[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2524 Introduced in Senate (IS)]
107th CONGRESS
2d Session
S. 2524
To amend part A of title IV of the Social Security Act to reauthorize
the temporary assistance to needy families program, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 15 (legislative day, May 9), 2002
Mr. Bayh (for himself, Mr. Carper, Mr. Graham, Mrs. Clinton, Mr.
Lieberman, Mr. Miller, Mrs. Carnahan, Mr. Nelson of Nebraska, and Mr.
Nelson of Florida) introduced the following bill; which was read twice
and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend part A of title IV of the Social Security Act to reauthorize
the temporary assistance to needy families program, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; AMENDMENTS TO SOCIAL
SECURITY ACT.
(a) Short Title.--This Act may be cited as the ``Work and Family
Act of 2002''.
(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--REQUIRING WORK
Sec. 101. Increase in work participation rates.
Sec. 102. Elimination of separate work participation rate for 2-parent
families.
Sec. 103. Credits for purposes of determining monthly work
participation rates.
Sec. 104. Child support collection credit.
Sec. 105. Phaseout of caseload reduction credit.
Sec. 106. Removal of recipients who qualify for supplemental security
income benefits from work participation
rate calculation for entire year.
Sec. 107. 40-hour work week.
Sec. 108. Increase in mandatory funding for child care.
Sec. 109. State option for participation requirement exemption for
individuals overcoming barriers to work.
Sec. 110. Competitive grants for public-private partnerships for
educational opportunities for career
advancement; State option to establish
parents as scholars program.
Sec. 111. Transitional jobs programs.
Sec. 112. Ensuring TANF funds are not used to displace public
employees; application of workplace laws to
welfare recipients.
TITLE II--STRENGTHENING FAMILIES
Subtitle A--Responsible Fatherhood
Sec. 201. Block grants to States to encourage media campaigns.
Sec. 202. Responsible fatherhood block grant.
Sec. 203. National clearinghouse for responsible fatherhood programs.
Sec. 204. Policy reviews and demonstration projects to coordinate
services for low-income, noncustodial
parents.
Subtitle B--Additional Provisions To Strengthen Families
Sec. 211. Ban on imposition of stricter eligibility criteria for 2-
parent families.
Sec. 212. Noncustodial parent employment grant program.
Subtitle C--Teen Pregnancy Prevention Grants
Sec. 221. Teen pregnancy prevention grants.
Sec. 222. Teen pregnancy prevention resource center.
Sec. 223. Establishing national goals to prevent teen pregnancy.
Subtitle D--Child Support Distribution to Families First
Chapter 1--Distribution of Child Support
Sec. 231. Distribution of child support collected by States on behalf
of children receiving certain welfare
benefits.
Chapter 2--Demonstrations of Expanded Information and Enforcement
Sec. 241. Guidelines for involvement of public non-IV-D child support
enforcement agencies in child support
enforcement.
Sec. 242. Demonstrations involving establishment and enforcement of
child support obligations by public non-IV-
D child support enforcement agencies.
Sec. 243. GAO report to Congress on private child support enforcement
agencies.
Sec. 244. Effective date.
Chapter 3--Expanded Enforcement
Sec. 251. Decrease in amount of child support arrearage triggering
passport denial.
Sec. 252. Use of tax refund intercept program to collect past-due child
support on behalf of children who are not
minors.
Sec. 253. Garnishment of compensation paid to veterans for service-
connected disabilities in order to enforce
child support obligations.
Chapter 4--Miscellaneous
Sec. 261. Report on undistributed child support payments.
Sec. 262. Use of new hire information to assist in administration of
unemployment compensation programs.
Sec. 263. Immigration provisions.
Sec. 264. Increase in payment rate to States for expenditures for
short-term training of staff of certain
child welfare agencies.
Sec. 265. Correction of errors in conforming amendments in the welfare-
to-work and child support amendments of
1999.
Sec. 266. Technical correction to changed dates for abstinence
evaluation.
TITLE III--PROVIDING FLEXIBILITY AND RESOURCES
Subtitle A--Resources Under TANF
Sec. 301. Reauthorization of State family assistance grants.
Sec. 302. Contingency fund.
Sec. 303. Reauthorization of supplemental grants for population
increases.
Sec. 304. Grants to States for administrative costs of implementing
increased work requirements and to enhance
State capabilities and caseworker training.
Sec. 305. Credit for State expenditures to carry out the purposes of
TANF.
Sec. 306. Reauthorization of grants for Indian tribes and penalty for
failure to maintain historic State effort.
Sec. 307. Clarification of authority of States to use TANF funds
carried over from prior years to provide
TANF benefits and services.
Sec. 308. Promoting work and responsibility among all families with
children.
Sec. 309. Data collection and reporting.
Sec. 310. Definition of assistance.
Sec. 311. Authority to use TANF funds for housing benefits.
Subtitle B--Resources Under Other Programs
Sec. 321. Restoration of funding for the Social Services Block Grant.
Sec. 322. One-year extension and revision and simplification of the
transitional medical assistance program
(TMA).
Sec. 323. Optional coverage of legal immigrants under the medicaid
program and title XXI.
Sec. 324. Pathway to self-sufficiency grants to improve coordination of
assistance for low-income families.
Sec. 325. GAO study on impact of ban on SSI benefits for legal
immigrants.
TITLE IV--EFFECTIVE DATE
Sec. 401. 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.
(a) In General.--Congress makes the following findings regarding
the reauthorization of 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.):
(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 more
than 50 percent, and approximately \2/3\ of welfare recipients
who have left the cash assistance rolls have left for work.
(3) 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.
(4) Child poverty rates are improving, but more must be
done to reduce poverty in the 2,000,000 families who are still
struggling.
(5) 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.
(b) Responsible Fatherhood.--Congress makes the following findings
regarding responsible fatherhood:
(1) Nearly 24,000,000 children in the United States, or 36
percent of all such children, live apart from their biological
father.
(2) Sixty percent of couples who divorce have at least 1
child.
(3) The number of children living with only a mother
increased from just over 5,000,000 in 1960, to 20,000,000 in
2001, and between 1981 and 1991 the percentage of children
living with only 1 parent increased from 19 percent to 27
percent.
(4) Forty percent of children who live in households
without a father have not seen their father in at least 1 year
and 50 percent of such children have never visited their
father's home.
(5) The most important factor in a child's upbringing is
whether the child is brought up in a loving, healthy,
supportive environment.
(6) Children who live without contact with their biological
father are, in comparison to children who have such contact--
(A) 5 times more likely to live in poverty;
(B) more likely to bring weapons and drugs into the
classroom;
(C) twice as likely to commit crime;
(D) twice as likely to drop out of school;
(E) twice as likely to be abused;
(F) more likely to commit suicide;
(G) more than twice as likely to abuse alcohol or
drugs; and
(H) more likely to become pregnant as teenagers.
(7) Violent criminals are overwhelmingly males who grew up
without fathers.
(8) Between 20 and 30 percent of families in poverty are
headed by women who have suffered domestic violence during the
past year and between 40 and 60 percent of women with children
receiving welfare were abused sometime during their life.
(9) Responsible fatherhood includes active participation in
financial support and child care, as well as the formation and
maintenance of a positive, healthy, and nonviolent relationship
between father and child and a cooperative relationship between
parents.
(10) States should be encouraged to implement programs that
provide support for responsible fatherhood, promote marriage,
and increase the incidence of marriage, and should not be
restricted from implementing such programs.
(11) Fatherhood programs should promote and provide support
services for--
(A) loving and healthy relationships between
parents and children; and
(B) cooperative parenting.
(12) There is a social need to reconnect children and
fathers.
(13) The promotion of responsible fatherhood and
encouragement of married 2-parent families should not--
(A) denigrate the standing or parenting efforts of
single mothers or other caregivers;
(B) lessen the protection of children from abusive
parents; or
(C) compromise the safety or health of the
custodial parent;
but should increase the chance that children will have 2 caring
parents to help them grow up healthy and secure.
(14) The promotion of responsible fatherhood must always
recognize and promote the values of nonviolence.
(15) For the future of the United States and the future of
our children, Congress, States, and local communities should
assist parents to become more actively involved in their
children's lives.
(16) Child support is an important means by which a parent
can take financial responsibility for a child and emotional
support is an important means by which a parent can take social
responsibility for a child.
(c) Teen Pregnancy Prevention.--Congress makes the following
findings regarding the prevention of teen pregnancy:
(1) The United States is making significant progress in
reducing teen births, with national teen birth rates declining
22 percent since 1991.
(2) Despite declining national rates, teen birth rates went
up in 11 States between 1999 and 2000, and the national teen
birth rate for Hispanic teens who are 15 to 19 years old also
increased between 1999 and 2000.
(3) In the United States 4 out of 10 girls get pregnant at
least once by age 20, nearly 1,000,000 girls each year. There
are nearly 500,000 teen births each year.
(4) Although teen pregnancy and birth rates are declining,
the United States still has the highest rates of teen pregnancy
and birth in the industrialized world, nearly twice as high as
the next highest nation, Great Britain.
(5) Some 52 percent of all mothers on welfare had their
first child as a teenager, according to the most recent data
available. Almost \1/2\ of all teen mothers and over \3/4\ of
unmarried teen mothers began receiving welfare within 5 years
of the birth of their first child.
(6) At present, 79 percent of births to teen mothers are
out-of-wedlock and nearly \1/2\ of all non-marital first births
occur to teens.
(7) Children of teen mothers are more likely to be born
prematurely and at low birth weight, to perform poorly in
school, and to suffer abuse and neglect than children born to
older women. Girls born to teen mothers are 22 percent more
likely to become teen mothers, and sons of teen mothers are
more likely to end up in jail.
(8) Teen mothers are likely to have a second birth
relatively soon, about \1/4\ of teenage mothers have a second
child within 24 months of the first birth, which can further
impede the teen mother's ability to finish school or keep a job
and to escape poverty.
(9) Teen pregnancy and childbearing costs United States
taxpayers at least $7,000,000,000 per year.
(10) Teen marriages are twice as likely to fail as
marriages where the woman is at least 25 years old.
(11) Many of the fathers of children born to teen mothers
are older. Half of those young men who impregnate a minor teen
(under age 18) are 3 or more years older than the young woman.
Eight of 10 teen fathers do not marry the mothers of their
first children and these absent fathers pay less than $800
annually in child support, often because they are quite poor
themselves.
(12) Over 90 percent of both adults and teens believe it is
important that teens be given a strong message from society
that they should abstain from sex until they are at least out
of high school. A substantial majority of both adults and teens
also believe that, while teens should not be sexually active,
those that are should have access to contraception.
(13) A synthesis of research on the effectiveness of media
campaigns in the United States suggests that these campaigns
may reduce risky health behaviors by as much as 5 to 10 percent
at a very low cost.
(14) There is rigorous evaluation research about a variety
of programs that are effective in delaying the onset of sex,
improving contraceptive use, or preventing pregnancy among
adolescents.
(15) Between 1995 and 2010, the number of girls who are 15
to 19 years old is estimated to increase by 2,200,000. If
current fertility rates remain the same, there would be a 26
percent increase in the number of pregnancies and births among
teenagers between 1995 and 2010.
TITLE I--REQUIRING WORK
SEC. 101. INCREASE IN WORK PARTICIPATION RATES.
Section 407(a) (42 U.S.C. 607(a)) is amended--
(1) by striking ``A State'' and inserting ``Subject to
paragraphs (2) and (3), a State'';
(2) in the table set forth in paragraph (1)--
(A) in the item relating to fiscal year 2002--
(i) by striking ``or thereafter'' and
inserting ``or 2003''; and
(ii) by striking the period; and
(B) by adding at the end the following:
``2004....................... 55
2005........................ 60
2006........................ 65
2007 or thereafter.......... 70.'';
and
(3) by striking paragraph (2) and inserting the following:
``(2) Cap on annual increase of minimum participation rate
for certain states.--In the case of a State for which the
minimum participation rate otherwise required by this section
for fiscal year 2002 was reduced, as of the date of enactment
of the Work and Family Act of 2002, by regulations or
otherwise, paragraph (3) shall not apply and the minimum
participation rate for such State with respect to fiscal year
2003 or any fiscal year thereafter shall equal the lessor of--
``(A) the rate specified in the table set forth in
paragraph (1) for such fiscal year; or
``(B) the minimum participation rate applicable to
the State under this section for the preceding fiscal
year increased by 20 percentage points.
``(3) Moratorium on increases in participation rates if
reduction in mandatory funding for child care.--In the case of
a State to which paragraph (2) does not apply, with respect to
fiscal year 2003 or any fiscal year thereafter, if the amount
appropriated for that fiscal year under subsection (a)(3) of
section 418 for making grants under that section to provide
child care assistance is less than the amount required to be
appropriated for such fiscal year as of the date of enactment
of the Work and Family Act of 2002--
``(A) the minimum participation rate otherwise
applicable under this section for the preceding fiscal
year shall continue to apply to such State for that
fiscal year and any succeeding fiscal year until the
amount appropriated for the fiscal year under
subsection (a)(3) of section 418 is at least equal to
the amount required to be so appropriated for that
fiscal year (as of such date of enactment); and
``(B) the minimum participation rate for any fiscal
year described in subparagraph (A) for which the amount
appropriated under subsection (a)(3) of section 418 is
restored to an amount that is at least equal to the
amount required to be so appropriated for such fiscal
year (as of such date of enactment) shall,
notwithstanding the rate that would otherwise apply to
the State under this section (after the application of
such paragraphs), be the minimum participation rate for
the preceding fiscal year increased by 5 percentage
points.''.
SEC. 102. ELIMINATION OF SEPARATE WORK PARTICIPATION RATE FOR 2-PARENT
FAMILIES.
Section 407(b) (42 U.S.C. 607(b)) is amended--
(1) in paragraph (1)(A), by striking ``subsection (a)(1)''
and inserting ``subsection (a)'';
(2) by striking paragraph (2);
(3) in paragraph (4), by striking ``paragraphs (1)(B) and
(2)(B)'' and inserting ``paragraph (1)(B)'';
(4) in paragraph (5), by striking ``rates'' and inserting
``rate''; and
(5) by redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively.
SEC. 103. CREDITS FOR PURPOSES OF DETERMINING MONTHLY WORK
PARTICIPATION RATES.
(a) Credit for Employment of Former Recipients.--Section 407(b)(1)
(42 U.S.C. 607(b)(1)) is amended by adding at the end the following:
``(C) Credit for employment of former recipients.--
``(i) In general.--Subject to clause (ii),
for purposes of subparagraph (B)(i), a State
may count an individual who has ceased to
receive assistance under the State program
funded under this part and who has earnings
from employment with respect to a month as a
family engaged in work for that month, not to
exceed 12 consecutive months from the date that
the individual first received such earnings.
``(ii) Limitation.--A State may not count
an individual described in clause (i) as
engaged in work for a month under this
subparagraph if the State counts that
individual under subparagraph (E) as being
engaged in work for such month.
``(iii) Data collection.--The State agency
responsible for administering the State
Directory of New Hires established under
section 453A, shall provide the State agency
responsible for administering the State program
funded under this part with access to such
directory for purposes of collecting
information necessary for the State to obtain
credit for the employment of individuals under
clause (i).''.
(b) Credit for Both Parents Meeting Work Requirements.--Section
407(b)(1) (42 U.S.C. 607(b)(1)), as amended by subsection (a), is
amended by adding at the end the following:
``(D) Credit for both parents meeting work
requirements.--For purposes of subparagraph (B)(i), a
State may count a family that includes 2 parents that
each are engaged in work for the month as 2 separate
families.''.
(c) Credit for Former Recipients With Higher Earnings.--Section
407(b)(1) (42 U.S.C. 607(b)(1)), as amended by subsections (a) and (b),
is amended by adding at the end the following:
``(E) Credit for former recipients with higher
earnings.--
``(i) In general.--Subject to clause (ii),
for purposes of subparagraph (B)(i), a State
may count a family that includes an individual
who has ceased to receive assistance under the
State program funded under this part and who
has earnings from employment with respect to a
month that are equal to at least 50 percent of
the average wage in the State (determined on
the basis of State unemployment data) as 1\1/2\
families.
``(ii) Limitations.--A State may not count
an individual described in clause (i) as
engaged in work for a month under this
subparagraph--
``(I) if the State counts that
individual under subparagraph (C) as
being engaged in work for such month;
or
``(II) for more than 12 consecutive
months from the date that the
individual first received earnings
described in clause (i).''.
(d) Partial Credit for Certain Individuals.--Section 407(b)(1) (42
U.S.C. 607(b)(1)), as amended by subsections (a), (b), and (c), is
amended by adding at the end the following:
``(G) Partial credit for certain recipients.--
``(i) In general.--Subject to clause (ii),
for purposes of subparagraph (B)(i), with
respect to a month, a State may include a
family that includes an individual described in
any of the following categories as \1/2\ of a
family engaged in work for that month:
``(I) Noncustodial parents
receiving employment services.--A
noncustodial parent who receives
employment services under any State
program, who has a child who receives
assistance under the State program
funded under this part (or who received
such assistance not more than 2 years
earlier), and who has an agreement to
comply with such parent's child support
obligations upon receiving such
services, not to exceed 12 consecutive
months from the date that the
individual first receives such
services.
``(II) Recipients working part-time
and addressing barriers to work.--A
recipient who is engaged for a month in
a core work activity described in
subsection (c)(1)(C)(i) for at least 15
hours per week and engaged for such
month in a self-sufficiency work
activity described in subsection
(c)(1)(C)(ii) for at least an
additional 15 hours per week.
``(III) Recipients of substantial
child care or transportation
assistance.--A recipient of 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 length of time over
which the assistance is received, and
shall take account of large one-time
transition payments).
``(IV) Recipients engaged in higher
education.--A recipient who is engaged
for a month in higher education
activities for at least 20 hours per
week.
``(ii) Limitation.--Not more than 30
percent of the number of individuals in all
families in a State who are subject to work
requirements under the State program may
consist of families described and counted under
clause (i).
``(iii) Rule of construction.--Nothing in
clause (i)(III) shall be construed as making a
recipient described in that clause subject to
any work requirements imposed under the State
program funded under this part.''.
SEC. 104. CHILD SUPPORT COLLECTION CREDIT.
Section 407(a) (42 U.S.C. 607(a)), as amended by section 101, is
amended by adding at the end the following:
``(3) Child support collection credit.--Beginning with
fiscal year 2003, 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 by which
the percentage of cases with child support collections for
children in families receiving assistance or formerly received
assistance under the State program funded under this part for
the preceding fiscal year increased over the percentage of such
cases with child support collections for the second preceding
fiscal year.''.
SEC. 105. PHASEOUT OF CASELOAD REDUCTION CREDIT.
Section 407(b)(3) (42 U.S.C. 607(b)(3)), as redesignated by section
102(5), is amended by adding at the end the following:
``(C) Elimination of credit beginning with fiscal
year 2006.--The minimum participation rate required
under this section shall not be reduced due to caseload
reductions (including under the regulations required by
subparagraph (A)) by more than--
``(i) 50 percent, in the case of fiscal
year 2004;
``(ii) 25 percent, in the case of fiscal
year 2005; and
``(iii) 0 percent in the case of fiscal
year 2006 and each fiscal year thereafter.''.
SEC. 106. REMOVAL OF RECIPIENTS WHO QUALIFY FOR SUPPLEMENTAL SECURITY
INCOME BENEFITS 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.
SEC. 107. 40-HOUR WORK WEEK.
(a) Core and Self-Sufficiency Hours.--Section 407(c)(1) (42 U.S.C.
607(c)(1)) is amended to read as follows:
``(1) Core and self-sufficiency hours.--
``(A) Minimum requirements applicable to all
recipients.--Subject to subparagraph (D), for purposes
of subsection (b)(1)(B)(i), a recipient is engaged in
work for a month in a fiscal year if the recipient is
participating in core work activities for at least 20
hours per week and in self-sufficiency activities for
at least an additional 20 hours per week (as
administered and certified by the State).
``(B) Credit for recipients exceeding core work
activities requirements but not meeting self-
sufficiency activities requirements.--Subject to
subparagraph (D), for purposes of subsection
(b)(1)(B)(i), with respect to a month--
``(i) if a family includes a recipient who
is engaged in core work activities for at least
24 hours per week for the month but not engaged
in self-sufficiency activities for the month, the State shall count the
family as 60 percent of a family being engaged in work for the month;
``(ii) if a family includes a recipient who
is engaged in core work activities for at least
24 hours per week and in self-sufficiency
activities for at least 1 but less than 5 hours
per week for the month, the State shall count
the family as 70 percent of a family being
engaged in work for the month;
``(iii) if a family includes a recipient
who is engaged in core work activities for at
least 24 hours per week and in self-sufficiency
activities for at least 5 but less than 9 hours
per week for the month, the State shall count
the family as 80 percent of a family being
engaged in work for the month;
``(iv) if a family includes a recipient who
is engaged in core work activities for at least
24 hours per week and in self-sufficiency
activities for at least 9 but less than 13
hours per week for the month, the State shall
count the family as 90 percent of a family
being engaged in work for the month;
``(v) if a family includes a recipient who
is engaged in core work activities for at least
24 hours per week and in self-sufficiency
activities for at least 13 but less than 16
hours per week for the month, the State shall
count the family as a family being engaged in
work for the month; and
``(vi) if a family includes a recipient who
is engaged in core work activities for at least
24 hours per week and in self-sufficiency
activities for at least 16 hours per week for
the month, the State shall count the family as
1\1/4\ families being engaged in work for the
month.
``(C) Definitions.--In this section:
``(i) Core work activities.--The term `core
work activities' means 1 or more activities
described in paragraphs (1) through (9) of
subsection (d).
``(ii) Self-sufficiency activities.--The
term `self-sufficiency activities' means 1 or
more activities described in paragraphs (1)
through (13) of subsection (d).
``(D) Limitation on applicability.--With respect to
fiscal year 2003 or any fiscal year thereafter, if the
amount appropriated for that fiscal year under
subsection (a)(3) of section 418 for making grants
under that section to provide child care assistance is
less than the amount required to be appropriated for
such fiscal year as of the date of enactment of the
Work and Family Act of 2002, this paragraph shall be
applied without regard to the amendments made by
section 107(a) of the Work and Family Act of 2002, and
shall continue to be so applied until the amount
appropriated for the fiscal year under subsection
(a)(3) of section 418 is at least equal to the amount
required to be so appropriated for that fiscal year, as
of such date of enactment.''.
(b) Work Activities.--
(1) Modifications of limitations on activities.--Section
407(d) (42 U.S.C. 607(d)) is amended--
(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) any activity that the State--
``(A) determines is reasonably related to--
``(i) providing assistance to needy
families so that children may be cared for in
their own homes or in the homes of relatives;
``(ii) ending the dependence of needy
parents on government benefits by promoting job
preparation, work, and marriage;
``(iii) preventing and reducing the
incidence of out-of-wedlock pregnancies and
establishing annual numerical goals for
preventing and reducing the incidence of these
pregnancies; or
``(iv) encouraging the formation and
maintenance of 2-parent families; or
``(B) certifies as achieving 1 or more purposes
described in subparagraph (A), such as (but not limited
to) language acquisition skills, including
participation in an English as a second language
program, education and training (including
postsecondary education), substance abuse treatment,
the receipt of mental health services, or the
acquisition of child development and parenting
skills.''.
(2) Recipients considered to be full-time employees by
their employer.--Section 407(c)(2) (42 U.S.C. 607(c)(2)) is
amended by adding at the end the following:
``(E) Recipients considered to be full-time
employees by their employer.--For purposes of
determining monthly participation rates under
subsection (b)(1)(B)(i), a recipient whose private
sector employer certifies that the recipient's hours of
work satisfy the employer's requirements applicable to
the employer's other employees for being a full-time
employee, and that the recipient is considered to be a
full-time employee of the employer, is deemed to be
engaged in work for a month.''.
(3) Single parent or relative with child under age 6.--
Section 407(c)(2)(B) (42 U.S.C. 607(c)(2)(B)) is amended--
(A) in the subparagraph heading, by striking ``in
work'' each place it appears and inserting ``in core
work activities''; and
(B) by striking ``in work'' and inserting ``in core
work activities''.
(4) Elimination of recipients completing secondary school
from limit on number of tanf recipients participating in
vocational educational training; option to permit up to half of
vocational educational training caseload to continue for up to
24 months.--
(A) In general.--Section 407(c)(2)(D) (42 U.S.C.
607(c)(2)(D)) is amended to read as follows:
``(D) Limitation on number of persons who may be
treated as engaged in work by reason of participation
in vocational educational activities.--
``(i) In general.--For purposes of
determining monthly participation rates under
subsection (b)(1)(B)(i), not more than 30
percent of the number of individuals in all
families in a State who are treated as engaged
in work for a month may consist of individuals
who are determined to be engaged in work for
the month by reason of participation in
vocational educational training.
``(ii) Option to permit \1/2\ of certain
individuals participating in vocational
educational activities to continue training for
up to 24 months.--Notwithstanding subsection
(d)(8), a State may--
``(I) permit not more than \1/2\ of
the number of individuals in all
families in a State who are treated as
engaged in work for the month under
clause (i) by reason of participation
in vocational educational training to
participate in such training for up to
24 months if the State certifies that
each such individual is pursuing a
certificate or degree that is likely to
result if the individual is allowed to
participate in such training; and
``(II) treat such individuals as
being engaged in work for a month for
purposes of subsection (b)(1)(B)(i).''.
(B) Conforming amendments.--
(i) 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''.
(ii) Section 407(d)(8) (42 U.S.C.
607(d)(8)) is amended by striking ``not'' and
inserting ``subject to subsection
(c)(2)(D)(ii), not''.
SEC. 108. INCREASE IN MANDATORY 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 fiscal year 2003;
``(H) $4,117,000,000 for fiscal year 2004;
``(I) $4,417,000,000 for fiscal year 2005;
``(J) $4,617,000,000 for fiscal year 2006; and
``(K) $4,717,000,000 for fiscal year 2007.''.
SEC. 109. STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMPTION FOR
INDIVIDUALS OVERCOMING BARRIERS TO WORK.
(a) In General.--Section 407(b) (42 U.S.C. 607(b)), as amended by
section 102, is amended by adding at the end the following:
``(5) State option for participation requirement exemption
for individuals overcoming barriers to work.--A State may, at
its option, not require an individual who is addressing a
barrier to work such as substance abuse, a mental health
disorder, depression, having experienced domestic violence (as
defined in section 402(a)(7)(B)), or being in need of
significant job training, to engage in work, and may disregard
such an individual in determining the participation rate under
subsection (a), for not more than 3 months during any 24-month
period.''.
(b) Conforming Amendment.--Paragraph (4) of section 407(b) (42
U.S.C. 607(b)), as redesignated by section 102(5), is amended in the
paragraph heading by striking ``exemptions'' and inserting ``exemption
for single custodial parent with an infant''.
SEC. 110. COMPETITIVE GRANTS FOR PUBLIC-PRIVATE PARTNERSHIPS FOR
EDUCATIONAL OPPORTUNITIES FOR CAREER ADVANCEMENT; STATE
OPTION TO ESTABLISH PARENTS AS SCHOLARS PROGRAM.
(a) Competitive Grants for Public-Private Partnerships for
Educational Opportunities for Career Advancement.--
(1) Authority to award grants.--
(A) In general.--The Secretary of Health and Human
Services and the Secretary of Labor (in this subsection
referred to as the ``Secretaries'') jointly shall award
grants in accordance with the requirements of this
subsection for each fiscal year for which an amount is
appropriated to carry out this subsection for projects
proposed by eligible applicants to encourage the
formation of public-private partnerships to provide
educational opportunities for individuals who receive
assistance under the temporary assistance to needy
families program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) and for
individuals who have ceased to receive assistance under
that program.
(B) Criteria.--The Secretaries shall award grants
under this subsection based on the following:
(i) The potential effectiveness of the
proposed project in carrying out the activities
described in paragraph (5).
(ii) Evidence of the ability of the
eligible applicant to leverage private, State,
and local resources to carry out such
activities.
(iii) Evidence of the ability of the
eligible applicant to coordinate with other
organizations at the State and local level in
carrying out such activities.
(2) Definition of eligible applicant.--In this subsection,
the term ``eligible applicant'' means--
(A) a public educational institution;
(B) an employer; or
(C) a local or regional consortium that includes
employers or employer associations, education and
training providers, local chambers of commerce, or
providers of social services.
(3) Application.--Each eligible applicant desiring a grant
under this subsection shall submit an application to the
Secretaries at such time, in such manner, and that includes--
(A) evidence, including letters of support,
demonstrating that the applicant will work with the
State in carrying out the activities described in
paragraph (5); and
(B) such other information as the Secretaries may
reasonably require.
(4) Determination of amount of grants; availability of
funds.--
(A) In general.--In determining the appropriate
amount of a grant to be awarded under this subsection,
the Secretaries shall provide an eligible applicant
with an approved application an amount sufficient to
ensure that the project has a reasonable opportunity to
be successful, taking into account--
(i) the number and characteristics of the
individuals to be served by the project;
(ii) the job opportunities and job growth
in the area to be served by the project;
(iii) the poverty rate for such area; and
(iv) such other factors as the Secretaries
deem appropriate.
(B) Maximum amount.--No eligible applicant shall
receive a grant of more than $5,000,000 per year.
(C) Availability of funds.--Funds provided under a
grant awarded under this subsection for a fiscal year
shall remain available for use by the eligible
applicant through the end of the succeeding fiscal
year.
(5) Use of funds.--An eligible applicant awarded a grant
under this subsection shall enter into an agreement with the
State or local agency responsible for administering the
temporary assistance to needy families program in the area
where the eligible applicant is located to provide individuals
described in paragraph (1) with--
(A) educational credits or opportunities based upon
the length of the individual's employment;
(B) educational credits or opportunities based upon
the individual's commitment to becoming employed; or
(C) education and training opportunities for career
advancement.
(6) Reports.--
(A) Project reports.--Each eligible applicant
awarded a grant under this subsection shall submit to
the Secretaries such information and data regarding the
recipients participating in the project funded under
such grant and outcomes for such recipients as the
Secretaries may require.
(B) Report to congress.--The Secretaries shall
submit annual reports to Congress on the information
and data submitted under subparagraph (A).
(b) Grants To Establish Parents as Scholars Programs.--
(1) In general.--The Secretary of Health and Human Services
may award grants to States to establish a parents as scholars
program under which an eligible participant may be provided
support services described in paragraph (4) based on the
participant's need in order to complete the program.
(2) Definition of eligible participant.--
(A) In general.--In this subsection, the term
``eligible participant'' means an individual who
receives assistance under the State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) 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.--For purposes of
subparagraph (A)(i), an individual shall be
considered a full-time student if such
individual is taking courses having the number
of hours needed under the requirements of the
educational institution in which the individual
is enrolled, to complete the requirements of a
degree within the usual timeframe of 2 or 4
years, as applicable.
(ii) Exception.--The State may, for good
cause, modify the number of hours required
under clause (i) to allow additional time, not
to exceed 150 percent of the usual timeframe
required for completion of a 2- or 4-year
degree, for an individual to complete a degree
and be considered a full-time student under a
program established with a grant made under
this subsection.
(3) Modification of eligible participant requirements.--A
State may, for good cause, modify the requirements for an
eligible participant set forth in paragraph (2)(A).
(4) Support services described.--For purposes of paragraph
(1), the support services described in this paragraph include 1
or more of the following during the period the eligible
participant is in the program established with a grant made
under this subsection:
(A) Child care for children under age 13 or for
children who are physically or mentally incapable of
caring for themselves.
(B) Transportation services, including--
(i) mileage at a set rate per mile or
reimbursement for public or private
transportation;
(ii) payment for automotive repairs, not to
exceed $500 per academic year on a vehicle
registered to the eligible participant; and
(iii) reimbursement for vehicle liability
insurance, not to exceed $300, for the eligible
participant's vehicle.
(C) Payment for books and supplies to the extent
that such items are not covered by grants and loans,
not to exceed $750 per academic year.
(D) Such other expenses, not to exceed $500, that
the State determines are necessary for the eligible
participant to complete the program established under
this subsection and that are not covered by any other
available support services program.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $25,000,000 for each of fiscal years 2003 through 2007,
to carry out the grant program established under subsection
(a); and
(2) $25,000,000 for each of fiscal years 2003 through 2007,
to carry out the grant program established under subsection
(b).
SEC. 111. TRANSITIONAL JOBS PROGRAMS.
Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end
the following:
``(6) Transitional jobs grants.--
``(A) Purpose.--The purpose of this paragraph is to
provide funding so that States and localities can
create and expand transitional jobs programs that--
``(i) combine time-limited employment that
is subsidized with public funds, with skill
development and barrier removal activities,
pursuant to an individualized plan;
``(ii) provide job development and
placement assistance to individual program
participants to help them move from subsidized
employment in transitional jobs into
unsubsidized employment, as well as retention
services after the transition to unsubsidized
employment; and
``(iii) serve recipients of assistance
under the State program funded under this part
and other low-income individuals who have been
unable to secure employment through job search
or other employment-related services because of
limited skills, experience, or other barriers
to employment.
``(B) Limitations on use of funds.--
``(i) Allowable activities.--An entity to
which funds are provided under this paragraph
shall use the funds to operate transitional
jobs programs consistent with the following:
``(I) An entity which secures a
grant to operate a transitional jobs
program (in this subparagraph referred
to as a `program operator'), under this
paragraph shall place eligible
individuals in temporary, publicly
subsidized jobs. Individuals placed in
such jobs shall perform work directly
for the program operator, or at other
public and nonprofit organizations (in
this subparagraph referred to as
`worksite employers') within the
community. Funds provided under this
paragraph shall be used to subsidize
100 percent of the wages paid to
program participants as well as
employer-paid payroll costs for such
participants.
``(II) Transitional jobs programs
shall provide paid employment for not
less than 30, nor more than 40 hours
per week, except that a parent with a
child under the age of 6, a child who
is disabled, or a child with other
special needs, or an individual who for
other reasons cannot successfully
participate for 30 to 40 hours per
week, may, at State discretion, be
allowed to participate for more limited
hours, but not less than 20 hours per
week.
``(III) Program operators shall
provide case management services and
ensure that appropriate education,
training, and other services are
available to program participants
consistent with an individual plan
developed for each such participant.
``(IV) Program operators shall
provide job placement assistance to
help program participants obtain
unsubsidized employment, and shall
provide retention services for 12
months after entry into unsubsidized
employment.
``(V) In any work week in which a
program participant is employed at
least 30 hours, not less than 20
percent, nor more than 50 percent of
scheduled hours shall involve
participation in education or training
activities designed to improve the
participant's employability and
potential earnings, or other services
designed to reduce or eliminate any
barriers that may impede the
participant's ability to secure
unsubsidized employment.
``(VI) The maximum duration of any
placement in a transitional jobs
program shall not be less than 6
months, nor more than 24 months.
Nothing in this subclause shall be
construed to bar a program participant
from moving into unsubsidized
employment at a point prior to the
maximum duration of the program. States
may approve programs of varying
durations consistent with this
subclause.
``(VII) Program participants shall
be paid at the rate paid to
unsubsidized employees of the worksite
employer (or program operator where
work is performed directly for the
program operator) who perform
comparable work at the worksite where
the individual is placed. If no other
employees perform the same or
comparable work then wages shall be
set, at a minimum, at 50 percent of the
Lower Living Standard Income Level (in
this subparagraph referred to as the
`LLSIL'), as specified in section
101(24) of the Workforce Investment Act
of 1998, for a family of 3 based on 35
hours per week.
``(VIII) Program participants shall
receive supervision from the worksite
employer or program operator consistent
with the goal of addressing the limited
work experience and skills of program
participants.
``(ii) Consultation.--An application
submitted by an entity seeking to become a
program operator shall include an assurance by
the applicant that the transitional jobs
program carried out by the applicant shall--
``(I) provide in the design,
recruitment, and operation of the
program for broad-based input from the
community served and potential
participants in the program and
community-based agencies with a
demonstrated record of experience in
providing services, prospective
worksite employers, local labor
organizations representing employees of
prospective worksite employers, if
these entities exist in the area to be
served by the program, and employers,
and membership-based groups that
represent low-income individuals; and
``(II) prior to the placement of
program participants, consult with the
appropriate local labor organization,
if any, representing employees in the
area who are engaged in the same or
similar work as that proposed to be
carried out by such program.
``(iii) Eligibility for other work
supports.--Program participants shall be
eligible for subsidized child care,
transportation assistance, and other needed
support services on the same basis as other
recipients of cash assistance under the State
program funded under this part.
``(iv) Wages not considered assistance.--
Wages paid to program participants shall not be
considered to be assistance for purposes of
section 408(a)(7).
``(v) Private sector placements.--Not more
than 50 percent of the total number of such
participants in transitional jobs in a State at
any time may be placed at worksite employers
which are private, for-profit entities.
``(C) General eligibility.--
``(i) In general.--Not less than \2/3\ of
the participants in a transitional jobs program
funded under a grant made under this paragraph
during a fiscal year shall be individuals who
are, at the time they enter the program--
``(I) receiving assistance under
the State program funded under this
part;
``(II) not receiving assistance
under the State program funded under
this part, but who are unemployed, and
who were recipients of such assistance
within the immediately preceding 12-
month period;
``(III) custodial parents of a
minor child who meet the financial
eligibility criteria for assistance
under the State program funded under
this part; or
``(IV) noncustodial parents with
income below 150 percent of the poverty
line (as defined in section 673(2) of
the Omnibus Budget Reconciliation Act
of 1981, including any revision
required by such section, applicable to
a family of the size involved).
``(ii) Limitation.--Not more than \1/3\ of
all participants in a transitional jobs program
funded under this paragraph during a fiscal year shall be individuals
who have attained at least age 18 with an income below 150 percent of
the poverty line (as defined in section 673(2) of the Omnibus Budget
Reconciliation Act of 1981, including any revision required by such
section, applicable to a family of the size involved) who are not
eligible under clause (i). An individual who is an ex-offender shall be
eligible to participate in a transitional jobs program funded under
this paragraph.
``(iii) Methodology.--The Secretary may use
any reasonable methodology in calculating
whether program participants satisfying the
requirements of clause (i), constitute \2/3\ or
more of all participants, and whether program
participants satisfying the requirements of
clause (ii) constitute not more than \1/3\ of
all such participants in a fiscal year.
``(iv) Authority to provide work-related
services to individuals who have reached the 5-
year limit.--A program operator under this
paragraph may use the funds to provide
transitional job program participation to
individuals who, but for section 408(a)(7),
would be eligible for assistance under the
program funded under this part of the State in
which the program operator is located.
``(D) Relationship to other provisions of this
part.--
``(i) Rules governing use of funds.--The
provisions of section 404 (other than
subsection (f) thereof) shall not apply to a
grant made under this paragraph.
``(ii) Administration.--Section 416 shall
not apply to the programs under this paragraph.
``(iii) Prohibition against use of grant
funds for any other fund matching
requirement.--An entity to which funds are
provided under this paragraph shall not use any
part of the funds to fulfill any obligation of
any State or political subdivision under
subsection (b) or section 418 or any other
provision of this Act or other Federal law.
``(iv) Deadline for expenditure.--An entity
to which funds are provided under this
paragraph shall remit to the Secretary of Labor
any part of the funds that are not expended
within 3 years after the date on which the
funds are so provided.
``(v) Regulations.--Within 90 days after
the date of enactment of this paragraph, the
Secretary of Labor, after consultation with the
Secretary of Health and Human Services, shall
prescribe such regulations as may be necessary
to implement this paragraph.
``(vi) Reporting requirements.--The
Secretary of Labor, in consultation with the
Secretary of Health and Human Services, shall
establish requirements for the collection and
maintenance of financial and program
participant information and the reporting of
such information by entities carrying out
activities under this paragraph. Such reporting
requirements shall include, at a minimum, that
States report disaggregated data on individual
program participants that include the
following:
``(I) Demographic information about
the program participant including
education level, literacy level, and
prior work experience.
``(II) Identity of the program
operator that provides or provided
services to the program participant,
and the duration of participation.
``(III) The nature of education,
training or other services received by
the program participant.
``(IV) Reasons for the program
participant's leaving the program.
``(V) Whether the program
participant secured unsubsidized
employment during or within 60 days
after the employment of the participant
in a transitional job, and if so,
details about the participant's
unsubsidized employment including
industry, occupation, starting wages
and hours, and availability of employer
sponsored health insurance and sick and
vacation leave.
``(vii) Additional reporting
requirements.--States shall collect and report
followup data for a sampling of program
participants reflecting their employment and
earning status 12 months after entering
unsubsidized employment.
``(E) National competitive grants.--
``(i) In general.--The Secretary of Labor
shall award grants in accordance with this
paragraph, in fiscal years 2003 through 2007,
for transitional jobs programs proposed by
eligible applicants, based on the following:
``(I) The extent to which the
proposal seeks to provide services in
multiple sites that include sites in
more than 1 State.
``(II) The extent to which the
proposal seeks to provide services in a
labor market area or region that
includes portions of more than 1 State.
``(III) The extent to which the
proposal seeks to provide transitional
jobs in a State.
``(IV) The extent to which the
applicant proposes to provide
transitional jobs in either rural areas
or areas where there are a high
concentration of residents with income
that is less than the poverty line.
``(V) The effectiveness of the
proposal in helping individuals who are
least job ready move into unsubsidized
jobs that provide pathways to stable
employment and livable wages.
``(ii) Eligible applicants.--In this
paragraph, the term `eligible applicant'
means--
``(I) a Workforce Investment Board
for a local workforce area in a State;
``(II) a political subdivision of a
State;
``(III) a State;
``(IV) an Indian tribe; or
``(V) a private entity.
``(iii) Funding.--Subject to subparagraphs
(F) and (G), of the amount appropriated in
subparagraph (H) for a fiscal year, $25,000,000
of such amount shall be used to make grants
under this paragraph for that fiscal year.
``(F) Funding for indian tribes.--1.5 percent of
the amount appropriated in subparagraph (H) for each
fiscal year shall be reserved for grants to Indian
tribes.
``(G) Funding for evaluations of transitional jobs
programs.--1.5 percent of the amount appropriated in
subparagraph (H) for each fiscal year shall be reserved
for use by the Secretary to carry out subparagraph (I).
``(H) Appropriations.--
``(i) In general.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for grants
under this paragraph, $25,000,000 for each of
fiscal years 2003 through 2007.
``(ii) Availability.--The amounts made
available pursuant to clause (i) shall remain
available for such period as is necessary to
make the grants provided for in this paragraph.
``(I) Evaluation of transitional jobs programs.--
The Secretary, in consultation with the Secretary of
Labor--
``(i) shall develop a plan to evaluate the
extent to which transitional jobs programs
funded under this paragraph have been effective
in promoting sustained, unsubsidized employment
for each group of eligible participants;
``(ii) may evaluate the use of such grants
by such grantees/ as the Secretary deems
appropriate, in accordance with an agreement
entered into with the grantees after good-faith
negotiations; and
``(iii) should include the following
outcome measures in the plan developed under
clause (i):
``(I) Placements in unsubsidized
employment.
``(II) Placements in unsubsidized
employment that last for at least 12
months, and the extent to which
individuals are employed continuously
for at least 12 months.
``(III) Earnings of individuals who
obtain employment at the time of
placement.
``(IV) Earnings of individuals 1
year after placement.
``(V) The occupations and
industries in which wage growth and
retention performance is greatest.
``(VI) Average expenditures per
participant.''.
SEC. 112. 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.
TITLE II--STRENGTHENING FAMILIES
Subtitle A--Responsible Fatherhood
SEC. 201. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.
(a) In General.--Part D of title IV (42 U.S.C. 651 et seq.) is
amended by adding at the end the following:
``SEC. 469C. BLOCK GRANTS TO STATES FOR MEDIA CAMPAIGNS PROMOTING
RESPONSIBLE FATHERHOOD.
``(a) Definitions.--In this section:
``(1) Broadcast advertisement.--The term `broadcast
advertisement' means a communication intended to be aired by a
television or radio broadcast station, including a
communication intended to be transmitted through a cable
channel.
``(2) Child at risk.--The term `child at risk' means each
young child whose family income does not exceed the poverty
line.
``(3) Poverty line.--The term `poverty line' has the
meaning given such term in section 673(2) of the Omnibus Budget
Reconciliation Act of 1981 (including any revision required by
such section) that is applicable to a family of the size
involved.
``(4) Printed or other advertisement.--The term `printed or
other advertisement' includes any communication intended to be
distributed through a newspaper, magazine, outdoor advertising
facility, mailing, or any other type of general public
advertising, but does not include any broadcast advertisement.
``(5) State.--The term `State' means each of the 50 States,
the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
``(6) Young child.--The term `young child' means an
individual under age 5.
``(b) State Certifications.--Not later than October 1 each fiscal
year for which a State desires to receive an allotment under this
section, the chief executive officer of the State shall submit to the
Secretary a certification that the State will--
``(1) use such funds to promote the formation and
maintenance of married 2-parent families, strengthen fragile
families, and promote responsible fatherhood through media
campaigns conducted in accordance with the requirements of
subsection (d);
``(2) return any unused funds to the Secretary in
accordance with the reconciliation process under subsection
(e); and
``(3) comply with the reporting requirements under
subsection (f).
``(c) Payments to States.--For each of fiscal years 2003 through
2007, the Secretary shall pay to each State that submits a
certification under subsection (b), from any funds appropriated under
subsection (h), for the fiscal year an amount equal to the amount of
the allotment determined for the fiscal year under subsection (g).
``(d) Establishment of Media Campaigns.--Each State receiving an
allotment under this section for a fiscal year shall use the allotment
to conduct media campaigns as follows:
``(1) Conduct of media campaigns.--
``(A) Radio and television media campaigns.--
``(i) Production of broadcast
advertisements.--At the option of the State, to
produce broadcast advertisements that promote
the formation and maintenance of married 2-
parent families, strengthen fragile families,
and promote responsible fatherhood.
``(ii) Air time challenge program.--At the
option of the State, to establish an air time
challenge program under which the State may
spend amounts allotted under this section to
purchase time from a broadcast station to air a
broadcast advertisement produced under clause
(i), but only if the State obtains an amount of
time of the same class and during a comparable
period to air the advertisement using non-
Federal contributions.
``(B) Other media campaigns.--At the option of the
State, to conduct a media campaign that consists of the
production and distribution of printed or other
advertisements that promote the formation and
maintenance of married 2-parent families, strengthen
fragile families, and promote responsible fatherhood.
``(2) Administration of media campaigns.--A State may
administer media campaigns funded under this section directly
or through grants, contracts, or cooperative agreements with
public agencies, local governments, or private entities,
including charitable and religious organizations.
``(3) Consultation with domestic violence assistance
centers.--In developing broadcast and printed advertisements to
be used in the media campaigns conducted under paragraph (1),
the State or other entity administering the campaign shall
consult with representatives of State and local domestic
violence centers.
``(4) Non-federal contributions.--In this subsection, the
term `non-Federal contributions' includes contributions by the
State and by public and private entities. Such contributions
may be in cash or in kind. Such term does not include any
amounts provided by the Federal Government, or services
assisted or subsidized to any significant extent by the Federal
Government, or any amount expended by a State before October 1,
2002.
``(e) Reconciliation Process.--
``(1) 3-year availability of amounts allotted.--Each State
that receives an allotment under this section shall return to
the Secretary any unused portion of the amount allotted to a
State under this section for a fiscal year not later than the
last day of the second succeeding fiscal year together with any
earnings on such unused portion.
``(2) Procedure for redistribution of unused allotments.--
The Secretary shall establish an appropriate procedure for
redistributing to States that have expended the entire amount
allotted under this section any amount that is--
``(A) returned to the Secretary by States under
paragraph (1); or
``(B) not allotted to a State under this section
because the State did not submit a certification under
subsection (b) by October 1 of a fiscal year.
``(f) Reporting Requirements.--
``(1) Monitoring and evaluation.--Each State receiving an
allotment under this section for a fiscal year shall monitor
and evaluate the media campaigns conducted using funds made
available under this section in such manner as the Secretary,
in consultation with the States, determines appropriate.
``(2) Annual reports.--Not less frequently than annually,
each State receiving an allotment under this section for a
fiscal year shall submit to the Secretary reports on the media
campaigns conducted under this section at such time, in such
manner, and containing such information as the Secretary may
require.
``(g) Amount of Allotments.--
``(1) In general.--Except as provided in paragraph (2), of
the amount appropriated for the purpose of making allotments
under this section for a fiscal year, the Secretary shall allot
to each State that submits a certification under subsection (b)
for the fiscal year an amount equal to the sum of--
``(A) the amount that bears the same ratio to 50
percent of such funds as the number of young children
in the State (as determined by the Secretary based on
the most reliable data available) as bears to the
number of such children in all States; and
``(B) the amount that bears the same ratio to 50
percent of such funds as the number of children at risk
in the State (as so determined) bears to the number of
such children in all States.
``(2) Minimum allotments.--No allotment for a fiscal year
under this section shall be less than--
``(A) in the case of a State other than the
Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, 1 percent of the amount
appropriated for the fiscal year under subsection (h);
and
``(B) in the case of the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
Islands, 0.5 percent of such amount.
``(3) Pro rata reductions.--The Secretary shall make such
pro rata reductions to the allotments determined under
paragraph (1) as are necessary to comply with the requirements
of paragraph (2).
``(h) Authorization of Appropriations.--There is authorized to be
appropriated $25,000,000 for each of fiscal years 2003 through 2007 for
purposes of making allotments to States under this section.''.
(b) Evaluation.--
(1) In general.--The Secretary of Health and Human Services
shall conduct an evaluation of the impact of the media
campaigns funded under section 469C of the Social Security Act,
as added by subsection (a).
(2) Report.--Not later than December 31, 2005, the
Secretary of Health and Human Services shall report to Congress
the results of the evaluation under paragraph (1).
(3) Authorization of appropriations.--There is authorized
to be appropriated $1,000,000 for fiscal year 2003 for purposes
of conducting the evaluation required under this subsection, to
remain available until expended.
SEC. 202. RESPONSIBLE FATHERHOOD BLOCK GRANT.
(a) In General.--Part D of title IV (42 U.S.C. 651 et seq.), as
amended by section 201, is amended by adding at the end the following:
``SEC. 469D. RESPONSIBLE FATHERHOOD BLOCK GRANT.
``(a) Definitions.--In this section:
``(1) Child at risk.--The term `child at risk' has the
meaning given such term in section 469C(a)(2).
``(2) Poverty line.--The term `poverty line' has the
meaning given such term in section 469C(a)(3).
``(3) State.--The term `State' has the meaning given such
term in section 469C(a)(5).
``(4) Young child.--The term `young child' has the meaning
given such term in section 469C(a)(6).
``(b) State Certifications.--Not later than October 1 of each
fiscal year for which a State desires to receive an allotment under
this section, the chief executive officer of the State shall submit to
the Secretary a certification that the State will--
``(1) comply with the matching requirements under
subsection (c)(2);
``(2) use such funds--
``(A) to promote responsible fatherhood; and
``(B) to promote or sustain marriage in accordance
with subparagraph (A) or (B), respectively, of
subsection (d)(2);
``(3) return any unused funds to the Secretary in
accordance with the reconciliation process under subsection
(e); and
``(4) comply with the reporting requirements under
subsection (f).
``(c) Payments to States.--
``(1) In general.--Subject to paragraph (2), for each of
fiscal years 2003 through 2007, the Secretary shall pay to each
State that submits a certification described in subsection (b),
from any funds appropriated under subsection (h), for the
fiscal year an amount equal to the amount of the allotment
determined under subsection (g).
``(2) Matching requirement.--The Secretary may not make a
payment to a State under paragraph (1) unless the State agrees
that, with respect to the costs to be incurred by the State in
supporting the programs described in subsection (d), the State
will make available non-Federal contributions in an amount
equal to 25 percent of the amount of Federal funds paid to the
State under such paragraph.
``(3) Non-federal contributions.--In this subsection, the
term `non-Federal contributions' includes contributions by the
State and by public and private entities that may be in cash or
in kind, but does not include any amounts provided by the
Federal Government, or services assisted or subsidized to any
significant extent by the Federal Government or any amount
expended by a State before October 1, 2002.
``(d) Responsible Fatherhood Programs.--
``(1) Support of programs.--A State shall use the
allotments received under this section to support programs
described in paragraph (2) directly or through a grant, contract, or
cooperative agreement with any public agency, local government, or
private entity (including any charitable or religious organization)
with experience in administering such a program.
``(2) Programs described.--Responsible fatherhood programs
include programs that--
``(A) promote marriage through such activities as
counseling, mentoring, disseminating information about
the benefits of marriage and 2-parent involvement for
children, enhancing relationship skills, teaching on
how to control aggressive behavior, and disseminating
information on the causes of domestic violence and
child abuse;
``(B) sustain marriages through marriage
preparation programs, premarital counseling, marital
inventories, skills-based marriage education, financial
planning seminars, and divorce education and reduction
programs, including mediation and counseling;
``(C) promote responsible parenting through such
activities as counseling, mentoring, disseminating
information about good parenting practices, skills-
based parenting education, encouraging child support
payments, and other methods; and
``(D) help fathers and their families avoid or
leave cash welfare and improve their economic status by
providing such activities as work first services, job
search, job training, subsidized employment, job
retention, job enhancement, and encouraging education,
including career-advancing education, dissemination of
employment materials, coordination with existing
employment services such as Welfare to Work and
referrals to local employment training initiatives, and
other methods.
``(3) Targeted low-income participants.--Not less than 50
percent of the participants in each program supported under
paragraph (1) shall be--
``(A) parents of a child who is, or within the past
24 months has been, a recipient of assistance or
services under a State program funded under this part
and under a State program funded under part A; or
``(B) parents, including an expectant parent or a
married parent, whose income (after adjustment for
court-ordered child support paid or received) does not
exceed 150 percent of the poverty line.
``(4) Consultation with domestic violence assistance
centers.--Each State or entity administering a program
supported under paragraph (1) shall consult with
representatives of State and local domestic violence centers.
``(5) Supplement not supplant.--Amounts allotted to a State
under this section shall be used to supplement and not supplant
other Federal, State, or local funds provided to the State
under this part or any other provision of law that are used to
support programs and activities similar to the responsible
fatherhood program described in paragraph (2).
``(6) Restrictions on use.--No amount allotted under this
section may be used for court proceedings on matters of child
visitation or child custody, or for legislative advocacy.
``(e) Reconciliation Process.--
``(1) 3-year availability of amounts allotted.--Each State
that receives an allotment under this section shall return to
the Secretary any unused portion of the amount allotted to a
State under this section for a fiscal year not later than the
last day of the second succeeding fiscal year, together with
any earnings on such unused portion.
``(2) Procedure for redistribution of unused allotments.--
The Secretary shall establish an appropriate procedure for
redistributing to States that have expended the entire amount
allotted under this section any amount that is--
``(A) returned to the Secretary by States under
paragraph (1); or
``(B) not allotted to a State under this section
because the State did not submit a certification under
subsection (b) by October 1 of a fiscal year.
``(f) Reporting Requirements.--
``(1) Monitoring and evaluation.--Each State receiving an
allotment under this section shall monitor and evaluate the
programs supported using funds made available under this
section in such manner as the Secretary, in consultation with
the States, determines appropriate.
``(2) Annual reports.-Not less frequently than annually,
each State receiving an allotment under this section for a
fiscal year shall submit to the Secretary reports on the
programs supported under this section at such time, in such
manner, and containing such information as the Secretary may
reasonably require.
``(g) Amount of Allotments.--
``(1) In general.-Except as provided in paragraph (2), of
the amount appropriated for the purpose of making allotments
under this section for a fiscal year the Secretary shall allot
to each State that submits a certification under subsection (b)
for that fiscal year an amount equal to the sum of--
``(A) the amount that bears the same ratio to 50
percent of such funds as the number of young children
in the State (as determined by the Secretary based on
the most reliable data available) as bears to the
number of such children in all States; and
``(B) the amount that bears the same ratio to 50
percent of such funds as the number of children at risk
in the State (as so determined) bears to the number of
such children in all States.
``(2) Minimum allotments.-No allotment for a fiscal year
under this section shall be less than--
``(A) in the case of a State other than the
Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands, 1 percent of the amount appropriated for the fiscal
year under subsection (h); and
``(B) in the case of the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana
Islands, 0.5 percent of such amount.
``(3) Pro rata reductions.--The Secretary shall make such
pro rata reductions to the allotments determined under
paragraph (1) as are necessary to comply with the requirements
of paragraph (2).
``(h) Authorization of Appropriations.--There is authorized to be
appropriated $50,000,000 for each of fiscal years 2003 through 2007 for
purposes of making allotments to States under this section.''.
(b) Evaluation and Report.--
(1) Evaluation.--
(A) In general.--The Secretary of Health and Human
Services (in this subsection referred to as the
``Secretary''), in consultation with the Secretary of
Labor, shall, directly or through a grant, contract, or
interagency agreement, conduct an evaluation of the
projects funded under section 469D of the Social
Security Act (as added by subsection (a)).
(B) Outcomes assessment.--The evaluation conducted
under subparagraph (A) shall assess, among other
outcomes selected by the Secretary, effects of the
projects on marriage, parenting, employment, earnings,
payment of child support, and incidence of domestic
violence and child abuse.
(C) Project selection.--In selecting projects for
the evaluation, the Secretary should include projects
that are most likely to further the purposes of this
section.
(D) Random assignment.--In conducting the
evaluation, random assignment should be used wherever
possible.
(2) Report.--Not later than December 31, 2005, the
Secretary shall submit to Congress a report on the results of
the evaluation conducted under paragraph (1).
(3) Authorization of appropriations.--There is authorized
to be appropriated $1,000,000 for each of fiscal years 2003
through 2007 to carry out this subsection.
SEC. 203. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD PROGRAMS.
Part D of title IV (42 U.S.C. 651), as amended by section 202, is
amended by adding at the end the following:
``SEC. 469E. MEDIA CAMPAIGN AND NATIONAL CLEARINGHOUSE FOR RESPONSIBLE
FATHERHOOD.
``(a) Media Campaign and National Clearinghouse.--
``(1) In general.--From any funds appropriated under
subsection (c), the Secretary shall contract with a nationally
recognized, nonprofit fatherhood promotion organization
described in subsection (b) to--
``(A) develop, promote, and distribute to
interested States, local governments, public agencies,
and private entities a media campaign that encourages
the appropriate involvement of both parents in the life
of any child of the parents, with a priority for
programs that specifically address the issue of
responsible fatherhood; and
``(B) develop a national clearinghouse to assist
States and communities in efforts to promote and
support marriage and responsible fatherhood by
collecting, evaluating, and making available (through
the Internet and by other means) to other States
information regarding the media campaigns established
under section 469C.
``(2) Coordination with domestic violence programs.--The
Secretary shall ensure that the nationally recognized nonprofit
fatherhood promotion organization with a contract under
paragraph (1) coordinates the media campaign developed under
subparagraph (A) of such paragraph and the national
clearinghouse developed under subparagraph (B) of such
paragraph with a national, State, or local domestic violence
program.
``(b) Nationally Recognized, Nonprofit Fatherhood Promotion
Organization Described.--The nationally recognized, nonprofit
fatherhood promotion organization described in this subsection is such
an organization that has at least 4 years of experience in--
``(1) designing and disseminating a national public
education campaign, including the production and successful
placement of television, radio, and print public service
announcements that promote the importance of responsible
fatherhood; and
``(2) providing consultation and training to community-
based organizations interested in implementing fatherhood
outreach, support, or skill development programs with an
emphasis on promoting married fatherhood as the ideal.
``(c) Authorization of Appropriations.--There is authorized to be
appropriated $50,000,000 for fiscal year 2003 to carry out this
section.''.
SEC. 204. POLICY REVIEWS AND DEMONSTRATION PROJECTS TO COORDINATE
SERVICES FOR LOW-INCOME, NONCUSTODIAL PARENTS.
Part D of title IV (42 U.S.C. 651), as amended by section 203, is
amended by adding at the end the following:
``SEC. 469F. GRANTS TO CONDUCT POLICY REVIEWS AND DEMONSTRATION
PROJECTS TO COORDINATE SERVICES FOR LOW-INCOME,
NONCUSTODIAL PARENTS.
``(a) Policy Reviews.--The Secretary shall make grants to States
desiring to conduct policy reviews and develop recommendations with the
goals of--
``(1) obtaining and retaining employment, increasing child
support payments, and increasing the involvement of low-income,
noncustodial parents with their children; and
``(2) coordinating policies and services for low-income,
noncustodial parents among the different systems or programs in
which such parents are involved, including the criminal justice
system, the State program funded under part A, the State
program funded under this part, and job training or employment
programs.
``(b) Demonstration Projects.--
``(1) In general.--The Secretary shall make grants to
States desiring to conduct a demonstration project for the
purpose of--
``(A) testing innovative policies and to better
coordinate policies and services for low-income,
noncustodial parents to accomplish the goals described
in subsection (a); or
``(B) if the State conducted a policy review with a
grant made under subsection (a) and desires to
implement the recommendations of that review,
implementing such recommendations.
``(2) Use of funds.--Funds made available under a grant
made under this subsection may be used to provide a wide
variety of services to, and to implement policies regarding,
low-income, noncustodial parents, including providing economic
incentives (with or without penalty) to increase the employment
of such parents or to increase the amount of child support paid
by such parents.
``(c) Application.--A State desiring to receive a grant to conduct
a policy review under subsection (a) or a grant to conduct a
demonstration project under subsection (b) shall submit an application
to the Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(d) Authorization of Appropriations.--Out of any money in the
Treasury of the United States not otherwise appropriated, there are
authorized to be appropriated to carry out this section, $30,000,000
for each of fiscal years 2003 through 2007.''.
Subtitle B--Additional Provisions To Strengthen Families
SEC. 211. BAN ON IMPOSITION OF STRICTER ELIGIBILITY CRITERIA FOR 2-
PARENT FAMILIES.
(a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)) is amended by
adding at the end the following:
``(12) Ban on imposition of stricter eligibility criteria
for 2-parent families.--In determining the eligibility of a 2-
parent family for assistance under a State program funded under
this part, the State shall not impose a requirement that does
not apply in determining the eligibility of a 1-parent family
for such assistance.''.
(b) Penalty.--Section 409(a) (42 U.S.C. 609(a)) is amended by
adding at the end the following:
``(15) Penalty for imposition of stricter eligibility
criteria for 2-parent families.--
``(A) In general.--If the Secretary determines that
a State to which a grant is made under section 403 for
a fiscal year has violated section 408(a)(12) during
the fiscal year, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount equal
to 5 percent of the State family assistance grant.
``(B) Penalty based on severity of failure.--The
Secretary shall impose reductions under subparagraph
(A) with respect to a fiscal year based on the degree
of noncompliance.''.
SEC. 212. NONCUSTODIAL PARENT EMPLOYMENT GRANT PROGRAM.
(a) Authority To Award Grants.--The Secretary of Health and Human
Services and the Secretary of Labor (in this section referred to as the
``Secretaries'') jointly shall award grants to eligible States for the
purpose of establishing, in coordination with counties and other local
governments, court-supervised employment programs for noncustodial
parents who have a history of nonpayment of child support obligations,
as determined by a court, and who are determined by the court to be in
need of employment services or placement in order to pay such child
support obligations. A noncustodial parent described in the preceding
sentence who is an ex-offender shall be eligible to participate in a
program established with a grant made under this section.
(b) Eligible State.--In this section, the term ``eligible State''
means a State that has obtained a commitment from at least 1 county
within the State to establish a court-supervised employment program to
provide noncustodial parents described in subsection (a) with an option
to participate in that program prior to the court entering a finding
that the noncustodial parent is in contempt of court for failure to pay
a child support obligation and, possibly be subject to criminal
penalties.
(c) Administration.--An eligible State that receives a grant under
this section may contract with a public, private, faith-based or
community-based organization to administer (in conjunction with the
court of jurisdiction) the court-supervised employment program .
(d) Program Goals and Requirement.--
(1) Goals.--The goals of a court-supervised employment
program established with funds made available under a grant
made under this section shall include the following:
(A) To assist noncustodial parents described in
subsection (a) establish a pattern of regular child
support payments by obtaining and maintaining
unsubsidized employment.
(B) To increase the dollar amount and total number
of court-ordered child support collected.
(C) To help noncustodial parents described in
subsection (a) improve relationships with their
children.
(2) Requirement.--A court-supervised employment program
established with funds made available under a grant made under
this section shall not permit a noncustodial parent placed in
the program to graduate from the program and avoid penalties
for failure to pay a child support obligation until the
noncustodial parent completes at least 6 months of continuous,
timely payment of the parent's child support obligations.
(e) Use of Funds.--Services provided under a court-supervised
employment program established with funds made available under a grant
made under this section may include the following:
(1) Job development.
(2) Supervised job search.
(3) Job placement.
(4) Case management.
(5) Court liaison services.
(6) Educational assessment.
(7) Educational referrals.
(8) Vocational assessment.
(9) Counseling on responsible fatherhood.
(10) Support funds for services such as transportation or
short-term training.
(11) Referral for support services.
(12) Employment retention services.
(13) Outreach to community agencies concerning bonding
programs.
(f) Amount of Grants.--
(1) In general.--The Secretaries shall determine the amount
of each grant to be awarded under this section, taking into
account the number of counties participating in an eligible
State and the population of the noncustodial parents to be
served by the employment programs in that State.
(2) Priority for certain programs.--In awarding grants
under this section, the Secretaries shall give priority to
eligible States with programs that are designed to target
noncustodial parents whose income does not exceed 150 percent
of the poverty line (as defined in section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2)),
including any revision required by such section applicable to a
family of the size involved).
(g) Matching Requirement.--
(1) In general.--The Secretaries may not award a grant to
an eligible State under this section unless the eligible State
agrees that, with respect to the costs to be incurred by the
eligible State in supporting the court-supervised employment
program established with funds provided under the grant, the
State will make available non-Federal contributions in an
amount equal to 25 percent of the amount of Federal funds paid
to the State under such grant.
(2) Non-federal contributions.--In this subsection, the
term ``non-Federal contributions'' includes contributions by
the State and by public and private entities that may be in
cash or in kind, but does not include any amounts provided by
the Federal Government, or services assisted or subsidized to
any significant extent by the Federal Government or any amount
expended by a State before October 1, 2002.
(h) Application.--In order to receive a grant under this section,
an eligible State shall submit an application to the Secretaries, at
such time and in such manner as the Secretaries may require, and that
includes the following:
(1) Evidence of an agreement between the State and 1 or
more counties to establish a court-supervised employment
program that meets the requirements of this section.
(2) The number of potential noncustodial parents to be
served by the program.
(3) The purposes specific to that State's program.
(4) The income of the target population.
(5) The amount of proposed grant funds to be awarded.
(6) A certification that the State matching requirements of
subsection (g) will be satisfied if the grant is awarded to
that State.
(7) Such other information as the Secretaries deem
appropriate.
(i) Authorization of Appropriations.--There are authorized to be
appropriated to award grants under this section, $200,000,000 for each
of fiscal years 2003 through 2007.
Subtitle C--Teen Pregnancy Prevention Grants
SEC. 221. TEEN PREGNANCY PREVENTION GRANTS.
Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read as
follows:
``(2) Grants to prevent teen pregnancy.--
``(A) Submission of plan.--
``(i) In general.--Each State that submits
a plan that meets the requirements of clause
(ii) shall be entitled to receive from the
Secretary a teen pregnancy prevention grant in
the amount determined under subparagraph (B)
for each of fiscal years 2003 through 2007.
``(ii) Plan requirements.--A plan meets the
requirements of this clause if the plan--
``(I) describes the State's
numerical goal for reducing teen
pregnancy and teen births;
``(II) identifies the strategies to
be used to achieve such goal; and
``(III) describes the efforts the
State will make to involve young men,
as well as young women, in delaying
pregnancy and parenting.
``(B) Grant amount.--
``(i) In general.--The Secretary shall
allot to each State with a plan approved under
subparagraph (A) an amount equal to--
``(I) with respect to fiscal year
2003, the amount that bears the same
ratio to the amount of funds
appropriated under subparagraph (G) for
such fiscal year as the proportion of
births in the State to teens under age
20 bears to the number of such births
in all States; and
``(II) with respect to each of
fiscal years 2004 through 2007, the
amount that bears the same ratio to 50
percent of the amount of funds
appropriated under subparagraph (G) for
each such fiscal year as the proportion
of births in the State to teens under
age 20 bears to the number of such
births in all States.
``(ii) Incentive funds.--In addition to the
amount determined for a State under clause
(i)(II), in the case of a State that is a high
achieving State (as defined in clause (iii)),
the Secretary shall allot to such high
achieving State with respect to each of fiscal
years 2004 through 2007, the amount that bears
the same ratio to 50 percent of the amount of
funds appropriated under subparagraph (G) for
each such fiscal year as the proportion of
teens under age 20 in the high achieving State
bears to the number of such teens in all such
high achieving States.
``(iii) Definition of high achieving
state.--In this paragraph, the term `high
achieving State' means a State that has
achieved an annual decline in the teen birth
rate for the State as compared to the preceding
year (or the most recent year for which data is available) of at least
2.5 percent.
``(iv) Determination of teen birth rates.--
For purposes of this subparagraph, the teen
birth rate for a State shall be determined on
the basis of the birth rate per 1,000 women,
ages 15 through 19, who reside in the State.
``(C) Use of funds.--A State shall use funds
provided under a grant made under this paragraph to
implement teen pregnancy prevention strategies that--
``(i) are abstinence-first, in that the
strategies use a message that strongly
emphasizes abstinence as the only certain way
to avoid pregnancy and sexually transmitted
infections while still allowing State
flexibility to discuss other prevention
methods;
``(ii) replicate or substantially
incorporate the elements of 1 or more teen
pregnancy prevention programs that have been
proven (on the basis of rigorous scientific
research) to delay or decrease sexual
intercourse or sexual activity or reduce
teenage pregnancy; and
``(iii) incorporate 1 or more of the
following strategies for preventing teen
pregnancy--
``(I) encouraging teenagers to
delay sexual activity;
``(II) youth development programs;
``(III) community or service
learning programs; or
``(IV) outreach or media programs.
``(D) Subgrant or contract recipients.--
``(i) In general.--Subject to clause (ii),
a State to which a grant is made under this
paragraph for a fiscal year may award subgrants
or contracts to--
``(I) State or local nonprofit
coalitions working to prevent teenage
pregnancy;
``(II) State, local, or tribal
agencies;
``(III) schools;
``(IV) entities that provide after
school programs;
``(V) nonprofit community or faith-
based organizations; or
``(VI) other organizations
designated by the State.
``(ii) Set-aside for tribal agencies.--Not
less than an amount equal to 1.5 percent of the
amount of a grant made to a State under this
paragraph for a fiscal year shall be used to
award subgrants or contracts to tribal
agencies.
``(E) Supplementation of funds.--A State to which a
grant is made under this paragraph for a fiscal year
shall use funds provided under the grant to supplement
and not supplant funds that would otherwise be
available to the State for preventing teen pregnancy.
``(F) Data reporting.--A State to which a grant is
made under this paragraph for a fiscal year shall
cooperate with the Secretary to collect information and
report on outcomes of programs funded under the grant,
as specified by the Secretary.
``(G) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for making grants
under this paragraph--
``(i) for fiscal year 2003, $50,000,000;
and
``(ii) for each of fiscal years 2004
through 2007, $100,000,000.''.
SEC. 222. TEEN PREGNANCY PREVENTION RESOURCE CENTER.
(a) Authority To Establish.--
(1) In general.--The Secretary of Health and Human Services
(in this section referred to as the ``Secretary'') shall make a
grant to a nationally recognized, nonpartisan, nonprofit
organization that meets the requirements described in paragraph
(2) to establish and operate a national teen pregnancy
prevention resource center (in this section referred to as the
``Resource Center'') to carry out the purposes and activities
described in subsection (b).
(2) Contractor requirements.--The requirements described in
this paragraph are the following:
(A) The organization has at least 5 years of
experience in working with diverse sectors of society
to reduce teen pregnancy.
(B) The organization has a demonstrated ability to
work with and provide assistance to a broad range of
individuals and entities, including teens, parents, the
entertainment and news media, State, tribal, and local
organizations, networks of teen pregnancy prevention
practitioners, businesses, faith and community leaders,
and researchers.
(C) The organization is research-based and has
capabilities in scientific analysis and evaluation.
(D) The organization has comprehensive knowledge
and data about teen pregnancy prevention strategies.
(E) The organization has experiences operating a
resource center that carries out activities similar to
the activities described in subsection (b)(2).
(b) Purposes and Activities.--
(1) Purposes.--The purposes of the Resource Center are to--
(A) provide information and technical assistance to
States, Indian tribes, local communities, and other
public or private organizations seeking to reduce rates
of teen pregnancy; and
(B) assist such entities in their efforts to work
through all forms of media to communicate effective
messages about preventing teen pregnancy, including
messages that focus on abstinence, responsible
behavior, family communication, relationships, and
values.
(2) Activities.--The Resource Center shall carry out the
purposes described in paragraph (1) through the following
activities:
(A) Synthesizing and disseminating research and
information regarding effective and promising practices
to prevent teen pregnancy.
(B) Developing and providing information on how to
design and implement effective programs to prevent teen
pregnancy.
(C) Helping States, local communities, and other
organizations increase their knowledge of existing
resources that can be used to advance teen pregnancy
prevention efforts.
(D) Linking organizations working to reduce teen
pregnancy with experts and peer groups, including the
creation of technical assistance networks.
(E) Providing consultation and resources on how to
reduce teen pregnancy through a broad array of
strategies, including enlisting the help of various
sectors of society such as parents, other adults (such
as coaches and mentors), community or faith-based
groups, the entertainment and news media, business, and
other teens.
(F) Working directly with individuals and
organizations in the entertainment industry to provide
consultation and serve as a source of factual
information on issues related to teen pregnancy
prevention.
(c) Media Campaigns.--
(1) In general.--The organization operating the Resource
Center may use a portion of the funds appropriated to carry out
this section to develop and implement media campaigns directly
or through grants, contracts, or cooperative agreements with
other entities. Such campaigns may include the production and
distribution of printed materials and messages for print media,
television and radio broadcast media, the Internet, or such
other media as may be appropriate for reaching large numbers of
young people and their parents.
(2) Matching.--To the extent possible, funds used to
develop and implement media campaigns under this subsection
should be matched with non-Federal resources, including in-kind
contributions, from public and private entities.
(d) Collaboration With Other Organizations.--The organization
operating the Resource Center shall collaborate with other nonprofit
organizations that have expertise and interest in teen pregnancy
prevention.
(e) Evaluation.--
(1) Reservation and availability of funds.--Of the amount
appropriated under subsection (f) for fiscal year 2003,
$5,000,000 shall be reserved for use by the Secretary of Health
and Human Services to prepare an interim and final report
summarizing and synthesizing outcomes and lessons learned from
the activities funded under this section. Funds reserved under
the preceding sentence shall remain available for expenditure
through fiscal year 2007.
(2) Required information.--Each report required under
paragraph (1) shall include--
(A) a rigorous scientific evaluation of at least 3
such activities that are selected to represent a
diversity of strategies; and
(B) an assessment of the ability to replicate and
expand activities that have proven effective on a
smaller scale.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Health and Human Services to carry out
this section, $10,000,000 for each of fiscal years 2003 through 2007.
SEC. 223. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.
Section 905 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (42 U.S.C. 710 note) is amended to read as
follows:
``SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.
``(a) In General.--Not later than January 1, 2003, the Secretary of
Health and Human Services shall establish a national goal of reducing
teen pregnancy by at least 25 percent by January 1, 2013.
``(b) Report.--Not later than June 30, 2003, and annually
thereafter, the Secretary of Health and Human Services shall report to
Congress with respect to the progress that has been made in meeting the
national goal established under subsection (a).''.
Subtitle D--Child Support Distribution to Families First
CHAPTER 1--DISTRIBUTION OF CHILD SUPPORT
SEC. 231. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF
OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.
(a) Modification of Rule Requiring Assignment of Support Rights as
a Condition of Receiving TANF.--Section 408(a)(3) (42 U.S.C. 608(a)(3))
is amended to read as follows:
``(3) No assistance for families not assigning certain
support rights to the state.--A State to which a grant is made
under section 403 shall require, as a condition of paying
assistance to a family under the State program funded under
this part, that a member of the family assign to the State any
rights the family member may have (on behalf of the family
member or of any other person for whom the family member has
applied for or is receiving such assistance) to support from
any other person, not exceeding the total amount of assistance
so paid to the family, which accrues during the period that the
family receives assistance under the program.''.
(b) Increasing Child Support Payments to Families and Simplifying
Child Support Distribution Rules.--
(1) Distribution rules.--
(A) In general.--Section 457(a) (42 U.S.C. 657(a))
is amended to read as follows:
``(a) In General.--Subject to subsections (d) and (e), the amounts
collected on behalf of a family as support by a State pursuant to a
plan approved under this part shall be distributed as follows:
``(1) Families receiving assistance.--In the case of a
family receiving assistance from the State, the State shall--
``(A) pay to the Federal Government the Federal
share of the amount collected, subject to paragraph
(3)(A);
``(B) retain, or pay to the family, the State share
of the amount collected, subject to paragraph (3)(B);
and
``(C) pay to the family any remaining amount.
``(2) Families that formerly received assistance.--In the
case of a family that formerly received assistance from the
State:
``(A) Current support.--To the extent that the
amount collected does not exceed the current support
amount, the State shall pay the amount to the family.
``(B) Arrearages.--Except as otherwise provided in
the State plan approved under section 454, to the
extent that the amount collected exceeds the current
support amount, the State--
``(i) shall first pay to the family the
excess amount, to the extent necessary to
satisfy support arrearages not assigned
pursuant to section 408(a)(3);
``(ii) if the amount collected exceeds the
amount required to be paid to the family under
clause (i), shall--
``(I) pay to the Federal
Government, the Federal share of the
excess amount described in this clause,
subject to paragraph (3)(A); and
``(II) retain, or pay to the
family, the State share of the excess
amount described in this clause,
subject to paragraph (3)(B); and
``(iii) shall pay to the family any
remaining amount.
``(3) Limitations.--
``(A) Federal reimbursements.--The total of the
amounts paid by the State to the Federal Government
under paragraphs (1) and (2) with respect to a family
shall not exceed the Federal share of the amount
assigned with respect to the family pursuant to section
408(a)(3).
``(B) State reimbursements.--The total of the
amounts retained by the State under paragraphs (1) and
(2) with respect to a family shall not exceed the State
share of the amount assigned with respect to the family
pursuant to section 408(a)(3).
``(4) Families that never received assistance.--In the case
of any other family, the State shall pay the amount collected
to the family.
``(5) Families under certain agreements.--Notwithstanding
paragraphs (1) through (4), in the case of an amount collected
for a family in accordance with a cooperative agreement under
section 454(33), the State shall distribute the amount
collected pursuant to the terms of the agreement.
``(6) State financing options.--To the extent that the
State share of the amount payable to a family pursuant to
paragraph (2)(B) exceeds the amount that the State estimates
(under procedures approved by the Secretary) would have been
payable to the family pursuant to former section 457(a)(2)(B)
(as in effect for the State on the day before the date this
subsection first applies to the State) if such former section
had remained in effect, the State may elect to use the grant
made to the State under section 403(a) to pay the amount, or to
have the payment considered a qualified State expenditure for
purposes of section 409(a)(7), but not both.
``(7) State option to pass through additional support with
federal financial participation.--
``(A) In general.--Notwithstanding paragraphs (1)
and (2), a State shall not be required to pay to the
Federal Government the Federal share of an amount
collected on behalf of a family that is not a recipient
of assistance under the State program funded under part
A, to the extent that the State pays the amount to the
family.
``(B) Recipients of tanf for less than 5 years.--
``(i) In general.--Notwithstanding
paragraphs (1) and (2), a State shall not be
required to pay to the Federal Government the
Federal share of an amount collected on behalf
of a family that is a recipient of assistance
under the State program funded under part A
and, if the family includes an adult, that has
received the assistance for not more than 5
years after the date of enactment of this
paragraph, to the extent that--
``(I) the State pays the amount to
the family; and
``(II) subject to clause (ii), the
amount is disregarded in determining
the amount and type of the assistance
provided to the family.
``(ii) Limitation.--Of the amount
disregarded as described in clause (i)(II), the
maximum amount that may be taken into account
for purposes of clause (i) shall not exceed
$400 per month, except that, in the case of a
family that includes 2 or more children, the
State may elect to increase the maximum amount
to not more than $600 per month.
``(8) States with demonstration waivers.--Notwithstanding
the preceding paragraphs, a State with a waiver under section
1115 that became effective on or before October 1, 1997, the
terms of which allow pass through of child support payments,
may pass through such payments in accordance with such terms
with respect to families subject to the waiver.''.
(B) State plan to include election as to which
rules to apply in distributing child support arrearages
collected on behalf of families formerly receiving
assistance.--Section 454 (42 U.S.C. 654) is amended--
(i) by striking ``and'' at the end of
paragraph (32);
(ii) by striking the period at the end of
paragraph (33) and inserting ``; and''; and
(iii) by inserting after paragraph (33) the
following:
``(34) include an election by the State to apply section
457(a)(2)(B) or former section 457(a)(2)(B) (as in effect for
the State on the day before the date this paragraph first
applies to the State) to the distribution of the amounts which
are the subject of such sections, and for so long as the State
elects to so apply such former section, the amendments made by
section 211(b) of the Work and Family Act of 2002 shall not
apply with respect to the State, notwithstanding subsection
(f)(1) of such section 211.''.
(C) Approval of estimation procedures.--Not later
than October 1, 2002, the Secretary of Health and Human
Services, in consultation with the States (as defined
for purposes of part D of title IV of the Social
Security Act), shall establish the procedures to be
used to make the estimate described in section
457(a)(6) of such Act.
(2) Current support amount defined.--Section 457(c) (42
U.S.C. 657(c)) is amended by adding at the end the following:
``(5) Current support amount.--The term `current support
amount' means, with respect to amounts collected as support on
behalf of a family, the amount designated as the monthly support
obligation of the noncustodial parent in the order requiring the
support.''.
(c) Ban on Recovery of Medicaid Costs for Certain Births.--Section
454 (42 U.S.C. 654), as amended by subsection (b)(1)(B), is amended--
(1) by striking ``and'' at the end of paragraph (33);
(2) by striking the period at the end of paragraph (34) and
inserting ``; and''; and
(3) by inserting after paragraph (34) the following:
``(35) provide that the State shall not use the State
program operated under this part to collect any amount owed to
the State by reason of costs incurred under the State plan
approved under title XIX for the birth of a child for whom
support rights have been assigned pursuant to section
408(a)(3), 471(a)(17), or 1912.''.
(d) State Option To Discontinue Certain Support Assignments.--
Section 457(b) (42 U.S.C. 657(b)) is amended by striking ``shall'' and
inserting ``may, at State option,''.
(e) Conforming Amendments.--
(1) Section 404(a) (42 U.S.C. 604(a)) is amended--
(A) by striking ``or'' at the end of paragraph (1);
(B) by striking the period at the end of paragraph
(2) and inserting ``; or''; and
(C) by adding at the end the following:
``(3) to fund payment of an amount pursuant to section
457(a)(2)(B), but only to the extent that the State properly
elects under section 457(a)(6) to use the grant to fund the
payment.''.
(2) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is
amended--
(A) in subclause (I)(aa), by striking
``457(a)(1)(B)'' and inserting ``457(a)(1)''; and
(B) by adding at the end the following:
``(V) Portions of certain child
support payments collected on behalf of
and distributed to families no longer
receiving assistance.--Such term does
not include any amount paid by a State
pursuant to section 457(a)(2)(B), but
only to the extent that the State
properly elects under section 457(a)(6)
to not have the payment considered a
qualified State expenditure.''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on October 1, 2005, and shall apply to payments
under parts A and D of title IV of the Social Security Act for
calendar quarters beginning on or after such date, and without
regard to whether regulations to implement the amendment (in
the case of State programs operated under such part D) are
promulgated by such date.
(2) State option to accelerate effective date.--A State may
elect to have the amendment made by subsection (a), the
amendments made by subsections (b) and (e), or the amendment
made by subsection (d) apply to the State and to amounts
collected by the State, on and after such date as the State may
select that is after the date of enactment of this Act, by
including an election to that effect in the State plan under
part D of title IV of the Social Security Act.
CHAPTER 2--DEMONSTRATIONS OF EXPANDED INFORMATION AND ENFORCEMENT
SEC. 241. GUIDELINES FOR INVOLVEMENT OF PUBLIC NON-IV-D CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT ENFORCEMENT.
(a) In General.--Not later than October 1, 2002, the Secretary, in
consultation with States, local governments, and individuals or
companies knowledgeable about involving public non-IV-D child support
enforcement agencies in child support enforcement, shall develop
recommendations which address the participation of public non-IV-D
child support enforcement agencies in the establishment and enforcement
of child support obligations. The matters addressed by the
recommendations shall include substantive and procedural rules which
should be followed with respect to privacy safeguards, data security,
due process rights, administrative compatibility with Federal and State
automated systems, eligibility requirements (such as registration,
licensing, and posting of bonds) for access to information and use of
enforcement mechanisms, recovery of costs by charging fees, penalties
for violations of the rules, treatment of collections for purposes of
section 458 of such Act (42 U.S.C. 658), and avoidance of duplication
of effort.
(b) Definitions.--In this title:
(1) Child support.--The term ``child support'' has the
meaning given in section 459(i)(2) of the Social Security Act
(42 U.S.C. 659(i)(2)).
(2) Public non-iv-d child support enforcement agency.--The
term ``public non-IV-D child support enforcement agency'' means
an agency, of a political subdivision of a State, which is
principally responsible for the operation of a child support
registry or for the establishment or enforcement of an
obligation to pay child support other than pursuant to the
State plan approved under part D of title IV of such Act (42
U.S.C. 651 et seq.), or a clerk of court office of a political
subdivision of a State.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(4) State.--The term ``State'' shall have the meaning given
in section 1101(a)(1) of the Social Security Act (42 U.S.C.
1301(a)(1)) for purposes of part D of title IV of such Act (42
U.S.C. 651 et seq.).
SEC. 242. DEMONSTRATIONS INVOLVING ESTABLISHMENT AND ENFORCEMENT OF
CHILD SUPPORT OBLIGATIONS BY PUBLIC NON-IV-D CHILD
SUPPORT ENFORCEMENT AGENCIES.
(a) Purpose.--The purpose of this section is to determine the
extent to which public non-IV-D child support enforcement agencies may
contribute effectively to the establishment and enforcement of child
support obligations by coordinating with law enforcement agencies,
employment agencies and organizations, hospitals and other health care
providers, and other stakeholders to establish methods to reach out to
noncustodial parents with child support obligations and prevent
nonpayment of such obligations.
(b) Applications.--
(1) Consideration.--The Secretary shall consider all
applications received from States desiring to conduct
demonstration projects under this section.
(2) Preferences.--In considering which applications to
approve under this section, the Secretary shall give preference
to applications submitted by States that had a public non-IV-D
child support enforcement agency as of January 1, 2002.
(3) Approval.--
(A) Timing; limitation on number of projects.--Not
later than July 1, 2003, the Secretary may approve not
more than 10 applications for projects providing for
the participation of a public non-IV-D child support
enforcement agency in the establishment and enforcement
of child support obligations, and, if the Secretary
receives at least 5 such applications that meet such
requirements as the Secretary may establish, shall
approve not less than 5 such applications.
(B) Requirements.--The Secretary may not approve an
application for a project unless--
(i) the applicant and the Secretary have
entered into a written agreement which
addresses at a minimum, privacy safeguards,
data security, due process rights, automated
systems, liability, oversight, and fees, and
the applicant has made a commitment to conduct
the project in accordance with the written
agreement and such other requirements as the
Secretary may establish;
(ii) the project includes a research plan
(but such plan shall not be required to use
random assignment) that is focused on assessing
the costs and benefits of the project; and
(iii) the project appears likely to
contribute significantly to the achievement of
the purpose of this title.
(c) Demonstration Authority.--On approval of an application
submitted by a State under this section--
(1) the State agency responsible for administering the
State plan under part D of title IV of the Social Security Act
(42 U.S.C. 651 et seq.) may, subject to the privacy safeguards
of section 454(26) of such Act (42 U.S.C. 654(26)), provide to
any public non-IV-D child support enforcement agency
participating in the demonstration project all information in
the State Directory of New Hires and any information obtained
through information comparisons under section 453(j)(3) of such
Act (42 U.S.C. 653(j)(3)) about an individual with respect to
whom the public non-IV-D agency is seeking to establish or
enforce a child support obligation, if the public non-IV-D
agency meets such requirements as the State may establish and
has entered into an agreement with the State under which the
public non-IV-D agency has made a binding commitment to carry
out establishment and enforcement activities with respect to
the child support obligation subject to the same data security,
privacy protection, and due process requirements applicable to
the State agency and in accordance with procedures approved by
the head of the State agency;
(2) the State agency may charge and collect fees from any
such public non-IV-D agency to recover costs incurred by the
State agency in providing information and services to the
public non-IV-D agency under the demonstration project;
(3) if a public non-IV-D child support enforcement agency
has agreed to collect past-due support (as defined in section
464(c) of such Act (42 U.S.C. 664(c))) owed by a named
individual, and the State agency has submitted a notice to the
Secretary of the Treasury pursuant to section 464 of such Act
on behalf of the public non-IV-D agency, then the Secretary of
the Treasury shall consider the State agency to have agreed to
collect such support for purposes of such section 464, and the
State agency may collect from the public non-IV-D agency any
fee which the State is required to pay for the cost of applying
the offset procedure in the case;
(4) for so long as a public non-IV-D child support
enforcement agency is participating in the demonstration
project, the public non-IV-D agency shall be considered part of
the State agency for purposes of section 469A of such Act (42
U.S.C. 669a); and
(5) for so long as a public non-IV-D child support
enforcement agency is participating in the demonstration
project, the public non-IV-D agency shall be considered part of
the State agency for purposes of section 303(e) of such Act (42
U.S.C. 503(e)) but only with respect to any child support
obligation that the public non-IV-D agency has agreed to
collect.
(d) Waiver Authority.--The Secretary may waive or vary the
applicability of any provision of section 303(e), 454(31), 464,
466(a)(7), 466(a)(17), or 469A of the Social Security Act (42 U.S.C.
503(e), 654(31), 664, 666(a)(7), 666(a)(17), 669a) to the extent
necessary to enable the conduct of demonstration projects under this
section, subject to the preservation of the data security, privacy
protection, and due process requirements of part D of title IV of such
Act (42 U.S.C. 651 et seq.).
(e) Federal Audit.--
(1) In general.--The Comptroller General of the United
States shall conduct an audit of the demonstration projects
conducted under this section for the purpose of examining and
evaluating the manner in which information and enforcement
tools are used by the public non-IV-D child support enforcement
agencies participating in the projects.
(2) Report to congress.--
(A) In general.--The Comptroller General of the
United States shall submit to Congress a report on the
audit required by paragraph (1).
(B) Timing.--The report required by subparagraph
(A) shall be so submitted not later than October 1,
2005.
(f) Secretarial Report to Congress.--
(1) In general.--The Secretary shall submit to Congress a
report on the demonstration projects conducted under this
section, which shall include the results of any research or
evaluation conducted pursuant to this title, and shall include
policy recommendations regarding the establishment and
enforcement of child support obligations by the agencies
involved.
(2) Timing.--The report required by paragraph (1) shall be
so submitted not later than October 1, 2006.
SEC. 243. GAO REPORT TO CONGRESS ON PRIVATE CHILD SUPPORT ENFORCEMENT
AGENCIES.
(a) In General.--Not later than October 1, 2002, the Comptroller
General of the United States shall submit to Congress a report on the
activities of private child support enforcement agencies that shall be
designed to help Congress determine whether the agencies are providing
a needed service in a fair manner using accepted debt collection
practices and at a reasonable fee.
(b) Matters To Be Addressed.--Among the matters addressed by the
report required by subsection (a) shall be the following:
(1) The number of private child support enforcement
agencies.
(2) The types of debt collection activities conducted by
the private agencies.
(3) The fees charged by the private agencies.
(4) The methods used by the private agencies to collect
fees from custodial parents.
(5) The nature and degree of cooperation the private
agencies receive from State agencies responsible for
administering State plans under part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.).
(6) The extent to which the conduct of the private agencies
is subject to Federal or State regulation, and if so, the
extent to which the regulations are effectively enforced.
(7) The amount of child support owed but uncollected and
changes in this amount in recent years.
(8) The average period of time required for the completion
of successful enforcement actions yielding collections of past-
due child support by both the child support enforcement
programs operated pursuant to State plans approved under part D
of title IV of the Social Security Act (42 U.S.C. 651 et seq.)
and, to the extent known, by private child support enforcement
agencies.
(9) The types of Federal and State child support
enforcement remedies and resources currently available to
private child support enforcement agencies, and the types of
such remedies and resources now restricted to use by State
agencies administering State plans referred to in paragraph
(8).
(c) Private Child Support Enforcement Agency Defined.--In this
section, the term ``private child support enforcement agency'' means a
person or any other nonpublic entity which seeks to establish or
enforce an obligation to pay child support (as defined in section
459(i)(2) of the Social Security Act (42 U.S.C. 659(i)(2)).
SEC. 244. EFFECTIVE DATE.
This chapter shall take effect on the date of enactment of this
Act.
CHAPTER 3--EXPANDED ENFORCEMENT
SEC. 251. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING
PASSPORT DENIAL.
Section 452(k) (42 U.S.C. 652(k)) is amended by striking ``$5,000''
and inserting ``$2,500''.
SEC. 252. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD
SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.
Section 464 (42 U.S.C. 664) is amended--
(1) in subsection (a)(2)(A), by striking ``(as that term is
defined for purposes of this paragraph under subsection (c))'';
and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``(1) Except as provided in
paragraph (2), as used in'' and inserting
``In''; and
(ii) by inserting ``(whether or not a
minor)'' after ``a child'' each place it
appears; and
(B) by striking paragraphs (2) and (3).
SEC. 253. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT
OBLIGATIONS.
Section 459(h) (42 U.S.C. 659(h)) is amended--
(1) in paragraph (1)(A)(ii)--
(A) in subclause (IV), by striking ``or'' after the
semicolon;
(B) in subclause (V), by inserting ``or'' after the
semicolon; and
(C) by adding at the end the following:
``(VI) subject to paragraph (3),
other than periodic benefits or
payments described in subclause (V), by
the Secretary of Veterans Affairs as
compensation for a service-connected
disability paid by the Secretary to a
former member of the Armed Forces;'';
(2) in paragraph (1)(B)(iii), by striking ``subparagraph
(A)(ii)(V)'' and inserting ``subclauses (V) and (VI) of
subparagraph (A)(ii)''; and
(3) by adding at the end the following:
``(3) Limitations with respect to compensation paid to
veterans for service-connected disabilities.--
``(A) Alimony and child support.--Compensation
described in paragraph (1)(A)(ii)(VI) shall not be
subject to withholding pursuant to this section--
``(i) for payment of alimony; or
``(ii) for payment of child support if the
individual is fewer than 60 days in arrears in
payment of the support.
``(B) Limitation.--Not more than 50 percent of any
payment of compensation described in subparagraph (A)
may be withheld pursuant to this section.''.
CHAPTER 4--MISCELLANEOUS
SEC. 261. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.
Not later than 6 months after the date of enactment of this Act,
the Secretary of Health and Human Services shall submit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the procedures that the
States use generally to locate custodial parents for whom child support
has been collected but not yet distributed due to a change in address.
The report shall include an estimate of the total amount of such
undistributed child support and the average length of time it takes for
such child support to be distributed. The Secretary shall include in
the report recommendations as to whether additional procedures should
be established at the Federal or State level to expedite the payment of
undistributed child support.
SEC. 262. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF
UNEMPLOYMENT COMPENSATION PROGRAMS.
Section 453(j) (42 U.S.C. 653(j)) is amended by adding at the end
the following:
``(7) Information comparisons and disclosure to assist in
administration of unemployment compensation programs.--
``(A) In general.--If a State agency responsible
for the administration of an unemployment compensation
program under Federal or State law transmits to the
Secretary the name and social security account number
of an individual, the Secretary shall, if the
information in the National Directory of New Hires
indicates that the individual may be employed, disclose
to the State agency the name, address, and employer
identification number of any putative employer of the
individual, subject to this paragraph.
``(B) Condition on disclosure.--The Secretary shall
make a disclosure under subparagraph (A) only to the
extent that the Secretary determines that the
disclosure would not interfere with the effective
operation of the program under this part.
``(C) Use of information.--A State agency may use
information provided under this paragraph only for
purposes of administering a program referred to in
subparagraph (A).''.
SEC. 263. IMMIGRATION PROVISIONS.
(a) Nonimmigrant Aliens Ineligible To Receive Visas and Excluded
From Admission for Nonpayment of Child Support.--
(1) In general.--Section 212(a)(10) of the Immigration and
Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at
the end the following:
``(F) Nonpayment of child support.--
``(i) In general.--Any nonimmigrant alien
is inadmissible who is legally obligated under
a judgment, decree, or order to pay child
support (as defined in section 459(i)(2) of the
Social Security Act), and whose failure to pay
such child support has resulted in an arrearage
exceeding $2,500, until child support payments
under the judgment, decree, or order are
satisfied or the nonimmigrant alien is in
compliance with an approved payment agreement.
``(ii) Waiver authorized.--The Attorney
General may waive the application of clause (i)
in the case of an alien, if the Attorney
General--
``(I) has received a request for
the waiver from the court or
administrative agency having
jurisdiction over the judgment, decree,
or order obligating the alien to pay
child support that is referred to in
such clause; or
``(II) determines that there are
prevailing humanitarian or public
interest concerns.''.
(2) Effective date.--The amendment made by this subsection
shall take effect 180 days after the date of enactment of this
Act.
(b) Authorization To Serve Legal Process in Child Support Cases on
Certain Arriving Aliens.--
(1) In general.--Section 235(d) of the Immigration and
Nationality Act (8 U.S.C. 1225(d)) is amended by adding at the
end the following:
``(5) Authority to serve process in child support cases.--
``(A) In general.--To the extent consistent with
State law, immigration officers are authorized to serve
on any alien who is an applicant for admission to the
United States legal process with respect to any action
to enforce or establish a legal obligation of an
individual to pay child support (as defined in section
459(i)(2) of the Social Security Act).
``(B) Definition.--For purposes of subparagraph
(A), the term `legal process' means any writ, order,
summons, or other similar process, which is issued by--
``(i) a court or an administrative agency
of competent jurisdiction in any State,
territory, or possession of the United States;
or
``(ii) an authorized official pursuant to
an order of such a court or agency or pursuant
to State or local law.''.
(2) Effective date.--The amendment made by this subsection
shall apply to aliens applying for admission to the United
States on or after 180 days after the date of enactment of this
Act.
(c) Authorization To Share Child Support Enforcement Information To
Enforce Immigration and Naturalization Law.--
(1) Secretarial responsibility.--Section 452 (42 U.S.C.
652) is amended by adding at the end the following:
``(m) If the Secretary receives a certification by a State agency,
in accordance with section 454(36), that an individual who is a
nonimmigrant alien (as defined in section 101(a)(15) of the Immigration
and Nationality Act) owes arrearages of child support in an amount
exceeding $2,500, the Secretary may, at the request of the State
agency, the Secretary of State, or the Attorney General, or on the
Secretary's own initiative, provide the certification to the Secretary
of State and the Attorney General in order to enable them to carry out
their responsibilities under sections 212(a)(10) and 235(d) of such
Act.''.
(2) State agency responsibility.--Section 454 (42 U.S.C.
654), as amended by section 231(c), is amended--
(A) by striking ``and'' at the end of paragraph
(34);
(B) by striking the period at the end of paragraph
(35) and inserting ``; and''; and
(C) by inserting after paragraph (35) the
following:
``(36) provide that the State agency will have in effect a
procedure for certifying to the Secretary, in such format and
accompanied by such supporting documentation as the Secretary
may require, determinations that nonimmigrant aliens owe
arrearages of child support in an amount exceeding $2,500.''.
SEC. 264. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR
SHORT-TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE
AGENCIES.
Section 474(a)(3)(B) (42 U.S.C. 674(a)(3)(B)) is amended by
inserting ``or State-licensed or State-approved child welfare agencies
providing services to such children,'' after ``this part,''.
SEC. 265. CORRECTION OF ERRORS IN CONFORMING AMENDMENTS IN THE WELFARE-
TO-WORK AND CHILD SUPPORT AMENDMENTS OF 1999.
The amendments made by section 2402 of the Emergency Supplemental
Act, 2000 (Public Law 106-246; 114 Stat. 555) shall take effect as if
included in the enactment of section 806 of the Departments of Labor,
Health and Human Services, and Education, and Related Agencies
Appropriations Act, 2000 (as enacted into law by section 1000(a)(4) of
Public Law 106-113; 113 Stat. 1501A-286).
SEC. 266. TECHNICAL CORRECTION TO CHANGED DATES FOR ABSTINENCE
EVALUATION.
(a) In General.--Section 513 of the Departments of Labor, Health
and Human Services, and Education, and Related Agencies Appropriations
Act, 2001, as enacted into law by section 1(a)(1) of the Consolidated
Appropriations Act, 2001 (Public Law 106-554; 114 Stat. 2763A-71), is
amended--
(1) in subsection (a), by striking ``Section
403(a)(5)(H)(iii) of the Social Security Act (42 U.S.C.
603(a)(5)(H)(iii))'' and inserting ``Section 403(a)(5)(G)(iii)
of the Social Security Act (42 U.S.C. 603(a)(5)(G)(iii)) (as
redesignated by section 107(a) of this Act)''; and
(2) in subsection (b), by striking ``Section 403(a)(5)(H)''
and inserting ``Section 403(a)(5)(G) (as so redesignated)''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect as if included in the enactment of section 513 of the
Departments of Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 2001, as so enacted into law.
TITLE III--PROVIDING FLEXIBILITY AND RESOURCES
Subtitle A--Resources Under TANF
SEC. 301. REAUTHORIZATION OF STATE FAMILY ASSISTANCE GRANTS.
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 ``2003 through 2007'';
and
(2) in subparagraph (E), by striking ``fiscal years 1996''
and all that follows through ``2002'' and inserting ``each of
fiscal years 2003 through 2007''.
SEC. 302. 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 2003 through 2007, such sums as are
necessary for making contingency fund grants under this
subsection in a total amount not to exceed
$2,000,000,000.'';
(2) by redesignating paragraph (4) as paragraph (2); and
(3) in paragraph (2), as so redesignated--
(A) by striking ``(3)(A)'' and inserting ``(1)'';
and
(B) by striking ``2-month'' and inserting ``3-
month''.
(b) Modification of Definition of Needy State.--Section 403(b) (42
U.S.C. 603(b)) is further amended--
(1) by striking paragraphs (5) through (7);
(2) by redesignating paragraph (8) as paragraph (5); and
(3) by inserting after paragraph (2) (as redesignated by
subsection (a)(2)) the following:
``(3) Initial determination of whether a state qualifies as
a needy state.--
``(A) In general.--For purposes of paragraph (1), a
State will be initially determined to be a needy State
for a month if the State satisfies at least 2 of the
following:
``(i) The--
``(I) average rate of total
unemployment in the State for the
period consisting of the most recent 3
months for which data are available has
increased by the lesser of 1.5
percentage points or by 50 percent over
the corresponding 3-month period in
either of the 2 most recent preceding
fiscal years; or
``(II) average insured unemployment
rate for the most recent 3 months for
which data are available has increased
by 1 percentage point over the
corresponding 3-month period in either
of the 2 most recent preceding fiscal
years.
``(ii) As determined by the Secretary of
Agriculture, the monthly average number of
households (as of the last day of each month)
that participated in the food stamp program in
the State in the then most recently concluded
3-month period for which data are available
exceeds by at least 10 percent the monthly
average number of households (as of the last
day of each month) in the State that
participated in the food stamp program in the
corresponding 3-month period in either of the 2
most recent preceding fiscal years, provided
that the Secretary makes a determination that
the State's increase in the number of such
households was due, in large measure, to
economic conditions rather than an expansion of
program eligibility requirements.
``(iii) As determined by the Secretary, the
monthly average number of families that
received assistance under the State program
funded under this part or under a program
funded with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)) in the most
recently concluded 3-month period for which
data are available from the State increased by
at least 10 percent over the number of such
families that received such benefits in the
corresponding 3-month period in either of the 2
most recent preceding fiscal years, provided
that the Secretary makes a determination that
the State's increased caseload was due, in
large measure, to economic conditions rather
than an expansion of program eligibility
requirements.
``(B) Duration.--
``(i) In general.--A State that qualifies
as a needy State--
``(I) under subparagraph (A)(i),
shall be considered a needy State until
the factor which was used to meet the
definition of needy State under that
subparagraph for the most recently
concluded 3-month period for which data
are available, falls below the level
attained for such factor in the 3-month
period in which the State first
qualified as a needy State under that
subparagraph;
``(II) under subparagraph (A)(ii),
shall be considered a needy State until
the average monthly number of
households participating in the food
stamp program for the most recently
concluded 3-month period for which data
are available nationally falls below
the food stamp base period level; and
``(III) under subparagraph
(A)(iii), shall be considered a needy
State until the number of families
receiving assistance under the State
program funded under this part or under
a program funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)) for the most recently
concluded 3-month period for which data
are available falls below the TANF base
period level.
``(ii) Seasonal variations.--
Notwithstanding subclauses (II) and (III) of
clause (i), a State shall be considered a needy
State--
``(I) under subparagraph (A)(ii),
if with respect to the State, the
monthly average number of households
participating in the food stamp program
for the most recent 3-month period for
which data are available nationally
falls below the food stamp base period
level and the Secretary determines that
this is due to expected seasonal
variations in food stamp receipt in the
State; and
``(II) under subparagraph (A)(iii),
if, with respect to a State, the
monthly average number of families
receiving assistance under the State
program funded under this part or under
a program funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)) for the most recently
concluded 3-month period for which data
are available nationally falls below
the TANF base period level and the
Secretary determines that this is due
to expected seasonal variations in
assistance receipt in the State.
``(iii) Food stamp base period level.--In
this subparagraph, the term `food stamp base
period level' means the monthly average number
of households participating in the food stamp
program that corresponds to the most recent 3-
month period for which data are available at
the time when the State first was determined to
be a needy State under this paragraph.
``(iv) TANF base period level.--In this
subparagraph, the term `TANF base period level'
means the monthly average number of families receiving assistance under
the State program funded under this part or under a program funded with
qualified State expenditures (as defined in section 409(a)(7)(B)(i))
that corresponds to the most recent 3 months for which data are
available at the time when the State first was determined to be a needy
State under this paragraph.
``(4) Exception.--
``(A) In general.--Notwithstanding paragraph (3), a
State that has unobligated TANF reserves from prior
fiscal years that equal more than 25 percent of the
total amount of grants received by the State under
subsection (a) (other than welfare-to-work grants made
under paragraph (5) of that subsection prior to fiscal
year 1999) but not yet obligated as of the end of the
preceding fiscal year shall not be a needy State under
this subsection.
``(B) Definition of unobligated tanf reserves.--In
subparagraph (A), the term `unobligated TANF reserves'
means the lessor of--
``(i) the total amount of grants made to
the State (regardless of the fiscal year in
which such funds were awarded) under subsection
(a) (other than welfare-to-work grants made
under paragraph (5) of that subsection prior to
fiscal year 1999) but not yet obligated as of
the end of the preceding fiscal year; and
``(ii) the total amount of grants made to
the State under subsection (a) (other than
welfare-to-work grants made under paragraph (5)
of that subsection prior to fiscal year 1999)
but not yet obligated as of the end of the
preceding fiscal year, plus the difference
between--
``(I) the pro rata share of the
fiscal year grants to be made under
subsection (a) to the State (other than
such welfare-to-work grants); and
``(II) current year obligations of
the total amount of grants made to all
States under subsection (a) (regardless
of the fiscal year in which such funds
were awarded) (other than such welfare-
to-work grants) through the end of the
most recent calendar quarter.''.
(c) Clarification of Reporting Requirements.--Paragraph (5) of
section 403(b) (42 U.S.C. 603(b)), as redesignated by subsection
(b)(2), is amended by striking ``on the status of the Fund'' and
inserting ``on the States that qualified for contingency funds and the
amount of funding awarded under this subsection''.
SEC. 303. REAUTHORIZATION OF SUPPLEMENTAL GRANTS FOR POPULATION
INCREASES.
Section 403(a)(3) (42 U.S.C. 603(a)) is amended--
(1) in subparagraph (A)(ii), in the matter preceding
subclause (I), by striking ``, 2000, and 2001'' and inserting
``through 2007'';
(2) in subparagraph (C)(iii), in the matter preceding
subclause (I), by striking ``fiscal years 1998, 1999, 2000, and
2001'' and inserting ``each of fiscal years 1998 through
2007'';
(3) in subparagraph (E), by striking ``1998, 1999, 2000,
and 2001'' and inserting ``2003 through 2007''; and
(4) in subparagraph (G), by striking ``2001'' and inserting
``2007''.
SEC. 304. GRANTS TO STATES FOR ADMINISTRATIVE COSTS OF IMPLEMENTING
INCREASED WORK REQUIREMENTS AND TO ENHANCE STATE
CAPABILITIES AND CASEWORKER TRAINING.
Section 403(a) (42 U.S.C. 603(a)), as amended by section 111, is
amended by adding at the end the following:
``(7) Grants to states for administrative costs of
implementing increased work requirements and to enhance state
capabilities and caseworker training.--
``(A) In general.--The Secretary shall pay each
eligible State (as defined in section 402(a)) the
amount determined under subparagraph (C) for a fiscal
year.
``(B) Use of funds.--Funds made available through a
grant made under this paragraph shall be used for
administrative costs incurred by a State in order to
comply with the work requirements applicable to
recipients under the State program funded under this
part as a result of the amendments made by the Work and
Family Act of 2002, for technical enhancement of State
capabilities with respect to the administration of the
State program, and for caseworker training, including
any of the following:
``(1) Upgrading computer systems and data processing
equipment.
``(2) Hiring additional staff to comply with reporting
requirements and work requirements imposed under this part.
``(3) Incurring expenditures for resources and support
necessary to comply with increased administrative requirements
resulting from the amendments made to this part by the Work and
Family Act of 2002.
``(4) Developing staff training and career development
programs in information technology to improve the quality of
services and maximize the effectiveness of the existing
workforce responsible for administering the State program
funded under this part.
``(5) Developing proposals to redesign the delivery of
services under the State program funded under this part and to
maximize efficiency and enhance public satisfaction through the
establishment of joint labor committees with respect to the
administration of employment and training programs.
``(6) Developing and implementing model case management
practices and policies that are designed to maintain a stable,
skilled, and professional workforce.
``(7) Developing innovative training programs to improve
the quality of services provided under the State program funded
under this part, including staff training on program
requirements and services, referral of recipients to all other
programs and services for which recipients are eligible,
screening of recipients for serious barriers to employment and
referral of recipients with such barriers to qualified
specialists, cultural diversity and sensitivity, and the rights
of recipients under all laws applicable to the activities of
the State program.
``(C) Allocation of funds.--
``(i) In general.--Subject to clauses (ii)
and (iii), out of the funds appropriated under
subparagraph (E) for a fiscal year, the
Secretary shall pay to each eligible State an
amount equal to ratio of the number of
recipients of assistance under the State
program funded under this part in the State to
the number of recipients of assistance under
all State programs funded under this part.
``(ii) Minimum allocation.--No eligible
State shall receive a payment of a grant under
this paragraph for a fiscal year that is less
than the amount equal to 1 percent of the
amount appropriated under subparagraph (E) for
such fiscal year.
``(iii) Pro rata reductions.--If the amount
appropriated pursuant to subparagraph (E) for a
fiscal year is less than the total amount of
payments otherwise required to be made under
clauses (i) and (ii) for the fiscal year, then
the amount otherwise payable to any eligible
State for the fiscal year under this
subparagraph shall be reduced by a percentage
equal to the amount so appropriated divided by
such total amount.
``(D) Requirement.--Amounts paid to an eligible
State under this paragraph for a fiscal year shall be
subject to the same requirements as amounts paid to the
State under paragraph (1).
``(E) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each of fiscal
years 2003 through 2007, $50,000,000 for making
payments to States under this paragraph.''.
SEC. 305. CREDIT FOR STATE EXPENDITURES TO CARRY OUT THE PURPOSES OF
TANF.
Section 409(a)(7)(B)(i)(II) (42 U.S.C. 609(a)(7)(B)(i)(II)) is
amended--
(1) in item (aa), by striking ``or'' at the end;
(2) in item (bb), by striking the period and inserting ``;
or''; and
(3) by adding at the end the following:
``(cc) the expenditures are
directly related to 1 of the
purposes set forth in section
401(a).''.
SEC. 306. REAUTHORIZATION OF GRANTS FOR INDIAN TRIBES AND PENALTY FOR
FAILURE TO MAINTAIN HISTORIC STATE EFFORT.
(a) 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
``2003 through 2007''.
(b) Continuation of Penalties for Failure of a 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 ``2003, 2004, 2005,
2006, or 2007''; and
(2) in subparagraph (B)(ii), by striking ``1997 through
2002'' and inserting ``2003 through 2007''.
SEC. 307. 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. 308. PROMOTING WORK AND RESPONSIBILITY AMONG ALL FAMILIES WITH
CHILDREN.
(a) State Option To Assist Legal Immigrants Under TANF.--
(1) In general.--Section 403(c)(2) of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1613(c)(2)) is amended by adding at the end the
following:
``(L) At State option, 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 amendment.--Section 408(e) of the Social
Security Act (42 U.S.C. 608(e)) is amended to read as follows:
``(e) Eligibility of Certain Aliens.--Except as provided in
subsection (f) (relating to deeming requirements), at State option, a
State may provide assistance, benefits, or services to a qualified
alien (as defined in subsections (b) and (c) of section 431 of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1641)) under the State program funded under this part or with
qualified State expenditures (as defined in section 409(a)(7)(B)(i)) in
the same manner and to the same extent as a citizen of the United
States would be provided such assistance, benefits, or services.''.
(b) 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) In the case of a State that elects
the option under section 408(e) to provide
benefits or assistance to qualified aliens, the
document shall include--
``(I) an explanation of how the
State shall ensure that, with respect
to such aliens who entered the United
States after 1996, the income of any
sponsor of such an alien is considered
when determining the alien's
eligibility for any means-tested
benefits; and
``(II) a description of the process
the State uses to request reimbursement
for any means-tested benefits provided
to such an alien who entered the United
States after 1996, from any sponsor of
the alien in accordance with the
requirements of section 213A of the
Immigration and Nationality Act (8
U.S.C. 1183a) and the legal remedies
the State may use to enforce affidavits
of support under that section.''.
(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)'' after ``United States''.
(d) Grants to States Disproportionately Impacted by Federal
Immigration Policy.--Section 403(a) (42 U.S.C. 603(a)), as amended by
section 304, is amended by adding at the end the following:
``(8) Grants to states disproportionately impacted by
federal immigration policy.--
``(A) In general.--The Secretary shall pay each
State described in subparagraph (B) the amount
determined under subparagraph (C) for a fiscal year.
``(B) State described.--For purposes of
subparagraph (A), a State is described in this
subparagraph if the State notifies the Secretary not
later than June 1 of the fiscal year preceding the
fiscal year for which the State is to receive a payment
under this paragraph that, with respect to the fiscal
year for which such a grant is to be made, the State
intends to provide assistance, benefits, or services
under the State program funded under this part or with
qualified State expenditures (as defined in section
409(a)(7)(B)(i)) to all qualified aliens in accordance
with section 408(e).
``(C) Allocation of funds.--
``(i) In general.--Subject to clause (ii),
the Secretary shall allocate the funds
appropriated under subparagraph (E) for a
fiscal year as follows:
``(I) An amount equal to 40 percent
of such funds shall be distributed
among the States described in
subparagraph (B) for such fiscal year
based on the number of low-income
children in noncitizen families in all
such States, as determined by the
Secretary.
``(II) An amount equal to 60
percent of such funds shall be
distributed among the States described
in subparagraph (B) for such fiscal
year based on the increase during the
period that begins with 1996 and ends
with the most recent year for which
data is available in the number of
noncitizens (all ages, all incomes) in
the State as compared to the increase
in such number of such noncitizens for
all such States for the fiscal year.
``(ii) Pro rata reductions.--If the amount
appropriated pursuant to subparagraph (E) for a
fiscal year is less than the total amount of
payments otherwise required to be made under
clause (i) for the fiscal year, then the amount
otherwise payable to any State described in
subparagraph (B) for the fiscal year under
clause (i) shall be reduced by a percentage
equal to the amount so appropriated divided by
such total amount.
``(iii) No judicial review.--
Notwithstanding any other provision of law, the
allocation of funds under this subparagraph for
a fiscal year shall not be subject to judicial
review.
``(D) Requirement.--Amounts paid to a State under
this paragraph for a fiscal year shall be subject to
the same requirements as amounts paid to the State
under paragraph (1).
``(E) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each of fiscal
years 2003 through 2007, $50,000,000 for making
payments to States under this paragraph.''.
SEC. 309. DATA COLLECTION AND REPORTING.
Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended in the
matter preceding clause (i), by striking ``(except for information
relating to activities carried out under section 403(a)(5))'' and
inserting `` (and in complying with this requirement, the Secretary
shall require not more than 10 States to ensure that the following case
record information is reported in a manner that permits analysis of
such information by race, ethnicity or national origin, primary
language, gender, and educational level, including analysis using a
combination of these factors, and shall submit an annual report to
Congress containing such data)''.
SEC. 310. DEFINITION OF ASSISTANCE.
Section 419 (42 U.S.C. 619) is amended by adding at the end the
following:
``(6) Assistance.--The term `assistance' means cash
benefits and does not include child care or other support
services.''.
SEC. 311. AUTHORITY TO USE TANF FUNDS FOR HOUSING BENEFITS.
(a) In General.--Section 404 (42 U.S.C. 604) is amended by
inserting at the end the following:
``(l) Use of Funds for Supplemental Housing Benefits.--
``(1) In general.--The provision by a State of supplemental
housing benefits to or on behalf of an individual eligible for
assistance under the State program funded under this part,
using funds from a grant made under section 403(a) of this
title, shall not be considered to be the provision of
assistance to the individual under the State program funded
under this part for any purpose except in determining the
allowability of the expenditure under section 401(a)(1).
``(2) Permitted use of funds.--A State may not use any part
of the funds from a grant made under section 403 to supplant
rather than supplement State expenditures on housing-related
programs.
``(3) Definition of supplemental housing benefits.--In this
subsection, the term `supplemental housing benefits' means
payments made to or on behalf of an individual to reduce or
reimburse the costs incurred by the individual for housing
accommodations, and the receipt of which does not reduce the
amount of assistance, benefits, or services an individual would
otherwise receive under the State program funded under this
part or under a program funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i)).''.
(b) State Plan.--Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as
amended by section 308(b), is amended by adding at the end the
following:
``(vi) The document shall describe--
``(I) the primary problems that
families receiving assistance and
families who have recently stopped
receiving assistance under the State
program funded under this part
experience in securing and retaining
adequate, affordable housing and the
estimated extent of each such problem,
including the price of such housing in
various areas of the State that include
a large proportion of recipients of
assistance under the State program;
``(II) the steps that have been and
will be taken by the State and other
public or private entities that
administer housing programs in the
State to address the problems described
in subclause (I);
``(III) the methods the State has
adopted to identify barriers to work
posed by the living arrangement,
housing cost, and housing location of
families eligible for the State program
funded under this part; and
``(IV) the services and benefits
that have been or will be provided by
the State or other public or private
entities to help families overcome the
barriers so identified.''.
Subtitle B--Resources Under Other Programs
SEC. 321. RESTORATION OF FUNDING FOR THE SOCIAL SERVICES BLOCK GRANT.
(a) Restoration of Funds for the Social Services Block Grant.--
Section 2003(c) (42 U.S.C. 1379b(c)) is amended--
(1) in paragraph (10), by striking ``and'';
(2) in paragraph (11), by striking ``and each fiscal year
thereafter.'' and inserting ``; and''; and
(3) by adding at the end the following:
``(12) $1,900,000,000 for fiscal year 2003;
``(13) $1,950,000,000 for fiscal year 2004;
``(14) $2,050,000,000 for fiscal year 2005;
``(15) $2,200,000,000 for fiscal year 2006; and
``(16) $2,800,000,000 for fiscal year 2007 and each fiscal
year thereafter.''.
(b) Restoration of Authority To Transfer up to 10 Percent of TANF
Funds.--Section 404(d)(2) (42 U.S.C. 604(d)(2)) is amended to read as
follows:
``(2) Limitation on amount transferable to title xx
programs.--A State may use not more than 10 percent of the
amount of any grant made to the State under section 403(a) for
a fiscal year to carry out State programs pursuant to title
XX.''.
SEC. 322. ONE-YEAR EXTENSION AND 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) 1-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 ``2003''.
(2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C.
1396a(e)(1)(B)) is amended by striking ``2002'' and inserting
``2003''.
(d) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 (42 U.S.C. 1396r-6), as amended by subsections (a)(2)(A)
and (c), is amended by inserting after subsection (f) the following:
``(g) Additional Provisions.--
``(1) Collection and reporting of participation
information.--Each State shall--
``(A) collect and submit to the Secretary, in a
format specified by the Secretary, information on
average monthly enrollment and average monthly
participation rates for adults and children under this
section; and
``(B) make such information publicly available.
Such information shall be submitted under subparagraph (A) at
the same time and frequency in which other enrollment
information under this title is submitted to the Secretary.
Using such information, the Secretary shall submit to Congress
annual reports concerning such rates.''.
(e) Coordination of Work.--Section 1925(g) (42 U.S.C. 1396r-6(g)),
as added by subsection (d), is amended by adding at the end the
following new paragraph:
``(2) Coordination with administration for children and
families.--The Administrator of the Centers for Medicare &
Medicaid Services, in carrying out this section, shall work
with the Assistant Secretary for the Administration for
Children and Families to develop guidance or other technical
assistance for States regarding best practices in guaranteeing
access to transitional medical assistance under this
section.''.
(f) Elimination of TMA Requirement for States That Extend Coverage
to Children and Parents Through 185 Percent of Poverty.--
(1) In general.--Section 1925 (42 U.S.C. 1396r-6) is
further amended by inserting after subsection (g), as added by
subsection (d), the following:
``(h) Provisions Optional for States That Extend Coverage to
Children and Parents Through 185 Percent of Poverty.--A State may (but
is not required to) meet the requirements of subsections (a) and (b) if
it provides for medical assistance under this title (whether under
section 1931, through a waiver under section 1115, or otherwise) to
families (including both children and caretaker relatives) the average
gross monthly earning of which (less such costs for such child care as
is necessary for the employment of a caretaker relative) is at or below
a level that is at least 185 percent of the official poverty line (as
defined by the Office of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus Budget Reconciliation Act
of 1981) applicable to a family of the size involved.''.
(2) Conforming amendments.--Section 1925 (42 U.S.C. 1396r-
6) is further amended, in subsections (a)(1) and (b)(1), by
inserting ``, but subject to subsection (h),'' after
``Notwithstanding any other provision of this title,'' each
place it appears.
(g) Requirement of Notice for All Families Losing TANF.--Subsection
(a)(2) of section 1925 (42 U.S.C. 1396r-6) is amended by adding after
and below subparagraph (B), the following:
``Each State shall provide, to families whose aid under part A
or E of title IV has terminated but whose eligibility for
medical assistance under this title continues, written notice
of their ongoing eligibility for such medical assistance. If a
State makes a determination that any member of a family whose
aid under part A or E of title IV is being terminated is also
no longer eligible for medical assistance under this title, the
notice of such determination shall be supplemented by a 1-page
notification form describing the different ways in which
individuals and families may qualify for such medical
assistance and explaining that individuals and families do not
have to be receiving aid under part A or E of title IV in order
to qualify for such medical assistance. Such notice shall
further be supplemented by information on how to apply for
child health assistance under the State children's health
insurance program under title XXI and how to apply for medical
assistance under this title.''.
(h) Extending Use of Outstationed Workers To Accept Applications
for Transitional Medical Assistance.--Section 1902(a)(55) (42 U.S.C.
1396a(a)(55)) is amended by inserting ``and under section 1931'' after
``(a)(10)(A)(ii)(IX)''.
(i) Effective Dates.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to calendar
quarters beginning on or after October 1, 2002, without regard
to whether or not final regulations to carry out such amendments have
been promulgated by such date.
(2) Notice.--The amendment made by subsection (g) shall
take effect 6 months after the date of enactment of this Act.
(3) Delay permitted for state plan amendment.--In the case
of a State plan for medical assistance under title XIX of the
Social Security Act which the Secretary of Health and Human
Services determines requires State legislation (other than
legislation appropriating funds) in order for the plan to meet
the additional requirements imposed by the amendments made by
this section, the State plan shall not be regarded as failing
to comply with the requirements of such title solely on the
basis of its failure to meet these additional requirements
before the first day of the first calendar quarter beginning
after the close of the first regular session of the State
legislature that begins after the date of enactment of this
Act. For purposes of the previous sentence, in the case of a
State that has a 2-year legislative session, each year of such
session shall be deemed to be a separate regular session of the
State legislature.
SEC. 323. 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 402(b)
and 403 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 but, except as provided in subparagraph (B),
consistent with sections 401(a) and 421 of such Act, 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, 2002, 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. 324. 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,
2005; and
(B) the final report, not later than December 31,
2008.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $50,000,000 for the period of
fiscal years 2003 through 2007.
(f) Annual Assessment of Regional Labor Markets To Target Higher
Entry Level Wage Opportunities in Industries Experiencing Labor
Shortages.--
(1) In general.--An State to which a grant is made under
this section annually shall conduct an assessment of its
regional labor markets that includes the following:
(A) Labor market.--The assessment shall--
(i) identify industries or occupations that
have or expect growth, the loss of skilled
workers, or that have a demand for a subset of
workers;
(ii) identify the entry-level education and
skills requirements for the industries or
occupations that have or anticipate a need for
workers; and
(iii) analyze the entry-level wages and
benefits in identified industries or
occupations.
(B) Job seekers.--The assessment shall create a
profile of the characteristics of the unemployed and
underemployed residents of the State, including
educational attainment, barriers to employment,
geographic concentrations, and access to needed support
services.
(C) Education and training infrastructure.--The
assessment shall create a profile of the State's
available education, training, and support services to
prepare workers for the identified industries or
occupations.
(D) Aligning industries and job seeker needs.--The
assessment shall compare the characteristics of the
identified industries or occupations to the profiles
created under subparagraphs (B) and (C).
(2) Provision of information to localities.--The State
shall share with local political subdivisions of the State--
(A) information regarding the existence of higher
entry-wage job opportunities in industries experiencing
labor shortages; and
(B) opportunities for collaboration with
institutions of higher education, community-based
organizations, and economic development and welfare
agencies.
(3) Data.--A State may use data available as of the date
the State begins an assessment under paragraph (1) to conduct
such assessment if such data provides the information necessary
to conduct the assessment described in that paragraph.
(4) Reports.--
(A) State reports.--Each State to which a grant is
made under this section annually shall submit a report
to the Secretary that contains the assessment required
under paragraph (1).
(B) Report to congress.--The Secretary annually
shall submit a report to Congress compiling the State
reports submitted under subparagraph (A).
SEC. 325. 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.
TITLE IV--EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided, the amendments made
by this Act shall take effect on October 1, 2002, and shall apply to
payments under parts A and D of title IV of the Social Security Act for
calendar quarters beginning on or after such date, without regard to
whether regulations to implement the amendments are promulgated by such
date.
(b) Delay Permitted if State Legislation Required.--In the case of
a State plan under section 402(a) or 454 of the Social Security Act (42
U.S.C. 602(a), 654) which the Secretary of Health and Human Services
determines requires State legislation (other than legislation
appropriating funds) in order for the plan to meet the additional
requirements imposed by the amendments made by this Act, the State plan
shall not be regarded as failing to comply with the requirements of
such section 402(a) or 454 solely on the basis of the failure of the
plan to meet such additional requirements before the 1st day of the 1st
calendar quarter beginning after the close of the 1st regular session
of the State legislature that begins after the date of enactment of
this Act. For purposes of the previous sentence, in the case of a State
that has a 2-year legislative session, each year of such session shall
be deemed to be a separate regular session of the State legislature.
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