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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.

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