SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Welfare to Work Act of 1997''.

SEC. 2. MODIFICATION OF PROGRAM PURPOSE.

    (a) In General.--Section 401 of the Social Security Act (42 U.S.C. 
601) is amended to read as follows:

``SEC. 401. PURPOSE.

    ``The purpose of this part is to--
            ``(1) help low income families attain work and economic 
        self-sufficiency;
            ``(2) provide assistance to needy families so that children 
        may be cared for in their own homes or in the homes of 
        relatives;
            ``(3) break the cycle of dependence of needy parents on 
        government benefits by requiring job preparation and work;
            ``(4) prevent and reduce the incidence of out-of-wedlock 
        pregnancies and establish annual numerical goals for preventing 
        and reducing the incidence of these pregnancies; and
            ``(5) encourage the formation and maintenance of two-parent 
        families.''.
    (b) Conforming Change in Name of Program.--
            (1) In general.--
                    (A) The title heading of title I of the Personal 
                Responsibility and Work Opportunity Reconciliation Act 
                of 1996 is amended by striking ``TEMPORARY''.
                    (B) The part heading of part A of title IV of the 
                Social Security Act is amended by striking 
                ``TEMPORARY''.
            (2) Conforming amendments.--
                    (A) The Balanced Budget and Emergency Deficit 
                Control Act of 1985 (2 U.S.C. 900 et seq.) is amended 
                in the first section 255(h) (2 U.S.C. 905(h)), by 
                striking ``temporary''.
                    (B) The heading of clause (ii) of section 
                116(b)(1)(B) of the Personal Responsibility and Work 
                Opportunity Reconciliation Act of 1996 is amended by 
                striking ``temporary''.

SEC. 3. MODIFICATION OF REQUIREMENTS RELATING TO WORK.

    (a) Modifications to Required Contents of State Plans.--Section 
402(a)(1) of the Social Security Act (42 U.S.C. 602(a)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by striking ``and become self-
                sufficient'' and inserting ``, become self-sufficient, 
                or earn their benefits''; and
                    (B) in clause (ii), by striking ``24 months 
                (whether or not consecutive)'' and inserting ``3 
                months''; and
            (2) in subparagraph (B), by striking clause (iv).
    (b) New Work Requirements.--
            (1) In general.--Section 407 of the Social Security Act (42 
        U.S.C. 607) is amended to read as follows:

``SEC. 407. WORK REQUIREMENTS.

    ``(a) Work Required After 3 Months.--Except as provided in 
subsection (b), after a State has provided assistance for 3 months 
(whether or not consecutive) to an adult or a head of household under 
the State program funded under this part, the State shall ensure that, 
for any period for which the adult or head of household is provided 
with such assistance, the adult or head of household is engaged in work 
activities for a number of hours in the period that is not less than--
            ``(1) the dollar amount of the assistance so provided 
        during the period; divided by
            ``(2) the minimum wage rate in effect for the period under 
        section 6 of the Fair Labor Standards Act of 1938.
    ``(b) State Authority To Make Exemptions for Good Cause.--A State 
shall not be considered to be in violation of subsection (a) for a 
period by reason of the failure of the State to ensure that, during the 
period, an adult or a head of household is engaged in work activities 
as required by subsection (a) if--
            ``(1) the State determines that there is good cause not to 
        require the adult or head of household to engage in work 
        activities for the period; and
            ``(2) during the period, such a determination is in effect 
        with respect to not more than 10 percent of the adults and 
heads of households receiving assistance under the State plan funded 
under this part.
    ``(c) Work Activities Defined.--As used in this section, the term 
`work activities' means--
            ``(1) unsubsidized employment;
            ``(2) subsidized private sector employment;
            ``(3) subsidized public sector employment;
            ``(4) work experience (including work associated with the 
        refurbishing of publicly assisted housing) if sufficient 
        private sector employment is not available;
            ``(5) on-the-job training;
            ``(6) community service programs;
            ``(7) vocational educational training (not to exceed 6 
        months with respect to any individual);
            ``(8) education directly related to employment, in the case 
        of a recipient who has not received a high school diploma or a 
        certificate of high school equivalency; and
            ``(9) satisfactory attendance at secondary school or in a 
        course of study leading to a certificate of general 
        equivalence, in the case of a recipient who has not completed 
        secondary school or received such a certificate.
    ``(d) Nondisplacement in Work Activities.--
            ``(1) In general.--Subject to paragraph (2), an adult in a 
        family receiving assistance under a State program funded under 
        this part attributable to funds provided by the Federal 
        Government may fill a vacant employment position in order to 
        engage in a work activity.
            ``(2) No filling of certain vacancies.--No adult in a work 
        activity which is funded, in whole or in part, by funds 
        provided by the Federal Government shall be employed or 
        assigned--
                    ``(A) when any other individual is on layoff from 
                the same or any substantially equivalent job; or
                    ``(B) if the employer has terminated the employment 
                of any regular employee or otherwise caused an 
                involuntary reduction of its workforce in order to fill 
                the vacancy so created with an adult described in 
                paragraph (1).
            ``(3) Grievance procedure.--A State with a program funded 
        under this part shall establish and maintain a grievance 
        procedure for resolving complaints of alleged violations of 
        paragraph (2).
            ``(4) No preemption.--Nothing in this subsection shall 
        preempt or supersede any provision of State or local law that 
        provides greater protection for employees from displacement.
    ``(e) Review of Implementation of State Work Programs.--During 
fiscal year 1999, the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate shall hold 
hearings and engage in other appropriate activities to review the 
implementation of this section by the States, and shall invite the 
Governors of the States to testify before them regarding such 
implementation. Based on such hearings, such Committees may introduce 
such legislation as may be appropriate to remedy any problems with the 
State programs operated pursuant to this section.''.
            (2) Conforming amendments.--
                    (A) The heading of section 409(a)(3) of the Social 
                Security Act (42 U.S.C. 609(a)(3)) is amended by 
                striking ``satisfy minimum participation rates'' and 
                inserting ``meet work requirements''.
                    (B) Section 411(a)(1)(A)(xii) of the Social 
                Security Act (42 U.S.C. 611(a)(1)(A)(xii)) is amended 
                by striking ``calculate minimum participation rates 
                under'' and inserting ``determine degree of compliance 
                with''.
                    (C) Section 411(a)(4) of the Social Security Act 
                (42 U.S.C. 611(a)(4)) is amended by striking ``407(d)'' 
                and inserting ``407(c)''.
                    (D) Section 107 of the Personal Responsibility and 
                Work Opportunity Reconciliation Act of 1996 (42 U.S.C. 
                613 note) is repealed.
                    (E) Section 466(a)(15)(A)(ii) of the Social 
                Security Act (42 U.S.C. 666(a)(15)(A)(ii)) is amended 
                by striking ``407(d)'' and inserting ``407(c)''.
    (c) States Required To Provide to Recipients Engaging in Required 
Work Activities a Cash Benefit Based on Number of Hours of Work 
Activities.--Section 408(a) of the Social Security Act (42 U.S.C. 
608(a)), as amended by section 5(a) of this Act, is amended by 
inserting after paragraph (6) the following:
            ``(7) Cash benefits required to be provided for recipients 
        engaging in required work activities.--A State shall provide 
        assistance under the State program funded under this part to a 
        family engaging in work activities required pursuant to section 
        407 in the form of a monthly cash payment to the family of an 
        amount equal to the lesser of--
                    ``(A) the dollar value of the assistance that would 
                otherwise be provided to the family for the month under 
                the State program funded under this part; or
                    ``(B)(i) the aggregate number of hours during the 
                immediately preceding month that the adult (or adults) 
                in the family is (or are) engaged in such activities; 
                multiplied by
                    ``(ii) the minimum wage rate in effect under 
                section 6 of the Fair Labor Standards Act of 1938.''.
    (d) Penalty Applicable to States for Failure To Make Required 
Monthly Cash Payments to Families Engaging in Required Work 
Activities.--Section 409(a) of the Social Security Act (42 U.S.C. 
609(a), as amended by section 7(b)(1) of this Act, is amended by 
inserting after paragraph (5) the following:
            ``(6) Failure to make required monthly cash payments to 
        families engaging in required work activities.--If the 
        Secretary determines that, during a fiscal year, a State has 
        not provided to a family engaging in work activities required 
        pursuant to section 407 a monthly cash payment in the amount 
        required by section 408(a)(7), 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 3 
        times the difference (whether positive or negative) between the 
        amount so required to be paid to the family for the month and 
        the amount paid to the family for the month under the State 
        program funded under this part.''.
    (e) Emergency Medical Services Exception to Medicaid 
Disqualification for Adults Who Fail To Meet Work Requirement.--Section 
1931(b)(3) of the Social Security Act (42 U.S.C. 1396v(b)(3)) is 
amended by adding at the end the following new subparagraph:
                    ``(C) Exception for emergency medical services.--
                Subparagraph (A) shall not apply to terminate medical 
                assistance for care and services that are necessary for 
                the treatment of an emergency medical condition (as 
                defined in section 1903(v)(3)) and that are not related 
                to an organ transplant procedure.''.

SEC. 4. INCREASED COMMITMENT TO CHILD CARE.

    (a) Increased Child Care Funding.--Section 418(a)(3) of the Social 
Security Act (42 U.S.C. 618(a)(3)) is amended to read as follows:
            ``(3) Appropriation.--For grants under this section, there 
        are appropriated--
                    ``(A) $2,967,000,000 for fiscal year 1998;
                    ``(B) $3,067,000,000 for fiscal year 1999;
                    ``(C) $3,167,000,000 for fiscal year 2000;
                    ``(D) $3,367,000,000 for fiscal year 2001; and
                    ``(E) $3,567,000,000 for fiscal year 2002.''.
    (b) Child Care Required To Be Provided to Families With Children 
Under Age 6.--Section 408(a) of the Social Security Act (42 U.S.C. 
608(a)) is amended by adding at the end the following:
            ``(12) Provision of child care to families with a child 
        under age 6.--A State to which a grant is made under section 
        403 shall take such steps as may be necessary to ensure that 
        each family receiving assistance under the State program funded 
        under this part is provided with child care for any child in 
        the family who has not attained 6 years of age.''.
    (c) Penalty for Failure To Provide Required Child Care.--Section 
409(a) of the Social Security Act (42 U.S.C. 609(a)), as amended by 
section 5(b) of this Act, is amended by inserting after paragraph (8) 
the following:
            ``(9) Failure to provide required child care.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 for 
                a fiscal year has violated section 408(a)(12) during 
                the fiscal year, the Secretary shall reduce the grant 
                payable to the State under section 403(a)(1) for the 
                immediately succeeding fiscal year by an amount equal 
                to not more than 10 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.''.
    (d) Elimination of Penalty for Failure To Maintain Assistance to 
Adult Single Custodial Parents Who Cannot Obtain Child Care for Child 
Under Age 6.--Section 409(a) of the Social Security Act (42 U.S.C. 
609(a)) is amended by striking paragraph (11).

SEC. 5. ELIMINATION OF 5-YEAR LIMIT ON ASSISTANCE.

    (a) In General.--Section 408(a) of the Social Security Act (42 
U.S.C. 608(a)) is amended by striking paragraph (7).
    (b) Elimination of Associated Penalty.--Section 409(a) of the 
Social Security Act (42 U.S.C. 609(a)) is amended by striking paragraph 
(9).
    (c) Conforming Amendments.--
            (1) Section 409(a)(7)(B)(i)(IV) of the Social Security Act 
        (42 U.S.C. 609(a)(7)(B)(i)(IV)) is amended by striking ``, 
        families that would be eligible for such assistance but for the 
        application of section 408(a)(7) of this Act,''.
            (2) Section 411(a)(1)(A)(xvi) of the Social Security Act 
        (42 U.S.C. 611(a)(1)(A)(xvi)) is amended--
                    (A) by striking subclause (III); and
                    (C) by redesignating subclauses (IV) and (V) as 
                subclauses (III) and (IV), respectively.

SEC. 6. CHANGES RELATED TO GRANTS TO STATES.

    (a) Amount of Family Assistance Grant.--Section 403(a)(1)(B) of the 
Social Security Act (42 U.S.C. 603(a)(1)(B)) is amended--
            (1) in clause (i), by striking ``1992, 1993, and 1994'' and 
        inserting ``1994, 1995, and 1996''; and
            (2) in clause (ii)(I), by striking ``1994'' and inserting 
        ``1996''.
    (b) Establishment of Supplemental Grant for Operation of Work 
Programs in Lieu of Supplemental Grant for Population Increases in 
Certain States and Bonus To Reward High Performance States.--Section 
403(a) of the Social Security Act (42 U.S.C. 603(a)) is amended by 
striking paragraphs (3) and (4) and inserting the following:
            ``(3) Supplemental grant for operation of work programs.--
                    ``(A) In general.--Each eligible State shall be 
                entitled to receive from the Secretary a grant, in an 
                amount described in subparagraph (B), for each fiscal 
                year specified in subparagraph (C), which shall be used 
                by the State only to comply with section 407.
                    ``(B) Amount of grant.--The amount described in 
                this subparagraph with respect to a State is the amount 
                that bears the same ratio to $1,000,000,000 as the 
                amount of the State family assistance grant bears to 
                the total of the State family assistance grants of all 
                States.
                    ``(C) Appropriation.--There are authorized to be 
                appropriated for grants under this paragraph 
                $1,000,000,000 for each of fiscal years 1997, 1998, 
                1999, 2000, 2001, and 2002.''.
    (c) Elimination of Authority To Use Portion of Grants for Other 
Purposes.--Section 404 of the Social Security Act (42 U.S.C. 604) is 
amended by striking subsection (d) and redesignating subsections (e) 
through (j) as subsections (d) through (i), respectively.

SEC. 7. REPEAL OF FEDERAL LOANS FOR STATE WELFARE PROGRAMS.

    (a) In General.--Section 406 of the Social Security Act (42 U.S.C. 
606) is repealed.
    (b) Elimination of Associated Penalty.--
            (1) In general.--Section 409(a) of the Social Security Act 
        (42 U.S.C. 609(a)) is amended by striking paragraph (6).
            (2) Conforming amendments.--
                    (A) Section 409(c) of the Social Security Act (42 
                U.S.C. 609(c)) is amended by striking paragraph (4).
                    (B) Section 412(f)(1) of the Social Security Act 
                (42 U.S.C. 612(f)(1)) is amended by striking ``(a)(1), 
                (a)(6),'' and inserting ``(a)(1) and''.

SEC. 8. MISCELLANEOUS.

    (a) Domestic Violence Certification Required To Be Included in 
State Plan.--Section 402(a)(7) of the Social Security Act (42 U.S.C. 
602(a)(7)) is amended--
            (1) in the heading, by striking ``Optional certification'' 
        and inserting ``Certification'';
            (2) by striking ``At the option of the State, a'' and 
        inserting ``A'';
            (3) by inserting ``being subjected to'' before ``domestic 
        violence'' the first 2 places such term appears;
            (4) by inserting ``being subjected to'' before ``further 
        domestic violence''; and
            (5) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Domestic violence defined.--For purposes of 
                this paragraph, an individual has been subjected to 
                domestic violence if the individual has been subjected 
                to--
                            ``(i) physical acts that resulted in, or 
                        threatened to result in, physical injury to the 
                        individual;
                            ``(ii) sexual abuse;
                            ``(iii) sexual activity involving a 
                        dependent child;
                            ``(iv) being forced as the caretaker 
                        relative of a dependent child to engage in 
                        nonconsensual sexual acts or activities;
                            ``(v) threats of, or attempts at, physical 
                        or sexual abuse;
                            ``(vi) mental abuse; or
                            ``(vii) neglect or deprivation of medical 
                        care.''.
    (b) States Required To Make Initial Assessment of Recipients of 
Assistance.--Section 408(b) of the Social Security Act (42 U.S.C. 
608(b)) is amended by striking paragraph (4).

SEC. 9. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on October 1, 
1997.
Welfare to Work Act of 1997 - Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to: (1) rename the program the Assistance for Needy Families Program; (2) require work activities after three months of receiving program assistance (instead of the current 24 months), with certain good cause exceptions; (3) require cash benefits to recipients based on the number of hours engaged in required work activities; (4) increase child care funding; (5) eliminate the five-year limit on program assistance; (6) establish a supplemental grant for operation of work programs; (7) repeal authority for Federal loans for State welfare programs; (8) make mandatory the currently optional domestic violence certification with regard to State plans; and (9) eliminate State discretion with respect to an initial assessment of assistance recipients, making such assessments mandatory.
Welfare to Work Act of 1997