S 2524 IS

To amend part A of title IV of the Social Security Act to reauthorize the temporary assistance to needy families program, and for other purposes.

May 15 (legislative day, MAY 9), 2002

Mr. BAYH (for himself, Mr. CARPER, Mr. GRAHAM, Mrs. CLINTON, Mr. LIEBERMAN, Mr. MILLER, Mrs. CARNAHAN, Mr. NELSON of Nebraska, and Mr. NELSON of Florida) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend part A of title IV of the Social Security Act to reauthorize the temporary assistance to needy families program, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; AMENDMENTS TO SOCIAL SECURITY ACT.

(a) SHORT TITLE- This Act may be cited as the `Work and Family Act of 2002'.

(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents; amendments to Social Security Act.

Sec. 2. Findings.

TITLE I--REQUIRING WORK

Sec. 101. Increase in work participation rates.

Sec. 102. Elimination of separate work participation rate for 2-parent families.

Sec. 103. Credits for purposes of determining monthly work participation rates.

Sec. 104. Child support collection credit.

Sec. 105. Phaseout of caseload reduction credit.

Sec. 106. Removal of recipients who qualify for supplemental security income benefits from work participation rate calculation for entire year.

Sec. 107. 40-hour work week.

Sec. 108. Increase in mandatory funding for child care.

Sec. 109. State option for participation requirement exemption for individuals overcoming barriers to work.

Sec. 110. Competitive grants for public-private partnerships for educational opportunities for career advancement; State option to establish parents as scholars program.

Sec. 111. Transitional jobs programs.

Sec. 112. Ensuring TANF funds are not used to displace public employees; application of workplace laws to welfare recipients.

TITLE II--STRENGTHENING FAMILIES

Subtitle A--Responsible Fatherhood

Sec. 201. Block grants to States to encourage media campaigns.

Sec. 202. Responsible fatherhood block grant.

Sec. 203. National clearinghouse for responsible fatherhood programs.

Sec. 204. Policy reviews and demonstration projects to coordinate services for low-income, noncustodial parents.

Subtitle B--Additional Provisions To Strengthen Families

Sec. 211. Ban on imposition of stricter eligibility criteria for 2-parent families.

Sec. 212. Noncustodial parent employment grant program.

Subtitle C--Teen Pregnancy Prevention Grants

Sec. 221. Teen pregnancy prevention grants.

Sec. 222. Teen pregnancy prevention resource center.

Sec. 223. Establishing national goals to prevent teen pregnancy.

Subtitle D--Child Support Distribution to Families First

Chapter 1--Distribution of Child Support

Sec. 231. Distribution of child support collected by States on behalf of children receiving certain welfare benefits.

Chapter 2--Demonstrations of Expanded Information and Enforcement

Sec. 241. Guidelines for involvement of public non-IV-D child support enforcement agencies in child support enforcement.

Sec. 242. Demonstrations involving establishment and enforcement of child support obligations by public non-IV-D child support enforcement agencies.

Sec. 243. GAO report to Congress on private child support enforcement agencies.

Sec. 244. Effective date.

Chapter 3--Expanded Enforcement

Sec. 251. Decrease in amount of child support arrearage triggering passport denial.

Sec. 252. Use of tax refund intercept program to collect past-due child support on behalf of children who are not minors.

Sec. 253. Garnishment of compensation paid to veterans for service-connected disabilities in order to enforce child support obligations.

Chapter 4--Miscellaneous

Sec. 261. Report on undistributed child support payments.

Sec. 262. Use of new hire information to assist in administration of unemployment compensation programs.

Sec. 263. Immigration provisions.

Sec. 264. Increase in payment rate to States for expenditures for short-term training of staff of certain child welfare agencies.

Sec. 265. Correction of errors in conforming amendments in the welfare-to-work and child support amendments of 1999.

Sec. 266. Technical correction to changed dates for abstinence evaluation.

TITLE III--PROVIDING FLEXIBILITY AND RESOURCES

Subtitle A--Resources Under TANF

Sec. 301. Reauthorization of State family assistance grants.

Sec. 302. Contingency fund.

Sec. 303. Reauthorization of supplemental grants for population increases.

Sec. 304. Grants to States for administrative costs of implementing increased work requirements and to enhance State capabilities and caseworker training.

Sec. 305. Credit for State expenditures to carry out the purposes of TANF.

Sec. 306. Reauthorization of grants for Indian tribes and penalty for failure to maintain historic State effort.

Sec. 307. Clarification of authority of States to use TANF funds carried over from prior years to provide TANF benefits and services.

Sec. 308. Promoting work and responsibility among all families with children.

Sec. 309. Data collection and reporting.

Sec. 310. Definition of assistance.

Sec. 311. Authority to use TANF funds for housing benefits.

Subtitle B--Resources Under Other Programs

Sec. 321. Restoration of funding for the Social Services Block Grant.

Sec. 322. One-year extension and revision and simplification of the transitional medical assistance program (TMA).

Sec. 323. Optional coverage of legal immigrants under the medicaid program and title XXI.

Sec. 324. Pathway to self-sufficiency grants to improve coordination of assistance for low-income families.

Sec. 325. GAO study on impact of ban on SSI benefits for legal immigrants.

TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

(c) AMENDMENTS TO SOCIAL SECURITY ACT- Except as otherwise specifically provided, whenever in this Act an amendment is expressed in terms of an amendment to or repeal of a section or other provision, the reference shall be considered to be made to that section or other provision of the Social Security Act (42 U.S.C. 301 et seq.).

SEC. 2. FINDINGS.

(a) IN GENERAL- Congress makes the following findings regarding the reauthorization of the temporary assistance to needy families program under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.):

(1) The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2105) was a fundamental change to reform the Federal welfare system to shift it from an entitlement program into a transition program to help families move from welfare to work and personal responsibility.

(2) Since enactment of the 1996 welfare reform law, welfare cash assistance caseloads have dropped dramatically, by more than 50 percent, and approximately 2/3 of welfare recipients who have left the cash assistance rolls have left for work.

(3) More investments in quality child care will allow parents to enter and continue in the workforce knowing that their children have access to safe, meaningful child care, hopefully with emphasis on child development and preparation to ensure that each child gains the skills needed to enter school ready to learn.

(4) Child poverty rates are improving, but more must be done to reduce poverty in the 2,000,000 families who are still struggling.

(5) Children deserve to be raised in supportive homes, preferably with 2 loving parents. It is crucial to end policies that discriminate against serving 2-parent families within the welfare system. It is also important to support innovative programs to encourage full participation in child support and child rearing by noncustodial parents.

(b) RESPONSIBLE FATHERHOOD- Congress makes the following findings regarding responsible fatherhood:

(1) Nearly 24,000,000 children in the United States, or 36 percent of all such children, live apart from their biological father.

(2) Sixty percent of couples who divorce have at least 1 child.

(3) The number of children living with only a mother increased from just over 5,000,000 in 1960, to 20,000,000 in 2001, and between 1981 and 1991 the percentage of children living with only 1 parent increased from 19 percent to 27 percent.

(4) Forty percent of children who live in households without a father have not seen their father in at least 1 year and 50 percent of such children have never visited their father's home.

(5) The most important factor in a child's upbringing is whether the child is brought up in a loving, healthy, supportive environment.

(6) Children who live without contact with their biological father are, in comparison to children who have such contact--

(A) 5 times more likely to live in poverty;

(B) more likely to bring weapons and drugs into the classroom;

(C) twice as likely to commit crime;

(D) twice as likely to drop out of school;

(E) twice as likely to be abused;

(F) more likely to commit suicide;

(G) more than twice as likely to abuse alcohol or drugs; and

(H) more likely to become pregnant as teenagers.

(7) Violent criminals are overwhelmingly males who grew up without fathers.

(8) Between 20 and 30 percent of families in poverty are headed by women who have suffered domestic violence during the past year and between 40 and 60 percent of women with children receiving welfare were abused sometime during their life.

(9) Responsible fatherhood includes active participation in financial support and child care, as well as the formation and maintenance of a positive, healthy, and nonviolent relationship between father and child and a cooperative relationship between parents.

(10) States should be encouraged to implement programs that provide support for responsible fatherhood, promote marriage, and increase the incidence of marriage, and should not be restricted from implementing such programs.

(11) Fatherhood programs should promote and provide support services for--

(A) loving and healthy relationships between parents and children; and

(B) cooperative parenting.

(12) There is a social need to reconnect children and fathers.

(13) The promotion of responsible fatherhood and encouragement of married 2-parent families should not--

(A) denigrate the standing or parenting efforts of single mothers or other caregivers;

(B) lessen the protection of children from abusive parents; or

(C) compromise the safety or health of the custodial parent;

but should increase the chance that children will have 2 caring parents to help them grow up healthy and secure.

(14) The promotion of responsible fatherhood must always recognize and promote the values of nonviolence.

(15) For the future of the United States and the future of our children, Congress, States, and local communities should assist parents to become more actively involved in their children's lives.

(16) Child support is an important means by which a parent can take financial responsibility for a child and emotional support is an important means by which a parent can take social responsibility for a child.

(c) TEEN PREGNANCY PREVENTION- Congress makes the following findings regarding the prevention of teen pregnancy:

(1) The United States is making significant progress in reducing teen births, with national teen birth rates declining 22 percent since 1991.

(2) Despite declining national rates, teen birth rates went up in 11 States between 1999 and 2000, and the national teen birth rate for Hispanic teens who are 15 to 19 years old also increased between 1999 and 2000.

(3) In the United States 4 out of 10 girls get pregnant at least once by age 20, nearly 1,000,000 girls each year. There are nearly 500,000 teen births each year.

(4) Although teen pregnancy and birth rates are declining, the United States still has the highest rates of teen pregnancy and birth in the industrialized world, nearly twice as high as the next highest nation, Great Britain.

(5) Some 52 percent of all mothers on welfare had their first child as a teenager, according to the most recent data available. Almost 1/2 of all teen mothers and over 3/4 of unmarried teen mothers began receiving welfare within 5 years of the birth of their first child.

(6) At present, 79 percent of births to teen mothers are out-of-wedlock and nearly 1/2 of all non-marital first births occur to teens.

(7) Children of teen mothers are more likely to be born prematurely and at low birth weight, to perform poorly in school, and to suffer abuse and neglect than children born to older women. Girls born to teen mothers are 22 percent more likely to become teen mothers, and sons of teen mothers are more likely to end up in jail.

(8) Teen mothers are likely to have a second birth relatively soon, about 1/4 of teenage mothers have a second child within 24 months of the first birth, which can further impede the teen mother's ability to finish school or keep a job and to escape poverty.

(9) Teen pregnancy and childbearing costs United States taxpayers at least $7,000,000,000 per year.

(10) Teen marriages are twice as likely to fail as marriages where the woman is at least 25 years old.

(11) Many of the fathers of children born to teen mothers are older. Half of those young men who impregnate a minor teen (under age 18) are 3 or more years older than the young woman. Eight of 10 teen fathers do not marry the mothers of their first children and these absent fathers pay less than $800 annually in child support, often because they are quite poor themselves.

(12) Over 90 percent of both adults and teens believe it is important that teens be given a strong message from society that they should abstain from sex until they are at least out of high school. A substantial majority of both adults and teens also believe that, while teens should not be sexually active, those that are should have access to contraception.

(13) A synthesis of research on the effectiveness of media campaigns in the United States suggests that these campaigns may reduce risky health behaviors by as much as 5 to 10 percent at a very low cost.

(14) There is rigorous evaluation research about a variety of programs that are effective in delaying the onset of sex, improving contraceptive use, or preventing pregnancy among adolescents.

(15) Between 1995 and 2010, the number of girls who are 15 to 19 years old is estimated to increase by 2,200,000. If current fertility rates remain the same, there would be a 26 percent increase in the number of pregnancies and births among teenagers between 1995 and 2010.

TITLE I--REQUIRING WORK

SEC. 101. INCREASE IN WORK PARTICIPATION RATES.

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

(1) by striking `A State' and inserting `Subject to paragraphs (2) and (3), a State';

(2) in the table set forth in paragraph (1)--

(A) in the item relating to fiscal year 2002--

(i) by striking `or thereafter' and inserting `or 2003'; and

(ii) by striking the period; and

(B) by adding at the end the following:

`2004

--55

2005

--60

2006

--65

2007 or thereafter

--70.';

and

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

`(2) CAP ON ANNUAL INCREASE OF MINIMUM PARTICIPATION RATE FOR CERTAIN STATES- In the case of a State for which the minimum participation rate otherwise required by this section for fiscal year 2002 was reduced, as of the date of enactment of the Work and Family Act of 2002, by regulations or otherwise, paragraph (3) shall not apply and the minimum participation rate for such State with respect to fiscal year 2003 or any fiscal year thereafter shall equal the lessor of--

`(A) the rate specified in the table set forth in paragraph (1) for such fiscal year; or

`(B) the minimum participation rate applicable to the State under this section for the preceding fiscal year increased by 20 percentage points.

`(3) MORATORIUM ON INCREASES IN PARTICIPATION RATES IF REDUCTION IN MANDATORY FUNDING FOR CHILD CARE- In the case of a State to which paragraph (2) does not apply, with respect to fiscal year 2003 or any fiscal year thereafter, if the amount appropriated for that fiscal year under subsection (a)(3) of section 418 for making grants under that section to provide child care assistance is less than the amount required to be appropriated for such fiscal year as of the date of enactment of the Work and Family Act of 2002--

`(A) the minimum participation rate otherwise applicable under this section for the preceding fiscal year shall continue to apply to such State for that fiscal year and any succeeding fiscal year until the amount appropriated for the fiscal year under subsection (a)(3) of section 418 is at least equal to the amount required to be so appropriated for that fiscal year (as of such date of enactment); and

`(B) the minimum participation rate for any fiscal year described in subparagraph (A) for which the amount appropriated under subsection (a)(3) of section 418 is restored to an amount that is at least equal to the amount required to be so appropriated for such fiscal year (as of such date of enactment) shall, notwithstanding the rate that would otherwise apply to the State under this section (after the application of such paragraphs), be the minimum participation rate for the preceding fiscal year increased by 5 percentage points.'.

SEC. 102. ELIMINATION OF SEPARATE WORK PARTICIPATION RATE FOR 2-PARENT FAMILIES.

Section 407(b) (42 U.S.C. 607(b)) is amended--

(1) in paragraph (1)(A), by striking `subsection (a)(1)' and inserting `subsection (a)';

(2) by striking paragraph (2);

(3) in paragraph (4), by striking `paragraphs (1)(B) and (2)(B)' and inserting `paragraph (1)(B)';

(4) in paragraph (5), by striking `rates' and inserting `rate'; and

(5) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively.

SEC. 103. CREDITS FOR PURPOSES OF DETERMINING MONTHLY WORK PARTICIPATION RATES.

(a) CREDIT FOR EMPLOYMENT OF FORMER RECIPIENTS- Section 407(b)(1) (42 U.S.C. 607(b)(1)) is amended by adding at the end the following:

`(C) CREDIT FOR EMPLOYMENT OF FORMER RECIPIENTS-

`(i) IN GENERAL- Subject to clause (ii), for purposes of subparagraph (B)(i), a State may count an individual who has ceased to receive assistance under the State program funded under this part and who has earnings from employment with respect to a month as a family engaged in work for that month, not to exceed 12 consecutive months from the date that the individual first received such earnings.

`(ii) LIMITATION- A State may not count an individual described in clause (i) as engaged in work for a month under this subparagraph if the State counts that individual under subparagraph (E) as being engaged in work for such month.

`(iii) DATA COLLECTION- The State agency responsible for administering the State Directory of New Hires established under section 453A, shall provide the State agency responsible for administering the State program funded under this part with access to such directory for purposes of collecting information necessary for the State to obtain credit for the employment of individuals under clause (i).'.

(b) CREDIT FOR BOTH PARENTS MEETING WORK REQUIREMENTS- Section 407(b)(1) (42 U.S.C. 607(b)(1)), as amended by subsection (a), is amended by adding at the end the following:

`(D) CREDIT FOR BOTH PARENTS MEETING WORK REQUIREMENTS- For purposes of subparagraph (B)(i), a State may count a family that includes 2 parents that each are engaged in work for the month as 2 separate families.'.

(c) CREDIT FOR FORMER RECIPIENTS WITH HIGHER EARNINGS- Section 407(b)(1) (42 U.S.C. 607(b)(1)), as amended by subsections (a) and (b), is amended by adding at the end the following:

`(E) CREDIT FOR FORMER RECIPIENTS WITH HIGHER EARNINGS-

`(i) IN GENERAL- Subject to clause (ii), for purposes of subparagraph (B)(i), a State may count a family that includes an individual who has ceased to receive assistance under the State program funded under this part and who has earnings from employment with respect to a month that are equal to at least 50 percent of the average wage in the State (determined on the basis of State unemployment data) as 1 1/2 families.

`(ii) LIMITATIONS- A State may not count an individual described in clause (i) as engaged in work for a month under this subparagraph--

`(I) if the State counts that individual under subparagraph (C) as being engaged in work for such month; or

`(II) for more than 12 consecutive months from the date that the individual first received earnings described in clause (i).'.

(d) PARTIAL CREDIT FOR CERTAIN INDIVIDUALS- Section 407(b)(1) (42 U.S.C. 607(b)(1)), as amended by subsections (a), (b), and (c), is amended by adding at the end the following:

`(G) PARTIAL CREDIT FOR CERTAIN RECIPIENTS-

`(i) IN GENERAL- Subject to clause (ii), for purposes of subparagraph (B)(i), with respect to a month, a State may include a family that includes an individual described in any of the following categories as 1/2 of a family engaged in work for that month:

`(I) NONCUSTODIAL PARENTS RECEIVING EMPLOYMENT SERVICES- A noncustodial parent who receives employment services under any State program, who has a child who receives assistance under the State program funded under this part (or who received such assistance not more than 2 years earlier), and who has an agreement to comply with such parent's child support obligations upon receiving such services, not to exceed 12 consecutive months from the date that the individual first receives such services.

`(II) RECIPIENTS WORKING PART-TIME AND ADDRESSING BARRIERS TO WORK- A recipient who is engaged for a month in a core work activity described in subsection (c)(1)(C)(i) for at least 15 hours per week and engaged for such month in a self-sufficiency work activity described in subsection (c)(1)(C)(ii) for at least an additional 15 hours per week.

`(III) RECIPIENTS OF SUBSTANTIAL CHILD CARE OR TRANSPORTATION ASSISTANCE- A recipient of substantial child care or transportation assistance (as defined by the Secretary, in consultation with directors of State programs funded under this part, which definition shall specify for each type of assistance a threshold which is a dollar value or length of time over which the assistance is received, and shall take account of large one-time transition payments).

`(IV) RECIPIENTS ENGAGED IN HIGHER EDUCATION- A recipient who is engaged for a month in higher education activities for at least 20 hours per week.

`(ii) LIMITATION- Not more than 30 percent of the number of individuals in all families in a State who are subject to work requirements under the State program may consist of families described and counted under clause (i).

`(iii) RULE OF CONSTRUCTION- Nothing in clause (i)(III) shall be construed as making a recipient described in that clause subject to any work requirements imposed under the State program funded under this part.'.

SEC. 104. CHILD SUPPORT COLLECTION CREDIT.

Section 407(a) (42 U.S.C. 607(a)), as amended by section 101, is amended by adding at the end the following:

`(3) CHILD SUPPORT COLLECTION CREDIT- Beginning with fiscal year 2003, the minimum participation rate otherwise applicable to a State under this subsection for a fiscal year shall be reduced by the number of percentage points by which the percentage of cases with child support collections for children in families receiving assistance or formerly received assistance under the State program funded under this part for the preceding fiscal year increased over the percentage of such cases with child support collections for the second preceding fiscal year.'.

SEC. 105. PHASEOUT OF CASELOAD REDUCTION CREDIT.

Section 407(b)(3) (42 U.S.C. 607(b)(3)), as redesignated by section 102(5), is amended by adding at the end the following:

`(C) ELIMINATION OF CREDIT BEGINNING WITH FISCAL YEAR 2006- The minimum participation rate required under this section shall not be reduced due to caseload reductions (including under the regulations required by subparagraph (A)) by more than--

`(i) 50 percent, in the case of fiscal year 2004;

`(ii) 25 percent, in the case of fiscal year 2005; and

`(iii) 0 percent in the case of fiscal year 2006 and each fiscal year thereafter.'.

SEC. 106. REMOVAL OF RECIPIENTS WHO QUALIFY FOR SUPPLEMENTAL SECURITY INCOME BENEFITS FROM WORK PARTICIPATION RATE CALCULATION FOR ENTIRE YEAR.

Section 407(b)(1)(B)(ii) (42 U.S.C. 607(b)(1)(B)(ii)) is amended--

(1) in subclause (I), by inserting `who has not become eligible for supplemental security income benefits under title XVI during the fiscal year' before the semicolon; and

(2) in subclause (II), by inserting `, and that do not include an adult or minor child head of household who has become eligible for supplemental security income benefits under title XVI during the fiscal year' before the period.

SEC. 107. 40-HOUR WORK WEEK.

(a) CORE AND SELF-SUFFICIENCY HOURS- Section 407(c)(1) (42 U.S.C. 607(c)(1)) is amended to read as follows:

`(1) CORE AND SELF-SUFFICIENCY HOURS-

`(A) MINIMUM REQUIREMENTS APPLICABLE TO ALL RECIPIENTS- Subject to subparagraph (D), for purposes of subsection (b)(1)(B)(i), a recipient is engaged in work for a month in a fiscal year if the recipient is participating in core work activities for at least 20 hours per week and in self-sufficiency activities for at least an additional 20 hours per week (as administered and certified by the State).

`(B) CREDIT FOR RECIPIENTS EXCEEDING CORE WORK ACTIVITIES REQUIREMENTS BUT NOT MEETING SELF-SUFFICIENCY ACTIVITIES REQUIREMENTS- Subject to subparagraph (D), for purposes of subsection (b)(1)(B)(i), with respect to a month--

`(i) if a family includes a recipient who is engaged in core work activities for at least 24 hours per week for the month

but not engaged in self-sufficiency activities for the month, the State shall count the family as 60 percent of a family being engaged in work for the month;

`(ii) if a family includes a recipient who is engaged in core work activities for at least 24 hours per week and in self-sufficiency activities for at least 1 but less than 5 hours per week for the month, the State shall count the family as 70 percent of a family being engaged in work for the month;

`(iii) if a family includes a recipient who is engaged in core work activities for at least 24 hours per week and in self-sufficiency activities for at least 5 but less than 9 hours per week for the month, the State shall count the family as 80 percent of a family being engaged in work for the month;

`(iv) if a family includes a recipient who is engaged in core work activities for at least 24 hours per week and in self-sufficiency activities for at least 9 but less than 13 hours per week for the month, the State shall count the family as 90 percent of a family being engaged in work for the month;

`(v) if a family includes a recipient who is engaged in core work activities for at least 24 hours per week and in self-sufficiency activities for at least 13 but less than 16 hours per week for the month, the State shall count the family as a family being engaged in work for the month; and

`(vi) if a family includes a recipient who is engaged in core work activities for at least 24 hours per week and in self-sufficiency activities for at least 16 hours per week for the month, the State shall count the family as 1 1/4 families being engaged in work for the month.

`(C) DEFINITIONS- In this section:

`(i) CORE WORK ACTIVITIES- The term `core work activities' means 1 or more activities described in paragraphs (1) through (9) of subsection (d).

`(ii) SELF-SUFFICIENCY ACTIVITIES- The term `self-sufficiency activities' means 1 or more activities described in paragraphs (1) through (13) of subsection (d).

`(D) LIMITATION ON APPLICABILITY- With respect to fiscal year 2003 or any fiscal year thereafter, if the amount appropriated for that fiscal year under subsection (a)(3) of section 418 for making grants under that section to provide child care assistance is less than the amount required to be appropriated for such fiscal year as of the date of enactment of the Work and Family Act of 2002, this paragraph shall be applied without regard to the amendments made by section 107(a) of the Work and Family Act of 2002, and shall continue to be so applied until the amount appropriated for the fiscal year under subsection (a)(3) of section 418 is at least equal to the amount required to be so appropriated for that fiscal year, as of such date of enactment.'.

(b) WORK ACTIVITIES-

(1) MODIFICATIONS OF LIMITATIONS ON ACTIVITIES- Section 407(d) (42 U.S.C. 607(d)) is amended--

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

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

(C) by adding at the end the following:

`(13) any activity that the State--

`(A) determines is reasonably related to--

`(i) providing assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;

`(ii) ending the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;

`(iii) preventing and reducing the incidence of out-of-wedlock pregnancies and establishing annual numerical goals for preventing and reducing the incidence of these pregnancies; or

`(iv) encouraging the formation and maintenance of 2-parent families; or

`(B) certifies as achieving 1 or more purposes described in subparagraph (A), such as (but not limited to) language acquisition skills, including participation in an English as a second language program, education and training (including postsecondary education), substance abuse treatment, the receipt of mental health services, or the acquisition of child development and parenting skills.'.

(2) RECIPIENTS CONSIDERED TO BE FULL-TIME EMPLOYEES BY THEIR EMPLOYER- Section 407(c)(2) (42 U.S.C. 607(c)(2)) is amended by adding at the end the following:

`(E) RECIPIENTS CONSIDERED TO BE FULL-TIME EMPLOYEES BY THEIR EMPLOYER- For purposes of determining monthly participation rates under subsection (b)(1)(B)(i), a recipient whose private sector employer certifies that the recipient's hours of work satisfy the employer's requirements applicable to the employer's other employees for being a full-time employee, and that the recipient is considered to be a full-time employee of the employer, is deemed to be engaged in work for a month.'.

(3) SINGLE PARENT OR RELATIVE WITH CHILD UNDER AGE 6- Section 407(c)(2)(B) (42 U.S.C. 607(c)(2)(B)) is amended--

(A) in the subparagraph heading, by striking `IN WORK' each place it appears and inserting `IN CORE WORK ACTIVITIES'; and

(B) by striking `in work' and inserting `in core work activities'.

(4) ELIMINATION OF RECIPIENTS COMPLETING SECONDARY SCHOOL FROM LIMIT ON NUMBER OF TANF RECIPIENTS PARTICIPATING IN VOCATIONAL EDUCATIONAL TRAINING; OPTION TO PERMIT UP TO HALF OF VOCATIONAL EDUCATIONAL TRAINING CASELOAD TO CONTINUE FOR UP TO 24 MONTHS-

(A) IN GENERAL- Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is amended to read as follows:

`(D) LIMITATION ON NUMBER OF PERSONS WHO MAY BE TREATED AS ENGAGED IN WORK BY REASON OF PARTICIPATION IN VOCATIONAL EDUCATIONAL ACTIVITIES-

`(i) IN GENERAL- For purposes of determining monthly participation rates under subsection (b)(1)(B)(i), not more than 30 percent of the number of individuals in all families in a State who are treated as engaged in work for a month may consist of individuals who are determined to be engaged in work for the month by reason of participation in vocational educational training.

`(ii) OPTION TO PERMIT 1/2 OF CERTAIN INDIVIDUALS PARTICIPATING IN VOCATIONAL EDUCATIONAL ACTIVITIES TO CONTINUE TRAINING FOR UP TO 24 MONTHS- Notwithstanding subsection (d)(8), a State may--

`(I) permit not more than 1/2 of the number of individuals in all families in a State who are treated as engaged in work for the month under clause (i) by reason of participation in vocational educational training to participate in such training for up to 24 months if the State certifies that each such individual is pursuing a certificate or degree that is likely to result if the individual is allowed to participate in such training; and

`(II) treat such individuals as being engaged in work for a month for purposes of subsection (b)(1)(B)(i).'.

(B) CONFORMING AMENDMENTS-

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

(ii) Section 407(d)(8) (42 U.S.C. 607(d)(8)) is amended by striking `not' and inserting `subject to subsection (c)(2)(D)(ii), not'.

SEC. 108. INCREASE IN MANDATORY FUNDING FOR CHILD CARE.

Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amended--

(1) by striking `and' at the end of subparagraph (E);

(2) by striking the period at the end of subparagraph (F) and inserting a semicolon; and

(3) by adding at the end the following:

`(G) $3,717,000,000 for fiscal year 2003;

`(H) $4,117,000,000 for fiscal year 2004;

`(I) $4,417,000,000 for fiscal year 2005;

`(J) $4,617,000,000 for fiscal year 2006; and

`(K) $4,717,000,000 for fiscal year 2007.'.

SEC. 109. STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMPTION FOR INDIVIDUALS OVERCOMING BARRIERS TO WORK.

(a) IN GENERAL- Section 407(b) (42 U.S.C. 607(b)), as amended by section 102, is amended by adding at the end the following:

`(5) STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMPTION FOR INDIVIDUALS OVERCOMING BARRIERS TO WORK- A State may, at its option, not require an individual who is addressing a barrier to work such as substance abuse, a mental health disorder, depression, having experienced domestic violence (as defined in section 402(a)(7)(B)), or being in need of significant job training, to engage in work, and may disregard such an individual in determining the participation rate under subsection (a), for not more than 3 months during any 24-month period.'.

(b) CONFORMING AMENDMENT- Paragraph (4) of section 407(b) (42 U.S.C. 607(b)), as redesignated by section 102(5), is amended in the paragraph heading by striking `EXEMPTIONS' and inserting `EXEMPTION FOR SINGLE CUSTODIAL PARENT WITH AN INFANT'.

SEC. 110. COMPETITIVE GRANTS FOR PUBLIC-PRIVATE PARTNERSHIPS FOR EDUCATIONAL OPPORTUNITIES FOR CAREER ADVANCEMENT; STATE OPTION TO ESTABLISH PARENTS AS SCHOLARS PROGRAM.

(a) COMPETITIVE GRANTS FOR PUBLIC-PRIVATE PARTNERSHIPS FOR EDUCATIONAL OPPORTUNITIES FOR CAREER ADVANCEMENT-

(1) AUTHORITY TO AWARD GRANTS-

(A) IN GENERAL- The Secretary of Health and Human Services and the Secretary of Labor (in this subsection referred to as the `Secretaries') jointly shall award grants in accordance with the requirements of this subsection for each fiscal year for which an amount is appropriated to carry out this subsection for projects proposed by eligible applicants to encourage the formation of public-private partnerships to provide educational opportunities for individuals who receive assistance under the temporary assistance to needy families program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and for individuals who have ceased to receive assistance under that program.

(B) CRITERIA- The Secretaries shall award grants under this subsection based on the following:

(i) The potential effectiveness of the proposed project in carrying out the activities described in paragraph (5).

(ii) Evidence of the ability of the eligible applicant to leverage private, State, and local resources to carry out such activities.

(iii) Evidence of the ability of the eligible applicant to coordinate with other organizations at the State and local level in carrying out such activities.

(2) DEFINITION OF ELIGIBLE APPLICANT- In this subsection, the term `eligible applicant' means--

(A) a public educational institution;

(B) an employer; or

(C) a local or regional consortium that includes employers or employer associations, education and training providers, local chambers of commerce, or providers of social services.

(3) APPLICATION- Each eligible applicant desiring a grant under this subsection shall submit an application to the Secretaries at such time, in such manner, and that includes--

(A) evidence, including letters of support, demonstrating that the applicant will work with the State in carrying out the activities described in paragraph (5); and

(B) such other information as the Secretaries may reasonably require.

(4) DETERMINATION OF AMOUNT OF GRANTS; AVAILABILITY OF FUNDS-

(A) IN GENERAL- In determining the appropriate amount of a grant to be awarded under this subsection, the Secretaries shall provide an eligible applicant with an approved application an amount sufficient to ensure that the project has a reasonable opportunity to be successful, taking into account--

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

(ii) the job opportunities and job growth in the area to be served by the project;

(iii) the poverty rate for such area; and

(iv) such other factors as the Secretaries deem appropriate.

(B) MAXIMUM AMOUNT- No eligible applicant shall receive a grant of more than $5,000,000 per year.

(C) AVAILABILITY OF FUNDS- Funds provided under a grant awarded under this subsection for a fiscal year shall remain available for use by the eligible applicant through the end of the succeeding fiscal year.

(5) USE OF FUNDS- An eligible applicant awarded a grant under this subsection shall enter into an agreement with the State or local agency responsible for administering the temporary assistance to needy families program in the area where the eligible applicant is located to provide individuals described in paragraph (1) with--

(A) educational credits or opportunities based upon the length of the individual's employment;

(B) educational credits or opportunities based upon the individual's commitment to becoming employed; or

(C) education and training opportunities for career advancement.

(6) REPORTS-

(A) PROJECT REPORTS- Each eligible applicant awarded a grant under this subsection shall submit to the Secretaries such information and data regarding the recipients participating in the project funded under such grant and outcomes for such recipients as the Secretaries may require.

(B) REPORT TO CONGRESS- The Secretaries shall submit annual reports to Congress on the information and data submitted under subparagraph (A).

(b) GRANTS TO ESTABLISH PARENTS AS SCHOLARS PROGRAMS-

(1) IN GENERAL- The Secretary of Health and Human Services may award grants to States to establish a parents as scholars program under which an eligible participant may be provided support services described in paragraph (4) based on the participant's need in order to complete the program.

(2) DEFINITION OF ELIGIBLE PARTICIPANT-

(A) IN GENERAL- In this subsection, the term `eligible participant' means an individual who receives assistance under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and satisfies the following requirements:

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

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

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

(iv) The individual is--

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

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

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

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

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

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

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

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

(II) attends classes as scheduled;

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

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

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

(B) DEFINITION OF FULL-TIME STUDENT-

(i) IN GENERAL- For purposes of subparagraph (A)(i), an individual shall be considered a full-time student if such individual is taking courses having the number of hours needed under the requirements of the educational institution in which the individual is enrolled, to complete the requirements of a degree within the usual timeframe of 2 or 4 years, as applicable.

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

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

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

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

(B) Transportation services, including--

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

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

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

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

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

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section--

(1) $25,000,000 for each of fiscal years 2003 through 2007, to carry out the grant program established under subsection (a); and

(2) $25,000,000 for each of fiscal years 2003 through 2007, to carry out the grant program established under subsection (b).

SEC. 111. TRANSITIONAL JOBS PROGRAMS.

Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end the following:

`(6) TRANSITIONAL JOBS GRANTS-

`(A) PURPOSE- The purpose of this paragraph is to provide funding so that States and localities can create and expand transitional jobs programs that--

`(i) combine time-limited employment that is subsidized with public funds, with skill development and barrier removal activities, pursuant to an individualized plan;

`(ii) provide job development and placement assistance to individual program participants to help them move from subsidized employment in transitional jobs into unsubsidized employment, as well as retention services after the transition to unsubsidized employment; and

`(iii) serve recipients of assistance under the State program funded under this part and other low-income individuals who have been unable to secure employment through job search or other employment-related services because of limited skills, experience, or other barriers to employment.

`(B) LIMITATIONS ON USE OF FUNDS-

`(i) ALLOWABLE ACTIVITIES- An entity to which funds are provided under this paragraph shall use the funds to operate transitional jobs programs consistent with the following:

`(I) An entity which secures a grant to operate a transitional jobs program (in this subparagraph referred to as a `program operator'), under this paragraph shall place eligible individuals in temporary, publicly subsidized jobs. Individuals placed in such jobs shall perform work directly for the program operator, or at other public and nonprofit organizations (in this subparagraph referred to as `worksite employers') within the community. Funds provided under this paragraph shall be used to subsidize 100 percent of the wages paid to program participants as well as employer-paid payroll costs for such participants.

`(II) Transitional jobs programs shall provide paid employment for not less than 30, nor more than 40 hours per week, except that a parent with a child under the age of 6, a child who is disabled, or a child with other special needs, or an individual who for other reasons cannot successfully participate for 30 to 40 hours per week, may, at State discretion, be allowed to participate for more limited hours, but not less than 20 hours per week.

`(III) Program operators shall provide case management services and ensure that appropriate education, training, and other services are available to program participants consistent with an individual plan developed for each such participant.

`(IV) Program operators shall provide job placement assistance to help program participants obtain unsubsidized employment, and shall provide retention services for 12 months after entry into unsubsidized employment.

`(V) In any work week in which a program participant is employed at least 30 hours, not less than 20 percent, nor more than 50 percent of scheduled hours shall involve participation in education or training activities designed to improve the participant's employability and potential earnings, or other services designed to reduce or eliminate any barriers that may impede the participant's ability to secure unsubsidized employment.

`(VI) The maximum duration of any placement in a transitional jobs program shall not be less than 6 months, nor more than 24 months. Nothing in this subclause shall be construed to bar a program participant from moving into unsubsidized employment at a point prior to the maximum duration of the program. States may approve programs of varying durations consistent with this subclause.

`(VII) Program participants shall be paid at the rate paid to unsubsidized employees of the worksite employer (or program operator where work is performed directly for the program operator) who perform comparable work at the worksite where the individual is placed. If no other employees perform the same or comparable work then wages shall be set, at a minimum, at 50 percent of the Lower Living Standard Income Level (in this subparagraph referred to as the `LLSIL'), as specified in section 101(24) of the Workforce Investment Act of 1998, for a family of 3 based on 35 hours per week.

`(VIII) Program participants shall receive supervision from the worksite employer or program operator consistent with the goal of addressing the limited work experience and skills of program participants.

`(ii) CONSULTATION- An application submitted by an entity seeking to become a program operator shall include an assurance by the applicant that the transitional jobs program carried out by the applicant shall--

`(I) provide in the design, recruitment, and operation of the program for broad-based input from the community served and potential participants in the program and community-based agencies with a demonstrated record of experience in providing services, prospective worksite employers, local labor organizations representing employees of prospective worksite employers, if these entities exist in the area to be served by the program, and employers, and membership-based groups that represent low-income individuals; and

`(II) prior to the placement of program participants, consult with the appropriate local labor organization, if any, representing employees in the area who are engaged in the same or similar work as that proposed to be carried out by such program.

`(iii) ELIGIBILITY FOR OTHER WORK SUPPORTS- Program participants shall be eligible for subsidized child care, transportation assistance, and other needed support services on the same basis as other recipients of cash assistance under the State program funded under this part.

`(iv) WAGES NOT CONSIDERED ASSISTANCE- Wages paid to program participants shall not be considered to be assistance for purposes of section 408(a)(7).

`(v) PRIVATE SECTOR PLACEMENTS- Not more than 50 percent of the total number of such participants in transitional jobs in a State at any time may be placed at worksite employers which are private, for-profit entities.

`(C) GENERAL ELIGIBILITY-

`(i) IN GENERAL- Not less than 2/3 of the participants in a transitional jobs program funded under a grant made under this paragraph during a fiscal year shall be individuals who are, at the time they enter the program--

`(I) receiving assistance under the State program funded under this part;

`(II) not receiving assistance under the State program funded under this part, but who are unemployed, and who were recipients of such assistance within the immediately preceding 12-month period;

`(III) custodial parents of a minor child who meet the financial eligibility criteria for assistance under the State program funded under this part; or

`(IV) noncustodial parents with income below 150 percent of the poverty line (as defined in section 673(2) of the Omnibus Budget Reconciliation Act of 1981, including any revision required by such section, applicable to a family of the size involved).

`(ii) LIMITATION- Not more than 1/3 of all participants in a transitional jobs

program funded under this paragraph during a fiscal year shall be individuals who have attained at least age 18 with an income below 150 percent of the poverty line (as defined in section 673(2) of the Omnibus Budget Reconciliation Act of 1981, including any revision required by such section, applicable to a family of the size involved) who are not eligible under clause (i). An individual who is an ex-offender shall be eligible to participate in a transitional jobs program funded under this paragraph.

`(iii) METHODOLOGY- The Secretary may use any reasonable methodology in calculating whether program participants satisfying the requirements of clause (i), constitute 2/3 or more of all participants, and whether program participants satisfying the requirements of clause (ii) constitute not more than 1/3 of all such participants in a fiscal year.

`(iv) AUTHORITY TO PROVIDE WORK-RELATED SERVICES TO INDIVIDUALS WHO HAVE REACHED THE 5-YEAR LIMIT- A program operator under this paragraph may use the funds to provide transitional job program participation to individuals who, but for section 408(a)(7), would be eligible for assistance under the program funded under this part of the State in which the program operator is located.

`(D) RELATIONSHIP TO OTHER PROVISIONS OF THIS PART-

`(i) RULES GOVERNING USE OF FUNDS- The provisions of section 404 (other than subsection (f) thereof) shall not apply to a grant made under this paragraph.

`(ii) ADMINISTRATION- Section 416 shall not apply to the programs under this paragraph.

`(iii) PROHIBITION AGAINST USE OF GRANT FUNDS FOR ANY OTHER FUND MATCHING REQUIREMENT- An entity to which funds are provided under this paragraph shall not use any part of the funds to fulfill any obligation of any State or political subdivision under subsection (b) or section 418 or any other provision of this Act or other Federal law.

`(iv) DEADLINE FOR EXPENDITURE- An entity to which funds are provided under this paragraph shall remit to the Secretary of Labor any part of the funds that are not expended within 3 years after the date on which the funds are so provided.

`(v) REGULATIONS- Within 90 days after the date of enactment of this paragraph, the Secretary of Labor, after consultation with the Secretary of Health and Human Services, shall prescribe such regulations as may be necessary to implement this paragraph.

`(vi) REPORTING REQUIREMENTS- The Secretary of Labor, in consultation with the Secretary of Health and Human Services, shall establish requirements for the collection and maintenance of financial and program participant information and the reporting of such information by entities carrying out activities under this paragraph. Such reporting requirements shall include, at a minimum, that States report disaggregated data on individual program participants that include the following:

`(I) Demographic information about the program participant including education level, literacy level, and prior work experience.

`(II) Identity of the program operator that provides or provided services to the program participant, and the duration of participation.

`(III) The nature of education, training or other services received by the program participant.

`(IV) Reasons for the program participant's leaving the program.

`(V) Whether the program participant secured unsubsidized employment during or within 60 days after the employment of the participant in a transitional job, and if so, details about the participant's unsubsidized employment including industry, occupation, starting wages and hours, and availability of employer sponsored health insurance and sick and vacation leave.

`(vii) ADDITIONAL REPORTING REQUIREMENTS- States shall collect and report followup data for a sampling of program participants reflecting their employment and earning status 12 months after entering unsubsidized employment.

`(E) NATIONAL COMPETITIVE GRANTS-

`(i) IN GENERAL- The Secretary of Labor shall award grants in accordance with this paragraph, in fiscal years 2003 through 2007, for transitional jobs programs proposed by eligible applicants, based on the following:

`(I) The extent to which the proposal seeks to provide services in multiple sites that include sites in more than 1 State.

`(II) The extent to which the proposal seeks to provide services in a labor market area or region that includes portions of more than 1 State.

`(III) The extent to which the proposal seeks to provide transitional jobs in a State.

`(IV) The extent to which the applicant proposes to provide transitional jobs in either rural areas or areas where there are a high concentration of residents with income that is less than the poverty line.

`(V) The effectiveness of the proposal in helping individuals who are least job ready move into unsubsidized jobs that provide pathways to stable employment and livable wages.

`(ii) ELIGIBLE APPLICANTS- In this paragraph, the term `eligible applicant' means--

`(I) a Workforce Investment Board for a local workforce area in a State;

`(II) a political subdivision of a State;

`(III) a State;

`(IV) an Indian tribe; or

`(V) a private entity.

`(iii) FUNDING- Subject to subparagraphs (F) and (G), of the amount appropriated in subparagraph (H) for a fiscal year, $25,000,000 of such amount shall be used to make grants under this paragraph for that fiscal year.

`(F) FUNDING FOR INDIAN TRIBES- 1.5 percent of the amount appropriated in subparagraph (H) for each fiscal year shall be reserved for grants to Indian tribes.

`(G) FUNDING FOR EVALUATIONS OF TRANSITIONAL JOBS PROGRAMS- 1.5 percent of the amount appropriated in subparagraph (H) for each fiscal year shall be reserved for use by the Secretary to carry out subparagraph (I).

`(H) APPROPRIATIONS-

`(i) IN GENERAL- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for grants under this paragraph, $25,000,000 for each of fiscal years 2003 through 2007.

`(ii) AVAILABILITY- The amounts made available pursuant to clause (i) shall remain available for such period as is necessary to make the grants provided for in this paragraph.

`(I) EVALUATION OF TRANSITIONAL JOBS PROGRAMS- The Secretary, in consultation with the Secretary of Labor--

`(i) shall develop a plan to evaluate the extent to which transitional jobs programs funded under this paragraph have been effective in promoting sustained, unsubsidized employment for each group of eligible participants;

`(ii) may evaluate the use of such grants by such grantees/ as the Secretary deems appropriate, in accordance with an agreement entered into with the grantees after good-faith negotiations; and

`(iii) should include the following outcome measures in the plan developed under clause (i):

`(I) Placements in unsubsidized employment.

`(II) Placements in unsubsidized employment that last for at least 12 months, and the extent to which individuals are employed continuously for at least 12 months.

`(III) Earnings of individuals who obtain employment at the time of placement.

`(IV) Earnings of individuals 1 year after placement.

`(V) The occupations and industries in which wage growth and retention performance is greatest.

`(VI) Average expenditures per participant.'.

SEC. 112. ENSURING TANF FUNDS ARE NOT USED TO DISPLACE PUBLIC EMPLOYEES; APPLICATION OF WORKPLACE LAWS TO WELFARE RECIPIENTS.

(a) WELFARE-TO-WORK WORKER PROTECTIONS-

(1) IN GENERAL- Section 403(a)(5)(I) (42 U.S.C. 603(a)(5)(I)) is amended--

(A) by striking clauses (i) and (iv);

(B) by redesignating clauses (v) and (vi) as clauses (iv) and (v), respectively; and

(C) by inserting before clause (ii), the following:

`(i) NONDISPLACEMENT-

`(I) IN GENERAL- An adult in a family receiving assistance under a State program funded under this part, in order to engage in a work activity, shall not displace any employee or position (including partial displacement, such as a reduction in the hours of nonovertime work, wages, or employment benefits) or fill any unfilled vacancy.

`(II) PROHIBITIONS- A work activity engaged in under a program operated with funds provided under this paragraph shall not impair any existing contract for services, be inconsistent with any existing law, regulation, or collective bargaining agreement, or infringe upon the recall rights or promotional opportunities of any worker.

`(III) NO SUPPLANTING OF OTHER HIRES- A work activity engaged in under a program operated with funds provided under this paragraph shall be in addition to any activity that otherwise would be available and shall not supplant the hiring of an employed worker not funded under such program.

`(IV) ENFORCING ANTIDISPLACEMENT PROTECTIONS-

`(aa) IN GENERAL- The State shall establish and maintain an impartial grievance procedure to resolve any complaints alleging violations of the requirements of subclause (I), (II), or (III) within 60 days of receipt of the complaint and, if a decision is adverse to the party who filed such grievance or no decision has been reached, provide for the completion of an arbitration procedure within 75 days of receipt of the complaint or the adverse decision or conclusion of the 60-day period, whichever is earlier.

`(bb) APPEALS- Appeals may be made to the Secretary who shall make a decision within 75 days.

`(cc) REMEDIES- Remedies for a violation of the requirements of subclause (I), (II), or (III) shall include termination or suspension of payments, prohibition of the placement of the participant, reinstatement of an employee, and other relief to make an aggrieved employee whole.

`(dd) LIMITATION ON PLACEMENT- If a grievance is filed regarding a proposed placement of a participant, such placement shall not be made unless such placement is consistent with the resolution of the grievance pursuant to this subclause.'.

(2) STATE PLAN REQUIREMENT- Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the following:

`(vii) In the case of a State that receives a welfare-to-work grant under section 403(a)(5), ensure compliance with the

nondisplacement requirements of subparagraph (I)(i) of that section.'.

(b) APPLICATION OF WORKPLACE LAWS TO WELFARE RECIPIENTS- Notwithstanding any other provision of law, workplace laws, including the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), the Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.), title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), and the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), shall apply to an individual who is a recipient of assistance under the temporary assistance to needy families program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) in the same manner as such laws apply to other workers. The fact that an individual who is a recipient of assistance under the temporary assistance to needy families program is participating in, or seeking to participate in work activities under that program in satisfaction of the work activity requirements of the program, shall not deprive the individual of the protection of any Federal, State, or local workplace law.

TITLE II--STRENGTHENING FAMILIES

Subtitle A--Responsible Fatherhood

SEC. 201. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.

(a) IN GENERAL- Part D of title IV (42 U.S.C. 651 et seq.) is amended by adding at the end the following:

`SEC. 469C. BLOCK GRANTS TO STATES FOR MEDIA CAMPAIGNS PROMOTING RESPONSIBLE FATHERHOOD.

`(a) DEFINITIONS- In this section:

`(1) BROADCAST ADVERTISEMENT- The term `broadcast advertisement' means a communication intended to be aired by a television or radio broadcast station, including a communication intended to be transmitted through a cable channel.

`(2) CHILD AT RISK- The term `child at risk' means each young child whose family income does not exceed the poverty line.

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

`(4) PRINTED OR OTHER ADVERTISEMENT- The term `printed or other advertisement' includes any communication intended to be distributed through a newspaper, magazine, outdoor advertising facility, mailing, or any other type of general public advertising, but does not include any broadcast advertisement.

`(5) STATE- The term `State' means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

`(6) YOUNG CHILD- The term `young child' means an individual under age 5.

`(b) STATE CERTIFICATIONS- Not later than October 1 each fiscal year for which a State desires to receive an allotment under this section, the chief executive officer of the State shall submit to the Secretary a certification that the State will--

`(1) use such funds to promote the formation and maintenance of married 2-parent families, strengthen fragile families, and promote responsible fatherhood through media campaigns conducted in accordance with the requirements of subsection (d);

`(2) return any unused funds to the Secretary in accordance with the reconciliation process under subsection (e); and

`(3) comply with the reporting requirements under subsection (f).

`(c) PAYMENTS TO STATES- For each of fiscal years 2003 through 2007, the Secretary shall pay to each State that submits a certification under subsection (b), from any funds appropriated under subsection (h), for the fiscal year an amount equal to the amount of the allotment determined for the fiscal year under subsection (g).

`(d) ESTABLISHMENT OF MEDIA CAMPAIGNS- Each State receiving an allotment under this section for a fiscal year shall use the allotment to conduct media campaigns as follows:

`(1) CONDUCT OF MEDIA CAMPAIGNS-

`(A) RADIO AND TELEVISION MEDIA CAMPAIGNS-

`(i) PRODUCTION OF BROADCAST ADVERTISEMENTS- At the option of the State, to produce broadcast advertisements that promote the formation and maintenance of married 2-parent families, strengthen fragile families, and promote responsible fatherhood.

`(ii) AIR TIME CHALLENGE PROGRAM- At the option of the State, to establish an air time challenge program under which the State may spend amounts allotted under this section to purchase time from a broadcast station to air a broadcast advertisement produced under clause (i), but only if the State obtains an amount of time of the same class and during a comparable period to air the advertisement using non-Federal contributions.

`(B) OTHER MEDIA CAMPAIGNS- At the option of the State, to conduct a media campaign that consists of the production and distribution of printed or other advertisements that promote the formation and maintenance of married 2-parent families, strengthen fragile families, and promote responsible fatherhood.

`(2) ADMINISTRATION OF MEDIA CAMPAIGNS- A State may administer media campaigns funded under this section directly or through grants, contracts, or cooperative agreements with public agencies, local governments, or private entities, including charitable and religious organizations.

`(3) CONSULTATION WITH DOMESTIC VIOLENCE ASSISTANCE CENTERS- In developing broadcast and printed advertisements to be used in the media campaigns conducted under paragraph (1), the State or other entity administering the campaign shall consult with representatives of State and local domestic violence centers.

`(4) NON-FEDERAL CONTRIBUTIONS- In this subsection, the term `non-Federal contributions' includes contributions by the State and by public and private entities. Such contributions may be in cash or in kind. Such term does not include any amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government, or any amount expended by a State before October 1, 2002.

`(e) RECONCILIATION PROCESS-

`(1) 3-YEAR AVAILABILITY OF AMOUNTS ALLOTTED- Each State that receives an allotment under this section shall return to the Secretary any unused portion of the amount allotted to a State under this section for a fiscal year not later than the last day of the second succeeding fiscal year together with any earnings on such unused portion.

`(2) PROCEDURE FOR REDISTRIBUTION OF UNUSED ALLOTMENTS- The Secretary shall establish an appropriate procedure for redistributing to States that have expended the entire amount allotted under this section any amount that is--

`(A) returned to the Secretary by States under paragraph (1); or

`(B) not allotted to a State under this section because the State did not submit a certification under subsection (b) by October 1 of a fiscal year.

`(f) REPORTING REQUIREMENTS-

`(1) MONITORING AND EVALUATION- Each State receiving an allotment under this section for a fiscal year shall monitor and evaluate the media campaigns conducted using funds made available under this section in such manner as the Secretary, in consultation with the States, determines appropriate.

`(2) ANNUAL REPORTS- Not less frequently than annually, each State receiving an allotment under this section for a fiscal year shall submit to the Secretary reports on the media campaigns conducted under this section at such time, in such manner, and containing such information as the Secretary may require.

`(g) AMOUNT OF ALLOTMENTS-

`(1) IN GENERAL- Except as provided in paragraph (2), of the amount appropriated for the purpose of making allotments under this section for a fiscal year, the Secretary shall allot to each State that submits a certification under subsection (b) for the fiscal year an amount equal to the sum of--

`(A) the amount that bears the same ratio to 50 percent of such funds as the number of young children in the State (as determined by the Secretary based on the most reliable data available) as bears to the number of such children in all States; and

`(B) the amount that bears the same ratio to 50 percent of such funds as the number of children at risk in the State (as so determined) bears to the number of such children in all States.

`(2) MINIMUM ALLOTMENTS- No allotment for a fiscal year under this section shall be less than--

`(A) in the case of a State other than the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, 1 percent of the amount appropriated for the fiscal year under subsection (h); and

`(B) in the case of the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, 0.5 percent of such amount.

`(3) PRO RATA REDUCTIONS- The Secretary shall make such pro rata reductions to the allotments determined under paragraph (1) as are necessary to comply with the requirements of paragraph (2).

`(h) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated $25,000,000 for each of fiscal years 2003 through 2007 for purposes of making allotments to States under this section.'.

(b) EVALUATION-

(1) IN GENERAL- The Secretary of Health and Human Services shall conduct an evaluation of the impact of the media campaigns funded under section 469C of the Social Security Act, as added by subsection (a).

(2) REPORT- Not later than December 31, 2005, the Secretary of Health and Human Services shall report to Congress the results of the evaluation under paragraph (1).

(3) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated $1,000,000 for fiscal year 2003 for purposes of conducting the evaluation required under this subsection, to remain available until expended.

SEC. 202. RESPONSIBLE FATHERHOOD BLOCK GRANT.

(a) IN GENERAL- Part D of title IV (42 U.S.C. 651 et seq.), as amended by section 201, is amended by adding at the end the following:

`SEC. 469D. RESPONSIBLE FATHERHOOD BLOCK GRANT.

`(a) DEFINITIONS- In this section:

`(1) CHILD AT RISK- The term `child at risk' has the meaning given such term in section 469C(a)(2).

`(2) POVERTY LINE- The term `poverty line' has the meaning given such term in section 469C(a)(3).

`(3) STATE- The term `State' has the meaning given such term in section 469C(a)(5).

`(4) YOUNG CHILD- The term `young child' has the meaning given such term in section 469C(a)(6).

`(b) STATE CERTIFICATIONS- Not later than October 1 of each fiscal year for which a State desires to receive an allotment under this section, the chief executive officer of the State shall submit to the Secretary a certification that the State will--

`(1) comply with the matching requirements under subsection (c)(2);

`(2) use such funds--

`(A) to promote responsible fatherhood; and

`(B) to promote or sustain marriage in accordance with subparagraph (A) or (B), respectively, of subsection (d)(2);

`(3) return any unused funds to the Secretary in accordance with the reconciliation process under subsection (e); and

`(4) comply with the reporting requirements under subsection (f).

`(c) PAYMENTS TO STATES-

`(1) IN GENERAL- Subject to paragraph (2), for each of fiscal years 2003 through 2007, the Secretary shall pay to each State that submits a certification described in subsection (b), from any funds appropriated under subsection (h), for the fiscal year an amount equal to the amount of the allotment determined under subsection (g).

`(2) MATCHING REQUIREMENT- The Secretary may not make a payment to a State under paragraph (1) unless the State agrees that, with respect to the costs to be incurred by the State in supporting the programs described in subsection (d), the State will make available non-Federal contributions in an amount equal to 25 percent of the amount of Federal funds paid to the State under such paragraph.

`(3) NON-FEDERAL CONTRIBUTIONS- In this subsection, the term `non-Federal contributions' includes contributions by the State and by public and private entities that may be in cash or in kind, but does not include any amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government or any amount expended by a State before October 1, 2002.

`(d) RESPONSIBLE FATHERHOOD PROGRAMS-

`(1) SUPPORT OF PROGRAMS- A State shall use the allotments received under this section to

support programs described in paragraph (2) directly or through a grant, contract, or cooperative agreement with any public agency, local government, or private entity (including any charitable or religious organization) with experience in administering such a program.

`(2) PROGRAMS DESCRIBED- Responsible fatherhood programs include programs that--

`(A) promote marriage through such activities as counseling, mentoring, disseminating information about the benefits of marriage and 2-parent involvement for children, enhancing relationship skills, teaching on how to control aggressive behavior, and disseminating information on the causes of domestic violence and child abuse;

`(B) sustain marriages through marriage preparation programs, premarital counseling, marital inventories, skills-based marriage education, financial planning seminars, and divorce education and reduction programs, including mediation and counseling;

`(C) promote responsible parenting through such activities as counseling, mentoring, disseminating information about good parenting practices, skills-based parenting education, encouraging child support payments, and other methods; and

`(D) help fathers and their families avoid or leave cash welfare and improve their economic status by providing such activities as work first services, job search, job training, subsidized employment, job retention, job enhancement, and encouraging education, including career-advancing education, dissemination of employment materials, coordination with existing employment services such as Welfare to Work and referrals to local employment training initiatives, and other methods.

`(3) TARGETED LOW-INCOME PARTICIPANTS- Not less than 50 percent of the participants in each program supported under paragraph (1) shall be--

`(A) parents of a child who is, or within the past 24 months has been, a recipient of assistance or services under a State program funded under this part and under a State program funded under part A; or

`(B) parents, including an expectant parent or a married parent, whose income (after adjustment for court-ordered child support paid or received) does not exceed 150 percent of the poverty line.

`(4) CONSULTATION WITH DOMESTIC VIOLENCE ASSISTANCE CENTERS- Each State or entity administering a program supported under paragraph (1) shall consult with representatives of State and local domestic violence centers.

`(5) SUPPLEMENT NOT SUPPLANT- Amounts allotted to a State under this section shall be used to supplement and not supplant other Federal, State, or local funds provided to the State under this part or any other provision of law that are used to support programs and activities similar to the responsible fatherhood program described in paragraph (2).

`(6) RESTRICTIONS ON USE- No amount allotted under this section may be used for court proceedings on matters of child visitation or child custody, or for legislative advocacy.

`(e) RECONCILIATION PROCESS-

`(1) 3-YEAR AVAILABILITY OF AMOUNTS ALLOTTED- Each State that receives an allotment under this section shall return to the Secretary any unused portion of the amount allotted to a State under this section for a fiscal year not later than the last day of the second succeeding fiscal year, together with any earnings on such unused portion.

`(2) PROCEDURE FOR REDISTRIBUTION OF UNUSED ALLOTMENTS- The Secretary shall establish an appropriate procedure for redistributing to States that have expended the entire amount allotted under this section any amount that is--

`(A) returned to the Secretary by States under paragraph (1); or

`(B) not allotted to a State under this section because the State did not submit a certification under subsection (b) by October 1 of a fiscal year.

`(f) REPORTING REQUIREMENTS-

`(1) MONITORING AND EVALUATION- Each State receiving an allotment under this section shall monitor and evaluate the programs supported using funds made available under this section in such manner as the Secretary, in consultation with the States, determines appropriate.

`(2) ANNUAL REPORTS.-Not less frequently than annually, each State receiving an allotment under this section for a fiscal year shall submit to the Secretary reports on the programs supported under this section at such time, in such manner, and containing such information as the Secretary may reasonably require.

`(g) AMOUNT OF ALLOTMENTS-

`(1) IN GENERAL.-Except as provided in paragraph (2), of the amount appropriated for the purpose of making allotments under this section for a fiscal year the Secretary shall allot to each State that submits a certification under subsection (b) for that fiscal year an amount equal to the sum of--

`(A) the amount that bears the same ratio to 50 percent of such funds as the number of young children in the State (as determined by the Secretary based on the most reliable data available) as bears to the number of such children in all States; and

`(B) the amount that bears the same ratio to 50 percent of such funds as the number of children at risk in the State (as so determined) bears to the number of such children in all States.

`(2) MINIMUM ALLOTMENTS.-No allotment for a fiscal year under this section shall be less than--

`(A) in the case of a State other than the Commonwealth of Puerto Rico, the United

States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, 1 percent of the amount appropriated for the fiscal year under subsection (h); and

`(B) in the case of the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, 0.5 percent of such amount.

`(3) PRO RATA REDUCTIONS- The Secretary shall make such pro rata reductions to the allotments determined under paragraph (1) as are necessary to comply with the requirements of paragraph (2).

`(h) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated $50,000,000 for each of fiscal years 2003 through 2007 for purposes of making allotments to States under this section.'.

(b) EVALUATION AND REPORT-

(1) EVALUATION-

(A) IN GENERAL- The Secretary of Health and Human Services (in this subsection referred to as the `Secretary'), in consultation with the Secretary of Labor, shall, directly or through a grant, contract, or interagency agreement, conduct an evaluation of the projects funded under section 469D of the Social Security Act (as added by subsection (a)).

(B) OUTCOMES ASSESSMENT- The evaluation conducted under subparagraph (A) shall assess, among other outcomes selected by the Secretary, effects of the projects on marriage, parenting, employment, earnings, payment of child support, and incidence of domestic violence and child abuse.

(C) PROJECT SELECTION- In selecting projects for the evaluation, the Secretary should include projects that are most likely to further the purposes of this section.

(D) RANDOM ASSIGNMENT- In conducting the evaluation, random assignment should be used wherever possible.

(2) REPORT- Not later than December 31, 2005, the Secretary shall submit to Congress a report on the results of the evaluation conducted under paragraph (1).

(3) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated $1,000,000 for each of fiscal years 2003 through 2007 to carry out this subsection.

SEC. 203. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD PROGRAMS.

Part D of title IV (42 U.S.C. 651), as amended by section 202, is amended by adding at the end the following:

`SEC. 469E. MEDIA CAMPAIGN AND NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD.

`(a) MEDIA CAMPAIGN AND NATIONAL CLEARINGHOUSE-

`(1) IN GENERAL- From any funds appropriated under subsection (c), the Secretary shall contract with a nationally recognized, nonprofit fatherhood promotion organization described in subsection (b) to--

`(A) develop, promote, and distribute to interested States, local governments, public agencies, and private entities a media campaign that encourages the appropriate involvement of both parents in the life of any child of the parents, with a priority for programs that specifically address the issue of responsible fatherhood; and

`(B) develop a national clearinghouse to assist States and communities in efforts to promote and support marriage and responsible fatherhood by collecting, evaluating, and making available (through the Internet and by other means) to other States information regarding the media campaigns established under section 469C.

`(2) COORDINATION WITH DOMESTIC VIOLENCE PROGRAMS- The Secretary shall ensure that the nationally recognized nonprofit fatherhood promotion organization with a contract under paragraph (1) coordinates the media campaign developed under subparagraph (A) of such paragraph and the national clearinghouse developed under subparagraph (B) of such paragraph with a national, State, or local domestic violence program.

`(b) NATIONALLY RECOGNIZED, NONPROFIT FATHERHOOD PROMOTION ORGANIZATION DESCRIBED- The nationally recognized, nonprofit fatherhood promotion organization described in this subsection is such an organization that has at least 4 years of experience in--

`(1) designing and disseminating a national public education campaign, including the production and successful placement of television, radio, and print public service announcements that promote the importance of responsible fatherhood; and

`(2) providing consultation and training to community-based organizations interested in implementing fatherhood outreach, support, or skill development programs with an emphasis on promoting married fatherhood as the ideal.

`(c) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated $50,000,000 for fiscal year 2003 to carry out this section.'.

SEC. 204. POLICY REVIEWS AND DEMONSTRATION PROJECTS TO COORDINATE SERVICES FOR LOW-INCOME, NONCUSTODIAL PARENTS.

Part D of title IV (42 U.S.C. 651), as amended by section 203, is amended by adding at the end the following:

`SEC. 469F. GRANTS TO CONDUCT POLICY REVIEWS AND DEMONSTRATION PROJECTS TO COORDINATE SERVICES FOR LOW-INCOME, NONCUSTODIAL PARENTS.

`(a) POLICY REVIEWS- The Secretary shall make grants to States desiring to conduct policy reviews and develop recommendations with the goals of--

`(1) obtaining and retaining employment, increasing child support payments, and increasing the

involvement of low-income, noncustodial parents with their children; and

`(2) coordinating policies and services for low-income, noncustodial parents among the different systems or programs in which such parents are involved, including the criminal justice system, the State program funded under part A, the State program funded under this part, and job training or employment programs.

`(b) DEMONSTRATION PROJECTS-

`(1) IN GENERAL- The Secretary shall make grants to States desiring to conduct a demonstration project for the purpose of--

`(A) testing innovative policies and to better coordinate policies and services for low-income, noncustodial parents to accomplish the goals described in subsection (a); or

`(B) if the State conducted a policy review with a grant made under subsection (a) and desires to implement the recommendations of that review, implementing such recommendations.

`(2) USE OF FUNDS- Funds made available under a grant made under this subsection may be used to provide a wide variety of services to, and to implement policies regarding, low-income, noncustodial parents, including providing economic incentives (with or without penalty) to increase the employment of such parents or to increase the amount of child support paid by such parents.

`(c) APPLICATION- A State desiring to receive a grant to conduct a policy review under subsection (a) or a grant to conduct a demonstration project under subsection (b) shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

`(d) AUTHORIZATION OF APPROPRIATIONS- Out of any money in the Treasury of the United States not otherwise appropriated, there are authorized to be appropriated to carry out this section, $30,000,000 for each of fiscal years 2003 through 2007.'.

Subtitle B--Additional Provisions To Strengthen Families

SEC. 211. BAN ON IMPOSITION OF STRICTER ELIGIBILITY CRITERIA FOR 2-PARENT FAMILIES.

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

`(12) BAN ON IMPOSITION OF STRICTER ELIGIBILITY CRITERIA FOR 2-PARENT FAMILIES- In determining the eligibility of a 2-parent family for assistance under a State program funded under this part, the State shall not impose a requirement that does not apply in determining the eligibility of a 1-parent family for such assistance.'.

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

`(15) PENALTY FOR IMPOSITION OF STRICTER ELIGIBILITY CRITERIA FOR 2-PARENT FAMILIES-

`(A) IN GENERAL- If the Secretary determines that a State to which a grant is made under section 403 for a fiscal year has violated section 408(a)(12) during the fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant.

`(B) PENALTY BASED ON SEVERITY OF FAILURE- The Secretary shall impose reductions under subparagraph (A) with respect to a fiscal year based on the degree of noncompliance.'.

SEC. 212. NONCUSTODIAL PARENT EMPLOYMENT GRANT PROGRAM.

(a) AUTHORITY TO AWARD GRANTS- The Secretary of Health and Human Services and the Secretary of Labor (in this section referred to as the `Secretaries') jointly shall award grants to eligible States for the purpose of establishing, in coordination with counties and other local governments, court-supervised employment programs for noncustodial parents who have a history of nonpayment of child support obligations, as determined by a court, and who are determined by the court to be in need of employment services or placement in order to pay such child support obligations. A noncustodial parent described in the preceding sentence who is an ex-offender shall be eligible to participate in a program established with a grant made under this section.

(b) ELIGIBLE STATE- In this section, the term `eligible State' means a State that has obtained a commitment from at least 1 county within the State to establish a court-supervised employment program to provide noncustodial parents described in subsection (a) with an option to participate in that program prior to the court entering a finding that the noncustodial parent is in contempt of court for failure to pay a child support obligation and, possibly be subject to criminal penalties.

(c) ADMINISTRATION- An eligible State that receives a grant under this section may contract with a public, private, faith-based or community-based organization to administer (in conjunction with the court of jurisdiction) the court-supervised employment program .

(d) PROGRAM GOALS AND REQUIREMENT-

(1) GOALS- The goals of a court-supervised employment program established with funds made available under a grant made under this section shall include the following:

(A) To assist noncustodial parents described in subsection (a) establish a pattern of regular child support payments by obtaining and maintaining unsubsidized employment.

(B) To increase the dollar amount and total number of court-ordered child support collected.

(C) To help noncustodial parents described in subsection (a) improve relationships with their children.

(2) REQUIREMENT- A court-supervised employment program established with funds made available under a grant made under this section shall not permit a noncustodial parent placed in the program to graduate from the program and avoid penalties for failure to pay a child support obligation until the noncustodial parent completes at least 6

months of continuous, timely payment of the parent's child support obligations.

(e) USE OF FUNDS- Services provided under a court-supervised employment program established with funds made available under a grant made under this section may include the following:

(1) Job development.

(2) Supervised job search.

(3) Job placement.

(4) Case management.

(5) Court liaison services.

(6) Educational assessment.

(7) Educational referrals.

(8) Vocational assessment.

(9) Counseling on responsible fatherhood.

(10) Support funds for services such as transportation or short-term training.

(11) Referral for support services.

(12) Employment retention services.

(13) Outreach to community agencies concerning bonding programs.

(f) AMOUNT OF GRANTS-

(1) IN GENERAL- The Secretaries shall determine the amount of each grant to be awarded under this section, taking into account the number of counties participating in an eligible State and the population of the noncustodial parents to be served by the employment programs in that State.

(2) PRIORITY FOR CERTAIN PROGRAMS- In awarding grants under this section, the Secretaries shall give priority to eligible States with programs that are designed to target noncustodial parents whose income does not exceed 150 percent of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), including any revision required by such section applicable to a family of the size involved).

(g) MATCHING REQUIREMENT-

(1) IN GENERAL- The Secretaries may not award a grant to an eligible State under this section unless the eligible State agrees that, with respect to the costs to be incurred by the eligible State in supporting the court-supervised employment program established with funds provided under the grant, the State will make available non-Federal contributions in an amount equal to 25 percent of the amount of Federal funds paid to the State under such grant.

(2) NON-FEDERAL CONTRIBUTIONS- In this subsection, the term `non-Federal contributions' includes contributions by the State and by public and private entities that may be in cash or in kind, but does not include any amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government or any amount expended by a State before October 1, 2002.

(h) APPLICATION- In order to receive a grant under this section, an eligible State shall submit an application to the Secretaries, at such time and in such manner as the Secretaries may require, and that includes the following:

(1) Evidence of an agreement between the State and 1 or more counties to establish a court-supervised employment program that meets the requirements of this section.

(2) The number of potential noncustodial parents to be served by the program.

(3) The purposes specific to that State's program.

(4) The income of the target population.

(5) The amount of proposed grant funds to be awarded.

(6) A certification that the State matching requirements of subsection (g) will be satisfied if the grant is awarded to that State.

(7) Such other information as the Secretaries deem appropriate.

(i) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to award grants under this section, $200,000,000 for each of fiscal years 2003 through 2007.

Subtitle C--Teen Pregnancy Prevention Grants

SEC. 221. TEEN PREGNANCY PREVENTION GRANTS.

Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read as follows:

`(2) GRANTS TO PREVENT TEEN PREGNANCY-

`(A) SUBMISSION OF PLAN-

`(i) IN GENERAL- Each State that submits a plan that meets the requirements of clause (ii) shall be entitled to receive from the Secretary a teen pregnancy prevention grant in the amount determined under subparagraph (B) for each of fiscal years 2003 through 2007.

`(ii) PLAN REQUIREMENTS- A plan meets the requirements of this clause if the plan--

`(I) describes the State's numerical goal for reducing teen pregnancy and teen births;

`(II) identifies the strategies to be used to achieve such goal; and

`(III) describes the efforts the State will make to involve young men, as well as young women, in delaying pregnancy and parenting.

`(B) GRANT AMOUNT-

`(i) IN GENERAL- The Secretary shall allot to each State with a plan approved under subparagraph (A) an amount equal to--

`(I) with respect to fiscal year 2003, the amount that bears the same ratio to the amount of funds appropriated under subparagraph (G) for such fiscal year as the proportion of births in the State to teens under age 20 bears to the number of such births in all States; and

`(II) with respect to each of fiscal years 2004 through 2007, the amount that bears the same ratio to 50 percent of the amount of funds appropriated under subparagraph (G) for each such fiscal year as the proportion of births in the State to teens under age 20 bears to the number of such births in all States.

`(ii) INCENTIVE FUNDS- In addition to the amount determined for a State under clause (i)(II), in the case of a State that is a high achieving State (as defined in clause (iii)), the Secretary shall allot to such high achieving State with respect to each of fiscal years 2004 through 2007, the amount that bears the same ratio to 50 percent of the amount of funds appropriated under subparagraph (G) for each such fiscal year as the proportion of teens under age 20 in the high achieving State bears to the number of such teens in all such high achieving States.

`(iii) DEFINITION OF HIGH ACHIEVING STATE- In this paragraph, the term `high achieving State' means a State that has achieved an annual decline in the teen birth rate for the State as compared to the

preceding year (or the most recent year for which data is available) of at least 2.5 percent.

`(iv) DETERMINATION OF TEEN BIRTH RATES- For purposes of this subparagraph, the teen birth rate for a State shall be determined on the basis of the birth rate per 1,000 women, ages 15 through 19, who reside in the State.

`(C) USE OF FUNDS- A State shall use funds provided under a grant made under this paragraph to implement teen pregnancy prevention strategies that--

`(i) are abstinence-first, in that the strategies use a message that strongly emphasizes abstinence as the only certain way to avoid pregnancy and sexually transmitted infections while still allowing State flexibility to discuss other prevention methods;

`(ii) replicate or substantially incorporate the elements of 1 or more teen pregnancy prevention programs that have been proven (on the basis of rigorous scientific research) to delay or decrease sexual intercourse or sexual activity or reduce teenage pregnancy; and

`(iii) incorporate 1 or more of the following strategies for preventing teen pregnancy--

`(I) encouraging teenagers to delay sexual activity;

`(II) youth development programs;

`(III) community or service learning programs; or

`(IV) outreach or media programs.

`(D) SUBGRANT OR CONTRACT RECIPIENTS-

`(i) IN GENERAL- Subject to clause (ii), a State to which a grant is made under this paragraph for a fiscal year may award subgrants or contracts to--

`(I) State or local nonprofit coalitions working to prevent teenage pregnancy;

`(II) State, local, or tribal agencies;

`(III) schools;

`(IV) entities that provide after school programs;

`(V) nonprofit community or faith-based organizations; or

`(VI) other organizations designated by the State.

`(ii) SET-ASIDE FOR TRIBAL AGENCIES- Not less than an amount equal to 1.5 percent of the amount of a grant made to a State under this paragraph for a fiscal year shall be used to award subgrants or contracts to tribal agencies.

`(E) SUPPLEMENTATION OF FUNDS- A State to which a grant is made under this paragraph for a fiscal year shall use funds provided under the grant to supplement and not supplant funds that would otherwise be available to the State for preventing teen pregnancy.

`(F) DATA REPORTING- A State to which a grant is made under this paragraph for a fiscal year shall cooperate with the Secretary to collect information and report on outcomes of programs funded under the grant, as specified by the Secretary.

`(G) APPROPRIATION- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for making grants under this paragraph--

`(i) for fiscal year 2003, $50,000,000; and

`(ii) for each of fiscal years 2004 through 2007, $100,000,000.'.

SEC. 222. TEEN PREGNANCY PREVENTION RESOURCE CENTER.

(a) AUTHORITY TO ESTABLISH-

(1) IN GENERAL- The Secretary of Health and Human Services (in this section referred to as the `Secretary') shall make a grant to a nationally recognized, nonpartisan, nonprofit organization that meets the requirements described in paragraph (2) to establish and operate a national teen pregnancy prevention resource center (in this section referred to as the `Resource Center') to carry out the purposes and activities described in subsection (b).

(2) CONTRACTOR REQUIREMENTS- The requirements described in this paragraph are the following:

(A) The organization has at least 5 years of experience in working with diverse sectors of society to reduce teen pregnancy.

(B) The organization has a demonstrated ability to work with and provide assistance to a broad range of individuals and entities, including teens, parents, the entertainment and news media, State, tribal, and local organizations, networks of teen pregnancy prevention practitioners, businesses, faith and community leaders, and researchers.

(C) The organization is research-based and has capabilities in scientific analysis and evaluation.

(D) The organization has comprehensive knowledge and data about teen pregnancy prevention strategies.

(E) The organization has experiences operating a resource center that carries out activities similar to the activities described in subsection (b)(2).

(b) PURPOSES AND ACTIVITIES-

(1) PURPOSES- The purposes of the Resource Center are to--

(A) provide information and technical assistance to States, Indian tribes, local communities, and other public or private organizations seeking to reduce rates of teen pregnancy; and

(B) assist such entities in their efforts to work through all forms of media to communicate effective messages about preventing teen pregnancy, including messages that focus on abstinence, responsible behavior, family communication, relationships, and values.

(2) ACTIVITIES- The Resource Center shall carry out the purposes described in paragraph (1) through the following activities:

(A) Synthesizing and disseminating research and information regarding effective and promising practices to prevent teen pregnancy.

(B) Developing and providing information on how to design and implement effective programs to prevent teen pregnancy.

(C) Helping States, local communities, and other organizations increase their knowledge of existing resources that can be used to advance teen pregnancy prevention efforts.

(D) Linking organizations working to reduce teen pregnancy with experts and peer

groups, including the creation of technical assistance networks.

(E) Providing consultation and resources on how to reduce teen pregnancy through a broad array of strategies, including enlisting the help of various sectors of society such as parents, other adults (such as coaches and mentors), community or faith-based groups, the entertainment and news media, business, and other teens.

(F) Working directly with individuals and organizations in the entertainment industry to provide consultation and serve as a source of factual information on issues related to teen pregnancy prevention.

(c) MEDIA CAMPAIGNS-

(1) IN GENERAL- The organization operating the Resource Center may use a portion of the funds appropriated to carry out this section to develop and implement media campaigns directly or through grants, contracts, or cooperative agreements with other entities. Such campaigns may include the production and distribution of printed materials and messages for print media, television and radio broadcast media, the Internet, or such other media as may be appropriate for reaching large numbers of young people and their parents.

(2) MATCHING- To the extent possible, funds used to develop and implement media campaigns under this subsection should be matched with non-Federal resources, including in-kind contributions, from public and private entities.

(d) COLLABORATION WITH OTHER ORGANIZATIONS- The organization operating the Resource Center shall collaborate with other nonprofit organizations that have expertise and interest in teen pregnancy prevention.

(e) EVALUATION-

(1) RESERVATION AND AVAILABILITY OF FUNDS- Of the amount appropriated under subsection (f) for fiscal year 2003, $5,000,000 shall be reserved for use by the Secretary of Health and Human Services to prepare an interim and final report summarizing and synthesizing outcomes and lessons learned from the activities funded under this section. Funds reserved under the preceding sentence shall remain available for expenditure through fiscal year 2007.

(2) REQUIRED INFORMATION- Each report required under paragraph (1) shall include--

(A) a rigorous scientific evaluation of at least 3 such activities that are selected to represent a diversity of strategies; and

(B) an assessment of the ability to replicate and expand activities that have proven effective on a smaller scale.

(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary of Health and Human Services to carry out this section, $10,000,000 for each of fiscal years 2003 through 2007.

SEC. 223. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.

Section 905 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (42 U.S.C. 710 note) is amended to read as follows:

`SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.

`(a) IN GENERAL- Not later than January 1, 2003, the Secretary of Health and Human Services shall establish a national goal of reducing teen pregnancy by at least 25 percent by January 1, 2013.

`(b) REPORT- Not later than June 30, 2003, and annually thereafter, the Secretary of Health and Human Services shall report to Congress with respect to the progress that has been made in meeting the national goal established under subsection (a).'.

Subtitle D--Child Support Distribution to Families First

CHAPTER 1--DISTRIBUTION OF CHILD SUPPORT

SEC. 231. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.

(a) MODIFICATION OF RULE REQUIRING ASSIGNMENT OF SUPPORT RIGHTS AS A CONDITION OF RECEIVING TANF- Section 408(a)(3) (42 U.S.C. 608(a)(3)) is amended to read as follows:

`(3) NO ASSISTANCE FOR FAMILIES NOT ASSIGNING CERTAIN SUPPORT RIGHTS TO THE STATE- A State to which a grant is made under section 403 shall require, as a condition of paying assistance to a family under the State program funded under this part, that a member of the family assign to the State any rights the family member may have (on behalf of the family member or of any other person for whom the family member has applied for or is receiving such assistance) to support from any other person, not exceeding the total amount of assistance so paid to the family, which accrues during the period that the family receives assistance under the program.'.

(b) INCREASING CHILD SUPPORT PAYMENTS TO FAMILIES AND SIMPLIFYING CHILD SUPPORT DISTRIBUTION RULES-

(1) DISTRIBUTION RULES-

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

`(a) IN GENERAL- Subject to subsections (d) and (e), the amounts collected on behalf of a family as support by a State pursuant to a plan approved under this part shall be distributed as follows:

`(1) FAMILIES RECEIVING ASSISTANCE- In the case of a family receiving assistance from the State, the State shall--

`(A) pay to the Federal Government the Federal share of the amount collected, subject to paragraph (3)(A);

`(B) retain, or pay to the family, the State share of the amount collected, subject to paragraph (3)(B); and

`(C) pay to the family any remaining amount.

`(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE- In the case of a family that formerly received assistance from the State:

`(A) CURRENT SUPPORT- To the extent that the amount collected does not exceed the current support amount, the State shall pay the amount to the family.

`(B) ARREARAGES- Except as otherwise provided in the State plan approved under section 454, to the extent that the amount collected exceeds the current support amount, the State--

`(i) shall first pay to the family the excess amount, to the extent necessary to satisfy support arrearages not assigned pursuant to section 408(a)(3);

`(ii) if the amount collected exceeds the amount required to be paid to the family under clause (i), shall--

`(I) pay to the Federal Government, the Federal share of the excess amount described in this clause, subject to paragraph (3)(A); and

`(II) retain, or pay to the family, the State share of the excess amount described in this clause, subject to paragraph (3)(B); and

`(iii) shall pay to the family any remaining amount.

`(3) LIMITATIONS-

`(A) FEDERAL REIMBURSEMENTS- The total of the amounts paid by the State to the Federal Government under paragraphs (1) and (2) with respect to a family shall not exceed the Federal share of the amount assigned with respect to the family pursuant to section 408(a)(3).

`(B) STATE REIMBURSEMENTS- The total of the amounts retained by the State under paragraphs (1) and (2) with respect to a family shall not exceed the State share of the amount assigned with respect to the family pursuant to section 408(a)(3).

`(4) FAMILIES THAT NEVER RECEIVED ASSISTANCE- In the case of any other family, the State shall pay the amount collected to the family.

`(5) FAMILIES UNDER CERTAIN AGREEMENTS- Notwithstanding paragraphs (1) through (4), in the case of an amount collected for a family in accordance with a cooperative agreement under section 454(33), the State shall distribute the amount collected pursuant to the terms of the agreement.

`(6) STATE FINANCING OPTIONS- To the extent that the State share of the amount payable to a family pursuant to paragraph (2)(B) exceeds the amount that the State estimates (under procedures approved by the Secretary) would have been payable to the family pursuant to former section 457(a)(2)(B) (as in effect for the State on the day before the date this subsection first applies to the State) if such former section had remained in effect, the State may elect to use the grant made to the State under section 403(a) to pay the amount, or to have the payment considered a qualified State expenditure for purposes of section 409(a)(7), but not both.

`(7) STATE OPTION TO PASS THROUGH ADDITIONAL SUPPORT WITH FEDERAL FINANCIAL PARTICIPATION-

`(A) IN GENERAL- Notwithstanding paragraphs (1) and (2), a State shall not be required to pay to the Federal Government the Federal share of an amount collected on behalf of a family that is not a recipient of assistance under the State program funded under part A, to the extent that the State pays the amount to the family.

`(B) RECIPIENTS OF TANF FOR LESS THAN 5 YEARS-

`(i) IN GENERAL- Notwithstanding paragraphs (1) and (2), a State shall not be required to pay to the Federal Government the Federal share of an amount collected on behalf of a family that is a recipient of assistance under the State program funded under part A and, if the family includes an adult, that has received the assistance for not more than 5 years after the date of enactment of this paragraph, to the extent that--

`(I) the State pays the amount to the family; and

`(II) subject to clause (ii), the amount is disregarded in determining the amount and type of the assistance provided to the family.

`(ii) LIMITATION- Of the amount disregarded as described in clause (i)(II), the maximum amount that may be taken into account for purposes of clause (i) shall not exceed $400 per month, except that, in the case of a family that includes 2 or more children, the State may elect to increase the maximum amount to not more than $600 per month.

`(8) STATES WITH DEMONSTRATION WAIVERS- Notwithstanding the preceding paragraphs, a State with a waiver under section 1115 that became effective on or before October 1, 1997, the terms of which allow pass through of child support payments, may pass through such payments in accordance with such terms with respect to families subject to the waiver.'.

(B) STATE PLAN TO INCLUDE ELECTION AS TO WHICH RULES TO APPLY IN DISTRIBUTING CHILD SUPPORT ARREARAGES COLLECTED ON BEHALF OF FAMILIES FORMERLY RECEIVING ASSISTANCE- Section 454 (42 U.S.C. 654) is amended--

(i) by striking `and' at the end of paragraph (32);

(ii) by striking the period at the end of paragraph (33) and inserting `; and'; and

(iii) by inserting after paragraph (33) the following:

`(34) include an election by the State to apply section 457(a)(2)(B) or former section 457(a)(2)(B) (as in effect for the State on the day before the date this paragraph first applies to the State) to the distribution of the amounts which are the subject of such sections, and for so long as the State elects to so apply such former section, the amendments made by section 211(b) of the Work and Family Act of 2002 shall not apply with respect to the State, notwithstanding subsection (f)(1) of such section 211.'.

(C) APPROVAL OF ESTIMATION PROCEDURES- Not later than October 1, 2002, the Secretary of Health and Human Services, in consultation with the States (as defined for purposes of part D of title IV of the Social Security Act), shall establish the procedures to be used to make the estimate described in section 457(a)(6) of such Act.

(2) CURRENT SUPPORT AMOUNT DEFINED- Section 457(c) (42 U.S.C. 657(c)) is amended by adding at the end the following:

`(5) CURRENT SUPPORT AMOUNT- The term `current support amount' means, with respect to

amounts collected as support on behalf of a family, the amount designated as the monthly support obligation of the noncustodial parent in the order requiring the support.'.

(c) BAN ON RECOVERY OF MEDICAID COSTS FOR CERTAIN BIRTHS- Section 454 (42 U.S.C. 654), as amended by subsection (b)(1)(B), is amended--

(1) by striking `and' at the end of paragraph (33);

(2) by striking the period at the end of paragraph (34) and inserting `; and'; and

(3) by inserting after paragraph (34) the following:

`(35) provide that the State shall not use the State program operated under this part to collect any amount owed to the State by reason of costs incurred under the State plan approved under title XIX for the birth of a child for whom support rights have been assigned pursuant to section 408(a)(3), 471(a)(17), or 1912.'.

(d) STATE OPTION TO DISCONTINUE CERTAIN SUPPORT ASSIGNMENTS- Section 457(b) (42 U.S.C. 657(b)) is amended by striking `shall' and inserting `may, at State option,'.

(e) CONFORMING AMENDMENTS-

(1) Section 404(a) (42 U.S.C. 604(a)) is amended--

(A) by striking `or' at the end of paragraph (1);

(B) by striking the period at the end of paragraph (2) and inserting `; or'; and

(C) by adding at the end the following:

`(3) to fund payment of an amount pursuant to section 457(a)(2)(B), but only to the extent that the State properly elects under section 457(a)(6) to use the grant to fund the payment.'.

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

(A) in subclause (I)(aa), by striking `457(a)(1)(B)' and inserting `457(a)(1)'; and

(B) by adding at the end the following:

`(V) PORTIONS OF CERTAIN CHILD SUPPORT PAYMENTS COLLECTED ON BEHALF OF AND DISTRIBUTED TO FAMILIES NO LONGER RECEIVING ASSISTANCE- Such term does not include any amount paid by a State pursuant to section 457(a)(2)(B), but only to the extent that the State properly elects under section 457(a)(6) to not have the payment considered a qualified State expenditure.'.

(f) EFFECTIVE DATE-

(1) IN GENERAL- The amendments made by this section shall take effect on October 1, 2005, and shall apply to payments under parts A and D of title IV of the Social Security Act for calendar quarters beginning on or after such date, and without regard to whether regulations to implement the amendment (in the case of State programs operated under such part D) are promulgated by such date.

(2) STATE OPTION TO ACCELERATE EFFECTIVE DATE- A State may elect to have the amendment made by subsection (a), the amendments made by subsections (b) and (e), or the amendment made by subsection (d) apply to the State and to amounts collected by the State, on and after such date as the State may select that is after the date of enactment of this Act, by including an election to that effect in the State plan under part D of title IV of the Social Security Act.

CHAPTER 2--DEMONSTRATIONS OF EXPANDED INFORMATION AND ENFORCEMENT

SEC. 241. GUIDELINES FOR INVOLVEMENT OF PUBLIC NON-IV-D CHILD SUPPORT ENFORCEMENT AGENCIES IN CHILD SUPPORT ENFORCEMENT.

(a) IN GENERAL- Not later than October 1, 2002, the Secretary, in consultation with States, local governments, and individuals or companies knowledgeable about involving public non-IV-D child support enforcement agencies in child support enforcement, shall develop recommendations which address the participation of public non-IV-D child support enforcement agencies in the establishment and enforcement of child support obligations. The matters addressed by the recommendations shall include substantive and procedural rules which should be followed with respect to privacy safeguards, data security, due process rights, administrative compatibility with Federal and State automated systems, eligibility requirements (such as registration, licensing, and posting of bonds) for access to information and use of enforcement mechanisms, recovery of costs by charging fees, penalties for violations of the rules, treatment of collections for purposes of section 458 of such Act (42 U.S.C. 658), and avoidance of duplication of effort.

(b) DEFINITIONS- In this title:

(1) CHILD SUPPORT- The term `child support' has the meaning given in section 459(i)(2) of the Social Security Act (42 U.S.C. 659(i)(2)).

(2) PUBLIC NON-IV-D CHILD SUPPORT ENFORCEMENT AGENCY- The term `public non-IV-D child support enforcement agency' means an agency, of a political subdivision of a State, which is principally responsible for the operation of a child support registry or for the establishment or enforcement of an obligation to pay child support other than pursuant to the State plan approved under part D of title IV of such Act (42 U.S.C. 651 et seq.), or a clerk of court office of a political subdivision of a State.

(3) SECRETARY- The term `Secretary' means the Secretary of Health and Human Services.

(4) STATE- The term `State' shall have the meaning given in section 1101(a)(1) of the Social Security Act (42 U.S.C. 1301(a)(1)) for purposes of part D of title IV of such Act (42 U.S.C. 651 et seq.).

SEC. 242. DEMONSTRATIONS INVOLVING ESTABLISHMENT AND ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS BY PUBLIC NON-IV-D CHILD SUPPORT ENFORCEMENT AGENCIES.

(a) PURPOSE- The purpose of this section is to determine the extent to which public non-IV-D child support enforcement agencies may contribute effectively to the establishment and enforcement of child support obligations by coordinating with law enforcement agencies, employment agencies and organizations, hospitals and other health care providers, and other stakeholders to establish methods to reach out to noncustodial parents with child support obligations and prevent nonpayment of such obligations.

(b) APPLICATIONS-

(1) CONSIDERATION- The Secretary shall consider all applications received from States desiring to conduct demonstration projects under this section.

(2) PREFERENCES- In considering which applications to approve under this section, the Secretary shall give preference to applications submitted by States that had a public non-IV-D child support enforcement agency as of January 1, 2002.

(3) APPROVAL-

(A) TIMING; LIMITATION ON NUMBER OF PROJECTS- Not later than July 1, 2003, the Secretary may approve not more than 10 applications for projects providing for the participation of a public non-IV-D child support enforcement agency in the establishment and enforcement of child support obligations, and, if the Secretary receives at least 5 such applications that meet such requirements as the Secretary may establish, shall approve not less than 5 such applications.

(B) REQUIREMENTS- The Secretary may not approve an application for a project unless--

(i) the applicant and the Secretary have entered into a written agreement which addresses at a minimum, privacy safeguards, data security, due process rights, automated systems, liability, oversight, and fees, and the applicant has made a commitment to conduct the project in accordance with the written agreement and such other requirements as the Secretary may establish;

(ii) the project includes a research plan (but such plan shall not be required to use random assignment) that is focused on assessing the costs and benefits of the project; and

(iii) the project appears likely to contribute significantly to the achievement of the purpose of this title.

(c) DEMONSTRATION AUTHORITY- On approval of an application submitted by a State under this section--

(1) the State agency responsible for administering the State plan under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.) may, subject to the privacy safeguards of section 454(26) of such Act (42 U.S.C. 654(26)), provide to any public non-IV-D child support enforcement agency participating in the demonstration project all information in the State Directory of New Hires and any information obtained through information comparisons under section 453(j)(3) of such Act (42 U.S.C. 653(j)(3)) about an individual with respect to whom the public non-IV-D agency is seeking to establish or enforce a child support obligation, if the public non-IV-D agency meets such requirements as the State may establish and has entered into an agreement with the State under which the public non-IV-D agency has made a binding commitment to carry out establishment and enforcement activities with respect to the child support obligation subject to the same data security, privacy protection, and due process requirements applicable to the State agency and in accordance with procedures approved by the head of the State agency;

(2) the State agency may charge and collect fees from any such public non-IV-D agency to recover costs incurred by the State agency in providing information and services to the public non-IV-D agency under the demonstration project;

(3) if a public non-IV-D child support enforcement agency has agreed to collect past-due support (as defined in section 464(c) of such Act (42 U.S.C. 664(c))) owed by a named individual, and the State agency has submitted a notice to the Secretary of the Treasury pursuant to section 464 of such Act on behalf of the public non-IV-D agency, then the Secretary of the Treasury shall consider the State agency to have agreed to collect such support for purposes of such section 464, and the State agency may collect from the public non-IV-D agency any fee which the State is required to pay for the cost of applying the offset procedure in the case;

(4) for so long as a public non-IV-D child support enforcement agency is participating in the demonstration project, the public non-IV-D agency shall be considered part of the State agency for purposes of section 469A of such Act (42 U.S.C. 669a); and

(5) for so long as a public non-IV-D child support enforcement agency is participating in the demonstration project, the public non-IV-D agency shall be considered part of the State agency for purposes of section 303(e) of such Act (42 U.S.C. 503(e)) but only with respect to any child support obligation that the public non-IV-D agency has agreed to collect.

(d) WAIVER AUTHORITY- The Secretary may waive or vary the applicability of any provision of section 303(e), 454(31), 464, 466(a)(7), 466(a)(17), or 469A of the Social Security Act (42 U.S.C. 503(e), 654(31), 664, 666(a)(7), 666(a)(17), 669a) to the extent necessary to enable the conduct of demonstration projects under this section, subject to the preservation of the data security, privacy protection, and due process requirements of part D of title IV of such Act (42 U.S.C. 651 et seq.).

(e) FEDERAL AUDIT-

(1) IN GENERAL- The Comptroller General of the United States shall conduct an audit of the demonstration projects conducted under this section for the purpose of examining and evaluating the manner in which information and enforcement tools are used by the public non-IV-D child support enforcement agencies participating in the projects.

(2) REPORT TO CONGRESS-

(A) IN GENERAL- The Comptroller General of the United States shall submit to Congress a report on the audit required by paragraph (1).

(B) TIMING- The report required by subparagraph (A) shall be so submitted not later than October 1, 2005.

(f) SECRETARIAL REPORT TO CONGRESS-

(1) IN GENERAL- The Secretary shall submit to Congress a report on the demonstration projects conducted under this section, which shall include the results of any research or evaluation conducted pursuant to this title, and shall include policy recommendations regarding the establishment and enforcement of child support obligations by the agencies involved.

(2) TIMING- The report required by paragraph (1) shall be so submitted not later than October 1, 2006.

SEC. 243. GAO REPORT TO CONGRESS ON PRIVATE CHILD SUPPORT ENFORCEMENT AGENCIES.

(a) IN GENERAL- Not later than October 1, 2002, the Comptroller General of the United States shall submit to Congress a report on the activities of private child support enforcement agencies that shall be designed to help Congress determine whether the agencies are providing a needed service in a fair manner using accepted debt collection practices and at a reasonable fee.

(b) MATTERS TO BE ADDRESSED- Among the matters addressed by the report required by subsection (a) shall be the following:

(1) The number of private child support enforcement agencies.

(2) The types of debt collection activities conducted by the private agencies.

(3) The fees charged by the private agencies.

(4) The methods used by the private agencies to collect fees from custodial parents.

(5) The nature and degree of cooperation the private agencies receive from State agencies responsible for administering State plans under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.).

(6) The extent to which the conduct of the private agencies is subject to Federal or State regulation, and if so, the extent to which the regulations are effectively enforced.

(7) The amount of child support owed but uncollected and changes in this amount in recent years.

(8) The average period of time required for the completion of successful enforcement actions yielding collections of past-due child support by both the child support enforcement programs operated pursuant to State plans approved under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.) and, to the extent known, by private child support enforcement agencies.

(9) The types of Federal and State child support enforcement remedies and resources currently available to private child support enforcement agencies, and the types of such remedies and resources now restricted to use by State agencies administering State plans referred to in paragraph (8).

(c) PRIVATE CHILD SUPPORT ENFORCEMENT AGENCY DEFINED- In this section, the term `private child support enforcement agency' means a person or any other nonpublic entity which seeks to establish or enforce an obligation to pay child support (as defined in section 459(i)(2) of the Social Security Act (42 U.S.C. 659(i)(2)).

SEC. 244. EFFECTIVE DATE.

This chapter shall take effect on the date of enactment of this Act.

CHAPTER 3--EXPANDED ENFORCEMENT

SEC. 251. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING PASSPORT DENIAL.

Section 452(k) (42 U.S.C. 652(k)) is amended by striking `$5,000' and inserting `$2,500'.

SEC. 252. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

Section 464 (42 U.S.C. 664) is amended--

(1) in subsection (a)(2)(A), by striking `(as that term is defined for purposes of this paragraph under subsection (c))'; and

(2) in subsection (c)--

(A) in paragraph (1)--

(i) by striking `(1) Except as provided in paragraph (2), as used in' and inserting `In'; and

(ii) by inserting `(whether or not a minor)' after `a child' each place it appears; and

(B) by striking paragraphs (2) and (3).

SEC. 253. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT OBLIGATIONS.

Section 459(h) (42 U.S.C. 659(h)) is amended--

(1) in paragraph (1)(A)(ii)--

(A) in subclause (IV), by striking `or' after the semicolon;

(B) in subclause (V), by inserting `or' after the semicolon; and

(C) by adding at the end the following:

`(VI) subject to paragraph (3), other than periodic benefits or payments described in subclause (V), by the Secretary of Veterans Affairs as compensation for a service-connected disability paid by the Secretary to a former member of the Armed Forces;';

(2) in paragraph (1)(B)(iii), by striking `subparagraph (A)(ii)(V)' and inserting `subclauses (V) and (VI) of subparagraph (A)(ii)'; and

(3) by adding at the end the following:

`(3) LIMITATIONS WITH RESPECT TO COMPENSATION PAID TO VETERANS FOR SERVICE-CONNECTED DISABILITIES-

`(A) ALIMONY AND CHILD SUPPORT- Compensation described in paragraph (1)(A)(ii)(VI) shall not be subject to withholding pursuant to this section--

`(i) for payment of alimony; or

`(ii) for payment of child support if the individual is fewer than 60 days in arrears in payment of the support.

`(B) LIMITATION- Not more than 50 percent of any payment of compensation described in subparagraph (A) may be withheld pursuant to this section.'.

CHAPTER 4--MISCELLANEOUS

SEC. 261. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

Not later than 6 months after the date of enactment of this Act, the Secretary of Health and Human Services shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on the procedures that the States use generally to locate custodial parents for whom child support has been collected but not yet distributed due to a change in address. The report shall include an estimate of the total amount of such undistributed child support and the average length of time it takes for such child support to be distributed. The Secretary shall include in the report recommendations as to whether additional procedures should be established at the Federal or State level to expedite the payment of undistributed child support.

SEC. 262. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF UNEMPLOYMENT COMPENSATION PROGRAMS.

Section 453(j) (42 U.S.C. 653(j)) is amended by adding at the end the following:

`(7) INFORMATION COMPARISONS AND DISCLOSURE TO ASSIST IN ADMINISTRATION OF UNEMPLOYMENT COMPENSATION PROGRAMS-

`(A) IN GENERAL- If a State agency responsible for the administration of an unemployment compensation program under Federal or State law transmits to the Secretary the name and social security account number of an individual, the Secretary shall, if the information in the National Directory of New Hires indicates that the individual may be employed, disclose to the State agency the name, address, and employer identification number of any putative employer of the individual, subject to this paragraph.

`(B) CONDITION ON DISCLOSURE- The Secretary shall make a disclosure under subparagraph (A) only to the extent that the Secretary determines that the disclosure would not interfere with the effective operation of the program under this part.

`(C) USE OF INFORMATION- A State agency may use information provided under this paragraph only for purposes of administering a program referred to in subparagraph (A).'.

SEC. 263. IMMIGRATION PROVISIONS.

(a) NONIMMIGRANT ALIENS INELIGIBLE TO RECEIVE VISAS AND EXCLUDED FROM ADMISSION FOR NONPAYMENT OF CHILD SUPPORT-

(1) IN GENERAL- Section 212(a)(10) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at the end the following:

`(F) NONPAYMENT OF CHILD SUPPORT-

`(i) IN GENERAL- Any nonimmigrant alien is inadmissible who is legally obligated under a judgment, decree, or order to pay child support (as defined in section 459(i)(2) of the Social Security Act), and whose failure to pay such child support has resulted in an arrearage exceeding $2,500, until child support payments under the judgment, decree, or order are satisfied or the nonimmigrant alien is in compliance with an approved payment agreement.

`(ii) WAIVER AUTHORIZED- The Attorney General may waive the application of clause (i) in the case of an alien, if the Attorney General--

`(I) has received a request for the waiver from the court or administrative agency having jurisdiction over the judgment, decree, or order obligating the alien to pay child support that is referred to in such clause; or

`(II) determines that there are prevailing humanitarian or public interest concerns.'.

(2) EFFECTIVE DATE- The amendment made by this subsection shall take effect 180 days after the date of enactment of this Act.

(b) AUTHORIZATION TO SERVE LEGAL PROCESS IN CHILD SUPPORT CASES ON CERTAIN ARRIVING ALIENS-

(1) IN GENERAL- Section 235(d) of the Immigration and Nationality Act (8 U.S.C. 1225(d)) is amended by adding at the end the following:

`(5) AUTHORITY TO SERVE PROCESS IN CHILD SUPPORT CASES-

`(A) IN GENERAL- To the extent consistent with State law, immigration officers are authorized to serve on any alien who is an applicant for admission to the United States legal process with respect to any action to enforce or establish a legal obligation of an individual to pay child support (as defined in section 459(i)(2) of the Social Security Act).

`(B) DEFINITION- For purposes of subparagraph (A), the term `legal process' means any writ, order, summons, or other similar process, which is issued by--

`(i) a court or an administrative agency of competent jurisdiction in any State, territory, or possession of the United States; or

`(ii) an authorized official pursuant to an order of such a court or agency or pursuant to State or local law.'.

(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to aliens applying for admission to the United States on or after 180 days after the date of enactment of this Act.

(c) AUTHORIZATION TO SHARE CHILD SUPPORT ENFORCEMENT INFORMATION TO ENFORCE IMMIGRATION AND NATURALIZATION LAW-

(1) SECRETARIAL RESPONSIBILITY- Section 452 (42 U.S.C. 652) is amended by adding at the end the following:

`(m) If the Secretary receives a certification by a State agency, in accordance with section 454(36), that an individual who is a nonimmigrant alien (as defined in section 101(a)(15) of the Immigration and Nationality Act) owes arrearages of child support in an amount exceeding $2,500, the Secretary may, at the request of the State agency, the Secretary of State, or the Attorney General, or on the Secretary's own initiative, provide the certification to the Secretary of State and the Attorney General in order to enable them to carry out their responsibilities under sections 212(a)(10) and 235(d) of such Act.'.

(2) STATE AGENCY RESPONSIBILITY- Section 454 (42 U.S.C. 654), as amended by section 231(c), is amended--

(A) by striking `and' at the end of paragraph (34);

(B) by striking the period at the end of paragraph (35) and inserting `; and'; and

(C) by inserting after paragraph (35) the following:

`(36) provide that the State agency will have in effect a procedure for certifying to the Secretary, in such format and accompanied by such supporting documentation as the Secretary may require, determinations that nonimmigrant aliens owe arrearages of child support in an amount exceeding $2,500.'.

SEC. 264. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR SHORT-TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE AGENCIES.

Section 474(a)(3)(B) (42 U.S.C. 674(a)(3)(B)) is amended by inserting `or State-licensed or State-approved child welfare agencies providing services to such children,' after `this part,'.

SEC. 265. CORRECTION OF ERRORS IN CONFORMING AMENDMENTS IN THE WELFARE-TO-WORK AND CHILD SUPPORT AMENDMENTS OF 1999.

The amendments made by section 2402 of the Emergency Supplemental Act, 2000 (Public Law 106-246; 114

Stat. 555) shall take effect as if included in the enactment of section 806 of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2000 (as enacted into law by section 1000(a)(4) of Public Law 106-113; 113 Stat. 1501A-286).

SEC. 266. TECHNICAL CORRECTION TO CHANGED DATES FOR ABSTINENCE EVALUATION.

(a) IN GENERAL- Section 513 of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2001, as enacted into law by section 1(a)(1) of the Consolidated Appropriations Act, 2001 (Public Law 106-554; 114 Stat. 2763A-71), is amended--

(1) in subsection (a), by striking `Section 403(a)(5)(H)(iii) of the Social Security Act (42 U.S.C. 603(a)(5)(H)(iii))' and inserting `Section 403(a)(5)(G)(iii) of the Social Security Act (42 U.S.C. 603(a)(5)(G)(iii)) (as redesignated by section 107(a) of this Act)'; and

(2) in subsection (b), by striking `Section 403(a)(5)(H)' and inserting `Section 403(a)(5)(G) (as so redesignated)'.

(b) EFFECTIVE DATE- The amendments made by subsection (a) shall take effect as if included in the enactment of section 513 of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2001, as so enacted into law.

TITLE III--PROVIDING FLEXIBILITY AND RESOURCES

Subtitle A--Resources Under TANF

SEC. 301. REAUTHORIZATION OF STATE FAMILY ASSISTANCE GRANTS.

Section 403(a)(1) is amended (42 U.S.C. 603(a)(1))--

(1) in subparagraph (A), by striking `1996' and all that follows through `2002' and inserting `2003 through 2007'; and

(2) in subparagraph (E), by striking `fiscal years 1996' and all that follows through `2002' and inserting `each of fiscal years 2003 through 2007'.

SEC. 302. CONTINGENCY FUND.

(a) CONTINGENCY FUNDING AVAILABLE TO NEEDY STATES- Section 403(b) (42 U.S.C. 603(b)) is amended--

(1) by striking paragraphs (1) through (3) and inserting the following:

`(1) CONTINGENCY FUND GRANTS-

`(A) PAYMENTS- Subject to subparagraph (C), each State shall receive a contingency fund grant for each eligible month in which the State is a needy State under paragraph (3).

`(B) MONTHLY CONTINGENCY FUND GRANT AMOUNT- For each eligible month in which a State is a needy State, the State shall receive a contingency fund grant equal to the higher of $0 and the applicable percentage (as defined in subparagraph (D)(i)) of the product of--

`(i) the estimated cost of an additional recipient family (as defined in subparagraph (D)(ii)); and

`(ii) the increase in the number of families receiving assistance under the State program funded under this part or a program funded with qualified State expenditures (as defined in subparagraph (D)(iv)).

`(C) LIMITATION- The total amount paid to a single State under subparagraph (A) during a fiscal year shall not exceed the amount equal to 15 percent of the State family assistance grant (as defined under subparagraph (B) of subsection (a)(1) and increased under subparagraph (E) of that subsection).

`(D) DEFINITIONS- In this paragraph:

`(i) APPLICABLE PERCENTAGE- The term `applicable percentage' means the higher of--

`(I) 75 percent; and

`(II) the sum of the Federal medical assistance percentage for the State (as defined in section 1905(b)) plus 8 percentage points.

`(ii) ESTIMATED COST OF AN ADDITIONAL RECIPIENT FAMILY- The term `estimated cost of an additional recipient family' means the amount equal to 120 percent of the basic assistance cost (as defined under clause (iii)) for families receiving assistance under the State program funded under this part or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)).

`(iii) BASIC ASSISTANCE COST-

`(I) IN GENERAL- The term `basic assistance cost' means the amount equal to the maximum cash assistance grant for a family consisting of 3 individuals under the State program funded under this part.

`(II) RULE FOR STATES WITH MORE THAN 1 MAXIMUM LEVEL- In the case of a State that has more than 1 maximum cash assistance grant level for families consisting of 3 individuals, the basic assistance cost shall be the amount equal to the maximum cash assistance grant level applicable to the largest number of families consisting of 3 individuals receiving assistance under the State program funded under this part or a State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)).

`(iv) INCREASE IN THE NUMBER OF FAMILIES RECEIVING ASSISTANCE UNDER THE STATE PROGRAM FUNDED UNDER THIS PART OR A PROGRAM FUNDED WITH QUALIFIED STATE EXPENDITURES- The term `increase in the number of families receiving assistance under the State program funded under this part or a program funded with qualified State expenditures' means the increase in--

`(I) the number of families receiving assistance under the State program funded under this part and under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)) in the most recent month for which data from the State are available; as compared to

`(II) the lower of the average monthly number of families receiving such assistance in either of the 2 completed fiscal years immediately preceding the fiscal year in which the State qualifies as a needy State.

`(E) APPROPRIATION- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for the period of fiscal years 2003 through 2007, such sums as are necessary for making contingency fund grants under this subsection in a total amount not to exceed $2,000,000,000.';

(2) by redesignating paragraph (4) as paragraph (2); and

(3) in paragraph (2), as so redesignated--

(A) by striking `(3)(A)' and inserting `(1)'; and

(B) by striking `2-month' and inserting `3-month'.

(b) MODIFICATION OF DEFINITION OF NEEDY STATE- Section 403(b) (42 U.S.C. 603(b)) is further amended--

(1) by striking paragraphs (5) through (7);

(2) by redesignating paragraph (8) as paragraph (5); and

(3) by inserting after paragraph (2) (as redesignated by subsection (a)(2)) the following:

`(3) INITIAL DETERMINATION OF WHETHER A STATE QUALIFIES AS A NEEDY STATE-

`(A) IN GENERAL- For purposes of paragraph (1), a State will be initially determined to be a needy State for a month if the State satisfies at least 2 of the following:

`(i) The--

`(I) average rate of total unemployment in the State for the period consisting of the most recent 3 months for which data are available has increased by the lesser of 1.5 percentage points or by 50 percent over the corresponding 3-month period in either of the 2 most recent preceding fiscal years; or

`(II) average insured unemployment rate for the most recent 3 months for which data are available has increased by 1 percentage point over the corresponding 3-month period in either of the 2 most recent preceding fiscal years.

`(ii) As determined by the Secretary of Agriculture, the monthly average number of households (as of the last day of each month) that participated in the food stamp program in the State in the then most recently concluded 3-month period for which data are available exceeds by at least 10 percent the monthly average number of households (as of the last day of each month) in the State that participated in the food stamp program in the corresponding 3-month period in either of the 2 most recent preceding fiscal years, provided that the Secretary makes a determination that the State's increase in the number of such households was due, in large measure, to economic conditions rather than an expansion of program eligibility requirements.

`(iii) As determined by the Secretary, the monthly average number of families that received assistance under the State program funded under this part or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)) in the most recently concluded 3-month period for which data are available from the State increased by at least 10 percent over the number of such families that received such benefits in the corresponding 3-month period in either of the 2 most recent preceding fiscal years, provided that the Secretary makes a determination that the State's increased caseload was due, in large measure, to economic conditions rather than an expansion of program eligibility requirements.

`(B) DURATION-

`(i) IN GENERAL- A State that qualifies as a needy State--

`(I) under subparagraph (A)(i), shall be considered a needy State until the factor which was used to meet the definition of needy State under that subparagraph for the most recently concluded 3-month period for which data are available, falls below the level attained for such factor in the 3-month period in which the State first qualified as a needy State under that subparagraph;

`(II) under subparagraph (A)(ii), shall be considered a needy State until the average monthly number of households participating in the food stamp program for the most recently concluded 3-month period for which data are available nationally falls below the food stamp base period level; and

`(III) under subparagraph (A)(iii), shall be considered a needy State until the number of families receiving assistance under the State program funded under this part or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)) for the most recently concluded 3-month period for which data are available falls below the TANF base period level.

`(ii) SEASONAL VARIATIONS- Notwithstanding subclauses (II) and (III) of clause (i), a State shall be considered a needy State--

`(I) under subparagraph (A)(ii), if with respect to the State, the monthly average number of households participating in the food stamp program for the most recent 3-month period for which data are available nationally falls below the food stamp base period level and the Secretary determines that this is due to expected seasonal variations in food stamp receipt in the State; and

`(II) under subparagraph (A)(iii), if, with respect to a State, the monthly average number of families receiving assistance under the State program funded under this part or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)) for the most recently concluded 3-month period for which data are available nationally falls below the TANF base period level and the Secretary determines that this is due to expected seasonal variations in assistance receipt in the State.

`(iii) FOOD STAMP BASE PERIOD LEVEL- In this subparagraph, the term `food stamp base period level' means the monthly average number of households participating in the food stamp program that corresponds to the most recent 3-month period for which data are available at the time when the State first was determined to be a needy State under this paragraph.

`(iv) TANF BASE PERIOD LEVEL- In this subparagraph, the term `TANF

base period level' means the monthly average number of families receiving assistance under the State program funded under this part or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)) that corresponds to the most recent 3 months for which data are available at the time when the State first was determined to be a needy State under this paragraph.

`(4) EXCEPTION-

`(A) IN GENERAL- Notwithstanding paragraph (3), a State that has unobligated TANF reserves from prior fiscal years that equal more than 25 percent of the total amount of grants received by the State under subsection (a) (other than welfare-to-work grants made under paragraph (5) of that subsection prior to fiscal year 1999) but not yet obligated as of the end of the preceding fiscal year shall not be a needy State under this subsection.

`(B) DEFINITION OF UNOBLIGATED TANF RESERVES- In subparagraph (A), the term `unobligated TANF reserves' means the lessor of--

`(i) the total amount of grants made to the State (regardless of the fiscal year in which such funds were awarded) under subsection (a) (other than welfare-to-work grants made under paragraph (5) of that subsection prior to fiscal year 1999) but not yet obligated as of the end of the preceding fiscal year; and

`(ii) the total amount of grants made to the State under subsection (a) (other than welfare-to-work grants made under paragraph (5) of that subsection prior to fiscal year 1999) but not yet obligated as of the end of the preceding fiscal year, plus the difference between--

`(I) the pro rata share of the fiscal year grants to be made under subsection (a) to the State (other than such welfare-to-work grants); and

`(II) current year obligations of the total amount of grants made to all States under subsection (a) (regardless of the fiscal year in which such funds were awarded) (other than such welfare-to-work grants) through the end of the most recent calendar quarter.'.

(c) CLARIFICATION OF REPORTING REQUIREMENTS- Paragraph (5) of section 403(b) (42 U.S.C. 603(b)), as redesignated by subsection (b)(2), is amended by striking `on the status of the Fund' and inserting `on the States that qualified for contingency funds and the amount of funding awarded under this subsection'.

SEC. 303. REAUTHORIZATION OF SUPPLEMENTAL GRANTS FOR POPULATION INCREASES.

Section 403(a)(3) (42 U.S.C. 603(a)) is amended--

(1) in subparagraph (A)(ii), in the matter preceding subclause (I), by striking `, 2000, and 2001' and inserting `through 2007';

(2) in subparagraph (C)(iii), in the matter preceding subclause (I), by striking `fiscal years 1998, 1999, 2000, and 2001' and inserting `each of fiscal years 1998 through 2007';

(3) in subparagraph (E), by striking `1998, 1999, 2000, and 2001' and inserting `2003 through 2007'; and

(4) in subparagraph (G), by striking `2001' and inserting `2007'.

SEC. 304. GRANTS TO STATES FOR ADMINISTRATIVE COSTS OF IMPLEMENTING INCREASED WORK REQUIREMENTS AND TO ENHANCE STATE CAPABILITIES AND CASEWORKER TRAINING.

Section 403(a) (42 U.S.C. 603(a)), as amended by section 111, is amended by adding at the end the following:

`(7) GRANTS TO STATES FOR ADMINISTRATIVE COSTS OF IMPLEMENTING INCREASED WORK REQUIREMENTS AND TO ENHANCE STATE CAPABILITIES AND CASEWORKER TRAINING-

`(A) IN GENERAL- The Secretary shall pay each eligible State (as defined in section 402(a)) the amount determined under subparagraph (C) for a fiscal year.

`(B) USE OF FUNDS- Funds made available through a grant made under this paragraph shall be used for administrative costs incurred by a State in order to comply with the work requirements applicable to recipients under the State program funded under this part as a result of the amendments made by the Work and Family Act of 2002, for technical enhancement of State capabilities with respect to the administration of the State program, and for caseworker training, including any of the following:

`(1) Upgrading computer systems and data processing equipment.

`(2) Hiring additional staff to comply with reporting requirements and work requirements imposed under this part.

`(3) Incurring expenditures for resources and support necessary to comply with increased administrative requirements resulting from the amendments made to this part by the Work and Family Act of 2002.

`(4) Developing staff training and career development programs in information technology to improve the quality of services and maximize the effectiveness of the existing workforce responsible for administering the State program funded under this part.

`(5) Developing proposals to redesign the delivery of services under the State program funded under this part and to maximize efficiency and enhance public satisfaction through the establishment of joint labor committees with respect to the administration of employment and training programs.

`(6) Developing and implementing model case management practices and policies that are designed to maintain a stable, skilled, and professional workforce.

`(7) Developing innovative training programs to improve the quality of services provided under the State program funded under this part, including staff training on program requirements and services, referral of recipients to all other programs and services for which recipients are eligible, screening of recipients for serious barriers to employment and referral of recipients with such barriers to qualified specialists, cultural diversity and sensitivity, and the rights of recipients under all laws applicable to the activities of the State program.

`(C) ALLOCATION OF FUNDS-

`(i) IN GENERAL- Subject to clauses (ii) and (iii), out of the funds appropriated under subparagraph (E) for a fiscal year, the Secretary shall pay to each eligible State an amount equal to ratio of the number of recipients of assistance under the State program funded under this part in the State to the number of recipients of assistance under all State programs funded under this part.

`(ii) MINIMUM ALLOCATION- No eligible State shall receive a payment of a grant under this paragraph for a fiscal year that is less than the amount equal to 1 percent of the amount appropriated under subparagraph (E) for such fiscal year.

`(iii) PRO RATA REDUCTIONS- If the amount appropriated pursuant to subparagraph (E) for a fiscal year is less than the total amount of payments otherwise required to be made under clauses (i) and (ii) for the fiscal year, then the amount otherwise payable to any eligible State for the fiscal year under this subparagraph shall be reduced by a percentage equal to the amount so appropriated divided by such total amount.

`(D) REQUIREMENT- Amounts paid to an eligible State under this paragraph for a fiscal year shall be subject to the same requirements as amounts paid to the State under paragraph (1).

`(E) APPROPRIATION- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 2003 through 2007, $50,000,000 for making payments to States under this paragraph.'.

SEC. 305. CREDIT FOR STATE EXPENDITURES TO CARRY OUT THE PURPOSES OF TANF.

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

(1) in item (aa), by striking `or' at the end;

(2) in item (bb), by striking the period and inserting `; or'; and

(3) by adding at the end the following:

`(cc) the expenditures are directly related to 1 of the purposes set forth in section 401(a).'.

SEC. 306. REAUTHORIZATION OF GRANTS FOR INDIAN TRIBES AND PENALTY FOR FAILURE TO MAINTAIN HISTORIC STATE EFFORT.

(a) REAUTHORIZATION OF GRANTS FOR INDIAN TRIBES- Paragraphs (1)(A) and (2)(A) of section 412(a) (42 U.S.C. 612(a)) are each amended by striking `1997' and all that follows through `2002' and inserting `2003 through 2007'.

(b) CONTINUATION OF PENALTIES FOR FAILURE OF A STATE TO MAINTAIN CERTAIN LEVEL OF HISTORIC EFFORT- Section 409(a)(7) (42 U.S.C. 608(a)(7)) is amended--

(1) in subparagraph (A), by striking `1998' and all that follows through `2003' and inserting `2003, 2004, 2005, 2006, or 2007'; and

(2) in subparagraph (B)(ii), by striking `1997 through 2002' and inserting `2003 through 2007'.

SEC. 307. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS AND SERVICES.

Section 404(e) (42 U.S.C. 604(e)) is amended--

(1) in the subsection heading, by striking `ASSISTANCE' and inserting `BENEFITS OR SERVICES'; and

(2) by striking `assistance' and inserting `any benefit or service that may be provided'.

SEC. 308. PROMOTING WORK AND RESPONSIBILITY AMONG ALL FAMILIES WITH CHILDREN.

(a) STATE OPTION TO ASSIST LEGAL IMMIGRANTS UNDER TANF-

(1) IN GENERAL- Section 403(c)(2) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)) is amended by adding at the end the following:

`(L) At State option, assistance or benefits under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).'.

(2) CONFORMING AMENDMENT- Section 408(e) of the Social Security Act (42 U.S.C. 608(e)) is amended to read as follows:

`(e) ELIGIBILITY OF CERTAIN ALIENS- Except as provided in subsection (f) (relating to deeming requirements), at State option, a State may provide assistance, benefits, or services to a qualified alien (as defined in subsections (b) and (c) of section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641)) under the State program funded under this part or with qualified State expenditures (as defined in section 409(a)(7)(B)(i)) in the same manner and to the same extent as a citizen of the United States would be provided such assistance, benefits, or services.'.

(b) STATE PLAN REQUIREMENT- Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended by adding at the end the following:

`(v) In the case of a State that elects the option under section 408(e) to provide benefits or assistance to qualified aliens, the document shall include--

`(I) an explanation of how the State shall ensure that, with respect to such aliens who entered the United States after 1996, the income of any sponsor of such an alien is considered when determining the alien's eligibility for any means-tested benefits; and

`(II) a description of the process the State uses to request reimbursement for any means-tested benefits provided to such an alien who entered the United States after 1996, from any sponsor of the alien in accordance with the requirements of section 213A of the Immigration and Nationality Act (8 U.S.C. 1183a) and the legal remedies the State may use to enforce affidavits of support under that section.'.

(c) STATE AUTHORITY TO PROVIDE STATE AND LOCAL PUBLIC BENEFITS FOR CERTAIN ALIENS- Section 411(d) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1621(d)) is amended--

(1) in the heading, by inserting `AND OTHER' before `ALIENS'; and

(2) by inserting `or who otherwise is not a qualified alien (as defined in section 431)' after `United States'.

(d) GRANTS TO STATES DISPROPORTIONATELY IMPACTED BY FEDERAL IMMIGRATION POLICY- Section 403(a) (42 U.S.C. 603(a)), as amended by section 304, is amended by adding at the end the following:

`(8) GRANTS TO STATES DISPROPORTIONATELY IMPACTED BY FEDERAL IMMIGRATION POLICY-

`(A) IN GENERAL- The Secretary shall pay each State described in subparagraph (B) the amount determined under subparagraph (C) for a fiscal year.

`(B) STATE DESCRIBED- For purposes of subparagraph (A), a State is described in this subparagraph if the State notifies the Secretary not later than June 1 of the fiscal year preceding the fiscal year for which the State is to receive a payment under this paragraph that, with respect to the fiscal year for which such a grant is to be made, the State intends to provide assistance, benefits, or services under the State program funded under this part or with qualified State expenditures (as defined in section 409(a)(7)(B)(i)) to all qualified aliens in accordance with section 408(e).

`(C) ALLOCATION OF FUNDS-

`(i) IN GENERAL- Subject to clause (ii), the Secretary shall allocate the funds appropriated under subparagraph (E) for a fiscal year as follows:

`(I) An amount equal to 40 percent of such funds shall be distributed among the States described in subparagraph (B) for such fiscal year based on the number of low-income children in noncitizen families in all such States, as determined by the Secretary.

`(II) An amount equal to 60 percent of such funds shall be distributed among the States described in subparagraph (B) for such fiscal year based on the increase during the period that begins with 1996 and ends with the most recent year for which data is available in the number of noncitizens (all ages, all incomes) in the State as compared to the increase in such number of such noncitizens for all such States for the fiscal year.

`(ii) PRO RATA REDUCTIONS- If the amount appropriated pursuant to subparagraph (E) for a fiscal year is less than the total amount of payments otherwise required to be made under clause (i) for the fiscal year, then the amount otherwise payable to any State described in subparagraph (B) for the fiscal year under clause (i) shall be reduced by a percentage equal to the amount so appropriated divided by such total amount.

`(iii) NO JUDICIAL REVIEW- Notwithstanding any other provision of law, the allocation of funds under this subparagraph for a fiscal year shall not be subject to judicial review.

`(D) REQUIREMENT- Amounts paid to a State under this paragraph for a fiscal year shall be subject to the same requirements as amounts paid to the State under paragraph (1).

`(E) APPROPRIATION- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 2003 through 2007, $50,000,000 for making payments to States under this paragraph.'.

SEC. 309. DATA COLLECTION AND REPORTING.

Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended in the matter preceding clause (i), by striking `(except for information relating to activities carried out under section 403(a)(5))' and inserting ` (and in complying with this requirement, the Secretary shall require not more than 10 States to ensure that the following case record information is reported in a manner that permits analysis of such information by race, ethnicity or national origin, primary language, gender, and educational level, including analysis using a combination of these factors, and shall submit an annual report to Congress containing such data)'.

SEC. 310. DEFINITION OF ASSISTANCE.

Section 419 (42 U.S.C. 619) is amended by adding at the end the following:

`(6) ASSISTANCE- The term `assistance' means cash benefits and does not include child care or other support services.'.

SEC. 311. AUTHORITY TO USE TANF FUNDS FOR HOUSING BENEFITS.

(a) IN GENERAL- Section 404 (42 U.S.C. 604) is amended by inserting at the end the following:

`(l) USE OF FUNDS FOR SUPPLEMENTAL HOUSING BENEFITS-

`(1) IN GENERAL- The provision by a State of supplemental housing benefits to or on behalf of an individual eligible for assistance under the State program funded under this part, using funds from a grant made under section 403(a) of this title, shall not be considered to be the provision of assistance to the individual under the State program funded under this part for any purpose except in determining the allowability of the expenditure under section 401(a)(1).

`(2) PERMITTED USE OF FUNDS- A State may not use any part of the funds from a grant made under section 403 to supplant rather than supplement State expenditures on housing-related programs.

`(3) DEFINITION OF SUPPLEMENTAL HOUSING BENEFITS- In this subsection, the term `supplemental housing benefits' means payments made to or on behalf of an individual to reduce or reimburse the costs incurred by the individual for housing accommodations, and the receipt of which does not reduce the amount of assistance, benefits, or services an individual would otherwise receive under the State program funded under this part or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)).'.

(b) STATE PLAN- Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as amended by section 308(b), is amended by adding at the end the following:

`(vi) The document shall describe--

`(I) the primary problems that families receiving assistance and families who have recently stopped receiving assistance under the State program funded under this part experience in securing and retaining adequate, affordable housing and the estimated extent of each such problem, including the price of such housing in various areas of the State that include a large proportion of recipients of assistance under the State program;

`(II) the steps that have been and will be taken by the State and other public or private entities that administer housing programs in the State to address the problems described in subclause (I);

`(III) the methods the State has adopted to identify barriers to work posed by the living arrangement, housing cost, and housing location of families eligible for the State program funded under this part; and

`(IV) the services and benefits that have been or will be provided by the State or other public or private entities to help families overcome the barriers so identified.'.

Subtitle B--Resources Under Other Programs

SEC. 321. RESTORATION OF FUNDING FOR THE SOCIAL SERVICES BLOCK GRANT.

(a) RESTORATION OF FUNDS FOR THE SOCIAL SERVICES BLOCK GRANT- Section 2003(c) (42 U.S.C. 1379b(c)) is amended--

(1) in paragraph (10), by striking `and';

(2) in paragraph (11), by striking `and each fiscal year thereafter.' and inserting `; and'; and

(3) by adding at the end the following:

`(12) $1,900,000,000 for fiscal year 2003;

`(13) $1,950,000,000 for fiscal year 2004;

`(14) $2,050,000,000 for fiscal year 2005;

`(15) $2,200,000,000 for fiscal year 2006; and

`(16) $2,800,000,000 for fiscal year 2007 and each fiscal year thereafter.'.

(b) RESTORATION OF AUTHORITY TO TRANSFER UP TO 10 PERCENT OF TANF FUNDS- Section 404(d)(2) (42 U.S.C. 604(d)(2)) is amended to read as follows:

`(2) LIMITATION ON AMOUNT TRANSFERABLE TO TITLE XX PROGRAMS- A State may use not more than 10 percent of the amount of any grant made to the State under section 403(a) for a fiscal year to carry out State programs pursuant to title XX.'.

SEC. 322. ONE-YEAR EXTENSION AND REVISION AND SIMPLIFICATION OF THE TRANSITIONAL MEDICAL ASSISTANCE PROGRAM (TMA).

(a) OPTION OF CONTINUOUS ELIGIBILITY FOR 12 MONTHS; OPTION OF CONTINUING COVERAGE FOR UP TO AN ADDITIONAL YEAR-

(1) OPTION OF CONTINUOUS ELIGIBILITY FOR 12 MONTHS BY MAKING REPORTING REQUIREMENTS OPTIONAL- Section 1925(b) (42 U.S.C. 1396r-6(b)) is amended--

(A) in paragraph (1), by inserting `, at the option of a State,' after `and which';

(B) in paragraph (2)(A), by inserting `Subject to subparagraph (C)--' after `(A) NOTICES- ';

(C) in paragraph (2)(B), by inserting `Subject to subparagraph (C)--' after `(B) REPORTING REQUIREMENTS- ';

(D) by adding at the end the following new subparagraph:

`(C) STATE OPTION TO WAIVE NOTICE AND REPORTING REQUIREMENTS- A State may waive some or all of the reporting requirements under clauses (i) and (ii) of subparagraph (B). Insofar as it waives such a reporting requirement, the State need not provide for a notice under subparagraph (A) relating to such requirement.'; and

(E) in paragraph (3)(A)(iii), by inserting `the State has not waived under paragraph (2)(C) the reporting requirement with respect to such month under paragraph (2)(B) and if' after `6-month period if'.

(2) STATE OPTION TO EXTEND ELIGIBILITY FOR LOW-INCOME INDIVIDUALS FOR UP TO 12 ADDITIONAL MONTHS- Section 1925 (42 U.S.C. 1396r-6) is further amended--

(A) by redesignating subsections (c) through (f) as subsections (d) through (g), respectively; and

(B) by inserting after subsection (b) the following new subsection:

`(c) STATE OPTION OF UP TO 12 MONTHS OF ADDITIONAL ELIGIBILITY-

`(1) IN GENERAL- Notwithstanding any other provision of this title, each State plan approved under this title may provide, at the option of the State, that the State shall offer to each family which

received assistance during the entire 6-month period under subsection (b) and which meets the applicable requirement of paragraph (2), in the last month of the period the option of extending coverage under this subsection for the succeeding period not to exceed 12 months.

`(2) INCOME RESTRICTION- The option under paragraph (1) shall not be made available to a family for a succeeding period unless the State determines that the family's average gross monthly earnings (less such costs for such child care as is necessary for the employment of the caretaker relative) as of the end of the 6-month period under subsection (b) does not exceed 185 percent of the official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved.

`(3) APPLICATION OF EXTENSION RULES- The provisions of paragraphs (2), (3), (4), and (5) of subsection (b) shall apply to the extension provided under this subsection in the same manner as they apply to the extension provided under subsection (b)(1), except that for purposes of this subsection--

`(A) any reference to a 6-month period under subsection (b)(1) is deemed a reference to the extension period provided under paragraph (1) and any deadlines for any notices or reporting and the premium payment periods shall be modified to correspond to the appropriate calendar quarters of coverage provided under this subsection; and

`(B) any reference to a provision of subsection (a) or (b) is deemed a reference to the corresponding provision of subsection (b) or of this subsection, respectively.'.

(b) STATE OPTION TO WAIVE RECEIPT OF MEDICAID FOR 3 OF PREVIOUS 6 MONTHS TO QUALIFY FOR TMA- Section 1925(a)(1) (42 U.S.C. 1396r-6(a)(1)) is amended by adding at the end the following: `A State may, at its option, also apply the previous sentence in the case of a family that was receiving such aid for fewer than 3 months, or that had applied for and was eligible for such aid for fewer than 3 months, during the 6 immediately preceding months described in such sentence.'.

(c) 1-YEAR EXTENSION OF SUNSET FOR TMA-

(1) IN GENERAL- Subsection (g) of section 1925 (42 U.S.C. 1396r-6), as redesignated under subsection (a)(2)(A), is further redesignated as subsection (i) and is amended by striking `2002' and inserting `2003'.

(2) CONFORMING AMENDMENT- Section 1902(e)(1)(B) (42 U.S.C. 1396a(e)(1)(B)) is amended by striking `2002' and inserting `2003'.

(d) CMS REPORT ON ENROLLMENT AND PARTICIPATION RATES UNDER TMA- Section 1925 (42 U.S.C. 1396r-6), as amended by subsections (a)(2)(A) and (c), is amended by inserting after subsection (f) the following:

`(g) ADDITIONAL PROVISIONS-

`(1) COLLECTION AND REPORTING OF PARTICIPATION INFORMATION- Each State shall--

`(A) collect and submit to the Secretary, in a format specified by the Secretary, information on average monthly enrollment and average monthly participation rates for adults and children under this section; and

`(B) make such information publicly available.

Such information shall be submitted under subparagraph (A) at the same time and frequency in which other enrollment information under this title is submitted to the Secretary. Using such information, the Secretary shall submit to Congress annual reports concerning such rates.'.

(e) COORDINATION OF WORK- Section 1925(g) (42 U.S.C. 1396r-6(g)), as added by subsection (d), is amended by adding at the end the following new paragraph:

`(2) COORDINATION WITH ADMINISTRATION FOR CHILDREN AND FAMILIES- The Administrator of the Centers for Medicare & Medicaid Services, in carrying out this section, shall work with the Assistant Secretary for the Administration for Children and Families to develop guidance or other technical assistance for States regarding best practices in guaranteeing access to transitional medical assistance under this section.'.

(f) ELIMINATION OF TMA REQUIREMENT FOR STATES THAT EXTEND COVERAGE TO CHILDREN AND PARENTS THROUGH 185 PERCENT OF POVERTY-

(1) IN GENERAL- Section 1925 (42 U.S.C. 1396r-6) is further amended by inserting after subsection (g), as added by subsection (d), the following:

`(h) PROVISIONS OPTIONAL FOR STATES THAT EXTEND COVERAGE TO CHILDREN AND PARENTS THROUGH 185 PERCENT OF POVERTY- A State may (but is not required to) meet the requirements of subsections (a) and (b) if it provides for medical assistance under this title (whether under section 1931, through a waiver under section 1115, or otherwise) to families (including both children and caretaker relatives) the average gross monthly earning of which (less such costs for such child care as is necessary for the employment of a caretaker relative) is at or below a level that is at least 185 percent of the official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved.'.

(2) CONFORMING AMENDMENTS- Section 1925 (42 U.S.C. 1396r-6) is further amended, in subsections (a)(1) and (b)(1), by inserting `, but subject to subsection (h),' after `Notwithstanding any other provision of this title,' each place it appears.

(g) REQUIREMENT OF NOTICE FOR ALL FAMILIES LOSING TANF- Subsection (a)(2) of section 1925 (42 U.S.C. 1396r-6) is amended by adding after and below subparagraph (B), the following:

`Each State shall provide, to families whose aid under part A or E of title IV has terminated but whose eligibility for medical assistance under this title continues, written notice of their ongoing eligibility for such medical assistance. If a State makes a determination that any member of a family whose aid under part A or E of title IV is being terminated is also no longer eligible for medical assistance under this title, the notice of such determination shall be supplemented by a 1-page notification form describing the different ways in which individuals and families may qualify for such medical assistance and explaining that individuals and families do not have to be receiving aid under part A or E of title IV in order to qualify for such medical assistance. Such notice shall further be supplemented by information on how to apply for child health assistance under the State children's health insurance program under title XXI and how to apply for medical assistance under this title.'.

(h) EXTENDING USE OF OUTSTATIONED WORKERS TO ACCEPT APPLICATIONS FOR TRANSITIONAL MEDICAL ASSISTANCE- Section 1902(a)(55) (42 U.S.C. 1396a(a)(55)) is amended by inserting `and under section 1931' after `(a)(10)(A)(ii)(IX)'.

(i) EFFECTIVE DATES-

(1) IN GENERAL- Except as provided in this subsection, the amendments made by this section shall apply to calendar quarters beginning on or

after October 1, 2002, without regard to whether or not final regulations to carry out such amendments have been promulgated by such date.

(2) NOTICE- The amendment made by subsection (g) shall take effect 6 months after the date of enactment of this Act.

(3) DELAY PERMITTED FOR STATE PLAN AMENDMENT- In the case of a State plan for medical assistance under title XIX of the Social Security Act which the Secretary of Health and Human Services determines requires State legislation (other than legislation appropriating funds) in order for the plan to meet the additional requirements imposed by the amendments made by this section, the State plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet these additional requirements before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.

SEC. 323. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID PROGRAM AND TITLE XXI.

(a) MEDICAID PROGRAM- Section 1903(v) (42 U.S.C. 1396b(v)) is amended--

(1) in paragraph (1), by striking `paragraph (2)' and inserting `paragraphs (2) and (4)'; and

(2) by adding at the end the following:

`(4)(A) A State may elect (in a plan amendment under this title) to provide medical assistance under this title (including under a waiver authorized by the Secretary), notwithstanding sections 402(b) and 403 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 but, except as provided in subparagraph (B), consistent with sections 401(a) and 421 of such Act, for aliens who are lawfully residing in the United States (including battered aliens described in section 431(c) of such Act) and who are otherwise eligible for such assistance, within any of the following eligibility categories:

`(i) PREGNANT WOMEN- Women during pregnancy (and during the 60-day period beginning on the last day of the pregnancy).

`(ii) CHILDREN- Children (as defined under such plan), including optional targeted low-income children described in section 1905(u)(2)(B).

`(B) Notwithstanding section 421 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, in the case of a State that has elected to provide medical assistance to a category of aliens under subparagraph (A), no debt shall accrue under an affidavit of support against any sponsor of such an alien on the basis of provision of assistance to such category and the cost of such assistance shall not be considered as an unreimbursed cost.'.

(b) TITLE XXI- Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is amended by adding at the end the following:

`(E) Section 1903(v)(4) (relating to optional coverage of categories of lawful resident alien pregnant women and children), but only with respect to an eligibility category under this title, if the same eligibility category has been

elected under such section for purposes of title XIX.'.

(c) EFFECTIVE DATE- The amendments made by this section take effect on October 1, 2002, and apply to medical assistance and child health assistance furnished on or after such date, whether or not regulations implementing such amendments have been issued.

SEC. 324. PATHWAY TO SELF-SUFFICIENCY GRANTS TO IMPROVE COORDINATION OF ASSISTANCE FOR LOW-INCOME FAMILIES.

(a) DEFINITIONS- In this section:

(1) ELIGIBLE APPLICANT- The term `eligible applicant' means a State or local government agency or a nonprofit entity.

(2) SECRETARY- The term `Secretary' means the Secretary of Health and Human Services.

(3) STATE- The term `State' means each of the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, and the United States Virgin Islands.

(4) SUPPORT PROGRAM FOR LOW-INCOME FAMILIES- The term `support program for low-income families' means a program designed to provide low-income families and noncustodial parents who need help with obtaining employment and fulfilling child support obligations to children receiving assistance under the temporary assistance to needy families program established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) with assistance or benefits to enable the family or noncustodial parent to become self-sufficient and includes--

(A) the temporary assistance to needy families program established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.);

(B) the food stamp program established under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);

(C) the medicaid program funded under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.);

(D) the State children's health insurance program (SCHIP) funded under title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.);

(E) the child care program funded under the Child Care Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.);

(F) the child support program funded under part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.);

(G) the earned income tax credit under section 32 of the Internal Revenue Code of 1986;

(H) the low-income home energy assistance program (LIHEAP) established under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.);

(I) the special supplemental nutrition program for women, infants, and children (WIC) established under section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786);

(J) programs under the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.);

(K) programs supporting low-income housing assistance programs; and

(L) any other Federal, State, or locally funded program designed to provide family and work support to low-income families.

(b) AUTHORITY TO AWARD GRANTS-

(1) IN GENERAL- The Secretary may award grants to eligible applicants to--

(A) improve the coordination of support programs for low-income families and noncustodial parents described in subsection (a)(4); and

(B) conduct outreach to such families and noncustodial parents to promote enrollment in such programs.

(2) PREFERENCE- In awarding grants under this section, the Secretary shall give preference to eligible applicants that include in the application submitted under subsection (c) documentation demonstrating that the eligible applicant will collaborate with other Federal, State, or local agencies or nonprofit entities in carrying out activities under the grant.

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

(d) ANNUAL REPORTS-

(1) IN GENERAL- The Secretary shall submit an interim and final report to Congress describing the uses of grant funds awarded under this section.

(2) DATES FOR SUBMISSION- With respect to the reports required under paragraph (1), the Secretary shall submit--

(A) the interim report, not later than December 31, 2005; and

(B) the final report, not later than December 31, 2008.

(e) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section $50,000,000 for the period of fiscal years 2003 through 2007.

(f) ANNUAL ASSESSMENT OF REGIONAL LABOR MARKETS TO TARGET HIGHER ENTRY LEVEL WAGE OPPORTUNITIES IN INDUSTRIES EXPERIENCING LABOR SHORTAGES-

(1) IN GENERAL- An State to which a grant is made under this section annually shall conduct an assessment of its regional labor markets that includes the following:

(A) LABOR MARKET- The assessment shall--

(i) identify industries or occupations that have or expect growth, the loss of skilled workers, or that have a demand for a subset of workers;

(ii) identify the entry-level education and skills requirements for the industries or occupations that have or anticipate a need for workers; and

(iii) analyze the entry-level wages and benefits in identified industries or occupations.

(B) JOB SEEKERS- The assessment shall create a profile of the characteristics of the unemployed and underemployed residents of the State, including educational attainment, barriers to employment, geographic concentrations, and access to needed support services.

(C) EDUCATION AND TRAINING INFRASTRUCTURE- The assessment shall create a profile of the State's available education, training, and support services to prepare workers for the identified industries or occupations.

(D) ALIGNING INDUSTRIES AND JOB SEEKER NEEDS- The assessment shall compare the characteristics of the identified industries or occupations to the profiles created under subparagraphs (B) and (C).

(2) PROVISION OF INFORMATION TO LOCALITIES- The State shall share with local political subdivisions of the State--

(A) information regarding the existence of higher entry-wage job opportunities in industries experiencing labor shortages; and

(B) opportunities for collaboration with institutions of higher education, community-based organizations, and economic development and welfare agencies.

(3) DATA- A State may use data available as of the date the State begins an assessment under paragraph (1) to conduct such assessment if such

data provides the information necessary to conduct the assessment described in that paragraph.

(4) REPORTS-

(A) STATE REPORTS- Each State to which a grant is made under this section annually shall submit a report to the Secretary that contains the assessment required under paragraph (1).

(B) REPORT TO CONGRESS- The Secretary annually shall submit a report to Congress compiling the State reports submitted under subparagraph (A).

SEC. 325. GAO STUDY ON IMPACT OF BAN ON SSI BENEFITS FOR LEGAL IMMIGRANTS.

(a) STUDY- The Comptroller General of the United States shall conduct a study to determine the impact of the prohibition under section 402 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612) with respect to the eligibility of qualified aliens (as defined in section 431 of such Act (8 U.S.C. 1641)) for benefits under the supplemental security income program under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.), including supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of such Act (42 U.S.C. 1382e) and payments pursuant to an agreement entered into under section 212(b) of Public Law 93-66.

(b) REPORT- Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit a report to Congress on the study conducted under subsection (a) that includes such recommendations for legislative action as the Comptroller General determines appropriate.

TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

(a) IN GENERAL- Except as otherwise provided, the amendments made by this Act shall take effect on October 1, 2002, and shall apply to payments under parts A and D of title IV of the Social Security Act for calendar quarters beginning on or after such date, without regard to whether regulations to implement the amendments are promulgated by such date.

(b) DELAY PERMITTED IF STATE LEGISLATION REQUIRED- In the case of a State plan under section 402(a) or 454 of the Social Security Act (42 U.S.C. 602(a), 654) which the Secretary of Health and Human Services determines requires State legislation (other than legislation appropriating funds) in order for the plan to meet the additional requirements imposed by the amendments made by this Act, the State plan shall not be regarded as failing to comply with the requirements of such section 402(a) or 454 solely on the basis of the failure of the plan to meet such additional requirements before the 1st day of the 1st calendar quarter beginning after the close of the 1st regular session of the State legislature that begins after the date of enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.

END