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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5861 Introduced in House (IH)]

<DOC>

115th CONGRESS
  2d Session
                                H. R. 5861

 To amend part A of title IV of the Social Security Act, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 17, 2018

Mr. Smith of Nebraska (for himself, Mr. Brady of Texas, Mr. Nunes, Ms. 
 Jenkins of Kansas, Mr. Reed, Mr. Renacci, Mrs. Walorski, Mr. LaHood, 
   Mr. Bishop of Michigan, Mr. Rice of South Carolina, Mr. Smith of 
  Missouri, Mr. Holding, Mr. Buchanan, Mr. Marchant, and Mr. Kelly of 
Pennsylvania) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
 To amend part A of title IV of the Social Security Act, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jobs and Opportunity with Benefits 
and Services for Success Act''.

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. Re-naming of program.
Sec. 5. Helping more Americans enter and remain in the workforce.
Sec. 6. Expecting universal engagement and case management.
Sec. 7. Promoting accountability by measuring work outcomes.
Sec. 8. Targeting funds to truly needy families.
Sec. 9. Targeting funds to core purposes.
Sec. 10. Strengthening program integrity by measuring improper 
                            payments.
Sec. 11. Prohibition on State diversion of Federal funds to replace 
                            State spending.
Sec. 12. Inclusion of poverty reduction as a program purpose.
Sec. 13. Welfare for needs not weed.
Sec. 14. Strengthening accountability through HHS approval of State 
                            plans.
Sec. 15. Aligning and improving data reporting.
Sec. 16. Technical corrections to data exchange standards to improve 
                            program coordination.
Sec. 17. Set-aside for economic downturns.
Sec. 18. Definitions related to use of funds.
Sec. 19. Elimination of obsolete provisions.
Sec. 20. 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 reference shall be considered to 
be made to a section or other provision of the Social Security Act.

SEC. 4. RE-NAMING OF PROGRAM.

    (a) In General.--The heading for part A of title IV is amended to 
read as follows:

  ``PART A--JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES PROGRAM''.

    (b) Conforming Amendments.--
            (1) The heading for section 403(a)(2)(B) (42 U.S.C. 
        603(a)(2)(B)) is amended by striking ``tanf'' and inserting 
        ``jobs''.
            (2) The heading for section 413(a) (42 U.S.C. 613(a)) is 
        amended by striking ``TANF'' and inserting ``JOBS''.
            (3) The heading for section 471(e)(7)(B)(i) (42 U.S.C. 
        671(e)(7)(B)(i)), as in effect pursuant to the amendment made 
        by section 50711(a)(2) of division E of the Bipartisan Budget 
        Act of 2018 (Public Law 115-123), is amended by striking 
        ``TANF'' and inserting ``JOBS''.

SEC. 5. HELPING MORE AMERICANS ENTER AND REMAIN IN THE WORKFORCE.

    (a) Family Assistance Grants.--Section 403(a)(1) (42 U.S.C. 
603(a)(1)) is amended in each of subparagraphs (A) and (C) by striking 
``2017 and 2018'' and inserting ``2019 through 2023''.
    (b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2)(D) (42 U.S.C. 603(a)(2)(D)) is amended--
            (1) by striking ``2017 and 2018'' and inserting ``2019 
        through 2023''; and
            (2) by striking ``for fiscal year 2017 or 2018''.
    (c) Tribal Family Assistance Grants.--Section 412(a)(1)(A) (42 
U.S.C. 612(a)(1)(A)) is amended by striking ``2017 and 2018'' and 
inserting ``2019 through 2023''.
    (d) Improving Access to Child Care To Support Work.--Section 
418(a)(3) (42 U.S.C. 618(a)(3)) is amended by striking ``$2,917,000,000 
for each of fiscal years 2017 and 2018'' and inserting ``$3,525,000,000 
for each of fiscal years 2019 through 2023''.
    (e) Grants to the Territories.--Section 1108(b)(2) (42 U.S.C. 
1308(b)(2)) is amended by striking ``2017 and 2018'' and inserting 
``2019 through 2023''.

SEC. 6. EXPECTING UNIVERSAL ENGAGEMENT AND CASE MANAGEMENT.

    Section 408(b) (42 U.S.C. 608(b)) is amended to read as follows:
    ``(b) Individual Opportunity Plans.--
            ``(1) Assessment.--The State agency responsible for 
        administering the State program funded under this part shall 
        make an initial assessment of the following for each work-
        eligible individual (as defined in the regulations promulgated 
        pursuant to section 407(i)(1)(A)(i)):
                    ``(A) The education obtained, skills, prior work 
                experience, work readiness, and barriers to work of the 
                individual.
                    ``(B) The well-being of the children in the family 
                of the individual and, where appropriate, activities or 
                services (such as services offered by a program funded 
                under section 511) to improve the well-being of the 
                children.
            ``(2) Contents of plans.--On the basis of the assessment 
        required by paragraph (1) of this subsection, the State agency, 
        in consultation with the individual, shall develop an 
        individual opportunity plan that--
                    ``(A) includes a personal responsibility agreement 
                in which the individual acknowledges receipt of 
                publicly funded benefits and responsibility to comply 
                with program requirements in order to receive the 
                benefits;
                    ``(B) sets forth the obligations of the individual 
                to participate in work activities (as defined in 
                section 407(d)), and the number of hours per month for 
                which the individual will so participate pursuant to 
                section 407;
                    ``(C) sets forth an employment goal and planned 
                short-, intermediate-, and long-term actions to achieve 
                the goal, and, in the case of an individual who has not 
                attained 24 years of age and is in secondary school or 
                the equivalent, the intermediate action may be 
                completion of secondary school or the equivalent;
                    ``(D) describes the job counseling and other 
                services the State will provide to the individual to 
                enable the individual to obtain and keep employment in 
                the private sector;
                    ``(E) may include referral to appropriate substance 
                abuse or mental health treatment; and
                    ``(F) is signed by the individual.
            ``(3) Timing.--The State agency shall comply with 
        paragraphs (1) and (2) with respect to a work-eligible 
        individual--
                    ``(A) within 180 days after the effective date of 
                this subsection, in the case of an individual who, as 
                of such effective date, is a recipient of assistance 
                under the State program funded under this part (as in 
                effect immediately before such effective date); or
                    ``(B) within 60 days after the individual is 
                determined to be eligible for the assistance, in the 
                case of any other individual.
            ``(4) 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 opportunity plan developed pursuant to this 
        subsection, that is signed by the individual.
            ``(5) Periodic review.--The State shall meet with each 
        work-eligible individual assessed by the State under paragraph 
        (1), not less frequently than every 90 days, to--
                    ``(A) review the individual opportunity plan 
                developed for the individual;
                    ``(B) discuss with the individual the progress made 
                by the individual in achieving the goals specified in 
                the plan; and
                    ``(C) update the plan, as necessary, to reflect any 
                changes in the circumstances of the individual since 
                the plan was last reviewed.''.

SEC. 7. PROMOTING ACCOUNTABILITY BY MEASURING WORK OUTCOMES.

    (a) In General.--Section 407(a) (42 U.S.C. 607(a)) is amended to 
read as follows:
    ``(a) Performance Accountability and Work Outcomes.--
            ``(1) Purpose.--The purpose of this subsection is to 
        provide for the establishment of performance accountability 
        measures to assess the effectiveness of States in increasing 
        employment, retention, and advancement among families receiving 
        assistance under the State program funded under this part.
            ``(2) In general.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve the requisite level 
        of performance on an indicator described in paragraph (3)(B) of 
        this subsection for the fiscal year.
            ``(3) Measuring state performance.--
                    ``(A) In general.--Each State, in consultation with 
                the Secretary, shall collect and submit to the 
                Secretary the information necessary to measure the 
                level of performance of the State for each indicator 
                described in subparagraph (B), for fiscal year 2020 and 
                each fiscal year thereafter, and the Secretary shall 
                use the information collected for fiscal year 2020 to 
                establish the baseline level of performance for each 
                State for each such indicator.
                    ``(B) Indicators of performance.--The indicators 
                described in this subparagraph, for a fiscal year, are 
                the following:
                            ``(i) The percentage of individuals who 
                        were work-eligible individuals as of the time 
                        of exit from the program, who are in 
                        unsubsidized employment during the second 
                        quarter after the exit.
                            ``(ii) The percentage of individuals who 
                        were work-eligible individuals who were in 
                        unsubsidized employment in the second quarter 
                        after the exit, who are also in unsubsidized 
                        employment during the fourth quarter after the 
                        exit.
                            ``(iii) The median earnings of individuals 
                        who were work-eligible individuals as of the 
                        time of exit from the program, who are in 
                        unsubsidized employment during the second 
                        quarter after the exit.
                            ``(iv) The percentage of individuals who 
                        have not attained 24 years of age, are 
                        attending high school or enrolled in an 
                        equivalency program, and are work-eligible 
                        individuals or were work-eligible individuals 
                        as of the time of exit from the program, who 
                        obtain a high school degree or its recognized 
                        equivalent while receiving assistance under the 
                        State program funded under this part or within 
                        1 year after the exit.
                    ``(C) Levels of performance.--
                            ``(i) In general.--For each State 
                        submitting a State plan pursuant to section 
                        402(a), there shall be established, in 
                        accordance with this subparagraph, levels of 
                        performance for each of the indicators 
                        described in subparagraph (B).
                            ``(ii) Weight.--The weight assigned to such 
                        an indicator shall be the following:
                                    ``(I) 40 percent, in the case of 
                                the indicator described in subparagraph 
                                (B)(i).
                                    ``(II) 25 percent, in the case of 
                                the indicator described in subparagraph 
                                (B)(ii).
                                    ``(III) 25 percent, in the case of 
                                the indicator described in subparagraph 
                                (B)(iii).
                                    ``(IV) 10 percent, in the case of 
                                the indicator described in subparagraph 
                                (B)(iv).
                            ``(iii) Agreement on requisite performance 
                        level for each indicator.--
                                    ``(I) In general.--The Secretary 
                                and the State shall negotiate the 
                                requisite level of performance for the 
                                State with respect to each indicator 
                                described in clause (ii), for each of 
                                fiscal years 2020 through 2023, and in 
                                the case of each of fiscal years 2021 
                                through 2023, shall do so before the 
                                beginning of the respective fiscal 
                                year.
                                    ``(II) Requirements in establishing 
                                performance levels.--In establishing 
                                the requisite levels of performance, 
                                the State and the Secretary shall--
                                            ``(aa) take into account 
                                        how the levels involved compare 
                                        with the levels established for 
                                        other States;
                                            ``(bb) ensure the levels 
                                        involved are adjusted, using 
                                        the objective statistical model 
                                        referred to in clause (v), 
                                        based on--

                                                    ``(AA) the 
                                                differences among 
                                                States in economic 
                                                conditions, including 
                                                differences in 
                                                unemployment rates or 
                                                employment losses or 
                                                gains in particular 
                                                industries; and

                                                    ``(BB) the 
                                                characteristics of 
                                                participants on entry 
                                                into the program, 
                                                including indicators of 
                                                prior work history, 
                                                lack of educational or 
                                                occupational skills 
                                                attainment, or other 
                                                factors that may affect 
                                                employment and 
                                                earnings; and

                                                    ``(CC) take into 
                                                account the extent to 
                                                which the levels 
                                                involved promote 
                                                continuous improvement 
                                                in performance by each 
                                                State.

                            ``(iv) Revisions based on economic 
                        conditions and individuals receiving assistance 
                        during the fiscal year.--The Secretary shall, 
                        in accordance with the objective statistical 
                        model referred to in clause (v), revise the 
                        requisite levels of performance for a State and 
                        a fiscal year to reflect the economic 
                        conditions and characteristics of the relevant 
                        individuals in the State during the fiscal 
                        year.
                            ``(v) Statistical adjustment model.--The 
                        Secretary shall use an objective statistical 
                        model to make adjustments to the requisite 
                        levels of performance for the economic 
                        conditions and characteristics of the relevant 
                        individuals, and shall consult with the 
                        Secretary of Labor to develop a model that is 
                        the same as or similar to the model described 
                        in section 116(b)(3)(A)(viii) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3141(b)(3)(A)(viii)).
                            ``(vi) Definition of exit.--In this 
                        subsection, the term `exit' means, with respect 
                        to a State program funded under this part, 
                        ceases to a receive a JOBS benefit under the 
                        program.
                    ``(D) State option to establish common exit 
                measures.--Notwithstanding subparagraph (C)(vi) of this 
                paragraph, a State that has not provided the 
                notification under section 121(b)(1)(C)(ii) of the 
                Workforce Innovation and Opportunity Act to exclude the 
                State program funded under this part as a mandatory 
                one-stop partner may adopt an alternative definition of 
                `exit' for the purpose of creating common exit measures 
                to improve alignment with workforce programs operated 
                under title I of such Act.
                    ``(E) Regulations.--In order to ensure nationwide 
                comparability of data, the Secretary, after 
                consultation the Secretary of Labor and with States, 
                shall issue regulations governing the establishment of 
                the performance accountability system under this 
                subsection and a template for performance reports to be 
                used by all States consistent with subsection (b).''.
    (b) Reports on State Performance on HHS Online Dashboard.--Section 
407(b) (42 U.S.C. 607(b)) is amended to read as follows:
    ``(b) Publication of State Performance.--The Secretary shall, 
directly or through the use of grants or contracts, establish and 
operate an Internet website that is accessible to the public, with a 
dashboard that is regularly updated and provides easy-to-understand 
information on the performance of each State program funded under this 
part, including a profile for each such program, expressed by use of a 
template, which shall include--
            ``(1) information on the indicators and requisite 
        performance levels established for the State under subsection 
        (a), including, with respect to each such level, whether the 
        State achieves, exceeds, or fails to achieve the level on an 
        ongoing basis, including--
                    ``(A) information on any adjustments made to the 
                requisite levels using the statistical adjustment model 
                described in subsection (a)(3)(D)(v); and
                    ``(B) a grade based on the overall performance of 
                the State, as determined by the Secretary and in 
                consultation with the State, and the overall 
                performance shall be graded based on the performance 
                indicators and weights for each such indicator as 
                described in subsection (a);
            ``(2) information reported under section 411 on the 
        characteristics and demographics of individuals receiving 
        assistance under the State program, including--
                    ``(A) the number and percentage of child-only cases 
                and reason why the cases are child-only; and
                    ``(B) the average weekly number of hours that each 
                work-eligible individual in the State program 
                participates in work activities, including a separate 
                section showing the number and percentage of the work-
                eligible individuals with zero hours of the 
                participation and the reason for non-participation;
            ``(3) information on the results of improper payments 
        reviews;
            ``(4) a link to the State plan approved under section 402; 
        and
            ``(5) information regarding any penalty imposed, or other 
        corrective action taken, by the Secretary against a State for 
        failing to achieve a requisite performance level or any other 
        requirement imposed by or under this part.''.
    (c) Modification of Rules for Determining Whether an Individual Is 
Engaged in Work.--Section 407(c) (42 U.S.C. 607(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``For purposes of 
                        subsection (b)(1)(B)(i), a'' and inserting 
                        ``A''; and
                            (ii) by striking ``, not fewer than'' and 
                        all that follows through ``this subsection''; 
                        and
                    (B) in subparagraph (B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``For purposes of subsection 
                        (b)(2)(B), an'' and inserting ``An'';
                            (ii) in clause (i), by striking ``, not 
                        fewer than'' and all that follows through 
                        ``this subsection''; and
                            (iii) in clause (ii), by striking ``, not 
                        fewer than'' and all that follows through 
                        ``subsection (d)''; and
            (2) in paragraph (2)--
                    (A) by striking subparagraphs (A) and (D);
                    (B) in each of subparagraphs (B) and (C), by 
                striking ``For purposes of determining monthly 
                participation rates under subsection (b)(1)(B)(i), a'' 
                and inserting ``A''; and
                    (C) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively.
    (d) Modifications to Allowable Work Activities.--Section 407(d) (42 
U.S.C. 607(d)) is amended--
            (1) in paragraph (5), by inserting ``, including 
        apprenticeship'' before the semicolon;
            (2) in paragraph (8), by striking ``(not to exceed 12 
        months with respect to any individual'' and inserting ``, 
        including career technical education'';
            (3) in paragraph (11), by striking ``and'' at the end;
            (4) in paragraph (12), by striking the period and inserting 
        ``; and''; and
            (5) by adding at the end the following:
            ``(13) any other activity that the State determines is 
        necessary to improve the employment, earnings, or other 
        outcomes of a recipient of assistance that are used in 
        determining a level of performance by the State for purposes of 
        subsection (a), as described in the State plan approved under 
        section 402.''.

SEC. 8. TARGETING FUNDS TO TRULY NEEDY FAMILIES.

    (a) Prohibition on Use of Funds for Families With Income Greater 
Than Twice the Poverty Line.--Section 404(k) (42 U.S.C. 604(k)) is 
amended to read as follows:
    ``(k) Prohibitions.--
            ``(1) Use of funds for persons with income greater than 
        twice the poverty line.--A State to which a grant is made under 
        this part shall not use the grant to provide any assistance or 
        services to a family whose monthly income exceeds twice the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 
        9902(2))).''.
    (b) Elimination of Limitation on Use of Funds for Case Management 
Activities.--Section 404(b)(2) (42 U.S.C. 604(b)(2)) is amended to read 
as follows:
            ``(2) Exceptions.--Paragraph (1) of this subsection shall 
        not apply to the use of a grant for--
                    ``(A) information technology and computerization 
                needed for tracking, monitoring, or data collection 
                required by or under this part; or
                    ``(B) case management activities to carry out 
                section 408(b).''.
    (c) Prohibition on Use of Funds for Direct Spending on Child Care 
or Child Welfare Services or Activities.--Section 404(k) (42 U.S.C. 
604(k)), as amended by subsection (a) of this section, is amended by 
adding at the end the following:
            ``(2) Direct spending on child care services or activities 
        or child welfare services or activities.--A State to which a 
        grant is made under this part shall not use the grant for 
        direct spending on child care services or activities or direct 
        spending on child welfare services or activities.''.
    (d) Expansion of Authority To Transfer Funds to Other Programs.--
Section 404(d) (42 U.S.C. 604(d)) is amended by striking paragraphs (1) 
through (3) and inserting the following:
            ``(1) In general.--A State may use not more than 50 percent 
        of the grant made to the State under section 403(a)(1) to carry 
        out a State program pursuant to any or all of the following 
        provisions of law:
                    ``(A) The Child Care and Development Block Grant 
                Act of 1990.
                    ``(B) Title I of the Workforce Innovation and 
                Opportunity Act.
                    ``(C) Subpart 1 of part B of this title.
            ``(2) Limitation on amount transferrable to subpart 1 of 
        part b of this title.--
                    ``(A) In general.--A State may use not more than 
                the applicable percentage of the amount of a grant made 
                to the State under section 403(a)(1) to carry out State 
                programs pursuant to subpart 1 of part B.
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage is 10 
                percent.
            ``(3) Applicable rules.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) of this paragraph, any amount paid to 
                a State under this part that is used to carry out a 
                State program pursuant to a provision of law specified 
                in paragraph (1) shall not be subject to the 
                requirements of this part, but shall be subject to the 
                requirements that apply to Federal funds provided 
                directly under the provision of law to carry out the 
                program, and the expenditure of any amount so used 
                shall not be considered to be an expenditure under this 
                part.
                    ``(B) Funds transferred to the wioa.--In the case 
                of funds transferred under paragraph (1)(B) of this 
                subsection--
                            ``(i) all of the funds will be used to 
                        support families eligible for assistance under 
                        the State program funded under this part; and
                            ``(ii) not more than 15 percent of the 
                        funds will be reserved for statewide workforce 
                        investment activities referred to in section 
                        128(a)(1) of the Workforce Innovation and 
                        Opportunity Act.
            ``(4) Exclusion of states excluding the state jobs program 
        as a mandatory one-stop partner under the wioa.--The authority 
        provided by this subsection may not be exercised by a State 
        that has provided the notification referred to in section 
        407(a)(3)(D).''.

SEC. 9. TARGETING FUNDS TO CORE PURPOSES.

    (a) Requirement That States Reserve 25 Percent of JOBS Grant for 
Spending on Core Activities.--Section 408(a) (42 U.S.C. 608(a)) is 
amended by adding at the end the following:
            ``(13) Requirement that states reserve 25 percent of jobs 
        grant for spending on core activities.--A State to which a 
        grant is made under section 403(a)(1) for a fiscal year shall 
        expend not less than 25 percent of the grant on assistance, 
        case management, work supports and supportive services, work, 
        wage subsidies, work activities (as defined in section 407(d)), 
        and non-recurring short-term benefits.''.
    (b) Requirement That at Least 25 Percent of Qualified State 
Expenditures Be for Core Activities.--Section 408(a) (42 U.S.C. 
608(a)), as amended by subsection (a) of this section, is amended by 
adding at the end the following:
            ``(14) Requirement that at least 25 percent of qualified 
        state expenditures be for core activities.--Not less than 25 
        percent of the qualified State expenditures (as defined in 
        section 409(a)(7)(B)(i)) of a State during the fiscal year 
        shall be for assistance, case management, work supports and 
        supportive services, work, wage subsidies, work activities (as 
        defined in section 407(d)), and non-recurring short-term 
        benefits.''.
    (c) Phase-Out of Counting of Third-Party Contributions as Qualified 
State Expenditures.--Section 408(a) (42 U.S.C. 608(a)), as amended by 
subsections (a) and (b) of this section, is amended by adding at the 
end the following:
            ``(15) Phase-out of counting of third-party contributions 
        as qualified state expenditures.--
                    ``(A) In general.--The qualified State expenditures 
                (as defined in section 409(a)(7)(B)(i)) of a State for 
                a fiscal year that are attributable to the value of 
                goods and services provided by a source other than a 
                State or local government shall not exceed the 
                applicable percentage of the expenditures for the 
                fiscal year.
                    ``(B) Applicable percentage.--In subparagraph (A), 
                the term `applicable percentage' means, with respect to 
                a fiscal year--
                            ``(i) 75 percent, in the case of fiscal 
                        year 2020;
                            ``(ii) 50 percent, in the case of fiscal 
                        year 2021;
                            ``(iii) 25 percent, in the case of fiscal 
                        year 2022; and
                            ``(iv) 0 percent, in the case of fiscal 
                        year 2023 or any succeeding fiscal year.''.

SEC. 10. STRENGTHENING PROGRAM INTEGRITY BY MEASURING IMPROPER 
              PAYMENTS.

    Section 404 (42 U.S.C. 604) is amended by adding at the end the 
following:
    ``(l) Applicability of Improper Payments Laws.--
            ``(1) In general.--The Improper Payments Information Act of 
        2002 and the Improper Payments Elimination and Recovery Act of 
        2010 shall apply to a State in respect of the State program 
        funded under this part in the same manner in which such Acts 
        apply to a Federal agency.
            ``(2) Regulations.--Within 2 years after the date of the 
        enactment of this subsection, the Secretary shall prescribe 
        regulations governing how a State reviews and reports improper 
        payments under the State program funded under this part.''.

SEC. 11. PROHIBITION ON STATE DIVERSION OF FEDERAL FUNDS TO REPLACE 
              STATE SPENDING.

    Section 408(a) (42 U.S.C. 608(a)), as amended by section 9 of this 
Act, is amended by adding at the end the following:
            ``(16) Non-supplantation requirement.--Funds made available 
        to a State under this part shall be used to supplement, not 
        supplant, State general revenue spending on activities 
        described in section 404.''.

SEC. 12. INCLUSION OF POVERTY REDUCTION AS A PROGRAM PURPOSE.

    Section 401(a) (42 U.S.C. 601(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) reduce child poverty by increasing employment entry, 
        retention, and advancement of needy parents.''.

SEC. 13. WELFARE FOR NEEDS NOT WEED.

    (a) Prohibition.--Section 408(a)(12)(A) (42 U.S.C. 608(a)(12)(A)) 
is amended--
            (1) by striking ``or'' at the end of clause (ii);
            (2) by striking the period at the end of clause (iii) and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                            ``(iv) any establishment that offers 
                        marihuana (as defined in section 102(16) of the 
                        Controlled Substances Act) for sale.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date that is 2 years after the date of the enactment 
of this Act.

SEC. 14. STRENGTHENING ACCOUNTABILITY THROUGH HHS APPROVAL OF STATE 
              PLANS.

    (a) In General.--Section 402 (42 U.S.C. 602) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``found'' and inserting ``approved that''; and
                    (B) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) by striking clauses (ii) and 
                                (iii) and inserting the following:
                            ``(ii) Require work-eligible individuals 
                        (as defined in the regulations promulgated 
                        pursuant to section 407(i)(1)(A)(i)) to engage 
                        in work activities consistent with section 
                        407(c). The document shall describe any other 
                        activity that the State will consider a work 
                        activity under section 407(c)(13).'';
                                    (II) by redesignating clauses (iv) 
                                through (viii) as clauses (iii) through 
                                (vii), respectively; and
                                    (III) by adding at the end the 
                                following:
                            ``(viii) Describe the case management 
                        practices of the State with respect to the 
                        requirements of section 408(b), provide a copy 
                        of the form or forms that will be used to 
                        assess a work-eligible individual (as so 
                        defined) and prepare an individual opportunity 
                        plan for the individual, describe how the State 
                        will ensure that such a plan is reviewed in 
                        accordance with section 408(b)(5), and describe 
                        how the State will measure progress under the 
                        plan.
                            ``(ix) Propose the requisite levels of 
                        performance for the State for purposes of 
                        section 407(a)(3)(D) for each year in the 2-
                        year period referred to in subsection (d) of 
                        this section, and provide an explanation with 
                        supporting data of why each such level is 
                        appropriate.
                            ``(x) Describe how the State will engage 
                        low-income noncustodial parents paying child 
                        support and how such a parent will be provided 
                        with access to work support and other services 
                        under the program to which the parent is 
                        referred to support their employment and 
                        advancement.
                            ``(xi) Describe how the State will comply 
                        with improper payments provisions in section 
                        404(l).
                            ``(xii) Describe coordination with other 
                        programs, including whether the State intends 
                        to exercise authority provided by section 
                        404(d) of this Act to transfer any funds paid 
                        to the State under this part, provide assurance 
                        that, in the case of a transfer to carry out a 
                        program under title I of the Workforce 
                        Innovation and Opportunity Act, the State will 
                        comply with section 404(d)(3)(B) of this Act 
                        and coordinate with the one-stop delivery 
                        system under the Workforce Innovation and 
                        Opportunity Act, and describe how the State 
                        will coordinate with the programs involved to 
                        provide services to families receiving 
                        assistance under the program referred to in 
                        paragraph (1) of this subsection.
                            ``(xiii) Describe how the State will 
                        promote marriage, such as through temporary 
                        disregard of the income of a new spouse when an 
                        individual receiving assistance under the State 
                        program marries so that the couple doesn't 
                        automatically lose benefits due to marriage.''; 
                        and
                            (ii) in subparagraph (B), by striking 
                        clauses (iv) and (v);
            (2) in subsection (c), by inserting ``, on the website 
        established pursuant to section 407(b),'' before ``a summary''; 
        and
            (3) by adding at the end the following:
    ``(d) 2-Year Plan.--A plan submitted pursuant to this section shall 
be designed to be implemented during a 2-year period.
    ``(e) Combined Plan Allowed.--A State may submit to the Secretary 
and the Secretary of Labor a combined State plan that meets the 
requirements of subsections (a) and (d) and that is for programs and 
activities under the Workforce Innovation and Opportunity Act.
    ``(f) Approval of Plans.--The Secretary shall approve any plan 
submitted pursuant to this section that meets the requirements of 
subsections (a) through (d).''.
    (b) Duties of the Secretary.--
            (1) Coordination of activities; dissemination of 
        information.--Section 416 (42 U.S.C. 616) is amended--
                    (A) by inserting ``(a) In General.--'' before ``The 
                programs''; and
                    (B) by adding after and below the end the 
                following:
    ``(b) Coordination of Activities.--The Secretary shall coordinate 
all activities of the Department of Health and Human Services relating 
to work activities (as defined in section 407(d)) and requirements and 
measurement of employment outcomes, and, to the maximum extent 
practicable, coordinate the activities of the Department in this regard 
with similar activities of other Federal entities.
    ``(c) Dissemination of Information.--The Secretary shall 
disseminate, for voluntary informational purposes, information on 
practices that scientifically valid research indicates are most 
successful in improving the quality of State and tribal programs funded 
under this part.''.
    (c) Technical Assistance.--Section 406 (42 U.S.C. 606) is amended 
to read as follows:

``SEC. 406. TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary shall provide technical assistance 
to States and Indian tribes (which may include providing technical 
assistance on a reimbursable basis), which shall be provided by 
qualified experts on practices grounded in scientifically valid 
research, where appropriate, to support activities related publication 
of State performance under section 407(b) and to carry out State and 
tribal programs funded under this part.
    ``(b) Reservation of Funds.--The Secretary shall reserve not more 
than 0.25 percent of the amount appropriated by section 403(a)(1)(C) 
for a fiscal year to carry out subsection (a) of this section.''.

SEC. 15. ALIGNING AND IMPROVING DATA REPORTING.

    (a) Requirement That States Report Full-Population Data.--Section 
411(a)(1) (42 U.S.C. 611(a)(1)) is amended--
            (1) by striking subparagraph (B);
            (2) by striking ``(1) general reporting requirement.--''; 
        and
            (3) by--
                    (A) redesignating--
                            (i) subparagraph (A) as paragraph (1);
                            (ii) clauses (i) through (xvii) of 
                        subparagraph (A) as subparagraphs (A) through 
                        (Q), respectively;
                            (iii) subclauses (I) through (V) of clause 
                        (ii) as clauses (i) through (v), respectively;
                            (iv) subclauses (I) through (VII) of clause 
                        (xi) as clauses (i) through (vii), 
                        respectively; and
                            (v) subclauses (I) through (V) of clause 
                        (xvi) as clauses (i) through (v), respectively; 
                        and
                    (B) moving each such redesignated provision 2 ems 
                to the left.
    (b) Report on Participation in Work Activities.--Section 411(a)(1) 
(42 U.S.C. 611(a)(1)), as amended by subsection (a)(3) of this section, 
is amended by striking subparagraphs (K) and (L) and inserting the 
following:
                    ``(K) The work eligibility status of each 
                individual in the family, and--
                            ``(i) in the case of each work-eligible 
                        individual (as defined in the regulations 
                        promulgated pursuant to section 
                        407(i)(1)(A)(i)) in the family--
                                    ``(I) the number of hours 
                                (including zero hours) per month of 
                                participation in--
                                            ``(aa) work activities (as 
                                        defined in section 407(d)); and
                                            ``(bb) any other activity 
                                        required by the State to remove 
                                        a barrier to employment; and
                            ``(ii) in the case of each individual in 
                        the family who is not a work-eligible 
                        individual (as so defined), the reason for that 
                        status.
                    ``(L) For each work-eligible individual (as so 
                defined) and each adult in the family who did not 
                participate in work activities (as so defined) during a 
                month, the reason for the lack of participation.''.
    (c) Reporting of Information on Employment and Earnings Outcomes.--
Section 411(c) (42 U.S.C. 611(c)) is amended to read as follows:
    ``(c) Reporting of Information on Employment and Earnings 
Outcomes.--The Secretary, in consultation with the Secretary of Labor, 
shall determine the information that is necessary to compute the 
employment and earnings outcomes and the statistical adjustment model 
for the employment and earnings outcomes required under section 407, 
and each eligible State shall collect and report that information to 
the Secretary.''.

SEC. 16. TECHNICAL CORRECTIONS TO DATA EXCHANGE STANDARDS TO IMPROVE 
              PROGRAM COORDINATION.

    (a) In General.--Section 411(d) (42 U.S.C. 611(d)) is amended to 
read as follows:
    ``(d) Data Exchange Standards for Improved Interoperability.--
            ``(1) Designation.--The Secretary shall, in consultation 
        with an interagency work group established by the Office of 
        Management and Budget and considering State government 
        perspectives, by rule, designate data exchange standards to 
        govern, under this part--
                    ``(A) necessary categories of information that 
                State agencies operating programs under State plans 
                approved under this part are required under applicable 
                Federal law to electronically exchange with another 
                State agency; and
                    ``(B) Federal reporting and data exchange required 
                under applicable Federal law.
            ``(2) Requirements.--The data exchange standards required 
        by paragraph (1) shall, to the extent practicable--
                    ``(A) incorporate a widely accepted, non-
                proprietary, searchable, computer-readable format, such 
                as the eXtensible Markup Language;
                    ``(B) contain interoperable standards developed and 
                maintained by intergovernmental partnerships, such as 
                the National Information Exchange Model;
                    ``(C) incorporate interoperable standards developed 
                and maintained by Federal entities with authority over 
                contracting and financial assistance;
                    ``(D) be consistent with and implement applicable 
                accounting principles;
                    ``(E) be implemented in a manner that is cost-
                effective and improves program efficiency and 
                effectiveness; and
                    ``(F) be capable of being continually upgraded as 
                necessary.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to require a change to existing data 
        exchange standards found to be effective and efficient.''.
    (b) Effective Date.--Not later than the date that is 24 months 
after the date of the enactment of this section, the Secretary of 
Health and Human Services shall issue a proposed rule that--
            (1) identifies federally required data exchanges, include 
        specification and timing of exchanges to be standardized, and 
        address the factors used in determining whether and when to 
        standardize data exchanges; and
            (2) specifies State implementation options and describes 
        future milestones.

SEC. 17. SET-ASIDE FOR ECONOMIC DOWNTURNS.

    Section 404(e) (42 U.S.C. 604(e)) is amended to read as follows:
    ``(e) Deadlines for Obligation and Expenditures of Funds by 
States.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State to which funds are paid under section 403(a)(1) shall 
        obligate the funds within 2 years after the date the funds are 
        so paid, and shall expend the funds within 3 years after such 
        date.
            ``(2) Exception for limited amount of funds set aside for 
        future use.--A State to which funds are paid under section 
        403(a)(1) may reserve not more than 15 percent of the funds for 
        future use in the State program funded under this part.''.

SEC. 18. DEFINITIONS RELATED TO USE OF FUNDS.

    Section 419 (42 U.S.C. 619) is amended by adding at the end the 
following:
            ``(6) Assistance.--The term `assistance' means cash, 
        payments, vouchers, and other forms of benefits designed to 
        meet a family's ongoing basic needs (such as for food, 
        clothing, shelter, utilities, household goods, personal care 
        items, and general incidental expenses).
            ``(7) Work supports.--The term `work supports' means 
        assistance and non-assistance transportation benefits (such as 
        the value of allowances, bus tokens, car payments, auto repair, 
        auto insurance reimbursement, and van services provided in 
        order to help families obtain, retain, or advance in 
        employment, participate in work activities (as defined in 
        section 407(d)), or as a non-recurrent, short-term benefit, 
        including goods provided to individuals in order to help them 
        obtain or maintain employment (such as tools, uniforms, fees to 
        obtain special licenses, bonuses, incentives, and work support 
        allowances and expenditures for job access).
            ``(8) Supportive services.--The term `supportive services' 
        means services such as domestic violence services, and mental 
        health, substance abuse and disability services, housing 
        counseling services, and other family supports, except to the 
        extent that the provision of the service would violate section 
        408(a)(6).
            ``(9) JOBS benefit.--The term `JOBS benefit' means--
                    ``(A) assistance; or
                    ``(B) wage subsidies that are paid, with funds 
                provided under section 403(a) or with qualified State 
                expenditures, with respect to a person who--
                            ``(i) was a work-eligible individual (as 
                        defined in the regulations promulgated pursuant 
                        to section 407(i)(1)(A)(i)) at the time of 
                        entry into subsidized employment, such as on-
                        the-job training or apprenticeship; and
                            ``(ii) is not receiving assistance.''.

SEC. 19. ELIMINATION OF OBSOLETE PROVISIONS.

    (a) Elimination of Supplemental Grants to States.--Section 403(a) 
(42 U.S.C. 603(a)) is amended by striking paragraph (3).
    (b) Elimination of Bonus To Reward High Performance States.--
            (1) In general.--Section 403(a) (42 U.S.C. 603(a)) is 
        amended by striking paragraph (4).
            (2) Conforming amendment.--Section 1108(a)(2) (42 U.S.C. 
        1308(a)(2)) is amended by striking ``403(a)(4),''.
    (c) Elimination of Welfare-To-Work Grants.--
            (1) In general.--Section 403(a) (42 U.S.C. 603(a)) is 
        amended by striking paragraph (5).
            (2) Conforming amendments.--
                    (A) Elimination of exclusion from time limit.--
                Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by 
                striking subparagraph (G).
                    (B) Elimination of penalty for misuse of 
                competitive welfare-to-work funds.--Section 409(a)(1) 
                (42 U.S.C. 609(a)(1)) is amended by striking 
                subparagraph (C).
                    (C) Elimination of exclusion from qualified state 
                expenditures of state funds used to match welfare-to-
                work grant funds.--Section 409(a)(7)(B)(iv) (42 U.S.C. 
                609(a)(7)(B)(iv)) is amended in the 1st sentence--
                            (i) by adding ``or'' at the end of 
                        subclause (II); and
                            (ii) by striking subclause (III) and 
                        redesignating subclause (IV) as subclause 
                        (III).
                    (D) Elimination of penalty for failure of state to 
                maintain historic effort during year in which welfare-
                to-work grant is received.--Section 409(a) (42 U.S.C. 
                609(a)) is amended by striking paragraph (13).
                    (E) Elimination of requirements relating to 
                welfare-to-work grants in quarterly state reports.--
                Section 411(a) (42 U.S.C. 611(a)) is amended--
                            (i) in paragraph (1), by striking ``(except 
                        for information relating to activities carried 
                        out under section 403(a)(5))''; and
                            (ii) in each of paragraphs (2) through (4), 
                        by striking the comma and all that follows and 
                        inserting a period.
                    (F) Indian tribal programs.--Section 412(a) (42 
                U.S.C. 612(a)) is amended by striking paragraph (3).
                    (G) Elimination of requirement to disclose certain 
                information to private industry council receiving 
                welfare-to-work funds.--Section 454A(f) (42 U.S.C. 
                654a(f)) is amended by striking paragraph (5).
                    (H) Grants to territories.--Section 1108(a)(2) (42 
                U.S.C. 1308(a)(2)) is amended by striking 
                ``403(a)(5),''.
    (d) Elimination of Contingency Fund.--
            (1) In general.--Section 403 (42 U.S.C. 603) is amended by 
        striking all of subsection (b) except paragraph (5).
            (2) Conforming amendments.--
                    (A) Transfer of needy state definition.--
                            (i) In general.--Paragraph (5) of section 
                        403(b) (42 U.S.C. 603(b)(5)) is--
                                    (I) amended--
                                            (aa) in the matter 
                                        preceding subparagraph (A), by 
                                        striking ``paragraph (4)'' and 
                                        inserting ``subparagraph (C)'';
                                            (bb) in each of 
                                        subparagraphs (A) and (B), by 
                                        redesignating clauses (i) and 
                                        (ii) as subclauses (I) and 
                                        (II), respectively;
                                            (cc) by redesignating 
                                        subparagraphs (A) and (B) as 
                                        clauses (i) and (ii), 
                                        respectively;
                                            (dd) by redesignating such 
                                        paragraph as subparagraph (D); 
                                        and
                                            (ee) by moving each 
                                        provision 2 ems to the left; 
                                        and
                                    (II) as so amended, hereby 
                                transferred into section 409(a)(3) (42 
                                U.S.C. 609(a)(3)) and added to the end 
                                of such section.
                            (ii) Conforming amendment.--Section 
                        409(a)(3)(C) (42 U.S.C. 609(a)(3)(C)) is 
                        amended by striking ``(as defined in section 
                        403(b)(5))''.
                    (B) Elimination of penalty for failure of state 
                receiving amounts from contingency fund to maintain 100 
                percent of historic effort.--Section 409(a) (42 U.S.C. 
                609(a)) is amended by striking paragraph (10).
    (e) Conforming Amendments Related to Elimination of Federal Loans 
for State Welfare Programs.--
            (1) Elimination of associated penalty provision.--
                    (A) In general.--Section 409(a) (42 U.S.C. 609(a)) 
                is amended by striking paragraph (6).
                    (B) Conforming amendments.--Section 412(g)(1) (42 
                U.S.C. 612(g)(1)) is amended by striking ``(a)(6),''.
            (2) Elimination of provision providing for tribal 
        eligibility.--Section 412 (42 U.S.C. 612) is amended by 
        striking subsection (f).
            (3) Elimination of disregard of loan in applying limit on 
        payments to the territories.--Section 1108(a)(2) (42 U.S.C. 
        1308(a)(2)) is amended by striking ``406,''.
    (f) Elimination of Limitations on Other State Programs Funded With 
Qualified State Expenditures.--
            (1) The following provisions are each amended by striking 
        ``or any other State program funded with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i))'':
                    (A) Paragraphs (1) and (2) of section 407(e) (42 
                U.S.C. 607(e)(1) and (2)).
                    (B) Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)).
                    (C) Subsections (a)(1), (d), and (e)(1) of section 
                413 (42 U.S.C. 613(a)(1), (d), and (e)(1)).
            (2) Section 413(a)(1) (42 U.S.C. 613(a)(1)) is amended by 
        striking ``and any other State program funded with qualified 
        State expenditures (as defined in section 409(a)(7)(B)(i))''.
    (g) Conforming Amendments Related to Elimination of Report.--
            (1) In general.--Section 409(a)(2) (42 U.S.C. 609(a)(2)) is 
        amended--
                    (A) in the paragraph heading, by inserting 
                ``quarterly'' before ``report'';
                    (B) in subparagraph (A)(ii), by striking ``clause 
                (i)'' and inserting ``subparagraph (A)'';
                    (C) by striking ``(a) quarterly reports.--'';
                    (D) by striking subparagraph (B); and
                    (E) by redesignating clauses (i) and (ii) of 
                subparagraph (A) as subparagraphs (A) and (B), 
                respectively.
            (2) Conforming amendments.--
                    (A) Section 409(b)(2) (42 U.S.C. 609(b)(2)) is 
                amended by striking ``and,'' and all that follows and 
                inserting a period.
                    (B) Section 409(c)(4) (42 U.S.C. 609(c)(4)) is 
                amended by striking ``(2)(B),''.
    (h) Annual Reports to Congress.--Section 411(b)(1)(A) (42 U.S.C. 
611(b)(1)(A)) is amended by striking ``participation rates'' and 
inserting ``outcome measures''.
    (i) Reduction in Force Provisions.--Section 416 (42 U.S.C. 616) is 
amended by striking ``, and the Secretary'' and all that follows and 
inserting a period.
    (j) Conforming Cross-References.--
            (1) Section 409 (42 U.S.C. 609) is amended--
                    (A) in subsection (a)(7)(B)(i)(III), by striking 
                ``(12)'' and inserting ``(10)'';
                    (B) in subsection (a) (as amended by subsections 
                (c)(2)(D), (d)(2)(B), and (e)(1)(A) of this section), 
                by redesignating paragraphs (7), (8), (9), (11), (12), 
                (14), (15), and (16) as paragraphs (6) through (13), 
                respectively;
                    (C) in subsection (b)(2), by striking ``(8), (10), 
                (12), or (13)'' and inserting ``or (10)''; and
                    (D) in subsection (c)(4), by striking ``(8), (10), 
                (12), (13), or (16)'' and inserting ``(10), or (13)''.
            (2) Section 452 (42 U.S.C. 652) is amended in each of 
        subsections (d)(3)(A)(i) and (g)(1) by striking ``409(a)(8)'' 
        and inserting ``409(a)(7)''.
    (k) Modifications to Maintenance-of-Effort Requirement.--Section 
409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is amended--
            (1) in subclause (I)--
                    (A) in the matter preceding item (aa), by striking 
                ``all State programs'' and inserting ``the State 
                program funded under this part'';
                    (B) by redesignating items (dd) and (ee) as items 
                (ee) and (ff), respectively, and inserting after item 
                (cc) the following:
                                            ``(dd) Expenditures for a 
                                        purpose described in paragraph 
                                        (3) or (4) of section 
                                        401(a).''; and
                    (C) in item (ee) (as so redesignated by clause (ii) 
                of this subparagraph), by striking ``and (ee)'' and 
                inserting ``(dd), and (ff)'';
            (2) in subclause (II)(aa), by inserting ``(as in effect 
        just before the effective date of the Jobs and Opportunity with 
        Benefits and Services for Success Act)'' after ``this 
        section'';
            (3) by striking subclause (V) and redesignating subclause 
        (IV) as subclause (V); and
            (4) in subclause (V) (as so redesignated by subparagraph 
        (C) of this paragraph), by inserting ``, except any of such 
        families whose monthly income exceeds twice the poverty line 
        (as defined by the Office of Management and Budget, and revised 
        annually in accordance with section 673(2) of the Omnibus 
        Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)))'' before 
        the period.

SEC. 20. EFFECTIVE DATE.

    Except as provided in section 12(b), the amendments made by this 
Act shall take effect on October 1, 2018.
                                 <all>
```