[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 367 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 367
To amend part A of title IV of the Social Security Act to reauthorize
and improve the temporary assistance to needy families program, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 12, 2003
Mr. Rockefeller 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
and improve 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; TABLE OF CONTENTS; AMENDMENTS TO SOCIAL
SECURITY ACT.
(a) Short Title.--This Act may be cited as the ``Personal
Responsibility and Work Opportunity Reconciliation Act Amendments of
2003''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents; amendments to Social Security
Act.
Sec. 2. Findings.
TITLE I--FUNDING
Sec. 101. Reauthorization and annual adjustment of State family
assistance grants.
Sec. 102. Contingency fund.
Sec. 103. Bonus for reduction of child poverty.
Sec. 104. Reauthorization of other grants.
Sec. 105. Restoration of funding for the Social Services Block Grant.
Sec. 106. Repeal of Federal loans for State welfare programs.
Sec. 107. GAO reports on TANF funding and expenditures.
TITLE II--SUPPORTING WORK
Sec. 201. Making work pay.
Sec. 202. Increase in guaranteed funding for child care.
Sec. 203. Parents as scholars program.
Sec. 204. Elimination of recipients completing secondary school from
limit on number of TANF recipients
participating in vocational educational
training.
Sec. 205. Vocational training and other preemployment activities.
Sec. 206. State option to credit months engaged in work or parents as
scholars program for purposes of 5-year
assistance limit.
Sec. 207. Innovative Business Link partnership for employers and
nonprofit organizations.
TITLE III--SUPPORTING FAMILIES
Sec. 301. Elimination of separate work participation rate for 2-parent
families.
Sec. 302. Ban on imposition of stricter eligibility criteria for 2-
parent families.
Sec. 303. Family formation fund.
Sec. 304. Ensuring child well-being.
Sec. 305. Funding for families assisted by a territory program.
TITLE IV--STATE FLEXIBILITY
Sec. 401. Pathway to self-sufficiency grants to improve coordination of
assistance for low-income families.
Sec. 402. State option to offer wage subsidies.
Sec. 403. Exclusion of victims of domestic violence from 20 percent
limitation on hardship exception.
Sec. 404. Clarification of authority of States to use TANF funds
carried over from prior years to provide
TANF benefits and services.
Sec. 405. Continuation of prewelfare reform waivers.
Sec. 406. State option to align foster care and adoption assistance
eligibility with TANF eligibility.
Sec. 407. Promoting work and responsibility among all families with
children.
Sec. 408. Authority to transfer TANF funds to carry out an access to
jobs project or a reverse commute project.
TITLE V--HEALTHY CHILDREN
Sec. 501. Revision and simplification of the transitional medical
assistance program (TMA).
Sec. 502. Optional coverage of legal immigrants under the medicaid
program and title XXI.
Sec. 503. Second chance homes.
TITLE VI--PUBLIC ACCOUNTABILITY
Sec. 601. Public availability of State program and financial data
submissions.
Sec. 602. Study and guidelines regarding compliance with
nondiscrimination provisions.
Sec. 603. Ensuring TANF funds are not used to displace public
employees; application of workplace laws to
welfare recipients.
Sec. 604. Research and development.
Sec. 605. GAO study on impact of ban on SSI benefits for legal
immigrants.
Sec. 606. Grants to improve States' policies and procedures for
assisting individuals with barriers to
work.
Sec. 607. Ensuring a professional TANF program staff.
TITLE VII--EFFECTIVE DATE
Sec. 701. Effective date.
(c) Amendments to Social Security Act.--Except as otherwise
specifically provided, whenever in this Act an amendment is expressed
in terms of an amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that section or other
provision of the Social Security Act (42 U.S.C. 301 et seq.).
SEC. 2. 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 nearly
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) More investments in quality child care will allow
parents to enter and continue in the workforce knowing that
their children have access to safe, meaningful child care,
hopefully with emphasis on child development and preparation to
ensure that each child gains the skills needed to enter school
ready to learn.
(5) While families are moving from welfare to work, and
employment rates are up, 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 are improving, but more must be
done to reduce poverty in the 2,000,000 families who are still
struggling.
(7) Parents who remain on the welfare caseloads face
multiple barriers to employment and therefore need a range of
services to address their needs and move from welfare to work.
(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) Welfare reform has been successful because it has been
a flexible partnership between the Federal Government and the
States, and retaining the partnership and flexibility will be
important for the future.
(10) The State agencies responsible for administering the
temporary assistance to needy families program have had to
assume many new and more complex responsibilities which
necessitates improving and upgrading the skills and ability of
the workers at those agencies to ensure high quality service
delivery and meet all program goals.
(11) Studies indicate disparate racial treatment in the
implementation of the temporary assistance to needy families
program with respect to determining eligibility for assistance under
the program, disseminating information, providing referral for
services, and imposing sanctions for non-compliance with program
requirements.
TITLE I--FUNDING
SEC. 101. REAUTHORIZATION AND ANNUAL ADJUSTMENT OF STATE FAMILY
ASSISTANCE GRANTS.
(a) In General.--Section 403(a)(1) is amended (42 U.S.C.
603(a)(1))--
(1) in subparagraph (A), by striking ``1996'' and all that
follows through ``2002'' and inserting ``2004 through 2008'';
(2) by redesignating subparagraph (E) as subparagraph (I);
(3) by redesignating subparagraphs (B) through (D) as
subparagraphs (C) through (E), respectively;
(4) in subparagraph (C), as so redesignated--
(A) in the heading, by striking ``State'' and
inserting ``Base state''; and
(B) by striking ``As used in this part, the term
`State family assistance grant' means'' and inserting
``Subject to subparagraph (F), as used in this part,
the term `base State family assistance grant' means'';
(5) by inserting after subparagraph (A), the following:
``(B) State family assistance grant defined.--As
used in this part, the term `State family assistance
grant' means the sum of--
``(i) the base State family assistance
grant; and
``(ii) the annual adjustment amount.'';
(6) by inserting after subparagraph (E), as redesignated by
paragraph (3), the following:
``(F) Update of base for certain states.--
``(i) In general.--With respect to a base
State family assistance grant made for any of
fiscal years 2004 through 2008, in the case of
a State that meets the criteria described in
clause (ii) or (iii), subject to clause (v),
the amount of the base State family assistance
grant determined under this paragraph for that
State for such a fiscal year shall be increased
by the applicable amount described in clause
(iv) for that fiscal year.
``(ii) Receipt of supplemental grant for
fiscal year 2002.--For purposes of clause (i),
the criteria described in this clause is that a
State received a supplemental grant under
paragraph (3) for fiscal year 2002 (as in
effect with respect to such fiscal year).
``(iii) State basic tanf grant per poor
person is below national average.--For purposes
of clause (i), the criteria described in this
clause is that, with respect to a State and a
fiscal year, the State basic TANF grant per
poor person for the immediately preceding
fiscal year is less than the national average
State basic TANF grant per poor person for such
preceding fiscal year.
``(iv) Applicable amount.--
``(I) All qualifying states.--For
purposes of clause (i), the applicable
amount described in this clause is the
amount equal to 2.5 percent of the sum
of--
``(aa) the amount required
to be paid to the State under
former section 403 (as in
effect during fiscal year
1994); and
``(bb) the amount (if any)
paid to the State under
paragraph (3) for fiscal year
2002 (as in effect with respect
to such fiscal year).
``(II) Original qualifying
states.--In the case of a State that
meets the criteria described in clause
(ii), the amount determined under
subclause (I) for a fiscal year shall
be further increased by the amount
described in item (bb) of that
subclause.
``(v) Preservation of update.--In the case
of a State that fails to meet the criteria
described in clause (iii) for a fiscal year but
that did satisfy such criteria for a prior
fiscal year, the amount of the base State
family assistance grant determined under this
paragraph for that State for such a fiscal year
shall be increased by the amount determined for
the State under clause (iv)(I) for the most
recent fiscal year for which the State
satisfied such criteria.
``(vi) Definitions.--In this subparagraph:
``(I) State basic tanf grant per
poor person.--The term `State basic
TANF grant per poor person' means, with
respect to a State and a preceding
fiscal year--
``(aa) the base State
family assistance grant for the
State (as defined under
subparagraph (C) and, if
applicable, increased under
this subparagraph); divided by
``(bb) the number of
individuals, according to the
2000 Census Supplementary
Survey, who were residents of
the State and whose income does
not exceed the poverty line.
``(II) National average state basic
tanf grant per poor person.--The term
`national average State basic TANF
grant per poor person' means, with
respect to a preceding fiscal year, an
amount equal to--
``(aa) the base State
family assistance grant (as
defined under subparagraph (C)
and increased under this
subparagraph) for all States
for that fiscal year; divided
by
``(bb) the number of
individuals, according to the
2000 Census Supplementary
Survey, who were residents of
any State and whose income does
not exceed the poverty line.
``(III) State.--The term `State'
means each of the 50 States and the
District of Columbia.
``(G) Annual adjustment amount.--For purposes of
subparagraph (B), the annual adjustment amount with
respect to a State is the amount equal to the product
of--
``(i) the difference between the amount
appropriated under subparagraph (H) for grants
under this paragraph for the fiscal year and the Base family assistance
grant for the State; and
``(ii) the number of children in poverty
residing in the State divided by the total
number of children in poverty residing in all
States.
``(H) Additional definitions.--In this paragraph:
``(i) Children in poverty.--
``(I) In general.--The term
`children in poverty' means, with
respect to a State and a fiscal year,
the number of children residing in the
State who have not attained age 18 and
whose family income is less than the
poverty line.
``(II) Data.--The Secretary shall
determine the number of children in
poverty in a State using the most
recent, accurate data available for the
State.
``(III) Regulations.--The Secretary
shall promulgate for public comment
regulations that describe the
methodology and data that the Secretary
will use to determine the number of
children in poverty in each State.
``(ii) Poverty line.--The term `poverty
line' has the meaning given the term 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.
``(iii) Family income.--The term `family
income' means cash income but does not include
cash benefits from means-tested public programs
or child support obligations.''; and
(7) in subparagraph (I), as redesignated by paragraph (2),
by striking ``appropriated for fiscal years'' and all that
follows through the period and inserting ``appropriated for
State family assistance grants under this paragraph--
``(i) for fiscal year 2004,
$17,011,416,235;
``(ii) for fiscal year 2005,
$17,236,416,235;
``(iii) for fiscal year 2006,
$17,461,416,235;
``(iv) for fiscal year 2007,
$17,686,416,235; and
``(v) for fiscal year 2008,
$17,911,416,235.''.
SEC. 102. 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 any 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.
``(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 State policy changes.
``(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
either the State's (seasonally
adjusted) total unemployment rate or
(seasonally adjusted) insured
unemployment rate, whichever rate was
used to meet the definition as a needy
State under that subparagraph for the
most recently concluded 3-month period
for which data are available, falls
below the level attained 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. 103. BONUS FOR REDUCTION OF CHILD POVERTY.
(a) Child Poverty Reduction Bonus.--Section 403(a) (42 U.S.C.
603(a)) is amended by adding at the end the following:
``(6) Bonus to reward states that reduce child poverty.--
``(A) In general.--Beginning with fiscal year 2004,
the Secretary shall make a grant pursuant to this
paragraph to each State for each fiscal year for which
the State is a qualified child poverty reduction State.
``(B) Amount of grant.--
``(i) In general.--Subject to this
subparagraph, the amount of the grant to be
made to a qualified child poverty reduction
State for a fiscal year shall be an amount
equal to--
``(I) the number of children who
had not attained 18 years of age by the
end of the then most recently completed
calendar year and who resided in the
State as of the end of such calendar
year, divided by the number of such
children who resided in the United
States as of the end of such calendar
year; multiplied by
``(II) the amount appropriated
pursuant to subparagraph (G) for the
fiscal year.
``(ii) Limitations.--
``(I) Minimum grant.--The amount of
the grant to be made to a qualified
child poverty reduction State for a
fiscal year shall be not less than
$500,000.
``(II) Maximum grant.--The amount
of the grant to be made to a qualified
child poverty reduction State for a
fiscal year shall not exceed an amount
equal to 3 percent of the State family
assistance grant (as defined in
subparagraph (B) of paragraph (1) and
increased under subparagraph (E) of
that paragraph) for the fiscal year.
``(iii) Pro rata increase.--If the amount
available for grants under this paragraph for a
fiscal year is greater than the total amount of
payments otherwise required to be made under
this paragraph for the fiscal year, then the
amount otherwise payable to any State for the
fiscal year under this paragraph shall, subject
to clause (ii)(II), be increased by such equal
percentage as may be necessary to ensure that
the total of the amounts payable for the fiscal
year under this paragraph equals the amount
available for the grants.
``(iv) Pro rata reduction.--If the amount
available for grants under this paragraph for a
fiscal year is less than the total amount of
payments otherwise required to be made under
this paragraph for the fiscal year, then the
amount otherwise payable to any State for the
fiscal year under this paragraph shall, subject
to clause (ii)(I), be reduced by such equal
percentage as may be necessary to ensure that
the total of the amounts payable for the fiscal
year under this paragraph equals the amount
available for the grants.
``(C) Use of grant.--A State to which a grant is
made under this paragraph shall use the grant for any
purpose for which a grant made under this part may be
used.
``(D) Definitions.--In this paragraph:
``(i) Qualified child poverty reduction
state.--The term `qualified child poverty
reduction State' means, with respect to a fiscal year, a State if--
``(I) the child poverty rate
achieved by the State for the then most
recently completed calendar year for
which such information is available is
less than the lowest child poverty rate
achieved by the State during the
applicable period; and
``(II) the average depth of child
poverty in the State for the then most
recently completed calendar year for
which such information is available is
not greater than the average depth of
child poverty in the State for the
calendar year that precedes such then
most recently completed calendar year.
``(ii) Applicable period.--In clause (i),
the term `applicable period' means, with
respect to a State and the calendar year
referred to in clause (i)(I), the period that--
``(I) begins with the calendar year
that, as of October 1, 2003, precedes
the then most recently completed
calendar year for which such
information is available; and
``(II) ends with the calendar year
that precedes the calendar year
referred to in clause (i)(I).
``(iii) Child poverty rate.--The term
`child poverty rate' means, with respect to a
State and a calendar year, the percentage of
children residing in the State during the
calendar year whose family income for the
calendar year is less than the poverty line
then applicable to the family.
``(iv) Average depth of child poverty.--The
term `average depth of child poverty' means
with respect to a State and a calendar year,
the average dollar amount by which family
income is exceeded by the poverty line, among
children in the State whose family income for
the calendar year is less than the applicable
poverty line.
``(v) Poverty line.--The term `poverty
line' has the meaning given the term 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.
``(vi) Family income.--The term `family
income' means cash income, child support
payments, Federal, State, or local government
cash payments, and benefits under the Food
Stamp Act of 1977 that are received by any
family member, and family income shall be
determined after payment of all taxes and
receipt of any tax refund or rebate by any
family member.
``(E) Secretary shall determine appropriate data
source for calculations.--
``(i) In general.--The Secretary shall
determine the most reliable data source to use
for the estimates required under this
paragraph.
``(ii) Different sources permitted.--The
Secretary may employ different data sources or
estimation procedures for different States.
``(iii) Regulations.--The Secretary shall
issue regulations indicating the data and
estimation procedures to be used in this
paragraph.
``(F) Secretary to develop additional experimental
criteria to be used for fiscal years 2007 and 2008.--
``(i) In general.--The Secretary shall
develop experimental child poverty reduction
bonus criteria to be used in addition to the
criteria specified in subparagraph (D)(i) to
determine which States are qualified child
poverty reduction States for fiscal year 2007
or 2008. The Secretary--
``(I) shall develop such criteria
so that States that show improvement in
such criteria are eligible for a bonus
under this subparagraph for fiscal year
2007 or 2008; and
``(II) may develop such criteria so
that States that meet 1 or more of the
criteria, regardless of past
performance, qualify for a bonus under
this paragraph for such a fiscal year.
``(ii) No requirement to satisfy criteria
for preceding fiscal years.--A State does not
have to satisfy the criteria specified in
subparagraph (D)(i) in order to be a qualified
child poverty reduction State for fiscal year
2007 or 2008 so long as the State satisfies 1
or more of the experimental criteria developed
under this subparagraph for such a fiscal year.
``(iii) Requirements.--
``(I) In general.--The Secretary
shall design the experimental criteria
to be used under this subparagraph to
measure the extent to which efforts
conducted with Federal funds provided
under this part or with non-Federal
funds counting toward the State's
qualified State expenditures under
section 409(a)(7) are reducing the
extent and severity of poverty among
families with children or increasing
the ability of families with children
whose income is less than the poverty
line meet the basic needs of such
families such as food and housing.
``(II) Consideration of specific
criteria.--In designing such criteria
the Secretary shall consider criteria
with respect to a specific State that
measure--
``(aa) the extent to which
child care subsidies are
available to families with
children whose income is below
the poverty line and the impact
of such subsidies on the
ability of such families to
meet other basic needs such as
food and housing;
``(bb) State efforts in
ensuring that other federally
funded programs designed to
assist low-income families are
accessible and available to
such families; and
``(cc) the effectiveness of
the State's child support
enforcement system and the
affect of such system on the
extent and depth of child
poverty in the State.
``(III) Consultation.--The
Secretary shall develop such criteria
in consultation with the Secretary of
Housing and Urban Development, the
Secretary of Agriculture, States, and
researchers in the area of child well-
being and poverty.
``(IV) Reports.--The Secretary
shall submit to Congress the following
reports:
``(aa) Interim report.--Not
later than December 31, 2005,
an interim report on the
Secretary's progress in
developing the experimental
criteria required under this
subparagraph, including a
description of the criteria
under consideration and
research initiated to test and
develop such criteria.
``(bb) Proposed measure
report.--Not later than
December 31, 2006, a final
report that describes the
experimental criteria developed
under this subparagraph that
the Secretary proposes to use
to award the fiscal years 2007
and 2008 child poverty
reduction bonuses under this
subparagraph.
``(V) Regulations.--Not later than
January 31, 2006, the Secretary shall
promulgate regulations for public
comment on the experimental criteria
proposed to be used to award the fiscal
years 2007 and 2008 child poverty
reduction bonuses under this
subparagraph.
``(G) 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--
``(I) for fiscal year 2004,
$25,000,000;
``(II) for each of fiscal years
2005 and 2006, $50,000,000;
``(III) for fiscal year 2007,
$75,000,000; and
``(IV) for fiscal year 2008,
$100,000,000.
``(ii) Development of experimental
criteria.--Out of any money in the Treasury of
the United States not otherwise appropriated,
there are appropriated for the purpose of
developing the experimental criteria required
under subparagraph (F), $5,000,000 for each of
fiscal years 2004 and 2005.
``(iii) Allocation of funds for fiscal
years 2007 and 2008.--With respect to each of
fiscal years 2007 and 2008, not less than
$25,000,000 of the amount appropriated under
subclauses (III) and (IV) of clause (i) for
each such fiscal year shall be used to award
bonuses under this paragraph on the basis of
the experimental criteria developed under
subparagraph (F).
``(iv) Availability.--Amounts made
available under clause (i) shall remain
available until expended.''.
(b) Inclusion of Measurable Milestones in Corrective Action Plan.--
Section 413(i)(3) (42 U.S.C. 613(i)(3)) is amended in the second
sentence by inserting ``and identify the measurable milestones for
assessing the effectiveness of the plan'' before the period.
SEC. 104. REAUTHORIZATION OF OTHER GRANTS.
(a) Reauthorization of Bonus To Reward High Performance States.--
Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended--
(1) in subparagraph (E)(i), by striking ``1999'' and all
that follows through ``2003'' and inserting ``2004, 2005, 2006,
2007, 2008, and 2009''; and
(2) in subparagraph (F) by striking ``1999 through 2003''
and inserting ``2004 through 2009''.
(b) Reauthorization of Grants for Indian Tribes.--Paragraphs (1)(A)
and (2)(A) of section 412(a) (42 U.S.C. 612(a)) are each amended by
striking ``1997'' and all that follows through ``2002'' and inserting
``2004 through 2008''.
(c) Continuation of Penalties for Failure of Any State To Maintain
Certain Level of Historic Effort.--Section 409(a)(7) (42 U.S.C.
608(a)(7)) is amended--
(1) in subparagraph (A), by striking ``1998'' and all that
follows through ``2003'' and inserting ``2004, 2005, 2006,
2007, or 2008''; and
(2) in subparagraph (B)(ii), by striking ``1997 through
2002'' and inserting ``2004 through 2008''.
SEC 105. 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) $2,800,000,000 for fiscal year 2004 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.''.
(c) Requirement To Submit Annual Report on State Activities.--
Section 2006(c) (42 U.S.C. 1397e(c)) is amended by adding at the end
the following new sentence: ``Beginning with the reports prepared and
transmitted by a State under subsection (a) for fiscal year 2004, the
Secretary shall compile the information contained in the reports
transmitted by the States under that subsection and shall submit the
compilation to Congress on an annual basis.''.
SEC. 106. REPEAL OF FEDERAL LOANS FOR STATE WELFARE PROGRAMS.
(a) In General.--Section 406 (42 U.S.C. 606) is repealed.
(b) Application to Outstanding Loans.--With respect to any loan
made under section 406 of the Social Security Act (42 U.S.C. 606) prior
to the effective date of the repeal of that section under subsection
(a), notwithstanding such repeal, the terms and conditions for such
loan shall continue until the date on which the loan would, in the
absence of such repeal, mature.
SEC. 107. GAO REPORTS ON TANF FUNDING AND EXPENDITURES.
(a) Reports.--The Comptroller General of the United States shall
submit to the Chairman and Ranking Member of the Committee on Ways and
Means of the House of Representatives and to the Chairman and Ranking
Member of the Committee on Finance of the Senate a report on the
matters described in subsection (b) on each of the dates described in
subsection (c).
(b) Matters Described.--The matters described in this subsection
are the following:
(1) The amount of expenditures per State from funds
received under a grant made under section 403 of the Social
Security Act (42 U.S.C. 603).
(2) The activities funded by the States with such funds.
(3) The State-by-State variation on the matters described
in paragraphs (1) and (2).
(4) The Federal resources available to each State for
funding welfare-to-work activities, including through funds
made available under a grant made under section 403 of the
Social Security Act (42 U.S.C. 603), funds considered to be
qualified State expenditures under section 409(a)(7) of such
Act (42 U.S.C. 609(a)(7)), funds made available to the State
under the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858 et seq.), and funds made available to the State
under the Social Services Block Grant established under title
XX of the Social Security Act (42 U.S.C. 1397 et seq.).
(5) A comparison of the Federal resources available to the
State to measure the effectiveness of the State's temporary
assistance to needy families program, such as the bonus to
reward high performance States established under section
403(a)(4) of the Social Security Act (42 U.S.C. 603(a)(4)), the
child poverty reduction bonus established under section
403(a)(6) of such Act (as amended by section 103), and studies
conducted by the State or other entities regarding the economic
self-sufficiency and well-being of individuals who have ceased
to receive assistance under the State temporary assistance to
needy families program (commonly referred to as ``leaver
studies'').
(c) Dates Described.--The dates described in this subsection are
the following:
(1) March 30, 2005.
(2) March 30, 2007.
TITLE II--SUPPORTING WORK
SEC. 201. MAKING WORK PAY.
(a) Replacement of Caseload Reduction Credit With Employment
Credit.--
(1) Employment credit to reward states in which families
leave welfare for work; additional credit for families with
higher earnings.--
(A) In general.--Section 407(a) (42 U.S.C. 607(a))
is amended by adding at the end the following:
``(3) Employment credit.--
``(A) In general.--The minimum participation rate
otherwise applicable to a State under this subsection
for a fiscal year shall be reduced by the number of
percentage points in the employment credit for the
State for the fiscal year, as determined by the
Secretary--
``(i) using information in the National
Directory of New Hires, or
``(ii) with respect to a recipient of
assistance under the State program funded under
this part who is placed with an employer whose
hiring information is not reported to the
National Directory of New Hires, using
quarterly wage information submitted by the
State to the Secretary not later than such date
as the Secretary shall prescribe in
regulations.
``(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 that ceased to
receive cash payments under the State
program funded under this part during
the preceding fiscal year and that were
employed during the calendar quarter
immediately succeeding the quarter in
which the payments ceased, plus, at
State option, twice the number of
families that received a non-recurring
short-term benefit under the State
program funded under this part during
the preceding fiscal year and that were
employed in during the calendar quarter
immediately succeeding the quarter in
which the non-recurring short-term
benefit was so received; 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, plus, if the
State elected the option under
subclause (I), twice the number of
families that received a non-recurring
short-term benefit 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, during the preceding
fiscal year, earned at least 33 percent of the
average wage in the State (determined on the
basis of State unemployment data) shall be
considered to be 1.5 families.
``(C) Publication of amount of credit.--Not later
than August 30 of each fiscal year, the Secretary shall
cause to be published in the Federal Register the
amount of the employment credit that will be used in
determining the minimum participation rate applicable
to a State under this subsection for the immediately
succeeding fiscal year.''.
(B) Authority of secretary to use information in
national directory of new hires.--Section 453(i) (42
U.S.C. 653(i)) is amended by adding at the end the
following:
``(5) Calculation of employment credit for purposes of
determining state work participation rates under tanf.--The
Secretary may use the information in the National Directory of
New Hires for purposes of calculating State employment credits
pursuant to section 407(a)(2).''.
(2) Elimination of caseload reduction credit.--Section
407(b) (42 U.S.C. 607(b)) is amended by striking paragraph (3)
and redesignating paragraphs (4) and (5) as paragraphs (3) and
(4), respectively.
(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 301(a)(3)(A)) is amended by adding at
the end the following: ``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 30 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) State Option To Include Recipients of Substantial Child Care or
Transportation Assistance in Work Participation Rate.--
(1) In general.--Section 407(a)(1) (42 U.S.C. 607(a)(1)) is
amended by inserting ``(including, at the option of the State,
a family that includes an adult who is receiving substantial
child care or transportation assistance, as defined by the
Secretary, in consultation with directors of State programs
funded under this part, which definition shall specify for each
type of assistance a threshold which is a dollar value or a
length of time over which the assistance is received, and take
account of large one-time transition payments, except any
family taken into account under paragraph (2)(B)(i)(I))''
before the colon.
(2) 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 inserting ``(including any family with respect to
whom the State has exercised its option under section
407(a)(1))'' after ``assistance''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this Act shall take effect on October 1,
2004.
(2) State option to phase-in replacement of caseload
reduction credit with employment credit and delay applicability
of other provisions.--A State may elect to have the amendments
made by subsections (a)(2) and (b), (c), and (d) not apply to
the State program funded under part A of title IV of the Social
Security Act until October 1, 2005, and if the State makes the
election, then, in determining the participation rate of the
State for purposes of sections 407 and 409(a)(3) of the Social
Security Act for fiscal year 2005, the State shall be credited
with \1/2\ of the reduction in the rate that would otherwise
result from applying section 407(a)(2) of the Social Security
Act (as added by subsection (a)(1), and as so redesignated by
section 301(a)(1)(B)) to the State for fiscal year 2005 and \1/
2\ of the reduction in the rate that would otherwise result
from applying section 407(b)(3) of the Social Security Act to
the State for fiscal year 2005.
SEC. 202. INCREASE IN GUARANTEED FUNDING FOR CHILD CARE.
Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amended--
(1) by striking ``and'' at the end of subparagraph (E);
(2) by striking the period at the end of subparagraph (F)
and inserting a semicolon; and
(3) by adding at the end the following:
``(G) $3,717,000,000 for each of fiscal years 2004
through 2006;
``(H) $3,967,000,000 for each of fiscal years 2007
through 2008.''.
SEC. 203. PARENTS AS SCHOLARS PROGRAM.
(a) State Option To Establish Parents as Scholars Program.--Section
404 (42 U.S.C. 604) is amended by adding at the end the following new
subsection:
``(l) Authority To Establish a Parents as Scholars Program.--
``(1)
``(A) 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, and the State may
elect--
``(i) in accordance with section
407(c)(2)(E), to include the participant in the
determination of the monthly work participation
rates under paragraph (1)(B)(i) of section
407(b); and
``(ii) in accordance with section
408(a)(7)(H), to credit the participant for any
month in which the participant is engaged in
the program for purposes of determining the
number of months for which an adult has
received assistance under a State or tribal
program funded under this part.
``(B) Limitation on number of eligible
participants.--The number of eligible participants that
may participate in a parents as scholars program
established under this subsection may not exceed the
amount equal to 5 percent of the total number of
recipients of assistance under the State program funded
under this part.
``(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 40 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.--In subparagraph (A)(i),
the term `full-time student' means an
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 the
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 any or all 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
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 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.''.
(b) State Option To Include Parents as Scholars Participants in
Determination of Work Participation Requirements.--Section 407(c)(2)
(42 U.S.C. 607(c)(2)) is amended by adding at the end the following new
subparagraph:
``(E) State option to include parents as scholars
participants as engaged in work.--In the case of a
State that elects to establish a parents as scholars
program under section 404(l), the State may consider
individuals participating in that program as being
engaged in work for the month for purposes of
determining monthly participation rates under
subsection (b)(1)(B)(i).''.
(c) Inclusion in Definition of Work Activity.--Section 407 of the
Social Security Act (42 U.S.C. 607) is amended--
(1) in subparagraphs (A) and (B) of subsection (c)(1), by
striking ``or (12)'' each place it appears and inserting
``(12), or (13)''; and
(2) in subsection (d)--
(A) in paragraph (11), by striking ``and'' at the
end;
(B) in paragraph (12), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(13) postsecondary education, but only in the case of an
individual participating in a parents as scholars program that
meets the requirements of section 404(l).''.
SEC. 204. ELIMINATION OF RECIPIENTS COMPLETING SECONDARY SCHOOL FROM
LIMIT ON NUMBER OF TANF RECIPIENTS PARTICIPATING IN
VOCATIONAL EDUCATIONAL TRAINING.
(a) In General.--Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is
amended by striking ``, or (if the month is in fiscal year 2000 or
thereafter) deemed to be engaged in work for the month by reason of
subparagraph (C) of this paragraph'' and inserting ``(determined
without regard to any individual described in subparagraph (C)''.
(b) Conforming Amendments.--
(1) 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''.
(2) Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is
amended in the heading, by striking ``educational activities''
and inserting ``vocational educational activities''.
SEC. 205. VOCATIONAL TRAINING AND OTHER PREEMPLOYMENT ACTIVITIES.
(a) Counting of Up to 24 Months of Vocational Training as Work
Activity.--Section 407(d)(8) (42 U.S.C. 607(d)(8)) is amended by
striking ``12'' and inserting ``24''.
(b) Participation in English-as-a-Second-Language Program Allowable
as a Preemployment Activity.--Section 407 (42 U.S.C. 607), as amended
by section 203(c) and section 301(a), is amended--
(1) in subsection (c)(1), by striking ``or (13)'' and
inserting ``(13), or (14)''; and
(2) in subsection (d)--
(A) by striking ``and'' at the end of paragraph
(12);
(B) by striking the period at the end of paragraph
(13) and inserting ``; and''; and
(C) by adding at the end the following:
``(14) participation in an English-as-a-second-language
program.''.
SEC. 206. STATE OPTION TO CREDIT MONTHS ENGAGED IN WORK OR PARENTS AS
SCHOLARS PROGRAM FOR PURPOSES OF 5-YEAR ASSISTANCE LIMIT.
Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by adding at the
end the following new subparagraph:
``(H) State option to credit months engaged in work
or parents as scholars program.--In determining the
number of months for which an adult has received
assistance under a State or tribal program funded under
this part, the State or tribe may disregard any month
during which the adult is--
``(i) engaged in a work activity defined in
paragraph (1), (2), (3), (4), or (7) of section
407(d) in accordance with the requirements of
section 407(c); or
``(ii) a participant in the parents as
scholars program established under section
404(l).''.
SEC. 207. INNOVATIVE BUSINESS LINK PARTNERSHIP FOR EMPLOYERS AND
NONPROFIT ORGANIZATIONS.
Section 403(a) (42 U.S.C. 603(a)), as amended by section 103, is
amended by adding at the end the following:
``(7) Innovative business link partnership grants.--
``(A) In general.--The Secretary and the Secretary
of Labor (in this paragraph referred to as the
``Secretaries'') jointly shall award grants in
accordance with this paragraph for projects proposed by
eligible applicants based on the following:
``(i) The potential effectiveness of the
proposed project in carrying out the activities
described in subparagraph (E).
``(ii) Evidence of the ability of the
eligible applicant to leverage private, State,
and local resources.
``(iii) Evidence of the ability of the
eligible applicant to coordinate with other
organizations at the State and local level.
``(B) Definition of eligible applicant.--
``(i) In general.--In this paragraph, the
term `eligible applicant' means a nonprofit
organization, a local workforce investment
board established under section 117 of the
Workforce Investment Act of 1998 (29 U.S.C.
2832), a State, a political subdivision of a
State, or an Indian tribe.
``(ii) Grants to promote business
linkages.--
``(I) Additional eligible
applicant.--Only for purposes of grants
to carry out the activities described
in subparagraph (E)(i), the term
`eligible applicant' includes an
employer.
``(II) Additional requirement.--In
order to qualify as an eligible
applicant for purposes of subparagraph
(E)(i), the applicant must provide
evidence that the application has been
developed by and will be implemented by
a local or regional consortium that
includes, at minimum, employers or
employer associations, and education
and training providers, in consultation
with local labor organizations and
social service providers that work with
low-income families or individuals with
disabilities.
``(C) Requirements.--
``(i) In general.--In awarding grants under
this paragraph, the Secretaries shall--
``(I) consider the needs of rural
areas and cities with large
concentrations of residents with an
income that is less than 150 percent of
the poverty line; and
``(II) ensure that--
``(aa) all of the funds
made available under this
paragraph (other than funds
reserved for use by the
Secretaries under subparagraph
(J)) shall be used for
activities described in
subparagraph (E);
``(bb) not less than 40
percent of the funds made
available under this paragraph
(other than funds so reserved)
shall be used for activities
described in subparagraph
(E)(i); and
``(cc) not less than 40
percent of the funds made
available under this paragraph
(other than funds so reserved)
shall be used for the
activities described in subparagraph (E)(ii).
``(ii) Continuation of availability.--If
any portion of the funds required to be used
for activities referred to in item (bb) or (cc)
of clause (i)(II) are not awarded in a fiscal
year, such portion shall continue to be
available in the subsequent fiscal year for the
same activity, in addition to other amounts
that may be available for such activities for
that subsequent fiscal year.
``(D) Determination of grant amount.--
``(i) In general.--Subject to clause (ii),
in determining the amount of a grant to be
awarded under this paragraph for a project
proposed by an eligible applicant, the
Secretaries shall provide the eligible
applicant with an amount sufficient to ensure
that the project has a reasonable opportunity
to be successful, taking into account--
``(I) the number and
characteristics of the individuals to
be served by the project;
``(II) the level of unemployment in
the area to be served by the project;
``(III) the job opportunities and
job growth in such area;
``(IV) the poverty rate for such
area; and
``(V) such other factors as the
Secretary deems appropriate in such
area.
``(ii) Maximum award for grants to promote
business linkages or provide transitional jobs
programs.--
``(I) In general.--In the case of a
grant to carry out activities described
in clause (i) or (ii) of subparagraph
(E), an eligible applicant awarded a
grant under this paragraph may not
receive more than $10,000,000 per
fiscal year under the grant.
``(II) Rule of construction.--
Nothing in subclause (I) shall be
construed as precluding an otherwise
eligible applicant from receiving
separate grants to carry out activities
described in clause (i) or (ii) of
subparagraph (E).
``(iii) Grant period.--The period in which
a grant awarded under this paragraph may be
used shall be specified for a period of not
less than 36 months and not more than 60
months.
``(E) Allowable activities.--An eligible applicant
awarded a grant under this paragraph shall use funds
provided under the grant to do the following:
``(i) Promote business linkages.--
``(I) In general.--To promote
business linkages in which funds shall
be used to fund new or expanded
programs that are designed to--
``(aa) substantially
increase the wages of eligible
individuals (as defined in
subparagraph (F)), whether
employed or unemployed, who
have limited English
proficiency or other barriers
to employment by creating or
upgrading job and related
skills in partnership with
employers, especially by
providing supports and services
at or near work sites; and
``(bb) identify and
strengthen career pathways by
expanding and linking work and
training opportunities for such
individuals in collaboration
with employers.
``(II) Consideration of in-kind,
in-cash resources.--In determining
which programs to fund under this
clause, an eligible applicant awarded a
grant under this paragraph shall
consider the ability of a consortium to
provide funds in-kind or in-cash
(including employer-provided, paid
release time) to help support the
programs for which funding is sought.
``(III) Priority.--In determining
which programs to fund under this
clause, an eligible applicant awarded a
grant under this paragraph shall give
priority to programs that include
education or training for which
participants receive credit toward a
recognized credential, such as an
occupational certificate or license.
``(IV) Use of funds.--
``(aa) In general.--Funds
provided to a program under
this clause may be used for a
comprehensive set of employment
and training benefits and
services, including job
development, job matching,
workplace supports and
accommodations, curricula
development, wage subsidies,
retention services, and such
other benefits or services as
the program deems necessary to
achieve the overall objectives
of this clause.
``(bb) Provision of
services.--So long as a program
is principally designed to
assist eligible individuals (as
defined in subparagraph (F)),
funds may be provided to a
program under this clause that
also serves low-earning
employees of 1 or more
employers even if such
individuals are not within the
definition of eligible
individual (as so defined).
``(ii) Provide for transitional jobs
programs.--
``(I) In general.--To provide for
wage-paying transitional jobs programs
which combine time-limited employment
in the public or nonprofit private
sector that is subsidized with public
funds with skill development and
activities to remove barriers to
employment, pursuant to an
individualized plan (or, in the case of
an eligible individual described in
subparagraph (F)(i), an individual
responsibility plan developed for an
individual under section 408(b)). Such
programs also shall provide job
development and placement assistance to
individual 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.
``(II) Eligible participants.--The
Secretary shall ensure that individuals
who participate in transitional jobs
programs funded under a grant made
under this paragraph shall be
individuals who have been unemployed
because of limited skills, experience,
or other barriers to employment, and
who are eligible individuals (as
defined in subparagraph (F)), provided
that so long as a program is designed
to, and principally serves, eligible
individuals (as so defined), a limited
number of individuals who are
unemployed because of limited skills,
experience, or other barriers to
employment, and who have an income
below 100 percent of the Federal
poverty line but who do not satisfy the
definition of eligible individual (as
so defined) may be served in the
program to the extent the Secretaries
determine that the inclusion of such
individuals in the program is
appropriate.
``(III) Use of funds.--Funds
provided to a program under this clause
may only be used in accordance with the
following:
``(aa) To create subsidized
transitional jobs in which work
shall be performed directly for
the program operator or at
other public and nonprofit
organizations (in this
subclause referred to as
`worksite employers') in the
community, and in which 100
percent of the wages shall be
subsidized, except as described
in item (gg) regarding
placements in the private, for
profit sector.
``(bb) Participants shall
be paid at the rate paid to
unsubsidized employees of the
worksite employer 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 (commonly referred to as
the `LLSIL'), as determined
under section 101(24) of the
Workforce Investment Act of
1998 (29 U.S.C. 2801(24)), for
a family of 3 based on 35 hours
per week.
``(cc) Transitional jobs
shall be limited to not less
than 6 months and not more than
24 months, however, nothing
shall preclude a participant
from moving into unsubsidized
employment at a point prior to
the maximum duration of the
transitional job placement.
Participants shall be paid
wages based on a workweek of
not less than 30 hours per week
or more than 40 hours per week,
except that a parent of 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 be allowed to
participate for more limited
hours, but not less than 20
hours per week. In any work
week, 50 percent to 80 percent
of hours shall be spent in the
transitional job and 20 percent
to 50 percent of hours shall be
spent in education or training,
or other services designed to
reduce or eliminate any
barriers.
``(dd) Program operators
shall provide case management
services and ensure access to
appropriate education,
training, and other services,
including job accommodation,
work supports, and supported
employment, as appropriate and
consistent with an individual
plan that is based on the
individual's strengths,
resources, priorities,
concerns, abilities,
capabilities, career interests,
and informed choice and that is
developed with each
participant. The goal of each
participant's plan shall focus
on preparation for unsubsidized
jobs in demand in the local
economy which offer the
potential for advancement and
growth. Services shall also
include job placement
assistance and retention
services, which may include
coaching and work place
supports, for 12 months after
entry into unsubsidized
placement. Participants shall
also receive support services
such as subsidized child care
and transportation, on the same
basis as those services are
made available to recipients of
assistance under the State
program funded under this part
who are engaged in work-related
activities.
``(ee) Providers shall work
with individual recipients to
determine eligibility for other
employment-related supports
which may include (but are not
limited to) supported
employment, other vocational
rehabilitation services, and
programs or services available
under the Workforce Investment
Act of 1998 (29 U.S.C. 2801 et
seq.), or the ticket to work
and self-sufficiency program
established under section 1148,
and, to the extent possible,
shall provide transitional
employment in collaboration
with entities providing, or
arranging for the provision of,
such other supports.
``(ff) Not more than 20
percent of the placements for a
grantee shall be with a private
for-profit company, except that
such 20 percent limit may be
waived by the Secretary for
programs in rural areas when
the grantee can demonstrate
insufficient public and non-
profit worksites. When a
placement is made at a private
for-profit company, the company
shall pay 50 percent of program
costs (including wages) for
each participant, and the
company shall agree, in
writing, to hire each
participant into an
unsubsidized position at the
completion of the agreed upon
subsidized placement, or
sooner, provided that the
participant's job performance
has been satisfactory. Not more
than 5 percent of the workforce
of a private for-profit company
may be composed of transitional
jobs participants.
``(IV) Definition of transitional
jobs program.--In this clause, the term
`transitional jobs program' means a
program that is intended to serve
current and former recipients of
assistance under a State or tribal
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.
``(iii) Capitalization.--To develop
capitalization procedures for the delivery of
self-sustainable social services.
``(iv) Administrative expenditures.--Not
more than 5 percent of the funds awarded to an
eligible applicant under this paragraph may be
used for administrative expenditures incurred
in carrying out the activities described in
clause (i), (ii), or (iii) or for expenditures
related to carrying out the assessments and
reports required under subparagraph (H).
``(F) Definition of eligible individual.--In this
paragraph, the term `eligible individual' means--
``(i) an individual who is a parent who is
a recipient of assistance under a State or
tribal program funded under this part;
``(ii) an individual who is a parent who
has ceased to receive assistance under such a
State or tribal program;
``(iii) an individual who is at risk of
receiving assistance under a State or tribal
program funded under this part;
``(iv) an individual with a disability; or
``(v) a noncustodial parent who is
unemployed, or is having difficulty in paying
child support obligations, including such a
parent who is a former criminal offender.
``(G) Application.--Each eligible applicant
desiring a grant under this paragraph shall submit an
application to the Secretaries at such time, in such
manner, and accompanied by such information as the
Secretaries may require.
``(H) Assessments and reports by grantees.--
``(i) In general.--An eligible applicant
that receives a grant under this paragraph
shall assess and report on the outcomes of
programs funded under the grant, including the
identity of each program operator, demographic
information about each participant, including
education level, literacy level, prior work
experience and identified barriers to
employment, the nature of education, training,
or other services received by the participant,
the reason for the participant's leaving the
program, and outcomes related to the placement
of the participant in an unsubsidized job,
including 1-year employment retention, wage at
placement, benefits, and earnings progression,
as specified by the Secretaries.
``(ii) Assistance.--The Secretaries shall--
``(I) assist grantees in conducting
the assessment required under clause
(i) by making available where
practicable low-cost means of tracking
the labor market outcomes of
participants; and
``(II) encourage States to provide
such assistance.
``(I) Application to requirements of the state
program.--
``(i) Work participation requirements.--
With respect to any month in which a recipient
of assistance under a State or tribal program
funded under this part who satisfactorily
participates in a business linkage or
transitional jobs program described in
subparagraph (E) that is paid for with funds
made available under a grant made under this
paragraph, such participation shall be
considered to satisfy the work participation
requirements of section 407 and be included for
purposes of determining monthly participation
rates under subsection (b)(1)(B)(i) of that
section.
``(ii) Participation not considered
assistance.--A benefit or service provided with
funds made available under a grant made under
this paragraph shall not be considered assistance for any purpose under
a State or tribal program funded under this part.
``(J) Assessments by the secretaries.--
``(i) Reservation of funds.--Of the amount
appropriated under subparagraph (L) for each of
fiscal years 2004 and 2005, $3,000,000 of such
amount for each such fiscal year is reserved
for use by the Secretaries to prepare an
interim and final report summarizing and
synthesizing outcomes and lessons learned from
the programs funded through grants awarded
under this paragraph.
``(ii) Interim and final assessments.--With
respect to the reports prepared under clause
(i), the Secretaries shall submit--
``(I) the interim report not later
than 4 years after the date of
enactment of the Personal
Responsibility and Work Opportunity
Reconciliation Act Amendments of 2003;
and
``(II) the final report not later
than 6 years after such date of
enactment.
``(K) Evaluations.--
``(i) Reservation of funds.--Of the amount
appropriated under subparagraph (L) for a
fiscal year, an amount equal to 1.5 percent of
such amount for each such fiscal year shall be
reserved for use by the Secretaries to conduct
evaluations in accordance with the requirements
of clause (ii).
``(ii) Requirements.--The Secretaries--
``(I) shall develop a plan to
evaluate the extent to which programs
funded under grants made under this
paragraph have been effective in
promoting sustained, unsubsidized
employment for each group of eligible
participants, and in improving the
skills and wages of participants in
comparison to the participants' skills
and wages prior to participation in the
programs;
``(II) may evaluate the use of such
a grant by a grantee, as the
Secretaries deem appropriate, in
accordance with an agreement entered
into with the grantee after good-faith
negotiations; and
``(III) shall include, as
appropriate, the following outcome
measures in the evaluation plan
developed under subclause (I):
``(aa) Placements in
unsubsidized employment.
``(bb) Retention in
unsubsidized employment 6
months and 12 months after
initial placement.
``(cc) Earnings of
individuals at the time of
placement in unsubsidized
employment.
``(dd) Earnings of
individuals 12 months after
placement in unsubsidized
employment.
``(ee) The extent to which
unsubsidized job placements
include access to affordable
employer-sponsored health
insurance and paid leave
benefits.
``(ff) Comparison of pre-
and post-program wage rates of
participants.
``(gg) Comparison of pre-
and post-program skill levels
of participants.
``(hh) Wage growth and
employment retention in
relation to occupations and
industries at initial placement
in unsubsidized employment and
over the first 12 months after
initial placement.
``(ii) Recipient of cash
assistance under the State
program funded under this part.
``(jj) Average expenditures
per participant.
``(iii) Reports to congress.--The
Secretaries shall submit to Congress the
following reports on the evaluations of
programs funded under grants made under this
paragraph:
``(I) Interim report.--An interim
report not later than 4 years after the
date of enactment of the Personal
Responsibility and Work Opportunity
Reconciliation Act Amendments of 2003.
``(II) Final report.--A final
report not later than 6 years after
such date of enactment.
``(L) Appropriation.--
``(i) In general.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there is appropriated for grants
under this section, $200,000,000 for each of
fiscal years 2004 through 2008.
``(ii) Availability.--Amounts appropriated
under clause (i) for a fiscal year shall remain
available for obligation for 5 fiscal years
after the fiscal year in which the amount is
appropriated.''.
TITLE III--SUPPORTING FAMILIES
SEC. 301. ELIMINATION OF SEPARATE WORK PARTICIPATION RATE FOR 2-PARENT
FAMILIES.
(a) In General.--Section 407 (42 U.S.C. 607) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``All families''
and inserting ``In general''; and
(B) by striking paragraph (2) and redesignating
paragraph (3) (as added by section 201(a)(1)) as
paragraph (2);
(2) in subsection (b)--
(A) by striking paragraph (2);
(B) in paragraph (3) (as redesignated by section
201(a)(2)), by striking ``paragraphs (1)(B) and
(2)(B)'' and inserting ``paragraph (1)(B)'';
(C) in paragraph (4) (as so redesignated), by
striking ``rates'' and inserting ``rate''; and
(D) by redesignating such paragraphs (3) and (4) as
paragraphs (2) and (3), respectively; and
(3) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``General rules.--'' and
all that follows through ``For purposes'' in
subparagraph (A) and inserting ``General
rule.--For purposes''; and
(ii) by striking subparagraph (B); and
(B) in paragraph (2)(D)--
(i) by striking ``paragraphs (1)(B)(i) and
(2)(B) of subsection (b)'' and inserting
``subsection (b)(1)(B)(i)''; and
(ii) by striking ``and in 2-parent
families, respectively,''.
(b) Conforming Amendment Removing Disincentive To Assist 2-Parent
Families.--Section 409(a)(3)(A) (42 U.S.C. 609(a)(3)(A)) is amended by
inserting ``(determined, in the case of a fiscal year prior to fiscal
year 2004, without regard to the minimum participation rate required
for that fiscal year under section 407(a)(2) (as in effect with respect
to such fiscal year)'' after ``section 407(a) for the fiscal year''.
SEC. 302. 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 any benefit or service funded under this part
or funded with non-Federal funds counting toward the State's
qualified State expenditures under section 409(a)(7), 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 up 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.''.
(c) Assurance of Equal Treatment.--Section 402(a) (42 U.S.C.
602(a)) is amended by adding at the end the following:
``(8) Assurance of equal treatment of 2-parent families.--
Not later than 180 days after the completion of the examination
required under section 302(b)(1) of the Personal Responsibility
and Work Opportunity Reconciliation Act Amendments of 2003, the
chief executive officer of the State shall submit to the
Secretary an assurance that in conducting the State program
funded under this part, the State does not have rules or
procedures that discriminate against 2-parent families.''.
SEC. 303. FAMILY FORMATION FUND.
Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read as
follows:
``(2) Family formation fund.--
``(A) In general.--The Secretary shall provide
grants to States and localities for research, technical
assistance, replication, and adaptation of rigorously
evaluated programs, and to conduct demonstration
projects which are evaluated by independent entities in
accordance with evaluation criteria established by the
Secretary, in the following areas:
``(i) Encouraging the formation and
maintenance of 2-parent families and healthy
marriages and reducing nonmarital births.
``(ii) Reducing first and subsequent
teenage pregnancies.
``(iii) Increasing the ability of
noncustodial parents to financially support and
be involved with their children.
``(B) Allocation of funds.--
``(i) In general.--In making grants under
this paragraph, the Secretary shall ensure that
not less than 30 percent of the funds made
available pursuant to this paragraph for a
fiscal year are used in each of the areas
described in a clause of subparagraph (A).
``(ii) Reservation.--The Secretary may
reserve up to 5 percent of the funds made
available pursuant to this paragraph for a
fiscal year to provide technical assistance and
to conduct research through the Office of the
Secretary.
``(C) Grantee requirements.--A recipient of a grant
under this paragraph shall--
``(i) consult with domestic violence
experts and child advocates to ensure that
programs funded under grants made under this
paragraph do not result in an increase in
family violence; and
``(ii) offer marriage-related services only
to individuals who voluntarily elect to receive
such services.
``(D) Grants criteria.--
``(i) In general.--The Secretary shall
promulgate for public comment criteria for
selecting proposals for grants under this
paragraph. Such criteria shall include, at a
minimum, that the Secretary shall select
proposals that satisfy the requirements of
subparagraph (C) and identify the potential
harm a demonstration project might have on
subject families such as loss of income.
``(ii) Priority for certain proposals.--
Within the allocation made available to carry
out subparagraph (A)(ii), the Secretary shall
give priority to proposals that seek to
replicate or adapt teen pregnancy prevention
programs that have been rigorously evaluated
and shown to be successful.
``(E) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each of fiscal
years 2004 through 2008 $100,000,000 for grants under
this paragraph.''.
SEC. 304. ENSURING CHILD WELL-BEING.
(a) State Child Well-Being Assessment as Part of Individual
Responsibility Plan.--Section 408(b)(2)(A) (42 U.S.C. 608(b)(2)(A)) is
amended--
(1) by redesignating clauses (iv) and (v) as clauses (v)
and (vi), respectively;
(2) by inserting after clause (iii), the following:
``(iv) sets forth a child well-being plan
for each child in the family as part of the
individual's responsibility as well as work,
and offers, at a minimum, information
concerning programs designed to promote each
child's well-being, including health benefits
coverage under titles XIX and XXI, benefits
under the food stamp program and other
nutrition programs, child care, child support
enforcement, and other assistance or benefits
that may be available for the child;''; and
(3) in clause (v) (as redesignated by paragraph (1))--
(A) by striking ``and describe'' and inserting
``describes''; and
(B) by inserting ``, and provides information
concerning ways to access services identified as
important to the well-being of each child in the
family'' before the semicolon.
(b) Promulgation of Best Practice Standards.--Not later than
December 31, 2004, the Secretary of Health and Human Services shall
promulgate best practice standards regarding the most appropriate
procedures for imposing sanctions against a family receiving 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.)
for the family's (or any family member's) failure to comply with a
requirement imposed under that program.
(c) Requirement To Develop Plan; Technical Amendments.--
(1) Development of plan.--Each State conducting a State
program funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) shall develop a child well-being
assessment for use in completing the child well-being plans
required under section 408(b)(2)(A)(iv) of the Social Security
Act (42 U.S.C. 608(b)(2)(A)(vi)) (as added by subsection (a)).
(2) Technical amendments.--Section 408(b)(2) (42 U.S.C.
608(b)(2)) is amended--
(A) in subparagraph (A), in the matter preceding
clause (i)--
(i) by striking ``subsection (a)'' and
inserting ``paragraph (1)''; and
(ii) by striking ``may develop'' and
inserting ``shall develop''; and
(B) in subparagraph (B), in the matter preceding
clause (i), by striking ``paragraph (1)'' and inserting
``subparagraph (A)''.
(d) Deadline for Implementation.--A State shall not be regarded as
failing to comply with the requirement of section 408(b)(2)(A)(iv) of
the Social Security Act (42 U.S.C. 608(b)(2)(A)(iv)) (as added by
subsection (a)) before the date that is 1 year after the effective date
of this Act with respect to the State, as determined under section 701.
SEC. 305. FUNDING FOR FAMILIES ASSISTED BY A TERRITORY PROGRAM.
(a) Increase in Mandatory Ceiling Amount.--Section 1108(c)(4) (42
U.S.C. 1308(c)(4)) is amended--
(1) in subparagraph (A), by striking ``$107,255,000'' and
inserting ``$109,936,375'';
(2) in subparagraph (B), by striking ``$4,686,000'' and
inserting ``$4,803,150'';
(3) in subparagraph (C), by striking ``$3,554,000'' and
inserting ``$3,642,850''; and
(4) in subparagraph (D), by striking ``$1,000,000'' and
inserting ``$1,250,000''.
(b) Appropriation.--Section 1108(b)(2) (42 U.S.C. 1308(b)(2)) is
amended by striking ``fiscal years 1997 through 2002'' and inserting
``each of fiscal years 2004 through 2008''.
TITLE IV--STATE FLEXIBILITY
SEC. 401. 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 $150,000,000 for the period of
fiscal years 2004 through 2008.
SEC. 402. STATE OPTION TO OFFER WAGE SUBSIDIES.
(a) Clarification of Authority To Use Grant Funds.--Section 404 (42
U.S.C. 604), as amended by section 203, is further amended by adding at
the end the following:
``(m) Authority To Provide Wage Subsidies.--A State to which a
grant is made under section 403 may use the grant to provide wage
subsidies or other benefits or services to a family that includes an
individual who has--
``(1) participated in a work activity described in
paragraph (1), (2), (3), (4), or (5) of section 407(d) for at
least 30 hours per week;
``(2) received at least such amount of income from the work
activity as the State may establish; and
``(3) complied with all work requirements applicable to the
individual under the State program funded under this part.''.
(b) Effect of Wage Subsidies on 5-Year Limit.--Section 408(a)(7)
(42 U.S.C. 608(a)(7)), as amended by section 206, is amended by adding
at the end the following:
``(I) Limitation on meaning of `assistance' for
families with income from employment.--For purposes of
this paragraph, at State option, a wage subsidy or
other benefit or service provided to a family under
section 404(m) during a month under the State program
funded under this part shall not be considered
assistance under the State program.''.
SEC. 403. EXCLUSION OF VICTIMS OF DOMESTIC VIOLENCE FROM 20 PERCENT
LIMITATION ON HARDSHIP EXCEPTION.
Section 408(a)(7)(C) (42 U.S.C. 608(a)(7)(C)) is amended--
(1) in clause (i), by striking ``by reason of'' and all
that follows through the period and inserting ``by reason of--
``(I) hardship; or
``(II) if the family includes an
individual who has been battered or
subjected to extreme cruelty.'';
(2) in clause (ii), by striking ``clause (i)'' and
inserting ``clause (i)(I)''; and
(3) in clause (iii), by striking ``clause (i)'' and
inserting ``clause (i)(II)''.
SEC. 404. 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--
(1) in the subsection heading, by striking ``Assistance''
and inserting ``Benefits or Services''; and
(2) by striking ``assistance'' and inserting ``any benefit
or service that may be provided''.
SEC. 405. CONTINUATION OF PREWELFARE REFORM WAIVERS.
Section 415 (42 U.S.C. 615) is amended by adding at the end the
following new subsection:
``(e) Continuation of Waivers Approved Before Date of Enactment of
Welfare Reform.--Notwithstanding paragraphs (1)(A) and (2)(A) of
subsection (a), with respect to any State that is operating under a
waiver described in that subsection which would otherwise expire on a
date that occurs during the period that begins on September 30, 2002,
and ends on September 30, 2008, the State may elect to continue to
operate under that waiver, on the same terms and conditions as applied
to the waiver on the day before such date, through September 30,
2008.''.
SEC. 406. STATE OPTION TO ALIGN FOSTER CARE AND ADOPTION ASSISTANCE
ELIGIBILITY WITH TANF ELIGIBILITY.
(a) Foster Care.--Section 472 (42 U.S.C. 672) is amended by adding
at the end the following:
``(i)(1) Notwithstanding any other provision of this part, subject
to paragraph (2), for purposes of determining whether a child is
eligible for foster care maintenance payments under this part, a child
shall be treated as a child who would have received aid under the State
plan approved under section 402 (as in effect on July 16, 1996, or at
State option, as in effect on December 31, 2002) only if the child
meets the income and resource standards and methodologies for
determining eligibility in effect under such plan (as so in effect).
``(2) For purposes of applying this subsection, a State may
increase the income and resource standards and methodologies referred
to in paragraph (1) up to the level of the income and resource
standards and methodologies under the State plan under part A (as in
effect as of the date of determining such eligibility).''.
(b) Adoption Assistance.--Section 473 (42 U.S.C. 673) is amended by
adding at the end the following:
``(d)(1) Notwithstanding any other provision of this part, subject
to paragraph (2), for purposes of determining whether a child is
eligible for adoption assistance under this part, a child shall be
treated as a child who would have received aid under the State plan
approved under section 402 (as in effect on July 16, 1996, or at State
option, as in effect on December 31, 2002) only if the child meets the
income and resource standards and methodologies for determining
eligibility in effect under such plan (as so in effect).
``(2) For purposes of applying this subsection, a State may
increase the income and resource standards and methodologies referred
to in paragraph (1) up to the level of the income and resource
standards and methodologies under the State plan under part A (as in
effect as of the date of determining such eligibility).''.
SEC. 407. PROMOTING WORK AND RESPONSIBILITY AMONG ALL FAMILIES WITH
CHILDREN.
(a) Eligibility for TANF for Legal Immigrants.--
(1) Exception to 5-year bar.--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:
``(L) Assistance or benefits 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 amendments.--
(A) Section 402(b) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1612(b)) is amended--
(i) in paragraph (2)--
(I) in subparagraph (A)(i), by
striking ``(3)(C)'' and inserting
``(3)(B)'';
(II) in subparagraph (A)(ii), by
striking ``subparagraph (C)'' and
inserting ``subparagraph (B)''; and
(III) in subparagraph (E), by
striking ``Medicaid exception'' and all
that follows through ``program),
section'' and inserting ``Exception for
certain indians.--Section''; and
(ii) in paragraph (3), by striking
subparagraph (A) and redesignating
subparagraphs (B) and (C) as subparagraphs (A)
and (B), respectively.
(B) Section 408(e) (42 U.S.C. 608(e)) is amended to
read as follows:
``(e) Application to Qualified Aliens.--Except as provided in
subsection (f), 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) shall be eligible for any
benefit or service under the State program funded under this part or
with qualified State expenditures (as defined in section
409(a)(7)(B)(i)) in the same manner as a citizen is eligible for such
benefit or service under such program.''.
(b) Federal 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 first sentence 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 first sentence, 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 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; 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 or benefits 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 section 431(b))'' after ``United States''.
SEC. 408. AUTHORITY TO TRANSFER TANF FUNDS TO CARRY OUT AN ACCESS TO
JOBS PROJECT OR A REVERSE COMMUTE PROJECT.
Section 404(d)(1) (42 U.S.C. 604(d)(1)) is amended by adding at the
end the following:
``(C) An access to jobs project or a reverse
commute project under a grant made under section 3037
of the Transportation Equity Act for the 21st Century
(49 U.S.C. 5309 note).''.
TITLE V--HEALTHY CHILDREN
SEC. 501. REVISION 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), is
further redesignated as subsection (i) and is amended by
striking ``2002'' and inserting ``2008''.
(2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C.
1396a(e)(1)(B)) is amended by striking ``2002'' 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)(1), is amended by inserting after subsection (f) the following:
``(g) Additional Provisions.--
``(1) Collection and reporting of participation
information.--Each State shall--
``(A) collect and submit to the Secretary, in a
format specified by the Secretary, information on
average monthly enrollment and average monthly
participation rates for adults and children under this
section; and
``(B) make such information publicly available.
Such information shall be submitted under subparagraph (A) at
the same time and frequency in which other enrollment
information under this title is submitted to the Secretary.
Using such information, the Secretary shall submit to Congress
annual reports concerning such rates.''.
(e) Coordination of Work.--Section 1925(g) (42 U.S.C. 1396r-6(g)),
as added by subsection (d), is amended by adding at the end the
following 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), as
amended by subsections (a)(2)(A), (c)(1), and (d), is further
amended by adding at the end 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) 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)''.
(h) 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 the date of enactment of this
Act, without regard to whether or not final regulations to
carry out such amendments have been promulgated by such date.
(2) 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. 502. 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 (including under a
waiver authorized by the Secretary), notwithstanding sections 401(a),
402(b), 403, and 421 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, for aliens who are lawfully
residing in the United States (including battered aliens described in
section 431(c) of such Act) 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) Notwithstanding section 421 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996, 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.''.
(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 categories of lawful resident alien
pregnant women and children), but only with respect to
an eligibility category under this title, if the same
eligibility category has been elected under such
section for purposes of 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, whether or not
regulations implementing such amendments have been issued.
SEC. 503. SECOND CHANCE HOMES.
(a) Authority To Award Grants.--
(1) In general.--The Secretary of Health and Human Services
(referred to in this section as the ``Secretary'') is
authorized to award grants to eligible entities to enable such
eligible entities to carry out the activities described in
subsection (d).
(2) Process.--The Secretary shall award grants under this
section on a competitive basis, after reviewing all
applications submitted under subsection (c).
(b) Eligible Entities.--
(1) In general.--To be eligible to receive a grant under
this section an entity shall be--
(A) a State;
(B) a unit of local government;
(C) an Indian tribe; or
(D) a public or private nonprofit agency,
organization, or institution, or other nonprofit
entity, including a nonprofit urban Indian organization
or an Indian group or community that is not an Indian
tribe.
(2) Definitions.--In this section--
(A) Indian tribe.--The term ``Indian tribe'' has
the meaning given such term in section 4 of the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 450b).
(B) State.--The term ``State'' means each of the 50
States, the District of Columbia, the Commonwealth of
Puerto Rico, Guam, American Samoa, the United States
Virgin Islands, and the Commonwealth of the Northern
Mariana Islands.
(c) Application.--
(1) In general.--An eligible entity that desires a grant
under this section shall submit an application to the Secretary
at such time, in such manner, and containing such information
as the Secretary shall reasonably require.
(2) Priority.--In awarding grants under this section, the
Secretary shall give priority to an eligible entity that
submits an application--
(A) proposing to establish a new second chance
home, especially in a rural area or tribal community;
(B) proposing to collaborate with a non-profit
entity in establishing, expanding, or enhancing a
second chance home; or
(C) demonstrating that the eligible entity will use
funds under a State temporary assistance for needy
families program under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) to support a
portion of the operating costs of the applicable second
chance home.
(d) Use of Funds.--
(1) In general.--An eligible entity that receives a grant
under this section shall use such grant funds to establish,
expand, or enhance a second chance home.
(2) Second chance home.--In this section, the term ``second
chance home'' means a community-based, adult-supervised group
home that provides young mothers and their children with a
supportive and supervised living arrangement in which such
mothers are required to learn parenting skills, including child
development, family budgeting, health and nutrition, and other
skills to promote their long-term economic independence and the
well-being of their children.
(3) Requirement.--A second chance home that receives grant
funds under this section shall provide services to mothers who
are not more than 23 years of age and their children.
(e) Matching Funds.--The Secretary shall not award a grant to an
eligible entity under this section unless the eligible entity agrees
that, with respect to the costs to be incurred in carrying out the
activities for which the grant was awarded, the eligible entity will
make available non-Federal contributions in an amount equal to not less
than 20 percent of the Federal funds provided under the grant. Such
contributions may be provided in cash or in kind, fairly valued,
including plant, equipment, or services.
(f) Duration.--Grants under this section shall be awarded for a
period of 5 years.
(g) Contract for Evaluation.--
(1) In general.--The Secretary shall enter into a contract
with a public or private entity for the evaluation of the
second chance homes that are supported by grant funds under
this section.
(2) Information.--The evaluation shall include the
collection of information about the relevant characteristics of
individuals who benefit from second chance homes such as those
that are supported by grant funds under this section and what
services provided by such second chance homes are most
beneficial to such individuals.
(3) Report.--
(A) In general.--The entity conducting the
evaluation under this subsection shall submit to
Congress an interim report and a final report in
accordance with subparagraph (B) containing the results
of the evaluation.
(B) Date.--
(i) Interim report.--The interim report
shall be submitted not later than 2 years after
the date on which the entity enters into a
contract.
(ii) Final report.--The final report shall
be submitted not later than 5 years after the
date on which the entity enters into a
contract.
(h) Technical Assistance.--
(1) In general.--From amounts appropriated under subsection
(i)(1), the Secretary may use an amount not to exceed $500,000
to enter into a contract, with a public or private entity, for
the provision of technical assistance to eligible entities
receiving grant funds under this section.
(2) Conferences.--The technical assistance provided under
this section may include conferences for the purpose of
disseminating information concerning best practices for second
chance homes.
(i) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this Act, other than subsection (g), $32,000,000 for
fiscal year 2004.
(2) Evaluation.--There is authorized to be appropriated to
carry out subsection (g), $1,000,000 for fiscal year 2004.
(3) Availability.--Any amounts authorized under the
authority of paragraphs (1) and (2) shall remain available
until expended.
TITLE VI--PUBLIC ACCOUNTABILITY
SEC. 601. PUBLIC AVAILABILITY OF STATE PROGRAM AND FINANCIAL DATA
SUBMISSIONS.
Section 411(a) (42 U.S.C. 611(a)) is amended by adding at the end
the following new paragraph:
``(8) Public availability of report.--The State shall make
publicly available at the time of submission of each report
required under paragraph (1) for a fiscal quarter a copy of the
report for that fiscal quarter, including by posting of the
copy on the Internet website for the State agency administering
the State program funded under this part.''.
SEC. 602. STUDY AND GUIDELINES REGARDING COMPLIANCE WITH
NONDISCRIMINATION PROVISIONS.
(a) GAO Study.--
(1) In general.--The Comptroller General of the United
States shall conduct a study to determine--
(A) the extent to which States have complied with
the requirement of section 408(d) of the Social
Security Act (42 U.S.C. 608(d)) that the provisions of
law referred to in that section apply to any program or
activity which receives funds provided under part A of
title IV of the Social Security Act (42 U.S.C. 601 et
seq.); and
(B) recommendations for improving such compliance.
(2) 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 paragraph (1).
(b) Best Practices Guidelines.--Not later than 1 year after the
date of enactment of this Act, the Secretary of Health and Human
Services shall issue a best practices guide to States that contains
methods and procedures for ensuring compliance with section 408(d) of
such Act (42 U.S.C. 608(d)).
SEC. 603. 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. 604. RESEARCH AND DEVELOPMENT.
(a) Longitudinal Studies of TANF Recipients.--Section 413 (42
U.S.C. 613) is amended by striking subsections (d) and (e) and
inserting the following:
``(d) Longitudinal Studies of TANF Applicants and Recipients To
Determine the Factors That Contribute to Positive Employment and Family
Outcomes.--
``(1) In general.--The Secretary, directly or through
grants, contracts, or interagency agreements, shall conduct
longitudinal studies in 10 States of a representative sample of
families that receive, and applicants for, assistance in a
State program funded under this part or under a program funded
with qualified State expenditures (as defined in section
409(a)(7)(B)(i)).
``(2) Requirements.--The studies conducted under this
subsection shall follow families that leave assistance, those
that receive assistance throughout the study period, and those
diverted from assistance programs. The studies shall gather
information on--
``(A) family and adult demographics (including
race, ethnicity, primary language, barriers to
employment, educational status of adults, prior work
history, and prior history of welfare receipt);
``(B) family income (including earnings,
unemployment compensation, and child support);
``(C) benefit receipt (including benefits under the
food stamp program, the medicaid program, the State
children's health insurance program, earned income tax
credits, and housing assistance);
``(D) reasons for leaving or returning to
assistance programs;
``(E) work participation status and activities,
including the scope and duration of work activities;
``(F) sanction status (including reasons for
sanction);
``(G) time limit status (including months remaining
on Federal and State time limits);
``(H) recipient views on program participation; and
``(I) other measures of family well-being over a 5-
year period.
``(3) Comparability.--The Secretary shall to the extent
possible ensure that the studies produce comparable results and
information.
``(4) Reports.--The Secretary shall publish--
``(A) not later than December 31, 2006, interim
findings from at least 12 months of longitudinal data;
and
``(B) not later than December 31, 2008, findings
from at least 36 months of longitudinal data.
``(e) Longitudinal Studies of Employment and Earnings of TANF
Leavers.--
``(1) In general.--The Secretary, directly or through
grants, contracts, or interagency agreements shall conduct a
study in each eligible State of a statistically relevant cohort
of individuals who leave the State program funded under this
part during fiscal year 2004 and individuals who leave the
program during fiscal year 2006, which uses State unemployment
insurance data to track the employment and earnings status of
the individuals during the 3-year period beginning at the time
the individuals leave the program.
``(2) Reports.--The Secretary shall annually publish the
findings of the studies conducted pursuant to paragraph (1) and
shall annually publish the earnings data used in making
determinations under section 407(b).''.
(b) Extension of Funding of Studies and Demonstrations.--Section
413(h) (42 U.S.C. 613(h)) is amended to read as follows:
``(h) Funding of Studies and Demonstrations.--Out of any money in
the Treasury of the United States not otherwise appropriated, there are
appropriated $15,000,000 for each fiscal year beginning with 1997 for
the purpose of paying--
``(1) the cost of conducting the research described in
subsection (a);
``(2) the cost of developing and evaluating innovative
approaches for reducing welfare dependency and increasing the
well-being of minor children under subsection (b);
``(3) the cost of conducting studies described in
subsections (d) and (e);
``(4) the Federal share of any State-initiated study
approved under subsection (f); and
``(5) an amount determined by the Secretary to be necessary
to operate and evaluate demonstration projects, relating to
this part, that are in effect or approved under section 1115 as
of August 22, 1996, and are continued after such date.''.
(c) Inclusion of Disability Status in Information States Report
About TANF Families.--Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is
amended by adding at the end the following:
``(xviii) Whether the head of the family
has a physical or mental impairment.''.
(d) Annual Report to Congress To Include Greater Detail About State
Programs Funded Under TANF.--Section 411(b)(3) (42 U.S.C. 611(b)(3)) is
amended to read as follows:
``(3) the characteristics of each State program funded
under this part, including, with respect to each program funded
with amounts provided under this part or with amounts the
expenditure of which is counted as a qualified State
expenditure for purposes of section 409(a)(7)--
``(A) the name of the program;
``(B) whether the program is authorized at a sub-
State level (such as at the county level);
``(C) the purpose of the program;
``(D) the main activities of the program;
``(E) the total amount received by the program from
amounts provided under this part;
``(F) the total of the amounts received by the
program that are amounts the expenditure of which are
counted as qualified State expenditures for purposes of
section 409(a)(7);
``(G) the total funding level of the program;
``(H) the total number of individuals served by the
program, and the number of such individuals served
specifically with funds provided under this part or
with amounts the expenditure of which are counted as
qualified State expenditures for purposes of section
409(a)(7); and
``(I) the eligibility criteria for participation in
the program;''.
(e) Enhancement of Understanding of the Reasons Individuals Leave
State TANF Programs.--
(1) Case closure reasons.--
(A) In general.--Section 411(a)(1) (42 U.S.C.
611(a)(1)) is amended by adding at the end the
following:
``(C) Development of comprehensive list of case
closure reasons.--The Secretary shall develop, in
consultation with States and policy experts, a
comprehensive list of reasons why individuals leave
State programs funded under this part. The list shall
be aimed at substantially reducing the number of case
closures under the programs for which a reason is not
known.''.
(B) Public comment.--Not later than December 31,
2005, the Secretary of Health and Human Services shall
publish for public comment regulations that list the
new case closure reasons to be used in accordance with
section 411(a)(1)(A)(xvi)(VI) of the Social Security
Act (42 U.S.C. 611(a)(1)(A)(xvi)(VI) (as amended by
paragraph (2)).
(2) Inclusion in quarterly state reports.--Section
411(a)(1)(A)(xvi) (42 U.S.C. 611(a)(1)(A)(xvi)) is amended--
(A) in subclause (IV), by striking ``or'' at the
end;
(B) in subclause (V), by striking the period at the
end and inserting ``; or''; and
(C) by adding at the end the following:
``(VI) a reason specified in the
list developed under subparagraph
(C).''.
(f) Standardized State Plans.--Section 402 (42 U.S.C. 602) is
amended by adding at the end the following:
``(d) Standardized Format.--Not later than February 1, 2004, the
Secretary, after consulting with the States, shall promulgate
regulations for public comment that establish a standardized format
which States shall use to submit plans under subsection (a) for fiscal
year 2005 and thereafter.''.
(g) Annual Study and Report on Territory Programs Expenditures and
Economic Conditions.--
(1) Annual expenditure reports.--Beginning with fiscal year
2004, the Secretary of Health and Human Services annually shall
collect and report to Congress expenditure data with respect to
a fiscal year for Puerto Rico, the Virgin Islands, Guam, and
American Samoa concerning temporary assistance to needy
programs funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) that are conducted by such
territories and any related programs conducted by such
territories that are designed to provide assistance to needy
families.
(2) Annual report on economic conditions.--Beginning with
fiscal year 2004, the Director of the Bureau of the Census
shall submit to Congress annual reports on the economic
conditions in Puerto Rico, the Virgin Islands, Guam, and
American Samoa. Each report shall include information
concerning the impact of the economic conditions described in
the report on recipients and former recipients of assistance
under temporary assistance to needy programs funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) that are conducted by such territories.
SEC. 605. 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. 606. GRANTS TO IMPROVE STATES' POLICIES AND PROCEDURES FOR
ASSISTING INDIVIDUALS WITH BARRIERS TO WORK.
Section 403(a) (42 U.S.C. 603(a)), as amended by section 207, is
amended by adding at the end the following:
``(8) Grants to improve states' policies and procedure for
assisting individuals with barriers to work.--
``(A) Authority to make grants.--
``(i) In general.--The Secretary shall make
grants to each State for the period of fiscal
years 2004 through 2007 and to be used in
accordance with the requirements of this
paragraph.
``(ii) Amount of grant.--
``(I) In general.--Subject to
subclause (II) and clauses (iii) and
(iv), the Secretary shall have
discretion to set the amount of each
State's grant under this paragraph.
``(II) Minimum and maximum
grants.--No grant made under this
paragraph shall be less than $750,000
or more than $3,000,000.
``(iii) Limitation.--The total amount of
grants provided to States under this paragraph
for the period of fiscal years 2004 through
2007 shall not exceed $75,000,000.
``(iv) Criteria for determining amount of
grant.--In determining the amount of a State's
grant under this paragraph, the Secretary shall
take into account the size of the population of
the State and the extent to which the advisory
review panel established with funds made
available under the grant will need to review
diverse policies among counties or other sub-
State entities within the State that have
authority to design and implement programs
under the State TANF program.
``(B) Establishment of advisory review panel.--Each
State shall use the funds provided under a grant made
under subparagraph (A) to establish an advisory review
panel to improve the State's policies and procedures
for assisting individuals under the State TANF program
who have barriers to work.
``(C) Membership.--
``(i) In general.--A advisory review panel
established under this paragraph shall consist
of the following:
``(I) Representatives of the State
agency responsible for administering
the State TANF program.
``(II) Representatives from other
States agencies with expertise in
providing services to individuals with
disabilities or other barriers to work,
such as vocational rehabilitation
services.
``(III) Parents with barriers to
work who are recipients of cash
assistance or support services under
the State TANF program.
``(IV) Individuals or
representatives of entities with
expertise in designing and implementing
policies and programs to successfully
serve individuals with barriers to
work.
``(ii) Chair.--
``(I) In general.--Subject to
subclause (II), the Chair of the panel
shall be appointed by the chief
executive officer of the State.
``(II) Limitation.--The Chair shall
not be a State employee.
``(iii) Coordination with existing
panels.--A State should coordinate the
establishment of an advisory review panel under
this paragraph with other advisory panels
established as of October 1, 2003, that serve
recipients of assistance under the State TANF
program.
``(D) Duties.--
``(i) In general.--In seeking to improve a
State's policies and procedures for assisting
individuals with barriers to work, an advisory
review panel established under this paragraph
shall hold meetings, hire support staff, enter
into contracts for independent evaluations, and
submit the reports required under subparagraph
(E).
``(ii) Site visits; public hearings.--To
the extent it determines appropriate, an
advisory review panel established under this
paragraph may--
``(I) conduct site visits to State
or local agencies responsible for
administering the State TANF program;
and
``(II) hold public hearings.
``(iii) Rule of construction.--Nothing in
this paragraph shall be construed as
authorizing an advisory review panel
established under this paragraph to resolve
complaints filed by individuals or entities
related to possible violations of laws
protecting civil rights.
``(E) Reports.--An advisory review panel
established under this paragraph shall submit to the
Secretary on the dates described below the following
reports:
``(i) On December 31, 2004, a report
identifying areas in the State where
improvement is needed with respect to assisting
individuals with barriers to work and steps the
State is taking or plans to take to make those
improvements.
``(ii) On December 31, 2005, a progress
report on how the improvements identified in
the report described in clause (i) are being
made and regarding whether additional
improvements are needed, and if so, the plans
to make those improvements.
``(iii) On December 31, 2006, a final
report describing how the State's programs
funded with funds made available under the
State TANF program have been improved to assist
individuals with barriers to work and
identifying ongoing efforts that will be needed
to maintain the improvements made.
``(F) Definitions.--In this paragraph:
``(i) Barriers to work.--The term `barriers
to work' includes physical and mental
impairments (including learning disabilities),
domestic and sexual violence, substance abuse,
limited English proficiency, or low literacy
levels. Such term may include transportation,
child care and caring for a family member with
a severe disability if those issues create a
functional barrier to work for a recipient of
assistance under the State TANF program.
``(ii) State tanf program.--The term `State
TANF program' means the State program funded
under this part and a program funded with qualified State expenditures
(as defined in section 409(a)(7)(B)(i)).
``(G) Appropriations.--
``(i) In general.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated to carry
out this paragraph, $75,000,000 for the period
of fiscal years 2004 through 2007.
``(ii) Technical assistance.--Of the amount
appropriated under clause (i), $7,000,000 shall
be used by the Secretary to provide technical
assistance on barriers to work and related
issues.''.
SEC. 607. ENSURING A PROFESSIONAL TANF PROGRAM STAFF.
(a) State Plan Requirement.--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 outline how the
State intends to ensure a professional
workforce with the resources, skills, and
expertise necessary to successfully carry out
the program, including an outline of the
State's plans to provide program staff with
training on program information and services
and information on referral of recipients to
appropriate programs and services for which
recipients are eligible.''.
(b) GAO Survey, Evaluation, and Report.--
(1) In general.--The Comptroller General of the United
States shall conduct a thorough survey and evaluation of State
activities on workforce development for professional staff
delivering benefits or services under the temporary assistance
to needy families program under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) or services or
benefits related to that program.
(2) Requirements.--The survey and evaluation conducted
under paragraph (1) shall be designed to include the following
information:
(A) Information on the qualifications, education,
and training for the staff described in paragraph (1),
and the amount of turnover among such staff.
(B) An assessment of the range of caseloads such
staff is responsible for and the effects of caseloads
on family outcomes and satisfaction with the temporary
assistance to needy families program.
(2) 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 survey and evaluation conducted under
paragraph (1).
TITLE VII--EFFECTIVE DATE
SEC. 701. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this Act, the
amendments made by this Act shall take effect on October 1, 2003, and
shall apply to payments under part A 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) 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 Act, the State plan shall not be regarded as failing to
comply with the requirements of such section 402(a) 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.
<all>