HR 3113 IH

107th CONGRESS

1st Session

H. R. 3113

To reauthorize and improve the program of block grants to States for temporary assistance for needy families.

IN THE HOUSE OF REPRESENTATIVES

October 12, 2001

Mrs. MINK of Hawaii (for herself, Mr. BONIOR, Ms. CARSON of Indiana, Mrs. CLAYTON, Mr. CLAY, Mr. EVANS, Mr. FARR of California, Mr. FILNER, Mr. GUTIERREZ, Mr. HASTINGS of Florida, Mr. HILLIARD, Mr. HINCHEY, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. KUCINICH, Ms. LEE, Mr. LEWIS of Georgia, Ms. LOFGREN, Mr. MCDERMOTT, Ms. MCKINNEY, Mrs. MEEK of Florida, Mr. NADLER, Ms. NORTON, Mr. OWENS, Mr. PAYNE, Ms. ROYBAL-ALLARD, Ms. SCHAKOWSKY, Ms. SOLIS, Mr. STARK, Ms. WATERS, Ms. WOOLSEY, and Ms. BROWN of Florida) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To reauthorize and improve the program of block grants to States for temporary assistance for needy families.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `TANF Reauthorization Act of 2001'.

SEC. 2. TABLE OF CONTENTS.

The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Findings.

Sec. 4. Amendment of Social Security Act.

TITLE I--GENERAL PROVISIONS

Sec. 101. Purposes.

Sec. 102. State plan.

Sec. 103. Funding.

Sec. 104. Use of funds.

TITLE II--WORK REQUIREMENTS

Sec. 201. Reduced work requirement for parents of school-age children who cannot find adequate child care.

Sec. 202. Conforming the number of weeks to the unemployment insurance compensation standard.

Sec. 203. Revision of work activities.

Sec. 204. Penalties against individuals for unjustified refusal to work; additional justifications.

Sec. 205. Elimination of miscellaneous provisions.

TITLE III--PROHIBITIONS; REQUIREMENTS

Sec. 301. Replacement of requirement to sanction individual for noncooperation in establishing paternity or obtaining child support with prohibition on requiring such cooperation.

Sec. 302. Prohibition on requiring assignment of support rights to the State; return of support rights assigned to the State.

Sec. 303. Elimination of sanction against teenage parents not attending high school or other equivalent training program.

Sec. 304. Requirements relating to disregard of child support.

Sec. 305. Elimination of sanction against teenage parents not living in adult-supervised settings.

Sec. 306. Protection for children.

Sec. 307. 5-year time limit.

Sec. 308. Requirement to provide notice of rights of recipients, and train program personnel in carrying out program consistent with the rights.

Sec. 309. Requirement to provide information to individuals who are, or are at risk of being, sanctioned.

Sec. 310. Ban on counting income, scholarship, or gift received by dependent minors.

Sec. 311. Ban on diversion of potential applicants for assistance.

Sec. 312. Prohibition on requiring recipients to respond to surveys conducted to obtain information for quarterly reports.

Sec. 313. Confidentiality of program information.

Sec. 314. Nondiscrimination.

Sec. 315. Requirement to provide opportunity to appeal adverse decision.

Sec. 316. Clarification of penalty for failure to comply with individual responsibility plan.

Sec. 317. Applicability of civil rights laws.

Sec. 318. Elimination of special rules relating to treatment of aliens.

TITLE IV--PENALTIES

Sec. 401. Increase in penalty for failure to submit required report.

Sec. 402. Replacement of penalty against State for failure to comply with paternity establishment and child support enforcement requirements with penalty for requiring cooperation in establishing paternity or obtaining child support (including assigning support rights to the State).

Sec. 403. Extension of maintenance of effort requirement.

Sec. 404. Penalty for failure of State to comply with child support disregard requirements.

Sec. 405. Penalty for penalizing birth of child.

Sec. 406. Penalty for failure to notify recipients of rights, or train program personnel in respecting rights of recipients.

Sec. 407. Penalty for failure to provide information to individuals who are, or are at risk of being, sanctioned.

Sec. 408. Penalty for counting income, scholarship, or gift received by dependent minor.

Sec. 409. Penalty for diverting potential applicant for assistance.

Sec. 410. Penalty for requiring recipient to respond to survey conducted to obtain information for quarterly report.

Sec. 411. Penalty for unauthorized disclosure of information provided by recipient.

Sec. 412. Penalty for discrimination.

Sec. 413. Penalty for failure to provide opportunity to appeal adverse decision.

Sec. 414. Penalty for failure to comply with minimum benefit rules.

Sec. 415. Penalty for failure to provide individual child care entitlement.

Sec. 416. Failure to submit report on welfare access and outcomes.

Sec. 417. Elimination of reasonable cause exception.

Sec. 418. Modification of availability of corrective compliance plan option.

Sec. 419. Repeal of ban on assistance for persons convicted of a drug felony.

TITLE V--STUDIES AND REPORTS

Sec. 501. Additional information to be included in quarterly State reports.

Sec. 502. Elimination from secretarial report to the Congress of information on out-of-wedlock pregnancies.

Sec. 503. Access to welfare; welfare outcomes.

Sec. 504. Assessment of regional economies to identify higher entry level wage opportunities in industries experiencing labor shortages.

Sec. 505. Research, evaluations, and national studies.

Sec. 506. Study by the Census Bureau.

TITLE VI--WAIVERS

Sec. 601. Waivers.

TITLE VII--REPEAL OF LIMITATION ON FEDERAL AUTHORITY

Sec. 701. Repeal of limitation on Federal authority.

TITLE VIII--MINIMUM BENEFIT RULES

Sec. 801. Minimum benefit rules.

TITLE IX--CHILD CARE

Sec. 901. Individual entitlement to child care.

TITLE X--DEFINITION OF POVERTY LINE

Sec. 1001. Definition of poverty line.

TITLE XI--SERVICE PROVIDERS

Sec. 1101. Protection for beneficiaries.

TITLE XII--EFFECTIVE DATE

Sec. 1201. Effective date.

SEC. 3. FINDINGS.

The Congress finds the following:

(1) Welfare reform has reduced the welfare caseload but has failed to move families out of poverty. More than 40 percent of former welfare recipients continued to live below the poverty line in 1999. Employed former recipients earn a median hourly wage of $7.15. Because challenges to economic opportunity and well-being are not adequately addressed by current welfare programs, existing law must be changed to ensure that welfare policy effectively promotes the reduction of poverty.

(2) Between 1995 and 1999, a strong economy reduced poverty by about 2 percent. Reductions in Government transfer payments during this period, however, eliminated almost all of the antipoverty effectiveness of economic growth. Prior to welfare reform, between 1993 and 1995, Government transfer payments had produced the opposite effect, reducing poverty among American families.

(3) About 1/3 of people who have left welfare say they have had to cut the size of meals or skip meals because they did not have enough food in the house.

(4) Over 40 percent of welfare leavers report that they have had trouble paying housing and utility bills since leaving welfare.

(5) Since welfare reform was enacted in 1996, and despite a strong economy, there have been sharp increases in the rates at which single mothers with children have had to rely on food pantries and homeless shelters.

(6) An estimated 1/3 to 1/2 of all families leaving welfare for work do not receive medical assistance, food stamps, or child care to which they are entitled.

(7) Only 1,500,000 of the 9,900,000 children who are eligible for child care subsidies under their States' eligibility guidelines receive child care assistance.

(8) Between 1997 and 1999, over 500,000 families were sanctioned off welfare and these families have been more likely to experience poverty than have other families leaving welfare. On a variety of measures, families who have been sanctioned off welfare tend to fare worse than other leavers.

(9) States in which African Americans make up a higher proportion of recipients are statistically more likely to adopt full-family sanctions. African American recipients are statistically more likely than white recipients to participate in a TANF program that employs full-family sanctions. African-American families have, in fact, been sanctioned more frequently than their white counterparts.

(10) States in which African Americans make up a higher proportion of recipients are statistically more likely to adopt family cap policies. African American recipients are statistically more likely than white recipients to participate in a TANF program that employs a family cap policy.

(11) States in which African Americans make up a higher proportion of recipients are statistically more likely to adopt time limits shorter than the Federal Government requires. Approximately 2/3 of all families that will exhaust their allowable time on welfare are families of color.

(12) Overall, 78 percent of children with immigrant parents are themselves born in the United States and are therefore eligible for services if poor. Nearly 1/4 of all children of immigrants live in poor families and 23 percent of all poor children in the United States are either first- or second-generation immigrants. Immigrants whose children are eligible for public benefits often don't know about the services, are afraid to access them, or are incorrectly turned away.

(13) About 25 percent of former welfare recipients have no paid employment and have either no partner or a partner who is unemployed.

(14) Under welfare reform, single mothers have been forced to work at unsafe and hazardous job sites and to be subject to sexual harassment and racial discrimination.

(15) Most single mothers who leave welfare for work do not earn enough in wages to lift their families out of poverty, even several years after leaving welfare. 55 percent remain poor 1 year after leaving welfare; 49 percent 3 years after and 42 percent 5 years after. Only about 1/3 of all leavers have incomes above 150 percent of the poverty line years after going off welfare.

(16) Adolescent children of single mothers who have left welfare for work have school performance rates below those of other low-income children. Early studies of families in welfare-to-work programs in Florida, Minnesota, and Canada have found unexpected evidence that their adolescent children have lower academic achievement and more behavioral problems than the children of other welfare households. The researchers hypothesized that parents in the programs might have less time and energy to monitor their adolescents' behavior once they were employed; that under the stress of working, they might adopt harsher parenting styles; or that the adolescents' assuming more responsibilities at home when parents got jobs was creating too great a burden.

(17) Under welfare reform, when families lost income regardless of the reason, children were more likely to experience bad outcomes such as increased school suspensions, behavior and mental health problems including symptoms of depression, an increase in the number of children removed from their mother's care, increased enrollment in special classes for behavioral or emotional problems, and health problems such as increased trips to the emergency room. In programs where both employment and income were increased, the impact on children was more positive.

(18) Most single mothers on welfare who are eligible for the exemption from cooperating in establishing paternity are not made aware of this option.

(19) 35 percent of low-income families reported mental health problems according to a 1999 study. Similar rates of mental health problems have been found among welfare recipients. Among California welfare program participants, more than 1/3 had at least 1 diagnosable mental health problem in the previous 12 months, and about 20 percent had 2 or more. Nationally, between 70 and 90 percent of working-age adults with serious mental health problems are unemployed. According to a 2001 study, major depression significantly decreases the likelihood that a woman receiving welfare will be employed and the presence of 1 or more of 4 psychiatric disorders increases the likelihood of receiving cash assistance by 32 percent.

(20) Over half of women receiving welfare have been victims of domestic violence as adults. According to several studies, a quarter to a third of welfare recipients report having been abused within the last year. Abusive partners often interfere with women's attempts to work or to obtain education.

SEC. 4. AMENDMENT OF SOCIAL SECURITY ACT.

Except as otherwise expressly provided, wherever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the amendment or repeal shall be considered to be made to a section or other provision of the Social Security Act.

TITLE I--GENERAL PROVISIONS

SEC. 101. PURPOSES.

Section 401(a)(1) (42 U.S.C. 601(a)(1)) is amended to read as follows:

`(1) IN GENERAL- The purpose of this part is to end child and family poverty by--

`(A) supporting caregivers so that children may be cared for in their own homes;

`(B) promoting education, training, work supports, and access to jobs that pay a living wage;

`(C) assuring access to Medicaid, Food Stamps, child care, and such other assistance for which the family is eligible;

`(D) providing access to services to address barriers to leaving poverty, including mental health, disability, substance abuse, domestic violence, and sexual assault; and

`(E) reducing poverty of families with children.'.

SEC. 102. STATE PLAN.

(a) IN GENERAL- Section 402(a) (42 U.S.C. 602(a)) is amended--

(1) in paragraph (1)--

(A) in subparagraph (A)--

(i) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively; and

(ii) by striking clauses (v) and (vi); and

(B) in subparagraph (B)--

(i) in clause (iii), by inserting `and will notify recipients of assistance under the program of the rights of individuals under all laws applicable to program activities' before the period;

(ii) by striking clauses (i) and (iv) and redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively;

(2) in paragraph (7), by striking subparagraph (B) and inserting the following:

`(B) DOMESTIC OR SEXUAL VIOLENCE DEFINED- In this title, the term `domestic or sexual violence' has the same meaning as `battered or subject to extreme cruelty' in section 402(a)(7)(C)(ii).'; and

(3) by adding at the end the following:

`(7) CERTIFICATIONS REGARDING DOMESTIC AND SEXUAL VIOLENCE, MENTAL ILLNESS, DISABILITY, AND SUBSTANCE ABUSE-

`(A) STANDARDS AND PROCEDURES- A certification by the chief executive officer of the State that the State has established and is enforcing standards and procedures to ensure that the State will do the following:

`(i) ADDRESS RECIPIENT'S BARRIERS TO LEAVING POVERTY- Address the needs of a recipient who has a mental health problem, disability, or substance abuse addiction, or who is dealing with domestic or sexual violence, including how the State will, at the time of application, at a recipient's request, and before imposing any sanction or penalty for noncompliance--

`(I) have trained caseworkers screen, and, at the option of the recipient, qualified professionals assess and identify individuals who are dealing with a mental health problem, disability, substance abuse addiction, or domestic or sexual violence;

`(II) in the case of an individual who is so identified, at the option of the individual, refer the individual and affected children or other close family members for appropriate treatment, counseling, vocational rehabilitation, job training, and other services;

`(III) coordinate, contract, or hire appropriate licensed qualified professionals, including licensed qualified mental health service providers, licensed qualified physicians or medical service providers, licensed qualified substance abuse professionals, domestic violence coalitions, sexual assault coalitions, or victim services organizations;

`(IV) ensure the strict confidentiality of such information; and

`(V) pursuant to a determination of good cause, waive, without time limit, any State or Federal program requirement for so long as necessary in every case in which the requirement--

`(aa) makes it more difficult for the individual to manage his or her mental health problem, disability, substance abuse addiction, or domestic or sexual violence situation;

`(bb) unfairly penalizes the individual; or

`(cc) makes the individual unsafe.

`(ii) USE OF QUALIFIED PROFESSIONALS- Enter into contracts with or employ qualified professionals for the provision of services in each of the fields of mental health, substance abuse, disability, and domestic or sexual violence, and that the contracts will require that, in the case of an individual who has multiple such barriers, the qualified professionals assigned to the case will collaborate to provide the individual with integrated, comprehensive services.

`(B) DEFINITIONS- In this paragraph:

`(i) DOMESTIC VIOLENCE COALITION- The term `domestic violence coalition' means a nonprofit, nongovernmental membership organization that--

`(I) consists of the entities carrying out a majority of the domestic violence programs carried out in a State;

`(II) collaborates and coordinates activities with Federal, State, and local entities to further the purposes of domestic violence intervention and prevention; and

`(III) among other activities, provides training and technical assistance to entities carrying out domestic violence programs in a State, territory, political subdivision, or area under Federal authority.

`(ii) SEXUAL ASSAULT COALITION- The term `sexual assault coalition' means a nonprofit, nongovernmental membership organization that--

`(I) consists of the entities carrying out a majority of the sexual assault programs carried out in a State;

`(II) collaborates and coordinates activities with Federal, State, and local entities to further the purposes of sexual assault intervention and prevention; and

`(III) among other activities, provides training and technical assistance to entities carrying out sexual assault programs in a State, territory, political subdivision, or area under Federal authority.

`(iii) VICTIM SERVICES ORGANIZATION- The term `victim services organization' means a nonprofit, nongovernmental organization that provides assistance to victims of domestic or sexual violence or to advocates for such victims, including a rape crisis center, an organization carrying out a domestic violence program, an organization operating a shelter or providing counseling services, or an organization providing assistance through the legal process.

`(iv) LICENSED QUALIFIED MENTAL HEALTH SERVICE PROVIDER- The term `licensed qualified mental health service provider' means a psychiatrist, clinical psychologist, clinical social worker, community mental health counselor, or other licensed individual who has appropriate training in the diagnosis and treatment of mental illness in children, adolescents, and adults or provides mental health services reimbursed under title XVIII or a State plan approved under title XIX.

`(v) QUALIFIED PROFESSIONAL- The term `qualified professional' means--

`(I) with respect to a disability, a physician or other licensed medical provider;

`(II) with respect to substance abuse, a licensed drug counselor or clinician with expertise in the assessment and treatment of parents with drug addiction issues, who may be affiliated with an out-patient or residential family drug or alcohol treatment program; or

`(III) with respect to domestic or sexual violence--

`(aa) a State or tribal domestic violence coalition or sexual assault coalition; or

`(bb) a State or local victim services organization with recognized expertise in the dynamics of domestic or sexual violence whose primary mission is to provide services to victims of domestic or sexual violence, such as a rape crisis center or domestic violence program.

`(8) CERTIFICATION REGARDING ASSESSMENT OF REGIONAL ECONOMIES AND INFORMING LOCALITIES OF SECTORAL LABOR SHORTAGES- A certification by the chief executive officer of the State that, during the fiscal year, the State will assess its regional economies and provide information to political subdivisions of the State about the industrial sectors that are experiencing a labor shortage and that provide higher entry-level wage opportunities for unemployed and underemployed job seekers.'.

SEC. 103. FUNDING.

(a) FAMILY ASSISTANCE GRANT- Section 403(a)(1) (42 U.S.C. 603(a)(1)) is amended in each of subparagraphs (A) and (E) by striking `1996, 1997, 1998, 1999, 2000, 2001, and 2002' and inserting `1996 through 2008'.

(b) REPLACEMENT OF BONUS TO REWARD DECREASE IN ILLEGITIMACY RATIO WITH CHILD POVERTY REDUCTION BONUS- Section 403(a)(2) (42 U.S.C. 603(a)) is amended to read as follows:

`(2) BONUS TO REWARD STATES THAT REDUCE CHILD POVERTY-

`(A) IN GENERAL- Beginning with fiscal year 2003, the Secretary shall make a grant pursuant to this paragraph to each State for each fiscal year for which the State is a qualified child poverty reduction State.

`(B) AMOUNT OF GRANT-

`(i) IN GENERAL- Subject to this subparagraph, the amount of the grant to be made to a qualified child poverty reduction State for a fiscal year shall be an amount equal to--

`(I) the number of children who had not attained 18 years of age by the end of the then most recently completed calendar year and who resided in the State as of the end of such calendar year, divided by the number of such children who resided in the United States as of the end of such calendar year; multiplied by

`(II) the amount appropriated pursuant to subparagraph (F) for the fiscal year.

`(ii) LIMITATIONS-

`(I) MINIMUM GRANT- The amount of the grant to be made to a qualified child poverty reduction State for a fiscal year shall be not less than $1,000,000.

`(II) MAXIMUM GRANT- The amount of the grant to be made to a qualified child poverty reduction State for a fiscal year shall not exceed an amount equal to 5 percent of the State family assistance grant for the fiscal year.

`(iii) PRO RATA INCREASE- If the amount available for grants under this paragraph for a fiscal year is greater than the total amount of payments otherwise required to be made under this paragraph for the fiscal year, then the amount otherwise payable to any State for the fiscal year under this paragraph shall, subject to clause (ii)(II), be increased by such equal percentage as may be necessary to ensure that the total of the amounts payable for the fiscal year under this paragraph equals the amount available for the grants.

`(iv) PRO RATA REDUCTION- If the amount available for grants under this paragraph for a fiscal year is less than the total amount of payments otherwise required to be made under this paragraph for the fiscal year, then the amount otherwise payable to any State for the fiscal year under this paragraph shall, subject to clause (ii)(I), be reduced by such equal percentage as may be necessary to ensure that the total of the amounts payable for the fiscal year under this paragraph equals the amount available for the grants.

`(C) USE OF GRANT- A State to which a grant is made under this paragraph shall use the grant for any purpose for which a grant made under this part may be used.

`(D) DEFINITIONS- In this paragraph:

`(i) QUALIFIED CHILD POVERTY REDUCTION STATE- The term `qualified child poverty reduction State' means, with respect to a fiscal year, a State if--

`(I) the child poverty rate achieved by the State for the then most recently completed calendar year for which such information is available is less than the lowest child poverty rate achieved by the State during the applicable period; and

`(II) the average depth of child poverty in the State for the then most recently completed calendar year for which such information is available is not greater than the average depth of child poverty in the State for the calendar year that precedes such then most recently completed calendar year.

`(ii) APPLICABLE PERIOD- In clause (i), the term `applicable period' means,

with respect to a State and the calendar year referred to in clause (i)(I), the period that--

`(I) begins with the calendar year that, as of October 1, 2002, precedes the then most recently completed calendar year for which such information is available; and

`(II) ends with the calendar year that precedes the calendar year referred to clause (i)(I).

`(iii) CHILD POVERTY RATE- The term `child poverty rate' means, with respect to a State and a calendar year, the percentage of children residing in the State during the calendar year whose family income for the calendar year is less than the poverty line then applicable to the family.

`(iv) AVERAGE DEPTH OF CHILD POVERTY- The term `average depth of child poverty' means with respect to a State and a calendar year, the average dollar amount by which family income is exceeded by the poverty line, among children in the State whose family income for the calendar year is less than the applicable poverty line.

`(v) POVERTY LINE- The term `poverty line' has the meaning given the term in section 673(2) of the Omnibus Budget Reconciliation Act of 1981, including any revision required by such section applicable to a family of the size involved.

`(E) FAMILY INCOME DETERMINATIONS- For purposes of this paragraph, family income includes cash income, child support payments, government cash payments, and benefits under the Food Stamp Act of 1977 that are received by any family member, and family income shall be determined after payment of all taxes and receipt of any tax refund or rebate by any family member.

`(F) APPROPRIATIONS-

`(i) IN GENERAL- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal year 2003 and each fiscal year thereafter $150,000,000 for grants under this paragraph.

`(ii) AVAILABILITY- Amounts made available under clause (i) shall remain available until expended.'.

(1) in subparagraph (A)(ii), by striking `, 2000, and 2001' and inserting `through 2008';

(2) by striking subparagraphs (C) and (D) and inserting the following:

`(C) QUALIFYING STATE- For purposes of this paragraph, a State is a qualifying State for a fiscal year if rate at which the population of the State with income less than 200 percent of the poverty line has increased (as determined by the Bureau of the Census) for the most recent fiscal year for which information is available exceeds the such rate for all States (as so determined) for such most recent fiscal year.

`(D) STATE DEFINED- In this paragraph, the term `State' means each of the 50 States of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, and Guam.'; and

(3) in subparagraph (E)--

(A) by striking `1998, 1999, 2000, and 2001' and inserting `2003 through 2008'; and

(B) by striking `$800,000,000' and inserting `$2,000,000,000'.

(d) AMENDMENT OF BONUS TO REWARD HIGH PERFORMANCE STATES- Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended to read as follows:

`(4) BONUS TO REWARD HIGH PERFORMANCE STATES-

`(A) IN GENERAL- The Secretary shall make a grant pursuant to this paragraph to each State for each bonus year for which the State is a high performing State with respect to a category described in subparagraph (C).

`(B) AMOUNT OF GRANT-

`(i) IN GENERAL- Subject to clause (ii) of this subparagraph, the Secretary shall determine the amount of the grant payable under this paragraph to a high performing State for a bonus year with respect to a category, which shall be based on the score assigned to the State under subparagraph (D)(i) with respect to the category for the fiscal year that immediately precedes the bonus year.

`(ii) LIMITATION- The total of the amounts payable to a State under this paragraph for a bonus year shall not exceed 5 percent of the State family assistance grant.

`(C) FORMULA FOR MEASURING STATE PERFORMANCE- Not later than October 1, 2003, the Secretary shall, in consultation with affected groups, including recipient groups and State governors, issue regulations implementing criteria for awarding of bonuses under this paragraph in the following categories:

`(i) PREPARATION AND PLACEMENT OF RECIPIENTS IN EMPLOYMENT THAT WILL MOVE FAMILIES OUT OF POVERTY- The degree of success in implementing employment-related measures, including job entry, job retention and earnings gain rates, improvement in each of such measures, and the success of States in--

`(I) meeting self-sufficiency needs for welfare leavers;

`(II) training, placing and retaining welfare leavers in higher-waged jobs identified in the assessment most recently submitted by the State pursuant to section 411(d);

`(III) training, placing and retaining welfare leavers in technical, professional, or nontraditional occupations for women;

`(IV) providing career development assistance related to higher-waged jobs including reliable, up-to-date career counseling services, employability assessments on available employment that pays a sustainable wage, nontraditional training and education options, and employment opportunities;

`(V) encouraging participation in post-secondary educational programs;

`(VI) encouraging use of effective literacy programs that strengthen basic skills in the context of employment; and

`(VII) encouraging participation in vocational education programs for occupations identified in the assessment most recently submitted by the State pursuant to section 411(d).

`(ii) REMOVAL OF BARRIERS TO SELF SUFFICIENCY- The degree of success in removing mental health, substance abuse, disability, or domestic or sexual violence barriers to escaping poverty, which shall be based on an equal weighting of the following:

`(I) NOTIFICATION- The percentage of individuals receiving assistance under this part who report having been notified of the option to be assessed for and receive services to manage a barrier to escaping poverty. A State shall not be eligible for a grant under this paragraph with respect to the category described in this subparagraph unless at least 75 percent of the individuals surveyed by the State respond in the affirmative to the question of whether the individual has received the notification.

`(II) TRAINING- The percentage of caseworkers, supervisors, and new employees who have been trained in a curriculum developed by or in collaboration with qualified professionals in each of mental health, substance abuse, disability, or domestic or sexual violence services. A State shall not be eligible for a grant under this paragraph with respect to the category described in this subparagraph unless at least 80 percent of the caseworkers, supervisors, and employees administering the State program funded under this part have been trained in the curriculum.

`(III) ASSESSMENT AND SERVICES- The State must certify that the State has contracts with or employs qualified professionals in mental health, substance abuse, disability, or domestic or sexual violence services, and that the contract requires that where an individual has multiple barriers the professional service providers will collaborate to provide the individual holistic services.

`(iii) PROVISION OF WORK SUPPORTS- The extent to which the State has increased the percentages described to in the following subclauses in comparison to the percentages achieved in fiscal year 2001:

`(I) FOOD STAMPS MEASURES- Of the number of families with children in the State who are eligible to receive food stamp benefits under the Food Stamp Act of 1977, the percentage who receive such benefits.

`(II) MEDICAID AND SCHIP MEASURES- Of the individuals who have ceased receiving assistance under the State program funded under this part for 4 or more months, and are eligible to receive medical assistance under a State plan approved under title XIX or the child health assistance under a State plan approved under title XXI, the percentage who receive such medical or child health assistance.

`(III) CHILD CARE MEASURES- Of the children in the State who meet the maximum allowable Federal eligibility requirements for benefits under the Child Care and Development Block Grant Act of 1990, the percentage who receive such benefits, including any such children who receive child care benefits provided with additional State or Federal funds, including Head Start Funds. In taking the percentage into account for purposes of this clause, the Secretary shall also consider (aa) the affordability of child care subsidies by including a comparison of co-payment rates charged to eligible families, and (bb) the proportion of market rates paid to providers of subsidized child care as determined by a market rate survey that was taken not more than 2 years earlier.

`(D) SCORING OF STATE PERFORMANCE; SETTING OF PERFORMANCE THRESHOLDS- For each bonus year, the Secretary shall--

`(i) use the formula developed under subparagraph (C) for a measure to assign a score to each eligible State with respect to the measure for the fiscal year that immediately precedes the bonus year; and

`(ii) prescribe a performance threshold for each such measure in such a manner so as to ensure that--

`(I) the total amount of grants to be made under this paragraph with respect to a measure for a bonus year is not less than $60,000,000;

`(II) the average annual total amount of grants to be made under this paragraph for each bonus year equals $260,000,000; and

`(III) the total amount of grants to be made under this paragraph for all bonus years equals $1,820,000,000.

`(E) DEFINITIONS- In this paragraph:

`(i) BONUS YEAR- The term `bonus year' means fiscal years 2002 through 2008.

`(ii) HIGH PERFORMING STATE- The term `high performing State' means, with respect to a measure and a bonus year, an eligible State whose score assigned pursuant to subparagraph (D)(i) with respect to the measure for the fiscal year immediately preceding the bonus year equals or exceeds the performance threshold prescribed under subparagraph (D)(ii) with respect to the measure for such preceding fiscal year.

`(F) APPROPRIATION- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 2002 through 2008 $1,820,000,000 for grants under this paragraph.'.

(e) ELIMINATION OF WELFARE-TO-WORK GRANTS-

(1) IN GENERAL-

(A) GRANTS TO STATES- Section 403(a) (42 U.S.C. 603(a)) is amended by striking paragraph (5).

(B) GRANTS TO INDIAN TRIBES- Section 412(a) (42 U.S.C. 612(a)) is amended by striking paragraph (3).

(2) CONFORMING AMENDMENTS-

(A) Section 413 (42 U.S.C. 613) is amended by striking subsection (j).

(B) Section 510 (42 U.S.C. 710) is repealed.

(i) by adding `and' at the end of clause (ii);

(ii) by striking clause (iii); and

(iii) by redesignating clause (iv) as clause (iii).

(f) 50 PERCENT FEDERAL MATCH FOR STATE FUNDING IN EXCESS OF REQUIRED MAINTENANCE OF EFFORT LEVEL- Section 403(a) (42 U.S.C. 603(a)), as amended by subsection (e)(1)(A) of this section, is amended by adding at the end the following:

`(5) MATCHING GRANTS FOR STATE EXPENDITURES EXCEEDING REQUIRED MAINTENANCE OF EFFORT LEVEL-

`(A) IN GENERAL- Each eligible State shall be entitled to receive from the Secretary for a fiscal year a grant in an amount equal to the amount (if any) by which the total of the qualified State expenditures (as defined in section 409(a)(7)(B)(i)) for the fiscal year exceeds the applicable percentage (as defined in section 409(a)(7)(B)(ii)) of historic State expenditures (as defined in section 409(a)(7)(B)(iii)) with respect to the fiscal year.

`(B) APPROPRIATION- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as are necessary for grants under this section for fiscal years 2002 through 2008.'.

(g) CONTINGENCY FUND-

(1) IN GENERAL- Section 403(b) (42 U.S.C. 603(b)) is amended by striking paragraphs (2) through (7) and inserting the following:

`(2) DEPOSITS INTO FUND- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 1997 through 2008 such sums as are necessary for grants under this section for the fiscal year.

`(3) GRANTS- The Secretary shall make a grant to a needy State, for each eligible month with respect to the State, in an amount equal to the amount described in paragraph (6).

`(4) NEEDY STATE- A State is a needy State for purposes of this paragraph if--

`(A) the rate of total unemployment in the State (seasonally adjusted) for the most recent month for which such information is available--

`(i) is at least 5.5 percent; or

`(ii) has increased by the lesser of 50 percent, or 1.5 percentage points, over the lesser of the average rate of total unemployment in the State (seasonally adjusted) for the preceding fiscal year or such average rate for the 2nd preceding fiscal year; or

`(B) the number of families participating in eligible State programs is at least 10 percent greater than the average monthly number of families who participated in the programs during the 2 consecutive calendar quarters of the then most recent 8 such quarters in which such average monthly number was the least.

`(5) ELIGIBLE MONTH- In paragraph (3), the term `eligible month' means, with respect to a State, any month for which the State is a needy State, and each subsequent month until--

`(A) 3 months has elapsed since the end of the most recent month in which the 3-month moving average of the rate of total unemployment in the State (seasonally adjusted) was less than the monthly unemployment rate in the State in the most recent month in which the State became (or, in the absence of paragraph (4)(B), would have become) a needy State by reason of paragraph (4)(A); and

`(B) 4 months has elapsed since the end of the most recent month in which the number of families participating in eligible State programs was at least as great as the number of families so participating in the most recent month in which the State became (or, in the absence of paragraph (4)(A), would have become) a needy State by reason of paragraph (4)(B).

`(6) GRANT AMOUNT- The amount described in this paragraph with respect to a State is an amount equal to 110 percent of--

`(A) 80 percent of the average total amount expended by the State under all eligible State programs in the 2 consecutive calendar quarters of the then most recent 8 such quarters in which the average monthly number of families participating in the programs was the least; multiplied by

`(B) the percentage by which the monthly number of families participating in eligible State programs has increased over the average monthly number of families so participating during the 2 consecutive quarters referred to in subparagraph (A).

`(7) ELIGIBLE STATE PROGRAM DEFINED- In this subsection, the term `eligible State program' means, with respect to a State, any program under which a State expenditure could be considered a qualified State expenditure (as defined in section 409(a)(7)(B)(i)).'.

(2) EASING OF RELATED MAINTENANCE OF EFFORT REQUIREMENT- Section 409(a)(10) (42 U.S.C. 609(a)(10)) is amended by striking `100 percent' and inserting `the applicable percentage (as defined in paragraph (7)(B)(ii) of this subsection)'.

(h) FEDERAL LOANS FOR STATE WELFARE PROGRAMS- Section 406 (42 U.S.C. 606) is amended--

(1) in subsection (d), by striking `10' and inserting `20'; and

(2) in subsection (e), by striking `$1,700,000,000' and inserting `$2,000,000,000'.

(i) GRANTS FOR INDIAN TRIBES- Paragraphs (1)(A) and (2)(A) of section 412(a) (42 U.S.C. 612(a)(1)(A), (2)(A)) are each amended by striking `1997, 1998, 1999, 2000, 2001, and 2002' and inserting `1997 through 2008'.

(j) STUDIES AND DEMONSTRATIONS- Section 413(h)(1) (42 U.S.C. 613(h)(1)) is amended by striking `2002' and inserting `2008'.

(k) STUDY BY THE CENSUS BUREAU- Section 414(b) (42 U.S.C. 614(b)) is amended by striking `1996, 1997, 1998, 1999, 2000, 2001, and 2002' and inserting `1996 through 2008'.

SEC. 104. USE OF FUNDS.

(a) ELIMINATION OF AUTHORITY TO TREAT INTERSTATE IMMIGRANTS UNDER RULES OF FORMER STATE- Section 404 (42 U.S.C. 604) is amended by striking subsection (c).

(b) MODIFICATIONS TO INDIVIDUAL DEVELOPMENT ACCOUNTS- Section 404(h) (42 U.S.C. 604(h)) is amended--

(1) in paragraph (2), by striking subparagraph (C) and redesignating subparagraph (D) as subparagraph (C);

(2) in paragraph (5)(A), by adding at the end the following:

`(iii) An institution that offers a course of study leading to adult literacy, in English as a second language, or a certificate of high school equivalency.'; and

(3) in paragraph (5)(F), by striking `and inventory' and inserting `inventory, and transportation'.

(c) CONFORMING AMENDMENTS- Section 404 (42 U.S.C. 404) is amended by striking subsections (i) and (j) and redesignating subsection (k) as subsection (i).

TITLE II--WORK REQUIREMENTS

SEC. 201. REDUCED WORK REQUIREMENT FOR PARENTS OF SCHOOL-AGE CHILDREN WHO CANNOT FIND ADEQUATE CHILD CARE.

Section 407(c)(1)(A) (42 U.S.C. 607(c)(1)(A)) is amended by adding at the end the following:

`Notwithstanding the preceding sentence, the maximum average number of hours per week shall be 20 for any week in which the recipient is the parent or caretaker relative of a child who has attained 6 years of age and does not have meaningful access to safe, appropriate, affordable, and quality after-school or summer care for the child.'.

SEC. 202. CONFORMING THE NUMBER OF WEEKS TO THE UNEMPLOYMENT INSURANCE COMPENSATION STANDARD.

Section 407(c)(2)(A)(i) (42 U.S.C. 607(c)(2)(A)(i)) is amended by striking `6 weeks' and inserting `12 weeks'.

SEC. 203. REVISION OF WORK ACTIVITIES.

(a) IN GENERAL- Section 407(d) (42 U.S.C. 607(d)) is amended--

(1) by striking paragraph (4) and inserting the following:

`(4) transitional work experience leading to jobs that provide an income of not less than 250 percent of the poverty line;';

(2) by striking paragraph (7) and inserting the following:

`(7) voluntary participation in a community service program;';

(3) in paragraph (8), by striking `(not to exceed 12 months with respect to any individual)'; and

(4) by striking paragraphs (10) through (12) and inserting the following:

`(10) participation in a State or Federal work-study program under part C of title IV of the Higher Education Act of 1965;';

`(11) education, including not more than 6 hours of home study per week, in the case of a recipient who is enrolled--

`(A) at an elementary or secondary school (as defined in the Elementary and Secondary Education Act of 1965);

`(B) in a course of study leading to adult literacy, English as a second language, or a certificate of high school equivalency; or

`(C) at an institution of higher education (as defined in section 102 of the Higher Education Act of 1965), regardless of the content of the course of study;

`(12) the provision of appropriate care to a child who has a disability or a serious health condition (as defined in section 101(11) of the Family Medical Leave Act) or has not attained 6 years of age, by a recipient who is a parent or caretaker relative of the child; and

`(13) participation in treatment or an educational activity designed to address a mental health problem, disability, substance abuse, or domestic or sexual violence.'.

(b) CONFORMING AMENDMENTS- Section 407 of such Act (42 U.S.C. 607) is amended--

(1) in subsection (b), by striking paragraph (5); and

(2) in subsection (c)--

(A) in each of subparagraphs (A) and (B)(i) of paragraph (1), by striking `not fewer than' and all that follows through `subsection (d),';

(B) in paragraph (1)(B)(ii), by striking `not fewer than' and all that follows through `subsection (d)'; and

SEC. 204. PENALTIES AGAINST INDIVIDUALS FOR UNJUSTIFIED REFUSAL TO WORK; ADDITIONAL JUSTIFICATIONS.

(a) IN GENERAL- Section 407(e) (42 U.S.C. 607(e)) is amended--

(1) by striking paragraph (1) and inserting the following:

`(1) IN GENERAL- Except as otherwise provided in this subsection, if an individual in a family receiving assistance under the State program funded under this part refuses to engage in work required in accordance with this section, the State shall, subject to such good cause and other exceptions as the State may establish, reduce the amount of assistance otherwise payable to the family on a pro rata basis, but to not less than the amount that would be payable to a family with the same number of children but with no adults, with respect to any period during a month in which the individual so refuses.';

(2) in paragraph (2)--

(A) by striking `EXCEPTION' and inserting `CHILD CARE EXCEPTION'; and

(B) by striking `proves that the individual has a demonstrated inability (as determined by the State)' and inserting `certifies that the individual is unable'; and

(3) by adding at the end the following:

`(3) ADDITIONAL CHILD CARE EXCEPTIONS- Notwithstanding paragraph (1), a State may not reduce or terminate assistance under the State program funded under this part based on a refusal of an individual to engage in work required in accordance with this section if the individual is a custodial parent or caretaker relative caring for--

`(A) a child who has a disability or a serious health condition (as defined in section 101(11) of the Family Medical Leave Act), and the individual does not have meaningful access to safe, appropriate, affordable, and quality care for the child; or

`(B) a child who has attained 6 years of age, and the individual does not have meaningful access to safe, appropriate, affordable, and quality after-school or summer care for the child.

`(4) MENTAL HEALTH PROBLEM, DISABILITY, SUBSTANCE ABUSE, OR DOMESTIC OR SEXUAL VIOLENCE EXCEPTION- Notwithstanding paragraph (1), a State may not reduce or terminate assistance under the State program funded under this part based on the failure of any individual who has a mental health problem, disability, or substance abuse problem, or who is a victim of sexual or domestic violence to engage in work required in accordance with this section if--

`(A) the individual is in the process of being screened or assessed for the mental health problem, disability, substance abuse problem, or sexual or domestic violence situation but the screening or assessment has not been completed;

`(B) the individual has not been offered treatment to address the problem or disability; or

`(C) the individual cannot comply because of the need to seek medical, legal, or other services in relation to the mental health problem, disability, or sexual or domestic violence situation.

`(5) MINIMUM WAGE EXCEPTION- Notwithstanding paragraph (1), a State may not impose a sanction under the State program funded under this part on the basis of the refusal of an individual to accept any employment (including any employment offered under the program), if the wage rate for the employment does not equal or exceed the greater of--

`(A) the minimum wage rate then in effect under section 6 of the Fair Labor Standards Act of 1938; or

`(B) any minimum wage rate prescribed by or under the law of the State.

`(6) DISCRIMINATION EXCEPTION-

`(A) IN GENERAL- Notwithstanding paragraph (1), a State may not reduce or terminate assistance under the State program funded under this part based on the failure of any individual to engage in work required in accordance with this section if the individual certifies in a manner described in subparagraph (B) that the individual has left or refused work based on discrimination.

`(B) CERTIFICATION- An individual may provide a certification required by subparagraph (A) by sworn written statement or by providing other documentation, including a police or court record or documentation by a shelter worker, an employee of a victim assistance program, an attorney, a member of the clergy, or a medical or other professional from whom the individual has sought assistance as a victim.'.

(b) CONFORMING AMENDMENTS- Section 409(a)(11) (42 U.S.C 609(a)(11)) is amended--

(1) in the paragraph heading, by striking `WHO CANNOT OBTAIN CHILD CARE FOR CHILD UNDER AGE 6' and inserting `WITH JUSTIFIED REFUSAL TO WORK'; and

(2) in subparagraph (A), by striking `407(e)(2)' and inserting `407(e)'.

SEC. 205. ELIMINATION OF MISCELLANEOUS PROVISIONS.

Section 407 (42 U.S.C. 607) is amended by striking subsections (g), (h), and (i).

SEC. 206. ASSESSMENT OF INDIVIDUALS FOR JOB PREPARATION.

Section 407 (42 U.S.C. 607), as amended by section 205 of this Act, is amended by adding at the end the following:

`(g) ASSESSMENT OF INDIVIDUALS FOR JOB PREPARATION- At the option of a recipient of assistance under a State program funded under this part, the State shall, before assigning the recipient to a work activity under the program, perform an individual assessment for the preparation that is needed for the recipient to obtain and maintain a job at a monthly wage that is at least 200 percent of the poverty line applicable to the family of the recipient.'.

TITLE III--PROHIBITIONS; REQUIREMENTS

SEC. 301. REPLACEMENT OF REQUIREMENT TO SANCTION INDIVIDUAL FOR NONCOOPERATION IN ESTABLISHING PATERNITY OR OBTAINING CHILD SUPPORT WITH PROHIBITION ON REQUIRING SUCH COOPERATION.

(a) IN GENERAL- Section 408(a)(2) (42 U.S.C. 608(a)(2)) is amended to read as follows:

`(2) PROHIBITION ON REQUIRING COOPERATION IN ESTABLISHING PATERNITY OR OBTAINING CHILD SUPPORT- A State to which a grant is made under section 403 shall not penalize an individual under the State program funded under this part by reason of the failure of the individual to cooperate in establishing paternity or establishing, modifying, or enforcing a child support order with respect to a child of the recipient.'.

(b) CONFORMING AMENDMENTS- Section 454(29) (42 U.S.C. 654(29)) is amended--

(1) by striking `the State program funded under part A,' each place it appears; and

(2) in subparagraph (A)(i), by striking `E,' and inserting `E'.

SEC. 302. PROHIBITION ON REQUIRING ASSIGNMENT OF SUPPORT RIGHTS TO THE STATE; RETURN OF SUPPORT RIGHTS ASSIGNED TO THE STATE.

(a) IN GENERAL- Section 408(a)(3) (42 U.S.C. 608(a)(3)) is amended to read as follows:

`(3) PROHIBITION ON REQUIRING ASSIGNMENT OF SUPPORT RIGHTS TO THE STATE; REQUIREMENT TO RETURN SUPPORT RIGHTS ASSIGNED TO THE STATE- A State to which a grant is made under section 403 shall not penalize an individual or family

under the State program funded under this part by reason of the failure of the individual to assign to the State any rights any person may have (on behalf of the person or of any other person for whom the individual has applied for or is receiving assistance) to support from any other person. If any person has assigned any such rights to the State, the State shall assign such rights back to the person.'.

(b) CONFORMING AMENDMENTS-

(1) Section 452 (42 U.S.C. 652) is amended--

(A) in subsection (a)(10)(C), by striking `pursuant to section 408(a)(3) or'; and

(B) in subsection (h), by striking `or with respect to whom an assignment pursuant to section 408(a)(3) is in effect'.

(2) Section 454(5) (42 U.S.C. 654(5)) is amended by striking `(A)' and all that follows through `(B)'.

(3) Section 456(a)(1) (42 U.S.C. 656(a)(1)) is amended by striking `assigned to the State pursuant to section 408(a)(3) or'.

(4) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by striking `section 408(a)(3) or'.

(5) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by striking `section 408(a)(3) or'.

SEC. 303. ELIMINATION OF SANCTION AGAINST TEENAGE PARENTS NOT ATTENDING HIGH SCHOOL OR OTHER EQUIVALENT TRAINING PROGRAM.

Section 408(a) (42 U.S.C. 608(a)) is amended by striking paragraph (4).

SEC. 304. REQUIREMENTS RELATING TO DISREGARD OF CHILD SUPPORT.

(a) IN GENERAL- Section 408(a) (42 U.S.C. 608(a)), as amended by section 303 of this Act, is amended by inserting after paragraph (3) the following:

`(4) LIMITED DISREGARD OF CHILD SUPPORT- In determining the amount and type of assistance for which a family is eligible under the State program funded under this part, a State to which a grant is made under section 403 shall disregard--

`(A) the first $200 (or, if the family includes 2 or more children, $400) per month distributed to any family member by the State under section 457; and

`(B) all child support (as defined in section 459(i)(2)) received by any family member from any other source.'.

(b) REQUIREMENT TO PASS THROUGH ALL CHILD SUPPORT-

(1) IN GENERAL- Section 457 (42 U.S.C. 657) is amended to read as follows:

`SEC. 457. DISTRIBUTION OF COLLECTED CHILD SUPPORT.

`(a) IN GENERAL- Except as provided in subsection (b), all amounts collected on behalf of a family as support by a State pursuant to a plan approved under this part shall be distributed to the family.

`(b) EXCEPTION- In the case of an amount collected for a family in accordance with a cooperative agreement under section 454(33), the State shall distribute the amount pursuant to the agreement.'.

(2) CONFORMING AMENDMENTS-

(A) Section 409(a)(7)(B)(i)(I)(aa) (42 U.S.C. 609(a)(7)(B)(i)(I)(aa)) is amended by striking `457(a)(1)(B)' and inserting `457'.

(B) Section 454B(c)(1) (42 U.S.C. 654b(c)(1)) is amended by striking `457(a)' and inserting `457'.

SEC. 305. ELIMINATION OF SANCTION AGAINST TEENAGE PARENTS NOT LIVING IN ADULT-SUPERVISED SETTINGS.

Section 408(a) (42 U.S.C. 608(a)) is amended by striking paragraph (5).

SEC. 306. PROTECTION FOR CHILDREN BORN INTO POVERTY.

Section 408(a) (42 U.S.C. 608(a)), as amended by section 305 of this Act, is amended by inserting after paragraph (4) the following:

`(5) PROTECTION FOR CHILDREN- A State to which a grant is made under section 403 shall not deny or limit assistance to a child born into a family receiving assistance under the State program funded under this part.'.

SEC. 307. 5-YEAR TIME LIMIT.

(a) REMOVAL OF LIMITATIONS-

(1) ELIMINATION OF LIMITATION ON HARDSHIP EXCEPTION- Section 408(a)(7)(C) (42 U.S.C. 608(a)(7)(C)) is amended by striking clause (ii) and redesignating clause (iii) as clause (ii).

(2) COMPLIANCE EXCEPTION- Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by adding at the end the following:

`(H) COMPLIANCE EXCEPTION- In determining the number of months for which an individual has received assistance under the State program funded under this part, the State shall disregard any month throughout which the individual is in compliance with all applicable requirements of the State program.'.

(b) UNIFORM DURATION OF ASSISTANCE- Section 408(a)(7)(E) (42 U.S.C. 608(a)(7)(E)) is amended to read as follows:

`(E) REQUIREMENT TO PROVIDE ASSISTANCE FOR 5 YEARS- Notwithstanding section 407(e), a State to which a grant is made under section 403 shall not impose a limitation of fewer than 60 months on the period for which a recipient is eligible for assistance under the State program funded under this part.'.

(c) PROTECTION AGAINST RECESSION- Section 408(a)(7) (42 U.S.C. 608(a)(7)), as amended by subsection (a)(2) of this section, is amended by adding at the end the following:

`(I) SPECIAL RULES RELATING TO MONTH IN WHICH UNEMPLOYMENT IS HIGH OR HAS INCREASED SHARPLY OVER PRIOR 2 YEARS-

`(i) CLOCK STOPPED FOR CURRENT RECIPIENTS- In determining the number of months for which an individual has received assistance under the State program funded under this part, the State shall disregard any month that is a trigger month.

`(ii) TREATMENT OF FORMER RECIPIENTS WHO REACHED TIME LIMIT-

`(I) NOTICE; DETERMINATION OF ELIGIBILITY- On the occurrence of a trigger month, the State shall--

`(aa) issue a public notice that a trigger month has occurred; and

`(bb) on request of an individual who had become ineligible for assistance under the State program funded under this part by reason of this paragraph, determine the eligibility of the individual for such assistance as if the individual had received such assistance for 59 months.

`(II) ADDITIONAL MONTH OF ASSISTANCE FOR OTHERWISE ELIGIBLE FORMER RECIPIENTS- If the individual is so determined to be eligible for such assistance, the State shall,

notwithstanding subparagraph (A), provide such assistance to the individual for any month that is a trigger month, but shall not provide such assistance to the individual for any month that is not a trigger month.

`(iii) TRIGGER MONTH- In this subparagraph, the term `trigger month' means, with respect to a State, any month for which the unemployment rate of the State--

`(I) is at least 5.5 percent; or

`(II) has increased by the lesser of 50 percent, or 1.5 percentage points, over the lesser of the average rate of total unemployment in the State (seasonally adjusted) for the preceding fiscal year or the average unemployment rate of the State for the 2nd preceding fiscal year.'.

SEC. 308. REQUIREMENT TO PROVIDE NOTICE OF RIGHTS OF RECIPIENTS, AND TRAIN PROGRAM PERSONNEL IN CARRYING OUT PROGRAM CONSISTENT WITH THE RIGHTS.

Section 408(a) (42 U.S.C. 608(a)) is amended by adding at the end the following:

`(12) REQUIREMENT TO PROVIDE NOTICE OF RIGHTS OF RECIPIENTS, AND TRAIN PROGRAM PERSONNEL TO CARRY OUT PROGRAM CONSISTENT WITH THE RIGHTS- A State to which a grant is made under section 403 shall--

`(A) notify each recipient of assistance under the program of the rights of recipients under all laws applicable to the activities of the State program funded under this part, and shall provide the notice--

`(i) to a recipient when the recipient enters the program;

`(ii) to all such recipients on a semiannual basis; and

`(iii) orally and in writing, in the native language of the recipient and at a 6th grade level, and if the native language is not English, a culturally competent translation shall be provided; and

`(B) train all program personnel on a regular basis in how to carry out the program consistent with the rights.'.

SEC. 309. REQUIREMENT TO PROVIDE INFORMATION TO INDIVIDUALS WHO ARE, OR ARE AT RISK OF BEING, SANCTIONED.

Section 408(a) (42 U.S.C. 608(a)) is further amended by adding at the end the following:

`(13) STATE REQUIRED TO PROVIDE INFORMATION TO INDIVIDUAL WHO HAS BEEN, OR IS AT RISK OF BEING SANCTIONED- A State to which a grant is made under section 403 shall provide to any individual who has been, or is at risk of being, sanctioned under the State program funded under this part, orally and in writing, at not more than a 6th grade level in the native language of the individual (and if the native language is not English, a culturally competent translation shall be provided), that--

`(A) program requirements may be waived for people dealing with a mental health, disability, substance abuse, domestic violence, or sexual assault issue;

`(B) an individual dealing with a mental health, disability, substance abuse, domestic violence, or sexual assault issue may request (or if the individual has left or been removed from the program, may return to the program and request) to be assessed under the program for services to address those issues, including appropriate treatment, counseling, vocational rehabilitation, job training, or other services; and

`(C) the State is required to keep any such information strictly confidential.'.

SEC. 310. BAN ON COUNTING INCOME, SCHOLARSHIP, OR GIFT RECEIVED BY DEPENDENT MINORS.

Section 408(a) (42 U.S.C. 608(a)) is further amended by adding at the end the following:

`(14) PROHIBITION ON COUNTING INCOME, SCHOLARSHIP, OR GIFT RECEIVED BY DEPENDENT MINOR- In determining the eligibility of a family for, and the amount and type of assistance to be provided to a family under, a State program funded under this part, the State shall disregard any income, scholarship, or gift received by a dependent minor child in the family.'.

SEC. 311. BAN ON DIVERSION OF POTENTIAL APPLICANTS FOR ASSISTANCE.

Section 408(a) (42 U.S.C. 608(a)) is further amended by adding at the end the following:

`(15) BAN ON DIVERSION OF POTENTIAL APPLICANTS FOR ASSISTANCE- A State may not refuse to accept, at the time of application, an application for assistance from the State program funded under this part, or give an individual reason to believe that, at the time of application, the State will not unconditionally accept such an application from any individual.'.

SEC. 312. PROHIBITION ON REQUIRING RECIPIENTS TO RESPOND TO SURVEYS CONDUCTED TO OBTAIN INFORMATION FOR QUARTERLY REPORTS.

Section 408(a) (42 U.S.C. 608(a)) is further amended by adding at the end the following:

`(16) PROHIBITION ON REQUIRING RECIPIENTS TO RESPOND TO SURVEYS CONDUCTED TO OBTAIN INFORMATION FOR QUARTERLY REPORTS- A State to which a grant is made under section 403 shall not penalize an individual under the State program funded under this part by reason of the failure of the individual to respond to a survey conducted to obtain information for use in a report required by section 411(a).'.

SEC. 313. CONFIDENTIALITY OF PROGRAM INFORMATION.

Section 408(a) (42 U.S.C. 608(a)) is further amended by adding at the end the following:

`(17) CONFIDENTIALITY OF PROGRAM INFORMATION- A State to which a grant is made under section 403 shall ensure that any information provided by an individual to a State officer or employee for use by the State program funded under this part shall not be disclosed to any other person, except to the extent that the disclosure is necessary to administer the program or is consented to by the individual.'.

SEC. 314. NONDISCRIMINATION.

Section 408(a) (42 U.S.C. 608(a) is amended by adding at the end the following:

`(18) NONDISCRIMINATION- A State to which a grant is made under section 403 shall ensure equitable treatment of needy families in the State, and shall not discriminate among families based on marital status or applicant or recipient status.'.

SEC. 315. REQUIREMENT TO PROVIDE OPPORTUNITY TO APPEAL ADVERSE DECISION.

Section 408(a) (42 U.S.C. 608(a) is amended by adding at the end the following:

`(19) REQUIREMENT TO PROVIDE OPPORTUNITY TO APPEAL ADVERSE DECISION- A State to which a grant is made under section 403 shall provide a recipient of assistance under the State program funded under this part with the opportunity to appeal any adverse decision made with respect to the recipient under the program.'.

SEC. 316. CLARIFICATION OF PENALTY FOR FAILURE TO COMPLY WITH INDIVIDUAL RESPONSIBILITY PLAN.

Section 408(b)(3) (42 U.S.C. 608(b)(3)) is amended by striking `a family that includes'.

SEC. 317. APPLICABILITY OF CIVIL RIGHTS LAWS.

Section 408(d) (42 U.S.C. 608(d)) is amended--

(1) in paragraph (3), by inserting `, or any provision of State law relating to individuals with physical or mental disabilities' before the 2nd period; and

(2) by adding at the end the following:

`(5) Title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), or any provision of State law relating to discrimination on the basis of race, color, national origin, religion, gender, sex, parental or marital status, or sexual orientation.

`(6) The Age Discrimination in Employment Act of 1967 (29 U.S.C. 621-634), or any provision of State law relating to age discrimination.

`(7) Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), or any provision of State law relating to discrimination in education.

`(8) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), or any provision of State law relating to labor or to a term or condition of employment.

`(9) The Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq).

`(10) The National Labor Relations Act (29 U.S.C. 151 et seq.).

`(11) The Railway Labor Act (45 U.S.C. 151 et seq.).

`(12) Any Federal law providing employee protections against discrimination for union activity.

`(13) Any other provision of Federal or State law the purpose of which is to provide or protect a civil right.'.

SEC. 318. ELIMINATION OF SPECIAL RULES RELATING TO TREATMENT OF ALIENS.

(a) AMENDMENTS TO THE PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996-

(1) Section 401(c)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(c)(2)) is amended--

(A) by striking `or' at the end of subparagraph (B);

(B) by striking the period at the end and inserting `; or'; and

`(D) to any assistance provided under a State program funded under the program of block grants to States for temporary assistance for needy families under part A of title IV of the Social Security Act.'.

(2)(A) Section 402(b)(3) of such Act (8 U.S.C. 1612(b)(3)) is amended by striking subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.

(B) Section 402(b)(2)(A)(ii) of such Act (8 U.S.C. 1612(b)(2)(A)(ii)) is amended by striking `(C)' and inserting `(B)'.

(3) Section 403(c)(2) of such Act (8 U.S.C. 1613(c)(2)) is amended by adding at the end the following:

`(L) Assistance under a State program funded under the program of block grants to

States for temporary assistance for needy families under part A of title IV of the Social Security Act.'.

(4) Section 423(d) of such Act (8 U.S.C. 1138a note) is amended by adding at the end the following:

`(12) Assistance under a State program funded under the program of block grants to States for temporary assistance for needy families under part A of title IV of the Social Security Act.'.

(b) CONFORMING AMENDMENTS-

(1) Section 408 (42 U.S.C. 608) is amended by striking subsections (e) and (f) and by redesignating subsection (g) as subsection (e).

(2) Section 409(a)(7)(B)(i)(IV) (42 U.S.C. 609(a)(7)(B)(i)(IV)) is amended--

(A) by striking `part,' and inserting `part and'; and

(B) by striking `, and families of aliens lawfully present in the United States that would be eligible for such assistance but for the application of title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996'.

TITLE IV--PENALTIES

SEC. 401. INCREASE IN PENALTY FOR FAILURE TO SUBMIT REQUIRED REPORT.

Section 409(a)(2)(A) (42 U.S.C. 609(a)(2)(A)) is amended by striking `4' and inserting `5'.

SEC. 402. REPLACEMENT OF PENALTY AGAINST STATE FOR FAILURE TO COMPLY WITH PATERNITY ESTABLISHMENT AND CHILD SUPPORT ENFORCEMENT REQUIREMENTS WITH PENALTY FOR REQUIRING COOPERATION IN ESTABLISHING PATERNITY OR OBTAINING CHILD SUPPORT (INCLUDING ASSIGNING SUPPORT RIGHTS TO THE STATE) OR FAILING TO RETURN SUPPORT RIGHTS ASSIGNED TO THE STATE.

Section 409(a)(5) (42 U.S.C. 609(a)(5)) is amended to read as follows:

`(5) PENALTY FOR REQUIRING COOPERATION IN ESTABLISHING PATERNITY OR OBTAINING CHILD SUPPORT (INCLUDING ASSIGNING SUPPORT RIGHTS TO THE STATE) OR FAILING TO RETURN SUPPORT RIGHTS ASSIGNED TO THE STATE- If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has violated paragraph (2) or (3) of section 408(a) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant.'.

SEC. 403. EXTENSION OF MAINTENANCE OF EFFORT REQUIREMENT.

Section 409(a)(7)(A) (42 U.S.C. 609(a)(7)(A)) is amended by striking `or 2003' and inserting `2003, 2004, 2005, 2006, 2007, or 2008'.

SEC. 404. PENALTY FOR FAILURE OF STATE TO COMPLY WITH CHILD SUPPORT DISREGARD REQUIREMENTS.

Section 409(a) (42 U.S.C. 609(a)) is amended by adding at the end the following:

`(15) PENALTY FOR FAILURE TO COMPLY WITH CHILD SUPPORT DISREGARD REQUIREMENTS- If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has violated section 408(a)(4) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant.'.

SEC. 405. PENALTY FOR PENALIZING BIRTH OF CHILD.

Section 409(a) (42 U.S.C. 609(a)) is further amended by adding at the end the following:

`(16) PENALTY FOR PENALIZING BIRTH OF CHILD- If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has violated section 408(a)(5) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant.'.

SEC. 406. PENALTY FOR FAILURE TO NOTIFY RECIPIENTS OF RIGHTS, OR TRAIN PROGRAM PERSONNEL IN RESPECTING RIGHTS OF RECIPIENTS.

Section 409(a) (42 U.S.C. 609(a)) is further amended by adding at the end the following:

`(17) PENALTY FOR FAILURE TO NOTIFY RECIPIENTS OF RIGHTS, OR TRAIN PROGRAM PERSONNEL IN RESPECTING RIGHTS OF RECIPIENTS- If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has violated section 408(a)(12) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant.'.

SEC. 407. PENALTY FOR FAILURE TO PROVIDE INFORMATION TO INDIVIDUALS WHO ARE, OR ARE AT RISK OF BEING, SANCTIONED.

Section 409(a) (42 U.S.C. 609(a)) is further amended by adding at the end the following:

`(18) PENALTY FOR FAILURE TO PROVIDE INFORMATION TO INDIVIDUAL WHO HAS BEEN, OR IS AT RISK OF BEING SANCTIONED- If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has violated section 408(a)(13) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant.'.

SEC. 408. PENALTY FOR COUNTING INCOME, SCHOLARSHIP, OR GIFT RECEIVED BY DEPENDENT MINOR.

Section 409(a) (42 U.S.C. 608(a)) is amended by adding at the end the following:

`(19) PENALTY FOR COUNTING INCOME, SCHOLARSHIP, OR GIFT RECEIVED BY DEPENDENT MINOR- If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has violated section 408(a)(14) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant.'.