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106th Congress                                            Rept. 106-456
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
                   WELFARE-TO-WORK AMENDMENTS OF 1999

                                _______
                                

                November 5, 1999.--Ordered to be printed

                                _______
                                

   Mr. Goodling, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3172]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 3172) to amend the welfare-to-work 
program and modify the welfare-to-work performance bonus, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Welfare-to-Work Amendments of 1999''.

SEC. 2. FLEXIBILITY IN ELIGIBILITY FOR PARTICIPATION IN WELFARE-TO-WORK 
                    PROGRAM.

  (a) In General.--Section 403(a)(5)(C)(ii) of the Social Security Act 
(42 U.S.C. 603(a)(5)(C)(ii)) is amended to read as follows:
                          ``(ii) General eligibility.--An entity that 
                        operates a project with funds provided under 
                        this paragraph may expend funds provided to the 
                        project for the benefit of recipients of 
                        assistance under the program funded under this 
                        part of the State in which the entity is 
                        located who--
                                  ``(I) has received assistance under 
                                the State program funded under this 
                                part (whether in effect before or after 
                                the amendments made by section 103 of 
                                the Personal Responsibility and Work 
                                Opportunity Reconciliation Act of 1996 
                                first apply to the State) for at least 
                                30 months (whether or not consecutive); 
                                or
                                  ``(II) within 12 months, will become 
                                ineligible for assistance under the 
                                State program funded under this part by 
                                reason of a durational limit on such 
                                assistance, without regard to any 
                                exemption provided pursuant to section 
                                408(a)(7)(C) that may apply to the 
                                individual.''.
  (b) Noncustodial Parents.--
          (1) In general.--Section 403(a)(5)(C) of such Act (42 U.S.C. 
        603(a)(5)(C)) is amended--
                  (A) by redesignating clauses (iii) through (viii) as 
                clauses (iv) through (ix), respectively; and
                  (B) by inserting after clause (ii) the following:
                          ``(iii) Noncustodial parents.--An entity that 
                        operates a project with funds provided under 
                        this paragraph may use the funds to provide 
                        services in a form described in clause (i) to 
                        noncustodial parents with respect to whom the 
                        requirements of the following subclauses are 
                        met:
                                  ``(I) The noncustodial parent is 
                                unemployed, underemployed, or having 
                                difficulty in paying child support 
                                obligations.
                                  ``(II) At least 1 of the following 
                                applies to a minor child of the 
                                noncustodial parent (with preference in 
                                the determination of the noncustodial 
                                parents to be provided services under 
                                this paragraph to be provided by the 
                                entity to those noncustodial parents 
                                with minor children who meet, or who 
                                have custodial parents who meet, the 
                                requirements of item (aa)):
                                          ``(aa) The minor child or the 
                                        custodial parent of the minor 
                                        child meets the requirements of 
                                        subclause (I) or (II) of clause 
                                        (ii).
                                          ``(bb) The minor child is 
                                        eligible for, or is receiving, 
                                        benefits under the program 
                                        funded under this part.
                                          ``(cc) The minor child 
                                        received benefits under the 
                                        program funded under this part 
                                        in the 12-month period 
                                        preceding the date of the 
                                        determination but no longer 
                                        receives such benefits.
                                          ``(dd) The minor child is 
                                        eligible for, or is receiving, 
                                        assistance under the Food Stamp 
                                        Act of 1977, benefits under the 
                                        supplemental security income 
                                        program under title XVI of this 
                                        Act, medical assistance under 
                                        title XIX of this Act, or child 
                                        health assistance under title 
                                        XXI of this Act.
                                  ``(III) In the case of a noncustodial 
                                parent who becomes enrolled in the 
                                project on or after the date of the 
                                enactment of this clause, the 
                                noncustodial parent is in compliance 
                                with the terms of an oral or written 
                                personal responsibility contract 
                                entered into among the noncustodial 
                                parent, the entity, and (unless the 
                                entity demonstrates to the Secretary 
                                that the entity is not capable of 
                                coordinating with such agency) the 
                                agency responsible for administering 
                                the State plan under part D, which was 
                                developed taking into account the 
                                employment and child support status of 
                                the noncustodial parent, which was 
                                entered into not later than 30 (or, at 
                                the option of the entity, not later 
                                than 90) days after the noncustodial 
                                parent was enrolled in the project, and 
                                which, at a minimum, includes the 
                                following:
                                          ``(aa) A commitment by the 
                                        noncustodial parent to 
                                        cooperate, at the earliest 
                                        opportunity, in the 
                                        establishment of the paternity 
                                        of the minor child, through 
                                        voluntary acknowledgement or 
                                        other procedures, and in the 
                                        establishment of a child 
                                        support order.
                                          ``(bb) A commitment by the 
                                        noncustodial parent to 
                                        cooperate in the payment of 
                                        child support for the minor 
                                        child, which may include a 
                                        modification of an existing 
                                        support order to take into 
                                        account the ability of the 
                                        noncustodial parent to pay such 
                                        support and the participation 
                                        of such parent in the project.
                                          ``(cc) A commitment by the 
                                        noncustodial parent to 
                                        participate in employment or 
                                        related activities that will 
                                        enable the noncustodial parent 
                                        to make regular child support 
                                        payments, and if the 
                                        noncustodial parent has not 
                                        attained 20 years of age, such 
                                        related activities may include 
                                        completion of high school, a 
                                        general equivalency degree, or 
                                        other education directly 
                                        related to employment.
                                          ``(dd) A description of the 
                                        services to be provided under 
                                        this paragraph, and a 
                                        commitment by the noncustodial 
                                        parent to participate in such 
                                        services, that are designed to 
                                        assist the noncustodial parent 
                                        obtain and retain employment, 
                                        increase earnings, and enhance 
                                        the financial and emotional 
                                        contributions to the well-being 
                                        of the minor child.
                                In order to protect custodial parents 
                                and children who may be at risk of 
                                domestic violence, the preceding 
                                provisions of this subclause shall not 
                                be construed to affect any other 
                                provision of law requiring a custodial 
                                parent to cooperate in establishing the 
                                paternity of a child or establishing or 
                                enforcing a support order with respect 
                                to a child, or entitling a custodial 
                                parent to refuse, for good cause, to 
                                provide such cooperation as a condition 
                                of assistance or benefit under any 
                                program, shall not be construed to 
                                require such cooperation by the 
                                custodial parent as a condition of 
                                participation of either parent in the 
                                program authorized under this 
                                paragraph, and shall not be construed 
                                to require a custodial parent to 
                                cooperate with or participate in any 
                                activity under this clause. The entity 
                                operating a project under this clause 
                                with funds provided under this 
                                paragraph shall consult with domestic 
                                violence prevention and intervention 
                                organizations in the development of the 
                                project.''.
          (2) Conforming amendment.--Section 412(a)(3)(C)(ii) of such 
        Act (42 U.S.C. 612(a)(3)(C)(ii)) is amended by striking 
        ``(vii)'' and inserting ``(viii)''.
  (c) Recipients With Characteristics of Long-Term Dependency; Children 
Aging Out of Foster Care.--
          (1) In general.--Section 403(a)(5)(C)(iv) of such Act (42 
        U.S.C. 603(a)(5)(C)(iv)), as so redesignated by subsection 
        (b)(1)(A) of this section, is amended--
                  (A) by striking ``or'' at the end of subclause (I); 
                and
                  (B) by striking subclause (II) and inserting the 
                following:
                                  ``(II) to children--
                                          ``(aa) who have attained 18 
                                        years of age but not 25 years 
                                        of age; and
                                          ``(bb) who, before attaining 
                                        18 years of age, were 
                                        recipients of foster care 
                                        maintenance payments (as 
                                        defined in section 475(4)) 
                                        under part E or were in foster 
                                        care under the responsibility 
                                        of a State;
                                  ``(III) to recipients of assistance 
                                under the State program funded under 
                                this part, determined to have 
                                significant barriers to self-
                                sufficiency, pursuant to criteria 
                                established by the local private 
                                industry council; or
                                  ``(IV) to custodial parents with 
                                incomes below 100 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).''.
          (2) Conforming amendments.--Section 403(a)(5)(C)(iv) of such 
        Act (42 U.S.C. 603(a)(5)(C)(iv)), as so redesignated by 
        subsection (b)(1)(A) of this section, is amended--
                  (A) in the heading by inserting ``hard to employ'' 
                before ``individuals''; and
                  (B) in the last sentence by striking ``clause (ii)'' 
                and inserting ``clauses (ii) and (iii) and, as 
                appropriate, clause (v)''.
  (d) Conforming Amendment.--Section 404(k)(1)(C)(iii) of such Act (42 
U.S.C. 604(k)(1)(C)(iii)) is amended by striking ``item (aa) or (bb) of 
section 403(a)(5)(C)(ii)(II)'' and inserting ``section 
403(a)(5)(C)(iii)''.

SEC. 3. LIMITED VOCATIONAL EDUCATIONAL AND JOB TRAINING INCLUDED AS 
                    ALLOWABLE ACTIVITIES.

  Section 403(a)(5)(C)(i) of the Social Security Act (42 U.S.C. 
603(a)(5)(C)(i)) is amended by inserting after subclause (VI) the 
following:
                                  ``(VII) Not more than 6 months of 
                                vocational educational or job 
                                training.''.

SEC. 4. CERTAIN GRANTEES AUTHORIZED TO PROVIDE EMPLOYMENT SERVICES 
                    DIRECTLY.

  Section 403(a)(5)(C)(i)(IV) of the Social Security Act (42 U.S.C. 
603(a)(5)(C)(i)(IV)) is amended by inserting ``, or if the entity is 
not a private industry council or workforce investment board, the 
direct provision of such services'' before the period.

SEC. 5. SIMPLIFICATION AND COORDINATION OF REPORTING REQUIREMENTS.

  (a) Elimination of Current Requirements.--Section 411(a)(1)(A) of the 
Social Security Act (42 U.S.C. 611(a)(1)(A)) is amended--
          (1) in the matter preceding clause (i), by inserting 
        ``(except for information relating to activities carried out 
        under section 403(a)(5))'' after ``part''; and
          (2) by striking clause (xviii).
  (b) Establishment of Reporting Requirement.--Section 403(a)(5)(C) of 
the Social Security Act (42 U.S.C. 603(a)(5)(C)), as amended by section 
2(b)(1) of this Act, is amended by adding at the end the following:
                          ``(x) 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 participant information and 
                        the reporting of such information by entities 
                        carrying out activities under this 
                        paragraph.''.

SEC. 6. MODIFICATION OF SET-ASIDE OF PORTION OF WELFARE-TO-WORK FUNDS 
                    FOR SUCCESSFUL PERFORMANCE BONUS.

  Section 403(a)(5)(E)(vi) of the Social Security Act (42 U.S.C. 
603(a)(5)(E)(vi)) is amended by striking ``$100,000,000'' and inserting 
``$35,000,000''.

SEC. 7. FUNDING AMENDMENT.

  Section 403(a)(5)(I)(i) of the Social Security Act (42 U.S.C. 
603(a)(5)(I)(i)) is amended by striking ``$1,500,000,000'' and all that 
follows and inserting ``for grants under this paragraph--
                                  ``(I) $1,500,000,000 for fiscal year 
                                1998; and
                                  ``(II) $1,435,000,000 for fiscal year 
                                1999.''.

                                Purpose

    The purpose of this Act is to amend the Welfare-to-Work 
program under Title IV, part A of the Social Security Act, in 
order to increase the program's flexibility and promote the 
simplification of reporting requirements.

                            Committee Action

    The Committee on Education and the Workforce held a hearing 
relating to this bill on September 9, 1999 in Washington, DC. 
The ``Welfare Reform: Assessing the Progress of Work-Related 
Provisions'' hearing was held by the Subcommittee on 
Postsecondary Education, Training and Life-Long Learning. The 
Subcommittee received testimony from two panels of witnesses. 
Panel one: Mr. Raymond L. Bramucci, Assistant Secretary, 
Employment and Training Administration, U.S. Department of 
Labor, Washington, DC; and Mr. Al Collins, Director, Office of 
Family Assistance, Administration for Children and Families, 
U.S. Department of Health and Human Services, Washington, DC. 
Panel two: Ms. Cynthia M. Fagnoni, Director, Education, 
Workforce and Income Security Issues, United States General 
Accounting Office, Washington, DC; Mr. Robert Rector, Senior 
Policy Analyst, Welfare and Family Issues, The Heritage 
Foundation, Washington, DC; Mr. Robert Bernhard, Manager of 
Human Resources Department, Key Plastics, York, PA; Mr. Jason 
Turner, Commissioner, New York City Human Resource 
Administration, New York, NY; Mr. David Butler, Vice President, 
Manpower Demonstration Research Corporation (MDRC), New York, 
NY; Mr. Wendell Primus, Director of Income Security, The Center 
on Budget and Policy Priorities, Washington, DC; Mr. Rodney 
Carroll, Chief Operating Officer, Welfare To Work Partnership, 
Operations Division Manager, UPS, Washington, DC.

                           Legislative Action

    On October 28, 1999, Representative Bill Goodling (R-PA) 
introduced H.R. 3172, a bill to amend the Welfare-to-Work 
program and modify the Welfare-to-Work bonus.
    On November 3, 1999, the Committee on Education and the 
Workforce assembled to consider H.R. 3172. An amendment in the 
nature of a substitute, offered by Chairman McKeon, was adopted 
by voice vote, and the bill, as amended, was reported by the 
Committee on Education and the Workforce by voice vote. The 
Committee also considered a unanimous consent request by the 
Chairman to report the bill H.R. 3073, ``The Fathers Count 
Act,'' to the House of Representatives with an amendment in the 
nature of a substitute which was the text of the amendment in 
the nature of a substitute adopted for H.R. 3172. The unanimous 
consent was objected to by Representative Clay.

                                Summary

    This legislation amends the Welfare-to-Work program 
established as part of the Balanced Budget Act of 1997. The 
program provided a total of $3 billion for fiscal years 1998 
and 1999 in order to help States and localities transition hard 
to employ welfare recipients into work and toward self-
sufficiency.

Hard-to-employ long-term recipients

    Under present law, at least 70 percent of Welfare-to-Work 
funds must be spent on Temporary Assistance for Needy Families 
(TANF) program participants or noncustodial parents who meet 
each of the following criteria:
    At least two of the following requirements:
          (1) be a school dropout or have no general 
        equivalency degree, and have low skills in reading or 
        math;
          (2) require substance abuse treatment for employment; 
        or
          (3) have a poor work history.
    In addition, the recipient must either have received Aid to 
Families with Dependent Children (AFDC) or TANF for 30 months 
(not necessarily consecutive) or be within 12 months of losing 
eligibility because of a time limit.
    Not more than 30 percent of the funds may be used to 
provide assistance to recipients of assistance who have 
characteristics associated with long-term welfare dependence 
(such as dropping out of school, teen pregnancy, or poor work 
history).
    H.R. 3172 allows funds to be used for individuals who meet 
either of the current criteria related to long-term welfare 
dependency or time-limits. However, unlike under current law, 
recipient need not meet additional criteria in order to receive 
these services. In addition, H.R. 3172 allows up to 30 percent 
of funds to be used to provide assistance to recipients with 
characteristics associated with long-term welfare dependency; 
children aging out of foster care, custodial parents living 
below poverty, or for individuals determined to have 
significant barriers to self-sufficiency as determined by 
criteria established by the local workforce development boards.

Noncustodial parents

    Under current law, to qualify for benefits, noncustodial 
parents must meet the same criteria as custodial parents, as 
described above.
    Under H.R. 3172, non-custodial parents must meet new and 
expanded eligibility criteria. First, the noncustodial parent 
must be unemployed, underemployed, or have difficulty paying 
child support. Second, at least one of the following must apply 
to the noncustodial parent's child:
          (1) the minor child (or custodial parent) must have 
        received assistance for 30 months or be within 12 
        months of a time limit that would result in loss of 
        assistance;
          (2) the minor child must be eligible for or receiving 
        TANF benefits;
          (3) the minor child must have left TANF within the 
        past 12 months;
          (4) the minor child must be eligible for or receiving 
        benefits from the Food Stamp program, the Supplemental 
        Security Income program, the Medicaid program, or the 
        State Children's Health Insurance Program.
    The noncustodial parent must also be in compliance with a 
written or oral personal responsibility contract developed in 
cooperation with the local Child Support Enforcement agency 
that includes a commitment by the noncustodial parent to:
          (1) cooperate in establishing paternity (if 
        necessary) and a child support order;
          (2) pay child support (may be modified in accord with 
        the father's ability to pay); and
          (3) work in order to make regular child support 
        payments or, for those under age 20, participate in 
        high school education or education directly related to 
        employment.
    The contract must also contain a description of services 
offered to the noncustodial parent and a commitment by the 
noncustodial parent to follow the agreement. This requirement 
applies only to individuals enrolled after the date of 
enactment of this legislation. The Secretary may waive the 
child support requirement if projects lack the capacity to 
coordinate with the child support agency. Grantees receiving 
these funds are also required to take various steps to protect 
parents and children against domestic violence.

Children aging out of foster care

    Under current law, there are no provisions providing for 
children aging out of foster care to receive assistance under 
the Welfare-to-Work program. Under H.R. 3172, children 18 but 
not yet 25 years of age who have left foster care are eligible 
to participate in this program. [Note: Former foster care 
youths can only be served with the portion of Welfare-to-Work 
funds set aside for individuals with characteristics associated 
with long-term welfare dependency (up to 30 percent of Welfare-
to-Work funds).]

Limited vocational educational and job training as allowable activity

    Under current law, Welfare-to-Work funds can be spent on 
the following work related activities:
          (1) community service work or work experience;
          (2) wage subsidies;
          (3) on-the-job training;
          (4) public or private contracts for programs of job 
        readiness, placement, and post-employment services;
          (5) job vouchers;
          (6) job retention or other support services, if such 
        services aren't otherwise available.
    Under H.R. 3172, this list of activities is expanded to 
include vocational educational job training for a maximum of 6 
months.

Certain grantees authorized to provide employment services directly

    Under current law, job readiness, placement, and post-
employment services must be provided for through contracts with 
public or private providers or vouchers; they cannot be 
provided directly by grantees, which typically means the 
Workforce Investment Boards. This provision is consistent with 
the Workforce Investment Act, under which these boards oversee 
programs as opposed to actually providing direct services. H.R. 
3172 modifies current language in those instances where 
entities other than Workforce Investment Boards receive 
Welfare-to-Work grants, by allowing such entities to provide 
direct services.

Simplification and coordination of reporting requirements present law

    Under current law, States are required to collect monthly, 
and report quarterly, data on families, adults, and children 
receiving TANF assistance. This report includes data elements 
for activities funded under the Welfare-to-Work program; the 
total amount expended during the month on the family for each 
Welfare-to-Work activity; wages paid and the amount of the wage 
subsidy paid by the Welfare-to-Work program for families 
engaged in subsidized employment and on-the-job training; and 
if the family ended participation in the program due to a 
family member obtaining employment, the wage paid to the family 
members, and the reason participation in the program was 
terminated (for example, obtaining employment or increased 
wages).
    Under H.R. 3172, the data reporting requirements imposed on 
entities carrying out Welfare-to-Work projects are repealed 
(TANF data reporting requirements are not affected by this 
provision). In their place, the Committee is requiring the 
Secretary of Labor, in consultation with the Secretary of HHS 
and State and local governments, to establish a new set of 
reporting requirements.

Elimination of set-aside of portion of welfare-to-work funds for 
        successful performance bonus

    The Welfare-to-Work Program authorized under Title IV A of 
the Social Security Act provides for $100 million in bonus 
payments for FY 2000 to be paid to States that perform at high 
levels in placing participants in a job and other outcomes. 
H.R. 3172 reduces this amount to $35 million to be available 
for this purpose.

                            Committee Views


Hard-to-employ recipients

    When the Welfare-to-Work program was established in 1997, 
there was broad consensus that activities be focused on serving 
those on welfare with the most barriers to employment. This 
reflected the belief that strict work requirements under the 
Temporary Assistance for Needy Families (TANF) program would 
likely result in States and localities focusing more on serving 
recipients with the fewest barriers to employment. In addition, 
some believe that those with multiple barriers to employment 
have often been overlooked in prior programs, such as JOBS, 
designed to move welfare recipients into employment. Given the 
reality of time limits under welfare reform, the Committee felt 
it important that these individuals be provided services early 
on to ensure their ability to move successfully into employment 
and toward self-sufficiency.
    However, it has become clear that in an attempt to 
implement strict eligibility criteria, these same provisions 
have in effect prevented assistance to many of the very 
individuals this program was originally intended to serve. This 
was highlighted in a report to this Committee by the 
Congressional Research Service which found that as few as 7 
percent of current welfare recipients meet these eligibility 
requirements. As a result, many individuals with multiple 
barriers to employment have been denied assistance such as job 
placement and participation in community services projects, 
because of these extremely strict criteria.
    This issue was also highlighted during a hearing on 
September 9th by the Subcommittee on Postsecondary Education, 
Training and Lifelong Learning. Specifically, Raymond L. 
Bramucci, Assistant Secretary of Labor for Employment, made the 
following remarks:

    An early evaluation report to Congress written by 
Mathematica Policy Research (under contract to the Department 
of Health and Human services) validated what State and local 
grantees have been telling the Department of Labor since the 
beginning of their Welfare-to-Work program operations: the 
eligibility criteria in the statute need to be simplified and 
improved. Their restrictive nature is causing slower than 
anticipated enrollments and expenditures. Mathematica reported 
that:
          While many of the hardest-to-employ are being served 
        or will be served, still more who face very similar 
        problems could benefit from Welfare-to-Work services if 
        eligibility categories were modified. Most grantees 
        report that current eligibility criteria exclude some 
        people from their programs who have serious barriers to 
        employment, most notably individuals who have earned a 
        high school credential but still have low skill levels.
    State and local officials and program operators have also 
stated that the current eligibility criteria are too complex 
and narrow, with the result that a significant proportion of 
the least job ready welfare recipients and noncustodial parents 
are excluded from participation.

    The strict eligibility requirements are also reflected in 
recent reports on the expenditure of funds under this program. 
Of the $1.015 billion awarded to States for FY 1998, only $83 
million had been spent by the quarter ending March 1999. 
Although other factors contributed to this slow rate of 
expenditures, it is at least in part due to State and 
localities simply being unable to identify individuals who meet 
the current eligibility criteria.
    For these reasons, the Committee is modifying the current 
eligibility provisions to enable services to be provided to 
more of those individuals who are in need of such assistance. 
In addition, these changes are intended to streamline the 
eligibility process, thereby reducing the burden to local 
service providers who currently must document multiple barriers 
to employment for each participant.
    However, it should be noted that the new eligibility 
maintains the prior commitment to serving those with the most 
serious barriers to work. The Secretary of Labor and State and 
local officials are urged to do everything possible to ensure 
that those with the most and most serious barriers to work 
receive services under this program.

Noncustodial parents

    Reports from the Department of Labor and the General 
Accounting Office have found that almost 40 or nearly one-fifth 
of projects funded with Welfare-to-Work funds involve the 
noncustodial parents of children on welfare. Building upon the 
strong involvement of these parents, H.R. 3172 includes 
provisions originally adopted in the Ways and Means Committee 
as part of H.R. 3073, the Fathers Count Act of 1999, which 
establishes a separate set of criteria for these fathers. It is 
our intent to facilitate the participation of fathers in the 
Welfare-to-Work program by clarifying the entry criteria and by 
making them less restrictive than current standards.

Children aging out of foster care

    This legislation also includes language from H.R. 3073 
designed to help children leaving foster care make the 
transition to self-sufficiency. The overwhelming majority of 
children in foster care have characteristics that place them at 
risk for unemployment as young adults. This Committee has found 
that these young adults suffer from a host of bad outcomes, 
including high rates of unemployment and dropping out of the 
labor force. Thus, the Committee believes it is appropriate to 
make them eligible for services under the Welfare-to-Work 
program.

Limited vocational educational and job training as allowable activity

    A host of State and local governments asked the Committee 
to broaden the education and work-related activities for which 
Welfare-to-Work funds can be used. The original legislation, 
developed on a bipartisan basis, defined allowable activities 
to include only those that actually involved work or were 
directly related to work. After discussion, the Committee has 
added vocational educational and job training for a maximum of 
6 months to the list of allowable activities. This action will 
provide Welfare-to-Work projects with a major new activity that 
many of them believe will lead to more and better employment 
for their participants, but will still retain most of the work 
first focus of the original legislation. The Committee urges 
projects not to provide vocational educational and job training 
as stand-alone services, but instead, build upon successful 
Welfare-to-Work models which include both a work and education 
component.

Certain grantees authorized to provide employment services directly

    Reflecting provisions contained under the Workforce 
Investment Act of 1998, the Committee did not want the 
Workforce Investment Boards to be involved in the direct 
provision of Welfare-to-Work services. However, if other 
private or governmental agencies besides these boards receive 
Welfare-to-Work grants, the Committee believes there should be 
no prohibition on providing direct services. The fundamental 
goal of the Workforce Investment Boards is to plan and 
coordinate. Other agencies do not necessarily have these 
primary missions. Thus, Congress does not wish to eliminate all 
organizations providing direct services from conducting 
Welfare-to-Work programs.

Simplification and coordination of reporting requirements present law

    The complexity of reporting requirements under the Welfare-
to-Work program has been highlighted by many State and local 
governments, as well as with the National Conference of State 
Legislatures and the American Public Human Services 
Association. The Committee shares the view along with the Ways 
and Means Committee, that the data reporting requirement in the 
Welfare-to-Work legislation are too extensive and complex and 
would cost too much for entities conducting programs to meet. 
Thus, we are repealing the requirement and requiring the 
Secretary of Labor, in consultation with the Secretary of HHS 
and State and local governments, to develop a new and more 
reasonable and affordable data reporting requirement.

Elimination of set-aside of portion of welfare-to-work funds for 
        successful performance bonus

    The Committee notes that since very few States and 
localities have spent all their funds under the Welfare-to-Work 
program, it seems unwise to be providing a performance bonus at 
this point. Furthermore, there is a billion dollars in bonus 
payments now beingprovided under the Temporary Assistance for 
Needy Families (TANF) block grant for the same performance goals and 
nearly the same population of needy individuals as the performance 
goals and individuals targeted by the Welfare-to-Work program. For both 
these reasons, the Committee believes little will be lost by repealing 
the performance bonus under the Welfare-to-Work program.

                      Section-by-Section Analysis

    Section 1 establishes eligibility for participation in the 
Welfare-to-Work program.
    Section 2 sets a limit on the allowable activities of 
vocational education and job training.
    Section 3 limits vocational education and job training 
activities to no more than six months.
    Section 4 authorizes grantees to provide direct employment 
services.
    Section 5 establishes simplification and coordination of 
reporting requirements.
    Section 6 modifies the set-aside portion of funds for 
successful performance bonus.
    Section 7 reduces the bonus set-aside by 65 million 
dollars.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill amends the Welfare-to-Work program under 
Title IV, part A of the Social Security Act, in order to 
increase the program's flexibility and promote the 
simplification of reporting requirements. The bill does not 
prevent legislative branch employees from receiving the 
benefits of this legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. This bill amends the Welfare-to-Work program under 
Title IV, part A of the Social Security Act, in order to 
increase the program's flexibility and promote the 
simplification of reporting requirements. As such, the bill 
does not contain any unfunded mandates.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include for 
each record vote on a motion to report the measure or matter 
and on any amendments offered to the measure or matter the 
total number of votes for and against and the names of the 
Members voting for and against.


                             Correspondence

                          House of Representatives,
                  Committee on Education and the Workforce,
                                  Washington, DC, October 13, 1999.
Hon. J. Dennis Hastert,
Speaker, House of Representatives, the Capitol, Washington, DC.
    Dear Mr. Speaker: I am writing regarding the jurisdiction 
of the Committee on Education and the Workforce over the 
Mandatory Work Requirements in our Welfare laws. The provisions 
in current law and listed herein considered and ordered 
reported from the Committee on Education and the Workforce in 
each of the two last Congresses. Unfortunately, recent 
referrals of bills amending the sections and issues related to 
these sections have only been referred to the Committee on Ways 
and Means, specifically, H.R. 1482, Welfare-to-Work Amendments 
of 1999 introduced by Rep. Cardin and H.R. 1362, a bill to make 
satisfactory progress toward completion of high school or a 
college program a permissible work activity under the program 
of block grants to States for temporary assistance for needy 
families, introduced by Rep. Woolsey. In addition to the 
matters raised in this letter, I am requesting a re-referral of 
these bills to the Committee on Education and the Workforce and 
in addition the Committee on Ways and Means.
    I would like to recount the history of action by the 
Committee on Education and the Workforce, (the Committee was 
named the Committee on Education and Labor from 1945 to 1994; 
it was renamed the Committee on Economic and Educational 
Opportunities in the 104th Congress and renamed the Committee 
on Education and the Workforce in the 105th), regarding work 
issues in welfare programs. Until the 104th Congress, the 
predecessor law to the current welfare to work programs was 
contained in Part F of Title IV of the Social Security Act, the 
``JOBS'' program and was in the primary jurisdiction of the 
Committee on Education and Labor. Prior to the 104th Congress, 
the JOBS Program and AFDC work requirements were last amended 
in 1988. The 100th Congress passed H.R. 1720, the ``Family 
Support Act of 1988.'' H.R. 1720 was jointly referred to the 
Committees on Education and Labor, Energy and Commerce, and 
Ways and Means. The Committee on Education and Labor held three 
hearings (April 29, 30 and May 5, 1987) addressing Welfare 
Reform Legislation including the JOBS programs and work 
requirements.
    Each Committee reported the bill to the House. (House 
Report 100-159, Parts I, II, and III). Subsequently, the House 
considered and passed H.R. 1720. Following its passage in the 
Senate, the House appointed Members of the Committee on 
Education and Labor to the Conference Committee.\1\ The Members 
were appointed as Conferees only to those sections that 
concerned the JOBS Program, the Work Incentive program and 
other training and employment programs. The Conference Report 
was agreed to and H.R. 1720 eventually became Public Law 100-
485.
---------------------------------------------------------------------------
    \1\ Hawkins, Ford (MI), Kildee, Williams, Martinez, Solarz, 
Jeffords, Gunderson, Tauke, Henry.
---------------------------------------------------------------------------
    During the 103rd Congress, although many bills were 
introduced that amended the work requirements in welfare and 
the JOBS Program, no such bills were reported by a committee. 
However, the pattern of referral of these bills confirms that 
the Committee on Education and Labor had jurisdiction over 
these programs.
    Most of these bills addressed several issues. One 
resolution, H. Con. Res. 42, specifically and exclusively 
addressed the JOBS Program. This resolution, introduced by Mrs. 
Kennelly, was solely referred to the Committee on Education and 
Labor. Every bill introduced in the House that amended the JOBS 
Program or work requirements under the Social Security Act was 
referred to the Committee on Education and Labor.\2\
---------------------------------------------------------------------------
    \2\ In addition to H. Con. Res. 42, this includes the following 
bills:
    H.R. 741, Mr. Shaw, ``Responsibility and Empowerment Support 
Program Providing Employment, Child Care, and Training Act,'' Referred 
to the Committees on Agriculture, Banking, Education and Labor, Energy 
and Commerce, Judiciary, and Ways and Means.
    H.R. 1918, Mr. Wise ``Welfare Reform and Responsibility Act of 
1993,'' Referred to the Committees on Education and Labor, Energy and 
Commerce, and Ways and Means.
    H.R. 3500, Mr. Michel, ``Responsibility and Empowerment Support 
Program Providing Employment, Child Care, and Training Act,'' Referred 
to the Committees on Agriculture, Banking, Education and Labor, Energy 
and Commerce, Government Operations, Judiciary, Rules and Ways and 
Means.
    H.R. 4126, Mrs. Lowey, ``Work-First Welfare Reform Act of 1994,'' 
Referred to the Committees on Education and Labor and Ways and Means.
    H.R. 4318, Ms. Woolsey, ``Working Off Welfare Act of 1994,'' 
Referred to the Committees on Education and Labor, Energy and Commerce, 
and Ways and Means.
    H.R. 4605, Mr. Gibbons, ``Work and Responsibility Act of 1994,'' 
Referred to the Committees on Agriculture, Education and Labor, and 
Ways and Means. The Committee on Education and Labor held a hearing on 
the bill August 2, 1994 regarding the JOBS Program.
    H.R. 4793, Mr. Orton, ``Self-Sufficiency Act of 1994,'' Referred to 
the Committees on Agriculture, Education and Labor, Energy and 
Commerce, and Ways and Means.
    H.R. 4983, Mr. Volkmer, ``Welfare to Self-Sufficiency Act of 
1994,'' Referred to the Committees on Agriculture, Education and Labor, 
Energy and Commerce, and Ways and Means.
---------------------------------------------------------------------------
    During the 104th Congress the Committee on Economic and 
Educational Opportunities reported H.R. 999, the ``Welfare 
Reform Consolidation Act of 1995''. The introduced and 
Committee reported bill repealed the Part F, Title IV of the 
Social Security Act, the ``JOBS'' program and replaced it with 
the provisions in current law,\3\ Sec. 401. ``Replacement of 
the JOBS program and mandatory work requirements''. Our 
Committee was the sole Committee to make these recommendations. 
The provisions of this bill were incorporated into H.R. 4, the 
Personal Responsibility Act, which was vetoed and later 
included in Public Law 104-193.
---------------------------------------------------------------------------
    \3\ See H.R. 999, Section 401, Replacement of the JOBS program with 
mandatory work requirements.
---------------------------------------------------------------------------
    During the 105th Congress, the Committee on Education and 
the Workforce, pursuant to H. Con. Res. 84, the budget 
resolution for fiscal year 1998, reported to the Committee on 
the Budget amendments to the Social Security Act, Section 403, 
407 and 409 regarding Mandatory Work Requirements in Welfare, 
entitled ``Welfare to Work--Grants Title V, Subtitle A.'' These 
provisions were included in Title V, Subtitle A of H.R. 2015, 
which became Title V, Subtitle A of P.L. 105-33. The Speaker 
appointed conferees from the Committee on Education and the 
Workforce for consideration of these provisions.\4\
---------------------------------------------------------------------------
    \4\ Subtitle A of Title V and subtitle A of title IX of the House 
bill, and chapter 2 of division 3 of title V of the Senate amendment, 
and modifications committed to conference. In addition to Members 
appointed from the Committee on the Budget, from the Committee on 
Education and the Workforce--Goodling, Talent, and Clay--regarding 
welfare to work requirements. The conference committee reported 
provisions were identical or substantially similar to those provisions 
reported by the Committee on Education and the Workforce, Title V, 
Subtitle A. The Conference Report was adopted by the House of 
Representatives and the Senate and enacted as P.L. 105-33.
---------------------------------------------------------------------------
    During the 106th Congress, on September 9, 1999, Committee 
on Education and the Workforce, Subcommittee on Postesecondary 
Education, Training and Life-Long Learning held Provisions;'' 
the hearing focused on implementation of the programs.
    As such, the following are the sections to the Social 
Security Act that are within the jurisdiction of the Committee 
on Education and the Workforce.
          (1) Section 402(a)(1)(A)(ii) and (iii) State Plan;
          (2) Section 403 Grants to States;
          (3) Section 403(a)(5) Welfare-to-Work Grants 
        (Mandatory Work Requirements);
          (4) Section 407 Mandatory Work Requirements;
          (5) Section 408(a)(4) Prohibitions (No Assistance to 
        Teenager parents who do not attend High School or other 
        Equivalent Training program);
          (6) Section 409(a)--Penalties (only those listed)--
        (a)(3) Penalties (Minimum Participation Rates)--(a)(11) 
        Penalties (Failure to Maintain Assistance to Adult 
        Single Custodial Parent for childcare for child under 
        age 6--(a)(13) Penalties (Failure of State to Maintain 
        Historic Effort During year in which Welfare-to-Work 
        Grant is Received--(a)(14) Penalties (Failure to Reduce 
        Assistance for Recipients Refusing Without Good Cause 
        to Work);
          (7) Section 413(d) Annual Ranking of States and 
        Review of Most and Least Successful Work Programs;
          (8) Section 413(j) Evaluation of Welfare-to-Work 
        Programs; and
          (9) Section 415(a)(2)(B) No Effect on New Work 
        Requirements.
    Thank you for your attention to this matter. I look forward 
to working with you in ensuring the proper referral of matters 
within the jurisdiction of the Committee on Education and the 
Workforce in the future.
            Sincerely,
                                           Bill Goodling, Chairman.
          

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of 3(c)(3) of rule XIII of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 3172 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 5, 1999.
Hon. William Goodling,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3172, the Welfare-
to-Work Amendments of 1999.
    If you with further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Christina 
Hawley Sadoti.
            Sincerely,
                                          Dan L. Crippen, Director.
    Enclosure.

H.R. 3172--Welfare-to-Work Amendments of 1999

    Summary: H.R. 3172 would change eligibility rules and 
expand allowed activities in the Welfare-to-Work grant program, 
and reduce the Welfare-to-Work performance bonus. Enacting this 
bill would result in reduced direct spending in some years and 
increased spending in others, for an estimated net savings of 
$10 million over the 2000-2002 period. Because the bill would 
affect direct spending, pay-as-you-go procedures would apply.
    H.R. 3172 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Greater flexibility in the Welfare-to-Work program would 
benefit states, and in some cases, local and tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of this bill is shown in the following table. 
The costs of this legislation fall within budget function 500 
(education, training, employment, and social services).

------------------------------------------------------------------------
                                      By fiscal years, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2000    2001    2002    2003    2004
------------------------------------------------------------------------
                             DIRECT SPENDING

Spending Under Current Law:
    Budget Authority............     100       0       0       0       0
    Estimated Outlays...........     760     835     535       0       0
Proposed Changes:
    Welfare-to-Work Grants:
        Budget Authority........       0       0       0       0       0
        Estimated Outlays.......      70       5     -20       0       0
    Performance Bonus:
        Budget Authority........     -65       0       0       0       0
        Estimated Outlays.......     -15     -25     -25       0       0
        Subtotal................
            Budget Authority....     -65       0       0       0       0
            Estimated Outlays...      55     -20     -45       0       0
Spending Under H.R. 3172:
    Budget Authority............      35       0       0       0       0
    Estimated Outlays...........     815     815     490       0       0
------------------------------------------------------------------------

    Basis of estimate: This bill would broaden the eligibility 
criteria for the Welfare-to-Work block grants, and would also 
allow funds to be spent on stand-alone vocational training. A 
survey of states indicated that these changes would make it 
easier for them to serve clients under the Welfare-to-Work 
program. CBO estimates that state grants, which have already 
been awarded, would spend more quickly than under current law. 
In addition, CBO estimates that overall spending would 
increase. States have four years to spend the grant money, the 
last of which was provided at the end of fiscal year 1999. 
Under current law, CBO assumes that about $300 million would to 
unspent, in part because of the difficulty states are having in 
enrolling eligible participants. CBO estimates that the 
expansion would increase overall spending by about $55 million 
over the 2000-2004 period.
    The bill also would reduce the $100 million set-aside for 
Welfare-to-Work performance bonuses to $35 million. These 
bonuses are to be paid over the fiscal years 2000 through 2002. 
Therefore, reducing the bonuses would save $65 million over 
that period.
    Pay-as-you go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
charges in outlays that are subject to pay-as-you-go procedures 
are shown in the following table. For the purpose of enforcing 
pay-as-you-go procedures, only the effects in the budget year 
and the succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
                                                     By fiscal years, in millions of dollars--
                                 -------------------------------------------------------------------------------
                                   2000    2001    2002    2003    2004    2005    2006    2007    2008    2009
----------------------------------------------------------------------------------------------------------------
Changes in outlays..............      55     -20     -45       0       0       0       0       0       0       0
Changes in receipts.............                                   Not applicable
----------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
The bill contains no intergovernmental mandates as defined in 
UMRA. Greater flexibility in the Welfare-to-Work program would 
benefit states, and in some cases, local and tribal 
governments.
    The bill would make a number of changes in the Welfare-to-
Work program, broadening eligibility requirements, and 
expanding the ability of states to use grant funds for 
vocational training. By making it easier for states to serve 
clients, the proposed changes would increase state spending in 
the Welfare-to-Work program by about $27 million over the 2000-
2004 period. This state spending would be matched by $55 
million in federal assistance, as noted above. The reduction 
Welfare-to-Work performance bonuses would decrease assistance 
to states by $65 million over the 2000-2004 period. However, 
given the flexibility that states have to operate the program, 
this reduction would not be a mandate as defined in the UMRA.
    Estimated impact on the private sector: This bill contains 
no private-sector mandates as defined in UMRA.
    Previous estimate: On October 27, 1999, CBO provided a cost 
estimate for H.R. 3073, the Fathers Count Act of 1999, as 
ordered reported by the House Committee on Ways and Means on 
October 21, 1999. Provisions in H.R. 3073 are similar to the 
Welfare-to-Work provisions in this proposed legislation. 
However, there are two notable differences. First, the 
eligibility expansions contained in H.R. 3073 are somewhat 
broader than those contained in H.R. 3172. Second, H.R. 3073 
would eliminate the performance bonus, whereas H.R. 3172 would 
merely reduce it. Taken together, the Welfare-to-Work changes 
contained in H.R. 3073 would reduce spending by $40 million 
over the 2000-2002 period. Total savings from the provisions in 
this bill net to 410 million over the same period.
    Estimate prepared by: Federal Costs: Christina Hawley 
Sadoti. Impact on State, Local, and Tribal Governments: Leo 
Lex.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

 Statement of Oversight Findings of the Committee on Government Reform

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform on the 
subject of H.R. 3172.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 1, which grants Congress the power 
to lay and collect taxes, duties, imports and excises, to pay 
the debts and provide for the common defense and general 
welfare of the United States.

                           Committee Estimate

    Clauses 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 3172. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                  TITLE IV OF THE SOCIAL SECURITY ACT

           *       *       *       *       *       *       *



TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
               CHILDREN AND FOR CHILD-WELFARE SERVICES

           *       *       *       *       *       *       *



   PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
                               FAMILIES

           *       *       *       *       *       *       *


SEC. 403. GRANTS TO STATES.

  (a) Grants.--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) Welfare-to-work grants.--
                  (A)  * * *
                  (C) Limitations on use of funds.--
                          (i) Allowable activities.--An entity 
                        to which funds are provided under this 
                        paragraph shall use the funds to move 
                        individuals into and keep individuals 
                        in lasting unsubsidized employment by 
                        means of any of the following:
                                  (I)  * * *

           *       *       *       *       *       *       *

                                  (IV) Contracts with public or 
                                private providers of readiness, 
                                placement, and post-employment 
                                services, or if the entity is 
                                not a private industry council 
                                or workforce investment board, 
                                the direct provision of such 
                                services.

           *       *       *       *       *       *       *

                                  (VII) Not more than 6 months 
                                of vocational educational or 
                                job training.

           *       *       *       *       *       *       *

                          [(ii) Required beneficiaries.--An 
                        entity that operates a project with 
                        funds provided under this paragraph 
                        shall expend at least 70 percent of all 
                        funds provided to the project for the 
                        benefit of recipients of assistance 
                        under the program funded under this 
                        part of the State in which the entity 
                        is located, or for the benefit of 
                        noncustodial parents, who meet the 
                        requirements of each of the following 
                        subclauses:
                                  [(I) At least 2 of the 
                                following apply to the 
                                recipient or the noncustodial 
                                parent:
                                          [(aa) The individual 
                                        has not completed 
                                        secondary school or 
                                        obtained a certificate 
                                        of general equivalency, 
                                        and has low skills in 
                                        reading or mathematics.
                                          [(bb) The individual 
                                        requires substance 
                                        abuse treatment for 
                                        employment.
                                          [(cc) The individual 
                                        has a poor work 
                                        history.
                                  [(II) The recipient or the 
                                minor children of the non-
                                custodial parent--
                                          [(aa) has received 
                                        assistance under the 
                                        State program funded 
                                        under this part 
                                        (whether in effect 
                                        before or after the 
                                        amendments made by 
                                        section 103 of the 
                                        Personal Responsibility 
                                        and Work Opportunity 
                                        Reconciliation Act of 
                                        1996 first apply to the 
                                        State) for at least 30 
                                        months (whether or not 
                                        consecutive); or
                                          [(bb) within 12 
                                        months, will become 
                                        ineligible for 
                                        assistance under the 
                                        State program funded 
                                        under this part by 
                                        reason of a durational 
                                        limit on such 
                                        assistance, without 
                                        regard to any exemption 
                                        provided pursuant to 
                                        section 408(a)(7)(C) 
                                        that may apply to the 
                                        individual.]
                          (ii) General eligibility.--An entity 
                        that operates a project with funds 
                        provided under this paragraph may 
                        expend funds provided to the project 
                        for the benefit of recipients of 
                        assistance under the program funded 
                        under this part of the State in which 
                        the entity is located who--
                                  (I) has received assistance 
                                under the State program funded 
                                under this part (whether in 
                                effect before or after the 
                                amendments made by section 103 
                                of the Personal Responsibility 
                                and Work Opportunity 
                                Reconciliation Act of 1996 
                                first apply to the State) for 
                                at least 30 months (whether or 
                                not consecutive); or
                                  (II) within 12 months, will 
                                become ineligible for 
                                assistance under the State 
                                program funded under this part 
                                by reason of a durational limit 
                                on such assistance, without 
                                regard to any exemption 
                                provided pursuant to section 
                                408(a)(7)(C) that may apply to 
                                the individual.
                          (iii) Noncustodial parents.--An 
                        entity that operates a project with 
                        funds provided under this paragraph may 
                        use the funds to provide services in a 
                        form described in clause (i) to 
                        noncustodial parents with respect to 
                        whom the requirements of the following 
                        subclauses are met:
                                  (I) The noncustodial parent 
                                is unemployed, underemployed, 
                                or having difficulty in paying 
                                child support obligations.
                                  (II) At least 1 of the 
                                following applies to a minor 
                                child of the noncustodial 
                                parent (with preference in the 
                                determination of the 
                                noncustodial parents to be 
                                provided services under this 
                                paragraph to be provided by the 
                                entity to those noncustodial 
                                parents with minor children who 
                                meet, or who have custodial 
                                parents who meet, the 
                                requirements of item (aa)):
                                          (aa) The minor child 
                                        or the custodial parent 
                                        of the minor child 
                                        meets the requirements 
                                        of subclause (I) or 
                                        (II) of clause (ii).
                                          (bb) The minor child 
                                        is eligible for, or is 
                                        receiving, benefits 
                                        under the program 
                                        funded under this part.
                                          (cc) The minor child 
                                        received benefits under 
                                        the program funded 
                                        under this part in the 
                                        12-month period 
                                        preceding the date of 
                                        the determination but 
                                        no longer receives such 
                                        benefits.
                                          (dd) The minor child 
                                        is eligible for, or is 
                                        receiving, assistance 
                                        under the Food Stamp 
                                        Act of 1977, benefits 
                                        under the supplemental 
                                        security income program 
                                        under title XVI of this 
                                        Act, medical assistance 
                                        under title XIX of this 
                                        Act, or child health 
                                        assistance under title 
                                        XXI of this Act.
                                  (III) In the case of a 
                                noncustodial parent who becomes 
                                enrolled in the project on or 
                                after the date of the enactment 
                                of this clause, the 
                                noncustodial parent is in 
                                compliance with the terms of an 
                                oral or written personal 
                                responsibility contract entered 
                                into among the noncustodial 
                                parent, the entity, and (unless 
                                the entity demonstrates to the 
                                Secretary that the entity is 
                                not capable of coordinating 
                                with such agency) the agency 
                                responsible for administering 
                                the State plan under part D, 
                                which was developed taking into 
                                account the employment and 
                                child support status of the 
                                noncustodial parent, which was 
                                entered into not later than 30 
                                (or, at the option of the 
                                entity, not later than 90) days 
                                after the noncustodial parent 
                                was enrolled in the project, 
                                and which, at a minimum, 
                                includes the following:
                                          (aa) A commitment by 
                                        the noncustodial parent 
                                        to cooperate, at the 
                                        earliest opportunity, 
                                        in the establishment of 
                                        the paternity of the 
                                        minor child, through 
                                        voluntary 
                                        acknowledgement or 
                                        other procedures, and 
                                        in the establishment of 
                                        a child support order.
                                          (bb) A commitment by 
                                        the noncustodial parent 
                                        to cooperate in the 
                                        payment of child support 
                                        for the minor child, which 
                                        may include a modification 
                                        of an existing support order 
                                        to take into account the 
                                        ability of the noncustodial 
                                        parent to pay such support 
                                        and the participation of such 
                                        parent in the project.
                                          (cc) A commitment by 
                                        the noncustodial parent 
                                        to participate in 
                                        employment or related 
                                        activities that will 
                                        enable the noncustodial 
                                        parent to make regular 
                                        child support payments, 
                                        and if the noncustodial 
                                        parent has not attained 
                                        20 years of age, such 
                                        related activities may 
                                        include completion of 
                                        high school, a general 
                                        equivalency degree, or 
                                        other education 
                                        directly related to 
                                        employment.
                                          (dd) A description of 
                                        the services to be 
                                        provided under this 
                                        paragraph, and a 
                                        commitment by the 
                                        noncustodial parent to 
                                        participate in such 
                                        services, that are 
                                        designed to assist the 
                                        noncustodial parent 
                                        obtain and retain 
                                        employment, increase 
                                        earnings, and enhance 
                                        the financial and 
                                        emotional contributions 
                                        to the well-being of 
                                        the minor child.
                                In order to protect custodial 
                                parents and children who may be 
                                at risk of domestic violence, 
                                the preceding provisions of 
                                this subclause shall not be 
                                construed to affect any other 
                                provision of law requiring a 
                                custodial parent to cooperate 
                                in establishing the paternity 
                                of a child or establishing or 
                                enforcing a support order with 
                                respect to a child, or 
                                entitling a custodial parent to 
                                refuse, for good cause, to 
                                provide such cooperation as a 
                                condition of assistance or 
                                benefit under any program, 
                                shall not be construed to 
                                require such cooperation by the 
                                custodial parent as a condition 
                                of participation of either 
                                parent in the program 
                                authorized under this 
                                paragraph, and shall not be 
                                construed to require a 
                                custodial parent to cooperate 
                                with or participate in any 
                                activity under this clause. The 
                                entity operating a project 
                                under this clause with funds 
                                provided under this paragraph 
                                shall consult with domestic 
                                violence prevention and 
                                intervention organizations in 
                                the development of the project.
                          [(iii)] (iv) Targeting of hard to 
                        employ individuals with characteristics 
                        associated with long-term welfare 
                        dependence.--An entity that operates a 
                        project with funds provided under this 
                        paragraph may expend not more than 30 
                        percent of all funds provided to the 
                        project for programs that provide 
                        assistance in a form described in 
                        clause (i)--
                                  (I) to recipients of 
                                assistance under the program 
                                funded under this part of the 
                                State in which the entity is 
                                located who have 
                                characteristics associated with 
                                long-term welfare dependence 
                                (such as school dropout, teen 
                                pregnancy, or poor work 
                                history), including, at the 
                                option of the State, by 
                                providing assistance in such 
                                form as a condition of 
                                receiving assistance under the 
                                State program funded under this 
                                part; [or
                                  [(II) to individuals--
                                          [(aa) who are 
                                        noncustodial parents of 
                                        minors whose custodial 
                                        parent is such a 
                                        recipient; and
                                          [(bb) who have such 
                                        characteristics.]
                                  (II) to children--
                                          (aa) who have 
                                        attained 18 years of 
                                        age but not 25 years of 
                                        age; and
                                          (bb) who, before 
                                        attaining 18 years of 
                                        age, were recipients of 
                                        foster care maintenance 
                                        payments (as defined in 
                                        section 475(4)) under 
                                        part E or were in 
                                        foster care under the 
                                        responsibility of a 
                                        State;
                                  (III) to recipients of 
                                assistance under the State 
                                program funded under this part, 
                                determined to have significant 
                                barriers to self-sufficiency, 
                                pursuant to criteria 
                                established by the local 
                                private industry council; or
                                  (IV) to custodial parents 
                                with incomes below 100 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).
                        To the extent that the entity does not 
                        expend such funds in accordance with 
                        the preceding sentence, the entity 
                        shall expend such funds in accordance 
                        with [clause (ii)] clauses (ii) and 
                        (iii) and, as appropriate, clause (v).
                          [(iv)] (v) Authority to provide work-
                        related services to individuals who 
                        have reached the 5 year limit.--An 
                        entity that operates a project with 
                        funds provided under this paragraph may 
                        use the funds to provide assistance in 
                        a form described in clause (i) of this 
                        subparagraph to, or for the benefit of, 
                        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 entity is located.
                          [(v)] (vi) Relationship to other 
                        provisions of this part.--
                                  (I)  * * *

           *       *       *       *       *       *       *

                          [(vi)] (vii) 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, nor any part of State 
                        expenditures made to match the funds, 
                        to fulfill any obligation of any State, 
                        political subdivision, or private 
                        industry council to contribute funds 
                        under section 403(b) or 418 or any 
                        other provision of this Act or other 
                        Federal law.
                          [(vii)] (viii) 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 the funds 
                        are so provided.
                          [(viii)] (ix) Regulations.--Within 90 
                        days after the date of the enactment of 
                        this paragraph, the Secretary of Labor, 
                        after consultation with the Secretary 
                        of Health and Human Services and the 
                        Secretary of Housing and Urban 
                        Development, shall prescribe such 
                        regulations as may be necessary to 
                        implement this paragraph.
                          (x) 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 participant information 
                        and the reporting of such information 
                        by entities carrying out activities 
                        under this paragraph.

           *       *       *       *       *       *       *

                  (E) Set-aside for successful performance 
                bonus.--
                          (i)  * * *

           *       *       *       *       *       *       *

                          (vi) Set-aside.--[$100,000,000] 
                        $35,000,000 of the amount specified in 
                        subparagraph (I) for fiscal year 1999 
                        shall be reserved for grants under this 
                        subparagraph.

           *       *       *       *       *       *       *

                  (I) Appropriations.--
                          (i) In general.--Out of any money in 
                        the Treasury of the United States not 
                        otherwise appropriated, there are 
                        appropriated [$1,500,000,000 for each 
                        of fiscal years 1998 and 1999 for 
                        grants under this paragraph.] for 
                        grants under this paragraph--
                                  (I) $1,500,000,000 for fiscal 
                                year 1998; and
                                  (II) $1,435,000,000 for 
                                fiscal year 1999.

           *       *       *       *       *       *       *


SEC. 404. USE OF GRANTS.

  (a)  * * *

           *       *       *       *       *       *       *

  (k) Limitations on Use of Grant for Matching Under Certain 
Federal Transportation Program.--
          (1) Use limitations.--A State to which a grant is 
        made under section 403 may not use any part of the 
        grant to match funds made available under section 3037 
        of the Transportation Equity Act for the 21st Century, 
        unless--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) the preponderance of the benefits derived 
                from such use of the grant accrues to 
                individuals who are--
                          (i)  * * *

           *       *       *       *       *       *       *

                          (iii) noncustodial parents who are 
                        described in [item (aa) or (bb) of 
                        section 403(a)(5)(C)(ii)(II)] section 
                        403(a)(5)(C)(iii); and

           *       *       *       *       *       *       *


SEC. 411. DATA COLLECTION AND REPORTING.

  (a) Quarterly Reports by States.--
          (1) General reporting requirement.--
                  (A) Contents of report.--Each eligible State 
                shall collect on a monthly basis, and report to 
                the Secretary on a quarterly basis, the 
                following disaggregated case record information 
                on the families receiving assistance under the 
                State program funded under this part (except 
                for information relating to activities carried 
                out under section 403(a)(5)):
                          (i)  * * *

           *       *       *       *       *       *       *

                          [(xviii) With respect to families 
                        participating in a program operated 
                        with funds provided under section 
                        403(a)(5)--
                                  [(I) any activity described 
                                in section 403(a)(5)(C)(i) 
                                engaged in by a family member;
                                  [(II) the total amount 
                                expended during the month on 
                                the family member for each such 
                                activity;
                                  [(III) if the family member 
                                is engaged in subsidized 
                                employment or on-the-job 
                                training under the program, the 
                                wage paid to the family member 
                                and the amount of any wage 
                                subsidy provided to the family 
                                member from Federal or State 
                                funds; and
                                  [(IV) if the participation of 
                                a family member in the program 
                                was ended during a month due to 
                                the family member obtaining 
                                employment, the wage of the 
                                family member in the employment 
                                and whether the participation 
                                was ended due to the family 
                                member obtaining unsubsidized 
                                employment, obtaining 
                                subsidized employment, 
                                receiving an increased wage, 
                                engaging in a work training 
                                activity funded under a program 
                                funded other than under section 
                                403(a)(5), or for other 
                                reasons.]

           *       *       *       *       *       *       *


SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

  (a) Grants for Indian Tribes.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Welfare-to-work grants.--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) Limitations on use of funds.--
                          (i)  * * *
                          (ii) Waiver authority.--The Secretary 
                        of Labor may waive or modify the 
                        application of a provision of section 
                        403(a)(5)(C) (other than clause [(vii)] 
                        (viii) thereof) with respect to an 
                        Indian tribe to the extent necessary to 
                        enable the Indian tribe to operate a 
                        more efficient or effective program 
                        with the funds provided under this 
                        paragraph.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    We support the Committee's efforts to modify the 
eligibility requirements of the Welfare-to-Work program to 
improve the programs' ability to provide adequate assistance to 
needy families. However, there are several areas in which we 
believe H.R. 3172 should be strengthened.
Reauthorization of the act
    The minority believes that H.R. 3172 should be part of a 
broader reauthorization of the Welfare-to-Work program. 
Although the unemployment rate continues to be low, 2.6 million 
families still remain on public assistance. To help these 
remaining families move off welfare and into the workforce, we 
must continue to invest in programs such as Welfare-to-Work.
    In his Fiscal Year 2000 budget request, the President asked 
that an additional $1 billion be invested in the Welfare-to-
Work program. In a letter to Chairman Goodling, Secretary of 
Labor, Alexis Herman, stated, ``additional resources [are] 
essential to addressing the continuing need to promote long-
term economic self-sufficiency among the hardest-to-employ 
welfare recipients and to assist non-custodial parents in 
making meaningful contributions to their children's well-
being.''
    Some have argued that additional money is unnecessary since 
the bulk of the 1997 funding has yet to be spent. However, once 
the eligibility requirements are expanded to allow states to 
spend the portion of the monies they have previously been 
unable to access, the funds will be expended quickly, leaving 
the hardest to serve individuals without assistance.
    We also must bear in mind that although all of the states 
met the work requirements for FY 1998, those requirements 
increased in FY 1999. In addition, most welfare recipients have 
not yet reached the five year cap on Temporary Assistance for 
Needy Families (TANF) services. However, they will do so in the 
next few years. Moreover, we are currently benefiting from a 
very healthy economy. If there is a downturn in the economy, 
newly hired welfare recipients are likely to be the first to be 
displaced.
    We view H.R. 3172 as a complement to a complete 
reauthorization of Welfare-to-Work, as proposed by the 
Administration and included in H.R. 1482. The reauthorization 
contained in H.R. 1482--with additional resources--is essential 
to addressing the continuing need to promote long term economic 
self-sufficiency among the hardest to employ welfare recipients 
and to assist non-custodial parents in making meaningful 
contributions to their children's well-being. We urge the 
Majority to support reauthorization and funding of the Welfare-
to-Work program early next year.
Expand eligibility of low-income custodial parents
    H.R. 3172 expands the eligibility of non-custodial parents 
to participate in welfare-to-work programs. H.R. 3172 permits 
non-custodial parents to participate in the Welfare-to-
Workprogram if they are unemployed, underemployed, or having difficulty 
paying child support. Similarly, their children do not need to be 
current or prior welfare recipients, but need to be receiving or 
eligible for one of a number of federal programs. These programs 
include, but are not limited to, Temporary Assistance for Needy 
Families (TANF).
    H.R. 3172 as introduced did not provide comparable 
eligibility for low-income custodial parents to participate in 
Welfare-to-Work programs. Therefore, low-income custodial 
parents would have to go on welfare in order to be eligible for 
Welfare-to-Work programs while non-custodial parents would not 
have to do so.
    We support the efforts made at mark-up to attempt to 
address our concerns about providing Welfare-to-Work 
eligibility to non-custodial parents, mostly absentee fathers, 
while denying eligibility to low-income custodial parents, 
mostly mothers. The compromise in the bill as amended in 
Committee, which adds custodial parents to those categories 
eligible for Welfare-to-Work programs funded by thirty percent 
of the Welfare-to-Work funds, is a step in the right direction. 
However, we believe that custodial parents, those parents who 
live with their children, who do they day-in and day-out work 
to raise those children, should have at least equal access to 
Welfare-to-Work programs as non-custodial parents. We believe 
it is important that the Welfare-to-Work program at a minimum, 
provide comparable treatment for custodial and non-custodial 
parents.
    We believe it also is important that the program retain its 
priority in funding families with a current or prior connection 
to the welfare program. While the bill streamlines eligibility 
requirements under Welfare-to-Work for long term recipients, it 
maintains the objective of Welfare-to-Work to serve the 
neediest families on welfare. As introduced, H.R. 3172 provided 
that in order to be eligibility for Welfare-to-Work services a 
recipient must, in addition to being a long-term recipient of 
TANF, lack a diploma, have low basic skills, have a poor work 
history, require substance abuse treatment, be homeless, have a 
disability, or have been a victim of domestic violence. This 
was intended to identify hard to employ recipients. In order to 
further simplify the eligibility criteria and minimize 
administrative burdens on program operators, the bill was 
amended at mark-up to limit the eligibility requirements to 
long term recipiency. This was not intended to shift the focus 
of the program away from the identified groups. The minority 
encourages the Department of Labor and Welfare-to-Work grantees 
to ensure that these identified groups are the focus for the 
provision of services under Welfare-to-Work and are provided 
the help they need to obtain and retain employment.

Increase the length of time vocational education can be an allowable 
        activity

    H.R. 3172 allows not more than six months of vocational 
educational or job training. This is totally inadequate. H.R. 
3172 should allow at least twenty-four months of vocational 
educational and job training.
    Numerous welfare policy experts and advocates, including 
the Institute for Women's Policy Research, Coalition on Women 
and Job Training, and Association for Career and Technical 
Education, agree that six months can be too short for welfare 
recipients to obtain the long-term skills they need to work. 
Training providers nationwide submitted testimonials to the Committee 
expressing their concern about limiting vocational educational and job 
training to six months. They pointed out that training programs of less 
than six months are hard to find, especially in rural areas, and that 
even when participants graduate from these short term programs it is 
difficult for them to find jobs that pay enough to support their 
families.
    Education is the key to moving people from welfare to work. 
Low basic skills is the most common barrier which keeps welfare 
recipients from obtaining and keeping jobs. Six months is not 
sufficient to reach the level of skill needed to succeed in the 
workforce.
    A six-month time limit is inconsistent with the vocational 
educational training time limit under TANF, which allows up to 
12 months. Certainly, we should not be giving the very hardest 
to serve less access to the education and training they need to 
achieve self-sufficiency.

                                   William L. Clay.
                                   George Miller.
                                   Dale E. Kildee.
                                   Matthew G. Martinez.
                                   Major R. Owens.
                                   Donald M. Payne.
                                   Patsy T. Mink.
                                   Robert E. Andrews.
                                   Bobby Scott.
                                   Lynn Woolsey.
                                   Carlos Romero-Barcelo.
                                   Chaka Fattah.
                                   Ruben Hinojosa.
                                   Carolyn McCarthy.
                                   John F. Tierney.
                                   Ron Kind.
                                   Loretta Sanchez.
                                   Dennis J. Kucinich.
                                   David Wu.
                                   Rush Holt.