Welfare Improvement Act of 1997

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Welfare 
Improvement Act of 1997''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. No additional cash assistance for children born to families 
                            receiving assistance.
Sec. 3. Prohibition of recruitment activities.
Sec. 4. Mandatory termination of assistance.
Sec. 5. Work participation rate requirement.
Sec. 6. Limitation on payments to States.
Sec. 7. Effective date.

SEC. 2. NO ADDITIONAL CASH ASSISTANCE FOR CHILDREN BORN TO FAMILIES 
              RECEIVING ASSISTANCE.

    Section 408(a) of the Social Security Act (42 U.S.C. 608(a)) is 
amended by adding at the end the following:
            ``(12) No additional cash assistance for children born to 
        families receiving assistance.--
                    ``(A) General rule.--A State to which a grant is 
                made under section 403 shall not use any part of the 
                grant to provide cash benefits for a minor child who is 
                born to--
                            ``(i) a recipient of assistance under the 
                        program operated under this part; or
                            ``(ii) a person who received such 
                        assistance at any time during the 10-month 
                        period ending with the birth of the child.
                    ``(B) Exception for children born into families 
                with no other children.--Subparagraph (A) shall not 
                apply to a minor child who is born into a family that 
                does not include any other children.
                    ``(C) Exception for vouchers.--Subparagraph (A) 
                shall not apply to vouchers which are provided in lieu 
                of cash benefits and which may be used only to pay for 
                particular goods and services specified by the State as 
                suitable for the care of the child involved.
                    ``(D) Exception for rape or incest.--Subparagraph 
                (A) shall not apply with respect to a child who is born 
                as a result of rape or incest.
                    ``(E) State election to opt out.--Subparagraph (A) 
                shall not apply to a State if State law specifically 
                exempts the State program funded under this part from 
                the application of subparagraph (A).
                    ``(F) Substitution of family caps in effect under 
                waivers.--Subparagraph (A) shall not apply to a State--
                            ``(i) if, as of the date of the enactment 
                        of this part, there is in effect a waiver 
                        approved by the Secretary under section 1115 
                        which permits the State to deny aid under the 
                        State plan approved under part A of this title 
                        (as in effect without regard to the amendments 
                        made by title I of the Personal Responsibility 
                        and Work Opportunity Reconciliation Act of 1996 
                        (Public Law 104-193, 110 Stat. 2110) to a 
                        family by reason of the birth of a child to a 
                        family member otherwise eligible for such aid; 
                        and
                            ``(ii) for so long as the State continues 
                        to implement such policy under the State 
                        program funded under this part, under rules 
                        prescribed by the State.''.

SEC. 3. PROHIBITION OF RECRUITMENT ACTIVITIES.

    Section 1631 of the Social Security Act (42 U.S.C. 1383) is amended 
by adding at the end the following new subsection:

                ``prohibition of recruitment activities

    ``(p) Nothing in this title shall be construed to authorize 
recruitment activities under this title, including with respect to any 
outreach programs or demonstration projects.''.

SEC. 4. MANDATORY TERMINATION OF ASSISTANCE.

    Section 407(e)(1) of the Social Security Act (42 U.S.C. 607(e)(1)), 
is amended to read as follows:
            ``(1) In general.--Except as provided in paragraph (2), 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--
                    ``(A) in the case of the first or second refusal--
                            ``(i) reduce the amount of assistance 
                        otherwise payable to the family pro rata (or 
                        more, at the option of the State) with respect 
                        to any period during a month in which the 
                        individual so refuses; or
                            ``(ii) terminate such assistance,
                subject to such good cause and other exceptions as the 
                State may establish; and
                    ``(B) in the case of the third refusal, terminate 
                the assistance.''.

SEC. 5. WORK PARTICIPATION RATE REQUIREMENT.

    The table in section 407(a)(1) of the Social Security Act (42 
U.S.C. 607(a)(1)), is amended, in the item relating to fiscal year 2002 
or thereafter, by striking ``50'' and inserting ``75''.

SEC. 6. LIMITATION ON PAYMENTS TO STATES.

    Part A of title IV of the Social Security Act (42 U.S.C. 601 et 
seq.) is amended by adding at the end the following:

``SEC. 420. LIMITATION ON PAYMENTS TO STATES.

    ``Notwithstanding any other provision of this part, no funds may be 
paid to a State under this part unless the State--
            ``(1) establishes and maintains a reasonable program for 
        randomly testing an individual in a family receiving assistance 
        under the State program funded under this part for the use of 
        controlled substances; and
            ``(2) terminates assistance under the State program funded 
        under this part for any individual who tests positive for the 
        use of controlled substances.''.

SEC. 7. EFFECTIVE DATE.

    This Act and the amendments made by this Act take effect as if 
included in the enactment of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Public Law 104-193, 110 Stat. 
2105).

Summary: Welfare Improvement Act of 1997 - Amends part A (TANF) of title IV of the Social Security Act (SSA) in order to make various specified changes to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Prohibits States from providing cash TANF benefits for a minor child born to a TANF recipient family with other children or to a person with other children who received TANF assistance during the ten-month period ending with the birth of the child, with certain exceptions for rape or incest, unless the State elects to opt out of the application of such prohibition. Exempts from such prohibition a minor child born into a family with no other children. Requires termination of TANF assistance after the TANF recipient's third refusal to engage in required work activities. Increases from 50 percent to 75 percent the minimum work participation rate required under TANF for FY 2002 and thereafter. Prohibits Federal TANF funds to States which do not establish random drug testing programs under which the TANF assistance for individual family recipients who test positive for controlled substance use is terminated. Amends SSA title XVI to expressly provide that nothing in it shall be construed to authorize recruitment activities under such title, including with respect to any outreach programs or demonstration projects.