HR 4669 IH

107th CONGRESS

2d Session

H. R. 4669

To provide for racial equity and fair treatment under the program of block grants to States for temporary assistance for needy families.

IN THE HOUSE OF REPRESENTATIVES

MAY 7, 2002

Ms. EDDIE BERNICE JOHNSON of Texas (for herself, Ms. KILPATRICK, Mr. OWENS, Ms. LEE, Mr. CONYERS, Mr. HILLIARD, Ms. MCKINNEY, Mr. BLAGOJEVICH, Mr. RUSH, Mr. PAYNE, Ms. VELAZQUEZ, Mr. RANGEL, Ms. WATERS, and Mr. CUMMINGS) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To provide for racial equity and fair treatment under the program of block grants to States for temporary assistance for needy families.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Racial Equity and Fair Treatment Act of 2002'.

SEC. 2. TABLE OF CONTENTS.

The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Amendment of Social Security Act.

TITLE I--ENSURING EQUAL ACCESS

Sec. 101. Competitive grants to improve access to various benefit programs.

Sec. 102. Assessments for TANF recipients.

Sec. 103. Revision of work activities.

Sec. 104. Provision of interpretation and translation services.

TITLE II--STRENGTHENING FAIR TREATMENT AND ANTIDISCRIMINATION PROTECTIONS

Subtitle A--Strengthening and Streamlining of Antidiscrimination Protections

Sec. 201. Requirement to establish expedited process for discrimination complaints.

Sec. 202. Establishment of standardized, fair sanction process.

Sec. 203. Requirement to provide opportunity to appeal adverse decision.

Sec. 204. Notification of potential services and protections.

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

Sec. 205. Requirement to provide information to individuals who are, or are at risk of being, sanctioned.

Sec. 206. Nondiscrimination.

Sec. 207. Ban on diversion of potential applicants for assistance.

Subtitle B--Related Provisions

Sec. 211. Ban on penalizing entire family for misconduct of 1 family member.

Sec. 212. Eliminate double jeopardy for recipients with past drug offenses.

Sec. 213. 5-year time limit.

TITLE III--FAIRNESS FOR IMMIGRANTS

Sec. 301. Treatment of aliens under the TANF program.

Sec. 302. Treatment of aliens under the SSI program.

Sec. 303. Inclusion of participation in English-as-a-second-language program among permissible work activities.

TITLE IV--ENCOURAGE RACIAL EQUALITY

Sec. 401. Racial performance measure as evaluation criterion in determining high performance bonus.

Sec. 402. Ban on violating antidiscrimination law.

Sec. 403. Data collection and reporting.

Sec. 404. Access to welfare; welfare outcomes.

Sec. 405. Longitudinal studies of TANF recipients.

SEC. 3. AMENDMENT OF SOCIAL SECURITY ACT.

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

TITLE I--ENSURING EQUAL ACCESS

SEC. 101. COMPETITIVE GRANTS TO IMPROVE ACCESS TO VARIOUS BENEFIT PROGRAMS.

(a) PURPOSES- The purposes of this section are to--

(1) inform low-income families with children about programs available to families leaving welfare and other programs to support low-income families with children;

(2) provide incentives to States and counties to improve and coordinate application and renewal procedures for low-income family with children support programs; and

(3) track the extent to which low-income families with children receive the benefits and services for which they are eligible.

(b) DEFINITIONS- In this section:

(1) LOCALITY- The term `locality' means a municipality that does not administer a program funded under part A of title IV of the Social Security Act (in this section referred to as `TANF').

(2) LOW-INCOME FAMILY WITH CHILDREN SUPPORT PROGRAM- The term `low-income family with children support program' means a program designed to provide low-income families with assistance or benefits to enable the family to become self-sufficient and includes--

(A) TANF;

(B) the food stamp program established under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) (in this section referred to as `food stamps');

(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.); and

(K) any other Federal or State funded program designed to provide family and work support to low-income families with children.

(3) NONPROFIT- The term `nonprofit', as applied to a school, agency, organization, or institution means a school, agency, organization, or institution owned and operated by 1 or more nonprofit corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

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

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

(1) STATES AND COUNTIES-

(A) IN GENERAL- The Secretary may award grants to States and counties to pay the Federal share of the costs involved in improving the administration of low-income family with children support programs, including simplifying application, recertification, reporting, and verification rules, and promoting participation in such programs.

(B) FEDERAL SHARE- The Federal share shall be 80 percent.

(2) NONPROFITS AND LOCALITIES- The Secretary may award grants to nonprofits and localities to promote participation in low-income family with children support programs, and distribute information about and develop service centers for low-income family with children support programs.

(d) GRANT APPROVAL CRITERIA-

(1) IN GENERAL- The Secretary, in consultation with the Secretary of Agriculture, shall establish criteria for approval of an application for a grant under this section that include consideration of--

(A) the extent to which the proposal, if funded, is likely to result in improved service and higher participation rates in low-income children's support programs;

(B) an applicant's ability to reach hard-to-serve populations;

(D) any partnerships between the public and private sector in the applicant's grant proposal.

(2) SEPARATE CRITERIA- Separate criteria shall be established for the grants authorized under paragraphs (1) and (2) of subsection (c).

(e) USES OF FUNDS-

(1) STATES AND COUNTIES-

(A) IMPROVEMENTS IN PROGRAMS- Grants awarded to States and counties under subsection (c)(1) shall be used to--

(i) simplify low-income family with children support program application, recertification, reporting, and verification rules;

(ii) create uniformity in eligibility criteria for low-income family with children support programs;

(iii) develop options for families to apply for low-income family with children support programs through the telephone, mail, facsimile, Internet, or electronic mail, and submit any recertifications or reports required for such families through these options;

(iv) co-locate eligibility workers for various low-income family with children support programs at strategically located sites;

(v) develop or enhance one-stop service centers for low-income family with children support programs, including establishing evening and weekend hours at these centers; and

(vi) improve training of staff in low-income families with children support programs to enhance their ability to enroll eligible applicants in low-income family with children support programs, provide case management, and refer eligible applicants to other appropriate programs.

(B) CUSTOMER SURVEYS-

(i) IN GENERAL- A grant awarded to a State or county under subsection (c)(1) shall be used to carry out a customer survey.

(ii) MODEL SURVEYS- The customer survey under clause (i) of this subparagraph shall be modeled after a form developed by the Secretary under subsection (g).

(iii) REPORTS TO SECRETARY- Not later than 1 year after a State or county is awarded a grant under subsection (c)(1), and annually thereafter, the State or county shall submit a report to the Secretary detailing the results of the customer survey carried out under clause (i) of this subparagraph.

(iv) REPORTS TO PUBLIC- A State or county receiving a grant under subsection (c)(1) and the Secretary shall make the report required under clause (iii) of this subparagraph available to the public.

(v) PUBLIC COMMENT- A State or county receiving a grant under subsection (c)(1) shall accept public comments and hold public hearings on the report made available under clause (iv) of this subparagraph.

(i) IN GENERAL- A grant awarded to a State or county under subsection (c)(1) shall be used to implement a tracking system to determine the level of participation in low-income family with children support programs of the eligible population.

(ii) REPORTS- Not later than 1 year after a State or county is awarded a grant under subsection (c)(1), and annually thereafter, the State or county shall submit a report to the Secretary detailing the effectiveness of the tracking system implemented under clause (i) of this subparagraph.

(D) IN-PERSON INTERVIEWS- A State or county awarded a grant under subsection (c)(1)

may expend funds made available under the grant to provide for reporting and recertification procedures through the telephone, mail, facsimile, Internet, or electronic mail.

(E) JURISDICTION-WIDE IMPLEMENTATION-

(i) IN GENERAL- A grant awarded to a State or county under subsection (c)(1) shall be used for activities throughout the jurisdiction.

(ii) EXCEPTION- A State or county awarded a grant under subsection (c)(1) may use grant funds to develop one-stop service centers and telephone, mail, facsimile, Internet, or electronic mail application and renewal procedures for low-income family with children support programs without regard to the requirements of clause (i) of this subparagraph.

(F) SUPPLEMENT NOT SUPPLANT- Funds provided to a State or county under a grant awarded under subsection (c)(1) shall be used to supplement and not supplant other State or county public funds expended to provide support services for low-income families.

(2) NONPROFITS AND LOCALITIES- A grant awarded to a nonprofit or locality under subsection (c)(2) shall be used to--

(A) develop one-stop service centers for low-income family with children support programs in cooperation with States and counties; or

(B) provide information about and referrals to low-income family with children support programs through the dissemination of materials at strategic locations, including schools, clinics, and shopping locations.

(f) APPLICATION-

(1) IN GENERAL- Each applicant desiring a grant under paragraph (1) or (2) of subsection (c) shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

(2) STATES AND COUNTIES-

(A) NON-FEDERAL SHARE- Each State or county applicant shall provide assurances that the applicant will pay the non-Federal share of the activities for which a grant is sought.

(B) PARTNERSHIPS- Each State or county applicant shall submit a memorandum of understanding demonstrating that the applicant has entered into a partnership to coordinate its efforts under the grant with the efforts of other State and county agencies that have responsibility for providing low-income families with assistance or benefits.

(g) DUTIES OF THE SECRETARY-

(1) SURVEY FORM- The Secretary, in cooperation with other relevant agencies, shall develop a customer survey form to determine whether low-income families--

(A) encounter any impediments in applying for or renewing their participation in low-income family with children support programs; and

(B) are unaware of low-income family with children support programs for which they are eligible.

(2) REPORTS-

(A) ANNUAL REPORTS- Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary shall submit a report to Congress describing the uses of grant funds awarded under this section.

(B) RESULTS OF TRACKING SYSTEMS AND SURVEYS- The Secretary shall submit a report to Congress detailing the results of the tracking systems implemented and customer surveys carried out by States and counties under subsection (e) as the information becomes available.

(h) MISCELLANEOUS-

(1) MATCHING FUNDS- Matching funds required from a State or county awarded a grant under subsection (c)(1) of this section may--

(A) include in-kind services and expenditures by municipalities and private entities; and

(B) be considered a qualified State expenditure for purposes of determining whether the State has satisfied the maintenance of effort requirements of the temporary assistance for needy families program under section 409(a)(7) of the Social Security Act (42 U.S.C. 609(a)(7)).

(2) LIMITATION ON EXPENDITURES- Subject to paragraph (3) of this subsection, not more than 20 percent of a grant awarded under subsection (c) shall be expended on customer surveys or tracking systems.

(3) REVERSION OF FUNDS- Any funds not expended by a grantee within 2 years after awarded a grant shall be available for redistribution among other grantees in such manner and amount as the Secretary may determine, unless the Secretary extends by regulation the 2-year time period to expend funds.

(4) NONAPPORTIONMENT- Notwithstanding any other provision of law, a State, county, locality, or nonprofit awarded a grant under subsection (c) is not required to apportion the costs of providing information about low-income family with children support programs among all low-income family with children support programs.

(5) ADMINISTRATIVE COSTS OF THE SECRETARY- Not more than 5 percent of the funds appropriated to carry out this section shall be expended on administrative costs of the Secretary.

(i) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section not more than $300,000,000 for fiscal years 2003 through 2007.

SEC. 102. ASSESSMENTS FOR TANF RECIPIENTS.

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

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

`(1) ASSESSMENT- The State agency responsible for administering the State program funded under this part shall, for each recipient of assistance under the program who is a head of household, make an initial assessment of the skills, prior work experience, and circumstances related to the employability of the recipient, including physical or mental impairments, proficiency in English, child care needs, and whether the recipient is a victim of domestic violence.'; and

(2) by striking paragraph (4).

SEC. 103. REVISION OF WORK ACTIVITIES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(2) in subsection (c)--

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

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

SEC. 104. PROVISION OF INTERPRETATION AND TRANSLATION SERVICES.

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

`(12) PROVISION OF INTERPRETATION AND TRANSLATION SERVICES- A State to which a grant is made under section 403(a) for a fiscal year shall provide appropriate interpretation and translation services at any office of the State program funded under this part that is responsible for handling the cases of 100 or more recipients of assistance under the program who share a native language that is not English.'.

(b) PENALTY- Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) is amended by adding at the end the following: `The applicable percentage otherwise in effect with respect to a State for a fiscal year shall be increased by 5 percentage points if the Secretary determines that in the preceding fiscal year the State failed to comply with section 408(a)(12).'.

TITLE II--STRENGTHENING FAIR TREATMENT AND ANTIDISCRIMINATION PROTECTIONS

Subtitle A--Strengthening and Streamlining of Antidiscrimination Protections

SEC. 201. REQUIREMENT TO ESTABLISH EXPEDITED PROCESS FOR DISCRIMINATION COMPLAINTS.

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

`(13) REQUIREMENT TO ESTABLISH EXPEDITED PROCESS FOR DISCRIMINATION COMPLAINTS-

`(A) INTAKE- A State to which a grant is made under section 403 shall establish 1 central location at which a recipient of assistance under the State program funded under this part may file with the State and have adjudicated a complaint alleging discriminatory treatment under the program.

`(B) DEADLINES-

`(i) Within 30 days after a recipient files a complaint pursuant to subparagraph

(A), the State shall notify the recipient that the State has received the complaint.

`(ii) Within 60 days after the State receives a complaint filed pursuant to subparagraph (A), the State shall begin to investigate the complaint.

`(iii) Within 90 days after the State receives a complaint filed pursuant to subparagraph (A), the State shall adjudicate the complaint.

`(3) NO INTERRUPTION IN ASSISTANCE WHILE COMPLAINT IS PENDING- During the pendency of a complaint filed pursuant to paragraph (1), assistance to any recipient under a State program funded under this part shall not be affected by reason of the complaint.'.

SEC. 202. ESTABLISHMENT OF STANDARDIZED, FAIR SANCTION PROCESS.

(a) REQUIREMENT TO PROVIDE NOTICE OF RIGHTS OF RECIPIENTS, AND TRAIN PROGRAM PERSONNEL IN RESPECTING THE RIGHTS-

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

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

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

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

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

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

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

(2) PENALTY- Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) is amended by adding at the end the following: `The applicable percentage otherwise in effect with respect to a State for a fiscal year shall be increased by 5 percentage points if the Secretary determines that in the preceding fiscal year the State failed to comply with section 408(a)(14).'.

(b) REVIEW AND CONCILIATION PROCESS-

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

`(15) REVIEW AND CONCILIATION PROCESS REQUIREMENTS- A State to which a grant is made under section 403 shall not impose a sanction against a person under the State program funded under this part, unless the State--

`(A) has attempted at least twice (using at least 2 different methods) to notify the person of the impending imposition of the sanction, the reason for the proposed sanction, the amount of the sanction, the length of time during which the proposed sanction would be in effect, and the steps required to come into compliance or to show good cause for noncompliance;

`(B) has afforded the person an opportunity--

`(i) to meet with the caseworker involved or another individual who has authority to determine whether to impose the sanction; and

`(ii) to explain why the person did not comply with the requirement on the basis of which the sanction is to be imposed;

`(C) has considered and taken any such explanation into account in determining to impose the sanction;

`(D) has specifically considered whether certain conditions exist, such as a physical or mental impairment, domestic violence, or limited proficiency in English, that contributed to the noncompliance of the person; and

`(E) in determining whether to impose the sanction, has used screening tools developed in consultation with individuals or groups with expertise in matters described in subparagraph (D).'.

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

`(15) PENALTY FOR FAILURE OF STATE TO USE REVIEW AND CONCILIATION PROCESS-

`(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)(15) 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. 203. REQUIREMENT TO PROVIDE OPPORTUNITY TO APPEAL ADVERSE DECISION.

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

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

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

`(16) PENALTY FOR FAILURE TO PROVIDE OPPORTUNITY TO APPEAL ADVERSE DECISION- 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)(16) 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.'.

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

`(17) REQUIREMENT TO PROVIDE RECIPIENTS WITH A GRIEVANCE PROCEDURE- A State to which a grant is made under section 403 shall provide an applicant or recipient of assistance under the State program who is engaged in a work activity pursuant to section 407 with the same grievance procedure that is available to other workers at same site, or if there is no such procedure available, shall establish a system that provides for timely dispute resolution, does not limit preexisting fair hearing rights, and allows for an anonymous proceeding in appropriate circumstances.'.

(2) PENALTY- Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) is further amended by adding at the end the following: `The applicable percentage otherwise in effect with respect to a State for a fiscal year shall be increased by 5 percentage points if the Secretary determines that in the preceding fiscal year the State failed to comply with section 408(a)(17).'.

SEC. 204. NOTIFICATION OF POTENTIAL SERVICES AND PROTECTIONS.

(a) STATE PLAN REQUIRED TO DESCRIBE HOW STATES WILL NOTIFY APPLICANTS AND RECIPIENTS OF THEIR RIGHTS UNDER THE PROGRAM AND OF POTENTIAL BENEFITS AND SERVICES AVAILABLE UNDER THE PROGRAM- Section 402(a)(1)(B)(iii) (42 U.S.C. 602(a)(1)(B)(iii)) is amended by inserting `and will notify applicants and recipients of assistance under the program of the rights of individuals under all laws applicable to program activities and of all potential benefits and services available under the program' before the period.

(b) REQUIREMENT TO PROVIDE NOTICE TO APPLICANTS AND RECIPIENTS OF RIGHTS AND OF POTENTIAL PROGRAM BENEFITS AND SERVICES, AND TRAIN PROGRAM PERSONNEL IN RESPECTING THE RIGHTS-

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

`(18) REQUIREMENT TO PROVIDE NOTICE TO APPLICANTS AND RECIPIENTS OF RIGHTS AND OF POTENTIAL PROGRAM BENEFITS AND SERVICES, AND TRAIN PROGRAM PERSONNEL TO RESPECT THE RIGHTS- A State to which a grant is made under section 403 shall--

`(A) notify each applicant for, and each recipient of assistance under the program of the rights of applicants and recipients under all laws applicable to the activities of the State program funded under this part (including the right to claim good cause exceptions to program requirements), and shall provide the notice--

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

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

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

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

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

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

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

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

(2) in paragraph (2)--

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

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

(3) by adding at the end the following:

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

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

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

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

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

`(B) the individual has not been offered appropriate treatment, counseling, vocational rehabilitation, job training, and other services to address the problem or disability; or

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

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

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

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

`(6) DISCRIMINATION EXCEPTION-

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

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

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

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

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

SEC. 205. REQUIREMENT TO PROVIDE INFORMATION TO INDIVIDUALS WHO ARE, OR ARE AT RISK OF BEING, SANCTIONED.

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

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

`(A) of the noncompliance, the existence of good cause exceptions to the requirement, and how to claim such an exception;

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

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

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

(b) PENALTY- Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) is further amended by adding at the end the following: `The applicable percentage otherwise in effect with respect to a State for a fiscal year shall be increased by 5 percentage points if the Secretary determines that in the preceding fiscal year the State failed to comply with section 408(a)(19).'.

SEC. 206. NONDISCRIMINATION.

(a) RULE OF INTERPRETATION- Section 408(d) (42 U.S.C. 608(d) is amended by adding at the end the following: `This part shall not be construed to supercede any provision of Federal or State civil rights law.'.

(b) REQUIREMENTS-

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

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

SEC. 207. BAN ON DIVERSION OF POTENTIAL APPLICANTS FOR ASSISTANCE.

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

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

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

`(21) PENALTY FOR DIVERTING POTENTIAL APPLICANT FOR ASSISTANCE- 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)(21) 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.'.

Subtitle B--Related Provisions

SEC. 211. BAN ON PENALIZING ENTIRE FAMILY FOR MISCONDUCT OF 1 FAMILY MEMBER.

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

`(22) BAN ON PENALIZING ENTIRE FAMILY FOR MISCONDUCT OF 1 FAMILY MEMBER- In imposing a penalty under a State program funded under this part for refusal of an individual in a family to comply with a program requirement, the State may reduce the amount of assistance otherwise payable to the family on a pro rata basis with respect to any period during a month in which the individual so refuses, but may not reduce the amount of the assistance to less than the amount that would be payable to the family with the same number of children but with no adults.'.

SEC. 212. ELIMINATE DOUBLE JEOPARDY FOR RECIPIENTS WITH PAST DRUG OFFENSES.

Section 115 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (42 U.S.C. 862a) is repealed.

SEC. 213. 5-YEAR TIME LIMIT.

(a) REMOVAL OF LIMITATIONS-

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

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

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

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

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

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

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

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

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

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

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

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

`(II) ADDITIONAL MONTH OF ASSISTANCE FOR OTHERWISE ELIGIBLE FORMER RECIPIENTS- If the individual is so determined to be eligible for such assistance, the State shall, notwithstanding subparagraph (A), provide such assistance to the individual for any month that is a trigger month, but shall not provide such assistance to the individual for any month that is not a trigger month.

`(iii) TRIGGER MONTH- In this subparagraph, the term `trigger month'

means, with respect to a State, any month for which the unemployment rate of the State--

`(I) is at least 5.5 percent; or

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

TITLE III--FAIRNESS FOR IMMIGRANTS

SEC. 301. TREATMENT OF ALIENS UNDER THE TANF PROGRAM.

(a) ELIGIBILITY OF QUALIFIED ALIENS FOR BENEFITS-

(1) ELIMINATION OF PROHIBITION- Section 402(b)(3) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(3)) is amended by striking subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.

(2) EXCEPTION TO 5-YEAR BAN FOR QUALIFIED ALIENS- 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) Assistance under a State program funded under the program of block grants to States for temporary assistance for needy families under part A of title IV of the Social Security Act.'.

(b) BENEFITS NOT SUBJECT TO REIMBURSEMENT- Section 423(d) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1138a note) is amended by adding at the end the following:

`(12) Benefits under part A of title IV of the Social Security Act except for cash assistance provided to a sponsored alien who is subject to deeming pursuant to section 408(h) of the Social Security Act.'.

`(h) SPECIAL RULES RELATING TO THE TREATMENT OF 213A ALIENS-

`(1) IN GENERAL- In determining whether a 213A alien is eligible for cash assistance under a State program funded under this part, and in determining the amount or types of such assistance to be provided to the alien, the State shall apply the rules of paragraphs (1), (2), (3), (5), and (6) of subsection (f) of this section by substituting `213A' for `non-213A' each place it appears, subject to section 421(e) of the Personal Responsibility and Work Opportunity Reconcilation Act of 1996, and subject to section 421(f) of such Act (which shall be applied by substituting `section 408(h) of the Social Security Act' for `subsection (a)').

`(2) 213A ALIEN DEFINED- An alien is a 213A alien for purposes of this subsection if the affidavit of support or similar agreement with respect to the alien that was executed by the sponsor of the alien's entry into the United States was executed pursuant to section 213A of the Immigration and Nationality Act.'.

(d) CONFORMING AMENDMENTS-

(1) AMENDMENTS TO PRWORA- Section 402 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612) is amended--

(A) in subsection (b)(2)(A)(i) by striking `(3)(C)' and inserting `(3)(B)';

(B) in subsection (b)(2)(A)(ii) by striking `(C))' and inserting `(B))'; and

(2) AMENDMENTS TO SSA-

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

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

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

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

SEC. 302. TREATMENT OF ALIENS UNDER THE SSI PROGRAM.

(a) ELIGIBILITY OF QUALIFIED ALIENS FOR BENEFITS-

(1) ELIMINATION OF PROHIBITION- Section 402(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)) is amended--

(A) by striking paragraph (3)(A); and

(B) in paragraph (2) by striking subparagraphs (D)(i), (E), and (H).

(2) EXCEPTION TO 5-YEAR BAN- 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:

`(M) Assistance or benefits under the supplemental security income program under title XVI of the Social Security Act, including supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the Social Security Act and payments pursuant to an agreement entered into under section 212(b) of Public Law 93-66 (commonly known as SSI).'.

(b) BENEFITS NOT SUBJECT TO REIMBURSEMENT- Section 423(d) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C.

1138a note) is further amended by adding at the end the following:

`(13) Assistance under the supplemental security income program under title XVI of the Social Security Act, except assistance provided to a sponsored alien who is subject to deeming pursuant to section 1621 of the Social Security Act.'.

(c) CONFORMING AMENDMENTS- Section 402(b)(2)(F) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(F)) is amended by striking `program defined in subsection (a)(3)(A) (relating to the supplemental security income program)' and inserting `supplemental security income program under title XVI of the Social Security Act, including supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the Social Security Act and payments pursuant to an agreement entered into under section 212(b) of Public Law 93-66'.

(d) PERIOD FOR ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES- Section 1621 (42 U.S.C. 1382j) is amended in each of subsections (a), (c), (d), and (e), by striking `3' and inserting `5'.

SEC. 303. INCLUSION OF PARTICIPATION IN ENGLISH-AS-A-SECOND-LANGUAGE PROGRAM AMONG PERMISSIBLE WORK ACTIVITIES.

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

(1) by striking `and' at the end of paragraph (11);

(2) by striking the period at the end of paragraph (12) and inserting `; and'; and

(3) by adding at the end the following:

`(14) participation in a program in which English is taught as a second language.'.

TITLE IV--ENCOURAGE RACIAL EQUALITY

SEC. 401. RACIAL PERFORMANCE MEASURE AS EVALUATION CRITERION IN DETERMINING HIGH PERFORMANCE BONUS.

(a) ELIGIBILITY CONDITIONED ON PROVISION OF DATA DISAGGREGATED BY RACE- Section 403(a)(4)(A) (42 U.S.C. 603(a)(4)(A)) is amended by inserting `, and complies with the last sentence of section 411(a)(1)(A) with respect to race'.

(b) RACIAL PERFORMANCE MEASURE AS EVALUATION CRITERION- Section 403(a)(4)(C) (42 U.S.C. 603(a)(4)(C)) is amended--

(1) by striking `Not later than 1 year after the date of the enactment of the Personal Responsibility and Work Opportunity Reconcilation Act of 1996, the' and inserting the following:

`(i) IN GENERAL- The'; and

(2) by adding at the end the following:

`(ii) AREAS TO BE MEASURED- The formula shall, at a minimum, measure State performance in each of the following areas:

`(I) Employment and wages.

`(II) Educational access and achievement.

`(III) Child care, transportation and other support service expenditures.

`(IV) Sanction rates.

`(iii) CATEGORIES OF RECIPIENTS- The formula shall take into account State performance in each area described in clause (ii), with respect to each of the following categories of recipients of assistance under the State program:

`(I) White/non-Hispanic.

`(II) Hispanic.

`(III) African-American/black.

`(IV) Native American.

`(V) Asian-American/Pacific Islander.

`(iv) CHARACTERISTICS OF FORMULA- The formula shall be designed so that--

`(I) if the performance of a State for a bonus year in an area described in clause (ii) with respect to a category of recipients set forth in clause (iii) differs by 5 percentage points or more from such performance for the bonus year with respect to any other category of recipients, then the State shall be considered to have failed that measure of State performance with respect to the bonus year; and

`(II) if a State fails 2 or more of the measures of State performance with respect to a bonus year, then the State shall not be eligible for a grant under this paragraph for the bonus year.'.

SEC. 402. BAN ON VIOLATING ANTIDISCRIMINATION LAW.

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

`(23) BAN ON VIOLATING ANTIDISCRIMINATION LAW- A State to which a grant is made under section 403(a) shall not violate an antidiscrimination law (as defined by the Office of Civil Rights in the Department of Health and Human Services) in carrying out the State program funded under this part.'.

(b) PENALTY- Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) is amended by adding at the end the following: `The applicable percentage otherwise in effect with respect to a State for a fiscal year shall be increased by 5 percentage points if the Office of Civil Rights in the Department of Health and Human Services determines that in the preceding fiscal year the State failed to comply with section 408(a)(23).'.

SEC. 403. DATA COLLECTION AND REPORTING.

(a) COLLECTION OF DATA ON RACE, ETHNICITY/NATIONAL ORIGIN, GENDER, PRIMARY LANGUAGE, AND EDUCATIONAL LEVEL- Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended by adding at the end the following new sentence:

`In complying with this paragraph, each eligible State must ensure that the case record information required by this subparagraph is reported in a manner that permits analysis of the information by race, ethnicity/national origin, primary language, gender, and educational level, including analysis using a combination of these factors.'.

(b) COLLECTION OF DATA ON PRIMARY LANGUAGE- Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended by striking clauses (vii) and (viii) and inserting the following:

`(vii) The race, educational level, and primary language of each adult in the family.'.

`(viii) The race, educational level, and primary language of each child in the family.'.

(c) COLLECTION OF DATA ON DIVERSION- Section 411(a)(1) (42 U.S.C. 611(a)(1)) is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following:

`(B) DATA ON DIVERSION- Each eligible State shall collect on a monthly basis, and report to the Secretary on a quarterly basis, disaggregated case record information on the number of individuals who apply for but do not

receive assistance, the reason such assistance was not provided, and the overall percentage of applications for assistance that are approved compared to those that are disapproved. In complying with the preceding sentence, the State shall ensure that the case record information is reported in a manner that permits analysis of such information by race, ethnicity/national origin, primary language, gender, and educational level, including analysis using a combination of these factors.'.

(d) COLLECTION OF DATA ON PARTICIPATION IN EMPLOYMENT, EDUCATION, AND TRAINING- Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended--

(1) by striking clause (v) and inserting the following:

`(v) The employment status, occupation (as defined by the current Federal Standard Occupational Classification system), and earnings of each employed adult in the family.'; and

(2) by striking clause (xi) and inserting the following:

`(xi) If the adults participated in, and the numbers of hours per week of participation in, the following activities, including. to the extent such information is available, information on the specific type of job, or education or training program.'.

(e) COLLECTION OF DATA ON FAMILIES LEAVING WELFARE-

(1) CASE CLOSURE REASONS- Section 411(a)(1) (42 U.S.C. 611(a)(1)), as amended by the preceding proivisions of this Act, is amended by redesignating subparagraph (C) as subparagraph (D) and inserting after subparagraph (B) the following:

`(C) DEVELOPMENT OF COMPREHENSIVE LIST OF CASE CLOSURE REASONS-

`(i) The Secretary shall develop, in consultation with States and policy experts, a comprehensive list of reasons why individuals leave State programs funded under this part. The full range of reasons for case closures, including the following reasons, shall be considered in making the list as comprehensive as possible: lack of access to specific programs or services such as child care, transportation, or English as a second language classes for clients with limited English proficiency; clients' medical or health problems; clients' family responsibilities such as caring for a disabled family member; changes in eligibility status; or different administrative reasons. The list shall be aimed at substantially reducing the number of case closures under the programs for which a reason is not known. Further, States shall undertake efforts to improve their tracking of reasons for case closures and shall report on such efforts in the quarterly reports submitted pursuant to this subsection.

`(ii) The Secretary shall promulgate for public comment regulations that list the new case closure reasons to be used in accordance with subparagraph (A)(xvi) no later than December 2004. The regulations also shall direct States to report on efforts to improve State tracking of reasons for case closures, including the identification of additional reasons for case closures not included on the list generated under this subparagraph.

`(iii) The Secretary, through consultation and analysis of quarterly State reports, shall review on an annual basis whether the list of case closure reasons requires modification. To the extent the Secretary determines the need to modify the list of case closure reasons, such changes shall be published for notice and comment.'.

(2) INCLUSION IN QUARTERLY STATE REPORTS- Section 411(a)(1)(A)(xvi) (42 U.S.C. 611(a)(1)(A)(xvi)) is amended--

(A) by striking `or' at the end of subclause (IV);

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

`(VI) a reason specified in the list developed under subparagraph (C).'.

(3) SAMPLES- Section 411(a)(1)(A)(xvi) (42 U.S.C. 611(a)(1)(A)(xvi)) is amended to read as follows:

`(xvi) Whether the family left the program, and if so, whether the family left due to--

`(I) employment;

`(II) marriage;

`(III) the prohibition set forth in section 408(a)(7);

`(IV) sanction;

`(V) State policy; or

`(VI) a reason specified in the list developed under section 411(a)(1)(C).'.

(f) IMPROVING DATA QUALITY- Section 411(a)(1) (42 U.S.C. 611(a)(1)) is amended by adding at the end the following:

`(D) QUALITY OF DATA- Quarterly reports submitted by each eligible State must describe what steps the State has taken to ensure the accuracy of the data submitted pursuant to this section.'.

(g) UNIFORMITY OF DATA- Section 411(a)(1) (42 U.S.C. 611(a)(1)), as amended by subsection (f) of this section, is amended by adding at the end the following:

`(E) UNIFORM DATA- The Secretary shall report annually on the progress toward the creation of a common data collection instrument and common collection methods to ensure that case record information is reported by states in a standardized format, including a

timeline aimed at achieving this goal on or before September 30, 2006, with an assessment of barriers and costs of implementation.'.

(h) ANNUAL REPORTS BY THE SECRETARY- Section 411(b)(2) (42 U.S.C. 611(b)(2)) is amended by inserting `, including the information submitted under section 411(a)(1)(A)(i) through (xvii) broken down by race, ethnicity/national origin, primary language, gender, and educational level' before the semicolon.

(i) GRANTS FOR ANALYSIS OF DATA THAT EXAMINES RACIAL, ETHNIC, OR GENDER DIFFERENCES IN THE ADMINISTRATION OF STATE TANF PROGRAMS- Section 411 (42 U.S.C. 611) is amended by adding at the end the following:

`(c) RESEARCH AND ANALYSIS OF DATA-

`(1) RESEARCH GRANTS- Grants shall be made available to undertake research analyzing data submitted by States to evaluate racial, ethnic, or gender differences in the administration of the program funded under this part, including differences in programs or services offered, employment and earnings, and reasons for leaving assistance.

`(2) PUBLIC ACCESS TO DATA- The Secretary shall ensure that the data submitted by States pursuant to subsection (a) is made available to the public for analysis by creating a public use database that includes all case record information. The Secretary shall take steps to ensure that any identifying information about individual recipients of assistance cannot be accessed and proper privacy safeguards are established.'.

SEC. 404. ACCESS TO WELFARE; WELFARE OUTCOMES.

Section 411 (42 U.S.C. 611) is amended by adding at the end the following:

`(c) ANNUAL REPORTS ON WELFARE ACCESS AND OUTCOMES-

`(1) STATE REPORTS- Not later than January 1 of each fiscal year, each eligible State shall collect and report to the Secretary, with respect to the preceding fiscal year, the following information:

`(A) The number of applications for assistance from the State program funded under this part, the percentage that are approved versus those that are disapproved, and the reasons for disapproval, broken down by race.

`(B) A copy of all rules and policies governing the State program funded under this part that are not required by Federal law, and a summary of the rules and policies, including the amounts and types of assistance provided and the types of sanctions imposed under the program.

`(C) The types of occupations of, types of job training received by, and types and levels of educational attainment of recipients of assistance from the State program funded under this part, broken down by gender and race.

`(D) The incidence of homelessness, of the use of food pantries and soup kitchens, and of the use of shelters among recipients of assistance from the State program funded under this part and among individuals to whom assistance under the State programs funded under this part has ended within the past 12 months. The information described in this subparagraph may be provided by submitting disaggregated case record information on a sample of families.

`(E) The number of individuals to whom assistance under the State program funded under this part has ended during the year, broken down by the reasons why the assistance has ended (including employment, marriage, sanction, time limit, or State policy.

`(F) The economic conditions of individuals to whom assistance under the State programs funded under this part has ended, including the types of occupations of, the duration of employment of, the income of, the benefits provided to, the types of job training received by, the types and levels of educational attainment of, and the incidence of homelessness, of the use of food pantries or soup kitchens, and of the use of shelters among, such individuals, broken down by gender and race.

`(G) The effects of applying the 5-year time limit to individuals who, in the absence of the limit, would continue to be eligible for assistance from the State program funded under this part, including the economic and social circumstances of the individuals, including income, employment, homelessness, use of food pantries or soup kitchens, and change in child custody arrangements.

`(2) USE OF SAMPLING- A State may comply with this subsection by using a scientifically acceptable sampling method approved by the Secretary.

`(3) REPORT TO THE CONGRESS- Not later than June 1 of each fiscal year, the Secretary shall prepare and submit to the Committee on Ways and Means of the House of Representatives and the

Committee on Finance of the Senate, publish in the Federal Register, and make easily accessible to the public through the Internet a compilation of the reports submitted pursuant to paragraph (1) for the preceding fiscal year.'.

SEC. 405. LONGITUDINAL STUDIES OF TANF RECIPIENTS.

(a) LONGITUDINAL STUDIES OF TANF APPLICANTS AND RECIPIENTS TO DETERMINE THE FACTORS THAT CONTRIBUTE TO POSITIVE EMPLOYMENT AND FAMILY OUTCOMES- Section 413(d) (42 U.S.C. 613) is amended to read as follows:

`(d) LONGITUDINAL STUDIES OF TANF APPLICANTS AND RECIPIENTS TO DETERMINE THE FACTORS THAT CONTRIBUTE TO POSITIVE EMPLOYMENT AND FAMILY OUTCOMES-

`(1) IN GENERAL- The Secretary, directly or through grants, contracts, or interagency agreements, shall conduct longitudinal studies in not less than 30 States of a representative sample of families that receive and applicants for assistance in a State program funded under this part or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)). The studies shall follow families that leave assistance, those that receive assistance throughout the study period, and those diverted from assistance programs. The studies shall gather information on family and adult demographics (including race, ethnicity/national origin, primary language, gender, barriers to employment, educational status of adults, prior work history, prior history of welfare receipt), family income (including earnings, unemployment compensation, and child support), benefit receipt (including food stamps, medicaid, earned income tax credits, housing assistance, and type and amount of child care used), reasons for leaving or returning to assistance programs, work participation status and activities (including the scope and duration of work activities and the types of industries and occupations for which training is provided), sanction status (including reasons for sanction), time limit status (including months remaining on State and Federal time limits), recipient views on program participation, and measures of income change, poverty, extreme poverty, food security, and use of food pantries and soup kitchens, homelessness and the use of shelters, and other measures of family well-being and hardship over a 5-year period. The Secretary shall, to the extent possible, ensure that the studies produce comparable results and information.

`(2) REPORTS-

`(A) The Secretary shall publish, not later than December 2005, interim findings from at least 12 months of longitudinal data.

`(B) The Secretary shall publish, not later than December 2007, findings from at least 36 months of longitudinal data.'.

(b) LONGITUDINAL STUDIES OF ECONOMIC WELL-BEING OF CURRENT AND FORMER TANF FAMILIES-

(1) ANNUAL REPORT TO CONGRESS- Section 411(b) (42 U.S.C. 611(b)) is amended--

(A) in paragraph (2), by striking `financial characteristics' and inserting `financial characteristics (including types of sanctions or other grant reductions)' and by striking the semicolon at the end and adding `, broken down by race, ethnicity/national origin, primary language, gender, education level, and, for closed TANF cases, reason the case was closed;';

(B) in paragraph (3), by striking `and' at the end;

(D) by adding at the end the following:

`(5) the economic well-being of children and families receiving assistance under the State programs funded under this part and of children and families that have ceased to receive such assistance, using longitudinal matched data gathered from federally supported programs, and including State by State data that details the distribution of earnings and stability of employment of such families and (to the extent feasible) describes, with respect to such families, the distribution of income from known sources (including employer-reported wages, assistance under the State program funded under this part, and benefits under the food stamp program), the ratio of such families' income to the poverty line, and the extent to which such families receive or received noncash benefits and child care assistance. Such information shall be broken down by race, ethnicity/national origin, primary language, gender, education level, whether the TANF case remains open, and, for closed TANF cases, reason the case was closed.'.

(2) CONFORMING AMENDMENTS- Section 411(a) (42 U.S.C. 611(a)) is amended by redesignating paragraph (7) as paragraph (8) inserting after paragraph (6) the following:

`(7) REPORT ON ECONOMIC WELL-BEING OF CURRENT AND FORMER RECIPIENTS- The report required by paragraph (1) for a fiscal quarter shall include for that quarter such information as the Secretary may specify in order for the Secretary to include in the annual reports to Congress required under subsection (b) the information described in subsection (b)(5).'.

END