) Engagement in other activity.--
Nothing in clause (i) or (ii) shall be
construed as prohibiting a State from
determining that, taking into consideration the
needs of the child or adult relative with a
physical or mental disability or chronic
illness, an adult recipient who provides care
for such child or adult relative can engage in
some other additional work activity, or another
activity that may lead to work, for all or a
portion of the time required to meet the work
requirement under the State program funded
under this part.''.
TITLE II--FAMILY PROMOTION AND SUPPORT
Subtitle A--Family Formation Fund and Teen Pregnancy Prevention Grants
SEC. 201. PROMOTION OF FAMILY FORMATION.
Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end
the following:
``(6) Family formation grants.--
``(A) Authority.--
``(i) In general.--The Secretary shall
award competitive grants to States, Indian
tribes, nonprofit entities, and charitable or
religious organizations for the cost of
developing and implementing healthy marriage
promotion programs.
``(ii) Application.--A State, Indian tribe,
nonprofit entity, or a charitable or religious
organization desiring a grant under this
paragraph shall submit an application to the
Secretary at such time, in such manner, and
containing such information as the Secretary
may require.
``(B) Permissible activities.--Funds provided under
a grant awarded under this paragraph may be used for
programs or activities that are designed to promote
healthy and stable marriage, including the following:
``(i) Voluntary marriage and relationship
skills education programs for nonmarried
pregnant women and nonmarried expectant
fathers.
``(ii) Voluntary premarital education and
marriage and relationship skills education for
engaged couples and for couples interested in
marriage.
``(iii) Voluntary marriage enhancement and
marriage and relationship skills education
programs for married couples including
mediation services and couples counseling.
``(iv) Teen pregnancy prevention programs,
including the prevention of repeat pregnancies.
``(v) Domestic violence prevention programs
for training and technical assistance
activities to be provided to other entities
funded under this subparagraph.
``(C) Grants selection criteria.--
``(i) In general.--The Secretary shall
promulgate for public comment criteria for
selecting grant proposals to be funded under
subparagraph (B). Such criteria shall--
``(I) set forth a grant review
process that includes independent
experts, including individuals with
expertise in programs for low-income
families, programs addressing teen
pregnancy prevention, programs
addressing teen parenting or youth
development, programs addressing
domestic violence, program research,
and program administration, and shall
be designed to ensure that an
individual shall not be involved in the
grant selection process if such
involvement would pose a conflict of
interest for the individual;
``(II) specify grantee
qualifications and requirements,
including a requirement that grant
applications provide financial
information, including a copy of the
applicant's most recent audit report,
and shall require grantees to agree to
maintain such records, make such
reports, and cooperate with such
reviews or audits as the Secretary may
find necessary for purposes of
oversight of project activities and
expenditures;
``(III) require grant proposals to
identify community support and include
a plan to collaborate with appropriate
public and community-based
organizations and service providers;
and
``(IV) require grant proposals to
describe the methods the applicant
plans to use to recruit project
participants and the applicant's plan
to evaluate project implementation,
operation, and outcomes, and to
demonstrate that there is a sufficient
number of potential participants to
conduct the evaluation.
``(ii) Oversight of evaluations.--The
Secretary shall ensure that there is an
appropriate evaluation for all grant proposals
funded under subparagraph (B), including use of
random assignment in appropriate instances.
``(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there is appropriated for making grants
under this paragraph--
``(i) for fiscal year 2004, $75,000,000;
``(ii) for fiscal year 2005, $100,000,000;
``(iii) for fiscal year 2006, $150,000,000;
``(iv) for fiscal year 2007, $175,000,000;
and
``(v) for fiscal year 2008,
$200,000,000.''.
SEC. 202. BAN ON IMPOSITION OF STRICTER ELIGIBILITY CRITERIA FOR 2-
PARENT FAMILIES.
(a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)) is amended by
adding at the end the following:
``(12) Ban on imposition of stricter eligibility criteria
for 2-parent families.--In determining the eligibility of a 2-
parent family for assistance under a State program funded under
this part, the State shall not impose a requirement that does
not apply in determining the eligibility of a 1-parent family
for such assistance.''.
(b) Penalty.--Section 409(a) (42 U.S.C. 609(a)) is amended by
adding at the end the following:
``(15) Penalty for imposition of stricter eligibility
criteria for 2-parent families.--
``(A) In general.--If the Secretary determines that
a State to which a grant is made under section 403 for
a fiscal year has violated section 408(a)(12) during
the fiscal year, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount equal
to 5 percent of the State family assistance grant.
``(B) Penalty based on severity of failure.--The
Secretary shall impose reductions under subparagraph
(A) with respect to a fiscal year based on the degree
of noncompliance.''.
SEC. 203. TEEN PREGNANCY PREVENTION GRANTS.
Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read as
follows:
``(2) Grants to prevent teen pregnancy.--
``(A) Submission of plan.--
``(i) In general.--Each State that submits
a plan that meets the requirements of clause
(ii) shall be entitled to receive from the
Secretary a teen pregnancy prevention grant in
the amount determined under subparagraph (B)
for each of fiscal years 2004 through 2008.
``(ii) Plan requirements.--A plan meets the
requirements of this clause if the plan--
``(I) describes the State's
numerical goal for reducing teen
pregnancy and teen births;
``(II) identifies the strategies to
be used to achieve such goal; and
``(III) describes the efforts the
State will make to involve young men,
as well as young women, in delaying
pregnancy and parenting.
``(iii) Set-aside for grants to indian
tribes.--Not less than an amount equal to 1.5
percent of the amount appropriated under
subparagraph (G) for a fiscal year shall be
used for the purpose of awarding grants to
Indian tribes under this paragraph in such manner, and subject to such
requirements, as the Secretary, in consultation with such tribes,
determines appropriate.
``(B) Grant amount.--
``(i) In general.--The Secretary shall
allot to each State with a plan approved under
subparagraph (A) an amount equal to--
``(I) with respect to fiscal year
2004, the amount that bears the same
ratio to the amount of funds
appropriated under subparagraph (G) for
such fiscal year as the proportion of
births in the State to teens under age
20 bears to the number of such births
in all States; and
``(II) with respect to each of
fiscal years 2005 through 2008, the
amount that bears the same ratio to 50
percent of the amount of funds
appropriated under subparagraph (G) for
each such fiscal year as the proportion
of births in the State to teens under
age 20 bears to the number of such
births in all States.
``(ii) Incentive funds.--In addition to the
amount determined for a State under clause
(i)(II), in the case of a State that is a high
achieving State (as defined in clause (iii)),
the Secretary shall allot to such high
achieving State with respect to each of fiscal
years 2005 through 2008, the amount that bears
the same ratio to 50 percent of the amount of
funds appropriated under subparagraph (G) for
each such fiscal year as the proportion of
teens under age 20 in the high achieving State
bears to the number of such teens in all such
high achieving States.
``(iii) Definition of high achieving
state.--In this paragraph, the term `high
achieving State' means a State that has
achieved an annual decline in the teen birth
rate for the State as compared to the preceding
year (or the most recent year for which data is
available) of at least 2.5 percent.
``(iv) Determination of teen birth rates.--
For purposes of this subparagraph, the teen
birth rate for a State shall be determined on
the basis of the birth rate per 1,000 women,
ages 15 through 19, who reside in the State.
``(C) Use of funds.--
``(i) In general.--A State shall use funds
provided under a grant made under this
paragraph to implement teen pregnancy
prevention strategies that--
``(I) are abstinence-first, as
defined in clause (ii)(I);
``(II) replicate or substantially
incorporate the elements of 1 or more
teen pregnancy prevention programs,
including certain youth development
programs and service learning programs,
that have been proven effective (on the
basis of rigorous scientific research
as defined in clause (ii)(III));
``(III) delay or decrease sexual
activity, increase contraceptive use
among sexually active teens, or reduce
teenage pregnancies without increasing
risky behaviors; and
``(IV) incorporate outreach or
media programs.
``(ii) Design and implementation
flexibility.--States and Indian tribes
receiving a grant under this paragraph shall
have flexibility to determine how to use funds
made available under the grant to design and
implement the teen pregnancy prevention
strategies described in clause (i).
``(iii) Definitions.--In this paragraph:
``(I) Abstinence-first.--The term
`abstinence-first' means a strategy
that strongly emphasizes abstinence as
the best and only certain way to avoid
pregnancy and sexually transmitted
infections and that discusses the
scientifically proven effectiveness,
benefits, and limitations of
contraception and other approaches in a
manner that is medically accurate, as
defined in subclause (II).
``(II) Medically accurate.--The
term `medically accurate' means
information that is supported by
research recognized as accurate and
objective by leading medical,
psychological, psychiatric, or public
health organizations and agencies and,
where relevant, is published in a peer-
reviewed journal (as defined by the
American Medical Association).
``(III) Rigorous scientific
research.--The term `rigorous
scientific research' means research
that typically uses randomized control
trials and other similar strong
experimental designs.
``(D) Subgrant or contract recipients.--A State to
which a grant is made under this paragraph for a fiscal
year may award subgrants or contracts to--
``(i) State or local nonprofit coalitions
working to prevent teenage pregnancy;
``(ii) State, local, or tribal agencies;
``(iii) schools;
``(iv) entities that provide after school
programs;
``(v) nonprofit community or faith-based
organizations; or
``(vi) other organizations designated by
the State.
``(E) Supplementation of funds.--A State to which a
grant is made under this paragraph for a fiscal year
shall use funds provided under the grant to supplement
and not supplant funds that would otherwise be
available to the State for preventing teen pregnancy.
``(F) Data reporting.--A State to which a grant is
made under this paragraph for a fiscal year shall
cooperate with the Secretary to collect information and
report on outcomes of programs funded under the grant,
as specified by the Secretary.
``(G) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for making grants
under this paragraph--
``(i) for fiscal year 2004, $50,000,000;
and
``(ii) for each of fiscal years 2005
through 2008, $100,000,000.''.
SEC. 204. TEEN PREGNANCY PREVENTION RESOURCE CENTER.
(a) Authority To Establish.--
(1) In general.--The Secretary of Health and Human Services
(in this section referred to as the ``Secretary'') shall make a
grant to a nationally recognized, nonpartisan, nonprofit
organization that meets the requirements described in paragraph
(2) to establish and operate a national teen pregnancy
prevention resource center (in this section referred to as the
``Resource Center'') to carry out the purposes and activities
described in subsection (b).
(2) Contractor requirements.--The requirements described in
this paragraph are the following:
(A) The organization has at least 7 years of
experience in working with diverse sectors of society
to reduce teen pregnancy.
(B) The organization has a demonstrated ability to
work with and provide assistance to a broad range of
individuals and entities, including teens, parents, the
entertainment and news media, State, tribal, and local
organizations, networks of teen pregnancy prevention
practitioners, businesses, faith and community leaders,
and researchers.
(C) The organization is research-based and has
capabilities in scientific analysis and evaluation.
(D) The organization has comprehensive knowledge
and data about teen pregnancy prevention strategies.
(E) The organization has experience carrying out
activities similar to the activities described in
subsection (b)(2).
(b) Purposes and Activities.--
(1) Purposes.--The purposes of the Resource Center are to--
(A) provide information and technical assistance to
States, Indian tribes, local communities, and other
public or private organizations seeking to reduce rates
of teen pregnancy;
(B) support parents in their essential role in
preventing teen pregnancy by equipping parents with
information and resources to promote and strengthen
communication with their children; and
(C) assist the entertainment media industry by
providing information and helping that industry develop
content and messages for teens and adults that can help
prevent teen pregnancy.
(2) Activities.--The Resource Center shall carry out the
purposes described in paragraph (1) through the following
activities:
(A) Synthesizing and disseminating research and
information regarding effective and promising practices
to prevent teen pregnancy.
(B) Developing and providing information on how to
design and implement effective programs to prevent teen
pregnancy.
(C) Helping States, local communities, and other
organizations increase their knowledge of existing
resources that can be used to advance teen pregnancy
prevention efforts, build their capacity to access such
resources, and develop partnerships with other programs
and funding streams.
(D) Linking organizations working to reduce teen
pregnancy with experts and peer groups, including the
creation of technical assistance networks.
(E) Providing consultation and resources on how to
reduce teen pregnancy through a broad array of
strategies, including enlisting the help of various
sectors of society such as parents, other adults (such
as coaches, teachers, and mentors), community or faith-
based groups, the entertainment and news media,
business, and teens themselves.
(F) Assisting organizations seeking to reduce teen
pregnancy in their efforts to work with all forms of
media and to reach a variety of audiences (such as
teens, parents, and ethnically diverse groups) to
communicate effective messages about preventing teen
pregnancy, including messages that focus on abstinence,
responsible behavior, family communication,
relationships, and values.
(G) Providing resources for parents and other
adults that help to foster strong connections with
children, which has been proven effective in reducing
sexual activity and teen pregnancy, including online
access to research, parent guides, tips, and alerts
about upcoming opportunities to use the entertainment
media as a discussion starter.
(H) Working directly with individuals and
organizations in the entertainment industry to provide
consultation and serve as a source of factual
information on issues related to teen pregnancy
prevention.
(c) Media Campaigns.--
(1) In general.--The organization operating the Resource
Center may use a portion of the funds appropriated to carry out
this section to develop and implement media campaigns directly
or through grants, contracts, or cooperative agreements with
other entities. Such campaigns may include the production and
distribution of printed materials and messages for print media,
television and radio broadcast media, the Internet, or such
other media as may be appropriate for reaching large numbers of
young people, parents, and community leaders.
(2) Matching.--To the extent possible, funds used to
develop and implement media campaigns under this subsection
should be matched with non-Federal resources, including in-kind
contributions, from public and private entities.
(d) Collaboration With Other Organizations.--The organization
operating the Resource Center shall collaborate with other
organizations that have expertise and interest in teen pregnancy
prevention and that can help to reach out to diverse audiences.
(e) Evaluation.--
(1) Reservation and availability of funds.--Of the amount
appropriated under subsection (f) for fiscal year 2004,
$5,000,000 shall be reserved for use by the Secretary of Health
and Human Services to prepare an interim and final report
summarizing and synthesizing outcomes and lessons learned from
the activities funded under this section. Funds reserved under
the preceding sentence shall remain available for expenditure
through fiscal year 2008.
(2) Required information.--Each report required under
paragraph (1) shall include--
(A) a rigorous scientific evaluation of at least 3
such activities that are selected to represent a
diversity of strategies; and
(B) an assessment of the ability to replicate and
expand activities that have proven effective on a
smaller scale.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Health and Human Services to carry out
this section, $10,000,000 for each of fiscal years 2004 through 2008.
SEC. 205. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.
Section 905 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (42 U.S.C. 710 note) is amended to read as
follows:
``SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.
``(a) In General.--Not later than January 1, 2004, the Secretary of
Health and Human Services shall establish a national goal of reducing
teen pregnancy by at least 25 percent by January 1, 2014.
``(b) Report.--Not later than June 30, 2004, and annually
thereafter, the Secretary of Health and Human Services shall report to
Congress with respect to the progress that has been made in meeting the
national goal established under subsection (a).''.
Subtitle B--Child Support Distribution to Families First
CHAPTER 1--DISTRIBUTION OF CHILD SUPPORT
SEC. 211. 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 (e) and (f), 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 434(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 use the grant made to the State under section 403(a) to pay
the amount, or to have the payment considered a qualified State
expenditure for purposes of section 409(a)(7), but not both.
``(7) State option to pass through additional support with
federal financial participation.--
``(A) In general.--Notwithstanding paragraphs (1),
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 is not a recipient of
assistance under the State program funded under part A,
to the extent that the State pays the amount to the
family.
``(B) Recipients of tanf for less than 5 years.--
``(i) In general.--Notwithstanding
paragraphs (1), 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 is a recipient of assistance under
the State program funded under part A and, if
the family includes an adult, that has received
the assistance for not more than 5 years after
the date of enactment of this paragraph, to the
extent that--
``(I) the State pays the amount to
the family; and
``(II) subject to clause (ii), the
amount is disregarded in determining
the amount and type of the assistance
provided to the family.
``(ii) Limitation.--Of the amount
disregarded as described in clause (i)(II), the
maximum amount that may be taken into account
for purposes of clause (i) shall not exceed
$400 per month, except that, in the case of a
family that includes 2 or more children, the
State may elect to increase the maximum amount
to not more than $600 per month.
``(8) States with demonstration waivers.--Notwithstanding
the preceding paragraphs, a State with a waiver under section
1115, effective on or before October 1, 1997, the terms of
which allow pass-through of child support payments, may pass
through payments in accordance with such terms with respect to
families subject to the waiver.''.
(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 subsection (b)(1)(A) of section 211 of
the Building on Welfare Success Act of 2003 shall not apply
with respect to the State, notwithstanding subsection (f)(1) of
such section 211.''.
(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), shall establish the procedures to
be used to make the estimate described in section
457(a)(6) of such Act.
(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) Ban on Recovery of Medicaid Costs for Certain Births.--Section
454 (42 U.S.C. 654), as amended by subsection (b)(1)(B), is amended--
(1) by striking ``and'' at the end of paragraph (33);
(2) by striking the period at the end of paragraph (34) and
inserting ``; and''; and
(3) by inserting after paragraph (34) the following:
``(35) provide that the State shall not use the State
program operated under this part to collect any amount owed to
the State by reason of costs incurred under the State plan
approved under title XIX for the birth of a child for whom
support rights have been assigned pursuant to section
408(a)(3), 471(a)(17), or 1912.''.
(d) State Option To Discontinue Pre-1997 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 that are assigned to a State
under part A 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).''.
(e) Conforming Amendments.--
(1) Section 404(a) (42 U.S.C. 604(a)) is amended--
(A) by striking ``or'' at the end of paragraph (1);
(B) by striking the period at the end of paragraph
(2) and inserting ``; or''; and
(C) by adding at the end the following:
``(3) to fund payment of an amount 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 use the
grant to fund the payment.''.
(2) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) 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:
``(V) 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.''.
(3) Tax offset authority.--Section 6402(c) of the Internal
Revenue Code of 1986 (relating to authority to make credits or
refunds) is amended--
(A) in the first sentence, by striking ``the Social
Security Act'' the second place it appears and
inserting ``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 before
any other reductions allowed by law.''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on October 1, 2004, 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, on and after such date as the State may select that is
after the date of enactment of this Act and before October 1,
2004.
CHAPTER 2--EXPANDED ENFORCEMENT
SEC. 221. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING
PASSPORT DENIAL.
Section 452(k) (42 U.S.C. 652(k)) is amended by striking ``$5,000''
and inserting ``$2,500''.
SEC. 222. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD
SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.
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).
SEC. 223. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT
OBLIGATIONS.
Section 459(h) (42 U.S.C. 659(h)) is amended--
(1) in paragraph (1)(A)(ii)--
(A) in subclause (IV), by striking ``or'' after the
semicolon;
(B) in subclause (V), by inserting ``or'' after the
semicolon; and
(C) by adding at the end the following:
``(VI) subject to paragraph (3),
other than periodic benefits or
payments described in subclause (V), by
the Secretary of Veterans Affairs as
compensation for a service-connected
disability paid by the Secretary to a
former member of the Armed Forces;'';
(2) in paragraph (1)(B)(iii), by striking ``subparagraph
(A)(ii)(V)'' and inserting ``subclauses (V) and (VI) of
subparagraph (A)(ii)''; and
(3) by adding at the end the following:
``(3) Limitations with respect to compensation paid to
veterans for service-connected disabilities.--
``(A) Alimony and child support.--Compensation
described in paragraph (1)(A)(ii)(VI) shall not be
subject to withholding pursuant to this section--
``(i) for payment of alimony; or
``(ii) for payment of child support if the
individual is fewer than 60 days in arrears in
payment of the support.
``(B) Limitation.--Not more than 50 percent of any
payment of compensation described in subparagraph (A)
may be withheld pursuant to this section.''.
SEC. 224. 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 in the matter preceding subclause (I)--
(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. 225. IMPROVED INTERSTATE ENFORCEMENT.
(a) Adoption of Uniform State Laws.--Section 466(f) (42 U.S.C.
666(f)) is amended--
(1) by striking ``January 1, 1998'' and inserting ``October
1, 2004''; and
(2) by striking ``August 22, 1996'' and inserting ``January
1, 2002''.
(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 consistently 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 Child Support Orders'' and inserting
``Determination of Controlling Child Support Order'';
(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''.
CHAPTER 3--MISCELLANEOUS
SEC. 231. 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 due to a change in address.
The report shall include an estimate of the total amount of such
undistributed child support and the average length of time it takes for
such child support to be distributed. 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. 232. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF
UNEMPLOYMENT COMPENSATION PROGRAMS.
Section 453(j) (42 U.S.C. 653(j)) is amended by adding at the end
the following:
``(7) Information comparisons and disclosure to assist in
administration of unemployment compensation programs.--
``(A) In general.--If a State agency responsible
for the administration of an unemployment compensation
program under Federal or State law transmits to the
Secretary the name and social security account number
of an individual, the Secretary shall, if the
information in the National Directory of New Hires
indicates that the individual may be employed, disclose
to the State agency the name, address, and employer
identification number of any putative employer of the
individual, subject to this paragraph.
``(B) Condition on disclosure.--The Secretary shall
make a disclosure under subparagraph (A) only to the
extent that the Secretary determines that the
disclosure would not interfere with the effective
operation of the program under this part.
``(C) Use of information.--A State agency may use
information provided under this paragraph only for
purposes of administering a program referred to in
subparagraph (A).''.
SEC. 233. IMMIGRATION PROVISIONS.
(a) Nonimmigrant Aliens Ineligible To Receive Visas and Excluded
From Admission for Nonpayment of Child Support.--
(1) In general.--Section 212(a)(10) of the Immigration and
Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at
the end the following:
``(F) Nonpayment of child support.--
``(i) In general.--Any nonimmigrant alien
is inadmissible who is legally obligated under
a judgment, decree, or order to pay child
support (as defined in section 459(i)(2) of the
Social Security Act), and whose failure to pay
such child support has resulted in an arrearage
exceeding $2,500, until child support payments
under the judgment, decree, or order are
satisfied or the nonimmigrant alien is in
compliance with an approved payment agreement.
``(ii) Waiver authorized.--The Secretary of
Homeland Security may waive the application of
clause (i) in the case of an alien, if the
Secretary--
``(I) has received a request for
the waiver from the court or
administrative agency having
jurisdiction over the judgment, decree,
or order obligating the alien to pay
child support that is referred to in
such clause; or
``(II) determines that there are
prevailing humanitarian or public
interest concerns.''.
(2) Effective date.--The amendment made by this subsection
shall take effect 180 days after the date of enactment of this
Act.
(b) Authorization To Serve Legal Process in Child Support Cases on
Certain Arriving Aliens.--
(1) In general.--Section 235(d) of the Immigration and
Nationality Act (8 U.S.C. 1225(d)) is amended by adding at the
end the following:
``(5) Authority to serve process in child support cases.--
``(A) In general.--To the extent consistent with
State law, immigration officers are authorized to serve
on any alien who is an applicant for admission to the
United States legal process with respect to any action
to enforce or establish a legal obligation of an
individual to pay child support (as defined in section
459(i)(2) of the Social Security Act).
``(B) Definition.--For purposes of subparagraph
(A), the term `legal process' means any writ, order,
summons, or other similar process, which is issued by--
``(i) a court or an administrative agency
of competent jurisdiction in any State,
territory, or possession of the United States;
or
``(ii) an authorized official pursuant to
an order of such a court or agency or pursuant
to State or local law.''.
(2) Effective date.--The amendment made by this subsection
shall apply to aliens applying for admission to the United
States on or after 180 days after the date of enactment of this
Act.
(c) Authorization To Share Child Support Enforcement Information To
Enforce Immigration and Naturalization Law.--
(1) Secretarial responsibility.--Section 452 (42 U.S.C.
652) is amended by adding at the end the following:
``(m) If the Secretary receives a certification by a State agency,
in accordance with section 454(36), that an individual who is a
nonimmigrant alien (as defined in section 101(a)(15) of the Immigration
and Nationality Act) owes arrearages of child support in an amount
exceeding $2,500, the Secretary may, at the request of the State
agency, the Secretary of State, or the Secretary of Homeland Security,
or on the Secretary's own initiative, provide the certification to the
Secretary of State and the Secretary of Homeland Security in order to
enable them to carry out their responsibilities under sections
212(a)(10) and 235(d) of such Act.''.
(2) State agency responsibility.--Section 454 (42 U.S.C.
654), as amended by section 211(c), is amended--
(A) by striking ``and'' at the end of paragraph
(34);
(B) by striking the period at the end of paragraph
(35) and inserting ``; and''; and
(C) by inserting after paragraph (35) the
following:
``(36) provide that the State agency will have in effect a
procedure for certifying to the Secretary, in such format and
accompanied by such supporting documentation as the Secretary
may require, determinations that nonimmigrant aliens owe
arrearages of child support in an amount exceeding $2,500.''.
SEC. 234. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR
SHORT-TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE
AGENCIES.
Section 474(a)(3)(B) of the Social Security Act (42 U.S.C.
674(a)(3)(B)) is amended by inserting ``, or State-licensed or State-
approved child welfare agencies providing services,'' after ``child
care institutions''.
Subtitle C--Responsible Fatherhood
SEC. 241. RESPONSIBLE FATHERHOOD GRANTS.
Part D of title IV of the Social Security Act (42 U.S.C. 651 et
seq.) is amended by adding at the end the following:
``SEC. 469C. 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 types of projects
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
(4).
``(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 this
part and is described in
section 454(4)(A)(i); 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
programs or activities funded under the
grant will be provided with information
regarding the prevention of domestic
violence and that the State will
consult with representatives of State
and local domestic violence centers.
``(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
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 such activities 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 such activities 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 such activities 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) 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 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 States under subparagraph (A).
``(5) 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.
``(6) 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.
``(7) 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 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 (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 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 this
part and is described in
section 454(4)(A)(i); 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 will consult with
representatives of State and local
domestic violence centers.
``(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) 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).
``(4) 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. 242. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD PROGRAMS.
Section 469C of the Social Security Act, as added by section 241,
is amended by adding at the end the following:
``(c) Media Campaign National Clearinghouse for Responsible
Fatherhood.--
``(1) Media campaign and national clearinghouse.--
``(A) In general.--From any funds appropriated
under paragraph (3), the Secretary shall contract with
a nationally recognized, nonprofit fatherhood promotion
organization described in paragraph (2) to--
``(i) develop, promote, and distribute to
interested States, local governments, public
agencies, and private entities a media campaign
that encourages the appropriate involvement of
both parents in the life of any child of the
parents, with a priority for programs that
specifically address the issue of responsible
fatherhood; and
``(ii) 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
subsection (d).
``(B) Coordination with domestic violence
programs.--The Secretary shall ensure that the
nationally recognized nonprofit fatherhood promotion
organization with a contract under subparagraph (A)
coordinates the media campaign developed under clause
(i) of such paragraph and the national clearinghouse
developed under clause (ii) of such paragraph with a
national, State, or local domestic violence program.
``(2) Nationally recognized, nonprofit fatherhood promotion
organization described.--The nationally recognized, nonprofit
fatherhood promotion organization described in this paragraph
is an organization that has at least 4 years of experience in--
``(A) 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
``(B) 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.
``(3) Authorization of appropriations.--There is authorized
to be appropriated $5,000,000 for each of fiscal years 2004
through 2008 to carry out this subsection.''.
SEC. 243. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.
(a) In General.--Section 469C of the Social Security Act, as added
by section 241 and amended by section 242, is amended by adding at the
end the following:
``(d) Block Grants to States for Media Campaigns Promoting
Responsible Fatherhood.--
``(1) Definitions.--In this subsection:
``(A) 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.
``(B) Child at risk.--The term `child at risk'
means each young child whose family income does not
exceed the poverty line.
``(C) Poverty line.--The term `poverty line' has
the meaning given such term in section 673(2) of the
Omnibus Budget Reconciliation Act of 1981 (including
any revision required by such section) that is
applicable to a family of the size involved.
``(D) 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.
``(E) 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.
``(F) Young child.--The term `young child' means an
individual under age 5.
``(2) State certifications.--Not later than October 1 of
each of fiscal year for which a State desires to receive an
allotment under this subsection, the chief executive officer of
the State shall submit to the Secretary a certification that
the State shall--
``(A) use such funds to promote the formation and
maintenance of married 2-parent families, strengthen
fragile families, and promote responsible fatherhood
through media campaigns conducted in accordance with
the requirements of paragraph (4);
``(B) return any unused funds to the Secretary in
accordance with the reconciliation process under
paragraph (5); and
``(C) comply with the reporting requirements under
paragraph (6).
``(3) Payments to states.--For each of fiscal years 2004
through 2008, the Secretary shall pay to each State that
submits a certification under paragraph (2), from any funds
appropriated under paragraph (8), for the fiscal year an amount
equal to the amount of the allotment determined for the fiscal
year under paragraph (7).
``(4) Establishment of media campaigns.--Each State
receiving an allotment under this subsection for a fiscal year
shall use the allotment to conduct media campaigns as follows:
``(A) Conduct of media campaigns.--
``(i) 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 married 2-
parent families, strengthen fragile
families, and promote responsible
fatherhood.
``(II) Air-time challenge
program.--At the option of the State,
to establish an air-time 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.
``(ii) 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
married 2-parent families, strengthen fragile
families, and promote responsible fatherhood.
``(B) Administration of media campaigns.--A State
may administer media campaigns funded under this
subsection directly or through grants, contracts, or
cooperative agreements with public agencies, local
governments, or private entities, including charitable
and faith-based organizations.
``(C) Consultation with domestic violence
assistance centers.--In developing broadcast and
printed advertisements to be used in the media
campaigns conducted under subparagraph (A), the State
or other entity administering the campaign shall
consult with representatives of State and local
domestic violence centers.
``(D) Non-federal contributions.--In this
subsection, 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.
``(5) Reconciliation process.--
``(A) 3-year availability of amounts allotted.--
Each State that receives an allotment under this
subsection 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.
``(B) 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
subsection any amount that is--
``(i) returned to the Secretary by States
under subparagraph (A); or
``(ii) not allotted to a State under this
section because the State did not submit a
certification under paragraph (2) by October 1
of a fiscal year.
``(6) Reporting requirements.--
``(A) Monitoring and evaluation.--Each State
receiving an allotment under this subsection for a
fiscal year shall monitor and evaluate the media
campaigns conducted using funds made available under
this subsection in such manner as the Secretary, in
consultation with the States, determines appropriate.
``(B) Annual reports.--Not less frequently than
annually, each State receiving an allotment under this
subsection for a fiscal year shall submit to the
Secretary reports on the media campaigns conducted
under this subsection at such time, in such manner, and
containing such information as the Secretary may
require.
``(7) Amount of allotments.--
``(A) In general.--Except as provided in
subparagraph (B), of the amount appropriated for the
purpose of making allotments under this subsection for
a fiscal year, the Secretary shall allot to each State
that submits a certification under paragraph (2) for
the fiscal year an amount equal to the sum of--
``(i) 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 recent March
supplement to the Current Population Survey of
the Bureau of the Census before the beginning
of the calendar year in which such fiscal year
begins) as bears to the number of such children
in all States; and
``(ii) 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 recent March
supplement to the Current Population Survey of
the Bureau of the Census before the beginning
of the calendar year in which such fiscal year
begins) bears to the number of such children in
all States.
``(B) Minimum allotments.--No allotment for a
fiscal year under this subsection shall be less than--
``(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, 1
percent of the amount appropriated for the
fiscal year under paragraph (8); 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, 0.5 percent of
such amount.
``(C) Pro rata reductions.--The Secretary shall
make such pro rata reductions to the allotments
determined under subparagraph (A) as are necessary to
comply with the requirements of subparagraph (B).
``(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 allotments to States under
this subsection.''.
(b) Evaluation.--
(1) In general.--The Secretary of Health and Human Services
shall conduct an evaluation of the impact of the media
campaigns funded under section 469C(d) of the Social Security
Act, as added by subsection (a).
(2) Report.--Not later than December 31, 2006, the
Secretary of Health and Human Services shall report to Congress
the results of the evaluation under paragraph (1).
(3) Funding.--Of the amount appropriated in accordance with
section 469C(d)(8) of the Social Security Act (as added by
subsection (a)) 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.
TITLE III--STATE FLEXIBILITY
SEC. 301. STATE OPTION TO ASSIST LEGAL IMMIGRANT FAMILIES.
(a) State Option.--
(1) In general.--Section 403(c)(2) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1613(c)(2)) is amended by adding at the end the
following:
``(M) At State option, assistance, benefits, or
services under a State program funded under part A of
title IV of the Social Security Act (42 U.S.C. 601 et
seq.).''.
(2) Conforming amendment.--Section 408(e) (42 U.S.C.
608(e)) is amended to read as follows:
``(e) Eligibility of Certain Aliens.--Except as provided in
subsection (f), at State option, a State may provide assistance,
benefits, or services to a qualified alien (as defined in subsections
(b) and (c) of section 431 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641)) under the State
program funded under this part in the same manner and to the same
extent as a citizen of the United States would be provided such
assistance, benefits, or services.''.
(b) Attribution of Sponsor's Income and Resources to Aliens.--
(1) In general.--Section 408(f) (42 U.S.C. 608(f)) is
amended--
(A) in the heading, by striking ``Non-213A'' and
inserting ``Sponsored'';
(B) by striking ``The following'' and all that
follows through the colon and inserting ``The following
rules shall apply in determining whether an alien
sponsored under section 213A of the Immigration and
Nationality Act (and, at the option of the State, a
non-213A alien) is eligible for cash assistance under
the State program funded under this part, or in
determining the amount of such assistance to be
provided to a sponsored alien:'';
(C) in paragraph (1)--
(i) in the matter preceding subparagraph
(A), by striking ``non-213A'' and inserting
``sponsored'';
(ii) in subparagraph (B), by inserting
``(or, a greater amount as determined by the
State)'' before the period; and
(iii) in the heading of subparagraph (C),
by striking ``non-213a'' and inserting
``sponsored'';
(D) by striking paragraph (5) and inserting the
following:
``(5) Exceptions.--This subsection shall not apply to an
alien who is--
``(A) a minor child if the sponsor of the alien or
any spouse of the sponsor is a parent of the alien
child; or
``(B) described in subsection (e) or (f) of section
421 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1631).''; and
(E) by adding at the end the following:
``(7) Inapplicability to family members who are not
sponsored aliens.--Income and resources of a sponsor which are
deemed under this subsection to be the income and resources of
any alien individual in a family shall not be considered in
determining the need of other family members except to the
extent such income or resources are actually available to such
other family members.
``(8) Rule of construction.--For purposes of section 421 of
the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1631), the State program funded under
this part is not a Federal means-tested public benefits
program.''.
(2) Conforming amendments.--Section 423(d) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1183a note) is amended by adding at the end the
following:
``(12) Assistance, benefits, or services under part A of
title IV of the Social Security Act except for cash assistance
provided to a sponsored alien who is subject to deeming
pursuant to section 408(f) of that Act.''.
(c) State Authority To Provide State and Local Public Benefits for
Certain Aliens.--Section 411(d) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1621(d)) is amended--
(1) in the heading, by inserting ``and Other'' before
``Aliens''; and
(2) by inserting ``or who otherwise is not a qualified
alien (as defined in subsections (b) and (c) of section 431)''
after ``United States''.
SEC. 302. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID
PROGRAM AND TITLE XXI.
(a) Medicaid Program.--Section 1903(v) (42 U.S.C. 1396b(v)) is
amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)''; and
(2) by adding at the end the following:
``(4)(A) A State may elect (in a plan amendment under this title)
to provide medical assistance under this title for aliens who are
lawfully residing in the United States (including battered aliens
described in section 431(c) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996) and who are otherwise eligible
for such assistance, within any of the following eligibility
categories:
``(i) Pregnant women.--Women during pregnancy (and during
the 60-day period beginning on the last day of the pregnancy).
``(ii) Children.--Children (as defined under such plan),
including optional targeted low-income children described in
section 1905(u)(2)(B).
``(B)(i) In the case of a State that has elected to provide medical
assistance to a category of aliens under subparagraph (A), no debt
shall accrue under an affidavit of support against any sponsor of such
an alien on the basis of provision of assistance to such category and
the cost of such assistance shall not be considered as an unreimbursed
cost.
``(ii) The provisions of sections 401(a), 402(b), 403, and 421 of
the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 shall not apply to a State that makes an election under
subparagraph (A).''.
(b) Title XXI.--Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is
amended by adding at the end the following:
``(E) Section 1903(v)(4) (relating to optional
coverage of permanent resident alien children), but
only if the State has elected to apply such section to
that category of children under title XIX.''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2003, and apply to medical assistance and child
health assistance furnished on or after such date.
SEC. 303. 5-YEAR 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 new
subparagraph:
``(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
new subsection:
``(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) 5-Year Extension of Sunset for TMA.--
(1) In general.--Subsection (g) of section 1925 (42 U.S.C.
1396r-6), as redesignated under subsection (a)(2)(A), and as
amended by section 7 of the Welfare Reform Extension Act of
2003 (Public Law 108-040), 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 ``2003''
and inserting ``2008''.
(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), 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 new paragraph:
``(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
further 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 further 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.
(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. 304. DEFINITION OF ASSISTANCE.
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 cash
benefits and does not include child care or other
support services.
``(B) Exception.--The term `assistance' does not
include a payment 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) or any other benefit or service excluded
from the definition of assistance under section 260.31
of title 45 of the Code of Federal Regulations (as in
effect on June 1, 2002).''.
SEC. 305. 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 Carry Over Certain Amounts for Benefits or
Services or for Future Contingencies.--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.''.
SEC. 306. AUTHORITY TO USE TANF FUNDS FOR HOUSING BENEFITS.
(a) In General.--Section 404 (42 U.S.C. 604) is amended by
inserting at the end the following:
``(l) Use of Funds for Supplemental Housing Benefits.--
``(1) In general.--The provision by a State of supplemental
housing benefits to or on behalf of an individual eligible for
assistance under the State program funded under this part,
using funds from a grant made under section 403(a) of this
title, shall not be considered to be the provision of
assistance to the individual under the State program
funded under this part for any purpose except in determining the
allowability of the expenditure under section 401(a)(1).
``(2) Permitted use of funds.--A State may not use any part
of the funds from a grant made under section 403 to supplant
rather than supplement State expenditures on housing-related
programs.
``(3) Definition of supplemental housing benefits.--In this
subsection, the term `supplemental housing benefits' means
payments made to or on behalf of an individual to reduce or
reimburse the costs incurred by the individual for housing
accommodations, and the receipt of which does not reduce the
amount of assistance, benefits, or services an individual would
otherwise receive 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)).''.
(b) State Plan.--Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is
amended by adding at the end the following:
``(v) The document shall describe--
``(I) the primary problems that
families receiving assistance and
families who have recently stopped
receiving assistance under the State
program funded under this part
experience in securing and retaining
adequate, affordable housing and the
estimated extent of each such problem,
including the price of such housing in
various areas of the State that include
a large proportion of recipients of
assistance under the State program;
``(II) the steps that have been and
will be taken by the State and other
public or private entities that
administer housing programs in the
State to address the problems described
in subclause (I);
``(III) the methods the State has
adopted to identify barriers to work
posed by the living arrangement,
housing cost, and housing location of
families eligible for the State program
funded under this part; and
``(IV) the services and benefits
that have been or will be provided by
the State or other public or private
entities to help families overcome the
barriers so identified.''.
TITLE IV--RESOURCES AND ACCOUNTABILITY
SEC. 401. REAUTHORIZATION OF STATE FAMILY ASSISTANCE GRANTS.
(a) In General.--Section 403(a)(1) (42 U.S.C. 603(a)(1)), as
amended by section 3(a) of the Welfare Reform Extension Act of 2003
(Public Law 108-040), is amended--
(1) in subparagraph (A), by striking ``1996'' and all that
follows through ``2003'' and inserting ``2004 through 2008'';
and
(2) in subparagraph (C), by striking ``for fiscal year
2003'' and inserting ``for each of fiscal years 2004 through
2008''.
(b) Direct Funding and Administration by Indian Tribes.--
(1) Tribal family assistance grant.--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 (Public Law 108-040), 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''.
(c) Matching Grants for the Territories.--Section 1108(b)(2) (42
U.S.C. 1308(b)(2)), as so amended, is amended by striking ``1997
through 2003'' and inserting ``2004 through 2008''.
(d) Maintenance of Effort Penalty.--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) 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), by striking ``1997 through
2003'' and inserting ``2004 through 2008''.
(e) Federal Loans for State Welfare Programs.--Section 406(d) (42
U.S.C. 606(d), as amended by section 3(f) of the Welfare Reform
Extension Act of 2003 (Public Law 108-040) is amended by striking
``1997 through 2003'' and inserting ``2004 through 2008''.
SEC. 402. REAUTHORIZATION OF SUPPLEMENTAL GRANTS FOR POPULATION
INCREASES.
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), is amended--
(1) in the subparagraph heading, by striking ``of grants
for fiscal year 2002'';
(2) in clause (i), by striking ``2002 and 2003'' and
inserting ``2004 through 2008'';
(3) in clause (ii), by striking ``2003'' and inserting
``2008''; and
(4) in clause (iii), by striking ``2002 and 2003'' and
inserting ``2004 through 2008''.
SEC. 403. 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), 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 higher of $0 and the applicable percentage (as
defined in subparagraph (D)(i)) of the product of--
``(i) the estimated cost of an additional
recipient family (as defined in subparagraph
(D)(ii)); and
``(ii) the increase in the number of
families receiving assistance under the State
program funded under this part or a program
funded with qualified State expenditures (as
defined in subparagraph (D)(iv)).
``(C) Limitation.--The total amount paid to a
single State under subparagraph (A) during a fiscal
year shall not exceed the amount equal to 15 percent of
the State family assistance grant (as defined under
subparagraph (B) of subsection (a)(1) and increased
under subparagraph (E) of that subsection).
``(D) Definitions.--In this paragraph:
``(i) Applicable percentage.--The term
`applicable percentage' means the higher of--
``(I) 75 percent; and
``(II) the sum of the Federal
medical assistance percentage for the
State (as defined in section 1905(b))
plus 8 percentage points.
``(ii) Estimated cost of an additional
recipient family.--The term `estimated cost of
an additional recipient family' means the
amount equal to 120 percent of the basic
assistance cost (as defined under clause (iii))
for families receiving assistance 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) Basic assistance cost.--
``(I) In general.--The term `basic
assistance cost' 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 or a State program funded with
qualified State expenditures (as
defined in section 409(a)(7)(B)(i)).
``(iv) Increase in the number of families
receiving assistance under the state program
funded under this part or a program funded with
qualified state expenditures.--The term
`increase in the number of families receiving
assistance under the State program funded under
this part or a program funded with qualified
State expenditures' means the increase in--
``(I) the number of families
receiving assistance under the State
program funded under this part and
under a program funded with qualified
State expenditures (as defined in
section 409(a)(7)(B)(i)) in the most
recent month for which data from the
State are available; as compared to
``(II) the lower of the average
monthly number of families receiving
such assistance in either of the 2
completed fiscal years immediately
preceding the fiscal year in which the
State qualifies as a needy State.
``(E) 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 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'' and inserting ``3-
month''.
(b) Modification of Definition of Needy State.--Section 403(b) (42
U.S.C. 603(b)) is further amended--
(1) by striking paragraphs (5) through (7);
(2) by redesignating paragraph (8) as paragraph (5); 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), a
State will be initially determined to be a needy State
for a month if the State satisfies at least 2 of the
following:
``(i) The--
``(I) average rate of total
unemployment in the State 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; or
``(II) average insured unemployment
rate for the most recent 3 months for
which data are available has increased
by 1 percentage point over the
corresponding 3-month period in either
of the 2 most recent preceding fiscal
years.
``(ii) 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 10 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, provided
that the Secretary makes a determination that
the State's increase in the number of such
households was due, in large measure, to
economic conditions rather than an expansion of
program eligibility requirements.
``(iii) As determined by the Secretary, the
monthly average number of families that
received assistance 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)) in the most
recently concluded 3-month period for which
data are available from the State increased by
at least 10 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, provided
that the Secretary makes a determination that
the State's increased caseload was due, in
large measure, to economic conditions rather
than an expansion of program eligibility
requirements.
``(B) Duration.--
``(i) In general.--A State that qualifies
as a needy State--
``(I) under subparagraph (A)(i),
shall be considered a needy State until
the factor which was used to meet the
definition of needy State under that
subparagraph for the most recently
concluded 3-month period for which data
are available, falls below the level
attained for such factor in the 3-month
period in which the State first
qualified as a needy State under that
subparagraph;
``(II) under subparagraph (A)(ii),
shall be considered a needy State until
the average monthly number of
households participating in the food
stamp program for the most recently
concluded 3-month period for which data
are available nationally falls below
the food stamp base period level; and
``(III) under subparagraph
(A)(iii), shall be considered a needy
State until the number of families
receiving assistance 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)) for the most recently
concluded 3-month period for which data
are available falls below the TANF base
period level.
``(ii) Seasonal variations.--
Notwithstanding subclauses (II) and (III) of
clause (i), a State shall be considered a needy
State--
``(I) under subparagraph (A)(ii),
if with respect to the State, the
monthly average number of households
participating in the food stamp program
for the most recent 3-month period for
which data are available nationally
falls below the food stamp base period
level and the Secretary determines that
this is due to expected seasonal
variations in food stamp receipt in the
State; and
``(II) under subparagraph (A)(iii),
if, with respect to a State, the
monthly average number of
families receiving assistance 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)) for the most recently concluded 3-
month period for which data are available nationally falls below the
TANF base period level and the Secretary determines that this is due to
expected seasonal variations in assistance receipt in the State.
``(iii) Food stamp base period level.--In
this subparagraph, the term `food stamp base
period level' means the monthly average number
of households participating in the food stamp
program that corresponds to the most recent 3-
month period for which data are available at
the time when the State first was determined to
be a needy State under this paragraph.
``(iv) TANF base period level.--In this
subparagraph, the term `TANF base period level'
means the monthly average number of families
receiving assistance 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)) that
corresponds to the most recent 3 months for
which data are available at the time when the
State first was determined to be a needy State
under this paragraph.
``(4) Exception.--
``(A) In general.--Notwithstanding paragraph (3), a
State that has unobligated TANF reserves from prior
fiscal years that equal more than 25 percent of the
total amount of grants received by the State under
subsection (a) (other than welfare-to-work grants made
under paragraph (5) of that subsection prior to fiscal
year 1999) but not yet obligated as of the end of the
preceding fiscal year shall not be a needy State under
this subsection.
``(B) Definition of unobligated tanf reserves.--In
subparagraph (A), the term `unobligated TANF reserves'
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 1999) but not yet obligated as of
the end of the preceding fiscal year; 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 1999)
but not yet obligated as of the end of the
preceding fiscal year, plus the difference
between--
``(I) the pro rata share of the
fiscal year grants to be made under
subsection (a) to the State (other than
such welfare-to-work grants); and
``(II) current year obligations of
the total amount of grants made to all
States 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.''.
(c) Clarification of Reporting Requirements.--Paragraph (5) 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''.
SEC. 404. CHILD CARE.
Section 418(a) (42 U.S.C. 618(a)), as amended by section 4 of the
Welfare Reform Extension Act of 2003, is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by inserting ``and remaining after the reservation
described in paragraph (4),'' after ``paragraph (3)'';
(2) in paragraph (3)--
(A) by striking ``and'' at the end of subparagraph
(E);
(B) in subparagraph (F), by striking ``2002 and
2003'' and inserting ``2002 through 2006;''; and
(C) by adding at the end the following:
``(G) $3,217,000,000 for fiscal year 2007;
``(H) $3,717,000,000 for fiscal year 2008.'';
(3) by redesignating paragraph (5) as paragraph (7); and
(4) by inserting after paragraph (4) the following:
``(5) Additional general entitlement grants.--
``(A) Appropriation.--
``(i) In general.--For additional grants
under paragraph (1), there is appropriated--
``(I) $750,000,000 for each of
fiscal years 2004 and 2005; and
``(II) $1,000,000,000 for each of
fiscal years 2006 through 2008.
``(ii) Amounts in addition to other amounts
appropriated; availability.--Amounts
appropriated under this subparagraph for a
fiscal year shall be in addition to amounts
appropriated under paragraph (3) for such
fiscal year and shall remain available without
fiscal year limitation.
``(B) Additional grant.--In addition to the grant
paid to a State under paragraph (1) for each of fiscal
years 2004 through 2008, the Secretary, after reserving
the amount described in paragraph (4) and subject to the requirement
described in paragraph (6), shall pay each State an amount equal to the
same proportion of such amount as the proportion of the State's grant
under paragraph (1) to the total amount appropriated for State grants
under paragraph (1) for such fiscal year.
``(6) Requirement for grant increase.--Notwithstanding
paragraphs (1), (2), or (5), the aggregate amount paid to a
State under this section for each of fiscal years 2004 through
2008 may not exceed the aggregate amount paid to the State
under this section for fiscal year 2003 unless the State
ensures that the level of State expenditures for child care for
such fiscal year is not less than the sum of the level of State
expenditures for child care that were matched under a grant
made to the State under paragraph (2) and that the State
expended to meet its maintenance of effort obligation under
paragraph (2) for fiscal year 2003.''.
SEC. 405. RESTORATION OF FUNDING FOR THE SOCIAL SERVICES BLOCK GRANT.
(a) Restoration of Funds for the Social Services Block Grant.--
Section 2003(c) (42 U.S.C. 1379b(c)) is amended--
(1) in paragraph (10), by striking ``and'';
(2) in paragraph (11), by striking ``and each fiscal year
thereafter.'' and inserting ``; and''; and
(3) by adding at the end the following:
``(12) $1,750,000,000 for fiscal year 2004;
``(13) $1,800,000,000 for fiscal year 2005;
``(14) $1,900,000,000 for fiscal year 2006;
``(15) $2,100,000,000 for fiscal year 2007; and
``(16) $2,800,000,000 for fiscal year 2008 and each fiscal
year thereafter.''.
(b) Restoration of Authority To Transfer up to 10 Percent of TANF
Funds.--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.''.
SEC. 406. COMPETITIVE GRANTS FOR PUBLIC-PRIVATE PARTNERSHIPS FOR
EDUCATIONAL OPPORTUNITIES FOR CAREER ADVANCEMENT.
(a) Authority To Award Grants.--
(1) In general.--The Secretary of Health and Human Services
and the Secretary of Labor (in this section referred to as the
``Secretaries'') jointly shall award grants in accordance with
the requirements of this section for each fiscal year for which
an amount is appropriated to carry out this section for
projects proposed by eligible applicants to encourage the
formation of public-private partnerships to provide educational
opportunities for individuals who receive assistance under the
temporary assistance to needy families program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) and for individuals who have ceased to receive assistance
under that program.
(2) Criteria.--The Secretaries shall award grants under
this section based on the following:
(A) The potential effectiveness of the proposed
project in carrying out the activities described in
subsection (e).
(B) Evidence of the ability of the eligible
applicant to leverage private, State, and local
resources to carry out such activities.
(C) Evidence of the ability of the eligible
applicant to coordinate with other organizations at the
State and local level in carrying out such activities.
(b) Definition of Eligible Applicant.--In this section, the term
``eligible applicant'' means--
(1) a public educational institution;
(2) an employer; or
(3) a local or regional consortium that includes employers
or employer associations, education and training providers,
local chambers of commerce, or providers of social services.
(c) Application.--Each eligible applicant desiring a grant under
this section shall submit an application to the Secretaries at such
time, in such manner, and that includes--
(1) evidence, including letters of support, demonstrating
that the applicant will work with the State in carrying out the
activities described in subsection (e); and
(2) such other information as the Secretaries may
reasonably require.
(d) Determination of Amount of Grants; Availability of Funds.--
(1) In general.--In determining the appropriate amount of a
grant to be awarded under this section, the Secretaries shall
provide an eligible applicant with an approved application an
amount sufficient to ensure that the project has a reasonable
opportunity to be successful, taking into account--
(A) the number and characteristics of the
individuals to be served by the project;
(B) the job opportunities and job growth in the
area to be served by the project;
(C) the poverty rate for such area; and
(D) such other factors as the Secretaries deem
appropriate.
(2) Maximum amount.--No eligible applicant shall receive a
grant of more than $5,000,000 per year.
(3) Availability of funds.--Funds provided under a grant
awarded under this section for a fiscal year shall remain
available for use by the eligible applicant through the end of
the succeeding fiscal year.
(e) Use of Funds.--An eligible applicant awarded a grant under this
section shall enter into an agreement with the State or local agency
responsible for administering the temporary assistance to needy
families program in the area where the eligible applicant is located to
provide individuals described in subsection (a) with--
(1) educational credits or opportunities based upon the
length of the individual's employment;
(2) educational credits or opportunities based upon the
individual's commitment to becoming employed; or
(3) education and training opportunities for career
advancement.
(f) Reports.--
(1) Project reports.--Each eligible applicant awarded a
grant under this section shall submit to the Secretaries such
information and data regarding the recipients participating in
the project funded under such grant and outcomes for such
recipients as the Secretaries may require.
(2) Report to congress.--The Secretaries shall submit
annual reports to Congress on the information and data
submitted under paragraph (1).
(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section, $25,000,000 for each of fiscal
years 2004 through 2008.
SEC. 407. GRANTS TO IMPROVE ACCESS TO TRANSPORTATION.
(a) In General.--Section 403(a) (42 U.S.C. 603(a)), as amended by
section 201, is amended by adding at the end the following:
``(7) Grant to improve access to transportation.--
``(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, local governments, 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, Indian tribes, counties,
localities, 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, $20,000,000 for each of
fiscal years 2004 through 2008.''.
(b) Improving Use of TANF Funds for Car Ownership Matching Funds.--
Section 404(h)(2)(B) of the Social Security Act (42 U.S.C.
608(h)(2)(B)) is amended by adding at the end the following:
``(iv) Automobile purchase or
maintenance.--At the option of the State, costs
with respect to the purchase or maintenance of
an automobile.''.
SEC. 408. PATHWAY TO SELF-SUFFICIENCY GRANTS TO IMPROVE COORDINATION OF
ASSISTANCE FOR LOW-INCOME FAMILIES.
(a) Definitions.--In this section:
(1) Eligible applicant.--The term ``eligible applicant''
means a State or local government agency or a nonprofit entity.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(3) State.--The term ``State'' means each of the 50 States
of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, American Samoa, Guam, and the
United States Virgin Islands.
(4) Support program for low-income families.--The term
``support program for low-income families'' means a program
designed to provide low-income families and noncustodial
parents who need help with obtaining employment and fulfilling
child support obligations to children receiving assistance
under the temporary assistance to needy families program
established under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) with assistance or benefits to enable
the family or noncustodial parent to become self-sufficient and
includes--
(A) the temporary assistance to needy families
program established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
(B) the food stamp program established under the
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
(C) the medicaid program funded under title XIX of
the Social Security Act (42 U.S.C. 1396 et seq.);
(D) the State children's health insurance program
(SCHIP) funded under title XXI of the Social Security
Act (42 U.S.C. 1397aa et seq.);
(E) the child care program funded under the Child
Care Development Block Grant Act of 1990 (42 U.S.C.
9858 et seq.);
(F) the child support program funded under part D
of title IV of the Social Security Act (42 U.S.C. 651
et seq.);
(G) the earned income tax credit under section 32
of the Internal Revenue Code of 1986;
(H) the low-income home energy assistance program
(LIHEAP) established under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621 et seq.);
(I) the special supplemental nutrition program for
women, infants, and children (WIC) established under
section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786);
(J) programs under the Workforce Investment Act of
1998 (29 U.S.C. 2801 et seq.);
(K) programs supporting low-income housing
assistance programs; and
(L) any other Federal, State, or locally funded
program designed to provide family and work support to
low-income families.
(b) Authority To Award Grants.--
(1) In general.--The Secretary may award grants to eligible
applicants to--
(A) improve the coordination of support programs
for low-income families and noncustodial parents
described in subsection (a)(4); and
(B) conduct outreach to such families and
noncustodial parents to promote enrollment in such
programs.
(2) Preference.--In awarding grants under this section, the
Secretary shall give preference to eligible applicants that
include in the application submitted under subsection (c)
documentation demonstrating that the eligible applicant will
collaborate with other Federal, State, or local agencies or
nonprofit entities in carrying out activities under the grant.
(c) Application.--Each eligible applicant desiring a grant under
this section shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as the Secretary
may require.
(d) Annual Reports.--
(1) In general.--The Secretary shall submit an interim and
final report to Congress describing the uses of grant funds
awarded under this section.
(2) Dates for submission.--With respect to the reports
required under paragraph (1), the Secretary shall submit--
(A) the interim report, not later than December 31,
2006; and
(B) the final report, not later than December 31,
2009.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for the period of
fiscal years 2004 through 2008.
(f) Annual Assessment of Regional Labor Markets To Target Higher
Entry Level Wage Opportunities in Industries Experiencing Labor
Shortages.--
(1) In general.--An State to which a grant is made under
this section annually shall conduct an assessment of its
regional labor markets that includes the following:
(A) Labor market.--The assessment shall--
(i) identify industries or occupations that
have or expect growth, the loss of skilled
workers, or that have a demand for a subset of
workers;
(ii) identify the entry-level education and
skills requirements for the industries or
occupations that have or anticipate a need for
workers; and
(iii) analyze the entry-level wages and
benefits in identified industries or
occupations.
(B) Job seekers.--The assessment shall create a
profile of the characteristics of the unemployed and
underemployed residents of the State, including
educational attainment, barriers to employment,
geographic concentrations, and access to needed support
services.
(C) Education and training infrastructure.--The
assessment shall create a profile of the State's
available education, training, and support services to
prepare workers for the identified industries or
occupations.
(D) Aligning industries and job seeker needs.--The
assessment shall compare the characteristics of the
identified industries or occupations to the profiles
created under subparagraphs (B) and (C).
(2) Provision of information to localities.--The State
shall share with local political subdivisions of the State--
(A) information regarding the existence of higher
entry-wage job opportunities in industries experiencing
labor shortages; and
(B) opportunities for collaboration with
institutions of higher education, community-based
organizations, and economic development and welfare
agencies.
(3) Data.--A State may use data available as of the date
the State begins an assessment under paragraph (1) to conduct
such assessment if such data provides the information necessary
to conduct the assessment described in that paragraph.
(4) Reports.--
(A) State reports.--Each State to which a grant is
made under this section annually shall submit a report
to the Secretary that contains the assessment required
under paragraph (1).
(B) Report to congress.--The Secretary annually
shall submit a report to Congress compiling the State
reports submitted under subparagraph (A).
SEC. 409. TRANSITIONAL JOBS PROGRAMS.
Section 403(a) (42 U.S.C. 603(a)), as amended by section 407(a), is
amended by adding at the end the following:
``(8) Transitional jobs grants.--
``(A) Purpose.--The purpose of this paragraph is to
provide funding so that States and localities can
create and expand transitional jobs programs that--
``(i) combine time-limited employment that
is subsidized with public funds, with skill
development and barrier removal activities,
pursuant to an individualized plan;
``(ii) provide job development and
placement assistance to individual program
participants to help them move from subsidized
employment in transitional jobs into
unsubsidized employment, as well as retention
services after the transition to unsubsidized
employment; and
``(iii) serve recipients of assistance
under the State program funded under this part
and other low-income individuals who have been
unable to secure employment through job search
or other employment-related services because of
limited skills, experience, or other barriers
to employment.
``(B) Limitations on use of funds.--
``(i) Allowable activities.--An entity to
which funds are provided under this paragraph
shall use the funds to operate transitional
jobs programs consistent with the following:
``(I) An entity which secures a
grant to operate a transitional jobs
program (in this subparagraph referred
to as a `program operator'), under this
paragraph shall place eligible
individuals in temporary, publicly
subsidized jobs. Individuals placed in
such jobs shall perform work directly
for the program operator, or at other
public and nonprofit organizations (in
this subparagraph referred to as
`worksite employers') within the
community. Funds provided under this
paragraph shall be used to subsidize
100 percent of the wages paid to
program participants as well as
employer-paid payroll costs for such
participants.
``(II) Transitional jobs programs
shall provide paid employment for not
less than 30, nor more than 40 hours
per week, except that a parent with a
child under the age of 6, a child who
is disabled, or a child with other
special needs, or an individual who for
other reasons cannot successfully
participate for 30 to 40 hours per
week, may, at State discretion, be
allowed to participate for more limited
hours, but not less than 20 hours per
week.
``(III) Program operators shall
provide case management services and
ensure that appropriate education,
training, and other services are
available to program participants
consistent with an individual plan
developed for each such participant.
``(IV) Program operators shall
provide job placement assistance to
help program participants obtain
unsubsidized employment, and shall
provide retention services for 12
months after entry into unsubsidized
employment.
``(V) In any work week in which a
program participant is employed at
least 30 hours, not less than 20
percent, nor more than 50 percent of
scheduled hours shall involve
participation in education or training
activities designed to improve the
participant's employability and
potential earnings, or other services
designed to reduce or eliminate any
barriers that may impede the
participant's ability to secure
unsubsidized employment.
``(VI) The maximum duration of any
placement in a transitional jobs
program shall not be less than 6
months, nor more than 24 months.
Nothing in this subclause shall be
construed to bar a program participant
from moving into unsubsidized
employment at a point prior to the
maximum duration of the program. States
may approve programs of varying
durations consistent with this
subclause.
``(VII) Program participants shall
be paid at the rate paid to
unsubsidized employees of the worksite
employer (or program operator where
work is performed directly for the
program operator) who perform
comparable work at the worksite where
the individual is placed. If no other
employees perform the same or
comparable work then wages shall be
set, at a minimum, at 50 percent of the
Lower Living Standard Income Level (in
this subparagraph referred to as the
`LLSIL'), as specified in section 101(24) of the Workforce Investment
Act of 1998, for a family of 3 based on 35 hours per week.
``(VIII) Program participants shall
receive supervision from the worksite
employer or program operator consistent
with the goal of addressing the limited
work experience and skills of program
participants.
``(ii) Consultation.--An application
submitted by an entity seeking to become a
program operator shall include an assurance by
the applicant that the transitional jobs
program carried out by the applicant shall--
``(I) provide in the design,
recruitment, and operation of the
program for broad-based input from the
community served and potential
participants in the program and
community-based agencies with a
demonstrated record of experience in
providing services, prospective
worksite employers, local labor
organizations representing employees of
prospective worksite employers, if
these entities exist in the area to be
served by the program, and employers,
and membership-based groups that
represent low-income individuals; and
``(II) prior to the placement of
program participants, consult with the
appropriate local labor organization,
if any, representing employees in the
area who are engaged in the same or
similar work as that proposed to be
carried out by such program.
``(iii) Eligibility for other work
supports.--Program participants shall be
eligible for subsidized child care,
transportation assistance, and other needed
support services on the same basis as other
recipients of cash assistance under the State
program funded under this part.
``(iv) Wages not considered assistance.--
Wages paid to program participants shall not be
considered to be assistance for purposes of
section 408(a)(7).
``(v) Private sector placements.--Not more
than 50 percent of the total number of such
participants in transitional jobs in a State at
any time may be placed at worksite employers
which are private, for-profit entities.
``(C) General eligibility.--
``(i) In general.--Not less than \2/3\ of
the participants in a transitional jobs program
funded under a grant made under this paragraph
during a fiscal year shall be individuals who
are, at the time they enter the program--
``(I) receiving assistance under
the State program funded under this
part;
``(II) not receiving assistance
under the State program funded under
this part, but who are unemployed, and
who were recipients of such assistance
within the immediately preceding 12-
month period;
``(III) custodial parents of a
minor child who meet the financial
eligibility criteria for assistance
under the State program funded under
this part; or
``(IV) noncustodial parents with
income below 150 percent of the poverty
line (as defined in section 673(2) of
the Omnibus Budget Reconciliation Act
of 1981, including any revision
required by such section, applicable to
a family of the size involved).
``(ii) Limitation.--Not more than \1/3\ of
all participants in a transitional jobs program
funded under this paragraph during a fiscal
year shall be individuals who have attained at
least age 18 with an income below 150 percent
of the poverty line (as defined in section
673(2) of the Omnibus Budget Reconciliation Act
of 1981, including any revision required by
such section, applicable to a family of the
size involved) who are not eligible under
clause (i). An individual who is an ex-offender
shall be eligible to participate in a
transitional jobs program funded under this
paragraph.
``(iii) Methodology.--The Secretary may use
any reasonable methodology in calculating
whether program participants satisfying the
requirements of clause (i), constitute \2/3\ or
more of all participants, and whether program
participants satisfying the requirements of
clause (ii) constitute not more than \1/3\ of
all such participants in a fiscal year.
``(iv) Authority to provide work-related
services to individuals who have reached the 5-
year limit.--A program operator under this
paragraph may use the funds to provide
transitional job program participation to
individuals who, but for section 408(a)(7),
would be eligible for assistance under the
program funded under this part of the State in
which the program operator is located.
``(D) Relationship to other provisions of this
part.--
``(i) Rules governing use of funds.--The
provisions of section 404 (other than
subsection (f) thereof) shall not apply to a
grant made under this paragraph.
``(ii) Administration.--Section 416 shall
not apply to the programs under this paragraph.
``(iii) Prohibition against use of grant
funds for any other fund matching
requirement.--An entity to which funds are
provided under this paragraph shall not use any
part of the funds to fulfill any obligation of
any State or political subdivision under
subsection (b) or section 418 or any other
provision of this Act or other Federal law.
``(iv) Deadline for expenditure.--An entity
to which funds are provided under this
paragraph shall remit to the Secretary of Labor
any part of the funds that are not expended
within 3 years after the date on which the
funds are so provided.
``(v) Regulations.--Within 90 days after
the date of enactment of this paragraph, the
Secretary of Labor, after consultation with the
Secretary of Health and Human Services, shall
prescribe such regulations as may be necessary
to implement this paragraph.
``(vi) Reporting requirements.--The
Secretary of Labor, in consultation with the
Secretary of Health and Human Services, shall
establish requirements for the collection and
maintenance of financial and program
participant information and the reporting of
such information by entities carrying out
activities under this paragraph. Such reporting
requirements shall include, at a minimum, that
States report disaggregated data on individual
program participants that include the
following:
``(I) Demographic information about
the program participant including
education level, literacy level, and
prior work experience.
``(II) Identity of the program
operator that provides or provided
services to the program participant,
and the duration of participation.
``(III) The nature of education,
training or other services received by
the program participant.
``(IV) Reasons for the program
participant's leaving the program.
``(V) Whether the program
participant secured unsubsidized
employment during or within 60 days
after the employment of the participant
in a transitional job, and if so,
details about the participant's
unsubsidized employment including
industry, occupation, starting wages
and hours, and availability of employer
sponsored health insurance and sick and
vacation leave.
``(vii) Additional reporting
requirements.--States shall collect and report
followup data for a sampling of program
participants reflecting their employment and
earning status 12 months after entering
unsubsidized employment.
``(E) National competitive grants.--
``(i) In general.--The Secretary of Labor
shall award grants in accordance with this
paragraph, in fiscal years 2003 through 2007,
for transitional jobs programs proposed by
eligible applicants, based on the following:
``(I) The extent to which the
proposal seeks to provide services in
multiple sites that include sites in
more than 1 State.
``(II) The extent to which the
proposal seeks to provide services in a
labor market area or region that
includes portions of more than 1 State.
``(III) The extent to which the
proposal seeks to provide transitional
jobs in a State.
``(IV) The extent to which the
applicant proposes to provide
transitional jobs in either rural areas
or areas where there are a high
concentration of residents with income
that is less than the poverty line.
``(V) The effectiveness of the
proposal in helping individuals who are
least job ready move into unsubsidized
jobs that provide pathways to stable
employment and livable wages.
``(ii) Eligible applicants.--In this
paragraph, the term `eligible applicant'
means--
``(I) a Workforce Investment Board
for a local workforce area in a State;
``(II) a political subdivision of a
State;
``(III) a State;
``(IV) an Indian tribe; or
``(V) a private entity.
``(iii) Funding.--Subject to subparagraphs
(F) and (G), of the amount appropriated in
subparagraph (H) for a fiscal year, $25,000,000
of such amount shall be used to make grants
under this paragraph for that fiscal year.
``(F) Funding for indian tribes.--1.5 percent of
the amount appropriated in subparagraph (H) for each
fiscal year shall be reserved for grants to Indian
tribes.
``(G) Funding for evaluations of transitional jobs
programs.--1.5 percent of the amount appropriated in
subparagraph (H) for each fiscal year shall be reserved for use by the
Secretary to carry out subparagraph (I).
``(H) Appropriations.--
``(i) In general.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for grants
under this paragraph, $25,000,000 for each of
fiscal years 2004 through 2008.
``(ii) Availability.--The amounts made
available pursuant to clause (i) shall remain
available for such period as is necessary to
make the grants provided for in this paragraph.
``(I) Evaluation of transitional jobs programs.--
The Secretary, in consultation with the Secretary of
Labor--
``(i) shall develop a plan to evaluate the
extent to which transitional jobs programs
funded under this paragraph have been effective
in promoting sustained, unsubsidized employment
for each group of eligible participants;
``(ii) may evaluate the use of such grants
by such grantees/ as the Secretary deems
appropriate, in accordance with an agreement
entered into with the grantees after good-faith
negotiations; and
``(iii) should include the following
outcome measures in the plan developed under
clause (i):
``(I) Placements in unsubsidized
employment.
``(II) Placements in unsubsidized
employment that last for at least 12
months, and the extent to which
individuals are employed continuously
for at least 12 months.
``(III) Earnings of individuals who
obtain employment at the time of
placement.
``(IV) Earnings of individuals 1
year after placement.
``(V) The occupations and
industries in which wage growth and
retention performance is greatest.
``(VI) Average expenditures per
participant.''.
SEC. 410. GAO STUDY ON IMPACT OF BAN ON SSI BENEFITS FOR LEGAL
IMMIGRANTS.
(a) Study.--The Comptroller General of the United States shall
conduct a study to determine the impact of the prohibition under
section 402 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1612) with respect to the
eligibility of qualified aliens (as defined in section 431 of such Act
(8 U.S.C. 1641)) for benefits under the supplemental security income
program under title XVI of the Social Security Act (42 U.S.C. 1381 et
seq.), including supplementary payments pursuant to an agreement for
Federal administration under section 1616(a) of such Act (42 U.S.C.
1382e) and payments pursuant to an agreement entered into under section
212(b) of Public Law 93-66.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General shall submit a report to Congress on
the study conducted under subsection (a) that includes such
recommendations for legislative action as the Comptroller General
determines appropriate.
SEC. 411. ENSURING TANF FUNDS ARE NOT USED TO DISPLACE PUBLIC
EMPLOYEES; APPLICATION OF WORKPLACE LAWS TO WELFARE
RECIPIENTS.
(a) Welfare-to-Work Worker Protections.--
(1) In general.--Section 403(a)(5)(I) (42 U.S.C.
603(a)(5)(I)) is amended--
(A) by striking clauses (i) and (iv);
(B) by redesignating clauses (v) and (vi) as
clauses (iv) and (v), respectively; and
(C) by inserting before clause (ii), the following:
``(i) Nondisplacement.--
``(I) In general.--An adult in a
family receiving assistance under a
State program funded under this part,
in order to engage in a work activity,
shall not displace any employee or
position (including partial
displacement, such as a reduction in
the hours of nonovertime work, wages,
or employment benefits) or fill any
unfilled vacancy.
``(II) Prohibitions.--A work
activity engaged in under a program
operated with funds provided under this
paragraph shall not impair any existing
contract for services, be inconsistent
with any existing law, regulation, or
collective bargaining agreement, or
infringe upon the recall rights or
promotional opportunities of any
worker.
``(III) No supplanting of other
hires.--A work activity engaged in
under a program operated with funds
provided under this paragraph shall be
in addition to any activity that
otherwise would be available and shall
not supplant the hiring of an employed
worker not funded under such program.
``(IV) Enforcing antidisplacement
protections.--
``(aa) In general.--The
State shall establish and
maintain an impartial grievance
procedure to resolve any
complaints alleging violations
of the requirements of
subclause (I), (II), or (III)
within 60 days of receipt of
the complaint and, if a
decision is adverse to the
party who filed such grievance
or no decision has been
reached, provide for
the completion of an arbitration procedure within 75 days of receipt of
the complaint or the adverse decision or conclusion of the 60-day
period, whichever is earlier.
``(bb) Appeals.--Appeals
may be made to the Secretary
who shall make a decision
within 75 days.
``(cc) Remedies.--Remedies
for a violation of the
requirements of subclause (I),
(II), or (III) shall include
termination or suspension of
payments, prohibition of the
placement of the participant,
reinstatement of an employee,
and other relief to make an
aggrieved employee whole.
``(dd) Limitation on
placement.--If a grievance is
filed regarding a proposed
placement of a participant,
such placement shall not be
made unless such placement is
consistent with the resolution
of the grievance pursuant to
this subclause.''.
(2) State plan requirement.--Section 402(a)(1)(A) (42
U.S.C. 602(a)(1)(A)) is amended by adding at the end the
following:
``(vii) In the case of a State that
receives a welfare-to-work grant under section
403(a)(5), ensure compliance with the
nondisplacement requirements of subparagraph
(I)(i) of that section.''.
(b) Application of Workplace Laws to Welfare Recipients.--
Notwithstanding any other provision of law, workplace laws, including
the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), the
Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.),
title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.),
and the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.), shall apply to an individual who is a recipient of assistance
under the temporary assistance to needy families program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)
in the same manner as such laws apply to other workers. The fact that
an individual who is a recipient of assistance under the temporary
assistance to needy families program is participating in, or seeking to
participate in work activities under that program in satisfaction of
the work activity requirements of the program, shall not deprive the
individual of the protection of any Federal, State, or local workplace
law.
SEC. 412. DATA COLLECTION AND REPORTING.
Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended in the
matter preceding clause (i), by striking ``(except for information
relating to activities carried out under section 403(a)(5))'' and
inserting `` (and in complying with this requirement, the Secretary
shall require not more than 10 States to ensure that the following case
record information is reported in a manner that permits analysis of
such information by race, ethnicity or national origin, primary
language, gender, and educational level, including analysis using a
combination of these factors, and shall submit an annual report to
Congress containing such data)''.
TITLE V--MISCELLANEOUS
SEC. 501. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided, the amendments made
by this Act shall take effect on the date of enactment of this Act, 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,
without regard to whether regulations to implement the amendments are
promulgated by such date.
(b) Delay Permitted if State Legislation Required.--In the case of
a State plan under section 402(a) or 454 of the Social Security Act (42
U.S.C. 602(a), 654) 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 Act, the State plan
shall not be regarded as failing to comply with the requirements of
such section 402(a) or 454 solely on the basis of the failure of the
plan to meet such additional requirements before the 1st day of the 1st
calendar quarter beginning after the close of the 1st 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.
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