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H.R.4737
Personal Responsibility, Work, and Family Promotion Act of 2002
(Reported in Senate)
SEC. 202. WORK PARTICIPATION REQUIREMENTS.
(a) MINIMUM PARTICIPATION RATES- The table set forth in section
407(a)(1) (42 U.S.C. 607(a)(1)) is amended--
(1) in the item relating to fiscal year 2002--
(A) by striking `or thereafter' and inserting `or 2003';
and
(B) by striking the period; and
(2) by adding at the end the following:
`2004
--55
2005
--60
2006
--65
2007 or thereafter
--70.'.
(b) ELIMINATION OF SEPARATE WORK PARTICIPATION RATE FOR 2-PARENT
FAMILIES- Section 407 (42 U.S.C. 607) is amended--
(A) in the heading of paragraph (1), by striking `ALL FAMILIES'
and inserting `IN GENERAL'; and
(B) by striking paragraph (2);
(A) by striking paragraph (2);
(B) in paragraph (4), by striking `paragraphs (1)(B) and (2)(B)'
and inserting `paragraph (1)(B)'; and
(C) in paragraph (5), by striking `rates' and inserting `rate';
and
(i) by striking `GENERAL RULES- ' and all that follows through
`For purposes' in subparagraph (A) and inserting `GENERAL RULE- For
purposes'; and
(ii) by striking subparagraph (B); and
(B) in paragraph (2)(D)--
(i) by striking `paragraphs (1)(B)(i) and (2)(B) of subsection
(b)' and inserting `subsection (b)(1)(B)(i)'; and
(ii) by striking `and in 2-parent families,
respectively,'.
(1) REPLACEMENT OF CASELOAD REDUCTION CREDIT WITH EMPLOYMENT CREDIT-
(A) EMPLOYMENT CREDIT TO REWARD STATES IN WHICH FAMILIES LEAVE
WELFARE FOR WORK; ADDITIONAL
CREDIT FOR FAMILIES WITH HIGHER EARNINGS-
(i) IN GENERAL- Section 407(a) (42 U.S.C. 607(a)), as amended by
subsection (b)(1)(B), is further amended by adding at the end the
following:
`(A) IN GENERAL- In consultation with the States, and subject to
subparagraph (C), the Secretary shall prescribe regulations for reducing
the minimum participation rate otherwise applicable to a State under this
subsection for a fiscal year by the number of percentage points in the
employment credit for the State for the fiscal year, as determined by the
Secretary--
`(i) using information in the National Directory of New Hires;
and
`(ii) with respect to a recipient of assistance under the State
program funded under this part who is placed with an employer whose
hiring information is not reported to the National Directory of New
Hires, using quarterly wage information submitted by the State to the
Secretary not later than such date as the Secretary shall prescribe in
regulations.
`(B) CALCULATION OF CREDIT-
`(i) IN GENERAL- The employment credit for a State for a fiscal
year is an amount equal to--
`(I)(aa) twice the unduplicated number of families that
include an adult recipient of assistance under the State program
funded under this part, that ceased to receive such assistance for at
least a 2-month period during the applicable period (as defined in
clause (iii)), that did not receive assistance under a separate
State-funded program during such 2-month period, that were employed
during the calendar quarter immediately succeeding the quarter in
which the assistance under the State program funded under this part
ceased, and that are not otherwise included in the determination of a
credit against the minimum participation rate otherwise applicable to
a State under this subsection for a fiscal year,
plus;
`(bb) at State option, the number of families that received a
nonrecurring short-term benefit under the State program funded under
this part during the applicable period (as so defined), that were
employed during the calendar quarter immediately succeeding the
quarter in which the nonrecurring short-term benefit was so received,
and that earned at least $1000 during the applicable period (as so
defined); divided by
`(II) the average monthly number of families that include an
adult who received assistance under the State program funded under
this part during the applicable period (as so defined), plus, if the
State elected the option under subclause (I)(bb), the number of
families that received a nonrecurring short-term benefit under the
State program funded under this part during the applicable period (as
so defined).
`(ii) SPECIAL RULE FOR FORMER RECIPIENTS WITH HIGHER EARNINGS-
In calculating the employment credit for a State for a fiscal year, a
family that, with respect to the quarter in which the family's earnings
was examined during the preceding fiscal year, earned at least 33
percent of the average quarterly earnings in the State (determined on
the basis of State unemployment data) shall be considered to be 1.5
families.
`(iii) DEFINITION OF APPLICABLE PERIOD- For purposes of this
subparagraph, the term `applicable period' means the most recent 4
quarters for which data are available to the Secretary providing
information on the work status of--
`(I) individuals in the quarter after the individuals ceased
receiving assistance under the State program funded under this part;
and
`(II) at State option, individuals in the quarter after the
individuals received a short-term, non recurring
benefit.
`(i) IN GENERAL- Except with respect to a State described in
clause (ii), the minimum participation rate applicable to families
receiving assistance under the State program funded under this part
shall not have the effect of being reduced through the application of
the employment credit determined under subparagraph (B)(i)(I)(aa) or the
inclusion, at State option, of individuals who receive substantial child
care or transportation assistance in the determination of the minimum
participation rate under paragraph (1), below--
`(I) 20 percent, in the case of fiscal year
2004;
`(II) 30 percent, in the case of fiscal year
2005;
`(III) 40 percent, in the case of fiscal year 2006;
or
`(IV) 50 percent, in the case of fiscal year
2007.
`(ii) STATE DESCRIBED- Clause (i) shall not apply to a State
that meets at least 2 of the criteria for being considered a needy State
under section 403(b)(3)(A).
`(D) QUARTERLY REPORTS- Not later than 6 months after the end of a
fiscal year quarter, the Secretary shall issue a report to Congress and
each State for the preceding quarter that includes information regarding
the performance of each State on the factors used to determine the
employment credit for a State under this paragraph during that quarter,
including any option selected by the State.'.
(ii) AUTHORITY OF SECRETARY TO USE INFORMATION IN NATIONAL
DIRECTORY OF NEW HIRES- Section 453(i) (42 U.S.C. 653(i)) is amended by
adding at the end the following:
`(5) CALCULATION OF EMPLOYMENT CREDIT FOR PURPOSES OF DETERMINING
STATE WORK PARTICIPATION RATES UNDER TANF- The Secretary may use the
information in the National Directory of New Hires for purposes of
calculating State employment credits pursuant to section
407(a)(2).'.
(B) ELIMINATION OF CASELOAD REDUCTION CREDIT- Section 407(b) (42
U.S.C. 607(b)), as amended by subsection (b)(2)(A), is further amended by
striking paragraph (3) and redesignating paragraphs (4) and (5) as
paragraphs (2) and (3), respectively.
(2) STATES TO RECEIVE PARTIAL CREDIT TOWARD WORK PARTICIPATION RATE
FOR RECIPIENTS ENGAGED IN PART-TIME WORK- Section 407(c)(1) (42 U.S.C.
607(c)(1)), as amended by subsection (b)(3)(A), is further amended by adding
at the end the following flush sentence: `For purposes of subsection
(b)(1)(B)(i), a family that does not include a recipient who is
participating in work activities for an average of 30 hours per week during
a month but includes a recipient who is participating in activities
described in paragraph (1), (2), (3), (4), (5), (6), (7), (8), (12), or
13(A) of subsection (d) during the month for an average of at least 50
percent of the minimum average number of hours per week specified for the
month in the table set forth in this paragraph shall be counted as a
percentage of a family that includes an adult or minor child head of
household who is engaged in work for the month, which percentage shall be
the number of hours for which the recipient participated in such activities
during the month divided by the number of hours of such participation
required of the recipient under this section for the month.'.
(3) TANF RECIPIENTS WHO QUALIFY FOR SUPPLEMENTAL SECURITY INCOME
BENEFITS REMOVED 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--
(A) 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
(B) 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.
(4) STATE OPTION TO INCLUDE RECIPIENTS OF SUBSTANTIAL CHILD CARE OR
TRANSPORTATION ASSISTANCE IN WORK PARTICIPATION RATE-
(A) IN GENERAL- Section 407(a)(1) (42 U.S.C. 607(a)(1)) is amended
by inserting `(including, at the option of the State, a family that
includes an adult who is receiving 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 a length of time over which the assistance is received, and take
into account large one-time transition payments) except any family taken
into account under paragraph (2)(B)(i)(I))' before the
colon.
(B) 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 inserting
`(including any family with respect to whom the State has exercised its
option under section 407(a)(1) or 407(a)(2)(B)(i)(I)(bb)' after
`assistance'.
(A) IN GENERAL- Except as provided in subparagraph (B), the
amendments made by this subsection shall take effect on October 1,
2003.
(B) STATE OPTION TO PHASE-IN REPLACEMENT OF CASELOAD REDUCTION
CREDIT WITH EMPLOYMENT CREDIT AND DELAY APPLICABILITY OF OTHER PROVISIONS-
A State may elect to have the amendments made by subsections (a)(2), (b),
(c), and (d) not apply to the State program funded under part A of title
IV of the Social Security Act until October 1, 2004, and if the State
makes the election, then, in determining the participation rate of the
State for purposes of sections 407 and 409(a)(3) of the Social Security
Act for fiscal year 2004, the State shall be credited with 1/2 of the
reduction in the rate that would otherwise result from applying section
407(a)(2) of the Social Security Act (as added by subsection (c)(1)(A)(i))
to the State for fiscal year 2004 and 1/2 of the reduction in the rate
that would otherwise result from applying section 407(b)(3) of the Social
Security Act to the State for fiscal year 2004.
(d) INCREASE IN NUMBER OF HOURS REQUIRED FOR WORK-RELATED ACTIVITIES-
Section 407(c)(1) (42 U.S.C. 607(c)(1)), as amended by subsection (b)(3), is
further amended in the matter preceding the table set forth in that paragraph,
by striking `20 hours' and inserting `24 hours'.
(e) ADDITIONAL WORK ACTIVITIES-
(1) IN GENERAL- 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)(A) rehabilitative services, such as adult basic education,
participation in a program designed to increase proficiency in the English
language, or, in the case of an individual determined by a qualified
medical, mental health, or social services professional as having a physical
or mental disability ,
substance abuse problem, or other problem that requires rehabilitative
services, substance abuse treatment, mental health treatment, or other
rehabilitative services, provided that the provision of such services is a
requirement of the individual's individual responsibility plan under section
408(b) (not to exceed 3 months out of any 24-month period, or, if such
services for a longer period of time is a requirement of the individual's
plan under section 408(b), up to 6 months, but only if, during the last 3
months of such 6 months, such services are combined with work or
job-readiness activities); and
`(B) for purposes of counting toward the minimum average number of
hours per week specified in the table set forth in subsection (c)(1),
services described in subparagraph (A), the provision of which is a
requirement of the individual's individual responsibility plan under section
408(b), until an individual successfully completes such services (and
without regard to the time limits for the receipt of such services for
purposes of subparagraph (A).'.
(2) CONFORMING AMENDMENTS- Section 407(c)(1) (42 U.S.C. 607(c)(1)),
as amended by subsections (b) and (d), is further amended by striking `or
(12)' and inserting `(12), or (13)(A)'.
(f) NUMBER OF WEEKS FOR WHICH JOB SEARCH COUNTS AS WORK- Section
407(c)(2)(A)(i) (42 U.S.C. 607(c)(2)(A)(i)) is amended--
(1) by striking `6 weeks' and inserting `8 weeks';
(2) by striking `403(b)(6)' and inserting `403(b)'; and
(3) by striking `, or if the participation is for a week that
immediately follows 4 consecutive weeks of such participation'.
(g) EDUCATION AND TRAINING-
(1) VOCATIONAL AND POSTSECONDARY EDUCATION-
(A) IN GENERAL- Section 407(d)(8) is amended to read as
follows:
`(8) vocational education and training and postsecondary education
that is a requirement of the individual's individual responsibility plan
under section 408(b) (not to exceed 24 months with respect to any
individual);'.
(B) ELIMINATION OF RECIPIENTS COMPLETING SECONDARY SCHOOL FROM
LIMIT ON NUMBER OF TANF RECIPIENTS PARTICIPATING IN VOCATIONAL EDUCATION
TRAINING-
(i) IN GENERAL- Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is
amended by striking `educational training, or (if the month is in fiscal
year 2000 or thereafter) deemed to be engaged in work for the month by
reason of subparagraph (C) of this paragraph' and inserting `education
and training (determined without regard to any individual described in
subparagraph (C)'.
(ii) CONFORMING AMENDMENTS-
(I) Section 407(c)(2)(C)(ii) (42 U.S.C. 607(c)(2)(C)(ii) is
amended by inserting `including vocational education and training'
after `employment'.
(II) Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is amended
in the heading, by striking `EDUCATIONAL ACTIVITIES' and inserting
`VOCATIONAL EDUCATION ACTIVITIES'.
(2) STATE OPTION TO TREAT PARTICIPANTS IN POSTSECONDARY EDUCATION
PROGRAM AS ENGAGED IN WORK-
(A) IN GENERAL- Section 407(c)(2) (42 U.S.C. 607(c)(2)) is amended
by adding at the end the following:
`(E) STATE OPTION TO TREAT PARTICIPANTS IN POSTSECONDARY EDUCATION
PROGRAM AS ENGAGED IN WORK-
`(i) IN GENERAL- Subject to clause (ii), in the case of a State
that elects to establish a postsecondary education program under section
404(l), the State may include, for purposes of determining monthly
participation rates under subsection (b)(1)(B)(i), all families that
include an individual participating in the program during the month as
being engaged in work for the month, so long as each such individual is
in compliance with the requirements of that program.
`(ii) LIMITATION- With respect to a month, the number of
families treated as being engaged in work under clause (i) may not
exceed the amount equal to 10 percent of the average monthly number of
families to which assistance is provided under the State program funded
under this part during the fiscal year or the immediately preceding
fiscal year (but not both), as the State may elect.'.
(B) CONFORMING AMENDMENTS-
(i) Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)), as amended by
paragraph (1)(B)(ii)(II), is amended--
(I) in the heading, by inserting `CERTAIN' after
`PARTICIPATION IN'; and
(II) by inserting `(determined without regard to individuals
participating in a program referred to in subparagraph (E)(i))' after
`training'.
(ii) Section 407(d)(8), as amended by paragraph (1)(A), is
amended inserting `, or such longer period as the State may allow for an
individual who is treated as being engaged in work through participation
in a program that meets the requirements of section 404(l))' after `any
individual'.
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