★ 99–006

107TH CONGRESS REPT. 107–460 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1

PERSONAL RESPONSIBILITY, WORK, AND FAMILY

PROMOTION ACT OF 2002

MAY 14, 2002.—Committed to the Committee of the Whole House on the State of

the Union and ordered to be printed

Mr. THOMAS, from the Committee on Ways and Means,

submitted the following

R E P O R T

together with

MINORITY VIEWS

[To accompany H.R. 4090]

[Including cost estimate of the Congressional Budget Office]

The Committee on Ways and Means, to whom was referred the

bill (H.R. 4090) to reauthorize and improve the program of block

grants to States for temporary assistance for needy families, and

for other purposes, having considered the same, report favorably

thereon with an amendment and recommend that the bill as

amended do pass.

CONTENTS

Page

I. Introduction .................................................................................................... 27

A. Purpose and Scope ........................................................................... 27

B. Background and Need for Legislation ............................................ 28

C. Legislative History ........................................................................... 28

II. Explanation of Provisions ............................................................................. 29

III. Votes of the Committee ................................................................................. 68

IV. Budget Effects of the Bill .............................................................................. 72

A. Committee Estimate of Budgetary Effects ..................................... 72

B. Statement Regarding New Budget Authority and Tax Expenditures ................................................................................................. 87

V. Other Matters Required To Be Discussed Under the Rules of the House 88

A. Committee Matters Required To Be Discussed Under the Rules

of the House .................................................................................... 88

B. Summary of General Performance Goals and Objectives ............. 88

C. Constitutional Authority Statement ............................................... 89

D. Information Relating to Unfunded Mandates ............................... 89

VI. Changes in Existing Law Made by the Bill, as Reported ........................... 89

VII. Minority Views ............................................................................................... 149

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The amendment is as follows:

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Personal Responsibility, Work, and Family Promotion 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. References.

Sec. 4. Findings.

TITLE I—TANF

Sec. 101. Purposes.

Sec. 102. Family assistance grants.

Sec. 103. Promotion of family formation and healthy marriage.

Sec. 104. Supplemental grant for population increases in certain States.

Sec. 105. Bonus to reward employment achievement.

Sec. 106. Contingency fund.

Sec. 107. Use of funds.

Sec. 108. Repeal of Federal loan for State welfare programs.

Sec. 109. Universal engagement and family self-sufficiency plan requirements.

Sec. 110. Work participation requirements.

Sec. 111. Maintenance of effort.

Sec. 112. Performance improvement.

Sec. 113. Data collection and reporting.

Sec. 114. Direct funding and administration by Indian tribes.

Sec. 115. Research, evaluations, and national studies.

Sec. 116. Study by the Census Bureau.

Sec. 117. Definition of assistance.

Sec. 118. Technical corrections.

Sec. 119. Fatherhood program.

TITLE II—CHILD CARE

Sec. 201. Entitlement funding.

TITLE III—CHILD SUPPORT

Sec. 301. Federal matching funds for limited pass through of child support payments to families receiving

TANF.

Sec. 302. State option to pass through all child support payments to families that formerly received TANF.

Sec. 303. Mandatory review and adjustment of child support orders for families receiving TANF.

Sec. 304. Mandatory fee for successful child support collection for family that has never received TANF.

Sec. 305. Report on undistributed child support payments.

Sec. 306. Use of new hire information to assist in administration of unemployment compensation programs.

Sec. 307. Decrease in amount of child support arrearage triggering passport denial.

Sec. 308. Use of tax refund intercept program to collect past-due child support on behalf of children who are not minors. Sec. 309. Garnishment of compensation paid to veterans for service-connected disabilities in order to enforce

child support obligations.

Sec. 310. Improving Federal debt collection practices.

Sec. 311. Maintenance of technical assistance funding.

Sec. 312. Maintenance of Federal Parent Locator Service funding.

TITLE IV—CHILD WELFARE

Sec. 401. Extension of authority to approve demonstration projects.

Sec. 402. Elimination of limitation on number of waivers.

Sec. 403. Elimination of limitation on number of States that may be granted waivers to conduct demonstration

projects on same topic.

Sec. 404. Elimination of limitation on number of waivers that may be granted to a single State for demonstration projects.

Sec. 405. Streamlined process for consideration of amendments to and extensions of demonstration projects requiring waivers.

Sec. 406. Availability of reports.

Sec. 407. Technical correction.

TITLE V—SUPPLEMENTAL SECURITY INCOME

Sec. 501. Review of State agency blindness and disability determinations.

TITLE VI—BROADENED WAIVER AUTHORITY

Sec. 601. Program integration demonstration projects.

TITLE VII—EFFECTIVE DATE

Sec. 701. Effective date.

SEC. 3. REFERENCES.

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.

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SEC. 4. FINDINGS.

The Congress makes the following findings:

(1) The Temporary Assistance for Needy Families (TANF) Program established by the Personal Responsibility and Work Opportunity Reconciliation Act

of 1996 (Public Law 104–193) has succeeded in moving families from welfare

to work and reducing child poverty.

(A) There has been a dramatic increase in the employment of current and

former welfare recipients. The percentage of working recipients reached an

all-time high in fiscal years 1999 and 2000. In fiscal year 1999, 33 percent

of adult recipients were working, compared to less than 7 percent in fiscal

year 1992, and 11 percent in fiscal year 1996. All States met the overall

participation rate standard in fiscal year 2000, as did the District of Columbia and Puerto Rico.

(B) Earnings for welfare recipients remaining on the rolls have also increased significantly, as have earnings for female-headed households. The

increases have been particularly large for the bottom 2 income quintiles,

that is, those women who are most likely to be former or present welfare

recipients.

(C) Welfare dependency has plummeted. As of September 2001, 2,103,000

families and 5,333,000 individuals were receiving assistance. Accordingly,

the number of families in the welfare caseload and the number of individuals receiving cash assistance declined 52 percent and 56 percent, respectively, since the enactment of TANF. These declines have persisted even as

unemployment rates have increased: unemployment rates nationwide rose

25 percent, from 3.9 percent in September 2000 to 4.9 percent in September

2001, while welfare caseloads continued to drop by 7 percent.

(D) The child poverty rate continued to decline between 1996 and 2000,

falling 21 percent from 20.5 to 16.2 percent. The 2000 child poverty rate

is the lowest since 1979. Child poverty rates for African-American and Hispanic children have also fallen dramatically during the past 6 years. African-American child poverty is at the lowest rate on record and Hispanic

child poverty has had the largest 4-year decrease on record.

(E) Despite these gains, States have had mixed success in fully engaging

welfare recipients in work activities. While all States have met the overall

work participation rates required by law, in 2000, in an average month,

only about 1⁄3 of all families with an adult participated in work activities

that were countable toward the State’s participation rate. Eight jurisdictions failed to meet the more rigorous 2-parent work requirements, and

about 20 States are not subject to the 2-parent requirements, most because

they moved their 2-parent cases to separate State programs where they are

not subject to a penalty for failing the 2-parent rates.

(2) As a Nation, we have made substantial progress in reducing teen pregnancies and births, slowing increases in nonmarital childbearing, and improving

child support collections and paternity establishment.

(A) The teen birth rate has fallen continuously since 1991, down a dramatic 22 percent by 2000. During the period of 1991–2000, teenage birth

rates fell in all States and the District of Columbia, Puerto Rico, and the

Virgin Islands. Declines also have spanned age, racial, and ethnic groups.

There has been success in lowering the birth rate for both younger and

older teens. The birth rate for those 15–17 years of age is down 29 percent

since 1991, and the rate for those 18 and 19 is down 16 percent. Between

1991 and 2000, teen birth rates declined for all women ages 15–19—white,

African American, American Indian, Asian or Pacific Islander, and Hispanic

women ages 15–19. The rate for African American teens—until recently the

highest—experienced the largest decline, down 31 percent from 1991 to

2000, to reach the lowest rate ever reported for this group. Most births to

teens are nonmarital; in 2000, about 73 percent of the births to teens aged

15–19 occurred outside of marriage.

(B) Nonmarital childbearing continued to increase slightly in 2000, however not at the sharp rates of increase seen in recent decades. The birth

rate among unmarried women in 2000 was 3.5 percent lower than its peak

reached in 1994, while the proportion of births occurring outside of marriage has remained at approximately 33 percent since 1998.

(C) The negative consequences of out-of-wedlock birth on the mother, the

child, the family, and society are well documented. These include increased

likelihood of welfare dependency, increased risks of low birth weight, poor

cognitive development, child abuse and neglect, and teen parenthood, and

decreased likelihood of having an intact marriage during adulthood.

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(D) An estimated 23,900,000 children do not live with their biological father. 16,000,000 children live with their mother only. These facts are attributable largely to declining marriage rates, increasing divorce rates, and increasing rates of nonmarital births during the latter part of the 20th century.

(E) There has been a dramatic rise in cohabitation as marriages have declined. Only 40 percent of children of cohabiting couples will see their parents marry. Those who do marry experience a 50 percent higher divorce

rate. Children in single-parent households and cohabiting households are at

much higher risk of child abuse than children in intact married and stepparent families.

(F) Children who live apart from their biological fathers, on average, are

more likely to be poor, experience educational, health, emotional, and psychological problems, be victims of child abuse, engage in criminal behavior,

and become involved with the juvenile justice system than their peers who

live with their married, biological mother and father. A child living in a single-parent family is nearly 5 times as likely to be poor as a child living in

a married-couple family. In married-couple families, the child poverty rate

is 8.1 percent, in households headed by a single mother, the poverty rate

is 39.7 percent.

(G) Since the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, child support collections within the child

support enforcement system have grown every year, increasing from

$12,000,000,000 in fiscal year 1996 to nearly $19,000,000,000 in fiscal year

2001. The number of paternities established or acknowledged in fiscal year

2002 reached an historic high of over 1,500,000—which includes a nearly

100 percent increase through in-hospital acknowledgement programs to

688,510 in 2000 from 349,356 in 1996. Child support collections were made

in over 7,000,000 cases in fiscal year 2000, significantly more than the almost 4,000,000 cases having a collection in 1996.

(3) The Personal Responsibility and Work Opportunity Reconciliation Act of

1996 gave States great flexibility in the use of Federal funds to develop innovative programs to help families leave welfare and begin employment and to encourage the formation of 2-parent families.

(A) Total Federal and State TANF expenditures in fiscal year 2000 were $24,000,000,000, up from $22,600,000,000 for the previous year. This increased spending is attributable to significant new investments in supportive services in the TANF program, such as child care and activities to

support work.

(B) Since the welfare reform effort began there has been a dramatic increase in work participation (including employment, community service,

and work experience) among welfare recipients, as well as an unprecedented reduction in the caseload because recipients have left welfare for

work.

(C) States are making policy choices and investment decisions best suited

to the needs of their citizens.

(i) To expand aid to working families, all States disregard a portion

of a family’s earned income when determining benefit levels.

(ii) Most States increased the limits on countable assets above the

former Aid to Families with Dependent Children (AFDC) program.

Every State has increased the vehicle asset level above the prior AFDC

limit for a family’s primary automobile.

(iii) States are experimenting with programs to promote marriage

and father involvement. Over half the States have eliminated restrictions on 2-parent families. Many States use TANF, child support, or

State funds to support community-based activities to help fathers become more involved in their children’s lives or strengthen relationships

between mothers and fathers.

(4) Therefore, it is the sense of the Congress that increasing success in moving families from welfare to work, as well as in promoting healthy marriage and

other means of improving child well-being, are very important Government interests and the policy contained in part A of title IV of the Social Security Act

(as amended by this Act) is intended to serve these ends.

TITLE I—TANF

SEC. 101. PURPOSES.

Section 401(a) (42 U.S.C. 601(a)) is amended—

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(1) in the matter preceding paragraph (1), by striking ‘‘increase’’ and inserting ‘‘improve child well-being by increasing’’;

(2) in paragraph (1), by inserting ‘‘and services’’ after ‘‘assistance’’;

(3) in paragraph (2), by striking ‘‘parents on government benefits’’ and inserting ‘‘families on government benefits and reduce poverty’’; and

(4) in paragraph (4), by striking ‘‘two-parent families’’ and inserting ‘‘healthy,

2-parent married families, and encourage responsible fatherhood’’.

SEC. 102. FAMILY ASSISTANCE GRANTS.

(a) EXTENSION OF AUTHORITY.—Section 403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is

amended— (1) by striking ‘‘1996, 1997, 1998, 1999, 2000, 2001, and 2002’’ and inserting ‘‘2003 through 2007’’; and

(2) by inserting ‘‘payable to the State for the fiscal year’’ before the period.

(b) STATE FAMILY ASSISTANCE GRANT.—Section 403(a)(1) (42 U.S.C. 603(a)(1)) is

amended by striking subparagraphs (B) through (E) and inserting the following: ‘‘(B) STATE FAMILY ASSISTANCE GRANT.—The State family assistance grant

payable to a State for a fiscal year shall be the amount that bears the same

ratio to the amount specified in subparagraph (C) of this paragraph as the

amount required to be paid to the State under this paragraph for fiscal year

2002 (determined without regard to any reduction pursuant to section

412(a)(1)) bears to the total amount required to be paid under this paragraph for fiscal year 2002. ‘‘(C) APPROPRIATION.—Out of any money in the Treasury of the United

States not otherwise appropriated, there are appropriated for each of fiscal

years 2003 through 2007 $16,566,542,000 for grants under this paragraph.’’. (c) MATCHING GRANTS FOR THE TERRITORIES.—Section 1108(b)(2) (42 U.S.C.

1308(b)(2)) is amended by striking ‘‘1997 through 2002’’ and inserting ‘‘2003 through

2007’’.

SEC. 103. PROMOTION OF FAMILY FORMATION AND HEALTHY MARRIAGE.

(a) STATE PLANS.—Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is amended by

adding at the end the following: ‘‘(vii) Encourage equitable treatment of married, 2-parent families

under the program referred to in clause (i).’’. (b) HEALTHY MARRIAGE PROMOTION GRANTS; REPEAL OF BONUS FOR REDUCTION

OF ILLEGITIMACY RATIO.—Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read

as follows: ‘‘(2) HEALTHY MARRIAGE PROMOTION GRANTS.— ‘‘(A) AUTHORITY.—The Secretary shall award competitive grants to States,

territories, and tribal organizations for not more than 50 percent of the cost

of developing and implementing innovative programs to promote and support healthy, married, 2-parent families.

‘‘(B) HEALTHY MARRIAGE PROMOTION ACTIVITIES.—Funds provided under

subparagraph (A) shall be used to support any of the following programs

or activities:

‘‘(i) Public advertising campaigns on the value of marriage and the

skills needed to increase marital stability and health.

‘‘(ii) Education in high schools on the value of marriage, relationship

skills, and budgeting.

‘‘(iii) Marriage education, marriage skills, and relationship skills programs, including parenting skills, financial management, conflict resolution, and job and career advancement, for non-married pregnant

women and non-married expectant fathers.

‘‘(iv) Pre-marital education and marriage skills training for engaged

couples and for couples interested in marriage.

‘‘(v) Marriage enhancement and marriage skills training programs for

married couples.

‘‘(vi) Divorce reduction programs that teach relationship skills.

‘‘(vii) Marriage mentoring programs which use married couples as

role models and mentors in at-risk communities.

‘‘(viii) Programs to reduce the disincentives to marriage in meanstested aid programs, if offered in conjunction with any activity described in this subparagraph.

‘‘(C) APPROPRIATION.—Out of any money in the Treasury of the United

States not otherwise appropriated, there are appropriated for each of fiscal

years 2003 through 2007 $100,000,000 for grants under this paragraph.’’.

(c) COUNTING OF SPENDING ON NON-ELIGIBLE FAMILIES TO PREVENT AND REDUCE

INCIDENCE OF OUT-OF-WEDLOCK BIRTHS, ENCOURAGE FORMATION AND MAINTENANCE OF HEALTHY, 2-PARENT MARRIED FAMILIES, OR ENCOURAGE RESPONSIBLE FAVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6621 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
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THERHOOD.—Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is amended by adding

at the end the following: ‘‘(V) COUNTING OF SPENDING ON NON-ELIGIBLE FAMILIES TO PRE- VENT AND REDUCE INCIDENCE OF OUT-OF-WEDLOCK BIRTHS, ENCOUR- AGE FORMATION AND MAINTENANCE OF HEALTHY, 2-PARENT MARRIED

FAMILIES, OR ENCOURAGE RESPONSIBLE FATHERHOOD.—The term ‘qualified State expenditures’ includes the total expenditures by the

State during the fiscal year under all State programs for a purpose

described in paragraph (3) or (4) of section 401(a).’’.

SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN CERTAIN STATES.

Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is amended— (1) in the subparagraph heading, by striking ‘‘OF GRANTS FOR FISCAL YEAR

2002’’;

(2) in clause (i), by striking ‘‘fiscal year 2002’’ and inserting ‘‘each of fiscal

years 2002 through 2006’’;

(3) in clause (ii), by striking ‘‘2002’’ and inserting ‘‘2006’’; and

(4) in clause (iii), by striking ‘‘fiscal year 2002’’ and inserting ‘‘each of fiscal

years 2002 through 2006’’.

SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.

(a) REALLOCATION OF FUNDING.—Section 403(a)(4) (42 U.S.C. 603(a)(4)) is

amended— (1) in the paragraph heading, by striking ‘‘HIGH PERFORMANCE STATES’’ and

inserting ‘‘EMPLOYMENT ACHIEVEMENT’’;

(2) in subparagraph (D)(ii)— (A) in subclause (I), by striking ‘‘equals $200,000,000’’ and inserting ‘‘(other than 2003) equals $200,000,000, and for bonus year 2003 equals

$100,000,000’’; and

(B) in subclause (II), by striking ‘‘$1,000,000,000’’ and inserting ‘‘$900,000,000’’; and

(3) in subparagraph (F), by striking ‘‘$1,000,000,000’’ and inserting ‘‘$900,000,000’’. (b) BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.— (1) IN GENERAL.—Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended by striking subparagraphs (A) through (F) and inserting the following: ‘‘(A) IN GENERAL.—The Secretary shall make a grant pursuant to this

paragraph to each State for each bonus year for which the State is an employment achievement State. ‘‘(B) AMOUNT OF GRANT.— ‘‘(i) IN GENERAL.—Subject to clause (ii) of this subparagraph, the Secretary shall determine the amount of the grant payable under this

paragraph to an employment achievement State for a bonus year,

which shall be based on the performance of the State as determined

under subparagraph (D)(i) for the fiscal year that immediately precedes

the bonus year.

‘‘(ii) LIMITATION.—The amount payable to a State under this paragraph for a bonus year shall not exceed 5 percent of the State family

assistance grant.

‘‘(C) FORMULA FOR MEASURING STATE PERFORMANCE.—

‘‘(i) IN GENERAL.—Subject to clause (ii), not later than October 1,

2003, the Secretary, in consultation with the National Governors Association, the American Public Human Services Association, and the National Conference of State Legislatures, shall develop a formula for

measuring State performance in operating the State program funded

under this part so as to achieve the goals of employment entry, job retention, and increased earnings from employment for families receiving

assistance under the program, as measured on an absolute basis and

on the basis of improvement in State performance.

‘‘(ii) SPECIAL RULE FOR BONUS YEAR 2004.—For the purposes of awarding a bonus under this paragraph for bonus year 2004, the Secretary

may measure the performance of a State in fiscal year 2003 using the

job entry rate, job retention rate, and earnings gain rate components

of the formula developed under section 403(a)(4)(C) as in effect immediately before the effective date of this paragraph.

‘‘(D) DETERMINATION OF STATE PERFORMANCE.—For each bonus year, the

Secretary shall—

‘‘(i) use the formula developed under subparagraph (C) to determine

the performance of each eligible State for the fiscal year that precedes

the bonus year; and

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‘‘(ii) prescribe performance standards in such a manner so as to ensure that—

‘‘(I) the average annual total amount of grants to be made under

this paragraph for each bonus year equals $100,000,000; and

‘‘(II) the total amount of grants to be made under this paragraph

for all bonus years equals $500,000,000.

‘‘(E) DEFINITIONS.—In this paragraph:

‘‘(i) BONUS YEAR.—The term ‘bonus year’ means each of fiscal years

2004 through 2008.

‘‘(ii) EMPLOYMENT ACHIEVEMENT STATE.—The term ‘employment

achievement State’ means, with respect to a bonus year, an eligible

State whose performance determined pursuant to subparagraph (D)(i)

for the fiscal year preceding the bonus year equals or exceeds the performance standards prescribed under subparagraph (D)(ii) for such preceding fiscal year.

‘‘(F) APPROPRIATION.—Out of any money in the Treasury of the United

States not otherwise appropriated, there are appropriated for fiscal years

2004 through 2008 $500,000,000 for grants under this paragraph.

‘‘(G) GRANTS FOR TRIBAL ORGANIZATIONS.—This paragraph shall apply

with respect to tribal organizations in the same manner in which this paragraph applies with respect to States. In determining the criteria under

which to make grants to tribal organizations under this paragraph, the Secretary shall consult with tribal organizations.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect on October 1, 2003.

SEC. 106. CONTINGENCY FUND.

(a) DEPOSITS INTO FUND.—Section 403(b)(2) (42 U.S.C. 603(b)(2)) is amended—

(1) by striking ‘‘1997, 1998, 1999, 2000, 2001, and 2002’’ and inserting ‘‘2003

through 2007’’; and

(2) by striking all that follows ‘‘$2,000,000,000’’ and inserting a period.

(b) GRANTS.—Section 403(b)(3)(C)(ii) (42 U.S.C. 603(b)(3)(C)(ii)) is amended by

striking ‘‘fiscal years 1997 through 2002’’ and inserting ‘‘fiscal years 2003 through

2007’’.

(c) DEFINITION OF NEEDY STATE.—Clauses (i) and (ii) of section 403(b)(5)(B) (42

U.S.C. 603(b)(5)(B)) are amended by inserting after ‘‘1996’’ the following: ‘‘, and the

Food Stamp Act of 1977 as in effect during the corresponding 3-month period in the

fiscal year preceding such most recently concluded 3-month period,’’.

(d) ANNUAL RECONCILIATION: FEDERAL MATCHING OF STATE EXPENDITURES ABOVE

‘‘MAINTENANCE OF EFFORT’’ LEVEL.—Section 403(b)(6) (42 U.S.C. 603(b)(6)) is

amended—

(1) in subparagraph (A)(ii)—

(A) by adding ‘‘and’’ at the end of subclause (I);

(B) by striking ‘‘; and’’ at the end of subclause (II) and inserting a period;

and

(C) by striking subclause (III);

(2) in subparagraph (B)(i)(II), by striking all that follows ‘‘section

409(a)(7)(B)(iii))’’ and inserting a period;

(3) by amending subparagraph (B)(ii)(I) to read as follows: ‘‘(I) the qualified State expenditures (as defined in section

409(a)(7)(B)(i)) for the fiscal year; plus’’; and

(4) by striking subparagraph (C).

(e) CONSIDERATION OF CERTAIN CHILD CARE EXPENDITURES IN DETERMINING

STATE COMPLIANCE WITH CONTINGENCY FUND MAINTENANCE OF EFFORT REQUIREMENT.—Section 409(a)(10) (42 U.S.C. 609(a)(10)) is amended—

(1) by striking ‘‘(other than the expenditures described in subclause (I)(bb) of

that paragraph)) under the State program funded under this part’’ and inserting a close parenthesis; and

(2) by striking ‘‘excluding any amount expended by the State for child care

under subsection (g) or (i) of section 402 (as in effect during fiscal year 1994)

for fiscal year 1994,’’.

SEC. 107. USE OF FUNDS.

(a) GENERAL RULES.—Section 404(a)(2) (42 U.S.C. 604(a)(2)) is amended by striking ‘‘in any manner that’’ and inserting ‘‘for any purposes or activities for which’’.

(b) TREATMENT OF INTERSTATE IMMIGRANTS.—

(1) STATE PLAN PROVISION.—Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is

amended by striking clause (i) and redesignating clauses (ii) through (iv) as

clauses (i) through (iii), respectively.

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(2) USE OF FUNDS.—Section 404 (42 U.S.C. 604) is amended by striking subsection (c).

(c) INCREASE IN AMOUNT TRANSFERABLE TO CHILD CARE.—Section 404(d)(1) (42

U.S.C. 604(d)(1)) is amended by striking ‘‘30’’ and inserting ‘‘50’’. (d) INCREASE IN AMOUNT TRANSFERABLE TO TITLE XX PROGRAMS.—Section

404(d)(2)(B) (42 U.S.C. 604(d)(2)(B)) is amended to read as follows: ‘‘(B) APPLICABLE PERCENT.—For purposes of subparagraph (A), the applicable percent is 10 percent for fiscal year 2003 and each succeeding fiscal

year.’’. (e) CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS CARRIED OVER

FROM PRIOR YEARS TO PROVIDE TANF BENEFITS AND SERVICES.—Section 404(e) (42

U.S.C. 604(e)) is amended to read as follows: ‘‘(e) AUTHORITY TO CARRYOVER OR RESERVE CERTAIN AMOUNTS FOR BENEFITS OR

SERVICES OR FOR FUTURE CONTINGENCIES.— ‘‘(1) CARRYOVER.—A State or tribe may use a grant made to the State or tribe

under this part for any fiscal year to provide, without fiscal year limitation, any

benefit or service that may be provided under the State or tribal program funded under this part. ‘‘(2) CONTINGENCY RESERVE.—A State or tribe may designate any portion of

a grant made to the State or tribe under this part as a contingency reserve for

future needs, and may use any amount so designated to provide, without fiscal

year limitation, any benefit or service that may be provided under the State or

tribal program funded under this part. If a State or tribe so designates a portion of such a grant, the State shall, on an annual basis, include in its report

under section 411(a) the amount so designated.’’.

SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE PROGRAMS.

(a) REPEAL.—Section 406 (42 U.S.C. 606) is repealed.

(b) CONFORMING AMENDMENTS.— (1) Section 409(a) (42 U.S.C. 609(a)) is amended by striking paragraph (6).

(2) Section 412 (42 U.S.C. 612) is amended by striking subsection (f) and redesignating subsections (g) through (i) as subsections (f) through (h), respectively.

(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by striking ‘‘406,’’.

SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUFFICIENCY PLAN REQUIREMENTS.

(a) MODIFICATION OF STATE PLAN REQUIREMENTS.—Section 402(a)(1)(A) (42 U.S.C.

602(a)(1)(A)) is amended by striking clauses (ii) and (iii) and inserting the following: ‘‘(ii) Require a parent or caretaker receiving assistance under the program to engage in work or alternative self-sufficiency activities (as defined by the State), consistent with section 407(e)(2). ‘‘(iii) Require families receiving assistance under the program to engage in activities in accordance with family self-sufficiency plans developed pursuant to section 408(b).’’.

(b) ESTABLISHMENT OF FAMILY SELF-SUFFICIENCY PLANS.—

(1) IN GENERAL.—Section 408(b) (42 U.S.C. 608(b)) is amended to read as follows:

‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.—

‘‘(1) IN GENERAL.—A State to which a grant is made under section 403 shall—

‘‘(A) make an initial assessment, in the manner deemed appropriate by

the State, of the skills, prior work experience, and employability of each recipient of assistance under the program;

‘‘(B) establish for each family that includes a work-eligible individual receiving assistance under the State program funded under this part a selfsufficiency plan that specifies appropriate activities described in the State

plan submitted pursuant to section 402, including direct work activities as

appropriate designed to assist the family in achieving their maximum degree of self-sufficiency, and that provides for the ongoing participation of

the individual in the activities;

‘‘(C) require, at a minimum, each member of the family who is a workeligible individual (as defined in section 407(b)(2)(C)) to participate in activities in accordance with the self-sufficiency plan;

‘‘(D) monitor the participation of such family members in the activities

and the progress of the family toward self-sufficiency;

‘‘(E) regularly review the self-sufficiency plan; and

‘‘(F) revise the self-sufficiency plan as appropriate.

‘‘(2) TIMING.—The State shall comply with paragraph (1) with respect to a

family—

‘‘(A) in the case of a family that, as of October 1, 2002, is not receiving

assistance from the State program funded under this part, not later than

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60 days after the family first receives assistance on the basis of the most

recent application for the assistance; or ‘‘(B) in the case of a family that, as of such date, is receiving the assistance, not later than 12 months after the date of the enactment of this subsection.’’. (2) PENALTY FOR FAILURE TO ESTABLISH FAMILY SELF-SUFFICIENCY PLAN.—Section 409(a)(3) (42 U.S.C. 609(a)(3)) is amended— (A) in the paragraph heading, by inserting ‘‘OR ESTABLISH FAMILY SELF- SUFFICIENCY PLAN’’ after ‘‘RATES’’; and

(B) in subparagraph (A), by inserting ‘‘or 408(b)’’ after ‘‘407(a)’’.

SEC. 110. WORK PARTICIPATION REQUIREMENTS.

(a) IN GENERAL.—Section 407 (42 U.S.C. 607) is amended by striking all that precedes subsection (b)(3) and inserting the following:

‘‘SEC. 407. WORK PARTICIPATION REQUIREMENTS.

‘‘(a) PARTICIPATION RATE REQUIREMENTS.—A State to which a grant is made

under section 403 for a fiscal year shall achieve a minimum participation rate equal

to not less than— ‘‘(1) 50 percent for fiscal year 2003;

‘‘(2) 55 percent for fiscal year 2004;

‘‘(3) 60 percent for fiscal year 2005;

‘‘(4) 65 percent for fiscal year 2006; and

‘‘(5) 70 percent for fiscal year 2007 and each succeeding fiscal year. ‘‘(b) CALCULATION OF PARTICIPATION RATES.— ‘‘(1) AVERAGE MONTHLY RATE.—For purposes of subsection (a), the participation rate of a State for a fiscal year is the average of the participation rates

of the State for each month in the fiscal year. ‘‘(2) MONTHLY PARTICIPATION RATES; INCORPORATION OF 40-HOUR WORK WEEK

STANDARD.— ‘‘(A) IN GENERAL.—For purposes of paragraph (1), the participation rate

of a State for a month is— ‘‘(i) the total number of countable hours (as defined in subsection (c))

with respect to the counted families for the State for the month; divided

by‘‘(ii) 160 multiplied by the number of counted families for the State

for the month. ‘‘(B) COUNTED FAMILIES DEFINED.— ‘‘(i) IN GENERAL.—In subparagraph (A), the term ‘counted family’ means, with respect to a State and a month, a family that includes a

work-eligible individual and that receives assistance in the month

under the State program funded under this part, subject to clause (ii). ‘‘(ii) STATE OPTION TO EXCLUDE CERTAIN FAMILIES.—At the option of

a State, the term ‘counted family’ shall not include—

‘‘(I) a family in the first month for which the family receives assistance from a State program funded under this part on the basis

of the most recent application for such assistance; or

‘‘(II) on a case-by-case basis, a family in which the youngest child

has not attained 12 months of age.

‘‘(iii) STATE OPTION TO INCLUDE INDIVIDUALS RECEIVING ASSISTANCE

UNDER A TRIBAL FAMILY ASSISTANCE PLAN OR TRIBAL WORK PROGRAM.—

At the option of a State, the term ‘counted family’ may include families

in the State that are receiving assistance under a tribal family assistance plan approved under section 412 or under a tribal work program

to which funds are provided under this part.

‘‘(C) WORK-ELIGIBLE INDIVIDUAL DEFINED.—In this section, the term

‘work-eligible individual’ means an individual—

‘‘(i) who is married or a single head of household; and

‘‘(ii) whose needs are (or, but for sanctions under this part that have

been in effect for more than 3 months (whether or not consecutive) in

the preceding 12 months or under part D, would be) included in determining the amount of cash assistance to be provided to the family

under the State program funded under this part.’’.

(b) RECALIBRATION OF CASELOAD REDUCTION CREDIT.—Section 407(b)(3)(A)(ii) (42

U.S.C. 607(b)(3)(A)(ii)) is amended to read as follows:

‘‘(ii) the average monthly number of families that received assistance

under the State program funded under this part during—

‘‘(I) if the fiscal year is fiscal year 2003, fiscal year 1996;

‘‘(II) if the fiscal year is fiscal year 2004, fiscal year 1998;

‘‘(III) if the fiscal year is fiscal year 2005, fiscal year 2001;

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‘‘(IV) if the fiscal year is fiscal year 2006, fiscal year 2002; or

‘‘(V) if the fiscal year is fiscal year 2007, fiscal year 2003.’’.

(c) SUPERACHIEVER CREDIT.—Section 407(b) (42 U.S.C. 607(b)) is amended by

striking paragraphs (4) and (5) and inserting the following:

‘‘(4) SUPERACHIEVER CREDIT.—

‘‘(A) IN GENERAL.—The participation rate, determined under paragraphs

(1) and (2) of this subsection, of a superachiever State for a fiscal year shall

be increased by the lesser of—

‘‘(i) the amount (if any) of the superachiever credit applicable to the

State; or

‘‘(ii) the number of percentage points (if any) by which the minimum

participation rate required by subsection (a) for the fiscal year exceeds

50 percent.

‘‘(B) SUPERACHIEVER STATE.—For purposes of subparagraph (A), a State

is a superachiever State if the State caseload for fiscal year 2001 has declined by at least 60 percent from the State caseload for fiscal year 1995.

‘‘(C) AMOUNT OF CREDIT.—The superachiever credit applicable to a State

is the number of percentage points (if any) by which the decline referred

to in subparagraph (B) exceeds 60 percent.

‘‘(D) DEFINITIONS.—In this paragraph:

‘‘(i) STATE CASELOAD FOR FISCAL YEAR 2001.—The term ‘State caseload

for fiscal year 2001’ means the average monthly number of families

that received assistance during fiscal year 2001 under the State program funded under this part.

‘‘(ii) STATE CASELOAD FOR FISCAL YEAR 1995.—The term ‘State caseload for fiscal year 1995’ means the average monthly number of families that received aid under the State plan approved under part A (as

in effect on September 30, 1995) during fiscal year 1995.’’.

(d) COUNTABLE HOURS.—Section 407 of such Act (42 U.S.C. 607) is amended by

striking subsections (c) and (d) and inserting the following:

‘‘(c) COUNTABLE HOURS.—

‘‘(1) DEFINITION.—In subsection (b)(2), the term ‘countable hours’ means, with

respect to a family for a month, the total number of hours in the month in

which any member of the family who is a work-eligible individual is engaged

in a direct work activity or other activities specified by the State (excluding an

activity that does not address a purpose specified in section 401(a)), subject to

the other provisions of this subsection.

‘‘(2) LIMITATIONS.—Subject to such regulations as the Secretary may prescribe:

‘‘(A) MINIMUM WEEKLY AVERAGE OF 24 HOURS OF DIRECT WORK ACTIVITIES

REQUIRED.—If the work-eligible individuals in a family are engaged in a direct work activity for an average total of fewer than 24 hours per week in

a month, then the number of countable hours with respect to the family for

the month shall be zero.

‘‘(B) MAXIMUM WEEKLY AVERAGE OF 16 HOURS OF OTHER ACTIVITIES.—An

average of not more than 16 hours per week of activities specified by the

State (subject to the exclusion described in paragraph (1)) may be considered countable hours in a month with respect to a family.

‘‘(3) SPECIAL RULES.—For purposes of paragraph (1):

‘‘(A) PARTICIPATION IN QUALIFIED ACTIVITIES.—

‘‘(i) IN GENERAL.—If, with the approval of the State, the work-eligible

individuals in a family are engaged in 1 or more qualified activities for

an average total of at least 24 hours per week in a month, then all such

engagement in the month shall be considered engagement in a direct

work activity, subject to clause (iii).

‘‘(ii) QUALIFIED ACTIVITY DEFINED.—The term ‘qualified activity’

means an activity specified by the State (subject to the exclusion described in paragraph (1)) that meets such standards and criteria as the

State may specify, including—

‘‘(I) substance abuse counseling or treatment;

‘‘(II) rehabilitation treatment and services;

‘‘(III) work-related education or training directed effectively at

enabling the family member to work; or

‘‘(IV) job search or job readiness assistance.

‘‘(iii) LIMITATION.—

‘‘(I) IN GENERAL.—Except as provided in subclause (II), clause (i)

shall not apply to a family for more than 3 months in any period

of 24 consecutive months.

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‘‘(II) SPECIAL RULE APPLICABLE TO EDUCATION AND TRAINING.—A

State may, on a case-by-case basis, apply clause (i) to a work-eligible individual so that participation by the individual in education

or training, if needed to permit the individual to complete a certificate program or other specific course of education in preparation

for specific employment to fill a known job need in a local area,

may be considered countable hours with respect to the family of

the individual for not more than 4 months.

‘‘(B) SCHOOL ATTENDANCE BY TEEN HEAD OF HOUSEHOLD.—The work-eligible members of a family shall be considered to be engaged in a direct work

activity for an average of 40 hours per week in a month if the family includes an individual who is married, or is a single head of household, who

has not attained 20 years of age, and the individual—

‘‘(i) maintains satisfactory attendance at secondary school or the

equivalent in the month; or

‘‘(ii) participates in education directly related to employment for an

average of at least 20 hours per week in the month.

‘‘(d) DIRECT WORK ACTIVITY.—In this section, the term ‘direct work activity’

means—

‘‘(1) unsubsidized employment;

‘‘(2) subsidized private sector employment;

‘‘(3) subsidized public sector employment;

‘‘(4) on-the-job training;

‘‘(5) supervised work experience; or

‘‘(6) supervised community service.’’.

(e) PENALTIES AGAINST INDIVIDUALS.—Section 407(e)(1) (42 U.S.C. 607(e)(1)) is

amended to read as follows:

‘‘(1) REDUCTION OR TERMINATION OF ASSISTANCE.—

‘‘(A) IN GENERAL.—Except as provided in paragraph (2), if an individual

in a family receiving assistance under a State program funded under this

part fails to engage in activities required in accordance with this section,

or other activities required by the State under the program, and the family

does not otherwise engage in activities in accordance with the self-sufficiency plan established for the family pursuant to section 408(b), the State

shall—

‘‘(i) if the failure is partial or persists for not more than 1 month—

‘‘(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 failure occurs; or

‘‘(II) terminate all assistance to the family, subject to such good

cause exceptions as the State may establish; or

‘‘(ii) if the failure is total and persists for at least 2 consecutive

months, terminate all cash payments to the family including qualified

State expenditures (as defined in section 409(a)(7)(B)(i)) for at least 1

month and thereafter until the individual resumes full participation in

the activities, subject to such good cause exceptions as the State may

establish.

‘‘(B) SPECIAL RULE.—In the event of a conflict between a requirement of

clause (i)(II) or (ii) of subparagraph (A) and a requirement of a State constitution to provide assistance to needy parents and children, the State constitutional requirement shall control.’’.

(f) CONFORMING AMENDMENTS.—

(1) Section 404(k)(1)(D) (42 U.S.C. 604(k)(1)(D)) is amended by striking ‘‘work

activities (as defined in section 407(d)’’ and inserting ‘‘direct work activities’’.

(2) Section 407(f) (42 U.S.C. 607(f)) is amended in each of paragraphs (1) and

(2) by striking ‘‘work activity described in subsection (d)’’ and inserting ‘‘direct

work activity’’.

(3) The heading of section 409(a)(14) (42 U.S.C. 609(a)(14)) is amended by inserting ‘‘OR REFUSING TO ENGAGE IN ACTIVITIES UNDER A FAMILY SELF-SUFFICIENCY PLAN’’ after ‘‘WORK’’.

SEC. 111. MAINTENANCE OF EFFORT.

(a) IN GENERAL.—Section 409(a)(7) (42 U.S.C. 609(a)(7)) is amended—

(1) in subparagraph (A) by striking ‘‘fiscal year 1998, 1999, 2000, 2001, 2002,

or 2003’’ and inserting ‘‘fiscal year 2003, 2004, 2005, 2006, 2007 or 2008’’; and

(2) in subparagraph (B)(ii)—

(A) by inserting ‘‘preceding’’ before ‘‘fiscal year’’; and

(B) by striking ‘‘for fiscal years 1997 through 2002,’’.

(b) STATE SPENDING ON PROMOTING HEALTHY MARRIAGE.—

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(1) IN GENERAL.—Section 404 (42 U.S.C. 604) is amended by adding at the

end the following:

‘‘(l) MARRIAGE PROMOTION.—A State, territory, or tribal organization to which a

grant is made under section 403(a)(2) may use a grant made to the State, territory,

or tribal organization under any other provision of section 403 for marriage promotion activities, and the amount of any such grant so used shall be considered

State funds for purposes of section 403(a)(2).’’.

(2) FEDERAL TANF FUNDS USED FOR MARRIAGE PROMOTION DISREGARDED FOR

PURPOSES OF MAINTENANCE OF EFFORT REQUIREMENT.—Section 409(a)(7)(B)(i)

(42 U.S.C. 609(a)(7)(B)(i)), as amended by section 103(c) of this Act, is amended

by adding at the end the following:

‘‘(VI) EXCLUSION OF FEDERAL TANF FUNDS USED FOR MARRIAGE

PROMOTION ACTIVITIES.—Such term does not include the amount of

any grant made to the State under section 403 that is expended

for a marriage promotion activity.’’.

SEC. 112. PERFORMANCE IMPROVEMENT.

(a) STATE PLANS.—Section 402(a) (42 U.S.C. 602(a)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (A)—

(i) by redesignating clauses (vi) and (vii) (as added by section 103(a)

of this Act) as clauses (vii) and (viii); and

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

‘‘(v) Establish annual, specific numerical performance goals, measures, measurement methodology, and plans to improve outcomes with

respect to each of the 4 program purposes described in section 401(a).

‘‘(vi) Describe any strategies the State may be undertaking to

address—

‘‘(I) employment retention and advancement for recipients of assistance under the program, including placement into high-demand

jobs, consistent with the criteria used by the Secretary in establishing performance targets in regulations prescribed under section

403(a)(4)(B);

‘‘(II) efforts to reduce teen pregnancy;

‘‘(III) services for struggling and noncompliant families, and for

clients with special problems; and

‘‘(IV) program integration, including the extent to which employment and training services under the program are provided

through the One-Stop Career Center System created under the

Workforce Investment Act of 1998, and the extent to which former

recipients of such assistance have access to additional core, intensive, or training services funded through such Act.’’; and

(B) in subparagraph (B), by striking clause (iii) (as so redesignated by

section 107(b)(1) of this Act) and inserting the following:

‘‘(iii) The document shall describe strategies and programs the State

is undertaking to engage religious organizations in the provision of

services funded under this part and efforts related to section 104 of the

Personal Responsibility and Work Opportunity Reconcilation Act of

1996.

‘‘(iv) The document shall describe strategies to improve program

management and performance.’’; and

(2) in paragraph (4), by inserting ‘‘and tribal’’ after ‘‘that local’’.

(b) CONSULTATION WITH STATE REGARDING PLAN AND DESIGN OF TRIBAL PROGRAMS.—Section 412(b)(1) (42 U.S.C. 612(b)(1)) is amended—

(1) by striking ‘‘and’’ at the end of subparagraph (E);

(2) by striking the period at the end of subparagraph (F) and inserting ‘‘;

and’’; and

(3) by adding at the end the following:

‘‘(G) provides an assurance that the State in which the tribe is located

has been consulted regarding the plan and its design.’’.

(c) PERFORMANCE MEASURES.—Section 413 (42 U.S.C. 613) is amended by adding

at the end the following:

‘‘(k) PERFORMANCE IMPROVEMENT.—The Secretary, in consultation with the National Governors’ Association, the National Conference of State Legislatures, and

the American Public Human Services Association, shall develop uniform performance measures designed to assess the degree of effectiveness, and the degree of improvement, of State programs funded under this part in accomplishing the purposes

of this part.’’.

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(d) ANNUAL RANKING OF STATES.—Section 413(d)(1) (42 U.S.C. 613(d)(1)) is

amended by striking ‘‘long-term private sector jobs’’ and inserting ‘‘private sector

jobs, the success of the recipients in retaining employment, the ability of the recipients to increase their wages’’.

SEC. 113. DATA COLLECTION AND REPORTING.

(a) CONTENTS OF REPORT.— Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is

amended—

(1) in clause (vii), by inserting ‘‘and minor parent’’ after ‘‘of each adult’’;

(2) in clause (viii), by striking ‘‘and educational level’’;

(3) in clause (ix), by striking ‘‘, and if the latter 2, the amount received’’;

(4) in clause (x)—

(A) by striking ‘‘each type of’’; and

(B) by inserting before the period ‘‘and, if applicable, the reason for receipt of the assistance for a total of more than 60 months’’;

(5) in clause (xi), by striking the subclauses and inserting the following:

‘‘(I) Subsidized private sector employment.

‘‘(II) Unsubsidized employment.

‘‘(III) Public sector employment, supervised work experience, or

supervised community service.

‘‘(IV) On-the-job training.

‘‘(V) Job search and placement.

‘‘(VI) Training.

‘‘(VII) Education.

‘‘(VIII) Other activities directed at the purposes of this part, as

specified in the State plan submitted pursuant to section 402.’’;

(6) in clause (xii), by inserting ‘‘and progress toward universal engagement’’

after ‘‘participation rates’’;

(7) in clause (xiii), by striking ‘‘type and’’ before ‘‘amount of assistance’’;

(8) in clause (xvi), by striking subclause (II) and redesignating subclauses (III)

through (V) as subclauses (II) through (IV), respectively; and

(9) by adding at the end the following:

‘‘(xviii) The date the family first received assistance from the State

program on the basis of the most recent application for such assistance.

‘‘(xix) Whether a self-sufficiency plan is established for the family in

accordance with section 408(b).

‘‘(xx) With respect to any child in the family, the marital status of

the parents at the birth of the child, and if the parents were not then

married, whether the paternity of the child has been established.’’.

(b) USE OF SAMPLES.—Section 411(a)(1)(B) (42 U.S.C. 611(a)(1)(B)) is amended—

(1) in clause (i)—

(A) by striking ‘‘a sample’’ and inserting ‘‘samples’’; and

(B) by inserting before the period ‘‘, except that the Secretary may designate core data elements that must be reported on all families’’; and

(2) in clause (ii), by striking ‘‘funded under this part’’ and inserting ‘‘described

in subparagraph (A)’’.

(c) REPORT ON FAMILIES THAT BECOME INELIGIBLE TO RECEIVE ASSISTANCE.—Section 411(a) (42 U.S.C. 611(a)) is amended—

(1) by striking paragraph (5);

(2) by redesignating paragraph (6) as paragraph (5); and

(3) by inserting after paragraph (5) (as so redesignated) the following:

‘‘(6) REPORT ON FAMILIES THAT BECOME INELIGIBLE TO RECEIVE ASSISTANCE.—

The report required by paragraph (1) for a fiscal quarter shall include for each

month in the quarter the number of families and total number of individuals

that, during the month, became ineligible to receive assistance under the State

program funded under this part (broken down by the number of families that

become so ineligible due to earnings, changes in family composition that result

in increased earnings, sanctions, time limits, or other specified reasons).’’.

(d) REGULATIONS.—Section 411(a)(7) (42 U.S.C. 611(a)(7)) is amended—

(1) by inserting ‘‘and to collect the necessary data’’ before ‘‘with respect to

which reports’’;

(2) by striking ‘‘subsection’’ and inserting ‘‘section’’; and

(3) by striking ‘‘in defining the data elements’’ and all that follows and inserting ‘‘, the National Governors’ Association, the American Public Human Services Association, the National Conference of State Legislatures, and others in

defining the data elements.’’.

(e) ADDITIONAL REPORTS BY STATES.—Section 411 (42 U.S.C. 611) is amended—

(1) by redesignating subsection (b) as subsection (e); and

(2) by inserting after subsection (a) the following:

14

‘‘(b) ANNUAL REPORTS ON PROGRAM CHARACTERISTICS.—Not later than 90 days

after the end of fiscal year 2004 and each succeeding fiscal year, each eligible State

shall submit to the Secretary a report on the characteristics of the State program

funded under this part and other State programs funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)). The report shall include, with respect to each such program, the program name, a description of program activities,

the program purpose, the program eligibility criteria, the sources of program funding, the number of program beneficiaries, sanction policies, and any program work

requirements. ‘‘(c) MONTHLY REPORTS ON CASELOAD.—Not later than 3 months after the end of

a calendar month that begins 1 year or more after the enactment of this subsection,

each eligible State shall submit to the Secretary report on the number of families

and total number of individuals receiving assistance in the calendar month under

the State program funded under this part. ‘‘(d) ANNUAL REPORT ON PERFORMANCE IMPROVEMENT.—Beginning with fiscal

year 2004, not later than January 1 of each fiscal year, each eligible State shall submit to the Secretary a report on achievement and improvement during the preceding

fiscal year under the numerical performance goals and measures under the State

program funded under this part with respect to each of the matters described in section 402(a)(1)(A)(v).’’. (f) ANNUAL REPORTS TO CONGRESS BY THE SECRETARY.—Section 411(e), as so redesignated by subsection (e) of this section, is amended— (1) in the matter preceding paragraph (1), by striking ‘‘and each fiscal year

thereafter’’ and inserting ‘‘and by July 1 of each fiscal year thereafter’’;

(2) in paragraph (2), by striking ‘‘families applying for assistance,’’ and by

striking the last comma; and

(3) in paragraph (3), by inserting ‘‘and other programs funded with qualified

State expenditures (as defined in section 409(a)(7)(B)(i))’’ before the semicolon.

(g) INCREASED ANALYSIS OF STATE SINGLE AUDIT REPORTS.—Section 411 (42

U.S.C. 611) is amended by adding at the end the following: ‘‘(f) INCREASED ANALYSIS OF STATE SINGLE AUDIT REPORTS.— ‘‘(1) IN GENERAL.—Within 3 months after a State submits to the Secretary a

report pursuant to section 7502(a)(1)(A) of title 31, United States Code, the Secretary shall analyze the report for the purpose of identifying the extent and nature of problems related to the oversight by the State of nongovernmental entities with respect to contracts entered into by such entities with the State program funded under this part, and determining what additional actions may be

appropriate to help prevent and correct the problems. ‘‘(2) INCLUSION OF PROGRAM OVERSIGHT SECTION IN ANNUAL REPORT TO THE

CONGRESS.—The Secretary shall include in each report under subsection (a) a

section on oversight of State programs funded under this part, including findings on the extent and nature of the problems referred to in paragraph (1), actions taken to resolve the problems, and to the extent the Secretary deems appropriate make recommendations on changes needed to resolve the problems.’’.

SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

(a) TRIBAL FAMILY ASSISTANCE GRANT.—Section 412(a)(1)(A) (42 U.S.C.

612(a)(1)(A)) is amended by striking ‘‘1997, 1998, 1999, 2000, 2001, and 2002’’ and

inserting ‘‘2003 through 2007’’.

(b) GRANTS FOR INDIAN TRIBES THAT RECEIVED JOBS FUNDS.—Section

412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)) is amended by striking ‘‘1997, 1998, 1999, 2000,

2001, and 2002’’ and inserting ‘‘2003 through 2007’’.

SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

(a) SECRETARY’S FUND FOR RESEARCH, DEMONSTRATIONS, AND TECHNICAL ASSISTANCE.—Section 413 (42 U.S.C. 613), as amended by section 112(c) of this Act, is further amended by adding at the end the following:

‘‘(l) FUNDING FOR RESEARCH, DEMONSTRATIONS, AND TECHNICAL ASSISTANCE.—

‘‘(1) IN GENERAL.—Out of any money in the Treasury of the United States not

otherwise appropriated, there are appropriated $102,000,000 for each of fiscal

years 2003 through 2007, which shall be available to the Secretary for the purpose of conducting and supporting research and demonstration projects by public or private entities, and providing technical assistance to States, Indian tribal

organizations, and such other entities as the Secretary may specify that are receiving a grant under this part, which shall be expended primarily on activities

described in section 403(a)(2)(B), and which shall be in addition to any other

funds made available under this part.

‘‘(2) SET ASIDE FOR DEMONSTRATION PROJECTS FOR COORDINATION OF PROVISION OF CHILD WELFARE AND TANF SERVICES TO TRIBAL FAMILIES AT RISK OF

CHILD ABUSE OR NEGLECT.—

15

‘‘(A) IN GENERAL.—Of the amounts made available under paragraph (1) for a fiscal year, $2,000,000 shall be awarded on a competitive basis to fund

demonstration projects designed to test the effectiveness of tribal governments or tribal consortia in coordinating the provision to tribal families at

risk of child abuse or neglect of child welfare services and services under

tribal programs funded under this part. ‘‘(B) USE OF FUNDS.—A grant made to such a project shall be used— ‘‘(i) to improve case management for families eligible for assistance

from such a tribal program; ‘‘(ii) for supportive services and assistance to tribal children in outof-home placements and the tribal families caring for such children, including families who adopt such children; and

‘‘(iii) for prevention services and assistance to tribal families at risk

of child abuse and neglect.

‘‘(C) REPORTS.—The Secretary may require a recipient of funds awarded

under this paragraph to provide the Secretary with such information as the

Secretary deems relevant to enable the Secretary to facilitate and oversee

the administration of any project for which funds are provided under this

paragraph.’’.

(b) FUNDING OF STUDIES AND DEMONSTRATIONS.—Section 413(h)(1) (42 U.S.C.

613(h)(1)) is amended in the matter preceding subparagraph (A) by striking ‘‘1997

through 2002’’ and inserting ‘‘2003 through 2007’’.

(c) REPORT ON ENFORCEMENT OF CERTAIN AFFIDAVITS OF SUPPORT AND SPONSOR

DEEMING.—Not later than March 31, 2004, the Secretary of Health and Human

Services, in consultation with the Attorney General, shall submit to the Congress

a report on the enforcement of affidavits of support and sponsor deeming as required by section 421, 422, and 432 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

SEC. 116. STUDY BY THE CENSUS BUREAU.

(a) IN GENERAL.—Section 414(a) (42 U.S.C. 614(a)) is amended to read as follows:

‘‘(a) IN GENERAL.—The Bureau of the Census shall implement a new longitudinal

survey of program dynamics, developed in consultation with the Secretary and made

available to interested parties, to allow for the assessment of the outcomes of continued welfare reform on the economic and child well-being of low-income families with

children, including those who received assistance or services from a State program

funded under this part, and, to the extent possible, shall provide State representative samples. The content of the survey should include such information as may be

necessary to examine the issues of out-of-wedlock childbearing, marriage, welfare

dependency, the beginning and ending of spells of assistance, work, earnings and

employment stability, and the well-being of children.’’.

(b) APPROPRIATION.—Section 414(b) (42 U.S.C. 614(b)) is amended by striking

‘‘1996,’’ and all that follows through ‘‘2002’’ and inserting ‘‘2003 through 2007’’.

SEC. 117. DEFINITION OF ASSISTANCE.

(a) IN GENERAL.—Section 419 (42 U.S.C. 619) is amended by adding at the end

the following:

‘‘(6) ASSISTANCE.—

‘‘(A) IN GENERAL.—The term ‘assistance’ means payment, by cash, voucher, or other means, to or for an individual or family for the purpose of meeting a subsistence need of the individual or family (including food, clothing,

shelter, and related items, but not including costs of transportation or child

care).

‘‘(B) EXCEPTION.—The term ‘assistance’ does not include a payment described in subparagraph (A) to or for an individual or family on a shortterm, nonrecurring basis (as defined by the State in accordance with regulations prescribed by the Secretary).’’.

(b) CONFORMING AMENDMENTS.—

(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by striking ‘‘assistance’’

and inserting ‘‘aid’’.

(2) Section 404(f) (42 U.S.C. 604(f)) is amended by striking ‘‘assistance’’ and

inserting ‘‘benefits or services’’.

(3) Section 408(a)(5)(B)(i) (42 U.S.C. 608(a)(5)(B)(i)) is amended in the heading by striking ‘‘ASSISTANCE’’ and inserting ‘‘AID’’.

(4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is amended by striking ‘‘assistance’’

and inserting ‘‘aid’’.

SEC. 118. TECHNICAL CORRECTIONS.

(a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is amended by inserting a comma after

‘‘appropriate’’.

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(b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. 611(a)(1)(A)(ii)(III)) is amended by striking the last close parenthesis.

(c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is amended by striking ‘‘section’’

and inserting ‘‘sections’’.

(d)(1) Section 413 (42 U.S.C. 613) is amended by striking subsection (g) and redesignating subsections (h) through (j) and subsections (k) and (l) (as added by sections

112(c) and 115(a) of this Act, respectively) as subsections (g) through (k), respectively.

(2) Each of the following provisions is amended by striking ‘‘413(j)’’ and inserting

‘‘413(i)’’:

(A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C. 603(a)(5)(A)(ii)(III)).

(B) Section 403(a)(5)(F) (42 U.S.C. 603(a)(5)(F)).

(C) Section 403(a)(5)(G)(ii) (42 U.S.C. 603(a)(5)(G)(ii)).

(D) Section 412(a)(3)(B)(iv) (42 U.S.C. 612(a)(3)(B)(iv)).

SEC. 119. FATHERHOOD PROGRAM.

(a) SHORT TITLE.—This section may be cited as the ‘‘Promotion and Support of Responsible Fatherhood and Healthy Marriage Act of 2002’’.

(b) FATHERHOOD PROGRAM.—

(1) IN GENERAL.—Title I of the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996 (Public Law 104–193) is amended by adding at the

end the following:

‘‘SEC. 117. FATHERHOOD PROGRAM.

‘‘(a) IN GENERAL.—Title IV (42 U.S.C. 601–679b) is amended by inserting after

part B the following:

‘PART C—FATHERHOOD PROGRAM

‘SEC. 441. FINDINGS AND PURPOSES.

‘(a) FINDINGS.—The Congress finds that there is substantial evidence strongly indicating the urgent need to promote and support involved, committed, and responsible fatherhood, and to encourage and support healthy marriages between parents

raising children, including data demonstrating the following:

‘(1) In approximately 90 percent of cases where a parent is absent, that parent is the father.

‘(2) By some estimates, 60 percent of children born in the 1990’s will spend

a significant portion of their childhood in a home without a father.

‘(3) Nearly 75 percent of children in single-parent homes will experience poverty before they are 11 years old, compared with only 20 percent of children in

2-parent families.

‘(4) Low income is positively correlated with children’s difficulties with education, social adjustment, and delinquency, and single-parent households constitute a disproportionate share of low-income households.

‘(5) Where families (whether intact or with a parent absent) are living in poverty, a significant factor is the father’s lack of job skills.

‘(6) Children raised in 2-parent married families, on average, fare better as

a group in key areas, including better school performance, reduced rates of substance abuse, crime, and delinquency, fewer health, emotional, and behavioral

problems, lower rates of teenage sexual activity, less risk of abuse or neglect,

and lower risk of teen suicide.

‘(7) Committed and responsible fathering during infancy and early childhood

contributes to the development of emotional security, curiosity, and math and

verbal skills.

‘(8) An estimated 24,000,000 children (33.5 percent) live apart from their biological father.

‘(9) A recent national survey indicates that of all children under age 18 not

living with their biological father, 29 percent had not seen their father even

once in the last 12 months.

‘(b) PURPOSES.—The purposes of this part are:

‘(1) To provide for projects and activities by public entities and by nonprofit

community entities, including religious organizations, designed to test promising approaches to accomplishing the following objectives:

‘(A) Promoting responsible, caring, and effective parenting through counseling, mentoring, and parenting education, dissemination of educational

materials and information on parenting skills, encouragement of positive father involvement, including the positive involvement of nonresident fathers,

and other methods.

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‘(B) Enhancing the abilities and commitment of unemployed or low-income fathers to provide material support for their families and to avoid or

leave welfare programs by assisting them to take full advantage of education, job training, and job search programs, to improve work habits and

work skills, to secure career advancement by activities such as outreach

and information dissemination, coordination, as appropriate, with employment services and job training programs, including the One-Stop delivery

system established under title I of the Workforce Investment Act of 1998,

encouragement and support of timely payment of current child support and

regular payment toward past due child support obligations in appropriate

cases, and other methods. ‘(C) Improving fathers’ ability to effectively manage family business affairs by means such as education, counseling, and mentoring in matters including household management, budgeting, banking, and handling of financial transactions, time management, and home maintenance. ‘(D) Encouraging and supporting healthy marriages and married fatherhood through such activities as premarital education, including the use of

premarital inventories, marriage preparation programs, skills-based marriage education programs, marital therapy, couples counseling, divorce education and reduction programs, divorce mediation and counseling, relationship skills enhancement programs, including those designed to reduce child

abuse and domestic violence, and dissemination of information about the

benefits of marriage for both parents and children. ‘(2) Through the projects and activities described in paragraph (1), to improve

outcomes for children with respect to measures such as increased family income

and economic security, improved school performance, better health, improved

emotional and behavioral stability and social adjustment, and reduced risk of

delinquency, crime, substance abuse, child abuse and neglect, teen sexual activity, and teen suicide. ‘(3) To evaluate the effectiveness of various approaches and to disseminate

findings concerning outcomes and other information in order to encourage and

facilitate the replication of effective approaches to accomplishing these objectives.

‘SEC. 442. DEFINITIONS.

‘In this part, the terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ have the meanings

given them in subsections (e) and (l), respectively, of section 4 of the Indian SelfDetermination and Education Assistance Act.

‘SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.

‘(a) IN GENERAL.—The Secretary may make grants for fiscal years 2003 through

2007 to public and nonprofit community entities, including religious organizations,

and to Indian tribes and tribal organizations, for demonstration service projects and

activities designed to test the effectiveness of various approaches to accomplish the

objectives specified in section 441(b)(1).

‘(b) ELIGIBILITY CRITERIA FOR FULL SERVICE GRANTS.—In order to be eligible for

a grant under this section, except as specified in subsection (c), an entity shall submit an application to the Secretary containing the following:

‘(1) PROJECT DESCRIPTION.—A statement including—

‘(A) a description of the project and how it will be carried out, including

the geographical area to be covered and the number and characteristics of

clients to be served, and how it will address each of the 4 objectives specified in section 441(b)(1); and

‘(B) a description of the methods to be used by the entity or its contractor

to assess the extent to which the project was successful in accomplishing

its specific objectives and the general objectives specified in section

441(b)(1).

‘(2) EXPERIENCE AND QUALIFICATIONS.—A demonstration of ability to carry out

the project, by means such as demonstration of experience in successfully carrying out projects of similar design and scope, and such other information as

the Secretary may find necessary to demonstrate the entity’s capacity to carry

out the project, including the entity’s ability to provide the non-Federal share

of project resources.

‘(3) ADDRESSING CHILD ABUSE AND NEGLECT AND DOMESTIC VIOLENCE.—A description of how the entity will assess for the presence of, and intervene to resolve, domestic violence and child abuse and neglect, including how the entity

will coordinate with State and local child protective service and domestic violence programs.

‘(4) ADDRESSING CONCERNS RELATING TO SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A commitment to make available to each individual participating in the

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project education about alcohol, tobacco, and other drugs, and about the health

risks associated with abusing such substances, and information about diseases

and conditions transmitted through substance abuse and sexual contact, including HIV/AIDS, and to coordinate with providers of services addressing such

problems, as appropriate.

‘(5) COORDINATION WITH SPECIFIED PROGRAMS.—An undertaking to coordinate,

as appropriate, with State and local entities responsible for the programs under

parts A, B, and D of this title, including programs under title I of the Workforce

Investment Act of 1998 (including the One-Stop delivery system), and such

other programs as the Secretary may require.

‘(6) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records,

make such reports, and cooperate with such reviews or audits as the Secretary

may find necessary for purposes of oversight of project activities and expenditures.

‘(7) SELF-INITIATED EVALUATION.—If the entity elects to contract for independent evaluation of the project (part or all of the cost of which may be paid

for using grant funds), a commitment to submit to the Secretary a copy of the

evaluation report within 30 days after completion of the report and not more

than 1 year after completion of the project.

‘(8) COOPERATION WITH SECRETARY’S OVERSIGHT AND EVALUATION.—An agreement to cooperate with the Secretary’s evaluation of projects assisted under this

section, by means including random assignment of clients to service recipient

and control groups, if determined by the Secretary to be appropriate, and affording the Secretary access to the project and to project-related records and documents, staff, and clients.

‘(c) ELIGIBILITY CRITERIA FOR LIMITED PURPOSE GRANTS.—In order to be eligible

for a grant under this section in an amount under $25,000 per fiscal year, an entity

shall submit an application to the Secretary containing the following:

‘(1) PROJECT DESCRIPTION.—A description of the project and how it will be carried out, including the number and characteristics of clients to be served, the

proposed duration of the project, and how it will address at least 1 of the 4 objectives specified in section 441(b)(1).

‘(2) QUALIFICATIONS.—Such information as the Secretary may require as to

the capacity of the entity to carry out the project, including any previous experience with similar activities.

‘(3) COORDINATION WITH RELATED PROGRAMS.—As required by the Secretary

in appropriate cases, an undertaking to coordinate and cooperate with State and

local entities responsible for specific programs relating to the objectives of the

project including, as appropriate, jobs programs and programs serving children

and families.

‘(4) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records,

make such reports, and cooperate with such reviews or audits as the Secretary

may find necessary for purposes of oversight of project activities and expenditures.

‘(5) COOPERATION WITH SECRETARY’S OVERSIGHT AND EVALUATION.—An agreement to cooperate with the Secretary’s evaluation of projects assisted under this

section, by means including affording the Secretary access to the project and to

project-related records and documents, staff, and clients.

‘(d) CONSIDERATIONS IN AWARDING GRANTS.—

‘(1) DIVERSITY OF PROJECTS.—In awarding grants under this section, the Secretary shall seek to achieve a balance among entities of differing sizes, entities

in differing geographic areas, entities in urban and in rural areas, and entities

employing differing methods of achieving the purposes of this section, including

working with the State agency responsible for the administration of part D to

help fathers satisfy child support arrearage obligations.

‘(2) PREFERENCE FOR PROJECTS SERVING LOW-INCOME FATHERS.—In awarding

grants under this section, the Secretary may give preference to applications for

projects in which a majority of the clients to be served are low-income fathers.

‘(e) FEDERAL SHARE.—

‘(1) IN GENERAL.—Grants for a project under this section for a fiscal year shall

be available for a share of the cost of such project in such fiscal year equal to—

‘(A) up to 80 percent (or up to 90 percent, if the entity demonstrates to

the Secretary’s satisfaction circumstances limiting the entity’s ability to secure non-Federal resources) in the case of a project under subsection (b);

and

‘(B) up to 100 percent, in the case of a project under subsection (c).

‘(2) NON-FEDERAL SHARE.—The non-Federal share may be in cash or in kind.

In determining the amount of the non-Federal share, the Secretary may atVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00018 Fmt 6659 Sfmt 6621 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
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tribute fair market value to goods, services, and facilities contributed from nonFederal sources.

‘SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION PROJECTS.

‘(a) IN GENERAL.—The Secretary may make grants under this section for fiscal

years 2003 through 2007 to eligible entities (as specified in subsection (b)) for 2

multicity, multistate projects demonstrating approaches to achieving the objectives

specified in section 441(b)(1). One of the projects shall test the use of married couples to deliver program services.

‘(b) ELIGIBLE ENTITIES.—An entity eligible for a grant under this section must be

a national nonprofit fatherhood promotion organization that meets the following requirements:

‘(1) EXPERIENCE WITH FATHERHOOD PROGRAMS.—The organization must have

substantial experience in designing and successfully conducting programs that

meet the purposes described in section 441.

‘(2) EXPERIENCE WITH MULTICITY, MULTISTATE PROGRAMS AND GOVERNMENT

COORDINATION.—The organization must have experience in simultaneously conducting such programs in more than 1 major metropolitan area in more than

1 State and in coordinating such programs, where appropriate, with State and

local government agencies and private, nonprofit agencies (including community-based and religious organizations), including State or local agencies responsible for child support enforcement and workforce development.

‘(c) APPLICATION REQUIREMENTS.—In order to be eligible for a grant under this

section, an entity must submit to the Secretary an application that includes the following:

‘(1) QUALIFICATIONS.—

‘(A) ELIGIBLE ENTITY.—A demonstration that the entity meets the requirements of subsection (b).

‘(B) OTHER.—Such other information as the Secretary may find necessary

to demonstrate the entity’s capacity to carry out the project, including the

entity’s ability to provide the non-Federal share of project resources.

‘(2) PROJECT DESCRIPTION.—A description of and commitments concerning the

project design, including the following:

‘(A) IN GENERAL.—A detailed description of the proposed project design

and how it will be carried out, which shall—

‘(i) provide for the project to be conducted in at least 3 major metropolitan areas;

‘(ii) state how it will address each of the 4 objectives specified in section 441(b)(1);

‘(iii) demonstrate that there is a sufficient number of potential clients

to allow for the random selection of individuals to participate in the

project and for comparisons with appropriate control groups composed

of individuals who have not participated in such projects; and

‘(iv) demonstrate that the project is designed to direct a majority of

project resources to activities serving low-income fathers (but the

project need not make services available on a means-tested basis).

‘(B) OVERSIGHT, EVALUATION, AND ADJUSTMENT COMPONENT.—An agreement that the entity—

‘(i) in consultation with the evaluator selected pursuant to section

445, and as required by the Secretary, will modify the project design,

initially and (if necessary) subsequently throughout the duration of the

project, in order to facilitate ongoing and final oversight and evaluation

of project operation and outcomes (by means including, to the maximum extent feasible, random assignment of clients to service recipient

and control groups), and to provide for mid-course adjustments in

project design indicated by interim evaluations;

‘(ii) will submit to the Secretary revised descriptions of the project design as modified in accordance with clause (i); and

‘(iii) will cooperate fully with the Secretary’s ongoing oversight and

ongoing and final evaluation of the project, by means including affording the Secretary access to the project and to project-related records

and documents, staff, and clients.

‘(3) ADDRESSING CHILD ABUSE AND NEGLECT AND DOMESTIC VIOLENCE.—A description of how the entity will assess for the presence of, and intervene to resolve, domestic violence and child abuse and neglect, including how the entity

will coordinate with State and local child protective service and domestic violence programs.

‘(4) ADDRESSING CONCERNS RELATING TO SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A commitment to make available to each individual participating in the

20

project education about alcohol, tobacco, and other drugs, and about the health

risks associated with abusing such substances, and information about diseases

and conditions transmitted through substance abuse and sexual contact, including HIV/AIDS, and to coordinate with providers of services addressing such

problems, as appropriate.

‘(5) COORDINATION WITH SPECIFIED PROGRAMS.—An undertaking to coordinate,

as appropriate, with State and local entities responsible for the programs funded under parts A, B, and D of this title, programs under title I of the Workforce

Investment Act of 1998 (including the One-Stop delivery system), and such

other programs as the Secretary may require.

‘(6) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records,

make such reports, and cooperate with such reviews or audits (in addition to

those required under the preceding provisions of paragraph (2)) as the Secretary

may find necessary for purposes of oversight of project activities and expenditures.

‘(d) FEDERAL SHARE.—

‘(1) IN GENERAL.—Grants for a project under this section for a fiscal year shall

be available for up to 80 percent of the cost of such project in such fiscal year.

‘(2) NON-FEDERAL SHARE.—The non-Federal share may be in cash or in kind.

In determining the amount of the non-Federal share, the Secretary may attribute fair market value to goods, services, and facilities contributed from nonFederal sources.

‘SEC. 445. EVALUATION.

‘(a) IN GENERAL.—The Secretary, directly or by contract or cooperative agreement,

shall evaluate the effectiveness of service projects funded under sections 443 and

444 from the standpoint of the purposes specified in section 441(b)(1).

‘(b) EVALUATION METHODOLOGY.—Evaluations under this section shall—

‘(1) include, to the maximum extent feasible, random assignment of clients to

service delivery and control groups and other appropriate comparisons of groups

of individuals receiving and not receiving services;

‘(2) describe and measure the effectiveness of the projects in achieving their

specific project goals; and

‘(3) describe and assess, as appropriate, the impact of such projects on marriage, parenting, domestic violence, child abuse and neglect, money management, employment and earnings, payment of child support, and child well-being,

health, and education.

‘(c) EVALUATION REPORTS.—The Secretary shall publish the following reports on

the results of the evaluation:

‘(1) An implementation evaluation report covering the first 24 months of the

activities under this part to be completed by 36 months after initiation of such

activities.

‘(2) A final report on the evaluation to be completed by September 30, 2010.

‘SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.

‘The Secretary is authorized, by grant, contract, or cooperative agreement, to

carry out projects and activities of national significance relating to fatherhood promotion, including—

‘(1) COLLECTION AND DISSEMINATION OF INFORMATION.—Assisting States, communities, and private entities, including religious organizations, in efforts to

promote and support marriage and responsible fatherhood by collecting, evaluating, developing, and making available (through the Internet and by other

means) to all interested parties information regarding approaches to accomplishing the objectives specified in section 441(b)(1).

‘(2) MEDIA CAMPAIGN.—Developing, promoting, and distributing to interested

States, local governments, public agencies, and private nonprofit organizations,

including charitable and religious organizations, a media campaign that promotes and encourages involved, committed, and responsible fatherhood and

married fatherhood.

‘(3) TECHNICAL ASSISTANCE.—Providing technical assistance, including consultation and training, to public and private entities, including community organizations and faith-based organizations, in the implementation of local fatherhood promotion programs.

‘(4) RESEARCH.—Conducting research related to the purposes of this part.

‘SEC. 447. NONDISCRIMINATION.

‘The projects and activities assisted under this part shall be available on the same

basis to all fathers and expectant fathers able to benefit from such projects and activities, including married and unmarried fathers and custodial and noncustodial faVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00020 Fmt 6659 Sfmt 6621 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
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thers, with particular attention to low-income fathers, and to mothers and expectant

mothers on the same basis as to fathers.

‘SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RESERVATION FOR CERTAIN PURPOSE.

‘(a) AUTHORIZATION.—There are authorized to be appropriated $20,000,000 for

each of fiscal years 2003 through 2007 to carry out the provisions of this part.

‘(b) RESERVATION.—Of the amount appropriated under this section for each fiscal

year, not more than 15 percent shall be available for the costs of the multicity,

multicounty, multistate demonstration projects under section 444, evaluations under

section 445, and projects of national significance under section 446.’.

‘‘(b) INAPPLICABILITY OF EFFECTIVE DATE PROVISIONS.—Section 116 shall not

apply to the amendment made by subsection (a) of this section.’’.

(2) CLERICAL AMENDMENT.—Section 2 of such Act is amended in the table of

contents by inserting after the item relating to section 116 the following new

item:

‘‘Sec. 117.Fatherhood program.’’.

TITLE II—CHILD CARE

SEC. 201. ENTITLEMENT FUNDING.

Section 418(a)(3)(F) (42 U.S.C. 618(a)(3)(F)) is amended to read as follows:

‘‘(F) $2,717,000,000 for each of fiscal years 2002 through 2007.’’.

TITLE III—CHILD SUPPORT

SEC. 301. FEDERAL MATCHING FUNDS FOR LIMITED PASS THROUGH OF CHILD SUPPORT PAYMENTS TO FAMILIES RECEIVING TANF.

(a) IN GENERAL.—Section 457(a) (42 U.S.C. 657(a)) is amended—

(1) in paragraph (1)(A), by inserting ‘‘subject to paragraph (7)’’ before the

semicolon; and

(2) by adding at the end the following:

‘‘(7) FEDERAL MATCHING FUNDS FOR LIMITED PASS THROUGH OF CHILD SUPPORT

PAYMENTS TO FAMILIES RECEIVING TANF.—Notwithstanding paragraph (1), a

State shall not be required to pay to the Federal Government the Federal share

of an amount collected during a month on behalf of a family that is a recipient

of assistance under the State program funded under part A, to the extent that—

‘‘(A) the State distributes the amount to the family;

‘‘(B) the total of the amounts so distributed to the family during the

month—

‘‘(i) exceeds the amount (if any) that, as of December 31, 2001, was

required under State law to be distributed to a family under paragraph

(1)(B); and

‘‘(ii) does not exceed the greater of—

‘‘(I) $100; or

‘‘(II) $50 plus the amount described in clause (i); and

‘‘(C) the amount is disregarded in determining the amount and type of

assistance provided to the family under the State program funded under

part A.’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to

amounts distributed on or after October 1, 2004.

SEC. 302. STATE OPTION TO PASS THROUGH ALL CHILD SUPPORT PAYMENTS TO FAMILIES

THAT FORMERLY RECEIVED TANF.

(a) IN GENERAL.—Section 457(a) (42 U.S.C. 657(a)), as amended by section 301 of

this Act, is amended—

(1) in paragraph (2)(B), in the matter preceding clause (i), by inserting ‘‘, except as provided in paragraph (8),’’ after ‘‘shall’’; and

(2) by adding at the end the following:

‘‘(8) STATE OPTION TO PASS THROUGH ALL CHILD SUPPORT PAYMENTS TO FAMILIES THAT FORMERLY RECEIVED TANF.—In lieu of applying paragraph (2) to any

family described in paragraph (2), a State may distribute to the family any

amount collected during a month on behalf of the family.’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to

amounts distributed on or after October 1, 2004.

22

SEC. 303. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS FOR FAMILIES RECEIVING TANF.

(a) IN GENERAL.—Section 466(a)(10)(A)(i) (42 U.S.C. 666(a)(10)(A)(i)) is amended—

(1) by striking ‘‘parent, or,’’ and inserting ‘‘parent or’’; and

(2) by striking ‘‘upon the request of the State agency under the State plan

or of either parent,’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect on

October 1, 2004.

SEC. 304. MANDATORY FEE FOR SUCCESSFUL CHILD SUPPORT COLLECTION FOR FAMILY

THAT HAS NEVER RECEIVED TANF.

(a) IN GENERAL.—Section 454(6)(B) (42 U.S.C. 654(6)(B)) is amended—

(1) by inserting ‘‘(i)’’ after ‘‘(B)’’;

(2) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively;

(3) by adding ‘‘and’’ after the semicolon; and

(4) by adding after and below the end the following new clause:

‘‘(ii) in the case of an individual who has never received assistance under

a State program funded under part A and for whom the State has collected

at least $500 of support, the State shall impose an annual fee of $25 for

each case in which services are furnished, which shall be retained by the

State from support collected on behalf of the individual (but not from the

1st $500 so collected), paid by the individual applying for the services, recovered from the absent parent, or paid by the State out of its own funds

(the payment of which from State funds shall not be considered as an administrative cost of the State for the operation of the plan, and shall be considered income to the program);’’.

(b) CONFORMING AMENDMENT.—Section 457(a)(3) (42 U.S.C. 657(a)(3)) is amended

to read as follows:

‘‘(3) FAMILIES THAT NEVER RECEIVED ASSISTANCE.—In the case of any other

family, the State shall distribute to the family the portion of the amount so collected that remains after withholding any fee pursuant to section 454(6)(B)(ii).’’.

(c) EFFECTIVE DATE.—The amendments made by this section shall take effect on

October 1, 2003.

SEC. 305. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

Not later than 6 months after the date of the enactment of this Act, the Secretary

of Health and Human Services shall submit to the Committee on Ways and Means

of the House of Representatives and the Committee on Finance of the Senate a report on the procedures that the States use generally to locate custodial parents for

whom child support has been collected but not yet distributed. The report shall include an estimate of the total amount of such undistributed child support and the

average length of time it takes for such child support to be distributed. To the extent the Secretary deems appropriate, the Secretary shall include in the report recommendations as to whether additional procedures should be established at the

State or Federal level to expedite the payment of undistributed child support.

SEC. 306. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF UNEMPLOYMENT COMPENSATION PROGRAMS.

(a) IN GENERAL.—Section 453(j) (42 U.S.C. 653(j)) is amended by adding at the

end the following:

‘‘(7) INFORMATION COMPARISONS AND DISCLOSURE TO ASSIST IN ADMINISTRATION OF UNEMPLOYMENT COMPENSATION PROGRAMS.—

‘‘(A) IN GENERAL.—If a State agency responsible for the administration of

an unemployment compensation program under Federal or State law transmits to the Secretary the name and social security account number of an

individual, the Secretary shall, if the information in the National Directory

of New Hires indicates that the individual may be employed, disclose to the

State agency the name, address, and employer identification number of any

putative employer of the individual, subject to this paragraph.

‘‘(B) CONDITION ON DISCLOSURE.—The Secretary shall make a disclosure

under subparagraph (A) only to the extent that the Secretary determines

that the disclosure would not interfere with the effective operation of the

program under this part.

‘‘(C) USE OF INFORMATION.—A State agency may use information provided

under this paragraph only for purposes of administering a program referred

to in subparagraph (A).’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect on

October 1, 2003.

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SEC. 307. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING PASSPORT

DENIAL.

(a) IN GENERAL.—Section 452(k)(1) (42 U.S.C. 652(k)(1)) is amended by striking

‘‘$5,000’’ and inserting ‘‘$2,500’’.

(b) CONFORMING AMENDMENT.—Section 454(31) (42 U.S.C. 654(31)) is amended by

striking ‘‘$5,000’’ and inserting ‘‘$2,500’’.

(c) EFFECTIVE DATE.—The amendments made by this section shall take effect on

October 1, 2003.

SEC. 308. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

(a) IN GENERAL.—Section 464 (42 U.S.C. 664) is amended—

(1) in subsection (a)(2)(A), by striking ‘‘(as that term is defined for purposes

of this paragraph under subsection (c))’’; and

(2) in subsection (c)—

(A) in paragraph (1)—

(i) by striking ‘‘(1) Except as provided in paragraph (2), as used in’’

and inserting ‘‘In’’; and

(ii) by inserting ‘‘(whether or not a minor)’’ after ‘‘a child’’ each place

it appears; and

(B) by striking paragraphs (2) and (3).

(b) EFFECTIVE DATE.—The amendments made by subsection (a) shall take effect

on October 1, 2004.

SEC. 309. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-CONNECTED

DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT OBLIGATIONS.

(a) IN GENERAL.—Section 459(h) (42 U.S.C. 659(h)) is amended—

(1) in paragraph (1)(A)(ii)(V), by striking all that follows ‘‘Armed Forces’’ and

inserting a semicolon; and

(2) by adding at the end the following:

‘‘(3) LIMITATIONS WITH RESPECT TO COMPENSATION PAID TO VETERANS FOR

SERVICE-CONNECTED DISABILITIES.—Notwithstanding any other provision of this

section:

‘‘(A) Compensation described in paragraph (1)(A)(ii)(V) shall not be subject to withholding pursuant to this section—

‘‘(i) for payment of alimony; or

‘‘(ii) for payment of child support if the individual is fewer than 60

days in arrears in payment of the support.

‘‘(B) Not more than 50 percent of any payment of compensation described

in paragraph (1)(A)(ii)(V) may be withheld pursuant to this section.’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a) shall take effect

on October 1, 2004.

SEC. 310. IMPROVING FEDERAL DEBT COLLECTION PRACTICES.

Section 3716(h)(3) of title 31, United States Code, is amended to read as follows:

‘‘(3) In applying this subsection with respect to any debt owed to a State, other

than past due support being enforced by the State, subsection (c)(3)(A) shall not

apply. Subsection (c)(3)(A) shall apply with respect to past due support being enforced by the State notwithstanding any other provision of law, including sections

207 and 1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 1383(d)(1)), section

413(b) of Public law 91–173 (30 U.S.C. 923(b)), and section 14 of the Act of August

29, 1935 (45 U.S.C. 231m).’’.

SEC. 311. MAINTENANCE OF TECHNICAL ASSISTANCE FUNDING.

Section 452(j) (42 U.S.C. 652(j)) is amended by inserting ‘‘or the amount appropriated under this paragraph for fiscal year 2002, whichever is greater,’’ before

‘‘which shall be available’’.

SEC. 312. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE FUNDING.

Section 453(o) (42 U.S.C. 653(o)) is amended—

(1) in the 1st sentence, by inserting ‘‘or the amount appropriated under this

paragraph for fiscal year 2002, whichever is greater,’’ before ‘‘which shall be

available’’; and

(2) in the 2nd sentence, by striking ‘‘for each of fiscal years 1997 through

2001’’.

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TITLE IV—CHILD WELFARE

SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEMONSTRATION PROJECTS.

Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is amended by striking ‘‘2002’’ and inserting ‘‘2007’’.

SEC. 402. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS.

Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is amended by striking ‘‘not more

than 10’’.

SEC. 403. ELIMINATION OF LIMITATION ON NUMBER OF STATES THAT MAY BE GRANTED

WAIVERS TO CONDUCT DEMONSTRATION PROJECTS ON SAME TOPIC.

Section 1130 (42 U.S.C. 1320a–9) is amended by adding at the end the following:

‘‘(h) NO LIMIT ON NUMBER OF STATES THAT MAY BE GRANTED WAIVERS TO CONDUCT SAME OR SIMILAR DEMONSTRATION PROJECTS.—The Secretary shall not refuse

to grant a waiver to a State under this section on the grounds that a purpose of

the waiver or of the demonstration project for which the waiver is necessary would

be the same as or similar to a purpose of another waiver or project that is or may

be conducted under this section.’’.

SEC. 404. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS THAT MAY BE GRANTED TO

A SINGLE STATE FOR DEMONSTRATION PROJECTS.

Section 1130 (42 U.S.C. 1320a–9) is further amended by adding at the end the

following:

‘‘(i) NO LIMIT ON NUMBER OF WAIVERS GRANTED TO, OR DEMONSTRATION PROJECTS

THAT MAY BE CONDUCTED BY, A SINGLE STATE.—The Secretary shall not impose

any limit on the number of waivers that may be granted to a State, or the number

of demonstration projects that a State may be authorized to conduct, under this section.’’.

SEC. 405. STREAMLINED PROCESS FOR CONSIDERATION OF AMENDMENTS TO AND EXTENSIONS OF DEMONSTRATION PROJECTS REQUIRING WAIVERS.

Section 1130 (42 U.S.C. 1320a–9) is further amended by adding at the end the

following:

‘‘(j) STREAMLINED PROCESS FOR CONSIDERATION OF AMENDMENTS AND EXTENSIONS.—The Secretary shall develop a streamlined process for consideration of

amendments and extensions proposed by States to demonstration projects conducted

under this section.’’.

SEC. 406. AVAILABILITY OF REPORTS.

Section 1130 (42 U.S.C. 1320a–9) is further amended by adding at the end the

following:

‘‘(k) AVAILABILITY OF REPORTS.—The Secretary shall make available to any State

or other interested party any report provided to the Secretary under subsection

(f)(2), and any evaluation or report made by the Secretary with respect to a demonstration project conducted under this section, with a focus on information that

may promote best practices and program improvements.’’.

SEC. 407. TECHNICAL CORRECTION.

Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is amended by striking ‘‘422(b)(9)’’

and inserting ‘‘422(b)(10)’’.

TITLE V—SUPPLEMENTAL SECURITY INCOME

SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY DETERMINATIONS.

Section 1633 (42 U.S.C. 1383b) is amended by adding at the end the following:

‘‘(e)(1) The Commissioner of Social Security shall review determinations, made by

State agencies pursuant to subsection (a) in connection with applications for benefits

under this title on the basis of blindness or disability, that individuals who have

attained 18 years of age are blind or disabled as of a specified onset date. The Commissioner of Social Security shall review such a determination before any action is

taken to implement the determination.

‘‘(2)(A) In carrying out paragraph (1), the Commissioner of Social Security shall

review—

‘‘(i) at least 20 percent of all determinations referred to in paragraph (1) that

are made in fiscal year 2003;

‘‘(ii) at least 40 percent of all such determinations that are made in fiscal year

2004; and

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‘‘(iii) at least 50 percent of all such determinations that are made in fiscal

year 2005 or thereafter.

‘‘(B) In carrying out subparagraph (A), the Commissioner of Social Security shall,

to the extent feasible, select for review the determinations which the Commissioner

of Social Security identifies as being the most likely to be incorrect.’’.

TITLE VI—BROADENED WAIVER AUTHORITY

SEC. 601. PROGRAM INTEGRATION DEMONSTRATION PROJECTS.

(a) PURPOSE.—The purpose of this section is to establish a program of demonstration projects in a State or portion of a State to integrate multiple public assistance,

workforce development, and other programs, for the purpose of supporting working

individuals and families, helping families escape welfare dependency, promoting

child well-being, or helping build stronger families, using innovative approaches to

strengthen service systems and provide more coordinated and effective service delivery.

(b) DEFINITIONS.—In this section:

(1) ADMINISTERING SECRETARY.—The term ‘‘administering Secretary’’ means,

with respect to a qualified program, the head of the Federal agency responsible

for administering the program.

(2) QUALIFIED PROGRAM.—The term ‘‘qualified program’’ means—

(A) a program under part A of title IV of the Social Security Act; or

(B) the program under title XX of such Act.

(c) APPLICATION REQUIREMENTS.—The head of a State entity or of a sub-State entity administering 2 or more qualified programs proposed to be included in a demonstration project under this section shall (or, if the project is proposed to include

qualified programs administered by 2 or more such entities, the heads of the administering entities (each of whom shall be considered an applicant for purposes of this

section) shall jointly) submit to the administering Secretary of each such program

an application that contains the following:

(1) PROGRAMS INCLUDED.—A statement identifying each qualified program to

be included in the project, and describing how the purposes of each such program will be achieved by the project.

(2) POPULATION SERVED.—A statement identifying the population to be served

by the project and specifying the eligibility criteria to be used.

(3) DESCRIPTION AND JUSTIFICATION.—A detailed description of the project,

including—

(A) a description of how the project is expected to improve or enhance

achievement of the purposes of the programs to be included in the project,

from the standpoint of quality, of cost-effectiveness, or of both; and

(B) a description of the performance objectives for the project, including

any proposed modifications to the performance measures and reporting requirements used in the programs.

(4) WAIVERS REQUESTED.—A description of the statutory and regulatory requirements with respect to which a waiver is requested in order to carry out

the project, and a justification of the need for each such waiver.

(5) COST NEUTRALITY.—Such information and assurances as necessary to establish to the satisfaction of the administering Secretary, in consultation with

the Director of the Office of Management and Budget, that the proposed project

is reasonably expected to meet the applicable cost neutrality requirements of

subsection (d)(4).

(6) EVALUATION AND REPORTS.—An assurance that the applicant will conduct

ongoing and final evaluations of the project, and make interim and final reports

to the administering Secretary, at such times and in such manner as the administering Secretary may require.

(7) OTHER INFORMATION AND ASSURANCES.—Such other information and assurances as the administering Secretary may require.

(d) APPROVAL OF APPLICATIONS.—

(1) IN GENERAL.—The administering Secretary with respect to a qualified program that is identified in an application submitted pursuant to subsection (c)

may approve the application and, except as provided in paragraph (2), waive

any requirement applicable to the program, to the extent consistent with this

section and necessary and appropriate for the conduct of the demonstration

project proposed in the application, if the administering Secretary and the Director of the Office of Management and Budget determine that the project—

(A) has a reasonable likelihood of achieving the objectives of the programs

to be included in the project;

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(B) may reasonably be expected to meet the applicable cost neutrality requirements of paragraph (4), as determined by the Director of the Office of

Management and Budget; and

(C) includes the integration of 2 or more qualified programs.

(2) PROVISIONS EXCLUDED FROM WAIVER AUTHORITY.— (A) IN GENERAL.—Except as provided in subparagraph (B), a waiver shall

not be granted under paragraph (1) with respect to any provision of law relating to—

(i) civil rights or prohibition of discrimination;

(ii) purposes or goals of any program;

(iii) maintenance of effort requirements;

(iv) health or safety;

(v) labor standards under the Fair Labor Standards Act of 1938; or

(vi) environmental protection.

(B) EXCEPTION FOR CONSOLIDATION AND UNIFORMITY OF STATE ADMINIS- TRATIVE PROCEDURES FOR ADDRESSING CERTAIN COMPLAINTS OR GRIEV- ANCES.—Subparagraph (A) shall not be construed to prevent a waiver from

being granted to enable an applicant that is or includes State to consolidate

and provide for uniform State administrative procedures for addressing

complaints or grievances regarding public health or safety, labor standards,

civil rights, occupational health or safety, or environmental protection.

(3) AGREEMENT OF EACH ADMINISTERING SECRETARY REQUIRED.—

(A) IN GENERAL.—An applicant may not conduct a demonstration project

under this section unless each administering Secretary with respect to any

program proposed to be included in the project has approved the application

to conduct the project.

(B) AGREEMENT WITH RESPECT TO FUNDING AND IMPLEMENTATION.—Before approving an application to conduct a demonstration project under this

section, an administering Secretary shall have in place an agreement with

the applicant with respect to the payment of funds and responsibilities required of the administering Secretary with respect to the project.

(4) COST-NEUTRALITY REQUIREMENT.—

(A) GENERAL RULE.—Notwithstanding any other provision of law (except

subparagraph (B)), the total of the amounts that may be paid by the Federal Government for a fiscal year with respect to the programs in the State

in which an entity conducting a demonstration project under this section

is located that are affected by the project shall not exceed the estimated

total amount that the Federal Government would have paid for the fiscal

year with respect to the programs if the project had not been conducted,

as determined by the Director of the Office of Management and Budget.

(B) SPECIAL RULE.—If an applicant submits to the Director of the Office

of Management and Budget a request to apply the rules of this subparagraph to the programs in the State in which the applicant is located that

are affected by a demonstration project proposed in an application submitted by the applicant pursuant to this section, during such period of not

more than 5 consecutive fiscal years in which the project is in effect, and

the Director determines, on the basis of supporting information provided by

the applicant, to grant the request, then, notwithstanding any other provision of law, the total of the amounts that may be paid by the Federal Government for the period with respect to the programs shall not exceed the

estimated total amount that the Federal Government would have paid for

the period with respect to the programs if the project had not been conducted.

(5) 90-DAY APPROVAL DEADLINE.—

(A) IN GENERAL.—If an administering Secretary receives an application to

conduct a demonstration project under this section and does not disapprove

the application within 90 days after the receipt, then—

(i) the administering Secretary is deemed to have approved the application for such period as is requested in the application, except to the

extent inconsistent with subsection (e); and

(ii) any waiver requested in the application which applies to a qualified program that is identified in the application and is administered

by the administering Secretary is deemed to be granted, except to the

extent inconsistent with paragraph (2) or (4) of this subsection.

(B) DEADLINE EXTENDED IF ADDITIONAL INFORMATION IS SOUGHT.—The

90-day period referred to in subparagraph (A) shall not include any period

that begins with the date the Secretary requests the applicant to provide

additional information with respect to the application and ends with the

date the additional information is provided.

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(e) DURATION OF PROJECTS.—A demonstration project under this section may be

approved for a term of not more than 5 years, and may be renewed for 1 or more

additional terms of not more than 5 years.

(f) REPORTS TO CONGRESS.—Each administering Secretary shall provide annually

to the Congress a report concerning demonstration projects approved under this section, including—

(1) the projects approved for each applicant;

(2) the number of waivers granted under this section, and the specific statutory provisions waived;

(3) how well each project for which a waiver is granted is improving or enhancing program achievement from the standpoint of quality, cost-effectiveness,

or both;

(4) how well each project for which a waiver is granted is meeting the performance objectives specified in subsection (c)(3)(B);

(5) how each project for which a waiver is granted is conforming with the

cost-neutrality requirements of subsection (d)(4); and

(6) to the extent the administering Secretary deems appropriate, recommendations for modification of programs based on outcomes of the projects.

TITLE VII—EFFECTIVE DATE

SEC. 701. EFFECTIVE DATE.

(a) IN GENERAL.—Except as otherwise provided, the amendments made by this

Act shall take effect on October 1, 2002.

(b) EXCEPTION.—In the case of a State plan under part A or D of title IV of the

Social Security Act which the Secretary determines requires State legislation in

order for the plan to meet the additional requirements imposed by the amendments

made by this Act, the effective date of the amendments imposing the additional requirements shall be 3 months after the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins

after the date of the enactment of this Act. For purposes of the preceding sentence,

in the case of a State that has a 2-year legislative session, each year of the session

shall be considered to be a separate regular session of the State legislature.

I. INTRODUCTION

A. PURPOSE AND SCOPE

The ‘‘Personal Responsibility, Work, and Family Promotion Act of

2002,’’ (H.R. 4090) reauthorizes and makes improvements to the

Temporary Assistance for Needy Families (TANF) block grant program created under P.L. 104–193, the ‘‘Personal Responsibility and

Work Opportunity Reconciliation Act of 1996’’ (the 1996 welfare reform law), among other purposes. TANF is the primary Federal

program of cash assistance for needy families.

The primary changes reflected in H.R. 4090 include: (1) maintaining current record Federal funding for TANF and Child Care

and Development Block Grant (CCDBG) programs; (2) increasing

individual and State work requirements while adding flexibility for

States to satisfy these requirements; (3) increasing States’ flexibility in providing child care for low-income working families; (4)

encouraging healthy marriage and two-parent married families by

directing $300 million in Federal and State funds to encourage

strong families and healthy marriages, among other provisions; (5)

specifying reducing poverty through job preparation, work, and

marriage as a key program purpose; (6) strengthening child support enforcement; and (7) reinforcing the importance of fathers in

the lives of children and families by providing $20 million in new

grant funding to promote responsible fatherhood, among other

changes.

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B. BACKGROUND AND NEED FOR LEGISLATION

In the 1996 Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104–193), dramatic changes were

made in the Federal-State welfare system designed to aid low-income American families. The law repealed the former Aid to Families with Dependent Children program, and with it the individual

entitlement to cash welfare benefits. In its place, the 1996 legislation created a new Temporary Assistance for Needy Families

(TANF) block grant. The legislation provided fixed funding to

States to operate programs designed to achieve several purposes:

(1) provide assistance to needy families, (2) end the dependence of

needy parents on government benefits by promoting job preparation, work, and marriage, (3) prevent and reduce the incidence of

out-of-wedlock pregnancies, and (4) encourage the formation and

maintenance of two-parent families. In exchange for the broad

flexibility and fixed funding granted States, the 1996 law imposed

certain key program requirements, notably work requirements and

time limits on Federal benefits. To ensure that the Committee and

the Congress review the effects of the fundamental changes made

in the 1996 law, the TANF program was authorized for five fiscal

years, 1997 through 2002.

Remarkable progress has been made in combating welfare dependence, encouraging work, and reducing poverty since TANF was

enacted in 1996. The number of children living in poverty has

dropped by nearly 3 million and the African-American child poverty

rate has fallen to a record low; welfare caseloads have fallen by 60

percent nationwide, as nearly 3 million families and 9 million recipients have left welfare; and record numbers of current and

former welfare recipients are working. Today the TANF program

continues to provide an important safety net to more than 2 million

low-income families through temporary cash benefits, work supports, and other services.

Yet despite outstanding results over the past few years, far too

many individuals receiving assistance are not making progress toward self-sufficiency. Troubling social trends such as out-of-wedlock

birthrates, teen pregnancy, and divorce remain at or near record

levels, exacerbating challenges faced by low-income families to

achieve self-sufficiency.

To address these problems and enable the TANF program to help

even more individuals, this legislation extends the TANF program

for five years and makes improvements to the TANF program and

to related programs under the Committee’s jurisdiction.

C. LEGISLATIVE HISTORY

On April 18, 2002, the Committee on Ways and Means ordered

favorably reported, with amendment, to the House H.R. 4090, the

‘‘Personal Responsibility, Work, and Family Promotion Act of

2002,’’ by a 23–16 vote with a quorum present.

The Committee on Ways and Means held a hearing on March 12,

2002 to receive comments on the President’s Plan to Build on the

Successes of Welfare Reform. Testimony at the hearing was presented by Tommy Thompson, Secretary of the U.S. Department of

Health and Human Services. Secretary Thompson also testified before the Committee on February 6, 2002 on the President’s 2003

29

Budget Proposals, with a focus on welfare issues. On March 14,

2002, the Committee also held a hearing on the Administration’s

Health and Welfare Priorities (Serial 107–2).

The Subcommittee on Human Resources held a hearing on April

11, 2002 to receive comments on the welfare reform reauthorization

proposals. Testimony at the hearing was presented by the Administration and a total of 48 other program administrators, advocates,

researchers, and Members of the U.S. House of Representatives.

On April 2, 2002, the Committee conducted a field hearing in University Center, Michigan on Welfare Reform Success, which included testimony from Michigan Governor John Engler, a welfare

program administrator, former welfare recipients, and an employer

who has hired a number of former recipients to work for his company. On March 7, 2002, the Committee held a hearing on Implementation of Welfare Reform Work Requirements and Time Limits.

Several hearings also were held earlier in the 107th Congress on

welfare reform topics including Teen Pregnancy Prevention, Child

Support and Fatherhood Proposals (Serial 107–38), Welfare and

Marriage Issues (Serial 107–28), and Effects of the 1996 Welfare

Reform Law (Serial 107–5). In the 106th Congress, the Committee

held a number of hearings on welfare issues: April 27, 1999 on Fatherhood (Serial 106–41); May 27, 1999 on the Effects of Welfare

Reform (Serial 106–9); November 15, 1999 field hearing in Erie,

Pennsylvania on Welfare Reform (Serial 106–47); February 14,

2000 field hearing in Baltimore, Maryland on Welfare Reform (Serial 106–87); February 27, 2000 on the Child Protection Review

System (Serial 106–84); March 23, 2000 on Child Protection Issues

(Serial 106–63); and July 20, 2000 on Increasing State Flexibility

in Use of Federal Child Protection Funds (Serial 106–98). Throughout the hearings, testimony was presented by Administration officials, academic witnesses, researchers, program administrators,

and advocacy groups.

II. EXPLANATION OF PROVISIONS

FINDINGS

PRESENT LAW

P.L. 104–193, the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996 (PRWORA), made a series of findings related to marriage, responsible parenthood, trends in welfare receipt

and the relationship between welfare receipt and nonmarital parenthood, and trends in and negative consequences of nonmarital

and teen births.

EXPLANATION OF PROVISION

The Committee bill includes a series of findings related to: (1)

the success of the 1996 law in moving families from welfare to

work and reducing child poverty, and need for continued efforts in

these areas; (2) the progress made by the Nation in reducing teen

pregnancy and births, in slowing increases in nonmarital births,

and in improving child support collections and paternity establishment; (3) the flexibility provided by the 1996 law for States to develop innovative programs to encourage work over welfare and the

formation of two-parent families; and (4) establishing the sense of

30

Congress that increasing success in moving families from welfare

to work and promoting healthy marriage and other means of improving child well-being are important government interests and

the policies in Federal TANF law (as amended by the Committee

bill) are intended to serve those ends.

REASON FOR CHANGE

The findings highlight noteworthy achievements of the landmark

1996 welfare reform law to be strengthened through various provisions of the Committee bill. The findings focus on the bill’s provisions related to promoting work, reducing poverty, discouraging

out-of-wedlock childbearing with a particular focus on teen pregnancy often associated with long welfare dependence, and promoting State flexibility in operating programs designed to promote

healthy marriage among other means of improving child well-being.

TITLE I. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

Section 101. Purposes

PRESENT LAW

The purpose of TANF is to increase State flexibility in operating

a program designed to: (1) assist needy families so that children

may live in their homes or those of relatives; (2) end dependence

of needy parents on government benefits; (3) reduce out-of-wedlock

pregnancies; and (4) encourage the formation and maintenance of

two-parent families.

EXPLANATION OF PROVISION

Modifies the purposes of the TANF program as follows: The purpose of TANF is to improve child well-being by increasing State

flexibility in operating a program designed to: (1) provide assistance and services to needy families so that children may live in

their homes or those of relatives; (2) end dependence of needy families on government benefits and reduce poverty by promoting job

preparation, work and marriage; (3) reduce out-of-wedlock pregnancies; and (4) encourage the formation and maintenance of

healthy, two-parent married families and encourage responsible fatherhood.

REASON FOR CHANGE

The Committee bill provides an overarching TANF program purpose of improving child well-being, supported by current law purposes of providing assistance to children, ending dependence on

welfare benefits, reducing births outside marriage, and encouraging

the formation and maintenance of healthy married families. The

Committee bill also highlights that a key purpose of the TANF program is ending dependence on government benefits and reducing

poverty through job preparation, work, and marriage. The Committee notes that the concepts of child well-being and reducing poverty through increased work and improved family stability are

closely intertwined. In these respects the 1996 welfare reform law

has achieved remarkable results, contributing to the lifting of nearly three million children from poverty since the law’s enactment.

Directing TANF programs and other efforts to be oriented toward

31

further improving child well-being is designed in part to continue

and amplify this record of success in removing children from poverty, among other purposes.

The legislation modifies the fourth program purpose to clarify the

goal of encouraging the formation and maintenance of healthy,

married two-parent families. Current research clearly reflects that

children do best across a range of measures when raised by two

married parents, especially by their own biological parents: Children raised by single parents are five times more likely to live in

poverty, five times more likely to depend on welfare, two to three

times more likely to show behavioral problems, and two times as

likely to commit crimes or go to jail, children raised by single parents also are more likely to suffer from abuse and neglect, commit

suicide, take drugs, and drop out of school. The purposes of TANF

should reflect such research, especially in keeping with the overall

program interest in promoting child well-being.

Finally, the legislation reinforces that a key TANF program purpose includes encouraging responsible fatherhood, which is essential to the healthy upbringing of children. (Section 120 of the legislation also provides for a new ‘‘responsible fatherhood’’ program authorizing grants of up to $20 million per year for this purpose.)

Section 102. Family Assistance Grants

PRESENT LAW

Provides capped grants (entitlements to States). Basic grants are

computed from Federal expenditures for TANF’s predecessor programs during fiscal years 1992 through 1995. Basic grants were

frozen for fiscal years 1997 through 2002. Nationally, annual

grants total $16.5 billion for the States and the District of Columbia (D.C.). Additional amounts are provided for the territories.

EXPLANATION OF PROVISION

Retains basic block grants, and extends current funding levels for

each of fiscal years 2003 through 2007. Appropriates $16.5 billion

annually for block grants to the States and D.C. and additional

amounts for the territories (plus some matching grants for the territories).

REASON FOR CHANGE

The Committee legislation reauthorizes the TANF block grant at

its current level, providing States, D.C., and territories with a continuation of the record Federal funds made available in each fiscal

year since 1996 despite unprecedented caseload declines during

that period. Since 1994/95 (when national caseloads and Federal

funds peaked, and which funding levels serve as the basis for the

TANF block grant amount), caseloads have fallen by nearly 60 percent. A number of States individually and collectively continue to

have significant unspent TANF balances, totaling $7.4 billion as of

September 2001, according to a March 21, 2002 report by the Center on Budget and Policy Priorities. States may use such unspent

balances for additional needs in the years ahead, and other provisions in the Committee legislation (see Section 107, on use of

funds) provide States significant new flexibility in the use of such

32

unspent or ‘‘carryover’’ funds, including to provide additional child

care and other work supports as appropriate.

Section 103. Promotion of Family Formation and Healthy Marriage

PRESENT LAW

No provision for special marriage promotion grants, but law pro- vides bonuses totaling $100 million per year to a maximum of five

States each year for reduction in out-of-wedlock births.

EXPLANATION OF PROVISION

Requires States to express in their annual State plans how they

would operate programs to encourage equitable treatment of married, two-parent families. Appropriates $100 million annually for

each of fiscal years 2003 through 2007 for 50 percent competitive

matching grants to States, territories, and tribal organizations for

programs to promote healthy, married two-parent families and reduce out-of-wedlock births. Grants may be used for advertising

campaigns; education in high schools; marriage education, marriage skills, and relationship skills programs for non-married pregnant women and expectant fathers; pre-marital education; marriage and relationship skills enhancement programs for married

couples; divorce reduction programs; marriage mentoring programs;

and programs to reduce marriage disincentives in means-tested

programs, if offered in conjunction with any other listed activity.

These grants replace current law out-of-wedlock bonus (maximum

of $100 million annually) grants, which are repealed.

Provides that State expenditures on non-TANF-eligible families

to reduce out-of-wedlock births and promote marriage and responsible fatherhood (that is, on TANF purposes 3 and 4) may be counted toward required ‘‘maintenance-of-effort’’ State spending. In a related section, the bill further provides that Federal TANF funds

used for marriage promotion may be treated as State matching

funds for marriage promotion grants (See Section 111, Maintenance of Effort).

REASON FOR CHANGE

In keeping with the TANF program purpose of encouraging the

formation and maintenance of healthy, two-parent married families, the Committee legislation refocuses current out-of-wedlock

birth reduction ‘‘bonus’’ funds on programs and activities designed

to encourage the formation of healthy marriages and strengthen

and maintain existing marriages, for several reasons. The awarding of current bonus funds, while in name designed to encourage

the operation of State programs and efforts to reduce out-of-wedlock childbearing, has not been associated with specific State efforts in this area. Further, under current law there is no requirement that States awarded such funds use the money for efforts to

reduce out-of-wedlock births or otherwise strengthen families. Thus

there has been interest in converting this current stream of funding to support more specific efforts to strengthen families. Given

the limited number of States using Federal or State TANF program

funds for activities and programs designed to promote healthy marriage and strong families and in keeping with the overall TANF

program purposes, the Committee legislation seeks to encourage

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more innovation in this area by making available additional funds

to States interested in operating such programs.

Section 104. Supplemental Grant for Population Increases in Certain States

PRESENT LAW

Supplemental grants are provided to up to 17 States with low

historic Federal grants per poor person and/or high population

growth for fiscal years 1998 through 2001 (extended through September 30, 2002 at fiscal year 2001 funding level by P.L. 107–147).

Grants grew each year, from $79 million in fiscal year 1998 to $319

million in each of fiscal years 2001 and 2002.

EXPLANATION OF PROVISION

Annual supplemental grants are reauthorized for each year through fiscal year 2006, at the fiscal year 2001/2002 level of $319

million per year.

REASON FOR CHANGE

The Committee legislation provides for the continuation of the

current TANF supplemental grants program, with funds remaining

at the current (fiscal year 2001 and 2002) level and for each currently-eligible State for each of the next four fiscal years, 2003

through 2006. As under the 1996 welfare reform law, which authorized the TANF block grant through fiscal year 2002 yet provided for supplemental grants through only fiscal year 2001, the

authority for supplemental grants under the Committee legislation

would expire one year prior to that of the TANF block grant. This

decision does not reflect on the underlying merits of TANF supplemental grants, but simply replicates the 1996 law treatment of

supplemental grants in the final year of the block grant authorization period. The Committee notes that Congress recently passed

legislation (P.L. 107–147) extending supplemental grants for fiscal

year 2002, and that a future Congress may make a similar decision

to extend supplemental grants for fiscal year 2007.

Section 105. Bonus to Reward Employment Achievement

PRESENT LAW

A ‘‘high performance bonus’’ of $200 million per year is provided

to States. The bonus is awarded to States that have achieved key

TANF goals, based on a formula developed by the Secretary of

Health and Human Services (HHS) in consultation with the States.

For fiscal year 2002 performance, the formula includes employment

and family formation outcomes, child care affordability, and coverage in certain government programs.

EXPLANATION OF PROVISION

The high performance bonus is replaced with a bonus to reward employment achievement (annual average of $100 million appropriated for five years). The bonus is to be based on absolute and

relative progress towards goals of job entry, job retention, and increased earnings. The formula for providing these bonus funds is

to be developed by HHS in consultation with the National GovVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00033 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
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ernors Association and the American Public Human Services Association. Tribal organizations are allowed access to employment

bonus funds.

REASON FOR CHANGE

The Committee legislation includes changes that would focus current high performance bonus funds more closely on State and Tribal success in helping welfare recipients achieve employment entry,

job retention, and increased earnings. Performance would be measured both on an absolute basis and relative to prior performance,

permitting all States and Tribal organizations to qualify for funds

provided their performance has improved in these areas. This fund

also highlights the Committee’s interest in encouraging welfare reform policies that assist recipients not only in leaving welfare and

entering employment, but also in staying on the job and moving up

the employment ladder.

Section 106. Contingency Fund

PRESENT LAW

Up to $2 billion over fiscal years 1997 through 2001 (extended

through September 30, 2002 by P.L. 107–147) is authorized to assist States in the event of a serious economic downturn. To qualify

for contingency funds, States must spend under the TANF program

a sum of their own dollars equal to their pre-TANF spending (i.e.

satisfy a 100 percent ‘‘Maintenance of Effort’’ [MOE] requirement).

EXPLANATION OF PROVISION

The Committee bill reestablishes a $2 billion contingency fund in

fiscal years 2003 through 2007 and permits States to count child

care spending and all spending in separate State programs toward

the MOE requirement for accessing the contingency fund. The bill

also simplifies the annual reconciliation process under current law

and adjusts the food stamp ‘‘needy State’’ trigger based on any policy changes made after passage of the 1996 welfare reform law.

REASON FOR CHANGE

In order to assist States demonstrating increased needs during

difficult economic times, the Committee legislation extends and improves the current $2 billion Federal TANF contingency fund program created under the 1996 welfare reform law. This fund, whose

authorization would currently expire at the end of fiscal year 2002,

would be extended through fiscal year 2007.

Before permitting access to money from this fund, current law

expects States to satisfy a 100 percent MOE requirement comparing recent with pre-TANF welfare-related spending. However,

neither former nor recent child care spending is included in performing this calculation. Thus a provision is included in the Committee legislation to add State spending on child care—which has

risen since the 1996 welfare reform law—which increases the likelihood that States would satisfy the 100 percent MOE requirement

and access Federal contingency funds.

The Committee legislation also includes several technical and

conforming amendments simplifying the annual reconciliation process for ensuring that States receive the correct amount of continVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00034 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
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gency funds, and ensuring that Federal policy changes affecting

food stamp eligibility made since the 1996 welfare reform law do

not inadvertently affect States’ ability to qualify for Federal contingency funds.

Section 107. Use of Funds

PRESENT LAW

States may use funds in any manner reasonably calculated to accomplish the TANF purpose (or in any manner that they were authorized to use pre-TANF funds).

The State plan must indicate whether the State intends to treat

families moving into the State differently from others.

States may transfer up to 30 percent of TANF funds to the Child

Care and Development Block Grant (CCDBG) and the Title XX Social Services Block Grant (SSBG). Specifies that a maximum of 10

percent of total transfers may go to SSBG in fiscal year 2002, and

4.25 percent per fiscal years thereafter. Also, States may use TANF

funds, within the overall 30 percent transfer limit, as matching

funds for the Job Access transportation program for TANF recipients, ex-recipients, and persons at risk of becoming income-eligible

for TANF.

Amounts may be spent without fiscal year limit for ‘‘assistance’’

(chiefly ongoing cash aid). For other benefits and services (i.e. ‘‘nonassistance’’), amounts must be obligated in the year of award and

spent in the following year.

EXPLANATION OF PROVISION

States may use funds for any purposes or activities reasonably

calculated to accomplish the purpose of TANF (or permitted under

pre-TANF rules).

The Committee bill strikes a provision about treatment of families migrating into the State, which subsequent to the 1996 welfare

reform law was found unconstitutional by the Supreme Court.

The overall ceiling on transfers from the TANF block grant is increased to 50 percent. The limit on TANF transfers to SSBG is increased to 10 percent (the original limit established in the 1996

law) in each of fiscal years 2003 through 2007.

The Committee bill also allows States to use carry-over funds for

any benefit or service without fiscal year limitation and permits a

State or tribe to designate some unspent TANF funds as a contingency reserve.

REASON FOR CHANGE

Several provisions to increase States’ flexibility in designing

TANF programs are included in the Committee bill. The increase

in TANF funds that may be transferred to the child care and Social

Services Block Grants would allow States to use TANF funds to

support more working families outside of the welfare system as

these programs are not limited to TANF-eligible families. Transfer

authority has become increasingly important as States shift more

resources to support working families using TANF funds available

due to the dramatic caseload declines in recent years.

Currently, regulations implementing the TANF program limit

States to spending carryover funds only on cash assistance. This

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legislation clarifies that carryover funds may be spent on any of the

States’ TANF programs, including child care and other services as

well as cash assistance.

The provision to allow States to designate unspent TANF funds

as contingency reserves is intended to improve the reliability of the

TANF block grant in future years. In the past, unspent TANF balances have led to confusion over how much TANF funds were

unneeded versus specifically set-aside for future needs. The Committee expects the Secretary of HHS to provide additional guidance

to States for purposes of their reporting contingency reserves in a

uniform manner.

Section 108. Repeal of Federal Loan for State Welfare Programs

PRESENT LAW

A $1.7 billion revolving and interest-bearing Federal loan fund

for State welfare programs is authorized.

EXPLANATION OF PROVISION

The Committee legislation repeals loan fund and makes conforming amendments to reflect the repeal in related program provisions.

REASON FOR CHANGE

The loan authority is eliminated given a lack of support for or

interest in the program from the States.

Section 109. Universal Engagement and Family Self-Sufficiency

Plan Requirements

PRESENT LAW

State plans must require that a parent or caretaker engage in

work (as defined by the State) after, at most, 24 months of assistance. However, this requirement is not enforced by a specific penalty.

States, at their own option, may develop individual responsibility

plans providing for an initial assessment of the skills, prior work

experience, and employability of each recipient 18 or older or within 30 days of initial receipt of welfare benefits.

TANF work participation rates are enforced by a penalty on

States of the loss of five percent of the State’s TANF block grant

for first year of violation; the penalty may be reduced for the degree of violation. Increasing penalties are specified for subsequent

years of violation. The State must replace the amount of Federal

penalty funds lost with its own funds.

EXPLANATION OF PROVISION

The current State plan provision expecting engagement in work

within 24 months of initial welfare receipt is repealed and replaced

with a provision requiring parents in families receiving assistance

to participate in work or alternative self-sufficiency activities, as

described below.

The current State option to develop individual responsibility

plans is eliminated. Instead, States are required to make an initial

assessment, in the manner deemed appropriate by the States, of

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the employability of each recipient of assistance and to develop

family self-sufficiency plans for each family with a work-eligible individual within 60 days of opening a case (within 12 months for

families enrolled at the time of enactment). The plans are to provide for ongoing participation of the individual in activities. States

face a penalty for failure to establish self-sufficiency plans as part

of the current penalty for failure to satisfy State work participation

rates. These penalties may be reduced based on the severity of the

violation, as under current law. Self-sufficiency plans are to specify

work and other activities designed to assist the family in achieving

their maximum degree of self-sufficiency, among other purposes.

States are to monitor participation in such activities and family

progress, and revise plans as appropriate.

REASON FOR CHANGE

Universal engagement is a centerpiece of the Committee’s legislation. Currently, 14 States do not require recipients to engage in

any activities during their first 24 to 30 months of receiving benefits. The Committee believes this is unfair to beneficiaries given

time limits on benefits that mean up to half of their available Federal benefits could expire before they begin preparing for self-sufficiency. Early and constant activity is the best path out of poverty,

which is provided for under the self-sufficiency plan and related

provisions of the legislation.

In keeping with the major changes made in the 1996 law, it is

the intent of the Committee that States continue to have flexibility

to set conditions for receipt of benefits or assistance, such as mandatory substance abuse testing similar to that used by public or

private sector employers and other testing or screening, either as

part of an eligibility determination process, an individual planning

process, or as a condition of ongoing receipt of benefits. The Committee recognizes that early detection of impediments such as substance abuse and addiction can help improve the prospects of employment and self-sufficiency, and better preserve families and protect children from abuse and neglect.

The Committee recognizes that public assistance recipients required to engage in Federally mandated work and training activities may experience difficulty in attending meetings or other appointments with welfare offices which conflict with recipients’

work/training. The Committee encourages States and localities to

review this issue and, as appropriate, consider alternatives such as

expanded evening and weekend hours, field visits, or telephonic,

electronic, or other communication means to enhance their flexibility in scheduling such meetings and further aid welfare recipients in their transition from welfare to work.

Section 110. Work Participation Requirements

PRESENT LAW

States must have a specified percentage of their adult recipients

engaged in creditable work activities. In fiscal year 2002 the participation standard is 50 percent for all families (90 percent for the

two-parent component of the caseload).

Standards are reduced by a caseload reduction credit. For each

percent decline in the caseload from the fiscal year 1995 level (not

38

attributable to policy changes), the work participation standard is

reduced by one percentage point.

Federal law lists 12 activities that count toward meeting the participation standards. Nine activities have priority status: unsubsidized jobs, subsidized private jobs, subsidized public jobs, work

experience, on-the-job training, job search (6 weeks usual maximum), community service, vocational educational training (12

month limit), and providing child care for certain TANF recipients.

There are three other creditable activities: job skills training directly related to employment, and (for high-school dropouts only)

education directly related to work and completion of secondary

school.

Participation in education (including vocational educational

training) may account for no more than 30 percent of persons credited with work for purposes of satisfying the State work participation rate.

Generally, to count toward the all-family rate, participation of 30

hours (20 hours in priority work activities) is required. For twoparent families the standard is 35 hours (30 in priority work activity), but increases to 55 hours (50 in priority activities) if the family receives Federally-subsidized child care.

For a single parent caring for a child under age 6, 20 hours of

participation satisfies the standard.

States may exempt the parent of a child under age one from

work and exclude them from the calculation of work participation

rates.

Teen parents are deemed to meet the weekly hour participation

standard by maintaining satisfactory attendance in secondary

school (or the equivalent in the month) or by participating in education directly related to employment for an average of 20 hours

weekly.

The monthly participation rate, expressed as a percentage,

equals (a) the number of all recipient families in which an individual is engaged in work activities for the month, divided by (b)

the number of recipient families with an adult recipient (but excluding families subject that month to a penalty for work refusal,

provided they have not been penalized for more than three months)

and excluding families with children under one, if the State exempts them from work. Except for teen parents, single parents

with a child under six, and participants in a tribal program with

different hour requirements, families must work an average of at

least 30 hours weekly to be counted as working.

States are prohibited from sanctioning a single parent caring for

a child under age 6 based on refusal to participate in work because

of the unavailability of appropriate, suitable and affordable child

care.

EXPLANATION OF PROVISION

States must have a specified percentage of families containing

adult recipients engaged in direct work or alternative self-sufficiency activities chosen by the State. In fiscal year 2003 the standard is 50 percent, and it raises by 5 percentage points each subsequent fiscal year until reaching 70 percent in fiscal year 2007.

The separate standard for two-parent families is eliminated.

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The Committee bill updates the current credit for net caseload

reduction (thus reducing the effective State work participation rate

target for States with falling caseloads) by measuring caseload reduction from a moving base year rather than from fiscal year 1995.

For fiscal year 2003, the credit is based on the percent decline in

the caseload from fiscal year 1996; for fiscal year 2004, the base is

fiscal year 1998; for fiscal year 2005, fiscal year 2001. Thereafter,

the base rises each year by one year (thus, the credit for fiscal year

2007 is based on the caseload decline from fiscal year 2003).

To receive full credit towards the work participation rate, States

must engage families with adult recipients in a direct work activity

or alternative self-sufficiency activity for an average of 40 hours

weekly-of which 24 hours must be in one of the ‘‘direct work’’ activities listed in the law, which include: unsubsidized jobs, subsidized private jobs, subsidized public jobs, on-the-job training, supervised work experience, and supervised community service. Once

a family achieves 24 hours of direct work, States may define any

other activity as countable (up to 16 hours per week) so long as it

leads to self-sufficiency and is consistent with the purposes of

TANF.

States may qualify for a ‘‘superachiever’’ credit if the State has

reduced its caseloads by more than 60 percent since 1995. The

value of the credit is equal to the number of points above 60 percent in caseload reduction that occurred between 1995 and 2001.

The superachiever credit may reduce a State’s work participation

rate only to 50 percent, although any future caseload declines captured by the updated credit for net caseload reduction also may be

applied after calculating the superachiever credit to further reduce

the effective work participation rate the State must achieve.

For any three months within a 24 month period, persons may be

deemed to meet the 24-hour weekly direct work requirement by engaging in short-term activities chosen by the State to promote selfsufficiency (examples listed in the bill are substance abuse counseling or treatment, rehabilitation treatment and services, work-related education or training directly at enabling the family member

for work, and job search or job readiness assistance).

States may exclude from the calculation of work participation

rates families in which the youngest child is under age 1. They also

may exclude from work participation rates all families during their

first month of assistance and families in a tribal program.

Teen parents are deemed to satisfy the 40-hour weekly work rule

by virtue of satisfactory school attendance (or the equivalent in the

month) or by participating in education directly related to employment for an average of 20 hours weekly.

As under current law, certain sanctioned families are excluded

from counted families used to determine participation rates. In addition, as noted above, States have the option to exclude families

in the first month of assistance, tribal families, and single parents

with an infant. The monthly participation rate is (a) the total number of countable hours, divided by (b) 160 times the number of

counted families for the month. This means that a State would receive full credit for a family participating in work and other activities for 40 hours per week for four weeks per month, or on an annual basis, for 48 weeks per year.

40

In general, States must reduce the amount of assistance payable

to the family pro-rata or terminate assistance if the individual refuses, without good cause, to engage in work or in activities under

a family sufficiency plan. If the individual refuses to engage in

work or otherwise participate in activities expected in accordance

with their self-sufficiency plan for at least two consecutive months,

the State must end all cash payments to the family for at least one

month and until the individual complies with work and related

self-sufficiency activities. State constitutional requirements to provide assistance to needy parents and children supercede this provision.

REASON FOR CHANGE

As has been noted above, the Committee believes that too many

recipients remain on welfare without engaging in activities to prepare them for work. The legislation provides increases in the work

requirements expected of States with important areas of increased

flexibility in activities that may be counted towards satisfying

those requirements. Overall, States are required, when fully

phased in, to have an average of 70 percent of adult recipients in

40 hours of activities, including 24 hours of direct work and 16

hours of other activities, for 48 weeks each year.

There are many ways that vocational education and training may

be combined under H.R. 4090 in ways that will greatly improve individual’s long-term prospects for self-sufficiency. Following are

specific examples of allowable combinations of work and training.

Example No. 1. A participant is taking classes to become a certified nurse assistant. She goes to class four hours each morning

from Monday through Thursday. Each afternoon, she works four

hours in a practicum assignment, practicing the skills she is learning in class. On Friday, she has a part-time job for eight hours. The

practicum hours and the part-time job would count towards the direct work requirement (total 24 hours). The 16 hours of class would

count towards the overall participation requirement for a total of

40 hours of participation. Because the participant is meeting her

direct work requirement, there would be no limit on how long she

could continue this arrangement (other than the overall 5-year lifetime limit on receipt of Federal benefits). She could continue for

whatever time it took to complete her certificate.

Example No. 2. A new participant is currently enrolled in a vocational education program that will take 12 to 18 months to complete. Her self-sufficiency plans calls for her to complete the current semester (about 4 months). Thereafter, she plans to work 3

days a week and continue her vocational training on the other two

days. The educational activity can substitute for the direct work requirement for up to four months. Thereafter, the part-time work

will count towards the direct work requirement and the vocational

education will count towards the additional hours, for a total of 40.

Subject to the overall 5-year limit on receipt of Federal benefits,

she can continue in this arrangement until she completes her vocational education program.

Example No. 3. A recipient with low basic educational skills who

is having difficulty obtaining employment participates in a comprehensive work experience and skills building program. The recipient participates in a full-time, 40 hours per week program that

41

includes actual work activities (perhaps in an industrial or even an

office setting) familiarizing the client with a job setting and jobspecific skills, and integrates that experience with basic educational skills training, all at the same site. The work activities

and trainings might be blended to enhance the client’s experience,

but about five hours of each day would involve work activities.

Under the Committee bill, States are provided partial credit toward their work participation rate requirement for individuals who

perform as few as 24 hours per week of work, and receive full credit for families who perform 40 or more hours per week of work and

other activities designed to promote self-sufficiency. The legislation

would eliminate the separate and higher State work participation

rate requirement that currently applies to two-parent families,

making them subject to the same rate and hours of work rules as

single-parent families receiving assistance, enhancing the chances

that these or other families might be able to participate in ‘‘extra’’ hours that could balance families whose maximum hours of work

and other activities might fall short of 40 hours per week standard.

The Secretary is expected to issue regulations that specify how

the 24-hour direct work requirement may be applied in certain lowbenefit States. The Committee is aware that certain States may

face special challenges in meeting the 24-hour direct work requirement in cases where unsubsidized or subsidized private sector employment is limited and the State may only enroll individuals in a

certain number of hours of work experience or community service

activities due to minimum wage constraints. The Committee notes

that modifying regulations, which currently limit the value of government benefits to only cash welfare and food stamps, to include

additional benefits families receive also would facilitate participation in additional work experience or community service.

Under the Committee bill, States have the flexibility to make accommodations in the work requirements for individuals with special circumstances, for example, caring for a disabled child. The

maximum work requirement a State must meet, assuming the

State receives no credit for future caseload declines, would be 70

percent in fiscal year 2007. Even at this high work rate, the State

can exempt up to 30 percent of its caseload from the work requirement. Further, many States have created separate State programs

to avoid penalties for failure to meet the higher work requirements

for 2-parent families. Under the Committee bill, these separate 2-

parent work requirements are eliminated, allowing States to use

these State funds for assistance to parents caring for disabled relatives, subject to separate State work requirements.

The legislation would update the current credit for net caseload

reduction. As under current law, this credit reduces the State work

participation rate requirement by the percentage decline, if any, in

the State’s welfare caseload relative to a prior year. Under the legislation, States would continue to be given credit for caseload declines, but the baseline year for determining the percentage decline

and thus the credit would be recalibrated as follows: in fiscal year

2002, States would be given credit for the percentage of caseload

decline between fiscal years 1995 and 2001 (current law); in 2003,

States would be credited for declines between 1996 and 2002; in

2004, between 1998 and 2003; in 2005, between 2001 and 2004; in

2006, between 2002 and 2005; and in 2007, between 2003 and

42

2006. Thus if the State’s welfare caseload declined by 30 percent

between fiscal years 2003 and 2006, its real work participation rate

requirement for the remaining caseload in fiscal year 2007 would

be 40 percent, given the updated credit for net caseload reduction.

In addition to the credit for net caseload reduction, 17 States

that achieved caseload declines of more than 60 percent between

fiscal years 1995 and 2001 will receive an additional superachiever

credit. Given their large past caseload declines, these States will

receive a percentage reduction in future work requirements based

on the percentage decline above 60 percent (Colorado is eligible for

a maximum 12% credit against future rates, FL 15%, GA 4%, ID

20%, IL 14%, LA 9%, MD 5%, MI 4%, MS 10%, NJ 2%, NC 6%,

OH 3%, OK 9%, SC 5%, WV 2%, WI 16%, and WY 20%). The credit

takes into consideration the difficulty these States might have in

further reducing caseloads, which would otherwise reduce the rising work rate requirements. The superachiever credit in any year

may not reduce the target work participation rate to less than 50

percent in any future year. For a number of superachiever States,

this will maintain the effective work rate requirement at the current 50 percent level for several or all of the next five fiscal years.

All States, including those receiving superachiever credits, may receive additional credits under the recalibrated net caseload reduction credit provision also included in the legislation and described

above.

To illustrate how the superachiever credit works, consider the

State of Wisconsin. Wisconsin experienced a 76 percent caseload

decline in the 1995–2001 period, earning a superachiever credit of

16 percent (76 percent decline minus 60 percent threshold equals

16 percent credit). As State work rates rise under the legislation

from 50 percent in fiscal year 2003 to 55 percent in 2004, 60 percent in 2005, and 65 percent in 2006, this credit would maintain

Wisconsin’s work rate requirement at the current 50 percent level.

In fiscal year 2007 when the rate rises to 70 percent, Wisconsin’s

effective work rate requirement would be 54 percent (70 percent

work rate minus 16 percent credit equals 54 percent effective work

rate).

In order to stress the importance of work, the legislation would

specify certain conditions under which States must provide for a

‘‘full check sanction’’ if a parent refuses to participate in work and

other activities as required by the State and as expressed in the

self-sufficiency plan to which the parent has agreed, but adds that

this condition does not apply in a State with a Constitutional requirement to provide benefits.

Section 111. Maintenance of Effort

PRESENT LAW

Establishes a maintenance-of-effort (MOE) requirement that

States spend at least 75 percent of what was spent from State

funding in fiscal year1994 on programs replaced by TANF. Nationally, this 75 percent level equals $10.4 billion. MOE rises to 80 percent if State fails a work participation standard.

43

EXPLANATION OF PROVISION

Continues existing MOE requirement through fiscal year 2007.

Provides that Federal TANF funds used for marriage promotion

may be treated as State matching funds for marriage promotion

grants, but that any such funds so used may not be counted towards State MOE requirements.

REASON FOR CHANGE

The Committee legislation includes a conforming change related

to State spending on activities to prevent out-of-wedlock childbearing and promote healthy marriages. Regulations have interpreted that State MOE funds may only be spent for such purposes

on TANF-eligible families, even though Federal TANF funds may

be spent on a broader range of families. Activities aimed at preventing dependence that cannot reasonably be limited to low-income families since they frequently consist of public awareness

campaigns or education programs broadly available in the community. This provision makes clear that States may use State and

Federal TANF funds for these purposes for both needy families and

others, including those who might become eligible in the absence

of such interventions.

Section 112. Performance Improvement

PRESENT LAW

Each State must outline, in a 27-month plan, how it intends to:

conduct a program providing cash assistance to needy families with

children and providing parents with work and support services, require caretaker recipients to engage in work (at State definition)

after 24 months of aid or sooner, if judged work-ready, ensure that

caretakers engage in work in accordance with the law, take steps

deemed necessary by the State to restrict use and disclosure of information about recipients, establish goals and take action to prevent/reduce the incidence of out-of-wedlock pregnancies, and conduct a program providing education and training on the problem of

statutory rape. In addition, the plan must indicate whether the

State intends to treat families moving into the State differently

from others, indicate whether the State intends to aid noncitizens,

set forth objective criteria for benefit delivery and for fair and equitable treatment, and provide that, unless the governor opts out by

notice to HHS, the State would require a parent who has received

TANF for two months and is not work-exempt to participate in

community service employment. In the plan the State must certify

that it will operate a child support enforcement program and a foster care and adoption assistance program and provide equitable access to Indians ineligible for aid under a tribal plan. It must certify

that it has established standards against program fraud and abuse.

It must specify which State agency or agencies would administer

and supervise TANF. Further, the State may opt to certify that it

has established and is enforcing procedures to screen and identify

recipients with a history of domestic violence, to refer them to services, and to waive program rules when appropriate.

The law also authorizes States to administer and provide TANF

services through contracts with charitable, religious, or private orVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00043 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
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ganizations and to pay recipients by means of certificates, vouchers, or other disbursement forms redeemable with these organizations. This provision stipulates that any religious organization with

a contract to provide welfare services shall retain independence

from government and requires States to provide an alternative provider for a beneficiary who objects to the religious character of the

designated organization.

Finally, the law directs the Secretary of HHS to rank States in

order of success in moving recipients into long-term private jobs

and reducing the proportion of out-of-wedlock births. In both cases,

the Secretary is directed to review programs in the three States

with the highest and lowest ratings.

EXPLANATION OF PROVISION

The legislation adds a requirement that each State outline how

it would encourage equitable treatment of married, two-parent

families and describe any strategies the State is undertaking to

deal with: (1) employment retention and advancement for recipients; (2) efforts to reduce teen pregnancy; (3) services for struggling

and noncompliant families and for clients with special problems;

and (4) program integration, including the extent to which employment and training services are provided through the One-Stop Career Center System created under the Workforce Investment Act of

1998.

The legislation strikes a provision requiring community service

after two months of benefits.

The legislation strikes a provision requiring goals to reduce outof-wedlock pregnancies and replaces it with a requirement that

States establish specific numerical performance goals, measures,

measurement methodology, and plans to improve outcomes regarding each of TANF’s four goals.

States are required to describe in their State plans what strategies the State has in place to engage faith-based organizations in

the provision of services funded by TANF, as well as strategies to

improve program management and performance.

A provision is included to assure that Tribes and States have

consulted each other regarding TANF program planning.

The legislation requires the Secretary of HHS, in consultation

with the National Governors Association, the National Conference

of State Legislatures, and the American Public Human Services Association, to develop uniform performance measures to judge the effectiveness and improvement of State programs in accomplishing

TANF purposes. Finally, the legislation deletes a ‘‘long-term’’ qualifier measure used in ranking State performance and adds an employment retention and advancement ranking factor.

REASON FOR CHANGE

The Committee bill removes certain State plan requirements in

current law that do not conform to proposed changes in the TANF

program. The bill also adds certain State plan requirements that

reflect the legislation’s increased focus on engaging more recipients

in work and other self-sufficiency activities, and the proposal’s

focus on promoting healthy marriages and preventing out-of-wedlock births. Finally, the new plan requirements reflect growing interest among program administrators in helping recipients move

45

from employment to better jobs leading finally to long-term self-sufficiency by requiring States to report on what strategies they are

employing to address this issue.

The legislation eliminates a State plan requirement related to

differential treatment of beneficiaries based on previous State residency. This revision is in response to a 1999 Supreme Court Case

(Saenz v. Roe) that held such differential treatment was unconstitutional.

The uniform performance improvement measures are intended to

help States quickly identify program weaknesses so they may correct them in a timely manner and to facilitate States’ sharing of

best practices.

The Committee bill requires eligible States to submit documents

to the Secretary describing their strategies for engaging faith-based

organizations in the provision of services funded under the provisions in Section 104 of the 1996 welfare reform law. The principles

set out in Section 104 allow for the funding of faith-based organizations on the same basis as other nongovernmental organizations;

permit them to maintain their religious character by choosing

board members, symbols, and staff in accord with their faith; and

protect beneficiaries from discrimination while safeguarding their

rights of conscience by ensuring that alternative providers that are

unobjectionable to them on religious grounds are made available.

While Section 104’s provisions save from Federal preemption a

State constitution or statute that expressly singles out religious organizations as subject to limits on State funding, they do not save

local laws or general laws that merely have a disparate impact on

some religious organizations.

The provisions in Section 104 also prohibit the use of Federal

funds for sectarian worship, instruction, or proselytization when religious organizations receive such funds directly. Accordingly, when

a faith-based organization’s program receives direct funding, such

as through grants or contracts, beneficiaries also have the right to

opt out of such program’s sectarian components, offered separate

from the funded program, because under the provisions of Section

104 these beneficiaries may refuse to actively participate in a religious practice. However, when the method of funding a program is

indirect, the Establishment Clause, under Supreme Court precedent, allows faith-based organizations to offer an integrated social

service program. The Supreme Court has described indirect funding as a funding method by which the ‘‘genuinely independent and

private choice’’ of the beneficiary determines ultimately whether

the assistance is directed to a secular or religious provider. Witters

v. Washington Department Services for the Blind, 474 U.S. 481,

487 (1986).

Section 113. Data Collection and Reporting

PRESENT LAW

States are required to collect monthly, and report quarterly,

disaggregated case record information about recipient families (but

may use sample case record information for this purpose). Required

family information includes county of residence, whether a member

received disability benefits, ages of members, size of family and the

relation of each member to the family head, employment status

46

and earnings of the employed adult, marital status of adults, race

and educational level of each adult, and race and educational level

of each child, and whether the family received subsidized housing,

Medicaid, food stamps, or subsidized child care (and if the latter

two, the amount). In addition, required information includes number of months that the family received each type of aid under the

program, number of hours per week, if any, that adults participated in specified activities (education, subsidized private jobs, unsubsidized jobs, public sector jobs, work experience, community

service, job search, job skills training or on-the-job training, vocational education), information needed to calculate participation

rates, and type and amount of assistance received under the program, including the amount of and reason for any reduction of assistance. Further information required is unearned income, citizenship of family members, number of families and persons receiving

aid under TANF (including the number of two-parent and one-parent families), total dollar value of assistance given, total number of

families and persons aided by welfare-to-work grants (and the

number whose participation ended during a month), number of

noncustodial parents who participated in work activities, and for

each teenager, whether he/she is the parent of a child in the family. From a sample of closed cases, the quarterly report is to give

the number of case closures because of employment, marriage, time

limit, sanction, or State policy.

EXPLANATION OF PROVISION

The legislation permits the Secretary of HHS to limit the use of

sampling by designating core elements that must be reported for

all families and adds race and educational level of each minor parent to the core reporting elements. States are no longer required

to report on the education level of each child. Under the Committee

legislation, States would be required to report on ‘‘each type’’ of aid

a family receives and the reason for extending aid beyond 60

months when applicable.

The legislation also would require States to report on whether

adults receiving assistance participated in training or other activities directed at TANF purposes, but not specifically listed under

current law. States now reporting on participants engaged in job

search also would have to report on those participating in job placement activities. States no longer would have to report on participants involved in job skills training. The legislation adds that work

experience and community service activities are ‘‘supervised.’’

States would be required to report additional information related

to progress toward universal engagement, as well as participation

rates, and in the quarterly reports States must identify whether

self-sufficiency plans have been established for all families receiving assistance, and the date the family first received assistance.

The quarterly reports also must provide information on the marital

status of the parents or guardians of any child in the family and

whether the parents or guardians are living.

States would no longer be required to report on the type of assistance a family receives. However, States would be required to report on the number of families and persons who become ineligible

to receive TANF during a month (broken down by the number that

lose eligibility because of earnings, changes in family composition

47

that result in higher earnings, sanctions, time limits, or other specified reasons).

The legislation proposes that regulations defining additional data

elements be developed by the Secretary of HHS in consultation

with the National Governors Association, American Public Human

Services Association, and National Conference of State Legislatures.

Beginning in fiscal year 2005, States would be required to submit

annual reports to the Secretary of HHS on the characteristics of all

TANF programs funded with qualified State expenditures (that is,

which are countable toward State maintenance of effort requirements), including the program’s eligibility, program name, description of activities and program purposes, the number of beneficiaries, and any sanction policies or work requirements imposed.

Other new reporting requirements under the proposal include an

annual report on performance improvement based on measures developed by the State in its State plan, and a requirement that

States provide the Secretary of HHS with monthly caseload data

no more than three months after each current month. Finally, the

Secretary of HHS must provide an annual report to Congress by

July 1 of each subsequent fiscal year, which is to include information provided by the States in their annual reports to the Secretary

on program characteristics.

REASON FOR CHANGE

Since the 1996 welfare reform law was enacted, data reported to

the Secretary has been critical in evaluating the impacts of various

State and local programs. The legislation conforms data reporting

elements with the proposal’s increased emphasis on work among

current recipients. Based on the information provided to the Congress in the Secretary’s Annual Report, there appear to be several

areas on which additional information is needed to improve Congressional oversight of the program. For example, Congress does

not have complete information on what State programs are funded

with TANF dollars, and whether and what benefits are provided to

families beyond the 60 month time limit. Another area in which additional information is needed relates to the changing nature of

TANF programs in the direction of providing improved supports.

While it is unreasonable to expect States to provide information on

individuals receiving work supports, additional information on the

types of supports provided to those receiving cash benefits and aggregate data on those receiving work supports in lieu of cash benefits would provide a better picture of State welfare programs.

Finally, the legislation’s requirement that States provide information on all activities performed by adults on assistance and their

fulfillment of self-sufficiency plan requirements would provide a

clearer picture of the work and other activities in which recipients

are engaged. Current data reflects that as of fiscal year 2000, a full

58 percent of work eligible adults were participating in no hours

of work or other activities, making this an area in which the Congress is interested in receiving additional data in accordance with

the strengthened work requirements provided under the Committee legislation.

48

Section 114. Direct Funding and Administration by Indian Tribes

PRESENT LAW

In cases in which an Indian tribe applies to administer a Tribal

family assistance program, the State’s TANF block grant is reduced

by an amount equal to the Federal pre-TANF payments to the

State attributable to Indians. A separate appropriation of $7.6 million annually is provided for work and training activities (now

known as Native Employment Works [NEW]) to tribes that operated a pre-TANF work and training program.

EXPLANATION OF PROVISION

Continues Indian tribal assistance grants and NEW work/training grants through fiscal year 2007.

REASON FOR CHANGE

Makes conforming amendment.

Section 115. Research, Evaluations, and National Studies

PRESENT LAW

The law authorizes the Secretary to conduct a series of research

studies, demonstration projects, and evaluations and appropriates

$15 million annually for such activities.

EXPLANATION OF PROVISION

The legislation extends the annual appropriation for research of

$15 million for each of fiscal years 2003 through 2007. Additionally,

the Secretary is provided with an additional $102 million fund for

research and demonstration projects and for technical assistance to

States, tribal organizations, and other entities chosen by the Secretary for each fiscal year through 2007. These additional funds

shall be spent primarily on activities described under the marriage

promotion grants as provided in section 103 above. Of this $102

million fund, $2 million per year shall be used for demonstration

projects conducted by the Secretary of HHS to allow eligible Indian

tribes to coordinate child welfare and TANF services and assistance.

Finally, the Secretary, in consultation with the Attorney General,

is required to report to Congress on the enforcement of affidavits

of support and sponsor deeming as required under relevant provisions of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

REASON FOR CHANGE

Research, demonstrations, and technical assistance are a critical

feature of the TANF program. Given the flexible nature of the

block grant program, States have broad latitude to develop innovative programs that may be replicated by other States. The new

$100 million fund authorized by the Committee bill would help answer important questions about what types of interventions may

prevent divorce, increase and strengthen healthy marriages, and

prevent and reduce the incidence of out-of-wedlock births. As scarce

resources have been devoted to these important purposes of the

49

TANF program, this new fund would play a critical role in developing and promoting best practices across the country. In addition,

this new fund will provide much needed funding for technical assistance to tribal organizations as they work to create and develop

TANF programs to meet the unique needs of their members.

The new demonstration authority for Indian tribes is intended to

support tribes that receive funds under the Title IV–B Child Welfare Services or Promoting Safe and Stable Families programs but

do not have access to the Title IV–E Adoption and Foster Care program. Parents seeking temporary assistance through the TANF

program and those caring for children who have been subject to

abuse and neglect or at-risk of such maltreatment often face similar and complex service needs. The demonstration authority will

help tribes improve coordination between these two programs;

strengthen families by providing assistance and services necessary

to prevent family disruption; and, when necessary, support out-ofhome placements to safely care for children.

The Committee seeks information from HHS and the U.S. Department of Justice to verify that affidavit of support and sponsor

deeming provisions are being implemented as the 1996 law intended. The Committee is concerned that the appropriate procedures and guidance to State and local governments have not been

put in place in order to ensure these provisions are implemented.

The Committee finds that Goodwill Industries is one of many examples of organizations that have contributed significantly to the

success of welfare reform across the country, and that State and

local governments may consider expanding or establishing future

partnerships with such outstanding community groups when developing strategies to support individuals with special challenges in

making the transition to work.

Section 116. Study by the Census Bureau

PRESENT LAW

The Census Bureau is directed to expand the Survey of Income

and Program Participation (SIPP) to obtain data with which to

evaluate TANF’s impact on a random national sample of recipients.

Appropriations are authorized at $10 million annually for seven fiscal years.

EXPLANATION OF PROVISION

The legislation directs the Census Bureau to expand the Survey

of Income and Program Participation (SIPP) to obtain data with

which to evaluate TANF’s impact on the economic and child wellbeing of low-income families with children. The legislation directs

that the survey include information necessary to examine issues of

out-of-wedlock childbearing, marriage, welfare dependency, the beginning and ending of spells of assistance, work, earnings and employment stability, and the well-being of children. Appropriations

are authorized at $10 million annually for fiscal years 2003

through 2007.

REASON FOR CHANGE

The SIPP has been used widely by public and private researchers

to assess impacts of the TANF program. This provision reauthorVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00049 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
50

izes and refocuses future data collection efforts on areas of particular interest to the Committee, including out-of-wedlock childbearing, length of stay on welfare, earnings and employment stability, and child well-being.

Section 117. Definitions of Assistance

PRESENT LAW

Receipt of assistance by a parent or other caretaker relative triggers work and time limit rules. Current law does not define the

term ‘‘assistance,’’ however. By regulation, assistance is defined as

ongoing aid to meet basic needs, plus support services such as child

care and transportation subsidies, for unemployed recipients. It excludes non-recurring short-term benefits.

EXPLANATION OF PROVISION

The legislation specifically defines ‘‘assistance’’ to mean payment,

by cash, voucher, or other means, to or for an individual or family

to meet a subsistence need, but not including costs of transportation or child care. It excludes non-recurring short-term benefits.

REASON FOR CHANGE

This provision codifies regulations important in determining how

long individuals may receive cash benefits and when work requirements and penalties should be imposed. Clarifying that child care

and transportation subsidies should never be considered assistance

would provide States additional flexibility in supporting individuals

who have left welfare and prevent welfare dependence for others.

Section 118. Technical Corrections

PRESENT LAW

Not applicable.

EXPLANATION OF PROVISION

Makes a number of technical corrections in keeping with various

legislative changes.

REASON FOR CHANGE

Technical corrections.

Section 119. Fatherhood Program

Section 120 of the Committee legislation amends Title I of the

Personal Responsibility and Work Opportunity Reconciliation Act

of 1996 (Public Law 104–193) to add a new Fatherhood program to

the Social Security Act as a new Part C of Title IV, as follows:

Part C—Fatherhood Program

Section 441 of Part C—Findings

PRESENT LAW

No provision.

51

EXPLANATION OF PROVISION

Details evidence of the need to promote and support involved,

committed, and responsible fatherhood, and to encourage and support healthy marriages between parents raising children.

REASON FOR CHANGE

The Committee is very interested in finding ways to reverse the

negative impacts of single-parent families on both adults and children. One solution is to increase, in appropriate situations, the incidence of marriage. Whether or not marriage occurs, a second approach is to promote the involvement of single fathers in the lives

of their children. Even when fathers do not live with their children,

they still have a responsibility to participate in the child’s rearing

and to work with the mother to provide a solid foundation for the

child’s development. Economic support is another important part of

the father’s role in the family. Since many poor fathers have a

weak and sporadic connection to the workforce, fatherhood projects

would work to increase the number of employed fathers and improve the work skills of employed fathers to help them increase

their income and be better able to provide economic support, including child support, to the family. The purposes selected by the

Committee would help define projects that would contribute to addressing the problems associated with single-parent families.

Section 441 of Part C—Purposes

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

The first of the three purposes is to provide for projects and activities by public entities and nonprofit community entities, including religious organizations, to test promising approaches to accomplishing the following four objectives: (1) promoting responsible,

caring, and effective parenting and encouraging positive father involvement, including the positive involvement of non-resident fathers; (2) enhancing the abilities and commitment of unemployed

or low-income fathers to provide support for their families and to

avoid or leave welfare; (3) improving fathers’ ability to effectively

manage family business affairs; and (4) encouraging and supporting healthy marriages and married fatherhood.

The second purpose is to improve outcomes for children such as

increased family income and economic security, improved school

performance, better health, improved emotional and behavioral stability and social adjustment, and reduced risk of delinquency,

crime, substance abuse, child abuse and neglect, teen sexual activity, and teen suicide.

The third purpose is to evaluate approaches and disseminate

findings to encourage replication of effective approaches to achieving the desired outcomes for both parents and children.

REASON FOR CHANGE

Children reared in female-headed families are more likely to live

in poverty, fail in school, be arrested, have children outside marVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00051 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
52

riage, and go on welfare themselves. To help address these problems, the Committee legislation would implement a fatherhood

grant program to provide funding for projects to work directly with

fathers, especially those in poverty. The fatherhood projects would

emphasize healthy marriage, parenting, and employment and may

be able to have an impact on both the number of children being

reared in single-parent families and, where marriage is not a possibility, to strengthen the relationship between single fathers and

their children. Most Federal and State social programs, including

welfare, are aimed primarily at helping single mothers. The fatherhood grant program acknowledges that Congress is interested in

helping fathers improve their financial independence, manage their

financial affairs, and strengthen their ability to support a family.

Section 442 of Part C—Definitions

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

Declares the terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ to

have the meanings given them in subsections (e) and (l), respectively, of Section 4 of the Indian Self-Determination and Education

Assistance Act.

REASON FOR CHANGE

Clarifies the definition of ‘‘Indian tribe’’ and ‘‘tribal organization’’ as they relate to the fatherhood grant program.

Section 443 of Part C—Competitive Grants for Service Projects

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

The Secretary of HHS is authorized to make grants for fiscal

year 2003 through fiscal year 2007 to public and nonprofit community entities, including religious organizations, and to Indian tribes

and tribal organizations, for demonstration service projects and activities designed to test the effectiveness of various approaches to

accomplish four objectives.

Full service grant projects require an applying entity to submit

an application to the Secretary. The application must contain: (1)

a description of the project and how it will be carried out; (2) information about the applicant’s ability to carry out the project, and

such other qualifications as the Secretary may require; (3) a description of how the applicant will address child abuse and domestic violence, including how the applicant will coordinate with State

and local child protective service and domestic violence programs;

(4) a commitment to make available to each individual participating in the project education about alcohol, tobacco, and other

drugs, and about the health risks associated with abusing such

substances, and information about diseases and conditions transmitted through substance abuse and sexual contact, including HIV/

AIDS, and to coordinate with providers of services addressing such

53

problems, as appropriate; and (5) a description of how the project

would coordinate, as appropriate, with State and local entities responsible for Welfare-to-Work, Child Support Enforcement, and

Child Welfare Service programs under Title IV of the Social Security Act, programs under Title I of the Workforce Investment Act

of 1998 (including the One-Stop delivery system), and such other

programs as the Secretary may require. In addition, the application

would include an agreement to maintain records, make reports,

and cooperate with reviews or audits as required by the Secretary

and an agreement to cooperate with the Secretary’s evaluation of

the project. An application for a limited purpose grant of less than $25,000

per fiscal year must contain similar but more limited information

and descriptions than those required for full service grants as provided above.

In awarding grants, the Secretary must seek to achieve a balance

among entities of differing sizes, entities in differing geographic

areas, entities in urban and in rural areas, and entities employing

differing methods of achieving the four specified objectives. Also,

the Secretary may give preference to projects in which a majority

of the clients to be served are low-income fathers.

Federal grant funds may be used for up to 80 percent of the annual costs of full-service projects (or up to 90 percent if the entity

demonstrates circumstances limiting the entity’s ability to secure

non-Federal resources), and for up to 100 percent of annual costs

for limited-purpose projects. The non-Federal share may be in cash

or in kind.

REASON FOR CHANGE

Funding both full service grant and limited purpose grant

projects would enable the Secretary to collect valuable information

about the effectiveness of using different approaches to meet the

goals of the fatherhood grant program. During Committee hearings

on fatherhood issues in the 106th and 107th Congress, Members

expressed interest in a variety of fatherhood programs—from those

addressing the needs of inner city populations to those run by a

rural faith-based group working to address specific problems in a

small community. Of particular interest are programs that help

young low-income fathers meet their child support obligations, both

current and past due. One approach, that has been used on a limited basis in Maryland, Iowa, and Montana, is to consider compromising arrearages owed to the State when the non-custodial parent

has kept current on a child support payment plan for a specific period of time or has enrolled and completed a responsible fatherhood

project where they go to work and complete certain activities.

Section 444 of Part C—Multicity, Multistate Demonstration Projects

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

The Secretary will award grants for fiscal year 2003 through fiscal year 2007 for two multi-city, multi-State fatherhood projects

demonstrating approaches to achieving the four specified objecVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00053 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
54

tives. One of the projects is required to test the use of married couples to deliver program services. The legislation specifies conditions

for an entity eligible for such grants.

Federal grant funds for multi-city, multi-State demonstration

projects may be used for up to 80 percent of the annual costs of

the demonstration projects. The non-Federal share may be in cash

or in kind.

REASON FOR CHANGE

It is important that some experienced fatherhood organizations

develop grant projects in major cities. The Committee is aware of

a number of these organizations that have sponsored fatherhood

programs in inner-city areas, have experience working with State

and local agencies, and have the capacity to design projects that

would improve outcomes for fathers. The Committee expects the selected projects to provide project information with the Secretary

that can be shared with other programs.

Section 445 of Part C—Evaluation

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

The Secretary would evaluate the effectiveness of the selected

competitive grants for service projects and selected multi-city,

multi-State demonstration projects from the standpoint of the four

specified objectives.

Evaluations under this section must use assessment methods including random assignment of clients to service delivery and control groups, a description and measurement of the effectiveness of

the projects in achieving their goals, and a description and assessment of their impact on marriage, parenting, domestic violence,

child abuse, money management, employment and earnings, payment of child support, and child well-being, health, and education.

The Secretary must publish an implementation evaluation report

covering the first 24 months of the activities within 36 months of

the initiation of such activities. A final report on the evaluation is

to be completed by September 30, 2010.

REASON FOR CHANGE

Carefully evaluating the fatherhood projects and their outcomes

would help the Secretary determine the best approaches to meet

program objectives. The Committee is interested in maximizing information for Congress and others to review whether a project has

been effective.

Section 446 of Part C—Projects of National Significance

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

The Secretary is authorized, by grant, contract or cooperative

agreement, to carry out projects and activities of national signifiVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00054 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
55

cance relating to fatherhood promotion. These projects and activities may include: collection and dissemination of information to interested parties information regarding approaches to accomplishing

the four specified objectives; development, promotion, and distribution of a media campaign that promotes and encourages involved,

committed, and responsible fatherhood and married fatherhood;

technical assistance in the implementation of local fatherhood promotion programs, and conducting research related to the purposes

of the fatherhood program.

REASON FOR CHANGE

To assist State and local projects that are working to help young

and especially poor fathers become better husbands, parents, and

providers, fatherhood projects of national significance will produce,

collect, and distribute information about accomplishing the goals of

the fatherhood program. Other allowable activities such as a media

campaign, technical assistance, and research would help encourage

involved, committed, and responsible fatherhood and married fatherhood.

Section 447 of Part C—Nondiscrimination

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

The projects and activities assisted must be made available on

the same basis to all fathers and expectant fathers able to benefit

from such projects and activities, including married and unmarried

fathers and custodial and non-custodial fathers, with particular attention to low-income fathers, and to mothers and expectant mothers.

REASON FOR CHANGE

This provision clarifies the intent of the Committee regarding

nondiscrimination.

Section 448 of Part C—Authorization Of Appropriations; Reservation For Certain Purposes

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

Authorizes $20 million for each of fiscal years 2003 through

2007. Not more than 15 percent of the annual appropriations shall

be available for the costs of the multi-city, multi-State demonstration projects under Section 444, evaluations under Section 445, and

projects of national significance under Section 446.

REASON FOR CHANGE

This level of funding is appropriate for initiating the program so

it can provide valuable information about effective approaches that

56

help young men become better fathers and play a more significant

role in family life.

Section 120. Increased Analysis of State Single Audit Reports

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

The Secretary is required to analyze State Single Audit Reports

within 3 months of receipt by the Secretary, and to identify the extent and nature of problems related to the oversight by the State

of non-governmental entities under contract to operate State welfare programs. The Secretary is also required to determine what

additional actions are needed for the State to help prevent and correct any problems. The information from this additional review is

to be incorporated in the Secretary’s Annual Report to Congress.

REASON FOR CHANGE

This provision responds to findings from a recent GAO report on

the Single Audit process and HHS’ oversight of the audits.

TITLE II. CHILD CARE

Section 201. Entitlement Funding

PRESENT LAW

States are entitled to child care block grant funding based on fiscal years 1992 through 1995 expenditures in welfare-related child

care. Mandatory funds above this amount are provided to States on

a matching basis. Appropriations for the entitlement (mandatory)

funds are set forth for each year, rising to $2.717 billion in fiscal

year 2002.

EXPLANATION OF PROVISION

The legislation provides $2.717 billion in mandatory funding for

the child care block grant (continuing fiscal year 2002 levels) in

each of fiscal years 2003 through 2007.

REASON FOR CHANGE

The record high Federal funding levels for the mandatory portion

of the Child Care and Development Block Grant are continued each

year through 2007, totaling well over $13 billion over five years.

In addition to maintaining the current record funding level for

child care and providing additional State flexibility in use of TANF

funds for child care, the Committee anticipates that, provided appropriate offsets for additional mandatory funding are located,

more funds will be added to the Child Care and Development Block

Grant as the Committee bill moves through the legislative process.

Should such increases be provided, the Committee urges States to

consider giving priority to the need for increased infant and afterhour care.

57

TITLE III. CHILD SUPPORT

Section 301. Federal Matching Funds for Limited Pass Through of

Child Support Payments to Families Receiving TANF

PRESENT LAW

While a family receives TANF benefits, the State is permitted to

retain any current child support payments and any assigned arrearages it collected up to the cumulative amount of TANF benefits

which have been paid to the family. The State may share some, all,

or none of the child support collected on behalf of a TANF family

with the family. The State is required to pay the Federal government the Federal share of the child support collected, even if the

State shares its collections with the family.

EXPLANATION OF PROVISION

For families receiving TANF benefits, if the State passes through

to the family up to the greater of $100 per month or $50 over the

State’s stipulated pass through as of December 31, 2001, Federal

matching funds would be available. To obtain the Federal match,

the State has to disregard the amount passed through in determining the TANF benefit amount. This provision would take effect

beginning October 1, 2004.

REASON FOR CHANGE

The Committee legislation provides that current and former welfare families receive more of the child support collected from noncustodial parents. By providing a Federal match for child support

collections of up to $100 (or if greater, $50 more than the recent

level) that are passed through to current TANF families, States

would be given an incentive to enact such a policy. These additional funds for current TANF families would help the family by

encouraging a stronger connection between the family and the absent parent, providing additional regular income for the family, and

allowing the paying parent to see that at least part of their child

support payments are actually going to the family, rather than

being retained by the government.

Section 302. State Option to Pass Through All Child Support Payments to Families That Formerly Received TANF

PRESENT LAW

Current child support payments must be paid to the family if the

family is no longer on TANF. With respect to former TANF families, since October 1, 1997, child support arrearages that accrue

after the family leaves TANF are required to be paid to the family

before any monies may be retained by the State. Since October 1,

2000, child support arrearages that accrued before the family

began receiving TANF also are required to be distributed to the

family first. If child support arrearages are collected through the

Federal income tax refund offset program, the family does not have

first claim on the arrearage payments, the State and the Federal

government retain such arrearage payments.

58

EXPLANATION OF PROVISION

If the family has left TANF, States may distribute to the family

the full amount of child support collected on their behalf (i.e., both

current child support and child support arrearages). The Federal

government would share with the States the costs of paying child

support arrearages accrued while the family received TANF. This

provision would take effect beginning October 1, 2004.

REASON FOR CHANGE

Providing additional funds to single-parent families leaving welfare would increase the parents’ incentive to leave welfare, improve

the chances that they will be able to sustain themselves and their

children without falling back on welfare, and contribute to

strengthening the bond between children and non-custodial parents.

Section 303. Mandatory Review and Adjustment of Child Support

Orders for Families Receiving TANF

PRESENT LAW

States are required to have procedures under which every three

years the State reviews and adjusts (if appropriate) child support

orders at the request of either parent. In addition, in the case of

TANF families, the State is required to review and update (if appropriate) child support orders at the request of the State Child

Support Enforcement agency or of either parent.

EXPLANATION OF PROVISION

States are required to review and, if appropriate, adjust child

support orders in both TANF and non-TANF cases every three

years, at the request of either parent or the State CSE agency (in

the case of a TANF family). This provision would take effect on October 1, 2004.

REASON FOR CHANGE

Factors such as inflation, unemployment, promotion, job change,

marriage, or disability can cause child support orders to become

outdated and in need of adjustment. Although requiring regular review of child support orders would involve the investment of time

and money by States, according to the Congressional Budget Office,

both States and the Federal government would save money if child

support orders were updated every 3 years. In addition to this cost

saving, a regular review and modification of child support orders

would promote fairness for both custodial and non-custodial parents. For custodial parents, positive changes in the financial condition of the non-custodial parent can result in higher child support

payments for families. For non-custodial parents experiencing economic difficulties, proper adjustment of a child support order would

help prevent them from accumulating unnecessary debt while allowing for continued, though perhaps lower, regular financial contribution to the monthly income needs of the child.

59

Section 304. Mandatory Fee for Successful Child Support Collection

for Family That Has Never Received TANF

PRESENT LAW

Non-welfare families applying for child support enforcement program services must be charged an application fee that cannot exceed $25. States have the option of recovering costs in excess of the

application fee. Such recovery may be from either the custodial parent or the noncustodial parent.

EXPLANATION OF PROVISION

Families that have never been on TANF are required to pay a

$25 annual user fee in cases where child support enforcement efforts are successful in collecting at least $500. This provision would

take effect October 1, 2003.

REASON FOR CHANGE

The implementation of user fees in certain non-welfare cases contributes to offsetting the costs of the program and is a reasonable

expectation, especially with the added provision limiting the fee

collection to only those cases in which at least $500 is collected. In

addition, this action represents a step away from the perception

that the purpose of the child support enforcement program is to recoup welfare benefits, and toward a focus on families and a

strengthened child support enforcement program.

Section 305. Report on Undistributed Child Support Payments

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

Within six months of enactment, the Secretary of HHS must submit to Congress a report on the procedures States use to locate custodial parents for whom child support has been collected but not

yet distributed. The report would be required to include recommendations on actions to expedite the payment of undistributed

child support.

REASON FOR CHANGE

The Committee is interested in learning more about the problem

of collected child support payments that are being held by the State

rather than being distributed to families because of problems such

as an incorrect address. The Secretary is directed to examine this

problem and its causes, estimate the amount of money that is undistributed and the length of time for which it is undistributed, and

make recommendations on State or Federal policy changes that

would effectively address this problem.

60

Section 306. Use of New Hire Information to Assist in Administration of Unemployment Compensation Programs

PRESENT LAW

All employers are required to report basic information on every

newly hired employee to the State. States are then required to collect all this information in the State Directory of New Hires, to use

this information to locate noncustodial parents who owe child support and send a wage withholding order to their employer, and to

(within three business days) report all information in their State

Directory of New Hires to the National Directory of New Hires. Information in the State Directory of New Hires is used by State Employment Security Agencies (the agency that operates the State

Unemployment Compensation program) to match against unemployment compensation records to determine whether people are

actually working and fraudulently drawing unemployment compensation benefits.

EXPLANATION OF PROVISION

State Employment Security Agencies are authorized to request

and receive information from the National Directory of New Hires

in order to help detect fraud in the unemployment compensation

system. This provision would take effect on October 1, 2003.

REASON FOR CHANGE

States have successfully used matches between their State Directory of New Hires and unemployment compensation records to

identify individuals who are inappropriately drawing unemployment compensation benefits while working. Unemployment compensation payments to these individuals are stopped quickly, saving money and reducing fraud. However, if an individual is working in a different State than the one in which unemployment compensation benefits are being drawn, the State paying unemployment benefits is not able to detect this fraud because they do not

have access to Federal Directory of New Hires for comparison. According to the Congressional Budget Office, allowing States access

to the National Directory of New Hires would reduce fraud by $66

million over five years.

Section 307. Decrease in Amount of Child Support Arrearage Triggering Passport Denial

PRESENT LAW

The Secretary of HHS is required to submit to the Secretary of

State the names of noncustodial parents who have been certified by

the State Child Support Enforcement agency as owing more than

$5,000 in past-due child support. The Secretary of State has authority to deny, revoke, restrict, or limit passports to noncustodial

parents whose child support arrearages exceed $5,000.

EXPLANATION OF PROVISION

The amount of past-due child support that triggers passport denial, revocation, or restriction to noncustodial parents is reduced

61

from $5,000 to $2,500. This provision would take effect on October

1, 2003.

REASON FOR CHANGE

The passport denial program has proved to be an effective method for collecting past-due child support payments. In fiscal year

2000, individuals with child support arrearages paid $3.6 million in

lump sum child support payments to avoid losing their passports.

By lowering the amount that triggers passport revocation, even

more child support would be collected to help more families.

Section 308. Use of Tax Refund Intercept Program to Collect PastDue Child Support on Behalf of Children Who are Not Minors

PRESENT LAW

Federal law prohibits the use of the Federal income tax offset

program to recover past-due child support on behalf of non-welfare

cases in which the child is not a minor.

EXPLANATION OF PROVISION

The Federal income tax refund offset program may be used to

collect arrearages on behalf of non-welfare cases in which the child

is no longer a minor. This provision would take effect on October

1, 2004.

REASON FOR CHANGE

Originally proposed as part of H.R. 4071 in the 106th Congress,

this provision promotes equal treatment of all child support debts,

increases collections, and strengthens the important message that

child support debts cannot be avoided by withholding payment

until the child is no longer a minor.

Section 309. Garnishment of Compensation Paid to Veterans for

Service-Connected Disabilities in Order to Enforce Child Support Obligations

PRESENT LAW

The disability compensation benefits of veterans are treated differently than most forms of government payment for purposes of

paying child support. Whereas most government payments are subject to being automatically withheld to pay child support, veteran’s

disability compensation is not subject to intercept. The only exception occurs when veterans have elected to forego some of their retirement pay in order to collect additional disability payments. The

advantage of veterans replacing retirement pay with disability pay

is that the disability pay is not subject to taxation. With this exception, which occurs rarely, the only way to obtain child support payments from veterans’ disability compensation is to request that the

Secretary of the U.S. Department of Veterans Affairs intercept the

disability compensation and make the child support payments.

EXPLANATION OF PROVISION

Veterans’ disability compensation benefits are allowed to be

intercepted and paid on a routine basis to the custodial parent if

the veteran is 60 days or more in arrears on child support payVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00061 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
62

ments. This provision cannot be used to collect alimony and no

more than 50 percent of any particular disability payment can be

withheld. This provision would take effect on October 1, 2004.

REASON FOR CHANGE

The Ways and Means Committee has been supportive of allowing

veterans’ disability payments to be subject to withholding to enforce child support obligations. Nonetheless, by allowing withholding only after the veteran has been 60 days in arrears on child

support obligations, veterans’ disability payments would continue

to be treated differently than most other government payments; the

Committee believes the fact that veterans are receiving the payments because they were injured in the line of duty justifies this

continued differential treatment.

Section 310. Improving Federal Debt Collection Practices

PRESENT LAW

Any Federal agency that is owed a nontax debt that is more than

180 days past-due must notify the Secretary of the Treasury to obtain an administrative offset of the debt. Currently, Social Security

payments can only be offset for Federal debt recovery.

EXPLANATION OF PROVISION

The Federal administrative offset program is expanded to allow

certain Social Security benefits to be offset to collect unpaid child

support on behalf of families receiving Child Support Enforcement

program services in appropriate cases selected by the States.

REASON FOR CHANGE

To further increase the amount of child support collected, this

provision adds another enforcement tool to achieve that goal. While

maintaining current safeguards such as offset thresholds, this provision provides a limited expansion that would help collect unpaid

child support obligations and assist additional families with children in avoiding unnecessary dependence on welfare.

Section 31. Maintenance of Technical Assistance Funding

PRESENT LAW

The Secretary is authorized to use one percent of the Federal

share of child support collected on behalf of TANF families the preceding year to provide for information dissemination and technical

assistance, training of State and Federal staff, staffing studies, and

related activities needed to improve Child Support Enforcement

programs (including technical assistance concerning State automated systems), and research, demonstration and special projects

of regional or national significance relating to the operation of child

support programs.

EXPLANATION OF PROVISION

The Secretary is authorized to use one percent of the Federal

share of child support collected on behalf of TANF families the preceding year, or the amount appropriated for fiscal year 2002,

63

whichever is greater, to provide for activities described under current law.

REASON FOR CHANGE

Funding authorized under this provision is an important element

of the Federal government’s oversight of the development of State

automated child support program systems. This provision would

help maintain an adequate funding stream for much needed technical assistance as HHS works to bring all States into compliance

with the automated system requirements of the 1996 welfare reform law.

Section 312. Maintenance of Federal Parent Locator Service Funding

PRESENT LAW

The Secretary of HHS is authorized to use two percent of the

Federal share of child support collected on behalf of TANF families

the preceding year for operation of the Federal Parent Locator

Service to the extent that the costs of the Federal Parent Locator

Service are not recovered by user fees.

EXPLANATION OF PROVISION

The Secretary is authorized to use two percent of the Federal

share of child support collected on behalf of TANF families the preceding year, or the amount appropriated for fiscal year 2002,

whichever is greater, for operation of the Federal Parent Locator

Service to the extent that the costs of the Federal Parent Locator

Service are not recovered by user fees.

REASON FOR CHANGE

The Federal Parent Locator Service processes millions of requests for information to help find absent parents in order to secure and enforce child support obligations. This provision would

help maintain an adequate funding stream for this important service.

TITLE IV. CHILD WELFARE

Section 401. Extension of Authority to Approve Demonstration

Projects

PRESENT LAW

Section 1130(a)(1) and (2) of the Social Security Acts permits the

Secretary of HHS to approve State demonstration projects that are

likely to promote the objectives of the child welfare programs authorized under Title IV–B and Title IV–E of that Act. This authority is granted for fiscal years 1998 through 2002.

EXPLANATION OF PROVISION

Extends the Secretary’s authorization to permit child welfare

demonstration projects through fiscal year 2007.

64

REASON FOR CHANGE

Waivers of Federal Foster Care, Adoption Assistance, and child

welfare services programs allow States to seek improvements and

efficiencies in child protection programs. For example, managed

care approaches to service provision approved under Title IV–E

waivers have allowed States to provide increased and support services to a broader range of families than could be accomplished

under the restrictive guidelines that govern existing Federal funding streams.

Much has been learned from the existing demonstration projects,

particularly as a result of the requirement that projects be rigorously evaluated. Continuation of this activity would yield additional important information on ways to improve the provision of

services to children and families in need.

Section 402. Elimination of Limitation on Number of Waivers

PRESENT LAW

Section 1130(a)(2) of the Social Security Act limits to ten the

number of demonstration projects the Secretary may grant in a single fiscal year.

EXPLANATION OF PROVISION

Removes the restriction on the number of demonstration projects

the Secretary may approve in each fiscal year.

REASON FOR CHANGE

The Secretary’s authority to approve child welfare waivers has

been increased over time and many States currently operate demonstration projects. Existing waivers have shown that enhanced

flexibility can free States and localities to expand and improve

services and supports to families without jeopardizing program integrity. Any and all States should have the opportunity to seek out

approaches designed to improve child protection services that

match local needs. Lifting the cap on the number of waivers that

may be approved would ensure that every State has this option.

Section 403. Elimination of Limitation on Number of States That

May Be Granted Waivers to Conduct Demonstration Projects on

Same Topic

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

Asserts that the Secretary may not refuse to grant a particular

waiver of child welfare program rules on the grounds that the purpose of the waiver or demonstration project is similar to another

waiver or demonstration project.

REASON FOR CHANGE

In the past, the Secretary has narrowly interpreted the agency’s

waiver authority. States were denied waiver applications on the

grounds that the approach had already been tested, despite the fact

65

that there were no such restrictions imposed in statute. The Committee finds that lessons learned from existing or previous demonstration projects ought to inform future applications on similar

topics. Thus, if one State’s waiver would benefit children in other

States, that waiver should be allowed to apply in those other

States.

Section 404. Elimination of Limitation on Number of Waivers That

May Be Granted to a Single State for Demonstration Projects

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

Asserts that the Secretary may not impose a limit on the number

of waivers or demonstration projects that a single State is granted.

REASON FOR CHANGE

In the past, the Secretary has narrowly interpreted waiver authority. The Committee legislation makes clear that States have

the authority to operate more than one waiver at a time. As many

waivers are narrowly focused on a particular service need, eligibility category, or local area, it is important that the number of

waivers or demonstration projects granted a single State not be arbitrarily limited.

Section 405. Streamlined Process for Consideration of Amendments

to and Extensions of Demonstration Projects Requiring Waivers

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

Requires the Secretary to develop a ‘‘streamlined process’’ for

considering amendments or extensions that States propose to their

demonstration projects.

REASON FOR CHANGE

The process for making adjustments or extensions to child welfare demonstration projects in the past has been lengthy and overly

bureaucratic. While the Committee finds that the current Administration has made dramatic improvements to the waiver approval

process, particularly as it affects waivers of health care provisions,

the legislation would ensure there is an expedited process for child

welfare waiver extensions and amendments in the future. The legislation would not in any way diminish the authority of the Secretary to raise and require States to address any issues that may

affect children’s health and safety.

Section 406. Availability of Reports

PRESENT LAW

Section 1130(f)(1) and (2) of the Social Security Act provides that

States conducting demonstration projects under a waiver granted

by the Secretary must obtain an evaluation of the project’s effecVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00065 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
66

tiveness and must provide interim and final evaluation reports to

the Secretary when and in the manner, that the Secretary requests.

EXPLANATION OF PROVISION

Requires the Secretary to make available to States or other interested parties any of the demonstration project evaluation reports

that it requests and any demonstration project evaluation or report

made by the Secretary which may promote best practices and program improvements.

REASON FOR CHANGE

The child welfare waiver authority requires rigorous evaluation

and studies of each project. This information can provide important

guidance to other States as they consider waiver applications or

other improvements to child protection programs. The legislation

requires the Secretary to ensure that the findings from these demonstration reviews are made available to other States and interested parties.

Section 407. Technical Correction

PRESENT LAW

Section 1130(b)(1) of the Social Security Act specifies States that

the Secretary of HHS may not waive compliance with certain provisions under Title IV–B and IV–E, including those provisions under

‘‘Section 422(b)(9).’’

EXPLANATION OF PROVISION

Changes this reference to Section 422(b)(10). This technical correction is necessary because the cited language was renumbered in

1997 (P.L. 105–33) without the necessary conforming amendment

to Section 1130 of the Social Security Act.

REASON FOR CHANGE

This is a technical change to correct a cross-reference.

TITLE V. SUPPLEMENTAL SECURITY INCOME

Section 501. Review of State Agency Blindness and Disability Determinations

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

The Commissioner of Social Security is required to review determinations made by State agencies that adult applicants became

blind or disabled as of a specified onset date. Review is required

of at least 20 percent of determinations made in fiscal year 2003,

40 percent of those made in fiscal year 2004, and 50 percent of

those made in fiscal year 2005 and subsequent years.

67

REASON FOR CHANGE

Under current law, the Commissioner of Social Security is required to review certain eligibility determinations made for Social

Security disability insurance program claims that are made by

State agencies. This practice ensures consistent and uniform application of SSA policies. By expanding this review provision to selected Supplemental Security Income adult disability cases, the

practice would be extended to help ensure that only beneficiaries

disabled under the law receive Supplemental Security Income benefits.

TITLE VI. BROADENED WAIVER AUTHORITY

Section 601. State Program Demonstration Projects

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

Establishes new waiver authority that would allow the Secretaries of HHS and Labor, upon request of a State or substate entity, to waive rules in part A of Title IV of the Social Security Act,

and Title XX of the Social Security Act. Waiver projects must not

increase Federal costs over one or five years. The purpose would

be to integrate programs designed to support working individuals

and families, helping families escape welfare dependency, promoting child well-being, or helping build stronger families, using

innovative approaches to strengthen service systems, and provide

more coordinated and effective service delivery.

Waivers may not be granted that affect laws relating to nondiscrimination and civil rights, the purposes or goals of any program, maintenance of effort requirements, health or safety standards, labor standards under the Fair Labor Standards Act of 1938,

or environmental protection.

REASON FOR CHANGE

Waivers under the Aid to Families with Dependent Children

(AFDC) program led to important information about how cash welfare programs could be operated in more efficient and effective

ways that benefited low-income families. H.R. 4090 as well as related legislation considered by other committees seeks to offer

added opportunities for States to integrate other programs that

serve similar populations, but frequently have conflicting or incongruous requirements. Sufficient protections are included in the legislation to ensure that fundamental program purposes are not compromised by demonstration projects, and that various civil rights,

health and safety, and labor protections may not be waived. These

demonstrations could yield important information for other States

and the Nation on how programs serving low-income families may

be improved in the future.

68

TITLE VII. EFFECTIVE DATE

Section 701. Effective Date

PRESENT LAW

No provision.

EXPLANATION OF PROVISION

Unless otherwise specified, provisions take effect on October 1,

2002. If the Secretary determines that State legislation is required,

more time is allowed (three months after the first regular session

of the legislature).

REASON FOR CHANGE

Provides for the effective date of changes while allowing States

ample time to make any necessary changes to State laws to comply

with the Committee bill.

III. VOTES OF THE COMMITTEE

In compliance with clause 3(b) of rule XIII of the Rules of the

House of Representatives, the following statements are made concerning the votes of the Committee on Ways and Means in its consideration of the bill, H.R. 4090.

MOTION TO REPORT THE BILL

The bill, H.R. 4090, as amended, was ordered favorably reported

by a roll call vote of 23 yeas to 16 nays (with a quorum being

present). The vote was as follows:

Representative Yea Nay Present Representative Yea Nay Present

Mr. Thomas ........................... X ........... ............. Mr. Rangel ........................... ........... X .............

Mr. Crane .............................. ........... ........... ............. Mr. Stark .............................. ........... X .............

Mr. Shaw ............................... X ........... ............. Mr. Matsui ............................ ........... X .............

Mrs. Johnson ......................... ........... ........... ............. Mr. Coyne ............................. ........... X .............

Mr. Houghton ........................ X ........... ............. Mr. Levin .............................. ........... X .............

Mr. Herger ............................. X ........... ............. Mr. Cardin ............................ ........... X .............

Mr. McCrery ........................... X ........... ............. Mr. McDermott ..................... ........... X .............

Mr. Camp .............................. X ........... ............. Mr. Kleczka ........................... ........... X .............

Mr. Ramstad ......................... X ........... ............. Mr. Lewis (GA) ..................... ........... X .............

Mr. Nussle ............................. X ........... ............. Mr. Neal ............................... ........... X .............

Mr. Johnson ........................... X ........... ............. Mr. McNulty .......................... ........... X .............

Ms. Dunn .............................. X ........... ............. Mr. Jefferson ........................ ........... ........... .............

Mr. Collins ............................ X ........... ............. Mr. Tanner ............................ ........... X .............

Mr. Portman .......................... X ........... ............. Mr. Becerra .......................... ........... X .............

Mr. English ........................... X ........... ............. Mrs. Thurman ....................... ........... X .............

Mr. Watkins ........................... X ........... ............. Mr. Doggett .......................... ........... X .............

Mr. Hayworth ......................... X ........... ............. Mr. Pomeroy ......................... ........... X .............

Mr. Weller .............................. X ........... ............. Mr. Hulshof .......................... ........... X .............

Mr. McInnis ........................... X ........... ............. Mr. Lewis (KY) ...................... ........... X .............

Mr. Foley ............................... X ........... ............. Mr. Brady ............................. ........... X .............

Mr. Ryan ............................... X ........... ............. .............................................. ........... ........... .............

VOTES ON AMENDMENTS

A roll call vote was conducted on the following amendment to the

Chairman’s amendment in the nature of a substitute.

An amendment by Mr. Rangel, which would allow States to do

the following: immediately pass-through child support, receive

TANF contingency funds, count individuals who have left welfare

69

for employment toward their work participation requirement for six

months, count individuals with disabilities toward the participation

requirement if they are in work or related activities for at least 20

hours a week, maintain current-law participation requirements for

mothers with children under the age of 6, count vocational training

toward the work participation requirements for up to 12 months;

and spend Federal TANF funds to provide assistance and service

to legal immigrants, was defeated by a roll call vote of 14 yeas to

22 nays. The vote was as follows:

Representative Yea Nay Present Representative Yea Nay Present

Mr. Thomas ........................... ........... X ............. Mr. Rangel ........................... X ........... .............

Mr. Crane .............................. ........... ........... ............. Mr. Stark .............................. X ........... .............

Mr. Shaw ............................... ........... X ............. Mr. Matsui ............................ X ........... .............

Mrs. Johnson ......................... ........... X ............. Mr. Coyne ............................. ........... ........... .............

Mr. Houghton ........................ X ........... ............. Mr. Levin .............................. X ........... .............

Mr. Herger ............................. ........... X ............. Mr. Cardin ............................ X ........... .............

Mr. McCrery ........................... ........... X ............. Mr. McDermott ..................... X ........... .............

Mr. Camp .............................. ........... X ............. Mr. Kleczka ........................... X ........... .............

Mr. Ramstad ......................... ........... X ............. Mr. Lewis (GA) ..................... X ........... .............

Mr. Nussle ............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. McNulty .......................... ........... ........... .............

Ms. Dunn .............................. ........... X ............. Mr. Jefferson ........................ ........... ........... .............

Mr. Collins ............................ ........... X ............. Mr. Tanner ............................ X ........... .............

Mr. Portman .......................... ........... X ............. Mr. Becerra .......................... X ........... .............

Mr. English ........................... ........... X ............. Mrs. Thurman ....................... X ........... .............

Mr. Watkins ........................... ........... X ............. Mr. Doggett .......................... X ........... .............

Mr. Hayworth ......................... ........... X ............. Mr. Pomeroy ......................... ........... ........... .............

Mr. Weller .............................. ........... X

Mr. Hulshof ........................... ........... X

Mr. McInnis ........................... ........... X

Mr. Lewis (KY) ...................... ........... X

Mr. Foley ............................... ........... X

Mr. Brady .............................. ........... X

Mr. Ryan ............................... ........... X

An amendment by Mr. Cardin, which would add limited participation in vocational or educational training (including postsecondary education) to the list of allowable work activities, was defeated by a roll call vote of 16 yeas to 21 nays. The vote was as

follows:

Representative Yea Nay Present Representative Yea Nay Present

Mr. Thomas ........................... ........... X ............. Mr. Rangel ........................... X ........... .............

Mr. Crane .............................. ........... ........... ............. Mr. Stark .............................. X ........... .............

Mr. Shaw ............................... ........... X ............. Mr. Matsui ............................ X ........... .............

Mrs. Johnson ......................... ........... X ............. Mr. Coyne ............................. ........... ........... .............

Mr. Houghton ........................ ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Herger ............................. ........... X ............. Mr. Cardin ............................ X ........... .............

Mr. McCrery ........................... ........... X ............. Mr. McDermott ..................... X ........... .............

Mr. Camp .............................. ........... X ............. Mr. Kleczka ........................... X ........... .............

Mr. Ramstad ......................... X ........... ............. Mr. Lewis (GA) ..................... X ........... .............

Mr. Nussle ............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. McNulty .......................... ........... ........... .............

Ms. Dunn .............................. ........... X ............. Mr. Jefferson ........................ ........... ........... .............

Mr. Collins ............................ X ........... ............. Mr. Tanner ............................ X ........... .............

Mr. Portman .......................... ........... X ............. Mr. Becerra .......................... X ........... .............

Mr. English ........................... ........... X ............. Mrs. Thurman ....................... X ........... .............

Mr. Watkins ........................... ........... X ............. Mr. Doggett .......................... X ........... .............

Mr. Hayworth ......................... ........... X ............. Mr. Pomeroy ......................... X ........... .............

Mr. Weller .............................. ........... X .............

Mr. Hulshof ........................... ........... X .............

Mr. McInnis ........................... ........... X .............

Mr. Lewis (KY) ...................... ........... X .............

70

Representative Yea Nay Present Representative Yea Nay Present

Mr. Foley ............................... ........... X .............

Mr. Brady .............................. ........... X .............

Mr. Ryan ............................... ........... X .............

An amendment by Mr. Stark, which would increase funding of the child care development bock grant by $11.25 billion over 5

years, was defeated by a roll call vote of 13 yeas to 22 nays. The

vote was as follows:

Representative Yea Nay Present Representative Yea Nay Present

Mr. Thomas ........................... ........... X ............. Mr. Rangel ........................... X ........... .............

Mr. Crane .............................. ........... ........... ............. Mr. Stark .............................. X ........... .............

Mr. Shaw ............................... ........... X ............. Mr. Matsui ............................ X ........... .............

Mrs. Johnson ......................... ........... X ............. Mr. Coyne ............................. X ........... .............

Mr. Houghton ........................ ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Herger ............................. ........... X ............. Mr. Cardin ............................ X ........... .............

Mr. McCrery ........................... ........... X ............. Mr. McDermott ..................... ........... ........... .............

Mr. Camp .............................. ........... X ............. Mr. Kleczka ........................... X ........... .............

Mr. Ramstad ......................... ........... X ............. Mr. Lewis (GA) ..................... ........... ........... .............

Mr. Nussle ............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... ........... ............. Mr. McNulty .......................... X ........... .............

Ms. Dunn .............................. ........... X ............. Mr. Jefferson ........................ ........... ........... .............

Mr. Collins ............................ ........... X ............. Mr. Tanner ............................ X ........... .............

Mr. Portman .......................... ........... X ............. Mr. Becerra .......................... X ........... .............

Mr. English ........................... ........... X ............. Mrs. Thurman ....................... X ........... .............

Mr. Watkins ........................... ........... X ............. Mr. Doggett .......................... X ........... .............

Mr. Hayworth ......................... ........... X ............. Mr. Pomeroy ......................... X ........... .............

Mr. Weller .............................. ........... X .............

Mr. Hulshof ........................... ........... X .............

Mr. McInnis ........................... ........... X .............

Mr. Lewis (KY) ...................... ........... X .............

Mr. Foley ............................... ........... X .............

Mr. Brady .............................. ........... X .............

Mr. Ryan ............................... ........... X .............

An amendment by Mr. Levin, which would replace the case-load

reduction credit with an enhanced employment credit, was defeated

by a roll call vote of 15 yeas to 20 nays. The vote was as follows:

Representative Yea Nay Present Representative Yea Nay Present

Mr. Thomas ........................... ........... X ............. Mr. Rangel ........................... X ........... .............

Mr. Crane .............................. ........... ........... ............. Mr. Stark .............................. X ........... .............

Mr. Shaw ............................... ........... X ............. Mr. Matsui ............................ X ........... .............

Mrs. Johnson ......................... ........... ........... ............. Mr. Coyne ............................. X ........... .............

Mr. Houghton ........................ ........... ........... ............. Mr. Levin .............................. X ........... .............

Mr. Herger ............................. ........... X ............. Mr. Cardin ............................ X ........... .............

Mr. McCrery ........................... ........... X ............. Mr. McDermott ..................... X ........... .............

Mr. Camp .............................. ........... X ............. Mr. Kleczka ........................... X ........... .............

Mr. Ramstad ......................... ........... X ............. Mr. Lewis (GA) ..................... X ........... .............

Mr. Nussle ............................. ........... ........... ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. McNulty .......................... X ........... .............

Ms. Dunn .............................. ........... X ............. Mr. Jefferson ........................ ........... ........... .............

Mr. Collins ............................ ........... X ............. Mr. Tanner ............................ X ........... .............

Mr. Portman .......................... ........... X ............. Mr. Becerra .......................... X ........... .............

Mr. English ........................... ........... X ............. Mrs. Thurman ....................... X ........... .............

Mr. Watkins ........................... ........... X ............. Mr. Doggett .......................... ........... ........... .............

Mr. Hayworth ......................... ........... X ............. Mr. Pomeroy ......................... X ........... .............

Mr. Weller .............................. ........... X .............

Mr. Hulshof ........................... ........... X .............

Mr. McInnis ........................... ........... X .............

Mr. Lewis (KY) ...................... ........... X .............

Mr. Foley ............................... ........... X .............

Mr. Brady .............................. ........... X .............

Mr. Ryan ............................... ........... X .............

71

An amendment by Mr. Becerra, which would remove the fiveyear ban from current law that prevents States from using Federal

TANF funds to serve legal immigrants of the United States, was

defeated by a roll call vote of 15 yeas to 22 nays. The vote was as

follows:

Representative Yea Nay Present Representative Yea Nay Present

Mr. Thomas ........................... ........... X ............. Mr. Rangel ........................... X ........... .............

Mr. Crane .............................. ........... ........... ............. Mr. Stark .............................. X ........... .............

Mr. Shaw ............................... ........... X ............. Mr. Matsui ............................ X ........... .............

Mrs. Johnson ......................... ........... X ............. Mr. Coyne ............................. X ........... .............

Mr. Houghton ........................ ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Herger ............................. ........... X ............. Mr. Cardin ............................ X ........... .............

Mr. McCrery ........................... ........... X ............. Mr. McDermott ..................... X ........... .............

Mr. Camp .............................. ........... X ............. Mr. Kleczka ........................... ........... ........... .............

Mr. Ramstad ......................... ........... X ............. Mr. Lewis (GA) ..................... X ........... .............

Mr. Nussle ............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. McNulty .......................... X ........... .............

Ms. Dunn .............................. ........... X ............. Mr. Jefferson ........................ ........... ........... .............

Mr. Collins ............................ ........... X ............. Mr. Tanner ............................ X ........... .............

Mr. Portman .......................... ........... X ............. Mr. Becerra .......................... X ........... .............

Mr. English ........................... ........... X ............. Mrs. Thurman ....................... X ........... .............

Mr. Watkins ........................... ........... X ............. Mr. Doggett .......................... X ........... .............

Mr. Hayworth ......................... ........... ........... ............. Mr. Pomeroy ......................... X ........... .............

Mr. Weller .............................. ........... X .............

Mr. Hulshof ........................... ........... X .............

Mr. McInnis ........................... ........... X .............

Mr. Lewis (KY) ...................... ........... X .............

Mr. Foley ............................... ........... X .............

Mr. Brady .............................. ........... X .............

Mr. Ryan ............................... ........... X .............

An amendment by Mr. Rangel, which would make Puerto Rico,

the Virgin Islands, and Guam eligible for the supplemental grants,

contingency funds, and mandatory child care under TANF, was defeated by a roll call vote of 16 yeas to 23 nays. The vote was as

follows:

Representative Yea Nay Present Representative Yea Nay Present

Mr. Thomas ........................... ........... X ............. Mr. Rangel ........................... X ........... .............

Mr. Crane .............................. ........... ........... ............. Mr. Stark .............................. X ........... .............

Mr. Shaw ............................... ........... X ............. Mr. Matsui ............................ X ........... .............

Mrs. Johnson ......................... ........... X ............. Mr. Coyne ............................. X ........... .............

Mr. Houghton ........................ ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Herger ............................. ........... X ............. Mr. Cardin ............................ X ........... .............

Mr. McCrery ........................... ........... X ............. Mr. McDermott ..................... X ........... .............

Mr. Camp .............................. ........... X ............. Mr. Kleczka ........................... X ........... .............

Mr. Ramstad ......................... ........... X ............. Mr. Lewis (GA) ..................... X ........... .............

Mr. Nussle ............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. McNulty .......................... X ........... .............

Ms. Dunn .............................. ........... X ............. Mr. Jefferson ........................ ........... ........... .............

Mr. Collins ............................ ........... X ............. Mr. Tanner ............................ X ........... .............

Mr. Portman .......................... ........... X ............. Mr. Becerra .......................... X ........... .............

Mr. English ........................... ........... X ............. Mrs. Thurman ....................... X ........... .............

Mr. Watkins ........................... ........... X ............. Mr. Doggett .......................... X ........... .............

Mr. Hayworth ......................... ........... X ............. Mr. Pomeroy ......................... X ........... .............

Mr. Weller .............................. ........... X .............

Mr. Hulshof ........................... ........... X .............

Mr. McInnis ........................... ........... X .............

Mr. Lewis (KY) ...................... ........... X .............

Mr. Foley ............................... ........... X .............

Mr. Brady .............................. ........... X .............

Mr. Ryan ............................... ........... X .............

72

An amendment by Mr. Kleczka, which would prohibit the use of

Federal TANF funds for contracting with entities that employ

workers located outside the United States, was defeated by a roll

call vote of 16 yeas to 22 nays. The vote was as follows:

Representative Yea Nay Present Representative Yea Nay Present

Mr. Thomas ........................... ........... X ............. Mr. Rangel ........................... X ........... .............

Mr. Crane .............................. ........... ........... ............. Mr. Stark .............................. X ........... .............

Mr. Shaw ............................... ........... X ............. Mr. Matsui ............................ X ........... .............

Mrs. Johnson ......................... ........... X ............. Mr. Coyne ............................. X ........... .............

Mr. Houghton ........................ ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Herger ............................. ........... X ............. Mr. Cardin ............................ X ........... .............

Mr. McCrery ........................... ........... X ............. Mr. McDermott ..................... X ........... .............

Mr. Camp .............................. ........... X ............. Mr. Kleczka ........................... X ........... .............

Mr. Ramstad ......................... ........... X ............. Mr. Lewis (GA) ..................... X ........... .............

Mr. Nussle ............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. McNulty .......................... X ........... .............

Ms. Dunn .............................. ........... X ............. Mr. Jefferson ........................ ........... ........... .............

Mr. Collins ............................ X ........... ............. Mr. Tanner ............................ X ........... .............

Mr. Portman .......................... ........... X ............. Mr. Becerra .......................... X ........... .............

Mr. English ........................... ........... X ............. Mrs. Thurman ....................... X ........... .............

Mr. Watkins ........................... ........... X ............. Mr. Doggett .......................... ........... ........... .............

Mr. Hayworth ......................... ........... X ............. Mr. Pomeroy ......................... X ........... .............

Mr. Weller .............................. ........... X .............

Mr. Hulshof ........................... ........... X .............

Mr. McInnis ........................... ........... X .............

Mr. Lewis (KY) ...................... ........... X .............

Mr. Foley ............................... ........... X .............

Mr. Brady .............................. ........... X .............

Mr. Ryan ............................... ........... X .............

IV. BUDGET EFFECTS OF THE BILL

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d)(2) of rule XIII of the Rules of the

House of Representatives, the following statement is made:

The Committee agrees with the estimate prepared by the Congressional Budget office (CBO), which is included below.

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, May 13, 2002.

Hon. WILLIAM ‘‘BILL’’ M. THOMAS,

Chairman, Committee on Ways and Means,

House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4090, the Personal Responsibility, Work, and Family Promotion Act of 2002.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contacts are Sheila Dacey and Leo

Lex.

Sincerely,

BARRY B. ANDERSON

(For Dan L. Crippen, Director).

Enclosure.

73

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 4090—Personal Responsibility, Work, and Family Promotion

Act of 2002

Summary: H.R. 4090 would reauthorize the Temporary Assistance for Needy Families (TANF) and child care entitlement to state

programs at current funding levels. It would increase funding for

some grants related to TANF and establish two new grants, but

also would reduce funding for other related grants. It would make

several changes to the child support enforcement program, including allowing the distribution to families of more collections from

child support payments and establishing a new program of fees.

Another provision would require the Social Security Administration

(SSA) to change its system of reviewing awards to certain disabled

adults in the Supplemental Security Income (SSI) program. Finally, it would provide states with new authority to run demonstration projects, providing that the projects may not increase federal

spending.

CBO estimates that H.R. 4090 would increase federal spending by $320 million in 2003 and by $1.2 billion over the 2003–2007 pe- riod. It also would reduce revenues by $20 million over the 2005– 2007 period. Because the bill would affect direct spending and revenues, pay-as-you-go procedures would apply. The bill would authorize $20 million in 2003 and $100 million

over the 2003–2007 period for a new program of grants promoting

fatherhood. CBO estimates that appropriations of the authorized

levels would result in insignificant outlays in 2003 and $70 million

over the 2003–2007 period.

The TANF grant program affords states broad flexibility to determine eligibility for benefits and to structure the programs offered

as part of a state’s family assistance program. Consequently, any

new requirements to the program as proposed by H.R. 4090 would

not be intergovernmental mandates as defined in the Unfunded

Mandates Reform Act (UMRA). However, the bill could significantly affect the way states administer the program and provide

benefits to beneficiaries and thus could increase costs in some

areas relative to what states would have spent if current law were

to be continued unchanged. H.R. 4090 contains no private-sector

mandates as defined in UMRA.

Estimated Cost to the Federal Government: The estimated budgetary impact of H.R. 4090 is shown in Table 1. The costs of this

legislation fall within budget functions 600 (income security) and

550 (health).

TABLE 1.—ESTIMATED BUDGETARY EFFECTS OF H.R. 4090, THE PERSONAL RESPONSIBILITY,

WORK, AND FAMILY PROMOTION ACT OF 2002

By fiscal year, in millions of dollars

2003 2004 2005 2006 2007

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Title I: TANF:

Authorization level ................................................................................ 20 20 20 20 20

Estimated outlays ................................................................................ 1 6 15 25 24

CHANGES IN DIRECT SPENDING

Title I: TANF:

Estimated budget authority ................................................................. 335 730 228 229 ¥84

74

TABLE 1.—ESTIMATED BUDGETARY EFFECTS OF H.R. 4090, THE PERSONAL RESPONSIBILITY,

WORK, AND FAMILY PROMOTION ACT OF 2002—Continued

By fiscal year, in millions of dollars

2003 2004 2005 2006 2007

Estimated outlays ................................................................................ 324 347 262 220 94

Title III: Child support:

Estimated budget authority ................................................................. ¥1 ¥60 20 45 78

Estimated outlays ................................................................................ ¥1 ¥60 25 54 78

Title V: Supplemental Security Income:

Estimated budget authority ................................................................. ¥3 ¥14 ¥30 ¥48 ¥65

Estimated outlays ................................................................................ ¥3 ¥14 ¥30 ¥48 ¥65

Total, direct spending

Estimated budget authority ................................................................. 331 656 218 226 ¥71

Estimated outlays ................................................................................ 320 273 257 226 107

CHANGES IN REVENUES

Title III: Child support

Estimated revenues .............................................................................. 0 0 ¥2 ¥6 ¥12

1 Note.—Less than $500,000.

Basis of Estimate: For this estimate, CBO assumes that the bill

will be enacted by the end of fiscal year 2002, and that the

amounts authorized in title I will be appropriated for each year.

Most of the bill’s budgetary effects, however, would come from

changes in direct spending. In addition, enacting the bill would reduce revenues (beginning in 2005).

Spending subject to appropriation

Section 119 would establish several new programs designed to

promote fatherhood including activities to improve parenting skills,

promote marriage, and improve outcomes for children. It would authorize $20 million to be appropriated in each of fiscal years 2003

through 2007, and at least 85 percent of the funds would have to

be used for a program of competitive grants.

Section 119 would establish a program of competitive grants to

public and nonprofit community entities for projects designed to

promote fatherhood. Grantees would be required to put up 10 percent or 20 percent of the costs of the program, although exceptions

would be made for certain smaller grants. In addition, it would

allow the Secretary of Health and Human Services to carry out

projects to promote fatherhood including collecting and disseminating information, developing, promoting and distributing media

campaigns, providing technical assistance, and conducting research; to make grants to national fatherhood promotion organizations to establish two multicity, multistate projects; and to conduct

evaluations of fatherhood projects.

CBO estimates that spending would initially be slow until programs are established, but would speed up gradually in succeeding

years. We estimate that outlays would total $70 million over the

2003–2007 period.

Direct spending and revenues

Title I: Temporary Assistance for Needy Families. H.R. 4090

would reauthorize TANF through 2007 at the current level of funding of $16.6 billion. The bill would not alter current requirements

on states to spend at a certain percentage of their historic spending

level (80 percent, or 75 percent if the state meets the work particiVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00074 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
75

pation requirements) and to limit assistance paid with federal

funds to five years. It would significantly alter the work participation requirements and the funding of some grants related to TANF.

In addition, it would make several other changes to program rules

and reporting requirements (see Table 2).

TABLE 2.—DETAILED EFFECTS OF H.R. 4090, THE PERSONAL RESPONSIBILITY, WORK, AND FAMILY

PROMOTION ACT OF 2002, TITLE I

By fiscal year, in millions of dollars

2003– 2004 2005 2006 2007 2003– 2007

DIRECT SPENDING

Section 103:

Eliminate out-of-wedlock grants:

Estimated budget authority ............................ ¥100 ¥100 ¥100 ¥100 ¥100 ¥500

Estimated outlays ........................................... 0 ¥42 ¥57 ¥94 ¥103 ¥296

Healthy marriage promotion grant:

Budget authority: ............................................ 100 100 100 100 100 500

Estimated outlays ........................................... 1 28 74 124 122 349

Section 104:

Continue supplemental grant at $319 million

through 2006:

Budget authority ............................................. 319 319 319 319 0 1,276

Estimated outlays ........................................... 128 191 287 351 144 1,101

Section 105:

Reduce bonuses for high-performing states:

Estimated budget authority ............................ ¥100 300 ¥200 ¥200 ¥200 ¥400

Estimated outlays ........................................... 0 ¥42 ¥57 ¥94 ¥103 ¥296

Section 106:

Modify Contingency Fund:

Estimated budget authority ............................ 16 10 9 10 13 58

Estimated outlays ........................................... 6 7 9 11 14 47

Section 107:

Increase transfer authority to SSBG:

Budget authority ............................................. 0 0 0 0 0 0

Estimated outlays ........................................... 181 145 89 ¥172 ¥96 146

Section 115:

Secretary’s fund for research, demonstration, and

national studies:

Budget authority ............................................. 102 102 102 102 102 510

Estimated outlays ........................................... 10 61 110 117 111 410

Effect of title I on food stamps:

Estimated budget authority ..................................... ¥2 ¥1 ¥2 ¥2 1 ¥6

Estimated outlays .................................................... ¥2 ¥1 ¥2 ¥2 1 ¥6

Interactions, title I:

Budget authority ...................................................... 0 0 0 0 0 0

Estimated outlays .................................................... 0 0 ¥190 ¥21 4 ¥207

Total, title I:

Temporary assistance for needy families:

Estimated budget authority ............................ 337 731 230 231 ¥85 1,444

Estimated outlays ........................................... 326 348 264 222 93 1,254

Effect on food stamps:

Estimated budget authority ............................ ¥2 ¥1 ¥2 ¥2 1 ¥6

Estimated outlays ........................................... ¥2 ¥1 ¥2 ¥2 1 ¥6

Net effect, title I:

Estimated budget authority ............................ 335 730 228 229 ¥84 1,438

Estimated outlays ........................................... 324 347 262 220 94 1,248

Note.—Components may not sum to totals because of rounding.

State Family Assistance Grant. Section 102 would extend the

state family assistance grant through 2007 at the current funding

level of $16.6 billion. CBO already assumes funding at that level

in its baseline in accordance with rules for constructing baseline

76

projections, as set forth in section 257 of the Balanced Budget and

Emergency Deficit Control Act of 1985 (Deficit Control Act).

Promotion of Family Formation and Healthy Marriage. Section

103 would eliminate one grant program related to out-of-wedlock

birth rates and replace it with another directed at promoting marriage. CBO projects funding for out-of-wedlock birth grants at $100

million annually in accordance with section 257 of the Deficit Control Act. CBO estimates that eliminating the grant program would

reduce outlays by $296 million over the 2004–2007 period. The impact of the reduction in funding on outlays is delayed (no effect in

2003) because the grants are awarded in the last days of the fiscal

year.

Section 103 also would establish a new competitive grant to

states, territories, and tribes for the development and implementation of programs to promote and support married, two-parent families. The bill appropriates $100 million annually for grants that

could be used for a variety of activities including public advertising

campaigns, education programs on topics related to marriage, and

programs to reduce disincentives to marriage in means-tested assistance programs. The grants could be used to cover up to half the

cost of the new programs. CBO expects grants would be spent slowly in the first few years because the Department of Health and

Human Services would need to set up a system for awarding grants

and states would need to set up programs to use the funds. CBO

estimates states would spend $1 million in 2003 and $349 million

over the 2003–2007 period.

Supplemental Grants. Section 104 would extend the supplemental grants for population increases through 2006 at the 2002

funding level of $319 million. Current law specifies that these

grants should not be assumed to continue in baseline projections

after 2002, overriding the continuation rules specified in section

257 of the Deficit Control Act. Seventeen states that had lowerthan-average TANF grants per poor person or had increasing populations would be eligible for supplemental grants. Because many

states have unspent balances from prior-year TANF grants, CBO

assumes that states would not spend the new funds quickly. CBO

estimates that states would spend $128 million in 2003 and $1.1

billion over the 2003–2007 period.

Bonuses for High-Performing States. Section 105 would reduce

funding for a bonus to high-performing states in 2003 and refocus

the bonus toward rewarding performance in improving job outcomes in 2004. The bonus in current law rewards states for moving

TANF recipients into jobs, providing support for low-income working families, and increasing the percentage of children who reside

in married-couple families. Current law provides $1 billion for bonuses, averaging $200 million annually, over the 1999–2003 period.

CBO assumes in its baseline projections that funding will continue

at $200 million annually in accordance with section 257 of the Deficit Control Act. The revised bonus—the Bonus to Reward Employment Achievement—would be focused on rewarding success in employment entry, job retention, and increased earnings for families

receiving assistance.

Section 105 would lower projected budget authority by $100 million in 2003 and $200 million each year from 2004 through 2007,

but provide $500 million in new budget authority in 2004, for a net

77

reduction of $400 million over the five-year period. Because the bonuses are usually granted in the following fiscal year and many

states have prior-year balances of TANF funds that they can use

to replace any grant reductions, TANF spending would fall by only

$296 million over the 2005–2007 period.

Contingency Fund. Section 106 would expand the Contingency

Fund for State Welfare Programs. The contingency fund provides

additional federal funds to states with high and increasing unemployment rates or significant growth in Food Stamp caseloads.

States are required to maintain state spending at 100 percent of

their historical level and to match federal payments. The bill would

allow states to count more of their spending toward meeting the

state spending requirement and lower the matching requirements

of states that qualify for the fund for only part of a year. Based

on CBO’s projections of unemployment, Food Stamp participation,

and state TANF spending, CBO estimates that states would use an

additional $6 million from the contingency fund for 2003 and $47

million over the 2003–2007 period.

Increased Transfer Authority to Social Services Block Grant

(SSBG). Section 107 would raise the percentage of the TANF grant

that states could transfer to SSBG from 4.25 percent to 10 percent.

States have had the authority to transfer up to 10 percent from

1996 to 2002, but that is assumed to fall to 4.25 percent in 2003

and after. In recent years, states have transferred about $1 billion

annually. Maintaining the transfer authority at the higher level

would make it easier for states to spend their TANF grants and

would speed up spending relative to current law. Based on recent

state transfers, CBO expects that states would transfer an additional $600 million under the provision, but because some of this

money would have been spent within the TANF program anyway,

only $181 million of additional spending would occur in 2003. The

accelerated spending would be offset by reduced spending in later

years, starting in 2006. Overall, we estimate that the provision

would increase spending by $146 million over the 2003–2007 period.

Work Participation Requirements. Section 110 would require

states to have an increasing percentage of TANF recipients participate in work activities while receiving cash assistance. The bill

would maintain current penalties for the failure to meet those requirements. These penalties can total up to 5 percent of the TANF

block grant amount for the first failure to meet work requirements

and increase for each subsequent failure. CBO assumes that no

state would be subject to financial penalty for failing to meet the

new requirements.

The bill would require states to engage an increasing share of

families receiving TANF in activities for 40 hours a week with at

least 24 of those hours in a work activity. Work activities would be

limited to employment (subsidized or unsubsidized), on-the-job

training, supervised work experience (including entrepreneurship

or microenterprise activities), or supervised community service. The

required participation rate would rise by 5 percentage points a year

from 50 percent in 2003 to 70 percent in 2007. Certain families

would not be included in the calculation: families without an adult

or teen head of household, under sanction for three months or less,

with a child under age one (at state option), or in the first month

78

of assistance (at state option). The bill would eliminate a requirement in current law that sets even higher participation rates for

two-parent families and would allow a broader range of activities

to count as work for up to three or four months. Finally, the bill

would alter a provision that reduces the participation rates of

states that have experienced caseload reductions since 1995.

Because the new requirements would be difficult for states to

meet, CBO expects states would need to employ strategies such as

moving nonworking families into separate state programs to effectively reduce the new requirements. For example, under current

law, states that fail to meet work requirements, particularly the

higher requirements applying to two-parent families, set up separate state programs to serve those families. States can count funds

they spend in separate state programs toward their maintenance

of effort requirement in TANF, but families served under those programs do not count in the work participation rate.

Secretary’s Fund for Research, Demonstration, and National

Studies. Section 115 would make funds available to the Secretary

of Health and Human Services to conduct and support research

and demonstration projects and provide technical assistance. The

funds would be primarily spent on activities to promote marriage.

The program would be funded at $102 million annually over the

2003–2007 period with $2 million set aside each year to fund demonstration projects on child welfare services to tribal families.

Based on rates of spending in similar programs, CBO estimates

that spending would increase by $10 million in 2003 and $410 million over the 2003–2007 period.

Effect of title 1 provisions on the Food Stamp Program. Four provisions of title I would affect the level of funding for the TANF program, which in turn could affect the level of cash benefits provided

under that program. Provisions to eliminate the out-of-wedlock

birth bonus and reduce the bonus for high-performing states would

lower funding while provisions to extend the supplemental grant

and expand the contingency fund would increase funding. On balance, those provisions would increase funding from 2003 through

2006 and decrease funding in 2007. CBO expects some of the additional (or reduced) funding provided would be used to increase (or

decrease) benefits to families that also receive food stamps. Additional TANF income would reduce Food Stamp benefits, so we expect small savings in the Food Stamp program during the 2003–

2006 period and small costs in 2007, with total savings of $6 million over the five years.

Title II: Child Care. H.R. 4090 would amend the child care entitlements to states program by appropriating $2.717 billion each

year over the 2003–2007 period. CBO already assumes funding at

that level in its baseline, as required by section 257 of the Deficit

Control Act.

The child care entitlements to states program provides funding

to states for child care subsidies to low-income families and other

activities. This is one of the two federal funding programs for child

care subsidies within a program grouping often referred to as the

Child Care and Development Fund. Spending for the child care entitlements to states program is categorized as mandatory spending.

The other program, the child care development block grant proVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00078 Fmt 6659 Sfmt 6602 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
79

gram, is classified as discretionary spending (i.e., subject to annual

appropriation), but that program is not affected by H.R. 4090.

Title III: Child Support. H.R. 4090 would change many aspects

of the operation and financing of the child support program (see

Table 3). It would allow the distribution to families of more collections from child support payments and establish a new program of

fees. It also would require states to periodically update child support orders and expand the use of certain enforcement tools.

Distribution of More Child Support to Families. Sections 301 and

302 would allow states to share more child support collections with

current and former recipients of TANF, reducing the amount the

federal and state governments would recoup from previous TANF

benefit payments. The bill would allow states to implement the

new policies beginning in October 2004.

Collections for Current TANF Recipients. When a family applies

for TANF, it assigns to the state any rights the family has to child

support collections. While the family receives assistance, the state

uses any collections it receives to reimburse itself and the federal

government for TANF payments. States may choose to give some

of the child support collected to families, but states must finance

those payments out of their share of collections.

Section 301 would allow states to increase the amount of child

support they pay to families receiving assistance and would not require the state to pay the federal government share on the increased payments. The payments would be in addition to any payments the state was making as of December 31, 2001. The bill limits the new payments to the greater of $100 or $50 more than the

state shares with families now. The state could not count the child

support as income in determining the families’ benefit under the

TANF program.

States with about 60 percent of child support collections shared

some of those collections with the family as of December 31, 2001.

Based on conversations with state child support officials and other

policy experts, CBO expects that about 20 percent of those states

would choose to increase the amount of child support they share

with families on assistance. In addition, we expect about half of

states that currently share nothing would institute a policy of sharing the first $50 collected. Those changes would be instituted slowly and would not be fully effective until 2007. Based on administrative data for child support, CBO expects that states eventually

would share about $100 million more with families annually. Using

an estimated federal share of collections of 55 percent, CBO estimates that federal offsetting receipts would fall by $30 million in

2005 and $135 million over the 2005–2007 period.

TABLE 3.—DETAILED EFFECTS OF H.R. 4090, THE PERSONAL RESPONSIBILITY, WORK, AND FAMILY

PROMOTION ACT OF 2002, TITLE III

By fiscal year, in millions of dollars

2003 2004 2005 2006 2007 2003–

2007

DIRECT SPENDING

Section 301:

Distribute more support to current TANF families:

Estimated budget authority ........................... 0 0 30 45 60 135

Estimated outlays ........................................... 0 0 30 45 60 135

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TABLE 3.—DETAILED EFFECTS OF H.R. 4090, THE PERSONAL RESPONSIBILITY, WORK, AND FAMILY

PROMOTION ACT OF 2002, TITLE III—Continued

By fiscal year, in millions of dollars

2003 2004 2005 2006 2007 2003–

2007

Effect on food stamps:

Estimated budget authority ........................... 0 0 ¥15 ¥20 ¥25 ¥60

Estimated outlays ........................................... 0 0 ¥15 ¥20 ¥25 ¥60

Effect on TANF:

Estimated budget authority ........................... 0 0 0 0 0 0

Estimated outlays ........................................... 0 0 5 9 0 14

Subtotal, section 301:

Estimated budget authority ........................... 0 0 15 25 3 75

Estimated outlays ........................................... 0 0 20 34 35 89

Section 302:

Distribute more support to former TANF famlies:

Estimated budget authority ........................... 0 0 75 115 160 350

Estimated outlays ........................................... 0 0 75 115 160 350

Effect on food stamps:

Estimated budget authority ........................... 0 0 ¥5 ¥10 ¥15 ¥30

Estimated outlays ........................................... 0 0 ¥5 ¥10 ¥15 ¥30

Subtotal, section 302:

Estimated budget authority ........................... 0 0 70 105 145 320

Estimated outlays ........................................... 0 0 70 105 145 320

Section 303:

Mandatory 3-year update of child support orders:

Estimated budget authority ........................... 0 2 14 14 12 42

Estimated outlays ........................................... 0 2 14 14 12 42

Child support collections:

Estimated budget authority ........................... 0 0 ¥6 ¥14 ¥20 ¥40

Estimated outlays ........................................... 0 0 ¥6 ¥14 ¥20 ¥40

Effect on food stamps:

Estimated budget authority ........................... 0 0 ¥1 ¥2 ¥3 ¥6

Estimated outlays ........................................... 0 0 ¥1 ¥2 ¥3 ¥6

Effect on Medicaid:

Estimated budget authority ........................... 0 0 ¥3 ¥8 ¥13 ¥24

Estimated outlays ........................................... 0 0 ¥3 ¥8 ¥13 ¥24

Subtotal, section 303:.

Estimated budget authority ........................... 0 2 4 ¥10 ¥24 ¥28

Estimated outlays ........................................... 0 2 4 ¥10 ¥24 ¥28

Section 304:

$25 annual fee for never-TANF cases with a collection:

Estimated budget authority ........................... 2 ¥42 ¥45 ¥47 ¥48 ¥180

Estimated outlays 2 ¥42 ¥45 ¥47 ¥48 ¥180

Section 306:

Use of new hire directory for unemployment compensation:

Estimated budget authority ........................... 0 ¥12 ¥15 ¥19 ¥20 ¥66

Estimated outlays ........................................... 0 ¥12 ¥15 ¥19 ¥20 ¥66

Section 308:

Reduced threshold for passport denial collections:

Estimated budget authority ........................... 0 ¥2 ¥2 ¥2 ¥2 ¥8

Estimated outlays 0 ¥2 ¥2 ¥2 ¥2 ¥8

Section 311:

SSA benefit match:

Estimated budget authority ........................... ¥3 ¥6 ¥7 ¥7 ¥8 ¥31

Estimated outlays ........................................... ¥3 ¥6 ¥7 ¥7 ¥8 ¥31

Title III total, direct spending:

Estimated budget authority ........................... ¥1 ¥60 20 45 78 82

Estimated outlays ........................................... ¥1 ¥60 25 54 78 96

REVENUES

Use of new hire directory for unemployment compensation program:

Estimated revenues ................................................. 0 0 ¥2 ¥6 ¥12 ¥20

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Because additional child support income would reduce Food

Stamp benefits, CBO estimates savings in the Food Stamp program

totaling $15 million in 2005 and $60 million over the 2005–2007

period. In addition, the provision would have a small effect on the

rate of TANF spending. States could count new payments of child

support to families toward their maintenance of effort requirement

in TANF enabling them to accelerate their use of federal TANF

funds. Overall, the provision would increase estimated TANF outlays by $14 million over the 2003–2007 period.

Collections for Former TANF Recipients. When a family ceases to

receive public assistance, states continue to enforce the family’s

child support order. All amounts of child support collected on time

are sent directly to the family. However, both the government and

the family have a claim on collections of past-due child support:

The government claims the support owed for the period when the

family was on assistance, up to the amount of the assistance paid,

and the family claims the remainder.

Under section 302, the state would have the option of renouncing

its claim on any support collected on behalf of a former recipient

of TANF. Based on conversations with state child support officials

and other policy experts, CBO expects states with 20 percent of

child support collections would be interested in sharing all collections with former TANF recipients. Those changes would be instituted slowly and would not be fully effective until 2007. Based on

administrative data for child support, CBO expects that states

would eventually share about $300 million more with families annually. CBO estimates that federal offsetting receipts would fall by

$75 million in 2005 and $350 million over the 2005–2007 period.

CBO expects that one-third of the former TANF recipients with increased child support income would participate in the Food Stamp

program, and that Food Stamp savings would be $5 million in 2005

and $30 million over the 2005–2007 period.

Adjustment of Child Support Orders. Section 303 would require

states to adjust child support orders of families on TANF every

three years. States could use one of three methods to adjust orders:

Full review and adjustment, cost-of-living adjustment (COLA), or

automated adjustment. Under current law, nearly half of states

perform periodic adjustments. Most perform a full review and the

remainder apply a COLA. No state currently makes automated adjustments.

CBO estimates that there are 700,000 TANF recipients with

child support orders in states that do not periodically adjust orders

and one-third of those orders would be adjusted each year. CBO assumes half the states not already adjusting orders would choose to

perform full reviews and half would apply a COLA.

Full Review and Adjustment. When a state performs a full review of a child support order, it obtains current financial information from the custodial and noncustodial parents and determines

whether any adjustment in the amount of ordered child support is

indicated. The state also may revise an order to require the noncustodial parent to provide health insurance.

Based on evaluations of review and modification programs, CBO

estimates the average cost of a review would be about $180 with

the federal government paying 66 percent of such administrative

costs. The average adjustment to a child support order of a family

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on TANF would be $90 a month and about 18 percent of the orders

reviewed would be adjusted.

In addition, CBO expects some children would receive health insurance coverage from the noncustodial parent as a result of the

new reviews. CBO estimates 40 percent of orders with a monetary

adjustment would also be adjusted to include a requirement that

the noncustodial parent provide health insurance for their child

and that, in about half of those cases, such insurance would be provided. After the first few years, we assume newly provided medical

insurance would decline by half, because many families would have

already had such insurance recently added to their order.

Cost-of-Living Adjustment. When a state makes a cost-of-living

adjustment it applies a percentage increase reflecting the rise in

the cost of living to every order, regardless of how the financial circumstances of the individuals may have changed. The process is

considerably less cumbersome and expensive than a full review but

also results in smaller adjustments on average. Based on recent research on COLA programs, CBO estimates that the average cost

would be $11 per case modified, and the average adjustment to a

support order would be $6 per month. There would be no additional

health insurance coverage.

Summary. Under either method of adjustment, CBO expects any

increased collections for a family would continue for up to three

years. While a family remains on TANF, the state would keep all

the increased collections to reimburse itself and the federal government for welfare payments. The states would pay any increased

collections stemming from reviews of child support orders to families once they leave assistance. That additional child support income for former recipients would result in savings in the Food

Stamp program.

Overall, CBO expects the federal share of child support adminis- trative costs to rise by $2 million in 2004, $14 million in 2005, and

$42 million over the 2004–2007 period. Federal collections would increase by $6 million in 2005 and $40 million over the 2005–2007

period. Finally Food Stamp and Medicaid savings would total $6

million and $24 million respectively over the 2005–2007 period.

Fee for Never-TANF Cases. Section 304 would establish a $25 annual fee for individuals who receive child support services and who

had at least $500 of collections in a year. The fee would be imposed

only if the family had never received TANF and would be retained

out of the child support collected. The provision would be effective

beginning October 1, 2003.

Based on administrative data and information from state child

support officials, CBO assumes three million cases could be subject

to a fee in 2004 resulting in collections of $75 million, with the federal government retaining 66 percent. CBO reduced those expected

collections by 15 percent to account for small administrative inefficiencies and fees that are already being collected. Based on recent

growth levels and trends in the program, CBO estimates the federal share of collections would total $42 million in 2004 and $182

million over the 2004–2007 period. In addition, CBO estimates the

administrative costs to implement a fee system would be $3 million

in 2003 and the federal government would pay $2 million.

Use of New Hire Information. Section 306 would allow states, beginning in fiscal year 2004, to access information in the national

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database of new hires to help detect fraud in the unemployment

compensation system. Currently, most states may access the information that they send to the national registry. However, without

access to the national information, a state may not receive important data regarding recent hires by national corporations that may

report in other states. Only a few states have examined potential

savings that could be realized if they had access to the national

data, and their estimates are small—less than 0.1 percent of total

outlays. Nevertheless, states generally believe that access to the

national data would be a valuable tool in detecting fraud earlier,

as the information on new hires is more current than that contained in quarterly wage reports on which many states now rely.

Based on information provided by the National Association of

State Workforce Agencies, CBO estimates that about 40 percent of

the states would make use of the national information in the year

that it became available, and that another 40 percent would take

advantage the national information within the next few years. CBO

estimates that this proposal would result in a reduction of $66 million in spending for unemployment compensation over the 2004– 2007 period. CBO assumes this reduction in spending would lead

states to reduce their unemployment taxes. CBO estimates that

such revenues would fall by $20 million over the 2004–2007 period, so the net deficit reduction would amount to $46 million over that

period.

Denial of Passports. Under current law, the State Department

denies a request for a passport for a non-custodial parent if he or

she owes more than $5,000 in past-due child support. Section 307

would lower that threshold and deny a passport to a noncustodial

parent owing $2,500 or more. Generally, when a noncustodial parent seeks to restore eligibility for a passport, he or she will arrange

to pay the past-due amount down to the threshold level.

The State Department currently denies about 15,000 passport requests annually. Data from the Department of Health and Human

Services shows there are 4.2 million noncustodial parents owing

more than $5,000 in past-due child support and an additional 1.0

million owing between $2,500 and $5,000. If noncustodial parents

owing between $2,500 and $5,000 apply for passports at the same

rate as those owing more than $5,000, then the proposal would

generate an additional 3,400 denials annually.

CBO assumes that 20 percent of noncustodial parents who have

a passport request denied would make a payment to get their passport rather than just doing without one. (In a study by the State

Department, for 85 percent of applications that were denied due to

child support arrears, passports were not issued within the next

three months.) A noncustodial parent owing more than $5,000

would have to pay an additional $2,500 to receive a passport. On

average, a noncustodial parent owing between $2,500 and $5,000

would have to pay $1,250 to receive a passport. As a result, CBO

estimates the policy would result in new payments of child support

of about $8 million annually. About one-third of those payments

would be on behalf of current and former welfare families and

would be retained by the government as reimbursement for welfare

benefits. The federal share of such collections would be $2 million

a year, beginning in fiscal year 2004, and $8 million over the 2004–

2007 period.

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Improved Debt Collection: SSA Benefit Match. Section 310 would

allow states to collect past-due child support by withholding Social

Security, Black Lung, and Railroad Retirement payments. Because

parents affected by the legislation are generally younger than 62,

we assume that most of them receive benefits under the Disability

Insurance (DI) program rather than the retirement or survivors

programs. The Debt Collection Improvement Act of 1996 limits the

amount that can be withheld annually from an individual’s Social

Security check to the lesser of any amount over $9,000 or 15 percent of benefits.

Based on an analysis done by the Treasury Department, CBO estimates that 50,000 beneficiaries a month could be subject to an

offset. Based on states’ current use of administrative offsets of

other federal programs, we estimate two-thirds of those beneficiaries would potentially have their checks offset. On average,

CBO estimates that the offsets would amount annually to $1,700

by 2007 and could potentially yield an estimated $57 million in collections for child support from Social Security payments.

CBO estimates that the additional collections under section 310

would be only 40 percent of the potential collections because of several factors. First, some of this money may have been collected anyway through other enforcement tools, such as offsets currently applied to federal tax refunds. Second, noncustodial parents are

younger than average DI recipients, and younger men receive lower

DI benefits than older men. Third, children of DI recipients are entitled to a benefit from Social Security that averages more than

$2,000 annually, and some states consider those benefits in determining the amount of child support owed by the noncustodial parent. Fourth, in some cases, the estimated offset will exceed the

amount of arrears owed. Finally, CBO expects a small percentage

of all noncustodial parents owing past-due support would slip

through the administrative process. The estimated $23 million in child support in 2007 would result in a net increase in federal offsetting receipts of about $8 million.

The estimate assumes 60 percent of collections would be on behalf

of families that received or formerly received cash assistance from

TANF. The federal share of TANF collections is 55 percent.

The provision would be effective October 1, 2002, but CBO assumes that the program would take several months to establish.

Increases in DI benefits would result in higher offsetting receipts

over time, rising from $6 million in 2004 to $8 million in 2007, totaling $31 million over the 2003–2007 period. Receipts from offsets

of Black Lung and Railroad Retirement benefits would be insignificant.

Title V: Supplemental Security Income. Title V would require the

Social Security Administration to conduct reviews of initial decisions to award SSI benefits to certain disabled adults. The legislation mandates that the agency review at least 20 percent of all favorable adult disability determinations made by state-level Disability Determination Service (DDS) offices in 2003. Under the legislation, the agency must review at least 40 percent of the adult

disability awards made in 2004 and at least half of the awards

granted in 2005 and beyond.

CBO anticipates state DDS offices will approve between 350,000

and 400,000 adult disability applications for SSI benefits annually

85

between 2003 and 2007. Based on recent data for comparable reviews in the Social Security Disability Insurance program. CBO

projects that, by 2007, nearly 6,000 DDS awards will have been ultimately overturned, resulting in lower outlays for SSI and Medicaid (in most states, SSI eligibility automatically confers entitlement to Medicaid benefits). CBO estimates that title V would reduce SSI benefits by $1 million and Medicaid outlays by $2 million

in 2003. Over the 2003–2007 period, CBO estimates this provision

would lower outlays by $53 million and $107 million for SSI and

Medicaid, respectively.

Pay-as-you-go considerations: The Balanced Budget and Emergency Deficit Control Act sets up pay-as-you-go procedures for legislation affecting direct spending or receipts. The net changes in

outlays and governmental receipts that are subject to pay-as-yougo procedures are shown in the following table. For the purposes

of enforcing pay-as-you-go procedures, only the effects through fiscal year 2006 are counted.

By fiscal year, in millions of dollars

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Changes in outlays ........ 0 320 273 257 226 107 16 31 29 ¥1 ¥12

Changes in receipts ....... 0 0 0 ¥2 ¥6 ¥12 ¥15 ¥17 ¥20 ¥20 ¥21

Estimated impact on State, local, and tribal governments: Generally, conditions of federal assistance are not considered intergovernmental mandates as defined in the Unfunded Mandates Reform

Act. However, UMRA makes special provisions for identifying

intergovernmental mandates in large entitlement grant programs

(those that provide more than $500 million annually to state, local,

or tribal governments), including TANF. Specifically, if a legislative

proposal would increase the stringency of conditions of assistance,

or cap or decrease the amount of federal funding for the program,

such a change would be considered an intergovernmental mandate

only if the state, local or tribal government lacks authority to

amend its financial or programmatic responsibilities to continue

providing required services.

The TANF program affords states broad flexibility to determine

eligibility for benefits and to structure the programs offered as part

of the state’s family assistance program. Changes to the program

as embodied in H.R. 4090 could alter the way in which states administer the program and provide benefits. However, states would

continue to be able to make changes, for example adjusting eligibility criteria or the structure of programs, to avoid or offset any

additional costs. Because the TANF program affords states such

broad flexibility, new requirements would not be considered intergovernmental mandates as defined by UMRA.

The bill would provide additional funding and flexibility to states

and tribes, but it also would impose stricter requirements and decrease grants in some areas. The bill would maintain TANF funding at the fiscal year 2002 level through fiscal year 2007 and increase the amount of TANF funding that could be used for other

social services and child care and broaden the ability of states and

tribes to spend unused TANF funds in future years. At the same

time, however, it would increase work participation requirements,

86

change the basis for caseload reduction credits, and reduce bonus

grants.

TANF Grants and Program Flexibility. The bill would continue

TANF funding at the 2002 level. It also would continue a supplemental grant totaling $319 million annually through fiscal year

2006 for states with relatively low welfare spending per poor person and relatively high population growth.

The bill would make it easier for states to qualify for assistance

from the TANF Contingency fund during recessions and allow them

to receive reimbursement for certain child care expenditures. The

bill also would increase from 30 percent to 50 percent the amount

of TANF funds that could be transferred for Social Services Block

Grant or Child Care and Development Block Grant purposes and

would increase the limit of funds that may be specifically used for

SSBG purposes from 4.25 percent to 10 percent. Finally, the bill

would allow states and tribes to use excess TANF funds for services, not just benefits, provided under the TANF program in future

years.

Child Support. The bill would require states to conduct a mandatory review of child support cases every three years, resulting in

some level of net savings to states as a result of identifying noncustodial parents who owe child support. If states distribute to

families the portion of child support collections that they otherwise

would retain as reimbursement for benefits and services, this bill

would allow them to similarly distribute the federal portion.

Demonstration Projects and Waivers. The bill would extend demonstration projects related to children and family services and foster care, and it also would eliminate the limit on the number of

states that may receive grants for such demonstration projects. The

bill would authorize state demonstration projects for integrating

TANF and other social service programs and allow waivers to be

granted by the appropriate Secretary and the Director of the Office

of Management and Budget.

Work Participation. The bill would increase the minimum work

participation rate from 50 percent to 70 percent over a five-year period. To meet those requirements, 70 percent of families would

have to be engaged in work activities for at least 24 hours a week

by 2007. Current law requires a recipient to be engaged in work

activities for at least 20 hours per week, and there is a 50 percent

participation requirement. The increase of 4 hours per week could

require a modest increase in spending by states and tribes for administration, worker support activities, and child care. As the participation rates increase, states and tribes would have to direct

more resources toward programs such as administrative support,

transportation assistance, child care, and worker supervision to

comply with the 70 percent requirement. CBO estimates that the

costs of the work participation requirements would total about $3

billion in 2007 (and about $8 billion over the 2003–2007 period), assuming that caseloads remain around the current level.

While the bill would require a participant to engage in work activities for an average of 24 hours per week, it also would require

16 additional hours of participation in other qualified activities.

The bill does not specify the activities that could count for the final

16 hours, but the Secretary could limit these allowed activities in

future regulation. If states were required to support activities in

87

the 16 hours that are comparable in intensity to those in the first

24 hours, the estimated cost would rise to about $4 billion in 2007

(and about $10 billion over the 2003–2007 period), assuming that

caseloads remain around the current level.

Costs of this magnitude would result if states do not act to avoid

the tougher requirements by moving families to separate state programs or averting the requirements by some other means. In fact,

CBO expects that states will move many nonworking families into

separate state programs to reduce the work requirements and

avoid financial penalties.

The bill also would change the calculation of worker participation

credits for states whose caseload levels have declined significantly,

assuming the reduction is not the result of changing eligibility requirements. The base year for comparison of caseloads would shift

forward over time, rather than remaining static at the 1995 level.

States that have experienced caseload reductions of 60 percent or

more between 1995 and 2001 may qualify for a superachiever state

credit that would further reduce their minimum participation levels. This credit could offset the impact of stricter work requirements for qualified states.

Bonus Grants. The bill would eliminate an authorization for

bonus grants to states that decrease out-of-wedlock births (up to

$100 million authorized through 2002), but it also would appropriate $100 million annually for Healthy Marriage Promotion

grants. The bill would reduce by half (from $200 million to $100

million annually) bonus performance grants and refocus the basis

of their award after 2003 to employment entry, retention, and increased earnings.

Estimated impact on the private sector: H.R. 4090 contains no

private-sector mandates as defined in UMRA.

Previous CBO Estimate: On May 9, 2002, CBO transmitted a

cost estimate for H.R. 4092, as ordered reported by the House Committee on Education and the Workforce on May 2, 2002. That bill

contains similar provisions on work participation requirements in

TANF and the Bonus to Reward Employment Achievement. The

difference in CBO’s estimates of those provisions reflect slight differences in the two bills.

Estimate prepared by: Federal costs: Sheila Dacey—TANF and

Child Support; Christina Sadoti—Unemployment Compensation

and Child Welfare; Donna Wong—Child Care; Geoffrey Gerhardt—

Supplemental Security Income.

Impact on State, local, and tribal governments: Leo Lex.

Impact on the private sector: Kate Bloniarz.

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the

House of Representatives, the Committee states that the Committee bill results in direct spending of $1.2 billion over 5 years

and a decrease in revenues of $20 million over 5 years. This

amount is accommodated by the allocation to the Committee under

the Budget Resolution.

88

V. OTHER MATTERS REQUIRED TO BE DISCUSSED

UNDER THE RULES OF THE HOUSE

A. COMMITTEE MATTERS REQUIRED TO BE DISCUSSED UNDER THE

RULES OF THE HOUSE

In compliance with clause 3(c)(1) of rule XIII of the Rules of the

House of Representatives, the Committee reports that the need for

this legislation was confirmed by the oversight hearings of the Subcommittee on Human Resources. The hearings were as follows:

The Committee on Ways and Means held a hearing on March 12,

2002 to receive comments on the President’s Plan to Build on the

Successes of Welfare Reform. Testimony at the hearing was presented by Tommy Thompson, Secretary of the U.S. Department of

Health and Human Services. Secretary Thompson also testified before the Committee on February 6, 2002 on the President’s 2003

Budget Proposals, with a focus on welfare issues. On March 14,

2002, the Committee also held a hearing on the Administration’s

Health and Welfare Priorities (Serial 107–2)

The Subcommittee on Human Resources held a hearing on April

11, 2002 to receive comments on the welfare reform reauthorization

proposals. Testimony at the hearing was presented by the Administration and a total of 48 other program administrators, advocates,

researchers, and Members of the U.S. House of Representatives.

On April 2, 2002, the Committee conducted a field hearing in University Center, Michigan on Welfare Reform Success, which included testimony from Michigan Governor John Engler, a welfare

program administrator, former welfare recipients, and an employer

who has hired a number of former recipients to work for his company. On March 7, 2002, the Committee held a hearing on Implementation of Welfare Reform Work Requirements and Time Limits.

Several hearings also were held earlier in the 107th Congress on

welfare reform topics including Teen Pregnancy Prevention, Child

Support and Fatherhood Proposals, Welfare and Marriage Issues,

and Effects of the 1996 Welfare Reform Law. In the 106th Congress, the Committee held a number of hearings on welfare issues:

April 27, 1999 on Fatherhood (Serial 106–41); May 27, 1999 on the

Effects of Welfare Reform (Serial 106–9); November 15, 1999 field

hearing in Erie, Pennsylvania on Welfare Reform (Serial 106–47);

February 14, 2000 field hearing in Baltimore, Maryland on Welfare

Reform (Serial 106–87); February 27, 2000 on the Child Protection

Review System (Serial 106–84); March 23, 2000 on Child Protection

Issues (Serial 106–63); and July 20, 2000 on Increasing State Flexibility in Use of Federal Child Protection Funds (Serial 106–98).

Throughout the hearings, testimony was presented by Administration officials, academic witnesses, researchers, program administrators, and advocacy groups.

B. SUMMARY OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In compliance with clause 3(c)(4) of rule XIII of the Rules of the

House of Representatives, the Committee states that H.R. 4090 reauthorizes and makes improvements to the Temporary Assistance

for Needy Families program and other programs within the Committee’s jurisdiction. Through reporting requirements in the legislation, Congress and the Administration will be able to assess State

89

achievement of specified TANF program goals of: (1) providing assistance and services to needy families so that children may live in

their homes or those of relatives; (2) ending dependence of needy

families on government benefits and reducing poverty by promoting

job preparation, work and marriage; (3) reducing out-of-wedlock

pregnancies; and (4) encouraging the formation and maintenance of

healthy, two-parent married families and encourage responsible fatherhood.

C. CONSTITUTIONAL AUTHORITY STATEMENT

In compliance with clause 3(d)(1) of rule XIII of the Rules of the

House of Representatives, relating to Constitutional Authority, the

Committee states that the Committee’s action in reporting the bill

is derived from Article I of the Constitution, Section 8 (‘‘The Congress shall have power to lay and collect taxes, duties, imposts and

excises, to pay the debts and to provide for * * * the general Welfare of the United States * * * ’’).

D. INFORMATION RELATING TO UNFUNDED MANDATES

This information is provided in accordance with Section 423 of

the Unfunded Mandates Reform Act of 1995 (P.L. 104–4). According to the report of the Congressional Budget Office dated May 13,

2002: ‘‘The TANF grant program affords states broad flexibility to

determine eligibility for benefits and to structure the programs offered as part of a state’s family assistance program. Consequently,

any new requirements to the program as proposed by H.R. 4090

would not be intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA).’’ (Page 1)

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the

House of Representatives, changes in existing law made by the bill,

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics,

existing law in which no change is proposed is shown in roman):

SOCIAL SECURITY ACT

* * * * * * *

TITLE IV—GRANTS TO STATES FOR AID AND SERVICES TO

NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES

PART A—BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

SEC. 401. PURPOSE.

(a) IN GENERAL.—The purpose of this part is to øincrease¿ improve child well-being by increasing the flexibility of States in operating a program designed to—

(1) provide assistance and services to needy families so that

children may be cared for in their own homes or in the homes

of relatives;

90

(2) end the dependence of needy øparents on government

benefits¿ families on government benefits and reduce poverty by

promoting job preparation, work, and marriage;

* * * * * * *

(4) encourage the formation and maintenance of øtwo-parent

families¿ healthy, 2-parent married families, and encourage responsible fatherhood.

* * * * * * *

SEC. 402. ELIGIBLE STATES; STATE PLAN.

(a) IN GENERAL.—As used in this part, the term ‘‘eligible State’’ means, with respect to a fiscal year, a State that, during the 27-

month period ending with the close of the 1st quarter of the fiscal

year, has submitted to the Secretary a plan that the Secretary has

found includes the following:

(1) OUTLINE OF FAMILY ASSISTANCE PROGRAM.—

(A) GENERAL PROVISIONS.—A written document that outlines how the State intends to do the following:

(i) * * *

ø(ii) Require a parent or caretaker receiving assistance under the program to engage in work (as defined

by the State) once the State determines the parent or

caretaker is ready to engage in work, or once the parent or caretaker has received assistance under the

program for 24 months (whether or not consecutive),

whichever is earlier, consistent with section 407(e)(2).

ø(iii) Ensure that parents and caretakers receiving

assistance under the program engage in work activities in accordance with section 407.¿

(ii) Require a parent or caretaker receiving assistance

under the program to engage in work or alternative

self-sufficiency activities (as defined by the State), consistent with section 407(e)(2).

(iii) Require families receiving assistance under the

program to engage in activities in accordance with

family self-sufficiency plans developed pursuant to section 408(b).

* * * * * * *

ø(v) Establish goals and take action to prevent and

reduce the incidence of out-of-wedlock pregnancies,

with special emphasis on teenage pregnancies, and establish numerical goals for reducing the illegitimacy

ratio of the State (as defined in section

403(a)(2)(C)(iii)) for calendar years 1996 through

2005.¿

(v) Establish annual, specific numerical performance

goals, measures, measurement methodology, and plans

to improve outcomes with respect to each of the 4 program purposes described in section 401(a).

(vi) Describe any strategies the State may be undertaking to address—

(I) employment retention and advancement for

recipients of assistance under the program, including placement into high-demand jobs, consistent

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with the criteria used by the Secretary in establishing performance targets in regulations prescribed under section 403(a)(4)(B);

(II) efforts to reduce teen pregnancy;

(III) services for struggling and noncompliant

families, and for clients with special problems; and

(IV) program integration, including the extent to

which employment and training services under the

program are provided through the One-Stop Career Center System created under the Workforce Investment Act of 1998, and the extent to which

former recipients of such assistance have access to

additional core, intensive, or training services

funded through such Act.

ø(vi)¿ (vii) Conduct a program, designed to reach

State and local law enforcement officials, the education system, and relevant counseling services, that

provides education and training on the problem of

statutory rape so that teenage pregnancy prevention

programs may be expanded in scope to include men.

(viii) Encourage equitable treatment of married, 2-

parent families under the program referred to in clause

(i).

(B) SPECIAL PROVISIONS.— ø(i) The document shall indicate whether the State

intends to treat families moving into the State from

another State differently than other families under the

program, and if so, how the State intends to treat such

families under the program.¿

ø(ii)¿ (i) The document shall indicate whether the

State intends to provide assistance under the program

to individuals who are not citizens of the United

States, and if so, shall include an overview of such assistance.

ø(iii)¿ (ii) The document shall set forth objective criteria for the delivery of benefits and the determination

of eligibility and for fair and equitable treatment, including an explanation of how the State will provide

opportunities for recipients who have been adversely

affected to be heard in a State administrative or appeal process.

ø(iv) Not later than 1 year after the date of enactment of this section, unless the chief executive officer

of the State opts out of this provision by notifying the

Secretary, a State shall, consistent with the exception

provided in section 407(e)(2), require a parent or caretaker receiving assistance under the program who,

after receiving such assistance for 2 months is not exempt from work requirements and is not engaged in

work, as determined under section 407(c), to participate in community service employment, with minimum hours per week and tasks to be determined by

the State.¿

(iii) The document shall describe strategies and programs the State is undertaking to engage religious orVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00091 Fmt 6659 Sfmt 6603 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
92

ganizations in the provision of services funded under

this part and efforts related to section 104 of the Personal Responsibility and Work Opportunity

Reconcilation Act of 1996.

(iv) The document shall describe strategies to improve program management and performance.

* * * * * * *

(4) CERTIFICATION OF THE ADMINISTRATION OF THE PRO- GRAM.—A certification by the chief executive officer of the

State specifying which State agency or agencies will administer

and supervise the program referred to in paragraph (1) for the

fiscal year, which shall include assurances that local and tribal

governments and private sector organizations— (A) * * *

* * * * * * *

SEC. 403. GRANTS TO STATES.

(a) GRANTS.— (1) FAMILY ASSISTANCE GRANT.— (A) IN GENERAL.—Each eligible State shall be entitled to

receive from the Secretary, for each of fiscal years ø1996,

1997, 1998, 1999, 2000, 2001, and 2002¿ 2003 through

2007, a grant in an amount equal to the State family assistance grant payable to the State for the fiscal year. ø(B) STATE FAMILY ASSISTANCE GRANT DEFINED.—As

used in this part, the term ‘‘State family assistance grant’’ means the greatest of— ø(i) 1⁄3 of the total amount required to be paid to the

State under former section 403 (as in effect on September 30, 1995) for fiscal years 1992, 1993, and 1994

(other than with respect to amounts expended by the

State for child care under subsection (g) or (i) of

former section 402 (as so in effect));

ø(ii)(I) the total amount required to be paid to the

State under former section 403 for fiscal year 1994

(other than with respect to amounts expended by the

State for child care under subsection (g) or (i) of

former section 402 (as so in effect)); plus

ø(II) an amount equal to 85 percent of the amount

(if any) by which the total amount required to be paid

to the State under former section 403(a)(5) for emergency assistance for fiscal year 1995 exceeds the total

amount required to be paid to the State under former

section 403(a)(5) for fiscal year 1994, if, during fiscal

year 1994 or 1995, the Secretary approved under

former section 402 an amendment to the former State

plan with respect to the provision of emergency assistance; or

ø(iii) 4⁄3 of the total amount required to be paid to

the State under former section 403 (as in effect on

September 30, 1995) for the 1st 3 quarters of fiscal

year 1995 (other than with respect to amounts expended by the State under the State plan approved

under part F (as so in effect) or for child care under

subsection (g) or (i) of former section 402 (as so in efVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00092 Fmt 6659 Sfmt 6601 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
93

fect)), plus the total amount required to be paid to the

State for fiscal year 1995 under former section 403(l)

(as so in effect).

ø(C) TOTAL AMOUNT REQUIRED TO BE PAID TO THE STATE

UNDER FORMER SECTION 403 DEFINED.—As used in this

part, the term ‘‘total amount required to be paid to the

State under former section 403’’ means, with respect to a

fiscal year— ø(i) in the case of a State to which section 1108 does

not apply, the sum of— ø(I) the Federal share of maintenance assistance expenditures for the fiscal year, before reduction pursuant to subparagraph (B) or (C) of section 403(b)(2) (as in effect on September 30, 1995),

as reported by the State on ACF Form 231;

ø(II) the Federal share of administrative expenditures (including administrative expenditures

for the development of management information

systems) for the fiscal year, as reported by the

State on ACF Form 231;

ø(III) the Federal share of emergency assistance

expenditures for the fiscal year, as reported by the

State on ACF Form 231;

ø(IV) the Federal share of expenditures for the

fiscal year with respect to child care pursuant to

subsections (g) and (i) of former section 402 (as in

effect on September 30, 1995), as reported by the

State on ACF Form 231; and

ø(V) the Federal obligations made to the State

under section 403 for the fiscal year with respect

to the State program operated under part F (as in

effect on September 30, 1995), as determined by

the Secretary, including additional obligations or

reductions in obligations made after the close of

the fiscal year; and

ø(ii) in the case of a State to which section 1108 applies, the lesser of—

ø(I) the sum described in clause (i); or

ø(II) the total amount certified by the Secretary

under former section 403 (as in effect during the

fiscal year) with respect to the territory.

ø(D) INFORMATION TO BE USED IN DETERMINING

AMOUNTS.—

ø(i) FOR FISCAL YEARS 1992 AND 1993.—

ø(I) In determining the amounts described in

subclauses (I) through (IV) of subparagraph (C)(i)

for any State for each of fiscal years 1992 and

1993, the Secretary shall use information available as of April 28, 1995.

ø(II) In determining the amount described in

subparagraph (C)(i)(V) for any State for each of

fiscal years 1992 and 1993, the Secretary shall

use information available as of January 6, 1995.

ø(ii) FOR FISCAL YEAR 1994.—In determining the

amounts described in subparagraph (C)(i) for any

94

State for fiscal year 1994, the Secretary shall use information available as of April 28, 1995.

ø(iii) FOR FISCAL YEAR 1995.— ø(I) In determining the amount described in

subparagraph (B)(ii)(II) for any State for fiscal

year 1995, the Secretary shall use the information

which was reported by the States and estimates

made by the States with respect to emergency assistance expenditures and was available as of August 11, 1995.

ø(II) In determining the amounts described in

subclauses (I) through (III) of subparagraph (C)(i)

for any State for fiscal year 1995, the Secretary

shall use information available as of October 2,

1995.

ø(III) In determining the amount described in

subparagraph (C)(i)(IV) for any State for fiscal

year 1995, the Secretary shall use information

available as of February 28, 1996.

ø(IV) In determining the amount described in

subparagraph (C)(i)(V) for any State for fiscal year

1995, the Secretary shall use information available as of October 5, 1995.

ø(E) APPROPRIATION.—Out of any money in the Treasury

of the United States not otherwise appropriated, there are

appropriated for fiscal years 1996, 1997, 1998, 1999, 2000,

2001, and 2002 such sums as are necessary for grants

under this paragraph.

ø(2) BONUS TO REWARD DECREASE IN ILLEGITIMACY RATIO.— ø(A) IN GENERAL.—Each eligible State shall be entitled

to receive from the Secretary a grant for each bonus year.

ø(B) AMOUNT OF GRANT.—

ø(i) IN GENERAL.—If, for a bonus year, none of the

eligible States is Guam, the Virgin Islands, or American Samoa, then the amount of the grant shall be—

ø(I) $20,000,000 if there are 5 eligible States; or

ø(II) $25,000,000 if there are fewer than 5 eligible States.

ø(ii) AMOUNT IF CERTAIN TERRITORIES ARE ELIGI- BLE.—If, for a bonus year, Guam, the Virgin Islands,

or American Samoa is an eligible State, then the

amount of the grant shall be—

ø(I) in the case of such a territory, 25 percent of

the mandatory ceiling amount (as defined in section 1108(c)(4)) with respect to the territory; and

ø(II) in the case of a State that is not such a

territory—

ø(aa) if there are 5 eligible States other

than such territories, $20,000,000, minus 1⁄5

of the total amount of the grants payable

under this paragraph to such territories for

the bonus year; or

ø(bb) if there are fewer than 5 such eligible States, $25,000,000, or such lesser amount as

may be necessary to ensure that the total

95

amount of grants payable under this paragraph for the bonus year does not exceed

$100,000,000.

ø(C) DEFINITIONS.—As used in this paragraph:

ø(i) ELIGIBLE STATE.— ø(I) IN GENERAL.—The term ‘‘eligible State’’ means a State that the Secretary determines

meets the following requirements:

ø(aa) The State demonstrates that the illegitimacy ratio of the State for the most recent

2-year period for which such information is

available decreased as compared to the illegitimacy ratio of the State for the previous 2-

year period, and the magnitude of the decrease for the State for the period is not exceeded by the magnitude of the corresponding

decrease for 5 or more other States for the period. In the case of a State that is not a territory specified in subparagraph (B), the comparative magnitude of the decrease for the

State shall be determined without regard to

the magnitude of the corresponding decrease

for any such territory.

ø(bb) The rate of induced pregnancy terminations in the State for the calendar year for

which the most recent data are available is

less than the rate of induced pregnancy terminations in the State for calendar year 1995.

ø(II) DISREGARD OF CHANGES IN DATA DUE TO

CHANGED REPORTING METHODS.—In making the

determination required by subclause (I), the Secretary shall disregard— ø(aa) any difference between the illegitimacy ratio of a State for a fiscal year and the

illegitimacy ratio of a State for fiscal year

1995 which is attributable to a change in

State methods of reporting data used to calculate the illegitimacy ratio; and

ø(bb) any difference between the rate of induced pregnancy terminations in a State for a

calendar year and such rate for calendar year

1995 which is attributable to a change in

State methods of reporting data used to calculate such rate.

ø(ii) BONUS YEAR.—The term ‘‘bonus year’’ means

calendar years 1999, 2000, 2001, and 2002.

ø(iii) ILLEGITIMACY RATIO.—The term ‘‘illegitimacy

ratio’’ means, with respect to a State and a period—

ø(I) the number of out-of-wedlock births to

mothers residing in the State that occurred during

the period; divided by

ø(II) the number of births to mothers residing in

the State that occurred during the period.

ø(D) APPROPRIATION.—Out of any money in the Treasury

of the United States not otherwise appropriated, there are

96

appropriated for fiscal years 1999 through 2002, such

sums as are necessary for grants under this paragraph.¿

(B) STATE FAMILY ASSISTANCE GRANT.—The State family

assistance grant payable to a State for a fiscal year shall

be the amount that bears the same ratio to the amount

specified in subparagraph (C) of this paragraph as the

amount required to be paid to the State under this paragraph for fiscal year 2002 (determined without regard to

any reduction pursuant to section 412(a)(1)) bears to the

total amount required to be paid under this paragraph for

fiscal year 2002.

(C) APPROPRIATION.—Out of any money in the Treasury

of the United States not otherwise appropriated, there are

appropriated for each of fiscal years 2003 through 2007

$16,566,542,000 for grants under this paragraph.

(2) HEALTHY MARRIAGE PROMOTION GRANTS.—

(A) AUTHORITY.—The Secretary shall award competitive

grants to States, territories, and tribal organizations for not

more than 50 percent of the cost of developing and implementing innovative programs to promote and support

healthy, married, 2-parent families.

(B) HEALTHY MARRIAGE PROMOTION ACTIVITIES.—Funds

provided under subparagraph (A) shall be used to support

any of the following programs or activities:

(i) Public advertising campaigns on the value of

marriage and the skills needed to increase marital stability and health.

(ii) Education in high schools on the value of marriage, relationship skills, and budgeting.

(iii) Marriage education, marriage skills, and relationship skills programs, including parenting skills, financial management, conflict resolution, and job and

career advancement, for non-married pregnant women

and non-married expectant fathers.

(iv) Pre-marital education and marriage skills training for engaged couples and for couples interested in

marriage.

(v) Marriage enhancement and marriage skills training programs for married couples.

(vi) Divorce reduction programs that teach relationship skills.

(vii) Marriage mentoring programs which use married couples as role models and mentors in at-risk communities.

(viii) Programs to reduce the disincentives to marriage in means-tested aid programs, if offered in conjunction with any activity described in this subparagraph.

(C) APPROPRIATION.—Out of any money in the Treasury

of the United States not otherwise appropriated, there are

appropriated for each of fiscal years 2003 through 2007

$100,000,000 for grants under this paragraph.

(3) SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN

CERTAIN STATES.—

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(A) * * *

* * * * * * *

(H) REAUTHORIZATION øOF GRANTS FOR FISCAL YEAR

2002¿.—Notwithstanding any other provision of this

paragraph—

(i) any State that was a qualifying State under this

paragraph for fiscal year 2001 or any prior fiscal year

shall be entitled to receive from the Secretary for øfiscal year 2002¿ each of fiscal years 2002 through 2006

a grant in an amount equal to the amount required to

be paid to the State under this paragraph for the most

recent fiscal year in which the State was a qualifying

State;

(ii) subparagraph (G) shall be applied as if ‘‘ø2002¿

2006’’ were substituted for ‘‘2001’’; and

(iii) out of any money in the Treasury of the United

States not otherwise appropriated, there are appropriated for øfiscal year 2002¿ each of fiscal years 2002

through 2006 such sums as are necessary for grants

under this subparagraph.

(4) BONUS TO REWARD øHIGH PERFORMANCE STATES¿ EMPLOYMENT ACHIEVEMENT.—

(A) * * *

* * * * * * *

(D) SCORING OF STATE PERFORMANCE; SETTING OF PERFORMANCE THRESHOLDS.—For each bonus year, the Secretary shall—

(i) * * *

(ii) prescribe a performance threshold in such a

manner so as to ensure that—

(I) the average annual total amount of grants to

be made under this paragraph for each bonus year

øequals $200,000,000¿ (other than 2003) equals

$200,000,000, and for bonus year 2003 equals

$100,000,000; and

(II) the total amount of grants to be made under

this paragraph for all bonus years equals

ø$1,000,000,000¿ $900,000,000.

* * * * * * *

(F) APPROPRIATION.—Out of any money in the Treasury

of the United States not otherwise appropriated, there are

appropriated for fiscal years 1999 through 2003

ø$1,000,000,000¿ $900,000,000 for grants under this paragraph.

* * * * * * *

øEffective on October 1, 2003, section 105(b)(1) of H.R. 4090 strikes subparagraphs (A) through (F) and inserts subparagraphs (A) through (G) of section 403(a)(4) of the Social Security Act, shown below.¿

ø(A) IN GENERAL.—The Secretary shall make a grant

pursuant to this paragraph to each State for each bonus

year for which the State is a high performing State.

ø(B) AMOUNT OF GRANT.—

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ø(i) IN GENERAL.—Subject to clause (ii) of this subparagraph, the Secretary shall determine the amount

of the grant payable under this paragraph to a high

performing State for a bonus year, which shall be

based on the score assigned to the State under subparagraph (D)(i) for the fiscal year that immediately

precedes the bonus year.

ø(ii) LIMITATION.—The amount payable to a State

under this paragraph for a bonus year shall not exceed

5 percent of the State family assistance grant.

ø(C) FORMULA FOR MEASURING STATE PERFORMANCE.— Not later than 1 year after the date of the enactment of

the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the Secretary, in consultation with

the National Governors’ Association and the American

Public Welfare Association, shall develop a formula for

measuring State performance in operating the State program funded under this part so as to achieve the goals set

forth in section 401(a).

ø(D) SCORING OF STATE PERFORMANCE; SETTING OF PER- FORMANCE THRESHOLDS.—For each bonus year, the Secretary shall— ø(i) use the formula developed under subparagraph

(C) to assign a score to each eligible State for the fiscal

year that immediately precedes the bonus year; and

ø(ii) prescribe a performance threshold in such a

manner so as to ensure that— ø(I) the average annual total amount of grants

to be made under this paragraph for each bonus

year equals $200,000,000; and

ø(II) the total amount of grants to be made

under this paragraph for all bonus years equals

$1,000,000,000.

ø(E) DEFINITIONS.—As used in this paragraph:

ø(i) BONUS YEAR.—The term ‘‘bonus year’’ means fiscal years 1999, 2000, 2001, 2002, and 2003.

ø(ii) HIGH PERFORMING STATE.—The term ‘‘high performing State’’ means, with respect to a bonus year,

an eligible State whose score assigned pursuant to

subparagraph (D)(i) for the fiscal year immediately

preceding the bonus year equals or exceeds the performance threshold prescribed under subparagraph

(D)(ii) for such preceding fiscal year.

ø(F) APPROPRIATION.—Out of any money in the Treasury

of the United States not otherwise appropriated, there are

appropriated for fiscal years 1999 through 2003

$1,000,000,000 for grants under this paragraph.¿

(A) IN GENERAL.—The Secretary shall make a grant pursuant to this paragraph to each State for each bonus year

for which the State is an employment achievement State.

(B) AMOUNT OF GRANT.—

(i) IN GENERAL.—Subject to clause (ii) of this subparagraph, the Secretary shall determine the amount

of the grant payable under this paragraph to an employment achievement State for a bonus year, which

99

shall be based on the performance of the State as determined under subparagraph (D)(i) for the fiscal year

that immediately precedes the bonus year.

(ii) LIMITATION.—The amount payable to a State

under this paragraph for a bonus year shall not exceed

5 percent of the State family assistance grant.

(C) FORMULA FOR MEASURING STATE PERFORMANCE.—

(i) IN GENERAL.—Subject to clause (ii), not later than

October 1, 2003, the Secretary, in consultation with the

National Governors Association, the American Public

Human Services Association, and the National Conference of State Legislatures, shall develop a formula

for measuring State performance in operating the State

program funded under this part so as to achieve the

goals of employment entry, job retention, and increased

earnings from employment for families receiving assistance under the program, as measured on an absolute

basis and on the basis of improvement in State performance.

(ii) SPECIAL RULE FOR BONUS YEAR 2004.—For the

purposes of awarding a bonus under this paragraph

for bonus year 2004, the Secretary may measure the

performance of a State in fiscal year 2003 using the job

entry rate, job retention rate, and earnings gain rate

components of the formula developed under section

403(a)(4)(C) as in effect immediately before the effective

date of this paragraph.

(D) DETERMINATION OF STATE PERFORMANCE.—For each

bonus year, the Secretary shall—

(i) use the formula developed under subparagraph

(C) to determine the performance of each eligible State

for the fiscal year that precedes the bonus year; and

(ii) prescribe performance standards in such a manner so as to ensure that—

(I) the average annual total amount of grants to

be made under this paragraph for each bonus year

equals $100,000,000; and

(II) the total amount of grants to be made under

this paragraph for all bonus years equals

$500,000,000.

(E) DEFINITIONS.—In this paragraph:

(i) BONUS YEAR.—The term ‘‘bonus year’’ means each

of fiscal years 2004 through 2008.

(ii) EMPLOYMENT ACHIEVEMENT STATE.—The term

‘‘employment achievement State’’ means, with respect to

a bonus year, an eligible State whose performance determined pursuant to subparagraph (D)(i) for the fiscal

year preceding the bonus year equals or exceeds the

performance standards prescribed under subparagraph

(D)(ii) for such preceding fiscal year.

(F) APPROPRIATION.—Out of any money in the Treasury

of the United States not otherwise appropriated, there are

appropriated for fiscal years 2004 through 2008

$500,000,000 for grants under this paragraph.

100

(G) GRANTS FOR TRIBAL ORGANIZATIONS.—This paragraph shall apply with respect to tribal organizations in

the same manner in which this paragraph applies with respect to States. In determining the criteria under which to

make grants to tribal organizations under this paragraph,

the Secretary shall consult with tribal organizations.

(5) WELFARE-TO-WORK GRANTS.— (A) FORMULA GRANTS.— (i) * * *

(ii) WELFARE-TO-WORK STATE.—A State shall be considered a welfare-to-work State for a fiscal year for

purposes of this paragraph if the Secretary of Labor

determines that the State meets the following requirements:

(I) * * *

* * * * * * *

(III) The State has agreed to negotiate in good

faith with the Secretary of Health and Human

Services with respect to the substance and funding of any evaluation under section ø413(j)¿

413(i), and to cooperate with the conduct of any

such evaluation.

* * * * * * *

(F) FUNDING FOR EVALUATIONS OF WELFARE-TO-WORK

PROGRAMS.—0.6 percent of the amount specified in subparagraph (H) for fiscal year 1998 and $9,000,000 of the

amount so specified for fiscal year 1999 shall be reserved

for use by the Secretary to carry out section ø413(j)¿

413(i).

(G) FUNDING FOR EVALUATION OF ABSTINENCE EDUCATION PROGRAMS.—

(i) * * *

(ii) AUTHORITY TO USE FUNDS FOR EVALUATIONS OF

WELFARE-TO-WORK PROGRAMS.—Any such amount not

required for such evaluations shall be available for use

by the Secretary to carry out section ø413(j)¿ 413(i).

* * * * * * *

(b) CONTINGENCY FUND.—

(1) * * *

(2) DEPOSITS INTO FUND.—Out of any money in the Treasury

of the United States not otherwise appropriated, there are appropriated for fiscal years ø1997, 1998, 1999, 2000, 2001, and

2002¿ 2003 through 2007 such sums as are necessary for payment to the Fund in a total amount not to exceed

$2,000,000,000ø, reduced by the sum of the dollar amounts

specified in paragraph (6)(C)(ii)¿.

(3) GRANTS.—

(A) * * *

* * * * * * *

(C) LIMITATIONS.— (i) * * *

(ii) PAYMENTS TO ALL STATES.—The total amount

paid to all States under subparagraph (A) during fiscal

101

years ø1997 through 2002¿ 2003 through 2007 shall

not exceed the total amount appropriated pursuant to

paragraph (2).

* * * * * * *

(5) NEEDY STATE.—For purposes of paragraph (4), a State is

a needy State for a month if— (A) * * *

(B) as determined by the Secretary of Agriculture (in the

discretion of the Secretary of Agriculture), the monthly average number of individuals (as of the last day of each

month) participating in the food stamp program in the

State in the then most recently concluded 3-month period

for which data are available exceeds by not less than 10

percent the lesser of— (i) the monthly average number of individuals (as of

the last day of each month) in the State that would

have participated in the food stamp program in the

corresponding 3-month period in fiscal year 1994 if the

amendments made by titles IV and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and the Food Stamp Act of 1977 as

in effect during the corresponding 3-month period in

the fiscal year preceding such most recently concluded

3-month period, had been in effect throughout fiscal

year 1994; or

(ii) the monthly average number of individuals (as of

the last day of each month) in the State that would

have participated in the food stamp program in the

corresponding 3-month period in fiscal year 1995 if the

amendments made by titles IV and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and the Food Stamp Act of 1977 as

in effect during the corresponding 3-month period in

the fiscal year preceding such most recently concluded

3-month period, had been in effect throughout fiscal

year 1995.

(6) ANNUAL RECONCILIATION.— (A) IN GENERAL.—Notwithstanding paragraph (3), if the

Secretary makes a payment to a State under this subsection in a fiscal year, then the State shall remit to the

Secretary, within 1 year after the end of the first subsequent period of 3 consecutive months for which the State

is not a needy State, an amount equal to the amount (if

any) by which— (i) * * *

(ii) the product of— (I) the Federal medical assistance percentage for

the State (as defined in section 1905(b), as such

section was in effect on September 30, 1995); and

(II) the State’s reimbursable expenditures for

the fiscal yearø; and¿. ø(III) 1⁄12 times the number of months during

the fiscal year for which the Secretary made a

payment to the State under such paragraph (3).¿

(B) DEFINITIONS.—As used in subparagraph (A):

102

(i) REIMBURSABLE EXPENDITURES.—The term ‘‘reimbursable expenditures’’ means, with respect to a State

and a fiscal year, the amount (if any) by which— (I) * * *

(II) historic State expenditures (as defined in

section 409(a)(7)(B)(iii))ø, excluding any amount

expended by the State for child care under subsection (g) or (i) of section 402 (as in effect during

fiscal year 1994) for fiscal year 1994¿. (ii) COUNTABLE STATE EXPENDITURES.—The term ‘‘countable expenditures’’ means, with respect to a

State and a fiscal year— ø(I) the qualified State expenditures (as defined

in section 409(a)(7)(B)(i) (other than the expenditures described in subclause (I)(bb) of such section)) under the State program funded under this

part for the fiscal year; plus¿

(I) the qualified State expenditures (as defined in

section 409(a)(7)(B)(i)) for the fiscal year; plus

* * * * * * *

ø(C) ADJUSTMENT OF STATE REMITTANCES.— ø(i) IN GENERAL.—The amount otherwise required

by subparagraph (A) to be remitted by a State for a

fiscal year shall be increased by the lesser of— ø(I) the total adjustment for the fiscal year,

multiplied by the adjustment percentage for the

State for the fiscal year; or

ø(II) the unadjusted net payment to the State

for the fiscal year.

ø(ii) TOTAL ADJUSTMENT.—As used in clause (i), the

term ‘‘total adjustment’’ means— ø(I) in the case of fiscal year 1998, $2,000,000;

ø(II) in the case of fiscal year 1999, $9,000,000;

ø(III) in the case of fiscal year 2000,

$16,000,000; and

ø(IV) in the case of fiscal year 2001,

$13,000,000.

ø(iii) ADJUSTMENT PERCENTAGE.—As used in clause

(i), the term ‘‘adjustment percentage’’ means, with respect to a State and a fiscal year—

ø(I) the unadjusted net payment to the State for

the fiscal year; divided by

ø(II) the sum of the unadjusted net payments to

all States for the fiscal year.

ø(iv) UNADJUSTED NET PAYMENT.—As used in this

subparagraph, the term, ‘‘unadjusted net payment’’

means with respect to a State and a fiscal year—

ø(I) the total amount paid to the State under

paragraph (3) in the fiscal year; minus

ø(II) the amount that, in the absence of this

subparagraph, would be required by subparagraph

(A) or by section 409(a)(10) to be remitted by the

State in respect of the payment.¿

* * * * * * *

103

SEC. 404. USE OF GRANTS.

(a) GENERAL RULES.—Subject to this part, a State to which a

grant is made under section 403 may use the grant—

(1) in any manner that is reasonably calculated to accomplish the purpose of this part, including to provide low income

households with øassistance¿ aid in meeting home heating and

cooling costs; or

(2) øin any manner that¿ for any purposes or activities for

which the State was authorized to use amounts received under

part A or F, as such parts were in effect on September 30,

1995, or (at the option of the State) August 21, 1996.

* * * * * * *

ø(c) AUTHORITY TO TREAT INTERSTATE IMMIGRANTS UNDER

RULES OF FORMER STATE.—A State operating a program funded

under this part may apply to a family the rules (including benefit

amounts) of the program funded under this part of another State

if the family has moved to the State from the other State and has

resided in the State for less than 12 months.¿

(d) AUTHORITY TO USE PORTION OF GRANT FOR OTHER PURPOSES.—

(1) IN GENERAL.—Subject to paragraph (2), a State may use

not more than ø30¿ 50 percent of the amount of any grant

made to the State under section 403(a) for a fiscal year to carry

out a State program pursuant to any or all of the following provisions of law:

(A) Title XX of this Act.

(B) The Child Care and Development Block Grant Act of

1990.

(2) LIMITATION ON AMOUNT TRANSFERABLE TO TITLE XX PROGRAMS.—

(A) * * *

ø(B) APPLICABLE PERCENT.—For purposes of subparagraph (A), the applicable percent is 4.25 percent in the

case of fiscal year 2001 and each succeeding fiscal year.¿

(B) APPLICABLE PERCENT.—For purposes of subparagraph (A), the applicable percent is 10 percent for fiscal

year 2003 and each succeeding fiscal year.

* * * * * * *

ø(e) AUTHORITY TO RESERVE CERTAIN AMOUNTS FOR ASSISTANCE.—A State or tribe may reserve amounts paid to the State or

tribe under this part for any fiscal year for the purpose of providing, without fiscal year limitation, assistance under the State or

tribal program funded under this part.¿

(e) AUTHORITY TO CARRYOVER OR RESERVE CERTAIN AMOUNTS

FOR BENEFITS OR SERVICES OR FOR FUTURE CONTINGENCIES.—

(1) CARRYOVER.—A State or tribe may use a grant made to

the State or tribe under this part for any fiscal year to provide,

without fiscal year limitation, any benefit or service that may

be provided under the State or tribal program funded under

this part.

(2) CONTINGENCY RESERVE.—A State or tribe may designate

any portion of a grant made to the State or tribe under this

part as a contingency reserve for future needs, and may use any

amount so designated to provide, without fiscal year limitation,

104

any benefit or service that may be provided under the State or

tribal program funded under this part. If a State or tribe so

designates a portion of such a grant, the State shall, on an annual basis, include in its report under section 411(a) the

amount so designated.

(f) AUTHORITY TO OPERATE EMPLOYMENT PLACEMENT PRO- GRAM.—A State to which a grant is made under section 403 may

use the grant to make payments (or provide job placement vouchers) to State-approved public and private job placement agencies

that provide employment placement services to individuals who receive øassistance¿ benefits or services under the State program

funded under this part.

* * * * * * *

(k) LIMITATIONS ON USE OF GRANT FOR MATCHING UNDER CER- TAIN FEDERAL TRANSPORTATION PROGRAM.— (1) USE LIMITATIONS.—A State to which a grant is made

under section 403 may not use any part of the grant to match

funds made available under section 3037 of the Transportation

Equity Act for the 21st Century, unless— (A) * * *

* * * * * * *

(D) the services provided through such use of the grant

promote the ability of such recipients to engage in øwork

activities (as defined in section 407(d))¿ direct work activities.

* * * * * * *

(l) MARRIAGE PROMOTION.—A State, territory, or tribal organization to which a grant is made under section 403(a)(2) may use a

grant made to the State, territory, or tribal organization under any

other provision of section 403 for marriage promotion activities, and

the amount of any such grant so used shall be considered State

funds for purposes of section 403(a)(2).

* * * * * * *

øSEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.

ø(a) LOAN AUTHORITY.— ø(1) IN GENERAL.—The Secretary shall make loans to any

loan-eligible State, for a period to maturity of not more than

3 years.

ø(2) LOAN-ELIGIBLE STATE.—As used in paragraph (1), the

term ‘‘loan-eligible State’’ means a State against which a penalty has not been imposed under section 409(a)(1).

ø(b) RATE OF INTEREST.—The Secretary shall charge and collect

interest on any loan made under this section at a rate equal to the

current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan.

ø(c) USE OF LOAN.—A State shall use a loan made to the State

under this section only for any purpose for which grant amounts

received by the State under section 403(a) may be used,

including— ø(1) welfare anti-fraud activities; and

ø(2) the provision of assistance under the State program to

Indian families that have moved from the service area of an

105

Indian tribe with a tribal family assistance plan approved

under section 412.

ø(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO A STATE.—The

cumulative dollar amount of all loans made to a State under this

section during fiscal years 1997 through 2002 shall not exceed 10

percent of the State family assistance grant.

ø(e) LIMITATION ON TOTAL AMOUNT OF OUTSTANDING LOANS.—

The total dollar amount of loans outstanding under this section

may not exceed $1,700,000,000.

ø(f) APPROPRIATION.—Out of any money in the Treasury of the

United States not otherwise appropriated, there are appropriated

such sums as may be necessary for the cost of loans under this section.

øSEC. 407. MANDATORY WORK REQUIREMENTS.

ø(a) PARTICIPATION RATE REQUIREMENTS.—

ø(1) ALL FAMILIES.—A State to which a grant is made under

section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year

with respect to all families receiving assistance under the

State program funded under this part:

The minimum

participation

øIf the fiscal year is: rate is:

1997 ................................................................................... 25

1998 ................................................................................... 30

1999 ................................................................................... 35

2000 ................................................................................... 40

2001 ................................................................................... 45

2002 or thereafter ............................................................ 50.

ø(2) 2-PARENT FAMILIES.—A State to which a grant is made

under section 403 for a fiscal year shall achieve the minimum

participation rate specified in the following table for the fiscal

year with respect to 2-parent families receiving assistance

under the State program funded under this part:

The minimum

participation

øIf the fiscal year is: rate is:

1997 ................................................................................... 75

1998 ................................................................................... 75

1999 or thereafter ............................................................ 90.

ø(b) CALCULATION OF PARTICIPATION RATES.—

ø(1) ALL FAMILIES.—

ø(A) AVERAGE MONTHLY RATE.—For purposes of subsection (a)(1), the participation rate for all families of a

State for a fiscal year is the average of the participation

rates for all families of the State for each month in the fiscal year.

ø(B) MONTHLY PARTICIPATION RATES.—The participation

rate of a State for all families of the State for a month, expressed as a percentage, is—

ø(i) the number of families receiving assistance

under the State program funded under this part that

include an adult or a minor child head of household

who is engaged in work for the month; divided by

ø(ii) the amount by which—

106

ø(I) the number of families receiving such assistance during the month that include an adult

or a minor child head of household receiving such

assistance; exceeds

ø(II) the number of families receiving such assistance that are subject in such month to a penalty described in subsection (e)(1) but have not

been subject to such penalty for more than 3

months within the preceding 12-month period

(whether or not consecutive).

ø(2) 2-PARENT FAMILIES.— ø(A) AVERAGE MONTHLY RATE.—For purposes of subsection (a)(2), the participation rate for 2-parent families of

a State for a fiscal year is the average of the participation

rates for 2-parent families of the State for each month in

the fiscal year.

ø(B) MONTHLY PARTICIPATION RATES.—The participation

rate of a State for 2-parent families of the State for a

month shall be calculated by use of the formula set forth

in paragraph (1)(B), except that in the formula the term

‘‘number of 2-parent families’’ shall be substituted for the

term ‘‘number of families’’ each place such latter term appears.

ø(C) FAMILY WITH A DISABLED PARENT NOT TREATED AS

A 2-PARENT FAMILY.—A family that includes a disabled parent shall not be considered a 2-parent family for purposes

of subsections (a) and (b) of this section.¿

SEC. 407. WORK PARTICIPATION REQUIREMENTS.

(a) PARTICIPATION RATE REQUIREMENTS.—A State to which a

grant is made under section 403 for a fiscal year shall achieve a

minimum participation rate equal to not less than— (1) 50 percent for fiscal year 2003;

(2) 55 percent for fiscal year 2004;

(3) 60 percent for fiscal year 2005;

(4) 65 percent for fiscal year 2006; and

(5) 70 percent for fiscal year 2007 and each succeeding fiscal

year.

(b) CALCULATION OF PARTICIPATION RATES.— (1) AVERAGE MONTHLY RATE.—For purposes of subsection (a),

the participation rate of a State for a fiscal year is the average

of the participation rates of the State for each month in the fiscal year.

(2) MONTHLY PARTICIPATION RATES; INCORPORATION OF 40-

HOUR WORK WEEK STANDARD.—

(A) IN GENERAL.—For purposes of paragraph (1), the participation rate of a State for a month is—

(i) the total number of countable hours (as defined in

subsection (c)) with respect to the counted families for

the State for the month; divided by

(ii) 160 multiplied by the number of counted families

for the State for the month.

(B) COUNTED FAMILIES DEFINED.—

(i) IN GENERAL.—In subparagraph (A), the term

‘‘counted family’’ means, with respect to a State and a

month, a family that includes a work-eligible indiVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00106 Fmt 6659 Sfmt 6603 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
107

vidual and that receives assistance in the month under

the State program funded under this part, subject to

clause (ii).

(ii) STATE OPTION TO EXCLUDE CERTAIN FAMILIES.—

At the option of a State, the term ‘‘counted family’’

shall not include—

(I) a family in the first month for which the family receives assistance from a State program funded under this part on the basis of the most recent

application for such assistance; or

(II) on a case-by-case basis, a family in which

the youngest child has not attained 12 months of

age.

(iii) STATE OPTION TO INCLUDE INDIVIDUALS RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY ASSISTANCE

PLAN OR TRIBAL WORK PROGRAM.—At the option of a

State, the term ‘‘counted family’’ may include families

in the State that are receiving assistance under a tribal

family assistance plan approved under section 412 or

under a tribal work program to which funds are provided under this part.

(C) WORK-ELIGIBLE INDIVIDUAL DEFINED.—In this section,

the term ‘‘work-eligible individual’’ means an individual—

(i) who is married or a single head of household; and

(ii) whose needs are (or, but for sanctions under this

part that have been in effect for more than 3 months

(whether or not consecutive) in the preceding 12

months or under part D, would be) included in determining the amount of cash assistance to be provided to

the family under the State program funded under this

part.

(3) PRO RATA REDUCTION OF PARTICIPATION RATE DUE TO

CASELOAD REDUCTIONS NOT REQUIRED BY FEDERAL LAW AND

NOT RESULTING FROM CHANGES IN STATE ELIGIBILITY CRITERIA.—

(A) IN GENERAL.—The Secretary shall prescribe regulations for reducing the minimum participation rate otherwise required by this section for a fiscal year by the number of percentage points equal to the number of percentage

points (if any) by which—

(i) * * *

ø(ii) the average monthly number of families that

received aid under the State plan approved under part

A (as in effect on September 30, 1995) during fiscal

year 1995.¿

(ii) the average monthly number of families that received assistance under the State program funded

under this part during—

(I) if the fiscal year is fiscal year 2003, fiscal

year 1996;

(II) if the fiscal year is fiscal year 2004, fiscal

year 1998;

(III) if the fiscal year is fiscal year 2005, fiscal

year 2001;

108

(IV) if the fiscal year is fiscal year 2006, fiscal

year 2002; or

(V) if the fiscal year is fiscal year 2007, fiscal

year 2003.

* * * * * * *

ø(4) STATE OPTION TO INCLUDE INDIVIDUALS RECEIVING AS- SISTANCE UNDER A TRIBAL FAMILY ASSISTANCE PLAN OR TRIBAL

WORK PROGRAM.—For purposes of paragraphs (1)(B) and (2)(B),

a State may, at its option, include families in the State that

are receiving assistance under a tribal family assistance plan

approved under section 412 or under a tribal work program to

which funds are provided under this part.

ø(5) STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMP- TIONS.—For any fiscal year, a State may, at its option, not require an individual who is a single custodial parent caring for

a child who has not attained 12 months of age to engage in

work, and may disregard such an individual in determining

the participation rates under subsection (a) for not more than

12 months.¿

(4) SUPERACHIEVER CREDIT.— (A) IN GENERAL.—The participation rate, determined

under paragraphs (1) and (2) of this subsection, of a superachiever State for a fiscal year shall be increased by the

lesser of—

(i) the amount (if any) of the superachiever credit applicable to the State; or

(ii) the number of percentage points (if any) by which

the minimum participation rate required by subsection

(a) for the fiscal year exceeds 50 percent.

(B) SUPERACHIEVER STATE.—For purposes of subparagraph (A), a State is a superachiever State if the State caseload for fiscal year 2001 has declined by at least 60 percent

from the State caseload for fiscal year 1995.

(C) AMOUNT OF CREDIT.—The superachiever credit applicable to a State is the number of percentage points (if any)

by which the decline referred to in subparagraph (B) exceeds 60 percent.

(D) DEFINITIONS.—In this paragraph:

(i) STATE CASELOAD FOR FISCAL YEAR 2001.—The

term ‘‘State caseload for fiscal year 2001’’ means the

average monthly number of families that received assistance during fiscal year 2001 under the State program funded under this part.

(ii) STATE CASELOAD FOR FISCAL YEAR 1995.—The

term ‘‘State caseload for fiscal year 1995’’ means the

average monthly number of families that received aid

under the State plan approved under part A (as in effect on September 30, 1995) during fiscal year 1995.

ø(c) ENGAGED IN WORK.— ø(1) GENERAL RULES.— ø(A) ALL FAMILIES.—For purposes of subsection

(b)(1)(B)(i), a recipient is engaged in work for a month in

a fiscal year if the recipient is participating in work activities for at least the minimum average number of hours per

week specified in the following table during the month, not

109

fewer than 20 hours per week of which are attributable to

an activity described in paragraph (1), (2), (3), (4), (5), (6),

(7), (8), or (12) of subsection (d), subject to this subsection:

The minimum

øIf the month is average number of

in fiscal year: hours per week is:

1997 ............................................................................... 20

1998 ............................................................................... 20

1999 ............................................................................... 25

2000 or thereafter ......................................................... 30.

ø(B) 2-PARENT FAMILIES.—For purposes of subsection

(b)(2)(B), an individual is engaged in work for a month in

a fiscal year if— ø(i) the individual and the other parent in the family are participating in work activities for a total of at

least 35 hours per week during the month, not fewer

than 30 hours per week of which are attributable to

an activity described in paragraph (1), (2), (3), (4), (5),

(6), (7), (8), or (12) of subsection (d), subject to this

subsection; and

ø(ii) if the family of the individual receives federallyfunded child care assistance and an adult in the family is not disabled or caring for a severely disabled

child, the individual and the other parent in the family are participating in work activities for a total of at

least 55 hours per week during the month, not fewer

than 50 hours per week of which are attributable to

an activity described in paragraph (1), (2), (3), (4), (5),

(6), (7), (8), or (12) of subsection (d).

ø(2) LIMITATIONS AND SPECIAL RULES.—

ø(A) NUMBER OF WEEKS FOR WHICH JOB SEARCH COUNTS

AS WORK.—

ø(i) LIMITATION.—Notwithstanding paragraph (1) of

this subsection, an individual shall not be considered

to be engaged in work by virtue of participation in an

activity described in subsection (d)(6) of a State program funded under this part, after the individual has

participated in such an activity for 6 weeks (or, if the

unemployment rate of the State is at least 50 percent

greater than the unemployment rate of the United

States or the State is a needy State (within the meaning of section 403(b)(6)), 12 weeks), or if the participation is for a week that immediately follows 4 consecutive weeks of such participation.

ø(ii) LIMITED AUTHORITY TO COUNT LESS THAN FULL

WEEK OF PARTICIPATION.—For purposes of clause (i) of

this subparagraph, on not more than 1 occasion per individual, the State shall consider participation of the

individual in an activity described in subsection (d)(6)

for 3 or 4 days during a week as a week of participation in the activity by the individual.

ø(B) SINGLE PARENT OR RELATIVE WITH CHILD UNDER AGE

6 DEEMED TO BE MEETING WORK PARTICIPATION REQUIREMENTS IF PARENT OR RELATIVE IS ENGAGED IN WORK FOR 20

HOURS PER WEEK.—For purposes of determining monthly

participation rates under subsection (b)(1)(B)(i), a recipient

110

who is the only parent or caretaker relative in the family

of a child who has not attained 6 years of age is deemed

to be engaged in work for a month if the recipient is engaged in work for an average of at least 20 hours per week

during the month.

ø(C) SINGLE TEEN HEAD OF HOUSEHOLD OR MARRIED

TEEN WHO MAINTAINS SATISFACTORY SCHOOL ATTENDANCE

DEEMED TO BE MEETING WORK PARTICIPATION REQUIRE- MENTS.—For purposes of determining monthly participation rates under sub-section (b)(1)(B)(i), a recipient who is

married or a head of household and has not attained 20

years of age is deemed to be engaged in work for a month

in a fiscal year if the recipient— ø(i) maintains satisfactory attendance at secondary

school or the equivalent during the month; or

ø(ii) participates in education directly related to employment for an average of at least 20 hours per week

during the month.

ø(D) LIMITATION ON NUMBER OF PERSONS WHO MAY BE

TREATED AS ENGAGED IN WORK BY REASON OF PARTICIPA- TION IN EDUCATIONAL ACTIVITIES.—For purposes of determining monthly participation rates under paragraphs

(1)(B)(i) and (2)(B) of subsection (b), not more than 30 percent of the number of individuals in all families and in 2-

parent families, respectively, in a State who are treated as

engaged in work for a month may consist of individuals

who are determined to be engaged in work for the month

by reason of participation in vocational educational training, 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.

ø(d) WORK ACTIVITIES DEFINED.—As used in this section, the

term ‘‘work activities’’ means— ø(1) unsubsidized employment;

ø(2) subsidized private sector employment;

ø(3) subsidized public sector employment;

ø(4) work experience (including work associated with the refurbishing of publicly assisted housing) if sufficient private sector employment is not available;

ø(5) on-the-job training;

ø(6) job search and job readiness assistance;

ø(7) community service programs;

ø(8) vocational educational training (not to exceed 12 months

with respect to any individual);

ø(9) job skills training directly related to employment;

ø(10) 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;

ø(11) 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; and

ø(12) the provision of child care services to an individual who

is participating in a community service program.¿

(c) COUNTABLE HOURS.—

111

(1) DEFINITION.—In subsection (b)(2), the term ‘‘countable

hours’’ means, with respect to a family for a month, the total

number of hours in the month in which any member of the family who is a work-eligible individual is engaged in a direct work

activity or other activities specified by the State (excluding an

activity that does not address a purpose specified in section

401(a)), subject to the other provisions of this subsection.

(2) LIMITATIONS.—Subject to such regulations as the Secretary may prescribe:

(A) MINIMUM WEEKLY AVERAGE OF 24 HOURS OF DIRECT

WORK ACTIVITIES REQUIRED.—If the work-eligible individuals in a family are engaged in a direct work activity for

an average total of fewer than 24 hours per week in a

month, then the number of countable hours with respect to

the family for the month shall be zero.

(B) MAXIMUM WEEKLY AVERAGE OF 16 HOURS OF OTHER

ACTIVITIES.—An average of not more than 16 hours per

week of activities specified by the State (subject to the exclusion described in paragraph (1)) may be considered countable hours in a month with respect to a family.

(3) SPECIAL RULES.—For purposes of paragraph (1):

(A) PARTICIPATION IN QUALIFIED ACTIVITIES.— (i) IN GENERAL.—If, with the approval of the State,

the work-eligible individuals in a family are engaged

in 1 or more qualified activities for an average total of

at least 24 hours per week in a month, then all such

engagement in the month shall be considered engagement in a direct work activity, subject to clause (iii).

(ii) QUALIFIED ACTIVITY DEFINED.—The term ‘‘qualified activity’’ means an activity specified by the State

(subject to the exclusion described in paragraph (1))

that meets such standards and criteria as the State

may specify, including— (I) substance abuse counseling or treatment;

(II) rehabilitation treatment and services;

(III) work-related education or training directed

effectively at enabling the family member to work;

or

(IV) job search or job readiness assistance.

(iii) LIMITATION.—

(I) IN GENERAL.—Except as provided in subclause (II), clause (i) shall not apply to a family for

more than 3 months in any period of 24 consecutive months.

(II) SPECIAL RULE APPLICABLE TO EDUCATION

AND TRAINING.—A State may, on a case-by-case

basis, apply clause (i) to a work-eligible individual

so that participation by the individual in education or training, if needed to permit the individual to complete a certificate program or other

specific course of education in preparation for specific employment to fill a known job need in a local

area, may be considered countable hours with respect to the family of the individual for not more

than 4 months.

112

(B) SCHOOL ATTENDANCE BY TEEN HEAD OF HOUSE- HOLD.—The work-eligible members of a family shall be considered to be engaged in a direct work activity for an average of 40 hours per week in a month if the family includes

an individual who is married, or is a single head of household, who has not attained 20 years of age, and the

individual— (i) maintains satisfactory attendance at secondary

school or the equivalent in the month; or

(ii) participates in education directly related to employment for an average of at least 20 hours per week

in the month.

(d) DIRECT WORK ACTIVITY.—In this section, the term ‘‘direct

work activity’’ means— (1) unsubsidized employment;

(2) subsidized private sector employment;

(3) subsidized public sector employment;

(4) on-the-job training;

(5) supervised work experience; or

(6) supervised community service.

(e) PENALTIES AGAINST INDIVIDUALS.— ø(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— ø(A) 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

ø(B) terminate such assistance,

subject to such good cause and other exceptions as the State

may establish.¿

(1) REDUCTION OR TERMINATION OF ASSISTANCE.— (A) IN GENERAL.—Except as provided in paragraph (2), if

an individual in a family receiving assistance under a

State program funded under this part fails to engage in activities required in accordance with this section, or other

activities required by the State under the program, and the

family does not otherwise engage in activities in accordance

with the self-sufficiency plan established for the family pursuant to section 408(b), the State shall—

(i) if the failure is partial or persists for not more

than 1 month—

(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 failure occurs; or

(II) terminate all assistance to the family, subject

to such good cause exceptions as the State may establish; or

(ii) if the failure is total and persists for at least 2

consecutive months, terminate all cash payments to the

family including qualified State expenditures (as defined in section 409(a)(7)(B)(i)) for at least 1 month

and thereafter until the individual resumes full particiVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00112 Fmt 6659 Sfmt 6603 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
113

pation in the activities, subject to such good cause exceptions as the State may establish.

(B) SPECIAL RULE.—In the event of a conflict between a

requirement of clause (i)(II) or (ii) of subparagraph (A) and

a requirement of a State constitution to provide assistance

to needy parents and children, the State constitutional requirement shall control.

* * * * * * *

(f) 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 øwork activity described in subsection (d)¿ direct

work activity. (2) NO FILLING OF CERTAIN VACANCIES.—No adult in a øwork

activity described in subsection (d)¿ direct work activity which

is funded, in whole or in part, by funds provided by the Federal Government shall be employed or assigned— (A) * * *

* * * * * * *

SEC. 408. PROHIBITIONS; REQUIREMENTS.

(a) IN GENERAL.— (1) * * *

* * * * * * *

(5) NO ASSISTANCE FOR TEENAGE PARENTS NOT LIVING IN

ADULT-SUPERVISED SETTINGS.— (A) * * *

(B) EXCEPTION.— (i) PROVISION OF, OR øASSISTANCE¿ AID IN LOCATING, ADULT-SUPERVISED LIVING ARRANGEMENT.—In the case

of an individual who is described in clause (ii), the

State agency referred to in section 402(a)(4) shall provide, or assist the individual in locating, a second

chance home, maternity home, or other appropriate

adult-supervised supportive living arrangement, taking into consideration the needs and concerns of the

individual, unless the State agency determines that

the individual’s current living arrangement is appropriate, and thereafter shall require that the individual

and the minor child referred to in subparagraph

(A)(ii)(II) reside in such living arrangement as a condition of the continued receipt of assistance under the

State program funded under this part attributable to

funds provided by the Federal Government (or in an

alternative appropriate arrangement, should circumstances change and the current arrangement cease

to be appropriate).

* * * * * * *

ø(b) INDIVIDUAL RESPONSIBILITY PLANS.— ø(1) ASSESSMENT.—The State agency responsible for administering the State program funded under this part shall make

an initial assessment of the skills, prior work experience, and

114

employability of each recipient of assistance under the program

who—ø(A) has attained 18 years of age; or

ø(B) has not completed high school or obtained a certificate of high school equivalency, and is not attending secondary school.

ø(2) CONTENTS OF PLANS.— ø(A) IN GENERAL.—On the basis of the assessment made

under subsection (a) with respect to an individual, the

State agency, in consultation with the individual, may develop an individual responsibility plan for the individual,

which—

ø(i) sets forth an employment goal for the individual

and a plan for moving the individual immediately into

private sector employment;

ø(ii) sets forth the obligations of the individual,

which may include a requirement that the individual

attend school, maintain certain grades and attendance, keep school age children of the individual in

school, immunize children, attend parenting and

money management classes, or do other things that

will help the individual become and remain employed

in the private sector;

ø(iii) to the greatest extent possible is designed to

move the individual into whatever private sector employment the individual is capable of handling as

quickly as possible, and to increase the responsibility

and amount of work the individual is to handle over

time;

ø(iv) describes the services the State will provide the

individual so that the individual will be able to obtain

and keep employment in the private sector, and describe the job counseling and other services that will

be provided by the State; and

ø(v) may require the individual to undergo appropriate substance abuse treatment.

ø(B) TIMING.—The State agency may comply with paragraph (1) with respect to an individual— ø(i) within 90 days (or, at the option of the State,

180 days) after the effective date of this part, in the

case of an individual who, as of such effective date, is

a recipient of aid under the State plan approved under

part A (as in effect immediately before such effective

date); or

ø(ii) within 30 days (or, at the option of the State,

90 days) after the individual is determined to be eligible for such assistance, in the case of any other individual.

ø(3) PENALTY FOR NONCOMPLIANCE BY INDIVIDUAL.—In addition to any other penalties required under the State program

funded under this part, the State may reduce, by such amount

as the State considers appropriate, the amount of assistance

otherwise payable under the State program to a family that includes an individual who fails without good cause to comply

with an individual responsibility plan signed by the individual.

115

ø(4) STATE DISCRETION.—The exercise of the authority of this

subsection shall be within the sole discretion of the State.¿

(b) FAMILY SELF-SUFFICIENCY PLANS.— (1) IN GENERAL.—A State to which a grant is made under section 403 shall— (A) make an initial assessment, in the manner deemed

appropriate by the State, of the skills, prior work experience, and employability of each recipient of assistance

under the program;

(B) establish for each family that includes a work-eligible

individual receiving assistance under the State program

funded under this part a self-sufficiency plan that specifies

appropriate activities described in the State plan submitted

pursuant to section 402, including direct work activities as

appropriate designed to assist the family in achieving their

maximum degree of self-sufficiency, and that provides for

the ongoing participation of the individual in the activities;

(C) require, at a minimum, each member of the family

who is a work-eligible individual (as defined in section

407(b)(2)(C)) to participate in activities in accordance with

the self-sufficiency plan;

(D) monitor the participation of such family members in

the activities and the progress of the family toward self-sufficiency;

(E) regularly review the self-sufficiency plan; and

(F) revise the self-sufficiency plan as appropriate.

(2) TIMING.—The State shall comply with paragraph (1) with

respect to a family— (A) in the case of a family that, as of October 1, 2002, is

not receiving assistance from the State program funded

under this part, not later than 60 days after the family first

receives assistance on the basis of the most recent application for the assistance; or

(B) in the case of a family that, as of such date, is receiving the assistance, not later than 12 months after the date

of the enactment of this subsection.

* * * * * * *

SEC. 409. PENALTIES.

(a) IN GENERAL.—Subject to this section:

(1) * * *

* * * * * * *

(3) FAILURE TO SATISFY MINIMUM PARTICIPATION RATES OR

ESTABLISH FAMILY SELF-SUFFICIENCY PLAN.—

(A) IN GENERAL.—If the Secretary determines that a

State to which a grant is made under section 403 for a fiscal year has failed to comply with section 407(a) or 408(b)

for 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 the

applicable percentage of the State family assistance grant.

* * * * * * *

ø(6) FAILURE TO TIMELY REPAY A FEDERAL LOAN FUND FOR

STATE WELFARE PROGRAMS.—If the Secretary determines that a

116

State has failed to repay any amount borrowed from the Federal Loan Fund for State Welfare Programs established under

section 406 within the period of maturity applicable to the

loan, plus any interest owed on the loan, the Secretary shall

reduce the grant payable to the State under section 403(a)(1)

for the immediately succeeding fiscal year quarter (without regard to this section) by the outstanding loan amount, plus the

interest owed on the outstanding amount. The Secretary shall

not forgive any outstanding loan amount or interest owed on

the outstanding amount.¿

(7) FAILURE OF ANY STATE TO MAINTAIN CERTAIN LEVEL OF

HISTORIC EFFORT.— (A) IN GENERAL.—The Secretary shall reduce the grant

payable to the State under section 403(a)(1) for øfiscal year

1998, 1999, 2000, 2001, 2002, or 2003¿ fiscal year 2003,

2004, 2005, 2006, 2007 or 2008 by the amount (if any) by

which qualified State expenditures for the then immediately preceding fiscal year are less than the applicable

percentage of historic State expenditures with respect to

such preceding fiscal year.

(B) DEFINITIONS.—As used in this paragraph:

(i) QUALIFIED STATE EXPENDITURES.—

(I) * * *

* * * * * * *

(V) COUNTING OF SPENDING ON NON-ELIGIBLE

FAMILIES TO PREVENT AND REDUCE INCIDENCE OF

OUT-OF-WEDLOCK BIRTHS, ENCOURAGE FORMATION

AND MAINTENANCE OF HEALTHY, 2-PARENT MARRIED

FAMILIES, OR ENCOURAGE RESPONSIBLE FATHER- HOOD.—The term ‘‘qualified State expenditures’’ includes the total expenditures by the State during

the fiscal year under all State programs for a purpose described in paragraph (3) or (4) of section

401(a).

(VI) EXCLUSION OF FEDERAL TANF FUNDS USED

FOR MARRIAGE PROMOTION ACTIVITIES.—Such term

does not include the amount of any grant made to

the State under section 403 that is expended for a

marriage promotion activity.

(ii) APPLICABLE PERCENTAGE.—The term ‘‘applicable

percentage’’ means øfor fiscal years 1997 through

2002,¿ 80 percent (or, if the State meets the requirements of section 407(a) for the preceding fiscal year,

75 percent).

* * * * * * *

(10) FAILURE OF STATE RECEIVING AMOUNTS FROM CONTINGENCY FUND TO MAINTAIN 100 PERCENT OF HISTORIC EFFORT.—

If, at the end of any fiscal year during which amounts from the

Contingency Fund for State Welfare Programs have been paid

to a State, the Secretary finds that the qualified State expenditures (as defined in paragraph (7)(B)(i) ø(other than the expenditures described in subclause (I)(bb) of that paragraph))

under the State program funded under this part¿) for the fiscal

year are less than 100 percent of historic State expenditures

117

(as defined in paragraph (7)(B)(iii) of this subsection), øexcluding any amount expended by the State for child care under

subsection (g) or (i) of section 402 (as in effect during fiscal

year 1994) for fiscal year 1994,¿ the Secretary shall reduce the

grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by the total of the amounts so

paid to the State that the State has not remitted under section

403(b)(6).

* * * * * * *

(14) PENALTY FOR FAILURE TO REDUCE ASSISTANCE FOR RECIPIENTS REFUSING WITHOUT GOOD CAUSE TO WORK OR REFUSING TO ENGAGE IN ACTIVITIES UNDER A FAMILY SELF-SUFFICIENCY PLAN.—

(A) * * *

* * * * * * *

(c) CORRECTIVE COMPLIANCE PLAN.—

(1) * * *

(2) EFFECT OF CORRECTING OR DISCONTINUING VIOLATION.—

The Secretary may not impose any penalty under subsection

(a) with respect to any violation covered by a State corrective

compliance plan accepted by the Secretary if the State corrects

or discontinues, as appropriate, the violation pursuant to the

plan.

* * * * * * *

SEC. 411. DATA COLLECTION AND REPORTING.

(a) QUARTERLY REPORTS BY STATES.—

(1) GENERAL REPORTING REQUIREMENT.—

(A) CONTENTS OF REPORT.—Each eligible State shall collect on a monthly basis, and report to the Secretary on a

quarterly basis, the following disaggregated case record information on the families receiving assistance under the

State program funded under this part (except for information relating to activities carried out under section

403(a)(5)):

(i) * * *

(ii) Whether a child receiving such assistance or an

adult in the family is receiving—

(I) * * *

* * * * * * *

(III) aid under a State plan approved under title

XIV (as in effect without regard to the amendment

made by section 301 of the Social Security Amendments of 1972)ø)¿;

* * * * * * *

(vii) The race and educational level of each adult

and minor parent in the family.

(viii) The race øand educational level¿ of each child

in the family.

(ix) Whether the family received subsidized housing,

medical assistance under the State plan approved

under title XIX, food stamps, or subsidized child careø,

and if the latter 2, the amount received¿.

118

(x) The number of months that the family has received øeach type of¿ assistance under the program

and, if applicable, the reason for receipt of the assistance for a total of more than 60 months. (xi) If the adults participated in, and the number of

hours per week of participation in, the following activities:

ø(I) Education.

ø(II) Subsidized private sector employment.

ø(III) Unsubsidized employment.

ø(IV) Public sector employment, work experience, or community service.

ø(V) Job search.

ø(VI) Job skills training or on-the-job training.

ø(VII) Vocational education.¿

(I) Subsidized private sector employment.

(II) Unsubsidized employment.

(III) Public sector employment, supervised work

experience, or supervised community service.

(IV) On-the-job training.

(V) Job search and placement.

(VI) Training.

(VII) Education.

(VIII) Other activities directed at the purposes of

this part, as specified in the State plan submitted

pursuant to section 402.

(xii) Information necessary to calculate participation

rates and progress toward universal engagement under

section 407.

(xiii) The øtype and¿ amount of assistance received

under the program, including the amount of and reason for any reduction of assistance (including sanctions).

* * * * * * *

(xvi) From a sample of closed cases, whether the

family left the program, and if so, whether the family

left due to—

(I) employment;

ø(II) marriage;¿

ø(III)¿ (II) the prohibition set forth in section

408(a)(7);

ø(IV)¿ (III) sanction; or

ø(V)¿ (IV) State policy.

* * * * * * *

(xviii) The date the family first received assistance

from the State program on the basis of the most recent

application for such assistance.

(xix) Whether a self-sufficiency plan is established for

the family in accordance with section 408(b).

(xx) With respect to any child in the family, the marital status of the parents at the birth of the child, and

if the parents were not then married, whether the paternity of the child has been established.

(B) USE OF SAMPLES.—

119

(i) AUTHORITY.—A State may comply with subparagraph (A) by submitting disaggregated case record information on øa sample¿ samples of families selected

through the use of scientifically acceptable sampling

methods approved by the Secretary, except that the

Secretary may designate core data elements that must

be reported on all families.

(ii) SAMPLING AND OTHER METHODS.—The Secretary

shall provide the States with such case sampling plans

and data collection procedures as the Secretary deems

necessary to produce statistically valid estimates of

the performance of State programs øfunded under this

part¿ described in subparagraph (A). The Secretary

may develop and implement procedures for verifying

the quality of data submitted by the States.

* * * * * * *

ø(5) REPORT ON TRANSITIONAL SERVICES.—The report required by paragraph (1) for a fiscal quarter shall include the

total amount expended by the State during the quarter to provide transitional services to a family that has ceased to receive

assistance under this part because of employment, along with

a description of such services.¿

ø(6)¿ (5) REPORT ON FAMILIES RECEIVING ASSISTANCE.—The

report required by paragraph (1) for a fiscal quarter shall include for each month in the quarter—

(A) * * *

* * * * * * *

(6) REPORT ON FAMILIES THAT BECOME INELIGIBLE TO RECEIVE ASSISTANCE.—The report required by paragraph (1) for a

fiscal quarter shall include for each month in the quarter the

number of families and total number of individuals that, during the month, became ineligible to receive assistance under the

State program funded under this part (broken down by the

number of families that become so ineligible due to earnings,

changes in family composition that result in increased earnings,

sanctions, time limits, or other specified reasons).

(7) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to define the data elements and

to collect the necessary data with respect to which reports are

required by this øsubsection¿ section, and shall consult with

the Secretary of Labor øin defining the data elements with respect to programs operated with funds provided under section

403(a)(5).¿, the National Governors’ Association, the American

Public Human Services Association, the National Conference of

State Legislatures, and others in defining the data elements.

(b) ANNUAL REPORTS ON PROGRAM CHARACTERISTICS.—Not later

than 90 days after the end of fiscal year 2004 and each succeeding

fiscal year, each eligible State shall submit to the Secretary a report

on the characteristics of the State program funded under this part

and other State programs funded with qualified State expenditures

(as defined in section 409(a)(7)(B)(i)). The report shall include, with

respect to each such program, the program name, a description of

program activities, the program purpose, the program eligibility criVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00119 Fmt 6659 Sfmt 6603 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
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teria, the sources of program funding, the number of program beneficiaries, sanction policies, and any program work requirements.

(c) MONTHLY REPORTS ON CASELOAD.—Not later than 3 months

after the end of a calendar month that begins 1 year or more after

the enactment of this subsection, each eligible State shall submit to

the Secretary report on the number of families and total number of

individuals receiving assistance in the calendar month under the

State program funded under this part.

(d) ANNUAL REPORT ON PERFORMANCE IMPROVEMENT.—Beginning with fiscal year 2004, not later than January 1 of each fiscal

year, each eligible State shall submit to the Secretary a report on

achievement and improvement during the preceding fiscal year

under the numerical performance goals and measures under the

State program funded under this part with respect to each of the

matters described in section 402(a)(1)(A)(v).

ø(b)¿ (e) ANNUAL REPORTS TO THE CONGRESS BY THE SEC- RETARY.—Not later than 6 months after the end of fiscal year 1997,

øand each fiscal year thereafter¿ and by July 1 of each fiscal year

thereafter, the Secretary shall transmit to the Congress a report

describing— (1) * * *

(2) the demographic and financial characteristics of øfamilies

applying for assistance,¿ families receiving assistanceø,¿ and

families that become ineligible to receive assistance;

(3) the characteristics of each State program funded under

this part and other programs funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)); and

* * * * * * *

(f) INCREASED ANALYSIS OF STATE SINGLE AUDIT REPORTS.—

(1) IN GENERAL.—Within 3 months after a State submits to

the Secretary a report pursuant to section 7502(a)(1)(A) of title

31, United States Code, the Secretary shall analyze the report

for the purpose of identifying the extent and nature of problems

related to the oversight by the State of nongovernmental entities

with respect to contracts entered into by such entities with the

State program funded under this part, and determining what

additional actions may be appropriate to help prevent and correct the problems.

(2) INCLUSION OF PROGRAM OVERSIGHT SECTION IN ANNUAL

REPORT TO THE CONGRESS.—The Secretary shall include in

each report under subsection (a) a section on oversight of State

programs funded under this part, including findings on the extent and nature of the problems referred to in paragraph (1),

actions taken to resolve the problems, and to the extent the Secretary deems appropriate make recommendations on changes

needed to resolve the problems.

SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

(a) GRANTS FOR INDIAN TRIBES.—

(1) TRIBAL FAMILY ASSISTANCE GRANT.—

(A) IN GENERAL.—For each of fiscal years ø1997, 1998,

1999, 2000, 2001, and 2002¿ 2003 through 2007, the Secretary shall pay to each Indian tribe that has an approved

tribal family assistance plan a tribal family assistance

grant for the fiscal year in an amount equal to the amount

121

determined under subparagraph (B), which shall be reduced for a fiscal year, on a pro rata basis for each quarter, in the case of a tribal family assistance plan approved

during a fiscal year for which the plan is to be in effect,

and shall reduce the grant payable under section 403(a)(1)

to any State in which lies the service area or areas of the

Indian tribe by that portion of the amount so determined

that is attributable to expenditures by the State.

* * * * * * *

(2) GRANTS FOR INDIAN TRIBES THAT RECEIVED JOBS FUNDS.—

(A) IN GENERAL.—For each of fiscal years ø1997, 1998,

1999, 2000, 2001, and 2002¿ 2003 through 2007, the Secretary shall pay to each eligible Indian tribe that proposes

to operate a program described in subparagraph (C) a

grant in an amount equal to the amount received by the

Indian tribe in fiscal year 1994 under section 482(i) (as in

effect during fiscal year 1994).

* * * * * * *

(3) WELFARE-TO-WORK GRANTS.—

(A) * * *

(B) WELFARE-TO-WORK TRIBE.—An Indian tribe shall be

considered a welfare-to-work tribe for a fiscal year for purposes of this paragraph if the Indian tribe meets the following requirements:

(i) * * *

* * * * * * *

(iv) The Indian tribe has agreed to negotiate in good

faith with the Secretary of Health and Human Services with respect to the substance and funding of any

evaluation under section ø413(j)¿ 413(i), and to cooperate with the conduct of any such evaluation.

(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.— (1) IN GENERAL.—Any Indian tribe that desires to receive a

tribal family assistance grant shall submit to the Secretary a

3-year tribal family assistance plan that— (A) * * *

* * * * * * *

(E) identifies the employment opportunities in or near

the service area or areas of the Indian tribe and the manner in which the Indian tribe will cooperate and participate in enhancing such opportunities for recipients of assistance under the plan consistent with any applicable

State standards; øand¿

(F) applies the fiscal accountability provisions of section

5(f)(1) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450c(f)(1)), relating to the submission of a single-agency audit report required by chapter 75

of title 31, United States Codeø.¿; and

(G) provides an assurance that the State in which the

tribe is located has been consulted regarding the plan and

its design.

* * * * * * *

122

ø(f) ELIGIBILITY FOR FEDERAL LOANS.—Section 406 shall apply to

an Indian tribe with an approved tribal assistance plan in the

same manner as such section applies to a State, except that section

406(c) shall be applied by substituting ‘‘section 412(a)’’ for ‘‘section

403(a)’’.¿

ø(g)¿ (f) PENALTIES.— (1) * * *

* * * * * * *

ø(h)¿ (g) DATA COLLECTION AND REPORTING.—Section 411 shall

apply to an Indian tribe with an approved tribal family assistance

plan.

ø(i)¿ (h) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—

(1) * * *

* * * * * * *

SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

(a) * * *

* * * * * * *

(d) ANNUAL RANKING OF STATES AND REVIEW OF MOST AND

LEAST SUCCESSFUL WORK PROGRAMS.—

(1) ANNUAL RANKING OF STATES.—The Secretary shall rank

annually the States to which grants are paid under section 403

in the order of their success in placing recipients of assistance

under the State program funded under this part into ølongterm private sector jobs¿ private sector jobs, the success of the

recipients in retaining employment, the ability of the recipients

to increase their wages, reducing the overall welfare caseload,

and, when a practicable method for calculating this information becomes available, diverting individuals from formally applying to the State program and receiving assistance. In ranking States under this subsection, the Secretary shall take into

account the average number of minor children living at home

in families in the State that have incomes below the poverty

line and the amount of funding provided each State for such

families.

(2) ANNUAL REVIEW OF MOST AND LEAST SUCCESSFUL WORK

PROGRAMS.—The Secretary shall review the programs of the 3

States most recently ranked highest under paragraph (1) and

the 3 States most recently ranked lowest under paragraph (1)

that provide parents with work experience, øassistance¿ aid in

finding employment, and other work preparation activities and

support services to enable the families of such parents to leave

the program and become self-sufficient.

* * * * * * *

ø(g) REPORT ON CIRCUMSTANCES OF CERTAIN CHILDREN AND FAMILIES.—

ø(1) IN GENERAL.—Beginning 3 years after the date of the

enactment of this section, the Secretary of Health and Human

Services shall prepare and submit to the Committees on Ways

and Means and on Education and the Workforce of the House

of Representatives and to the Committees on Finance and on

Labor and Resources of the Senate annual reports that examine in detail the matters described in paragraph (2) with reVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00122 Fmt 6659 Sfmt 6601 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
123

spect to each of the following groups for the period after such

enactment:

ø(A) Individuals who were children in families that have

become ineligible for assistance under a State program

funded under this part by reason of having reached a time

limit on the provision of such assistance.

ø(B) Children born after such date of enactment to parents who, at the time of such birth, had not attained 20

years of age.

ø(C) Individuals who, after such date of enactment, became parents before attaining 20 years of age.

ø(2) MATTERS DESCRIBED.—The matters described in this

paragraph are the following:

ø(A) The percentage of each group that has dropped out

of secondary school (or the equivalent), and the percentage

of each group at each level of educational attainment.

ø(B) The percentage of each group that is employed.

ø(C) The percentage of each group that has been convicted of a crime or has been adjudicated as a delinquent.

ø(D) The rate at which the members of each group are

born, or have children, out-of-wedlock, and the percentage

of each group that is married.

ø(E) The percentage of each group that continues to participate in State programs funded under this part.

ø(F) The percentage of each group that has health insurance provided by a private entity (broken down by whether

the insurance is provided through an employer or otherwise), the percentage that has health insurance provided

by an agency of government, and the percentage that does

not have health insurance.

ø(G) The average income of the families of the members

of each group.

ø(H) Such other matters as the Secretary deems appropriate.¿

ø(h)¿ (g) FUNDING OF STUDIES AND DEMONSTRATIONS.—

(1) IN GENERAL.—Out of any money in the Treasury of the

United States not otherwise appropriated, there are appropriated $15,000,000 for each of fiscal years ø1997 through

2002¿ 2003 through 2007 for the purpose of paying—

(A) * * *

* * * * * * *

ø(i)¿ (h) CHILD POVERTY RATES.—

(1) * * *

* * * * * * *

ø(j)¿ (i) EVALUATION OF WELFARE-TO-WORK PROGRAMS.—

(1) * * *

(2) REPORTS TO THE CONGRESS.—

(A) IN GENERAL.—Subject to subparagraphs (B) and (C),

the Secretary, in consultation with the Secretary of Labor

and the Secretary of Housing and Urban Development,

shall submit to the Congress reports on the projects fundVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00123 Fmt 6659 Sfmt 6601 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
124

ed under øsection¿ sections 403(a)(5) and 412(a)(3) and on

the evaluations of the projects.

* * * * * * *

(j) PERFORMANCE IMPROVEMENT.—The Secretary, in consultation

with the National Governors’ Association, the National Conference

of State Legislatures, and the American Public Human Services Association, shall develop uniform performance measures designed to

assess the degree of effectiveness, and the degree of improvement, of

State programs funded under this part in accomplishing the purposes of this part.

(k) FUNDING FOR RESEARCH, DEMONSTRATIONS, AND TECHNICAL

ASSISTANCE.— (1) IN GENERAL.—Out of any money in the Treasury of the

United States not otherwise appropriated, there are appropriated $102,000,000 for each of fiscal years 2003 through

2007, which shall be available to the Secretary for the purpose

of conducting and supporting research and demonstration

projects by public or private entities, and providing technical

assistance to States, Indian tribal organizations, and such

other entities as the Secretary may specify that are receiving a

grant under this part, which shall be expended primarily on activities described in section 403(a)(2)(B), and which shall be in

addition to any other funds made available under this part.

(2) SET ASIDE FOR DEMONSTRATION PROJECTS FOR COORDINA- TION OF PROVISION OF CHILD WELFARE AND TANF SERVICES TO

TRIBAL FAMILIES AT RISK OF CHILD ABUSE OR NEGLECT.— (A) IN GENERAL.—Of the amounts made available under paragraph (1) for a fiscal year, $2,000,000 shall be awarded on a competitive basis to fund demonstration projects

designed to test the effectiveness of tribal governments or

tribal consortia in coordinating the provision to tribal families at risk of child abuse or neglect of child welfare services and services under tribal programs funded under this

part.

(B) USE OF FUNDS.—A grant made to such a project shall

be used—

(i) to improve case management for families eligible

for assistance from such a tribal program;

(ii) for supportive services and assistance to tribal

children in out-of-home placements and the tribal families caring for such children, including families who

adopt such children; and

(iii) for prevention services and assistance to tribal

families at risk of child abuse and neglect.

(C) REPORTS.—The Secretary may require a recipient of

funds awarded under this paragraph to provide the Secretary with such information as the Secretary deems relevant to enable the Secretary to facilitate and oversee the

administration of any project for which funds are provided

under this paragraph.

* * * * * * *

SEC. 414. STUDY BY THE CENSUS BUREAU.

ø(a) IN GENERAL.—The Bureau of the Census shall continue to

collect data on the 1992 and 1993 panels of the Survey of Income

125

and Program Participation as necessary to obtain such information

as will enable interested persons to evaluate the impact of the

amendments made by title I of the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996 on a random national

sample of recipients of assistance under State programs funded

under this part and (as appropriate) other low-income families, and

in doing so, shall pay particular attention to the issues of out-ofwedlock birth, welfare dependency, the beginning and end of welfare spells, and the causes of repeat welfare spells, and shall obtain

information about the status of children participating in such panels.¿

(a) IN GENERAL.—The Bureau of the Census shall implement a

new longitudinal survey of program dynamics, developed in consultation with the Secretary and made available to interested parties, to allow for the assessment of the outcomes of continued welfare

reform on the economic and child well-being of low-income families

with children, including those who received assistance or services

from a State program funded under this part, and, to the extent

possible, shall provide State representative samples. The content of

the survey should include such information as may be necessary to

examine the issues of out-of-wedlock childbearing, marriage, welfare

dependency, the beginning and ending of spells of assistance, work,

earnings and employment stability, and the well-being of children.

(b) APPROPRIATION.—Out of any money in the Treasury of the

United States not otherwise appropriated, there are appropriated

$10,000,000 for each of fiscal years ø1996, 1997, 1998, 1999, 2000,

2001, and 2002¿ 2003 through 2007 for payment to the Bureau of

the Census to carry out subsection (a).

* * * * * * *

SEC. 418. FUNDING FOR CHILD CARE.

(a) GENERAL CHILD CARE ENTITLEMENT.— (1) * * *

* * * * * * *

(3) APPROPRIATION.—For grants under this section, there are

appropriated— (A) * * *

* * * * * * *

ø(F) $2,717,000,000 for fiscal year 2002.¿

(F) $2,717,000,000 for each of fiscal years 2002 through

2007.

* * * * * * *

SEC. 419. DEFINITIONS.

As used in this part:

(1) * * *

* * * * * * *

(6) ASSISTANCE.—

(A) IN GENERAL.—The term ‘‘assistance’’ means payment,

by cash, voucher, or other means, to or for an individual

or family for the purpose of meeting a subsistence need of

the individual or family (including food, clothing, shelter,

and related items, but not including costs of transportation

or child care).

126

(B) EXCEPTION.—The term ‘‘assistance’’ does not include

a payment described in subparagraph (A) to or for an individual or family on a short-term, nonrecurring basis (as defined by the State in accordance with regulations prescribed by the Secretary).

* * * * * * *

PART C—FATHERHOOD PROGRAM

SEC. 441. FINDINGS AND PURPOSES.

(a) FINDINGS.—The Congress finds that there is substantial evidence strongly indicating the urgent need to promote and support

involved, committed, and responsible fatherhood, and to encourage

and support healthy marriages between parents raising children, including data demonstrating the following:

(1) In approximately 90 percent of cases where a parent is absent, that parent is the father.

(2) By some estimates, 60 percent of children born in the

1990’s will spend a significant portion of their childhood in a

home without a father.

(3) Nearly 75 percent of children in single-parent homes will

experience poverty before they are 11 years old, compared with

only 20 percent of children in 2-parent families.

(4) Low income is positively correlated with children’s difficulties with education, social adjustment, and delinquency,

and single-parent households constitute a disproportionate

share of low-income households.

(5) Where families (whether intact or with a parent absent)

are living in poverty, a significant factor is the father’s lack of

job skills.

(6) Children raised in 2-parent married families, on average,

fare better as a group in key areas, including better school performance, reduced rates of substance abuse, crime, and delinquency, fewer health, emotional, and behavioral problems,

lower rates of teenage sexual activity, less risk of abuse or neglect, and lower risk of teen suicide.

(7) Committed and responsible fathering during infancy and

early childhood contributes to the development of emotional security, curiosity, and math and verbal skills.

(8) An estimated 24,000,000 children (33.5 percent) live apart

from their biological father.

(9) A recent national survey indicates that of all children

under age 18 not living with their biological father, 29 percent

had not seen their father even once in the last 12 months.

(b) PURPOSES.—The purposes of this part are:

(1) To provide for projects and activities by public entities

and by nonprofit community entities, including religious organizations, designed to test promising approaches to accomplishing the following objectives:

(A) Promoting responsible, caring, and effective parenting

through counseling, mentoring, and parenting education,

dissemination of educational materials and information on

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127

ment, including the positive involvement of nonresident fathers, and other methods.

(B) Enhancing the abilities and commitment of unemployed or low-income fathers to provide material support

for their families and to avoid or leave welfare programs by

assisting them to take full advantage of education, job

training, and job search programs, to improve work habits

and work skills, to secure career advancement by activities

such as outreach and information dissemination, coordination, as appropriate, with employment services and job

training programs, including the One-Stop delivery system

established under title I of the Workforce Investment Act of

1998, encouragement and support of timely payment of current child support and regular payment toward past due

child support obligations in appropriate cases, and other

methods.

(C) Improving fathers’ ability to effectively manage family business affairs by means such as education, counseling,

and mentoring in matters including household management, budgeting, banking, and handling of financial transactions, time management, and home maintenance.

(D) Encouraging and supporting healthy marriages and

married fatherhood through such activities as premarital

education, including the use of premarital inventories, marriage preparation programs, skills-based marriage education programs, marital therapy, couples counseling, divorce education and reduction programs, divorce mediation

and counseling, relationship skills enhancement programs,

including those designed to reduce child abuse and domestic violence, and dissemination of information about the

benefits of marriage for both parents and children.

(2) Through the projects and activities described in paragraph (1), to improve outcomes for children with respect to

measures such as increased family income and economic security, improved school performance, better health, improved emotional and behavioral stability and social adjustment, and reduced risk of delinquency, crime, substance abuse, child abuse

and neglect, teen sexual activity, and teen suicide.

(3) To evaluate the effectiveness of various approaches and to

disseminate findings concerning outcomes and other information in order to encourage and facilitate the replication of effective approaches to accomplishing these objectives.

SEC. 442. DEFINITIONS.

In this part, the terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ have the meanings given them in subsections (e) and (l), respectively, of section 4 of the Indian Self-Determination and Education

Assistance Act.

SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.

(a) IN GENERAL.—The Secretary may make grants for fiscal years

2003 through 2007 to public and nonprofit community entities, including religious organizations, and to Indian tribes and tribal organizations, for demonstration service projects and activities designed to test the effectiveness of various approaches to accomplish

the objectives specified in section 441(b)(1).

128

(b) ELIGIBILITY CRITERIA FOR FULL SERVICE GRANTS.—In order to

be eligible for a grant under this section, except as specified in subsection (c), an entity shall submit an application to the Secretary

containing the following:

(1) PROJECT DESCRIPTION.—A statement including— (A) a description of the project and how it will be carried

out, including the geographical area to be covered and the

number and characteristics of clients to be served, and how

it will address each of the 4 objectives specified in section

441(b)(1); and

(B) a description of the methods to be used by the entity

or its contractor to assess the extent to which the project

was successful in accomplishing its specific objectives and

the general objectives specified in section 441(b)(1).

(2) EXPERIENCE AND QUALIFICATIONS.—A demonstration of

ability to carry out the project, by means such as demonstration

of experience in successfully carrying out projects of similar design and scope, and such other information as the Secretary

may find necessary to demonstrate the entity’s capacity to carry

out the project, including the entity’s ability to provide the nonFederal share of project resources.

(3) ADDRESSING CHILD ABUSE AND NEGLECT AND DOMESTIC

VIOLENCE.—A description of how the entity will assess for the

presence of, and intervene to resolve, domestic violence and

child abuse and neglect, including how the entity will coordinate with State and local child protective service and domestic

violence programs.

(4) ADDRESSING CONCERNS RELATING TO SUBSTANCE ABUSE

AND SEXUAL ACTIVITY.—A commitment to make available to

each individual participating in the project education about alcohol, tobacco, and other drugs, and about the health risks associated with abusing such substances, and information about

diseases and conditions transmitted through substance abuse

and sexual contact, including HIV/AIDS, and to coordinate

with providers of services addressing such problems, as appropriate.

(5) COORDINATION WITH SPECIFIED PROGRAMS.—An undertaking to coordinate, as appropriate, with State and local entities responsible for the programs under parts A, B, and D of

this title, including programs under title I of the Workforce Investment Act of 1998 (including the One-Stop delivery system),

and such other programs as the Secretary may require.

(6) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records, make such reports, and cooperate with such

reviews or audits as the Secretary may find necessary for purposes of oversight of project activities and expenditures.

(7) SELF-INITIATED EVALUATION.—If the entity elects to contract for independent evaluation of the project (part or all of the

cost of which may be paid for using grant funds), a commitment to submit to the Secretary a copy of the evaluation report

within 30 days after completion of the report and not more than

1 year after completion of the project.

(8) COOPERATION WITH SECRETARY’S OVERSIGHT AND EVALUA- TION.—An agreement to cooperate with the Secretary’s evaluation of projects assisted under this section, by means including

129

random assignment of clients to service recipient and control

groups, if determined by the Secretary to be appropriate, and

affording the Secretary access to the project and to project-related records and documents, staff, and clients.

(c) ELIGIBILITY CRITERIA FOR LIMITED PURPOSE GRANTS.—In

order to be eligible for a grant under this section in an amount

under $25,000 per fiscal year, an entity shall submit an application

to the Secretary containing the following:

(1) PROJECT DESCRIPTION.—A description of the project and

how it will be carried out, including the number and characteristics of clients to be served, the proposed duration of the

project, and how it will address at least 1 of the 4 objectives

specified in section 441(b)(1).

(2) QUALIFICATIONS.—Such information as the Secretary may

require as to the capacity of the entity to carry out the project,

including any previous experience with similar activities.

(3) COORDINATION WITH RELATED PROGRAMS.—As required by

the Secretary in appropriate cases, an undertaking to coordinate and cooperate with State and local entities responsible for

specific programs relating to the objectives of the project including, as appropriate, jobs programs and programs serving children and families.

(4) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records, make such reports, and cooperate with such

reviews or audits as the Secretary may find necessary for purposes of oversight of project activities and expenditures.

(5) COOPERATION WITH SECRETARY’S OVERSIGHT AND EVALUATION.—An agreement to cooperate with the Secretary’s evaluation of projects assisted under this section, by means including

affording the Secretary access to the project and to project-related records and documents, staff, and clients.

(d) CONSIDERATIONS IN AWARDING GRANTS.—

(1) DIVERSITY OF PROJECTS.—In awarding grants under this

section, the Secretary shall seek to achieve a balance among entities of differing sizes, entities in differing geographic areas,

entities in urban and in rural areas, and entities employing differing methods of achieving the purposes of this section, including working with the State agency responsible for the administration of part D to help fathers satisfy child support arrearage

obligations.

(2) PREFERENCE FOR PROJECTS SERVING LOW-INCOME FATHERS.—In awarding grants under this section, the Secretary

may give preference to applications for projects in which a majority of the clients to be served are low-income fathers.

(e) FEDERAL SHARE.—

(1) IN GENERAL.—Grants for a project under this section for

a fiscal year shall be available for a share of the cost of such

project in such fiscal year equal to—

(A) up to 80 percent (or up to 90 percent, if the entity

demonstrates to the Secretary’s satisfaction circumstances

limiting the entity’s ability to secure non-Federal resources)

in the case of a project under subsection (b); and

(B) up to 100 percent, in the case of a project under subsection (c).

130

(2) NON-FEDERAL SHARE.—The non-Federal share may be in

cash or in kind. In determining the amount of the non-Federal

share, the Secretary may attribute fair market value to goods,

services, and facilities contributed from non-Federal sources.

SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION PROJECTS.

(a) IN GENERAL.—The Secretary may make grants under this section for fiscal years 2003 through 2007 to eligible entities (as specified in subsection (b)) for 2 multicity, multistate projects demonstrating approaches to achieving the objectives specified in section

441(b)(1). One of the projects shall test the use of married couples

to deliver program services.

(b) ELIGIBLE ENTITIES.—An entity eligible for a grant under this

section must be a national nonprofit fatherhood promotion organization that meets the following requirements:

(1) EXPERIENCE WITH FATHERHOOD PROGRAMS.—The organization must have substantial experience in designing and successfully conducting programs that meet the purposes described

in section 441.

(2) EXPERIENCE WITH MULTICITY, MULTISTATE PROGRAMS AND

GOVERNMENT COORDINATION.—The organization must have experience in simultaneously conducting such programs in more

than 1 major metropolitan area in more than 1 State and in

coordinating such programs, where appropriate, with State and

local government agencies and private, nonprofit agencies (including community-based and religious organizations), including State or local agencies responsible for child support enforcement and workforce development.

(c) APPLICATION REQUIREMENTS.—In order to be eligible for a

grant under this section, an entity must submit to the Secretary an

application that includes the following:

(1) QUALIFICATIONS.— (A) ELIGIBLE ENTITY.—A demonstration that the entity

meets the requirements of subsection (b).

(B) OTHER.—Such other information as the Secretary

may find necessary to demonstrate the entity’s capacity to

carry out the project, including the entity’s ability to provide the non-Federal share of project resources.

(2) PROJECT DESCRIPTION.—A description of and commitments concerning the project design, including the following:

(A) IN GENERAL.—A detailed description of the proposed

project design and how it will be carried out, which shall—

(i) provide for the project to be conducted in at least

3 major metropolitan areas;

(ii) state how it will address each of the 4 objectives

specified in section 441(b)(1);

(iii) demonstrate that there is a sufficient number of

potential clients to allow for the random selection of individuals to participate in the project and for comparisons with appropriate control groups composed of individuals who have not participated in such projects;

and

(iv) demonstrate that the project is designed to direct

a majority of project resources to activities serving lowincome fathers (but the project need not make services

available on a means-tested basis).

131

(B) OVERSIGHT, EVALUATION, AND ADJUSTMENT COMPONENT.—An agreement that the entity—

(i) in consultation with the evaluator selected pursuant to section 445, and as required by the Secretary,

will modify the project design, initially and (if necessary) subsequently throughout the duration of the

project, in order to facilitate ongoing and final oversight and evaluation of project operation and outcomes

(by means including, to the maximum extent feasible,

random assignment of clients to service recipient and

control groups), and to provide for mid-course adjustments in project design indicated by interim evaluations;

(ii) will submit to the Secretary revised descriptions

of the project design as modified in accordance with

clause (i); and

(iii) will cooperate fully with the Secretary’s ongoing

oversight and ongoing and final evaluation of the

project, by means including affording the Secretary access to the project and to project-related records and

documents, staff, and clients.

(3) ADDRESSING CHILD ABUSE AND NEGLECT AND DOMESTIC

VIOLENCE.—A description of how the entity will assess for the

presence of, and intervene to resolve, domestic violence and

child abuse and neglect, including how the entity will coordinate with State and local child protective service and domestic

violence programs.

(4) ADDRESSING CONCERNS RELATING TO SUBSTANCE ABUSE

AND SEXUAL ACTIVITY.—A commitment to make available to

each individual participating in the project education about alcohol, tobacco, and other drugs, and about the health risks associated with abusing such substances, and information about

diseases and conditions transmitted through substance abuse

and sexual contact, including HIV/AIDS, and to coordinate

with providers of services addressing such problems, as appropriate.

(5) COORDINATION WITH SPECIFIED PROGRAMS.—An undertaking to coordinate, as appropriate, with State and local entities responsible for the programs funded under parts A, B, and

D of this title, programs under title I of the Workforce Investment Act of 1998 (including the One-Stop delivery system), and

such other programs as the Secretary may require.

(6) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records, make such reports, and cooperate with such

reviews or audits (in addition to those required under the preceding provisions of paragraph (2)) as the Secretary may find

necessary for purposes of oversight of project activities and expenditures.

(d) FEDERAL SHARE.—

(1) IN GENERAL.—Grants for a project under this section for

a fiscal year shall be available for up to 80 percent of the cost

of such project in such fiscal year.

(2) NON-FEDERAL SHARE.—The non-Federal share may be in

cash or in kind. In determining the amount of the non-Federal

132

share, the Secretary may attribute fair market value to goods,

services, and facilities contributed from non-Federal sources.

SEC. 445. EVALUATION.

(a) IN GENERAL.—The Secretary, directly or by contract or cooperative agreement, shall evaluate the effectiveness of service projects

funded under sections 443 and 444 from the standpoint of the purposes specified in section 441(b)(1).

(b) EVALUATION METHODOLOGY.—Evaluations under this section

shall—

(1) include, to the maximum extent feasible, random assignment of clients to service delivery and control groups and other

appropriate comparisons of groups of individuals receiving and

not receiving services;

(2) describe and measure the effectiveness of the projects in

achieving their specific project goals; and

(3) describe and assess, as appropriate, the impact of such

projects on marriage, parenting, domestic violence, child abuse

and neglect, money management, employment and earnings,

payment of child support, and child well-being, health, and

education.

(c) EVALUATION REPORTS.—The Secretary shall publish the following reports on the results of the evaluation:

(1) An implementation evaluation report covering the first 24

months of the activities under this part to be completed by 36

months after initiation of such activities.

(2) A final report on the evaluation to be completed by September 30, 2010.

SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.

The Secretary is authorized, by grant, contract, or cooperative

agreement, to carry out projects and activities of national significance relating to fatherhood promotion, including—

(1) COLLECTION AND DISSEMINATION OF INFORMATION.—Assisting States, communities, and private entities, including religious organizations, in efforts to promote and support marriage

and responsible fatherhood by collecting, evaluating, developing, and making available (through the Internet and by other

means) to all interested parties information regarding approaches to accomplishing the objectives specified in section

441(b)(1).

(2) MEDIA CAMPAIGN.—Developing, promoting, and distributing to interested States, local governments, public agencies,

and private nonprofit organizations, including charitable and

religious organizations, a media campaign that promotes and

encourages involved, committed, and responsible fatherhood

and married fatherhood.

(3) TECHNICAL ASSISTANCE.—Providing technical assistance,

including consultation and training, to public and private entities, including community organizations and faith-based organizations, in the implementation of local fatherhood promotion

programs.

(4) RESEARCH.—Conducting research related to the purposes

of this part.

133

SEC. 447. NONDISCRIMINATION.

The projects and activities assisted under this part shall be available on the same basis to all fathers and expectant fathers able to

benefit from such projects and activities, including married and unmarried fathers and custodial and noncustodial fathers, with particular attention to low-income fathers, and to mothers and expectant mothers on the same basis as to fathers.

SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RESERVATION FOR

CERTAIN PURPOSE.

(a) AUTHORIZATION.—There are authorized to be appropriated $20,000,000 for each of fiscal years 2003 through 2007 to carry out

the provisions of this part.

(b) RESERVATION.—Of the amount appropriated under this section

for each fiscal year, not more than 15 percent shall be available for

the costs of the multicity, multicounty, multistate demonstration

projects under section 444, evaluations under section 445, and

projects of national significance under section 446.

PART D—CHILD SUPPORT AND ESTABLISHMENT OF PATERNITY

* * * * * * *

DUTIES OF THE SECRETARY

SEC. 452. (a)***

* * * * * * *

(j) Out of any money in the Treasury of the United States not

otherwise appropriated, there is hereby appropriated to the Secretary for each fiscal year an amount equal to 1 percent of the total

amount paid to the Federal Government pursuant to a plan approved under this part during the immediately preceding fiscal

year (as determined on the basis of the most recent reliable data

available to the Secretary as of the end of the third calendar quarter following the end of such preceding fiscal year), or the amount

appropriated under this paragraph for fiscal year 2002, whichever

is greater, which shall be available for use by the Secretary, either

directly or through grants, contracts, or interagency agreements,

for— (1) * * *

* * * * * * *

(k)(1) If the Secretary receives a certification by a State agency

in accordance with the requirements of section 454(31) that an individual owes arrearages of child support in an amount exceeding

ø$5,000¿ $2,500, the Secretary shall transmit such certification to

the Secretary of State for action (with respect to denial, revocation,

or limitation of passports) pursuant to paragraph (2).

* * * * * * *

FEDERAL PARENT LOCATOR SERVICE

SEC. 453. (a)***

* * * * * * *

(j) INFORMATION COMPARISONS AND OTHER DISCLOSURES.— (1) * * *

* * * * * * *

134

(7) INFORMATION COMPARISONS AND DISCLOSURE TO ASSIST IN

ADMINISTRATION OF UNEMPLOYMENT COMPENSATION PRO- GRAMS.—

(A) IN GENERAL.—If a State agency responsible for the

administration of an unemployment compensation program

under Federal or State law transmits to the Secretary the

name and social security account number of an individual,

the Secretary shall, if the information in the National Directory of New Hires indicates that the individual may be

employed, disclose to the State agency the name, address,

and employer identification number of any putative employer of the individual, subject to this paragraph.

(B) CONDITION ON DISCLOSURE.—The Secretary shall

make a disclosure under subparagraph (A) only to the extent that the Secretary determines that the disclosure would

not interfere with the effective operation of the program

under this part.

(C) USE OF INFORMATION.—A State agency may use information provided under this paragraph only for purposes of

administering a program referred to in subparagraph (A).

* * * * * * *

(o) USE OF SET-ASIDE FUNDS.—Out of any money in the Treasury

of the United States not otherwise appropriated, there is hereby

appropriated to the Secretary for each fiscal year an amount equal

to 2 percent of the total amount paid to the Federal Government

pursuant to a plan approved under this part during the immediately preceding fiscal year (as determined on the basis of the

most recent reliable data available to the Secretary as of the end

of the third calendar quarter following the end of such preceding

fiscal year), or the amount appropriated under this paragraph for

fiscal year 2002, whichever is greater, which shall be available for

use by the Secretary, either directly or through grants, contracts,

or interagency agreements, for operation of the Federal Parent Locator Service under this section, to the extent such costs are not

recovered through user fees. Amounts appropriated under this subsection øfor each of fiscal years 1997 through 2001¿ shall remain

available until expended.

* * * * * * *

STATE PLAN FOR CHILD AND SPOUSAL SUPPORT

SEC. 454. A State plan for child and spousal support must—

(1) * * *

* * * * * * *

(6) provide that—

(A) * * *

(B)(i) an application fee for furnishing such services

shall be imposed on an individual, other than an individual receiving assistance under a State program funded

under part A or E, or under a State plan approved under

title XIX, or who is required by the State to cooperate with

the State agency administering the program under this

part pursuant to subsection (l) or (m) of section 6 of the

Food Stamp Act of 1977, and shall be paid by the indiVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00134 Fmt 6659 Sfmt 6601 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
135

vidual applying for such services, or recovered from the absent parent, or paid by the State out of its own funds (the

payment of which from State funds shall not be considered

as an administrative cost of the State for the operation of

the plan, and shall be considered income to the program),

the amount of which ø(i)¿ (I) will not exceed $25 (or such

higher or lower amount (which shall be uniform for all

States) as the Secretary may determine to be appropriate

for any fiscal year to reflect increases or decreases in administrative costs), and ø(ii)¿ (II) may vary among such individuals on the basis of ability to pay (as determined by

the State); and

(ii) in the case of an individual who has never received

assistance under a State program funded under part A and

for whom the State has collected at least $500 of support,

the State shall impose an annual fee of $25 for each case

in which services are furnished, which shall be retained by

the State from support collected on behalf of the individual

(but not from the 1st $500 so collected), paid by the individual applying for the services, recovered from the absent

parent, or paid by the State out of its own funds (the payment of which from State funds shall not be considered as

an administrative cost of the State for the operation of the

plan, and shall be considered income to the program);

* * * * * * *

(31) provide that the State agency will have in effect a procedure for certifying to the Secretary, for purposes of the procedure under section 452(k), determinations that individuals owe

arrearages of child support in an amount exceeding ø$5,000¿

$2,500, under which procedure—

(A) * * *

* * * * * * *

SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

(a) IN GENERAL.—Subject to subsections (d) and (e), an amount

collected on behalf of a family as support by a State pursuant to

a plan approved under this part shall be distributed as follows:

(1) FAMILIES RECEIVING ASSISTANCE.—In the case of a family

receiving assistance from the State, the State shall—

(A) pay to the Federal Government the Federal share of

the amount so collected subject to paragraph (7); and

(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE.—In the

case of a family that formerly received assistance from the

State:

(A) * * *

(B) PAYMENTS OF ARREARAGES.—To the extent that the

amount so collected exceeds the amount required to be

paid to the family for the month in which collected, the

State shall, except as provided in paragraph (8), distribute

the amount so collected as follows:

(i) * * *

* * * * * * *

136

ø(3) FAMILIES THAT NEVER RECEIVED ASSISTANCE.—In the

case of any other family, the State shall distribute the amount

so collected to the family.¿

(3) FAMILIES THAT NEVER RECEIVED ASSISTANCE.—In the case

of any other family, the State shall distribute to the family the

portion of the amount so collected that remains after withholding any fee pursuant to section 454(6)(B)(ii).

* * * * * * *

(7) FEDERAL MATCHING FUNDS FOR LIMITED PASS THROUGH

OF CHILD SUPPORT PAYMENTS TO FAMILIES RECEIVING TANF.—

Notwithstanding paragraph (1), a State shall not be required to

pay to the Federal Government the Federal share of an amount

collected during a month on behalf of a family that is a recipient of assistance under the State program funded under part A,

to the extent that—

(A) the State distributes the amount to the family;

(B) the total of the amounts so distributed to the family

during the month—

(i) exceeds the amount (if any) that, as of December

31, 2001, was required under State law to be distributed to a family under paragraph (1)(B); and

(ii) does not exceed the greater of—

(I) $100; or

(II) $50 plus the amount described in clause (i);

and

(C) the amount is disregarded in determining the amount

and type of assistance provided to the family under the

State program funded under part A.

(8) STATE OPTION TO PASS THROUGH ALL CHILD SUPPORT PAYMENTS TO FAMILIES THAT FORMERLY RECEIVED TANF.—In lieu of

applying paragraph (2) to any family described in paragraph

(2), a State may distribute to the family any amount collected

during a month on behalf of the family.

* * * * * * *

SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING, GARNISHMENT, AND SIMILAR PROCEEDINGS

FOR ENFORCEMENT OF CHILD SUPPORT AND ALIMONY

OBLIGATIONS.

(a) * * *

* * * * * * *

(h) MONEYS SUBJECT TO PROCESS.—

(1) IN GENERAL.—Subject to paragraph (2), moneys payable

to an individual which are considered to be based upon remuneration for employment, for purposes of this section—

(A) consist of—

(i) * * *

(ii) periodic benefits (including a periodic benefit as

defined in section 228(h)(3)) or other payments— (I) * * *

* * * * * * *

(V) by the Secretary of Veterans Affairs as compensation for a service-connected disability paid

by the Secretary to a former member of the Armed

137

Forces øwho is in receipt of retired or retainer pay

if the former member has waived a portion of the

retired or retainer pay in order to receive such

compensation¿;

* * * * * * *

(3) LIMITATIONS WITH RESPECT TO COMPENSATION PAID TO

VETERANS FOR SERVICE-CONNECTED DISABILITIES.—Notwithstanding any other provision of this section:

(A) Compensation described in paragraph (1)(A)(ii)(V)

shall not be subject to withholding pursuant to this

section—

(i) for payment of alimony; or

(ii) for payment of child support if the individual is

fewer than 60 days in arrears in payment of the support.

(B) Not more than 50 percent of any payment of compensation described in paragraph (1)(A)(ii)(V) may be withheld pursuant to this section.

* * * * * * *

COLLECTION OF PAST-DUE SUPPORT FROM FEDERAL TAX REFUNDS

SEC. 464. (a)(1)***

(2)(A) Upon receiving notice from a State agency administering

a plan approved under this part that a named individual owes

past-due support ø(as that term is defined for purposes of this

paragraph under subsection (c))¿ which such State has agreed to

collect under section 454(4)(A)(ii), and that the State agency has

sent notice to such individual in accordance with paragraph (3)(A),

the Secretary of the Treasury shall determine whether any

amounts, as refunds of Federal taxes paid, are payable to such individual (regardless of whether such individual filed a tax return

as a married or unmarried individual). If the Secretary of the

Treasury finds that any such amount is payable, he shall withhold

from such refunds an amount equal to such past-due support, and

shall concurrently send notice to such individual that the withholding has been made, including in or with such notice a notification to any other person who may have filed a joint return with

such individual of the steps which such other person may take in

order to secure his or her proper share of the refund. The Secretary

of the Treasury shall pay the amount withheld to the State agency,

and the State shall pay to the Secretary of the Treasury any fee

imposed by the Secretary of the Treasury to cover the costs of the

withholding and any required notification. The State agency shall,

subject to paragraph (3)(B), distribute such amount to or on behalf

of the child to whom the support was owed in accordance with section 457. This subsection may be executed by the Secretary of the

Department of the Treasury or his designee.

* * * * * * *

(c)ø(1) Except as provided in paragraph (2), as used in¿ In this

part the term ‘‘past-due support’’ means the amount of a delinquency, determined under a court order, or an order of an administrative process established under State law, for support and mainVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00137 Fmt 6659 Sfmt 6601 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
138

tenance of a child (whether or not a minor), or of a child (whether

or not a minor) and the parent with whom the child is living.

ø(2) For purposes of subsection (a)(2), the term ‘‘past-due support’’ means only past-due support owed to or on behalf of a qualified child (or a qualified child and the parent with whom the child

is living if the same support order includes support for the child

and the parent).

ø(3) For purposes of paragraph (2), the term ‘‘qualified child’’ means a child— ø(A) who is a minor; or

ø(B)(i) who, while a minor, was determined to be disabled

under title II or XVI; and

ø(ii) for whom an order of support is in force.¿

* * * * * * *

REQUIREMENT OF STATUTORILY PRESCRIBED PROCEDURES TO

IMPROVE EFFECTIVENESS OF CHILD SUPPORT ENFORCEMENT

SEC. 466. (a) In order to satisfy section 454(20)(A), each State

must have in effect laws requiring the use of the following procedures, consistent with this section and with regulations of the Secretary, to increase the effectiveness of the program which the State

administers under this part:

(1) * * *

* * * * * * *

(10) REVIEW AND ADJUSTMENT OF SUPPORT ORDERS UPON RE- QUEST.—

(A) 3-YEAR CYCLE.— (i) IN GENERAL.—Procedures under which every 3

years (or such shorter cycle as the State may determine), upon the request of either øparent, or,¿ parent

or if there is an assignment under part A, øupon the

request of the State agency under the State plan or of

either parent,¿ the State shall with respect to a support order being enforced under this part, taking into

account the best interests of the child involved— (I) * * *

* * * * * * *

TITLE XI—GENERAL PROVISIONS, PEER REVIEW, AND

ADMINISTRATIVE SIMPLIFICATION

* * * * * * *

PART A—GENERAL PROVISIONS

* * * * * * *

SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS, GUAM, AND AMERICAN SAMOA; LIMITATION ON

TOTAL PAYMENTS.

(a) LIMITATION ON TOTAL PAYMENTS TO EACH TERRITORY.— (1) * * *

(2) CERTAIN PAYMENTS DISREGARDED.—Paragraph (1) of this

subsection shall be applied without regard to any payment

made under section 403(a)(2), 403(a)(4), 403(a)(5), ø406,¿ or

413(f).

139

(b) ENTITLEMENT TO MATCHING GRANT.—

(1) * * *

(2) APPROPRIATION.—Out of any money in the Treasury of

the United States not otherwise appropriated, there are appropriated for fiscal years ø1997 through 2002¿ 2003 through

2007, such sums as are necessary for grants under this paragraph.

* * * * * * *

DEMONSTRATION PROJECTS

SEC. 1130. (a) AUTHORITY TO APPROVE DEMONSTRATION

PROJECTS.—

(1) * * *

(2) LIMITATION.—The Secretary may authorize ønot more

than 10¿ demonstration projects under paragraph (1) in each

of fiscal years 1998 through ø2002¿ 2007.

* * * * * * *

(b) WAIVER AUTHORITY.—The Secretary may waive compliance

with any requirement of part B or E of title IV which (if applied)

would prevent a State from carrying out a demonstration project

under this section or prevent the State from effectively achieving

the purpose of such a project, except that the Secretary may not

waive—

(1) any provision of section 427 (as in effect before April 1,

1996), section ø422(b)(9)¿ 422(b)(10) (as in effect after such

date), or section 479; or

* * * * * * *

(h) NO LIMIT ON NUMBER OF STATES THAT MAY BE GRANTED

WAIVERS TO CONDUCT SAME OR SIMILAR DEMONSTRATION

PROJECTS.—The Secretary shall not refuse to grant a waiver to a

State under this section on the grounds that a purpose of the waiver

or of the demonstration project for which the waiver is necessary

would be the same as or similar to a purpose of another waiver or

project that is or may be conducted under this section.

(i) NO LIMIT ON NUMBER OF WAIVERS GRANTED TO, OR DEMONSTRATION PROJECTS THAT MAY BE CONDUCTED BY, A SINGLE

STATE.—The Secretary shall not impose any limit on the number of

waivers that may be granted to a State, or the number of demonstration projects that a State may be authorized to conduct, under

this section.

(j) STREAMLINED PROCESS FOR CONSIDERATION OF AMENDMENTS

AND EXTENSIONS.—The Secretary shall develop a streamlined process for consideration of amendments and extensions proposed by

States to demonstration projects conducted under this section.

(k) AVAILABILITY OF REPORTS.—The Secretary shall make available to any State or other interested party any report provided to

the Secretary under subsection (f)(2), and any evaluation or report

made by the Secretary with respect to a demonstration project conducted under this section, with a focus on information that may

promote best practices and program improvements.

* * * * * * *

140

TITLE XVI—SUPPLEMENTAL SECURITY INCOME FOR THE

AGED, BLIND, AND DISABLED

* * * * * * *

PART B—PROCEDURAL AND GENERAL PROVISIONS

ADMINISTRATION

SEC. 1633. (a)***

* * * * * * *

(e)(1) The Commissioner of Social Security shall review determinations, made by State agencies pursuant to subsection (a) in

connection with applications for benefits under this title on the

basis of blindness or disability, that individuals who have attained

18 years of age are blind or disabled as of a specified onset date.

The Commissioner of Social Security shall review such a determination before any action is taken to implement the determination.

(2)(A) In carrying out paragraph (1), the Commissioner of Social

Security shall review— (i) at least 20 percent of all determinations referred to in

paragraph (1) that are made in fiscal year 2003;

(ii) at least 40 percent of all such determinations that are

made in fiscal year 2004; and

(iii) at least 50 percent of all such determinations that are

made in fiscal year 2005 or thereafter.

(B) In carrying out subparagraph (A), the Commissioner of Social

Security shall, to the extent feasible, select for review the determinations which the Commissioner of Social Security identifies as being

the most likely to be incorrect.

* * * * * * *

PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY

RECONCILIATION ACT OF 1996

* * * * * * *

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY

FAMILIES

Sec. 101. Findings.

* * * * * * *

Sec. 117. Fatherhood program.

* * * * * * *

TITLE I—BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY

FAMILIES

* * * * * * *

SEC. 117. FATHERHOOD PROGRAM.

(a) IN GENERAL.—Title IV (42 U.S.C. 601–679b) is amended by

inserting after part B the following:

141

‘‘PART C—FATHERHOOD PROGRAM

‘‘SEC. 441. FINDINGS AND PURPOSES.

‘‘(a) FINDINGS.—The Congress finds that there is substantial evidence strongly indicating the urgent need to promote and support

involved, committed, and responsible fatherhood, and to encourage

and support healthy marriages between parents raising children, including data demonstrating the following: ‘‘(1) In approximately 90 percent of cases where a parent is

absent, that parent is the father. ‘‘(2) By some estimates, 60 percent of children born in the

1990’s will spend a significant portion of their childhood in a

home without a father. ‘‘(3) Nearly 75 percent of children in single-parent homes will

experience poverty before they are 11 years old, compared with

only 20 percent of children in 2-parent families. ‘‘(4) Low income is positively correlated with children’s difficulties with education, social adjustment, and delinquency,

and single-parent households constitute a disproportionate

share of low-income households. ‘‘(5) Where families (whether intact or with a parent absent)

are living in poverty, a significant factor is the father’s lack of

job skills. ‘‘(6) Children raised in 2-parent married families, on average,

fare better as a group in key areas, including better school performance, reduced rates of substance abuse, crime, and delinquency, fewer health, emotional, and behavioral problems,

lower rates of teenage sexual activity, less risk of abuse or neglect, and lower risk of teen suicide. ‘‘(7) Committed and responsible fathering during infancy and

early childhood contributes to the development of emotional security, curiosity, and math and verbal skills.

‘‘(8) An estimated 24,000,000 children (33.5 percent) live

apart from their biological father. ‘‘(9) A recent national survey indicates that of all children

under age 18 not living with their biological father, 29 percent

had not seen their father even once in the last 12 months. ‘‘(b) PURPOSES.—The purposes of this part are:

‘‘(1) To provide for projects and activities by public entities

and by nonprofit community entities, including religious organizations, designed to test promising approaches to accomplishing the following objectives:

‘‘(A) Promoting responsible, caring, and effective parenting through counseling, mentoring, and parenting education, dissemination of educational materials and information on parenting skills, encouragement of positive father involvement, including the positive involvement of nonresident fathers, and other methods.

‘‘(B) Enhancing the abilities and commitment of unemployed or low-income fathers to provide material support

for their families and to avoid or leave welfare programs by

assisting them to take full advantage of education, job

training, and job search programs, to improve work habits

and work skills, to secure career advancement by activities

such as outreach and information dissemination, coordinaVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00141 Fmt 6659 Sfmt 6603 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
142

tion, as appropriate, with employment services and job

training programs, including the One-Stop delivery system

established under title I of the Workforce Investment Act of

1998, encouragement and support of timely payment of current child support and regular payment toward past due

child support obligations in appropriate cases, and other

methods.

‘‘(C) Improving fathers’ ability to effectively manage family business affairs by means such as education, counseling,

and mentoring in matters including household management, budgeting, banking, and handling of financial transactions, time management, and home maintenance.

‘‘(D) Encouraging and supporting healthy marriages and

married fatherhood through such activities as premarital

education, including the use of premarital inventories, marriage preparation programs, skills-based marriage education programs, marital therapy, couples counseling, divorce education and reduction programs, divorce mediation

and counseling, relationship skills enhancement programs,

including those designed to reduce child abuse and domestic violence, and dissemination of information about the

benefits of marriage for both parents and children.

‘‘(2) Through the projects and activities described in paragraph (1), to improve outcomes for children with respect to

measures such as increased family income and economic security, improved school performance, better health, improved emotional and behavioral stability and social adjustment, and reduced risk of delinquency, crime, substance abuse, child abuse

and neglect, teen sexual activity, and teen suicide.

‘‘(3) To evaluate the effectiveness of various approaches and

to disseminate findings concerning outcomes and other information in order to encourage and facilitate the replication of effective approaches to accomplishing these objectives.

‘‘SEC. 442. DEFINITIONS.

‘‘In this part, the terms ‘Indian tribe’ and ‘tribal organization’

have the meanings given them in subsections (e) and (l), respectively, of section 4 of the Indian Self-Determination and Education

Assistance Act.

‘‘SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.

‘‘(a) IN GENERAL.—The Secretary may make grants for fiscal

years 2003 through 2007 to public and nonprofit community entities, including religious organizations, and to Indian tribes and

tribal organizations, for demonstration service projects and activities designed to test the effectiveness of various approaches to accomplish the objectives specified in section 441(b)(1).

‘‘(b) ELIGIBILITY CRITERIA FOR FULL SERVICE GRANTS.—In order

to be eligible for a grant under this section, except as specified in

subsection (c), an entity shall submit an application to the Secretary

containing the following:

‘‘(1) PROJECT DESCRIPTION.—A statement including—

‘‘(A) a description of the project and how it will be carried out, including the geographical area to be covered and

the number and characteristics of clients to be served, and

143

how it will address each of the 4 objectives specified in section 441(b)(1); and ‘‘(B) a description of the methods to be used by the entity

or its contractor to assess the extent to which the project

was successful in accomplishing its specific objectives and

the general objectives specified in section 441(b)(1). ‘‘(2) EXPERIENCE AND QUALIFICATIONS.—A demonstration of

ability to carry out the project, by means such as demonstration

of experience in successfully carrying out projects of similar design and scope, and such other information as the Secretary

may find necessary to demonstrate the entity’s capacity to carry

out the project, including the entity’s ability to provide the nonFederal share of project resources. ‘‘(3) ADDRESSING CHILD ABUSE AND NEGLECT AND DOMESTIC

VIOLENCE.—A description of how the entity will assess for the

presence of, and intervene to resolve, domestic violence and

child abuse and neglect, including how the entity will coordinate with State and local child protective service and domestic

violence programs. ‘‘(4) ADDRESSING CONCERNS RELATING TO SUBSTANCE ABUSE

AND SEXUAL ACTIVITY.—A commitment to make available to

each individual participating in the project education about alcohol, tobacco, and other drugs, and about the health risks associated with abusing such substances, and information about

diseases and conditions transmitted through substance abuse

and sexual contact, including HIV/AIDS, and to coordinate

with providers of services addressing such problems, as appropriate. ‘‘(5) COORDINATION WITH SPECIFIED PROGRAMS.—An undertaking to coordinate, as appropriate, with State and local entities responsible for the programs under parts A, B, and D of

this title, including programs under title I of the Workforce Investment Act of 1998 (including the One-Stop delivery system),

and such other programs as the Secretary may require.

‘‘(6) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records, make such reports, and cooperate with such

reviews or audits as the Secretary may find necessary for purposes of oversight of project activities and expenditures. ‘‘(7) SELF-INITIATED EVALUATION.—If the entity elects to contract for independent evaluation of the project (part or all of the

cost of which may be paid for using grant funds), a commitment to submit to the Secretary a copy of the evaluation report

within 30 days after completion of the report and not more than

1 year after completion of the project. ‘‘(8) COOPERATION WITH SECRETARY’S OVERSIGHT AND EVALUATION.—An agreement to cooperate with the Secretary’s evaluation of projects assisted under this section, by means including

random assignment of clients to service recipient and control

groups, if determined by the Secretary to be appropriate, and

affording the Secretary access to the project and to project-related records and documents, staff, and clients. ‘‘(c) ELIGIBILITY CRITERIA FOR LIMITED PURPOSE GRANTS.—In

order to be eligible for a grant under this section in an amount

under $25,000 per fiscal year, an entity shall submit an application

to the Secretary containing the following:

144

‘‘(1) PROJECT DESCRIPTION.—A description of the project and

how it will be carried out, including the number and characteristics of clients to be served, the proposed duration of the

project, and how it will address at least 1 of the 4 objectives

specified in section 441(b)(1). ‘‘(2) QUALIFICATIONS.—Such information as the Secretary

may require as to the capacity of the entity to carry out the

project, including any previous experience with similar activities. ‘‘(3) COORDINATION WITH RELATED PROGRAMS.—As required

by the Secretary in appropriate cases, an undertaking to coordinate and cooperate with State and local entities responsible for

specific programs relating to the objectives of the project including, as appropriate, jobs programs and programs serving children and families. ‘‘(4) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records, make such reports, and cooperate with such

reviews or audits as the Secretary may find necessary for purposes of oversight of project activities and expenditures. ‘‘(5) COOPERATION WITH SECRETARY’S OVERSIGHT AND EVALUA- TION.—An agreement to cooperate with the Secretary’s evaluation of projects assisted under this section, by means including

affording the Secretary access to the project and to project-related records and documents, staff, and clients. ‘‘(d) CONSIDERATIONS IN AWARDING GRANTS.— ‘‘(1) DIVERSITY OF PROJECTS.—In awarding grants under this

section, the Secretary shall seek to achieve a balance among entities of differing sizes, entities in differing geographic areas,

entities in urban and in rural areas, and entities employing differing methods of achieving the purposes of this section, including working with the State agency responsible for the administration of part D to help fathers satisfy child support arrearage

obligations. ‘‘(2) PREFERENCE FOR PROJECTS SERVING LOW-INCOME FA- THERS.—In awarding grants under this section, the Secretary

may give preference to applications for projects in which a majority of the clients to be served are low-income fathers. ‘‘(e) FEDERAL SHARE.— ‘‘(1) IN GENERAL.—Grants for a project under this section for

a fiscal year shall be available for a share of the cost of such

project in such fiscal year equal to—

‘‘(A) up to 80 percent (or up to 90 percent, if the entity

demonstrates to the Secretary’s satisfaction circumstances

limiting the entity’s ability to secure non-Federal resources)

in the case of a project under subsection (b); and

‘‘(B) up to 100 percent, in the case of a project under subsection (c). ‘‘(2) NON-FEDERAL SHARE.—The non-Federal share may be in

cash or in kind. In determining the amount of the non-Federal

share, the Secretary may attribute fair market value to goods,

services, and facilities contributed from non-Federal sources.

‘‘SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION PROJECTS.

‘‘(a) IN GENERAL.—The Secretary may make grants under this section for fiscal years 2003 through 2007 to eligible entities (as specified in subsection (b)) for 2 multicity, multistate projects demVerDate 11-MAY-2000 20:48 Jun 07, 2002 Jkt 099006 PO 00000 Frm 00144 Fmt 6659 Sfmt 6603 E:\HR\OC\HR460P1.XXX pfrm04 PsN: HR460P1
145

onstrating approaches to achieving the objectives specified in section

441(b)(1). One of the projects shall test the use of married couples

to deliver program services. ‘‘(b) ELIGIBLE ENTITIES.—An entity eligible for a grant under this

section must be a national nonprofit fatherhood promotion organization that meets the following requirements: ‘‘(1) EXPERIENCE WITH FATHERHOOD PROGRAMS.—The organization must have substantial experience in designing and successfully conducting programs that meet the purposes described

in section 441. ‘‘(2) EXPERIENCE WITH MULTICITY, MULTISTATE PROGRAMS

AND GOVERNMENT COORDINATION.—The organization must have

experience in simultaneously conducting such programs in more

than 1 major metropolitan area in more than 1 State and in

coordinating such programs, where appropriate, with State and

local government agencies and private, nonprofit agencies (including community-based and religious organizations), including State or local agencies responsible for child support enforcement and workforce development. ‘‘(c) APPLICATION REQUIREMENTS.—In order to be eligible for a

grant under this section, an entity must submit to the Secretary an

application that includes the following: ‘‘(1) QUALIFICATIONS.— ‘‘(A) ELIGIBLE ENTITY.—A demonstration that the entity

meets the requirements of subsection (b). ‘‘(B) OTHER.—Such other information as the Secretary

may find necessary to demonstrate the entity’s capacity to

carry out the project, including the entity’s ability to provide the non-Federal share of project resources. ‘‘(2) PROJECT DESCRIPTION.—A description of and commitments concerning the project design, including the following: ‘‘(A) IN GENERAL.—A detailed description of the proposed

project design and how it will be carried out, which shall— ‘‘(i) provide for the project to be conducted in at least

3 major metropolitan areas; ‘‘(ii) state how it will address each of the 4 objectives

specified in section 441(b)(1); ‘‘(iii) demonstrate that there is a sufficient number of

potential clients to allow for the random selection of individuals to participate in the project and for comparisons with appropriate control groups composed of individuals who have not participated in such projects;

and‘‘(iv) demonstrate that the project is designed to direct a majority of project resources to activities serving

low-income fathers (but the project need not make services available on a means-tested basis). ‘‘(B) OVERSIGHT, EVALUATION, AND ADJUSTMENT COMPONENT.—An agreement that the entity— ‘‘(i) in consultation with the evaluator selected pursuant to section 445, and as required by the Secretary,

will modify the project design, initially and (if necessary) subsequently throughout the duration of the

project, in order to facilitate ongoing and final oversight and evaluation of project operation and outcomes

146

(by means including, to the maximum extent feasible,

random assignment of clients to service recipient and

control groups), and to provide for mid-course adjustments in project design indicated by interim evaluations; ‘‘(ii) will submit to the Secretary revised descriptions

of the project design as modified in accordance with

clause (i); and ‘‘(iii) will cooperate fully with the Secretary’s ongoing

oversight and ongoing and final evaluation of the

project, by means including affording the Secretary access to the project and to project-related records and

documents, staff, and clients. ‘‘(3) ADDRESSING CHILD ABUSE AND NEGLECT AND DOMESTIC

VIOLENCE.—A description of how the entity will assess for the

presence of, and intervene to resolve, domestic violence and

child abuse and neglect, including how the entity will coordinate with State and local child protective service and domestic

violence programs. ‘‘(4) ADDRESSING CONCERNS RELATING TO SUBSTANCE ABUSE

AND SEXUAL ACTIVITY.—A commitment to make available to

each individual participating in the project education about alcohol, tobacco, and other drugs, and about the health risks associated with abusing such substances, and information about

diseases and conditions transmitted through substance abuse

and sexual contact, including HIV/AIDS, and to coordinate

with providers of services addressing such problems, as appropriate. ‘‘(5) COORDINATION WITH SPECIFIED PROGRAMS.—An undertaking to coordinate, as appropriate, with State and local entities responsible for the programs funded under parts A, B, and

D of this title, programs under title I of the Workforce Investment Act of 1998 (including the One-Stop delivery system), and

such other programs as the Secretary may require. ‘‘(6) RECORDS, REPORTS, AND AUDITS.—An agreement to maintain such records, make such reports, and cooperate with such

reviews or audits (in addition to those required under the preceding provisions of paragraph (2)) as the Secretary may find

necessary for purposes of oversight of project activities and expenditures. ‘‘(d) FEDERAL SHARE.—

‘‘(1) IN GENERAL.—Grants for a project under this section for

a fiscal year shall be available for up to 80 percent of the cost

of such project in such fiscal year.

‘‘(2) NON-FEDERAL SHARE.—The non-Federal share may be in

cash or in kind. In determining the amount of the non-Federal

share, the Secretary may attribute fair market value to goods,

services, and facilities contributed from non-Federal sources.

‘‘SEC. 445. EVALUATION.

‘‘(a) IN GENERAL.—The Secretary, directly or by contract or cooperative agreement, shall evaluate the effectiveness of service projects

funded under sections 443 and 444 from the standpoint of the purposes specified in section 441(b)(1).

‘‘(b) EVALUATION METHODOLOGY.—Evaluations under this section

shall—

147

‘‘(1) include, to the maximum extent feasible, random assignment of clients to service delivery and control groups and other

appropriate comparisons of groups of individuals receiving and

not receiving services;

‘‘(2) describe and measure the effectiveness of the projects in

achieving their specific project goals; and

‘‘(3) describe and assess, as appropriate, the impact of such

projects on marriage, parenting, domestic violence, child abuse

and neglect, money management, employment and earnings,

payment of child support, and child well-being, health, and

education.

‘‘(c) EVALUATION REPORTS.—The Secretary shall publish the following reports on the results of the evaluation:

‘‘(1) An implementation evaluation report covering the first 24

months of the activities under this part to be completed by 36

months after initiation of such activities.

‘‘(2) A final report on the evaluation to be completed by September 30, 2010.

‘‘SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.

‘‘The Secretary is authorized, by grant, contract, or cooperative

agreement, to carry out projects and activities of national significance relating to fatherhood promotion, including—

‘‘(1) COLLECTION AND DISSEMINATION OF INFORMATION.—Assisting States, communities, and private entities, including religious organizations, in efforts to promote and support marriage

and responsible fatherhood by collecting, evaluating, developing, and making available (through the Internet and by other

means) to all interested parties information regarding approaches to accomplishing the objectives specified in section

441(b)(1).

‘‘(2) MEDIA CAMPAIGN.—Developing, promoting, and distributing to interested States, local governments, public agencies,

and private nonprofit organizations, including charitable and

religious organizations, a media campaign that promotes and

encourages involved, committed, and responsible fatherhood

and married fatherhood.

‘‘(3) TECHNICAL ASSISTANCE.—Providing technical assistance,

including consultation and training, to public and private entities, including community organizations and faith-based organizations, in the implementation of local fatherhood promotion

programs.

‘‘(4) RESEARCH.—Conducting research related to the purposes

of this part.

‘‘SEC. 447. NONDISCRIMINATION.

‘‘The projects and activities assisted under this part shall be

available on the same basis to all fathers and expectant fathers able

to benefit from such projects and activities, including married and

unmarried fathers and custodial and noncustodial fathers, with

particular attention to low-income fathers, and to mothers and expectant mothers on the same basis as to fathers.

148

‘‘SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RESERVATION FOR

CERTAIN PURPOSE.

‘‘(a) AUTHORIZATION.—There are authorized to be appropriated

$20,000,000 for each of fiscal years 2003 through 2007 to carry out

the provisions of this part.

‘‘(b) RESERVATION.—Of the amount appropriated under this section for each fiscal year, not more than 15 percent shall be available

for the costs of the multicity, multicounty, multistate demonstration

projects under section 444, evaluations under section 445, and

projects of national significance under section 446.’’.

(b) INAPPLICABILITY OF EFFECTIVE DATE PROVISIONS.—Section

116 shall not apply to the amendment made by subsection (a) of this

section.

* * * * * * *

SECTION 3716 OF TITLE 31, UNITED STATES CODE

§ 3716. Administrative offset

(a) * * *

* * * * * * *

(h)(1)***

* * * * * * *

ø(3) In applying this section with respect to any debt owed to a

State, subsection (c)(3)(A) shall not apply.¿

(3) In applying this subsection with respect to any debt owed to

a State, other than past due support being enforced by the State,

subsection (c)(3)(A) shall not apply. Subsection (c)(3)(A) shall apply

with respect to past due support being enforced by the State notwithstanding any other provision of law, including sections 207 and

1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 1383(d)(1)),

section 413(b) of Public law 91–173 (30 U.S.C. 923(b)), and section

14 of the Act of August 29, 1935 (45 U.S.C. 231m).

(149)

VII. MINORITY VIEWS

We oppose the legislation (HR 4090) reported by the Committee

to reauthorize and modify the Temporary Assistance for Needy

Families (TANF) program because it fails to address the most fundamental goal of welfare reform—moving recipients into real jobs

and out of poverty. The bill promotes make-work at the expense of

wage-paying employment, replaces State flexibility with unfunded

mandates, and does nothing to help families escape poverty when

they leave welfare.

We have heard from Governors, Mayors, State legislators, welfare directors and poverty experts that HR 4090 is a step in the

wrong direction. We agree. We have heard from a bipartisan group

of Senators, lead by Senators Breaux and Hatch, that we should

expand access to vocational education, give States credit for placing

people in real jobs, maintain State flexibility on how to engage

TANF recipients, increase child care funding, and remove restrictions on serving legal immigrants. We agree. Unfortunately, none

of those proposals are contained in HR 4090. In fact, the legislation

eliminates vocational education from the list of activities that count

as a work-related activity. Apparently, education is the key to

every American’s future, except for poor single-mothers with children.

We are particularly concerned that the cumulative effect of three

provisions in the bill could force States to establish large unpaid

work experience programs: (1) requiring 70% of welfare recipients

to be enrolled in federally-defined work activities (without providing States with an employment credit for recipients leaving welfare for work), (2) increasing to 40 hours a week the amount of

time recipients must be participating in work activities (double the

number of hours now required for mothers with children under the

age of six), and (3) reducing State discretion to count vocational

training and job search toward the work requirement.

These new requirements would dramatically limit State flexibility to tailor services and activities to the individual needs of welfare recipients, and they will focus States on placing recipients in

make-work activities, rather than in real jobs. In fact, 41 out of 47

States surveyed by the National Governors Association indicated

that the proposal would require them to make ‘‘fundamental’’

changes to their welfare programs. Many States expressed concerns

about being forced to shift attention and resources away from helping welfare recipients get jobs and move up the employment ladder

in order to establish new workfare programs.

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The available research on welfare recipients participating in

work experience programs has not found that such arrangements

improve employment outcomes compared to other activities, such

as vocational training or job search. Almost a decade ago, a comprehensive study by the Manpower Demonstration Research Corporation (MDRC) found ‘‘little evidence that unpaid work experience leads to consistent employment or earnings effects.’’ More recently, a study by the University of Washington found that State’s

workfare program (which is now being terminated) had much less

impact on the wages of former welfare recipients than pre-employment training.

Perhaps this research is one of the reasons that very few States

have implemented large workfare programs over the last six years.

Some jurisdictions that did create work experience programs are

now beginning to scale back those efforts. For example, New York

City enrolled less than 10% of its adult TANF caseload in work experience programs at the end of last year compared to 15% two

years ago.

We are also concerned that despite assurances from the Administration about maintaining existing minimum wage protections for

welfare recipients in workfare programs, the Republican bill fails

to include such protections. In fact, more than half of the States

could not fulfill the bill’s work requirement without violating the

current minimum wage protection (in the case of a two-person family).

The Congressional Budget Office (CBO) has informed us that implementing the new work requirements in the bill would cost

States between $8 and $11 billion over the next five years. In addition, CBO has indicated that maintaining the current purchasing

power of the TANF and child care block grants will cost States another $7 billion over five years. And yet, HR 4090 does not contain

a single dime of new funding. This unfunded mandate could force

States to cut child care funding for the working poor in order to

finance the additional day care costs for TANF recipients in

workfare programs.

We believe there is a better way—one that maintains State flexibility, one that focuses on real work, and one that seeks to help

families escape poverty. We support strong work requirements that

seek to move people into real jobs. We believe that States should

have the flexibility to determine the best mix of services and activities to move welfare recipients towards self-sufficiency. We think

States should receive a credit based on employment, not caseload

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reduction. We want to end discrimination against legal immigrants

and provide welfare recipients with access to vocational training so

they can find good jobs. And we support providing the necessary resources, especially for quality child care, to help families leave welfare for work. HR 4090 falls short in all of these critical areas, and

therefore we have no choice but to opposed the bill.

BEN CARDIN.

ROBERT T. MATSUI.

XAVIER BECERRA.

JIM MCDERMOTT.

MICHAEL R. MCNULTY.

EARL POMEROY.

WM. J. JEFFERSON.

CHARLES B. RANGEL.

JERRY KLECZKA.

SANDER LEVIN.

WILLIAM J. COYNE.

PETE STARK.

RICHARD E. NEAL.

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