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SEC. 203. PARENTS AS SCHOLARS PROGRAM.

(a) STATE OPTION TO ESTABLISH PARENTS AS SCHOLARS PROGRAM- Section 404 (42 U.S.C. 604) is amended by adding at the end the following new subsection:

`(l) AUTHORITY TO ESTABLISH A PARENTS AS SCHOLARS PROGRAM-

`(1)

`(A) IN GENERAL- A State to which a grant is made under section 403 may use the grant to establish a parents as scholars program under which an eligible participant may be provided support services described in paragraph (4) based on the participant's need in order to complete the program, and the State may elect--

`(i) in accordance with section 407(c)(2)(E), to include the participant in the determination of the monthly work participation rates under paragraph (1)(B)(i) of section 407(b); and

`(ii) in accordance with section 408(a)(7)(H), to credit the participant for any month in which the participant is engaged in the program for purposes of determining the number of months for which an adult has received assistance under a State or tribal program funded under this part.

`(B) LIMITATION ON NUMBER OF ELIGIBLE PARTICIPANTS- The number of eligible participants that may participate in a parents as scholars program established under this subsection may not exceed the amount equal to 5 percent of the total number of recipients of assistance under the State program funded under this part.

`(2) DEFINITION OF ELIGIBLE PARTICIPANT-

`(A) IN GENERAL- In this subsection, the term `eligible participant' means an individual who receives assistance under the State program funded under this part and satisfies the following requirements:

`(i) The individual is enrolled as a full-time student in a postsecondary 2- or 4-year degree program.

`(ii) The individual does not have a marketable bachelor's degree.

`(iii) The individual does not have the skills necessary to earn at least 85 percent of the median wage for the State or locality in which the individual resides.

`(iv) The individual is--

`(I) pursuing a degree that will improve the individual's ability to support the individual's family, considering the local labor market and employment opportunities; and

`(II) demonstrating an ability to succeed in the educational program that has been chosen.

`(v) The individual participates in a combination of education, training , study or worksite experience for an average of not less than 20 hours per week (including time spent studying at 150 percent of time spent in class).

`(vi) After the first 24 months of participation in the program, the individual--

`(I) works not less than 15 hours per week (in addition to school and study time); or

`(II) engages in a combination of class hours, study hours (including time spent studying at 150 percent of time spent in class) and work for a total of not less than 40 hours per week.

`(vii) During the period the individual participates in the program, the individual--

`(I) maintains not less than a 2.0 grade point average;

`(II) attends classes as scheduled;

`(III) reports to the individual's caseworker for the program any changes that might affect the individual's participation;

`(IV) provides the individual's caseworker with a copy of any financial aid award letters; and

`(V) provides the individual's caseworker with the individual's semester grades as requested.

`(B) DEFINITION OF FULL-TIME STUDENT-

`(i) IN GENERAL- In subparagraph (A)(i), the term `full-time student' means an individual is taking courses having the number of hours needed under the requirements of the educational institution in which the individual is enrolled, to complete the requirements of a degree within the usual timeframe of 2 or 4 years, as applicable.

`(ii) EXCEPTION- The State may, for good cause, modify the number of hours required under clause (i) to allow additional time, not to exceed 150 percent of the usual timeframe required for completion of a 2- or 4-year degree, for an individual to complete a degree and be considered a full-time student under the program established under this subsection.

`(3) MODIFICATION OF ELIGIBLE PARTICIPANT REQUIREMENTS- A State may, for good cause, modify the requirements for an eligible participant set forth in paragraph (2)(A).

`(4) SUPPORT SERVICES DESCRIBED- For purposes of paragraph (1), the support services described in this paragraph include any or all of the following during the period the eligible participant is in the program established under this subsection:

`(A) Child care for children under age 13, or children who are physically or mentally incapable of caring for themselves.

`(B) Transportation services including--

`(i) mileage at a set rate per mile or reimbursement for public or private transportation;

`(ii) payment for automotive repairs, not to exceed $500 per year on a vehicle registered to the eligible participant; and

`(iii) reimbursement for vehicle liability insurance, not to exceed $300, for the eligible participant's vehicle.

`(C) Payment for books and supplies to the extent that such items are not covered by grants and loans, not to exceed $750 per academic year.

`(D) Such other expenses, not to exceed $500, that the State determines are necessary for the eligible participant to complete the program established under this subsection and that are not covered by any other available support services program.'.

(b) STATE OPTION TO INCLUDE PARENTS AS SCHOLARS PARTICIPANTS IN DETERMINATION OF WORK PARTICIPATION REQUIREMENTS- Section 407(c)(2) (42 U.S.C. 607(c)(2)) is amended by adding at the end the following new subparagraph:

`(E) STATE OPTION TO INCLUDE PARENTS AS SCHOLARS PARTICIPANTS AS ENGAGED IN WORK- In the case of a State that elects to establish a parents as scholars program under section 404(l), the State may consider individuals participating in that program as being engaged in work for the month for purposes of determining monthly participation rates under subsection (b)(1)(B)(i).'.

(c) INCLUSION IN DEFINITION OF WORK ACTIVITY- Section 407 of the Social Security Act (42 U.S.C. 607) is amended--

(1) in subparagraphs (A) and (B) of subsection (c)(1), by striking `or (12)' each place it appears and inserting `(12), or (13)'; and

(2) in subsection (d)--

(A) in paragraph (11), by striking `and' at the end;

(B) in paragraph (12), by striking the period and inserting `; and'; and

(C) by adding at the end the following:

`(13) postsecondary education, but only in the case of an individual participating in a parents as scholars program that meets the requirements of section 404(l).'.

SEC. 204. ELIMINATION OF RECIPIENTS COMPLETING SECONDARY SCHOOL FROM LIMIT ON NUMBER OF TANF RECIPIENTS PARTICIPATING IN VOCATIONAL EDUCATIONAL TRAINING .

(a) IN GENERAL- Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is amended by striking `, or (if the month is in fiscal year 2000 or thereafter) deemed to be engaged in work for the month by reason of subparagraph (C) of this paragraph' and inserting `(determined without regard to any individual described in subparagraph (C)'.

(b) CONFORMING AMENDMENTS-

(1) Section 407(c)(2)(C)(ii) (42 U.S.C. 607(c)(2)(C)(ii) is amended by inserting `including vocational educational training' after `employment'.

(2) Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is amended in the heading, by striking `EDUCATIONAL ACTIVITIES' and inserting `VOCATIONAL EDUCATIONAL ACTIVITIES'.

SEC. 205. VOCATIONAL TRAINING AND OTHER PREEMPLOYMENT ACTIVITIES.

(a) COUNTING OF UP TO 24 MONTHS OF VOCATIONAL TRAINING AS WORK ACTIVITY- Section 407(d)(8) (42 U.S.C. 607(d)(8)) is amended by striking `12' and inserting `24'.

(b) PARTICIPATION IN ENGLISH-AS-A-SECOND-LANGUAGE PROGRAM ALLOWABLE AS A PREEMPLOYMENT ACTIVITY- Section 407 (42 U.S.C. 607), as amended by section 203(c) and section 301(a), is amended--

(1) in subsection (c)(1), by striking `or (13)' and inserting `(13), or (14)'; and

(2) in subsection (d)--

(A) by striking `and' at the end of paragraph (12);

(B) by striking the period at the end of paragraph (13) and inserting `; and'; and

(C) by adding at the end the following:

`(14) participation in an English-as-a-second-language program.'.

SEC. 206. STATE OPTION TO CREDIT MONTHS ENGAGED IN WORK OR PARENTS AS SCHOLARS PROGRAM FOR PURPOSES OF 5-YEAR ASSISTANCE LIMIT.

Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by adding at the end the following new subparagraph:

`(H) STATE OPTION TO CREDIT MONTHS ENGAGED IN WORK OR PARENTS AS SCHOLARS PROGRAM- In determining the number of months for which an adult has received assistance under a State or tribal program funded under this part, the State or tribe may disregard any month during which the adult is--

`(i) engaged in a work activity defined in paragraph (1), (2), (3), (4), or (7) of section 407(d) in accordance with the requirements of section 407(c); or

`(ii) a participant in the parents as scholars program established under section 404(l).'.

SEC. 207. INNOVATIVE BUSINESS LINK PARTNERSHIP FOR EMPLOYERS AND NONPROFIT ORGANIZATIONS.

(a) AUTHORITY TO AWARD GRANTS- The Secretary of Health and Human Services and the Secretary of Labor (in this section referred to as the `Secretaries') jointly shall award grants in accordance with this section for projects proposed by eligible applicants based on the following:

(1) The potential effectiveness of the proposed project in carrying out the activities described in subsection (e).

(2) Evidence of the ability of the eligible applicant to leverage private, State, and local resources.

(3) Evidence of the ability of the eligible applicant to coordinate with other organizations at the State and local level.

(b) DEFINITION OF ELIGIBLE APPLICANT- In this section, the term `eligible applicant' means a nonprofit organization, a local workforce investment board established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832), or a political subdivision of a State. In addition, in order to qualify as an eligible applicant for purposes of subsection (e)(1), the applicant must provide evidence that the application has been developed by and will be implemented by a local or regional consortium that includes, at minimum, employers or employer associations, education and training providers, and social service providers.

(c) REQUIREMENTS- In awarding grants under this section, the Secretaries shall--

(1) consider the needs of rural areas and cities with large concentrations of residents with an income that is less than the 150 percent of the poverty line; and

(2) ensure that--

(A) all of the funds made available under this section (other than funds reserved for use by the Secretaries under subsection (j)) shall be used for activities described in subsection (e);

(B) not less than 30 percent of the funds made available under this section (other than funds so reserved) shall be used for activities described in subsection (e)(1); and

(C) not less than 30 percent of the funds made available under this section (other than funds so reserved) shall be used for the activities described in subsection (e)(2).

(d) DETERMINATION OF GRANT AMOUNT-

(1) IN GENERAL- Subject to paragraph (2), in determining the amount of a grant to be awarded under this section for a project proposed by an eligible applicant, the Secretaries shall provide the eligible applicant with an amount sufficient to ensure that the project has a reasonable opportunity to be successful, taking into account--

(A) the number and characteristics of the individuals to be served by the project;

(B) the level of unemployment in such area;

(C) the job opportunities and job growth in such area;

(D) the poverty rate for such area; and

(E) such other factors as the Secretary deems appropriate in the area to be served by the project.

(2) AWARD CEILING- A grant awarded to an eligible applicant under this section may not exceed $10,000,000.

(e) ALLOWABLE ACTIVITIES- An eligible applicant awarded a grant under this section shall use funds provided under the grant to do the following:

(1) PROMOTE BUSINESS LINKAGES-

(A) IN GENERAL- To promote business linkages in which funds shall be used to fund new or expanded programs that are designed to--

(i) substantially increase the wages of low-income parents, noncustodial parents, and other low-income individuals, whether employed or unemployed, who have limited English proficiency or other barriers to employment by upgrading job and related skills in partnership with employers, especially by providing services at or near work sites; and

(ii) identify and strengthen career pathways by expanding and linking work and training opportunities for low-earning workers in collaboration with employers.

(B) CONSIDERATION OF IN-KIND, IN-CASH RESOURCES- In determining which programs to fund under this paragraph, an eligible applicant awarded a grant under this section shall consider the ability of a consortium to provide funds in-kind or in-cash (including employer-provided, paid release time) to help support the programs for which funding is sought.

(C) PRIORITY- In determining which programs to fund under this paragraph, an eligible applicant awarded a grant under this section shall give priority given to programs that include education or training for which participants receive credit toward a recognized credential.

(D) USE OF FUNDS-

(i) IN GENERAL- Funds provided to a program under this paragraph may be used for a comprehensive set of employment and training benefits and services, including job development, job matching, curricula development, wage subsidies, retention services, and such others as the program deems necessary to achieve the overall objectives of this paragraph.

(ii) PROVISION OF SERVICES- So long as a program is principally designed to assist eligible individuals, funds may be provided to a program under this paragraph that is designed to provide services to categories of low-earning employees for 1 or more employers and such a program may provide services to individuals who do not meet the definition of low-income established for the program.

(2) PROVIDE FOR TRANSITIONAL JOBS PROGRAMS-

(A) IN GENERAL- To provide for transitional jobs programs which combine time-limited employment in the public or nonprofit sector that is subsidized with public funds with skill development and barriers to employment removal activities, pursuant to an individualized

plan. Such programs also shall provide job development and placement assistance to individual participants to help them move from subsidized employment in transitional jobs into unsubsidized employment, as well as retention services after the transition to unsubsidized employment.

(B) DEFINITION OF TRANSITIONAL JOBS PROGRAM- In this paragraph, the term `transitional jobs program' means a program that is intended to serve current and former recipients of assistance under a State or tribal program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and other low-income individuals who have been unable to secure employment through job search or other employment-related services because of limited skills, experience, or other barriers to employment.

(f) DEFINITION OF ELIGIBLE INDIVIDUAL- In this section, the term `eligible individual' means--

(A) an individual who is a parent who is a recipient of assistance under a State or tribal program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.);

(B) an individual who is a parent who has ceased to receive assistance under such a State or tribal program; or

(C) a noncustodial parent who is unemployed, or having difficulty in paying child support obligations.

(g) APPLICATION- Each eligible applicant desiring a grant under this section shall submit an application to the Secretaries at such time, in such manner, and accompanied by such information as the Secretaries may require.

(h) ASSESSMENTS AND REPORTS BY GRANTEES-

(1) IN GENERAL- An eligible applicant that receives a grant under this section shall assess and report on the outcomes of programs funded under the grant, including outcomes related to job placement, 1-year employment retention, wage at placement, and earnings progression, as specified by the Secretaries.

(2) ASSISTANCE- The Secretaries shall--

(A) assist grantees in conducting the assessment required under paragraph (1) by making available where practicable low-cost means of tracking the labor market outcomes of participants; and

(B) encourage States to also provide such assistance.

(i) APPLICATION TO REQUIREMENTS OF THE STATE TANF PROGRAM-

(1) WORK PARTICIPATION REQUIREMENTS- With respect to any month in which a recipient of assistance under a State or tribal program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) who satisfactorily participates in a business linkage or transitional jobs program described in subsection (e) that is paid for with funds made available under a grant made under this section, such participation shall be considered to satisfy the work participation requirements of section 407 of the Social Security Act (42 U.S.C. 607)) and included for purposes of determining monthly participation rates under subsection (b)(1)(B)(i) of such section.

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