II 

Calendar No. 60 

109TH CONGRESS 

1ST SESSION S. 667 

To reauthorize and improve the program of block grants to States for temporary assistance for needy families, improve access to quality child 

care, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 17, 2005 

Mr. GRASSLEY, from the Committee on Finance, reported the following 

original bill; which was read twice and placed on the calendar 

A BILL 

To reauthorize and improve the program of block grants 

to States for temporary assistance for needy families, 

improve access to quality child care, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Personal Responsibility 

5 and Individual Development for Everyone Act’’ or the 

6 ‘‘PRIDE Act’’. 
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1 SEC. 2. TABLE OF CONTENTS. 

2 The table of contents of this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

TITLE I—TANF 

Sec. 101. State plan. 

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. Work participation requirements. 

Sec. 110. Universal engagement and family self-sufficiency plan requirements; 

other prohibitions and requirements. 

Sec. 111. Penalties. 

Sec. 112. Data collection and reporting. 

Sec. 113. Direct funding and administration by Indian tribes. 

Sec. 114. Research, evaluations, and national studies. 

Sec. 115. Study by the census bureau. 

Sec. 116. Funding for child care. 

Sec. 117. Definitions. 

Sec. 118. Responsible fatherhood program. 

Sec. 119. Additional grants. 

Sec. 120. Technical corrections. 

TITLE II—ABSTINENCE EDUCATION 

Sec. 201. Extension of abstinence education program. 

TITLE III—CHILD SUPPORT 

Sec. 301. Distribution of child support collected by States on behalf of children 

receiving certain welfare benefits. 

Sec. 302. Mandatory review and adjustment of child support orders for families 

receiving TANF. 

Sec. 303. Report on undistributed child support payments. 

Sec. 304. Decrease in amount of child support arrearage triggering passport 

denial. 

Sec. 305. Use of tax refund intercept program to collect past-due child support 

on behalf of children who are not minors. 

Sec. 306. Garnishment of compensation paid to veterans for service-connected 

disabilities in order to enforce obligations. 

Sec. 307. Improving Federal debt collection practices. 

Sec. 308. Maintenance of technical assistance funding. 

Sec. 309. Maintenance of Federal parent locator service funding. 

Sec. 310. Identification and seizure of assets held by multistate financial institutions. 

Sec. 311. Information comparisons with insurance data. 

Sec. 312. Tribal access to the Federal parent locator service. 
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Sec. 313. Reimbursement of secretary’s costs of information comparisons and 

disclosure for enforcement of obligations on higher education 

act loans and grants. 

Sec. 314. Technical amendment relating to cooperative agreements between 

States and Indian tribes. 

Sec. 315. Claims upon longshore and harbor workers’ compensation for child 

support. 

Sec. 316. State option to use Statewide automated data processing and information retrieval system for interstate cases. 

Sec. 317. State law requirement concerning the Uniform Interstate Family 

Support Act (UIFSA). 

Sec. 318. Grants to States for access and visitation programs. 

Sec. 319. Timing of corrective action year for State noncompliance with child 

support enforcement program requirements. 

Sec. 320. Requirement that State child support enforcement agencies seek medical support for children from either parent. 

Sec. 321. Notice to State child support enforcement agency from health care 

plan administrator under certain circumstances when a child 

loses health care coverage. 

Sec. 322. Authority to continue State program for monitoring and enforcement 

of child support orders.

Sec. 323. Technical amendment relating to information comparisons and disclosure to assist in Federal debt collection. 

TITLE IV—CHILD WELFARE 

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

Sec. 402. Removal of Commonwealth of Puerto Rico IV–E funds from limitation on payments. 

Sec. 403. Authority of Indian tribes to receive Federal funds for foster care and 

adoption assistance. 

Sec. 404. Technical correction. 

TITLE V—SUPPLEMENTAL SECURITY INCOME 

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

Sec. 502. Temporary expansion of length of time-limited eligibility of qualified 

aliens for supplemental security income benefits. 

TITLE VI—TRANSITIONAL MEDICAL ASSISTANCE 

Sec. 601. Extension and simplification of the transitional medical assistance 

program (TMA). 

TITLE VII—EFFECTIVE DATE 

Sec. 701. Effective date. 

Sec. 702. Extension through remainder of fiscal year 2005. 

1 SEC. 3. REFERENCES. 

2 Except as otherwise expressly provided, wherever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi-
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1 sion, the amendment or repeal shall be considered to be 

2 made to a section or other provision of the Social Security 

3 Act. 

4 TITLE I—TANF 

5 SEC. 101. STATE PLAN. 

6 (a) PERFORMANCE IMPROVEMENT.—Section 402(a) 

7 (42 U.S.C. 602(a)) is amended— 

8 (1) in paragraph (1)— 

9 (A) in subparagraph (A)— 

10 (i) by redesignating clause (vi) as 

11 clause (vii); and 

12 (ii) by striking clause (v) and insert13 ing the following: 

14 ‘‘(v) Establish specific measurable 

15 performance objectives for pursuing the 

16 purposes of the program funded under this 

17 part or with qualified State expenditures 

18 (as defined in section 409(a)(7)(B)(i)) as 

19 described in section 401(a), including by— 

20 ‘‘(I) establishing objectives (as 

21 determined by the State) after giving 

22 consideration to the criteria used by 

23 the Secretary in establishing perform24 ance targets under section 

25 403(a)(4)(C) (with respect to work-
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1 place attachment and advancement), 

2 and such additional criteria related to 

3 other purposes of the program under 

4 this part as described in section 

5 401(a) as the Secretary, in consulta6 tion with the National Governors’ As7 sociation, the National Conference of 

8 State Legislatures, and the American 

9 Public Human Services Association, 

10 shall establish; and 

11 ‘‘(II) describing the methodology 

12 that the State will use to measure 

13 State performance in relation to each 

14 such objective. 

15 ‘‘(vi) Describe any strategies and pro16 grams the State is using or plans to use to 

17 address— 

18 ‘‘(I) employment retention and 

19 advancement for recipients of assist20 ance under the program, including 

21 placement into high-demand jobs, and 

22 whether the jobs are identified using 

23 labor market information; 

24 ‘‘(II) efforts to reduce teen preg25 nancy; 
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1 ‘‘(III) services for struggling and 

2 noncompliant families, and for clients 

3 with special problems; and 

4 ‘‘(IV) program integration, in5 cluding the extent to which employ6 ment and training services under the 

7 program are provided through the 

8 One-Stop delivery system created 

9 under the Workforce Investment Act 

10 of 1998, and the extent to which 

11 former recipients of such assistance 

12 have access to additional core, inten13 sive, or training services funded 

14 through such Act.’’; and 

15 (B) in subparagraph (B)— 

16 (i) by striking clauses (i) and (iv); 

17 (ii) by redesignating clauses (ii) and 

18 (iii) as clauses (i) and (ii), respectively; 

19 and 

20 (iii) by inserting after clause (ii) (as 

21 so redesignated by clause (ii)) the fol22 lowing: 

23 ‘‘(iii) If the State is undertaking any 

24 strategies or programs to engage faith25 based organizations in the delivery of serv-
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1 ices funded under this part, or that other2 wise relate to section 104 of the Personal 

3 Responsibility and Work Opportunity Rec4 onciliation Act of 1996, the document shall 

5 describe such strategies and programs. 

6 ‘‘(iv) The document shall describe 

7 strategies to improve program manage8 ment and performance. 

9 ‘‘(v) The document shall include, to 

10 the extent applicable with respect to each 

11 program that provides assistance that will 

12 be funded under this part or with qualified 

13 State expenditures (as defined in section 

14 409(a)(7)(B)(i)), a description of— 

15 ‘‘(I) the applicable financial and 

16 nonfinancial eligibility rules for assist17 ance provided under the program, in18 cluding income eligibility thresholds, 

19 the treatment of earnings, asset eligi20 bility rules, and excluded forms of in21 come; 

22 ‘‘(II) the amount of assistance 

23 provided to needy families, and the 

24 methodology for determining assist25 ance amounts; and 
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1 ‘‘(III) the applicable time limit 

2 policies, including the length of the 

3 time limit, exemption and extension 

4 policies, and procedures for providing 

5 services to families reaching the time 

6 limit and who have lost assistance due 

7 to time limits. 

8 ‘‘(vi) The document shall set forth the 

9 criteria for applying section 407(c)(6)(E) 

10 to an adult recipient or minor child head 

11 of household who is the parent or care12 taker relative for a child or adult depend13 ent for care. 

14 ‘‘(vii) The document shall describe 

15 how the State informs families receiving 

16 assistance under the State program funded 

17 under this part that do not include an 

18 adult or minor child head of household of 

19 the information required to be provided to 

20 other families under section 408(b)(2)(G) 

21 (relating to work support and other assist22 ance for which the family may be eligi23 ble).’’; 

24 (2) in paragraph (4), by inserting ‘‘and tribal’’ 

25 after ‘‘local’’ each place it appears; and 
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1 (3) by adding at the end the following: 

2 ‘‘(8) CERTIFICATION OF CONSULTATION ON

3 PROVISION OF TRANSPORTATION AID.—In the case 

4 of a State that provides transportation aid under the 

5 State program, a certification by the chief executive 

6 officer of the State that State and local transpor7 tation agencies and planning bodies have been con8 sulted in the development of the plan.’’. 

9 (b) PROCEDURES FOR SUBMITTING AND AMENDING

10 STATE PLANS.— 

11 (1) IN GENERAL.—Subsection (b) of section 

12 402 (42 U.S.C. 602(b)) is amended to read as fol13 lows: 

14 ‘‘(b) PROCEDURES FOR SUBMITTING AND AMENDING

15 STATE PLANS.— 

16 ‘‘(1) STANDARD STATE PLAN FORMAT.—The 

17 Secretary shall, after notice and public comment, de18 velop a proposed Standard State Plan Form to be 

19 used by States under subsection (a) and for pur20 poses of filing an amendment to the State plan in 

21 accordance with paragraph (5). Such form shall be 

22 finalized by the Secretary for use by States not later 

23 than 9 months after the date of enactment of the 

24 Personal Responsibility and Individual Development 

25 for Everyone Act. 
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1 ‘‘(2) REQUIREMENT FOR COMPLETED PLAN

2 USING STANDARD STATE PLAN FORMAT BY FISCAL

3 YEAR 2007.—Notwithstanding any other provision of 

4 law, each State shall submit a complete State plan, 

5 using the Standard State Plan Form developed 

6 under paragraph (1), not later than October 1, 

7 2006, and all subsequent State plan submissions, in8 cluding any State plan amendments, shall be made 

9 using such form. 

10 ‘‘(3) PUBLIC NOTICE AND COMMENT.—Prior to 

11 submitting a State plan to the Secretary under this 

12 section, the State shall— 

13 ‘‘(A) make the proposed State plan avail14 able to the public through an appropriate State 

15 maintained Internet website and through other 

16 means as the State determines appropriate; 

17 ‘‘(B) allow for a reasonable public com18 ment period of not less than 45 days; and 

19 ‘‘(C) make comments received concerning 

20 such plan or, at the discretion of the State, a 

21 summary of the comments received available to 

22 the public through such website and through 

23 other means as the State determines appro24 priate. 
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1 ‘‘(4) PUBLIC AVAILABILITY OF STATE PLAN.— 

2 A State shall ensure that the State plan that is in 

3 effect for any fiscal year is available to the public 

4 through an appropriate State maintained Internet 

5 website and through other means as the State deter6 mines appropriate. 

7 ‘‘(5) AMENDING THE STATE PLAN.—A State 

8 shall file an amendment to the State plan with the 

9 Secretary if the State determines that there has 

10 been a material change in any information required 

11 to be included in the State plan or any other infor12 mation that the State has included in the plan, in13 cluding substantial changes in the use of funding. 

14 Prior to submitting an amendment to the State plan 

15 to the Secretary, the State shall— 

16 ‘‘(A) make the proposed amendment avail17 able to the public as provided for in paragraph 

18 (3)(A); 

19 ‘‘(B) allow for a reasonable public com20 ment period of not less than 45 days; and 

21 ‘‘(C) make the comments available as pro22 vided for in paragraph (3)(C). 

23 ‘‘(6) STATE OPTION TO DELAY SUBMISSION OF

24 PLAN.—A State required to submit a State plan 

25 under this part during the period that begins on the 
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1 date of enactment of the Personal Responsibility and 

2 Individual Development for Everyone Act and ends 

3 on September 30, 2006, may wait until October 1, 

4 2006, to submit such plan using the Standard State 

5 Plan Form developed under paragraph (1).’’. 

6 (2) CONFORMING AMENDMENT.—Section 402 

7 (42 U.S.C. 602) is amended by striking subsection 

8 (c). 

9 (c) CONSULTATION WITH STATE REGARDING PLAN

10 AND DESIGN OF TRIBAL PROGRAMS.—Section 412(b)(1) 

11 (42 U.S.C. 612(b)(1)) is amended— 

12 (1) in subparagraph (E), by striking ‘‘and’’ at 

13 the end; 

14 (2) in subparagraph (F), by striking the period 

15 at the end and inserting ‘‘; and’’; and 

16 (3) by adding at the end the following: 

17 ‘‘(G) provides an assurance that each State 

18 in which the tribe is located has been consulted 

19 regarding the plan and its design.’’. 

20 (d) PERFORMANCE MEASURES.—Section 413 (42 

21 U.S.C. 613) is amended by adding at the end the fol22 lowing: 

23 ‘‘(k) PERFORMANCE IMPROVEMENT.—The Secretary, 

24 in consultation with the States, shall develop uniform per25 formance measures designed to assess the degree of effec-
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1 tiveness, and the degree of improvement, of State pro2 grams funded under this part in accomplishing the pur3 poses of this part.’’. 

4 (e) ANNUAL RANKING OF STATES.—Section 

5 413(d)(1) (42 U.S.C. 613(d)(1)) is amended to read as 

6 follows: 

7 ‘‘(1) ANNUAL RANKING OF STATES.— 

8 ‘‘(A) IN GENERAL.—The Secretary shall 

9 rank annually the States to which grants are 

10 paid under section 403 in the order of their 

11 success in— 

12 ‘‘(i) placing recipients of assistance 

13 under the State program funded under this 

14 part into unsubsidized jobs; 

15 ‘‘(ii) the success of the recipients in 

16 retaining employment; 

17 ‘‘(iii) the ability of the recipients to 

18 increase their wages; 

19 ‘‘(iv) the degree to which recipients 

20 have workplace attachment and advance21 ment; 

22 ‘‘(v) reducing the overall welfare case23 load; and 

24 ‘‘(vi) when a practicable method for 

25 calculating this information becomes avail-
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1 able, diverting individuals from formally 

2 applying to the State program and receiv3 ing assistance. 

4 ‘‘(B) CONSIDERATION OF OTHER FAC5 TORS.—In ranking States under this para6 graph, the Secretary shall take into account the 

7 average number, and the average proportion, of 

8 minor children living at home in families in the 

9 State that have incomes below the poverty line 

10 and the amount of funding provided each State 

11 under this part for such families.’’. 

12 SEC. 102. FAMILY ASSISTANCE GRANTS. 

13 (a) EXTENSION OF AUTHORITY.—Section 403(a)(1) 

14 (42 U.S.C. 603(a)(1)) is amended— 

15 (1) in subparagraph (A)— 

16 (A) by striking ‘‘1996, 1997, 1998, 1999, 

17 2000, 2001, 2002, and 2003’’ and inserting 

18 ‘‘2006 through 2010’’; and 

19 (B) by inserting ‘‘payable to the State for 

20 the fiscal year’’ before the period; and 

21 (2) in subparagraph (C), by striking ‘‘for fiscal 

22 year 2003’’ and all that follows through the period, 

23 and inserting ‘‘for each of fiscal years 2006 through 

24 2010, $16,566,542,000 for grants under this para25 graph.’’. 
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1 (b) MATCHING GRANTS FOR THE TERRITORIES.— 

2 Section 1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by 

3 striking ‘‘1997 through 2003’’ and inserting ‘‘2006 

4 through 2010’’. 

5 SEC. 103. PROMOTION OF FAMILY FORMATION AND 

6 HEALTHY MARRIAGE. 

7 (a) STATE PLANS.—Section 402(a)(1)(A) (42 U.S.C. 

8 602(a)(1)(A)), as amended by section 101(a), is amended 

9 by adding at the end the following: 

10 ‘‘(viii) Encourage equitable treatment 

11 of healthy 2-parent married families under 

12 the program referred to in clause (i).’’. 

13 (b) HEALTHY MARRIAGE PROMOTION GRANTS; RE14 PEAL OF BONUS FOR REDUCTION OF ILLEGITIMACY

15 RATIO.—Section 403(a)(2) (42 U.S.C. 603(a)(2)) is 

16 amended to read as follows: 

17 ‘‘(2) HEALTHY MARRIAGE PROMOTION

18 GRANTS.— 

19 ‘‘(A) AUTHORITY.— 

20 ‘‘(i) IN GENERAL.—The Secretary 

21 shall award competitive grants to States 

22 and Indian tribes and tribal organizations 

23 for not more than 50 percent of the cost 

24 of developing and implementing innovative 
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1 programs to promote and support healthy 

2 2-parent married families. 

3 ‘‘(ii) USE OF OTHER TANF FUNDS.— 

4 A State or Indian tribe or tribal organiza5 tion with an approved tribal family assist6 ance plan may use funds provided under 

7 other grants made under this part for all 

8 or part of the expenditures incurred for the 

9 remainder of the costs described in clause 

10 (i). In the case of a State, any such funds 

11 expended shall not be considered qualified 

12 State expenditures for purposes of section 

13 409(a)(7). 

14 ‘‘(B) HEALTHY MARRIAGE PROMOTION AC15 TIVITIES.—Funds provided under subparagraph 

16 (A) and corresponding State matching funds 

17 shall be used to support any of the following 

18 programs or activities: 

19 ‘‘(i) Public advertising campaigns on 

20 the value of marriage and the skills needed 

21 to increase marital stability and health. 

22 ‘‘(ii) Education in high schools on the 

23 importance of healthy marriages and the 

24 characteristics of other healthy relation25 ships experienced throughout life, including 
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1 education on the importance of grounding 

2 all relationships in mutual respect and how 

3 earlier healthy relationships are the build4 ing blocks for later healthy marital rela5 tionships. 

6 ‘‘(iii) Marriage education, marriage 

7 skills, and relationship skills programs, 

8 that may include parenting skills, financial 

9 management, conflict resolution, and job 

10 and career advancement, for non-married 

11 pregnant women, non-married expectant 

12 fathers, and non-married recent parents. 

13 ‘‘(iv) Pre-marital education and mar14 riage skills training for engaged couples 

15 and for couples or individuals interested in 

16 marriage. 

17 ‘‘(v) Marriage enhancement and mar18 riage skills training programs for married 

19 couples. 

20 ‘‘(vi) Divorce reduction programs that 

21 teach relationship skills. 

22 ‘‘(vii) Marriage mentoring programs 

23 which use married couples as role models 

24 and mentors. 
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1 ‘‘(viii) Programs to reduce the dis2 incentives to marriage in means-tested aid 

3 programs, if offered in conjunction with 

4 any activity described in this subpara5 graph. 

6 ‘‘(C) VOLUNTARY PARTICIPATION.— 

7 ‘‘(i) IN GENERAL.—Participation in 

8 programs or activities described in any of 

9 clauses (iii) through (vii) of subparagraph 

10 (B) shall be voluntary. 

11 ‘‘(ii) ASSURANCE OF INFORMED CON12 SENT AND OPTION TO DISENROLL.—Each 

13 State or Indian tribe or tribal organization 

14 that carries out programs or activities de15 scribed in any of clauses (iii) through (vii) 

16 of subparagraph (B) shall provide the Sec17 retary with an assurance that each recipi18 ent of assistance under the State program 

19 funded under this part who elects to par20 ticipate in such programs or activities shall 

21 be informed, prior to making such elec22 tion— 

23 ‘‘(I) that such participation is 

24 voluntary; 
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1 ‘‘(II) that the recipient may elect 

2 at any time to disenroll from such 

3 programs or activities by notifying the 

4 State or Indian tribe or tribal organi5 zation that the recipient no longer 

6 wants to participate in such programs 

7 or activities; 

8 ‘‘(III) of the process, if any, by 

9 which a recipient who chooses to with10 draw from, or fails to participate in, 

11 such programs or activities may be re12 quired to follow to become engaged in 

13 other programs or activities that are 

14 not programs or activities described in 

15 clauses (iii) through (vii) of subpara16 graph (B); and 

17 ‘‘(IV) that the State may reas18 sign a recipient at any time, in ac19 cordance with the requirements of sec20 tion 408(b), to other activities that 

21 are not programs or activities de22 scribed in clauses (iii) through (vii) of 

23 subparagraph (B). 

24 ‘‘(iii) NO SANCTION FOR REFUSAL OR

25 FAILURE TO PARTICIPATE.— 
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1 ‘‘(I) IN GENERAL.—No State or 

2 Indian tribe or tribal organization 

3 shall deny or reduce assistance to a 

4 recipient of assistance under the State 

5 program funded under this part solely 

6 on the basis of the recipient’s with7 drawal from, or failure to, participate 

8 in programs or activities described in 

9 clauses (iii) through (vii) of subpara10 graph (B). 

11 ‘‘(II) RULE OF CONSTRUC12 TION.—Nothing in this subparagraph 

13 shall be construed as precluding a 

14 State or Indian tribe or tribal organi15 zation from requiring a recipient of 

16 assistance under the State program 

17 funded under this part to engage in 

18 programs or activities that are not 

19 programs or activities described in 

20 clauses (iii) through (vii) of subpara21 graph (B) or to sanction a recipient 

22 for failure to engage in such programs 

23 or activities or to follow any such pro24 cedures the State may establish to en-
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1 roll a recipient in such other programs 

2 or activities. 

3 ‘‘(D) GENERAL RULES GOVERNING USE OF

4 FUNDS.—The rules of section 404, other than 

5 subsection (b) of that section, shall not apply to 

6 a grant made under this paragraph. 

7 ‘‘(E) REQUIREMENTS FOR RECEIPT OF

8 FUNDS.—A State or Indian tribe or tribal orga9 nization may not be awarded a grant under this 

10 paragraph unless the State or Indian tribe or 

11 tribal organization, as a condition of receiving 

12 funds under such a grant— 

13 ‘‘(i) consults with domestic violence 

14 organizations that have demonstrated ex15 pertise working with survivors of domestic 

16 violence in developing policies, procedures, 

17 programs and training necessary to appro18 priately address domestic violence in fami19 lies served by programs and activities 

20 funded under such grant; 

21 ‘‘(ii) describes in the application for a 

22 grant under this paragraph— 

23 ‘‘(I) how the programs or activi24 ties proposed to be conducted will ap-
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1 propriately address issues of domestic 

2 violence; and 

3 ‘‘(II) what the State or Indian 

4 tribe or tribal organization, will do, to 

5 the extent relevant, to ensure that 

6 participation in such programs or ac7 tivities is voluntary, and to inform po8 tential participants that their involve9 ment is voluntary; 

10 ‘‘(iii) establishes a written protocol for 

11 providers and administrators of programs 

12 and activities relevant to the grant that— 

13 ‘‘(I) provides for helping identify 

14 instances or risks of domestic violence; 

15 and 

16 ‘‘(II) specifies the procedures for 

17 making service referrals and providing 

18 protections and appropriate assistance 

19 for identified individuals and families; 

20 ‘‘(iv) establishes performance goals for 

21 funded programs and activities that clarify 

22 the primary objective of such funded pro23 grams and activities is to increase the inci24 dence and quality of healthy marriages and 
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1 not solely to expand the number or per2 centage of married couples; and 

3 ‘‘(v) submits the annual reports re4 quired under subparagraph (F). 

5 ‘‘(F) ANNUAL REPORTS TO THE SEC6 RETARY.—Each State and Indian tribe or tribal 

7 organization awarded a grant under this para8 graph shall submit to the Secretary an annual 

9 report on the programs and activities funded 

10 under the grant that includes the following: 

11 ‘‘(i) A description of the written pro12 tocols developed in accordance with the re13 quirements of subparagraph (E)(iii) for 

14 each program or activity funded under the 

15 grant and how such protocols are used, in16 cluding specific policies and procedures for 

17 addressing domestic violence issues within 

18 each program or activity funded under the 

19 grant and how confidentiality issues are 

20 addressed. 

21 ‘‘(ii) The name of each individual, or22 ganization, or entity that was consulted in 

23 the development of such protocols. 

24 ‘‘(iii) A description of each individual, 

25 organization, or entity (if any) that pro-
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1 vided training on domestic violence for the 

2 State, Indian tribe or tribal organization, 

3 or for any subgrantees. 

4 ‘‘(iv) A description of any implemen5 tation issues identified with respect to do6 mestic violence and how such issues were 

7 addressed. 

8 ‘‘(G) BIANNUAL REPORTS TO CONGRESS.— 

9 Not later than 24 months after the date of en10 actment of the Personal Responsibility and In11 dividual Development for Everyone Act, and 

12 every 6 months thereafter, the Secretary shall 

13 submit to Congress a report regarding the pro14 grams and activities funded with grants award15 ed under this paragraph. Each report submitted 

16 in accordance with this subparagraph shall in17 clude the following: 

18 ‘‘(i) The name of each program or ac19 tivity funded with such grants and the 

20 name of each grantee and subgrantee. 

21 ‘‘(ii) The total number of individuals 

22 served under programs or activities funded 

23 under the grant. 

24 ‘‘(iii) The total number of individuals 

25 who— 
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1 ‘‘(I) completed a program or ac2 tivity funded under the grant, includ3 ing the number of such individuals 

4 who received assistance under the 

5 State program funded under this part 

6 or with qualified State expenditures 

7 (as defined in section 409(a)(7)(B)(i)) 

8 while participating in such program or 

9 activity; and 

10 ‘‘(II) did not complete such a 

11 program or activity, including due to 

12 ceasing to receive assistance under the 

13 State program funded under this part 

14 or with qualified State expenditures 

15 (as defined in section 409(a)(7)(B)(i)) 

16 or for other reasons. 

17 ‘‘(iv) A description of the types of 

18 services offered under such programs or 

19 activities. 

20 ‘‘(v) The criteria for selection of pro21 grams or activities to be funded under 

22 such grant with respect to the award of 

23 grants by the Secretary and the awarding 

24 of funds to subgrantees. 
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1 ‘‘(vi) A description of the activities 

2 carried out by the Secretary to support 

3 grantees and subgrantees in responding to 

4 domestic violence issues. 

5 ‘‘(v) A summary of the written domes6 tic violence protocols used by grantees and 

7 subgrantees. 

8 ‘‘(vii) A summary of who the grantees 

9 and subgrantees consulted with in devel10 oping such protocols. 

11 ‘‘(viii) A summary of the training pro12 vided to grantees and subgrantees on do13 mestic violence. 

14 ‘‘(ix) A list of the organizations, enti15 ties, and activities funded under sections 

16 103(c) and 114(e) of the Personal Respon17 sibility and Individual Development for Ev18 eryone Act. 

19 ‘‘(H) DOMESTIC VIOLENCE DEFINED.—In 

20 this paragraph, the term ‘domestic violence’ has 

21 the meaning given that term in section 

22 402(a)(7)(B). 

23 ‘‘(I) APPROPRIATION.— 

24 ‘‘(i) IN GENERAL.—Out of any money 

25 in the Treasury of the United States not 
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1 otherwise appropriated, there are appro2 priated for each of fiscal years 2005 

3 through 2010, $100,000,000 for grants 

4 under this paragraph. 

5 ‘‘(ii) EXTENDED AVAILABILITY OF

6 FUNDS.— 

7 ‘‘(I) IN GENERAL.—Funds ap8 propriated under clause (i) for each of 

9 fiscal years 2006 through 2010 shall 

10 remain available to the Secretary until 

11 expended. 

12 ‘‘(II) AUTHORITY FOR GRANT

13 RECIPIENTS.—A State or Indian tribe 

14 or tribal organization may use funds 

15 made available under a grant awarded 

16 under this paragraph without fiscal 

17 year limitation pursuant to the terms 

18 of the grant.’’. 

19 (c) BEST PRACTICES FOR ADDRESSING DOMESTIC

20 VIOLENCE.—Section 413 (42 U.S.C. 613) as amended by 

21 section 101(d), is amended by adding at the end the fol22 lowing: 

23 ‘‘(l) BEST PRACTICES FOR ADDRESSING DOMESTIC

24 VIOLENCE.— 
28 

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1 ‘‘(1) IN GENERAL.—The Secretary shall, by 

2 grant, contract, or interagency agreement, develop 

3 and implement programs that are designed to ad4 dress domestic violence as a barrier to healthy rela5 tionships, marriage, and economic security. Pro6 grams developed and implemented under this sub7 section shall include— 

8 ‘‘(A) training for caseworkers admin9 istering the State program funded under this 

10 part; 

11 ‘‘(B) technical assistance; 

12 ‘‘(C) the provision of voluntary services for 

13 victims of such violence; and 

14 ‘‘(D) activities related to the prevention of 

15 domestic violence. 

16 ‘‘(2) DOMESTIC VIOLENCE DEFINED.—In this 

17 subsection, the term ‘domestic violence’ has the 

18 meaning given that term in section 402(a)(7)(B). 

19 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

20 There is authorized to be appropriated to carry out 

21 this subsection, $10,000,000 for each of fiscal years 

22 2006 through 2010. Amounts appropriated to carry 

23 out this subsection shall be in addition to and not 

24 in lieu of amounts otherwise appropriated to carry 

25 out programs to address domestic violence.’’. 
29 

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1 (d) COUNTING OF SPENDING ON NON-ELIGIBLE

2 FAMILIES TO PREVENT AND REDUCE INCIDENCE OF

3 OUT-OF-WEDLOCK BIRTHS, ENCOURAGE FORMATION

4 AND MAINTENANCE OF HEALTHY 2-PARENT MARRIED

5 FAMILIES, OR ENCOURAGE RESPONSIBLE FATHER6 HOOD.—Section 409(a)(7)(B)(i) (42 U.S.C. 

7 609(a)(7)(B)(i)) is amended by adding at the end the fol8 lowing: 

9 ‘‘(V) COUNTING OF SPENDING

10 ON NON-ELIGIBLE FAMILIES TO PRE11 VENT AND REDUCE INCIDENCE OF

12 OUT-OF-WEDLOCK BIRTHS, ENCOUR13 AGE FORMATION AND MAINTENANCE

14 OF HEALTHY 2-PARENT MARRIED

15 FAMILIES, OR ENCOURAGE RESPON16 SIBLE FATHERHOOD.—Subject to sub17 clauses (II) and (III), the term ‘quali18 fied State expenditures’ includes the 

19 total expenditures by the State during 

20 the fiscal year under all State pro21 grams for a purpose described in 

22 paragraph (3) or (4) of section 

23 401(a).’’. 

24 (e) PURPOSES.—Section 401(a)(4) (42 U.S.C. 

25 601(a)(4)) is amended by striking ‘‘two-parent families’’ 
30 

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1 and inserting ‘‘healthy 2-parent married families, and en2 courage responsible fatherhood’’. 

3 SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION IN4 CREASES IN CERTAIN STATES. 

5 Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is 

6 amended— 

7 (1) in clause (i), by striking ‘‘2002 and 2003’’ 

8 and inserting ‘‘2006 through 2009’’; 

9 (2) in clause (ii), by striking ‘‘March 31, 2005’’ 

10 and inserting ‘‘fiscal year 2009’’; and 

11 (3) in clause (iii), by striking ‘‘2002 and 2003’’ 

12 and inserting ‘‘2006 through 2009’’. 

13 SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVE14 MENT. 

15 (a) IN GENERAL.—Section 403(a)(4) (42 U.S.C. 

16 603(a)(4)) is amended to read as follows: 

17 ‘‘(4) BONUS TO REWARD EMPLOYMENT

18 ACHIEVEMENT.— 

19 ‘‘(A) IN GENERAL.—The Secretary shall 

20 make a grant pursuant to this paragraph to 

21 each State for each bonus year for which the 

22 State is an employment achievement State. 

23 ‘‘(B) AMOUNT OF GRANT.— 

24 ‘‘(i) IN GENERAL.—Subject to clause 

25 (ii), the Secretary shall determine the 
31 

•S 667 PCS 

1 amount of the grant payable under this 

2 paragraph to an employment achievement 

3 State for a bonus year, which shall be 

4 based on the performance of the State as 

5 determined under subparagraph (D)(i) for 

6 the fiscal year that immediately precedes 

7 the bonus year. 

8 ‘‘(ii) LIMITATION.—The amount pay9 able to a State under this paragraph for a 

10 bonus year shall not exceed 5 percent of 

11 the State family assistance grant. 

12 ‘‘(C) FORMULA FOR MEASURING STATE

13 PERFORMANCE.— 

14 ‘‘(i) IN GENERAL.—Subject to clause 

15 (ii), not later than October 1, 2006, the 

16 Secretary, in consultation with the States, 

17 shall develop a formula for measuring 

18 State performance in operating the State 

19 program funded under this part so as to 

20 achieve the goal of workplace attachment 

21 and advancement for families receiving as22 sistance under the program (and for fami23 lies diverted from receiving such assistance 

24 if, and only to the extent that, the Sec25 retary determines that it is possible to 
32 

•S 667 PCS 

1 measure State performance with respect to 

2 such families), as measured on an absolute 

3 basis and on the basis of improvement in 

4 State performance. 

5 ‘‘(ii) SPECIAL RULE FOR BONUS

6 YEARS 2006 AND 2007.—For the purposes 

7 of awarding a bonus under this paragraph 

8 for bonus year 2006 or 2007, the Sec9 retary may measure the performance of a 

10 State in fiscal year 2005 or 2006 (as the 

11 case may be) using the job entry rate, job 

12 retention rate, and earnings gain rate com13 ponents of the formula developed under 

14 section 403(a)(4)(C) as in effect imme15 diately before the effective date of this 

16 paragraph. 

17 ‘‘(D) DETERMINATION OF STATE PER18 FORMANCE.—For each bonus year, the Sec19 retary shall— 

20 ‘‘(i) use the formula developed under 

21 subparagraph (C) to determine the per22 formance of each eligible State for the fis23 cal year that precedes the bonus year; and 

24 ‘‘(ii) prescribe performance standards 

25 in such a manner so as to ensure that— 
33 

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1 ‘‘(I) the average annual total 

2 amount of grants to be made under 

3 this paragraph for— 

4 ‘‘(aa) each of bonus years 

5 2006 through 2008 equals 

6 $50,000,000; and 

7 ‘‘(bb) each of bonus years 

8 2009 through 2011 equals 

9 $100,000,000; and 

10 ‘‘(II) the total amount of grants 

11 to be made under this paragraph for 

12 all bonus years equals $450,000,000. 

13 ‘‘(E) DEFINITIONS.—In this paragraph: 

14 ‘‘(i) BONUS YEAR.—The term ‘bonus 

15 year’ means each of fiscal years 2006 

16 through 2011. 

17 ‘‘(ii) EMPLOYMENT ACHIEVEMENT

18 STATE.—The term ‘employment achieve19 ment State’ means, with respect to a bonus 

20 year, an eligible State whose performance 

21 determined pursuant to subparagraph 

22 (D)(i) for the fiscal year preceding the 

23 bonus year equals or exceeds the perform24 ance standards prescribed under subpara-
34 

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1 graph (D)(ii) for such preceding fiscal 

2 year. 

3 ‘‘(F) APPROPRIATION.—Out of any money 

4 in the Treasury of the United States not other5 wise appropriated, there are appropriated for 

6 the period of fiscal years 2006 through 2011, 

7 $450,000,000 for grants under this paragraph. 

8 ‘‘(G) GRANTS FOR INDIAN TRIBES.— 

9 ‘‘(i) RESERVATION OF FUNDS.—Of 

10 the amount appropriated under subpara11 graph (F), the Secretary shall reserve an 

12 amount equal to 2 percent of such amount 

13 for making grants to Indian tribes. 

14 ‘‘(ii) APPLICATION.—This paragraph 

15 shall apply with respect to Indian tribes in 

16 the same manner in which this paragraph 

17 applies with respect to States. 

18 ‘‘(iii) CONSULTATION.—The Secretary 

19 shall consult with Indian tribes in deter20 mining the criteria under which to make 

21 grants to Indian tribes and tribal organiza22 tions under this paragraph.’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 subsection (a) shall take effect on the date of enactment 

25 of this Act. 
35 

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1 SEC. 106. CONTINGENCY FUND. 

2 (a) CONTINGENCY FUNDING AVAILABLE TO NEEDY

3 STATES.—Section 403(b) (42 U.S.C. 603(b)) is amend4 ed— 

5 (1) by striking paragraphs (1) through (3) and 

6 inserting the following: 

7 ‘‘(1) CONTINGENCY FUND GRANTS.— 

8 ‘‘(A) PAYMENTS.—Subject to subpara9 graphs (C) and (D), and out of funds appro10 priated under subparagraph (F), each State 

11 shall receive a contingency fund grant for each 

12 eligible month in which the State is a needy 

13 State under paragraph (3). 

14 ‘‘(B) MONTHLY CONTINGENCY FUND

15 GRANT AMOUNT.—For each eligible month in 

16 which a State is a needy State, the State shall 

17 receive a contingency fund grant equal to the 

18 product of— 

19 ‘‘(i) the applicable percentage (as de20 fined under subparagraph (E)(i)) of the 

21 applicable benefit level (as defined in sub22 paragraph (E)(ii)); and 

23 ‘‘(ii) the amount by which the total 

24 number of families that received assistance 

25 under the State program funded under this 

26 part in the most recently concluded 3- 
36 

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1 month period for which data are available 

2 from the State exceeds a 5-percent in3 crease in the number of such families in 

4 the corresponding 3-month period in either 

5 of the 2 most recent preceding fiscal years 

6 and that was due, in large measure, to eco7 nomic conditions rather than State policy 

8 changes. 

9 ‘‘(C) LIMITATION.—The total amount paid 

10 to a single State under subparagraph (A) dur11 ing a fiscal year shall not exceed the amount 

12 equal to 10 percent of the State family assist13 ance grant (as defined under subparagraph (B) 

14 of subsection (a)(1)). 

15 ‘‘(D) PAYMENTS TO INDIAN TRIBES.— 

16 ‘‘(i) IN GENERAL.—Of the total 

17 amount appropriated pursuant to subpara18 graph (F), $25,000,000 of such amount 

19 shall be reserved for making payments to 

20 Indian tribes with approved tribal family 

21 assistance plans that are operating in situ22 ations of increased economic hardship. 

23 ‘‘(ii) DETERMINATION OF CRITERIA

24 FOR TRIBAL ACCESS.— 
37 

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1 ‘‘(I) IN GENERAL.—Subject to 

2 subclause (II), the Secretary, in con3 sultation with Indian tribes with ap4 proved tribal family assistance plans, 

5 shall determine the criteria for access 

6 by such tribes to the amount reserved 

7 under clause (i). 

8 ‘‘(II) INCLUSION OF CERTAIN

9 FACTORS.—Such criteria shall include 

10 factors related to increases in unem11 ployment and loss of employers. 

12 ‘‘(iii) APPLICATION OF REQUIRE13 MENTS FOR PAYMENTS TO STATES.—The 

14 Secretary, in consultation with Indian 

15 tribes with approved tribal family assist16 ance plans located throughout the United 

17 States, shall determine the extent to which 

18 requirements of States for payments from 

19 the contingency fund established under 

20 this subsection shall apply to Indian tribes 

21 receiving payments under this subpara22 graph. 

23 ‘‘(E) DEFINITIONS.—In this paragraph: 

24 ‘‘(i) APPLICABLE PERCENTAGE.—The 

25 term ‘applicable percentage’ means the 
38 

•S 667 PCS 

1 Federal medical assistance percentage for 

2 the State (as defined in section 1905(b)). 

3 ‘‘(ii) APPLICABLE BENEFIT LEVEL.— 

4 ‘‘(I) IN GENERAL.—Subject to 

5 subclause (II), the term ‘applicable 

6 benefit level’ means the amount equal 

7 to the maximum cash assistance grant 

8 for a family consisting of 3 individuals 

9 under the State program funded 

10 under this part. 

11 ‘‘(II) RULE FOR STATES WITH

12 MORE THAN 1 MAXIMUM LEVEL.—In 

13 the case of a State that has more 

14 than 1 maximum cash assistance 

15 grant level for families consisting of 3 

16 individuals, the basic assistance cost 

17 shall be the amount equal to the max18 imum cash assistance grant level ap19 plicable to the largest number of fami20 lies consisting of 3 individuals receiv21 ing assistance under the State pro22 gram funded under this part. 

23 ‘‘(F) APPROPRIATION.—Out of any money 

24 in the Treasury of the United States not other25 wise appropriated, there is appropriated for the 
39 

•S 667 PCS 

1 period of fiscal years 2006 through 2010, such 

2 sums as are necessary for making contingency 

3 fund grants under this subsection in a total 

4 amount not to exceed $2,000,000,000.’’; 

5 (2) by redesignating paragraph (4) as para6 graph (2); and 

7 (3) in paragraph (2), as so redesignated— 

8 (A) by striking ‘‘(3)(A)’’ and inserting 

9 ‘‘(1)’’; and 

10 (B) by striking ‘‘2-month period that be11 gins with any’’ and inserting ‘‘fiscal year quar12 ter that includes a’’. 

13 (b) MODIFICATION OF DEFINITION OF NEEDY

14 STATE.—Section 403(b), as amended by subsection (a), 

15 (42 U.S.C. 603(b)) is further amended— 

16 (1) by striking paragraphs (5) and (6); 

17 (2) by redesignating paragraphs (7) and (8) as 

18 paragraphs (5) and (6), respectively; and 

19 (3) by inserting after paragraph (2) (as redesig20 nated by subsection (a)(2)) the following: 

21 ‘‘(3) INITIAL DETERMINATION OF WHETHER A

22 STATE QUALIFIES AS A NEEDY STATE.— 

23 ‘‘(A) IN GENERAL.—For purposes of para24 graph (1), subject to paragraph (4), a State will 
40 

•S 667 PCS 

1 be initially determined to be a needy State for 

2 a month if, as determined by the Secretary— 

3 ‘‘(i) the monthly average of the 

4 unduplicated number of families that re5 ceived assistance under the State program 

6 funded under this part in the most recently 

7 concluded 3-month period for which data 

8 are available from the State increased by 

9 at least 5 percent over the number of such 

10 families that received such benefits in the 

11 corresponding 3-month period in either of 

12 the 2 most recent preceding fiscal years; 

13 ‘‘(ii) the increase in the number of 

14 such families for the State was due, in 

15 large measure, to economic conditions 

16 rather than State policy changes; and 

17 ‘‘(iii) the State satisfies any of the fol18 lowing criteria: 

19 ‘‘(I) The average rate of total un20 employment in the State (seasonally 

21 adjusted) for the period consisting of 

22 the most recent 3 months for which 

23 data are available has increased by 

24 the lesser of 1.5 percentage points or 

25 by 50 percent over the corresponding 
41 

•S 667 PCS 

1 3-month period in either of the 2 most 

2 recent preceding fiscal years. 

3 ‘‘(II) The average insured unem4 ployment rate for the most recent 13 

5 weeks for which data are available has 

6 increased by 1 percentage point over 

7 the corresponding 13-week period in 

8 either of the 2 most recent preceding 

9 fiscal years. 

10 ‘‘(III) As determined by the Sec11 retary of Agriculture, the monthly av12 erage number of households (as of the 

13 last day of each month) that partici14 pated in the food stamp program in 

15 the State in the then most recently 

16 concluded 3-month period for which 

17 data are available exceeds by at least 

18 15 percent the monthly average num19 ber of households (as of the last day 

20 of each month) in the State that par21 ticipated in the food stamp program 

22 in the corresponding 3-month period 

23 in either of the 2 most recent pre24 ceding fiscal years, but only if the 

25 Secretary and the Secretary of Agri-
42 

•S 667 PCS 

1 culture concur in the determination 

2 that the State’s increased caseload 

3 was due, in large measure, to eco4 nomic conditions rather than changes 

5 in Federal or State policies related to 

6 the food stamp program. 

7 ‘‘(B) DURATION.—A State that qualifies 

8 as a needy State— 

9 ‘‘(i) under subclause (I) or (II) of 

10 subparagraph (A)(iii), shall be considered 

11 a needy State until the State’s average 

12 rate of total unemployment or the State’s 

13 insured unemployment rate, respectively, 

14 falls below the level attained in the applica15 ble period that was first used to determine 

16 that the State qualified as a needy State 

17 under that subparagraph (and in the case 

18 of the insured unemployment rate, without 

19 regard to any declines in the rate that are 

20 the result of seasonal variation); and 

21 ‘‘(ii) under subclause (III) of subpara22 graph (A)(iii), shall be considered a needy 

23 State so long as the State meets the cri24 teria for being considered a needy State 

25 under that subparagraph. 
43 

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1 ‘‘(4) EXCEPTIONS.— 

2 ‘‘(A) UNEXPENDED BALANCES.— 

3 ‘‘(i) IN GENERAL.—Notwithstanding 

4 paragraph (3), a State that has unex5 pended TANF balances in an amount that 

6 exceeds 30 percent of the total amount of 

7 grants received by the State under sub8 section (a) for the most recently completed 

9 fiscal year (other than welfare-to-work 

10 grants made under paragraph (5) of that 

11 subsection prior to fiscal year 2000), shall 

12 not be a needy State under this subsection. 

13 ‘‘(ii) DEFINITION OF UNEXPENDED

14 TANF BALANCES.—In clause (i), the term 

15 ‘unexpended TANF balances’ means the 

16 lesser of— 

17 ‘‘(I) the total amount of grants 

18 made to the State (regardless of the 

19 fiscal year in which such funds were 

20 awarded) under subsection (a) (other 

21 than welfare-to-work grants made 

22 under paragraph (5) of that sub23 section prior to fiscal year 2000) but 

24 not yet expended as of the end of the 

25 fiscal year preceding the fiscal year 
44 

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1 for which the State would, in the ab2 sence of this subparagraph, be consid3 ered a needy State under this sub4 section; and 

5 ‘‘(II) the total amount of grants 

6 made to the State under subsection 

7 (a) (other than welfare-to-work grants 

8 made under paragraph (5) of that 

9 subsection prior to fiscal year 2000) 

10 but not yet expended as of the end of 

11 such preceding fiscal year, plus the 

12 difference between— 

13 ‘‘(aa) the pro rata share of 

14 the current fiscal year grant to 

15 be made under subsection (a) to 

16 the State; and 

17 ‘‘(bb) current year expendi18 tures of the total amount of 

19 grants made to the State under 

20 subsection (a) (regardless of the 

21 fiscal year in which such funds 

22 were awarded) (other than such 

23 welfare-to-work grants) through 

24 the end of the most recent cal25 endar quarter. 
45 

•S 667 PCS 

1 ‘‘(B) FAILURE TO SATISFY MAINTENANCE

2 OF EFFORT REQUIREMENT.—Notwithstanding 

3 paragraph (3), a State that fails to satisfy the 

4 requirement of section 409(a)(7) with respect to 

5 a fiscal year shall not be a needy State under 

6 this subsection for that fiscal year.’’. 

7 (c) CLARIFICATION OF REPORTING REQUIRE8 MENTS.—Paragraph (6) of section 403(b) (42 U.S.C. 

9 603(b)), as redesignated by subsection (b)(2), is amended 

10 by striking ‘‘on the status of the Fund’’ and inserting ‘‘on 

11 the States that qualified for contingency funds and the 

12 amount of funding awarded under this subsection’’. 

13 (d) ELIMINATION OF PENALTY FOR FAILURE TO

14 MAINTAIN 100 PERCENT MAINTENANCE OF EFFORT.— 

15 (1) IN GENERAL.—Section 409(a) (42 U.S.C. 

16 609(a)) is amended— 

17 (A) by striking paragraph (10); and 

18 (B) by redesignating paragraphs (11) 

19 through (14) as paragraphs (10) through (13), 

20 respectively. 

21 (2) CONFORMING AMENDMENTS.—Section 409 

22 (42 U.S.C. 609) is amended— 

23 (A) in subsection (a)(7)(B)(i)(III), by 

24 striking ‘‘(12)’’ and inserting ‘‘(11)’’; 
46 

•S 667 PCS 

1 (B) in subsection (b)(2), by striking ‘‘(10), 

2 (12), or (13)’’ and inserting ‘‘(11), or (12)’’; 

3 and 

4 (C) in subsection (c)(4), by striking ‘‘(10), 

5 (12), or (13)’’ and inserting ‘‘(11), or (12)’’. 

6 SEC. 107. USE OF FUNDS. 

7 (a) REPEAL OF TREATMENT OF INTERSTATE IMMI8 GRANTS.—Section 404 (42 U.S.C. 604) is amended by 

9 striking subsection (c) and inserting the following: 

10 ‘‘(c) [Reserved].’’. 

11 (b) SOCIAL SERVICES BLOCK GRANT.— 

12 (1) RESTORATION OF AUTHORITY TO TRANS13 FER UP TO 10 PERCENT OF TANF FUNDS.—Sec14 tion 404(d)(2) (42 U.S.C. 604(d)(2)) is amended to 

15 read as follows: 

16 ‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE

17 TO TITLE XX PROGRAMS.—A State may use not 

18 more than 10 percent of the amount of any grant 

19 made to the State under section 403(a) for a fiscal 

20 year to carry out State programs pursuant to title 

21 XX.’’. 

22 (2) INCREASE IN SOCIAL SERVICES BLOCK

23 GRANT FUNDS.—Section 2003(c)(11) (42 U.S.C. 

24 1397b(c)(11)) is amended by inserting ‘‘, except that 

25 with respect to each of fiscal years 2006 through 
47 

•S 667 PCS 

1 2010, the amount shall be $1,900,000,000’’ after 

2 ‘‘thereafter’’. 

3 (c) CLARIFICATION OF AUTHORITY OF STATES TO

4 USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS

5 TO PROVIDE TANF BENEFITS AND SERVICES.—Section 

6 404(e) (42 U.S.C. 604(e)) is amended to read as follows: 

7 ‘‘(e) AUTHORITY TO CARRYOVER OR RESERVE CER8 TAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FU9 TURE CONTINGENCIES.— 

10 ‘‘(1) CARRYOVER.—A State or Indian tribe may 

11 use a grant made to the State or Indian tribe under 

12 this part for any fiscal year to provide, without fiscal 

13 year limitation, any benefit or service that may be 

14 provided under the State or tribal program funded 

15 under this part. 

16 ‘‘(2) CONTINGENCY RESERVE.—A State or In17 dian tribe may designate any portion of a grant 

18 made to the State or Indian tribe under this part as 

19 a contingency reserve for future needs, and may use 

20 any amount so designated to provide, without fiscal 

21 year limitation, any benefit or service that may be 

22 provided under the State or tribal program funded 

23 under this part. If a State or Indian tribe so des24 ignates a portion of such a grant, the State or In-
48 

•S 667 PCS 

1 dian tribe shall include in its report under section 

2 411(a) the amount so designated.’’. 

3 (d) STATE OPTION TO ESTABLISH UNDERGRADUATE

4 POSTSECONDARY OR VOCATIONAL EDUCATIONAL PRO5 GRAM.— 

6 (1) IN GENERAL.—Section 404 (42 U.S.C. 604) 

7 is amended by adding at the end the following: 

8 ‘‘(l) AUTHORITY TO ESTABLISH UNDERGRADUATE

9 POSTSECONDARY OR VOCATIONAL EDUCATIONAL PRO10 GRAM.— 

11 ‘‘(1) IN GENERAL.—Subject to the succeeding 

12 paragraphs of this subsection, a State to which a 

13 grant is made under section 403 may use the grant 

14 or State funds that are qualified State expenditures 

15 (as defined in section 409(a)(7)(B)(i)) to establish a 

16 program under which an eligible participant (as de17 fined in paragraph (3)) may be provided support 

18 services described in paragraph (5) and, subject to 

19 paragraph (6), may have hours of participation in 

20 such program counted as being engaged in work for 

21 purposes of determining monthly participation rates 

22 under section 407(b)(1)(B)(i). 

23 ‘‘(2) STATE PLAN REQUIREMENT.—In order to 

24 establish a program under this subsection, a State 

25 shall describe (in an addendum to the State plan 
49 

•S 667 PCS 

1 submitted under section 402) the applicable eligi2 bility criteria that is designed to limit participation 

3 in the program to only those individuals— 

4 ‘‘(A) whose past earnings indicate that the 

5 individuals cannot qualify for employment that 

6 pays enough to allow them to obtain self-suffi7 ciency (as determined by the State); and 

8 ‘‘(B) for whom enrollment in the program 

9 will prepare the individuals for higher-paying 

10 occupations that are in demand in the State. 

11 ‘‘(3) DEFINITION OF ELIGIBLE PARTICIPANT.— 

12 In this subsection, the term ‘eligible participant’ 

13 means an individual— 

14 ‘‘(A) who— 

15 ‘‘(i) receives assistance under the 

16 State program funded under this part; 

17 ‘‘(ii) is a former recipient of assist18 ance under the State program funded 

19 under this part; or 

20 ‘‘(iii) is a needy parent in a family 

21 with children eligible for benefits or serv22 ices funded under a grant made under sec23 tion 403 or with State funds that are 

24 qualified State expenditures (as defined in 

25 section 409(a)(7)(B)(i)); and 
50 

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1 ‘‘(B) who— 

2 ‘‘(i) is enrolled in a postsecondary 2- 

3 or 4-year degree program or a vocational 

4 educational training program; and 

5 ‘‘(ii) during the period the individual 

6 participates in the program established 

7 under this subsection, maintains satisfac8 tory academic progress, as defined by the 

9 institution operating the postsecondary 2- 

10 or 4-year degree program or vocational 

11 educational training program in which the 

12 individual is enrolled. 

13 ‘‘(4) REQUIRED TIME PERIODS FOR COMPLE14 TION OF DEGREE OR VOCATIONAL EDUCATIONAL

15 TRAINING PROGRAM.— 

16 ‘‘(A) IN GENERAL.—Subject to subpara17 graph (B), an eligible participant participating 

18 in a program established under this subsection 

19 shall be required to complete the requirements 

20 of a postsecondary 2- or 4-year degree program 

21 or a vocational educational training program 

22 within the normal timeframe (as determined by 

23 the institution operating the 2- or 4-year degree 

24 program or a vocational educational training 

25 program) for full-time students seeking the par-
51 

•S 667 PCS 

1 ticular degree or completing the vocational edu2 cational training program. 

3 ‘‘(B) EXCEPTION.— 

4 ‘‘(i) IN GENERAL.—For good cause, 

5 the State may allow an eligible participant 

6 to complete their degree requirements or 

7 vocational educational training program 

within a period not to exceed 11 8 ⁄2 times the 

9 normal timeframe established under sub10 paragraph (A) (unless further modification 

11 is required by the Americans with Disabil12 ities Act of 1990 (42 U.S.C. 12101 et 

13 seq.), or section 504 of the Rehabilitation 

14 Act of 1973 (29 U.S.C. 794)) and may 

15 modify the requirements applicable to an 

16 individual participating in the program. 

17 For purposes of the preceding sentence, 

18 good cause includes, with respect to an eli19 gible participant, the presence of 1 or more 

20 significant barriers, as determined by the 

21 State, to normal participation by the par22 ticipant, such as the need to care for a 

23 family member with special needs. 

24 ‘‘(ii) INCLUSION OF BARRIERS IN

25 STATE PLAN ADDENDUM.—A State shall 
52 

•S 667 PCS 

1 identify and define in the addendum to the 

2 State plan under paragraph (2) the bar3 riers that make an eligible participant eli4 gible for the good cause exception per5 mitted under clause (i). 

6 ‘‘(5) SUPPORT SERVICES DESCRIBED.—For 

7 purposes of paragraph (1), the support services de8 scribed in this paragraph include any or all of the 

9 following during the period the eligible participant is 

10 participating in the program established under this 

11 subsection: 

12 ‘‘(A) Child care. 

13 ‘‘(B) Transportation services. 

14 ‘‘(C) Payment for books and supplies. 

15 ‘‘(D) Other services provided under policies 

16 determined by the State to ensure coordination 

17 and lack of duplication with other programs 

18 available to provide support services. 

19 ‘‘(6) RULES FOR INCLUSION IN MONTHLY

20 WORK PARTICIPATION RATES.— 

21 ‘‘(A) FAMILIES COUNTED AS PARTICI22 PATING IF THEY MEET THE REQUIREMENTS OF

23 SUBPARAGRAPH (B) OR (C).—Subject to sub24 paragraph (D), for each eligible participant who 

25 receives assistance under the State program 
53 

•S 667 PCS 

1 funded under this part, a State may elect, for 

2 purposes of determining monthly participation 

3 rates under section 407(b)(1)(B)(i), to include 

4 such participant in the determination of such 

5 rates in accordance with subparagraph (B) or 

6 (C). 

7 ‘‘(B) FULL OR PARTIAL CREDIT FOR

8 HOURS OF PARTICIPATION IN EDUCATIONAL OR

9 RELATED ACTIVITIES.— 

10 ‘‘(i) IN GENERAL.—Subject to clause 

11 (iv), an eligible participant who partici12 pates in educational or related activities 

13 (as determined by the State in accordance 

14 with clause (ii)) under a program estab15 lished under this subsection shall be given 

16 credit for the number of hours of such par17 ticipation to the extent that an adult re18 cipient or minor child head of household 

19 would be given credit under section 407(c) 

20 for being engaged in the same number of 

21 hours of work activities described in para22 graph (1), (2), (3), (4), (5), (6), (7), (8), 

23 or (12) of section 407(d). 
54 

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1 ‘‘(ii) RELATED ACTIVITIES.—For pur2 poses of clause (i), related activities shall 

3 include— 

4 ‘‘(I) work activities described in 

5 paragraph (1), (2), (3), (4), (5), (6), 

6 (7), (8), or (12) of section 407(d); 

7 ‘‘(II) work study, practicums, in8 ternships, clinical placements, labora9 tory or field work, or such other ac10 tivities that will enhance the eligible 

11 participant’s employability in the par12 ticipant’s field of study, as determined 

13 by the State; or 

14 ‘‘(III) subject to clause (iii), 

15 study time. 

16 ‘‘(iii) LIMITATION ON INCLUSION OF

17 STUDY TIME.—For purposes of deter18 mining hours per week of participation by 

19 an eligible participant under a program es20 tablished under this subsection, a State 

21 may not count study time of less than 1 

22 hour for every hour of class time or more 

23 than 2 hours for every hour of class time. 

24 ‘‘(iv) TOTAL NUMBER OF HOURS LIM25 ITED TO BEING COUNTED AS 1 FAMILY.— 
55 

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1 In no event may hours per week of partici2 pation by an eligible participant under a 

3 program established under this subsection 

4 result in the participant’s family being 

5 counted as more than 1 family for pur6 poses of determining monthly participation 

7 rates under section 407(b)(1)(B)(i). 

8 ‘‘(C) FULL CREDIT FOR BEING ENGAGED

9 IN DIRECT WORK ACTIVITIES FOR CERTAIN

10 HOURS PER WEEK.— 

11 ‘‘(i) IN GENERAL.—A family that in12 cludes an eligible participant who, in addi13 tion to complying with the full-time edu14 cational participation requirements of the 

15 postsecondary 2- or 4-year degree program 

16 or vocational educational training program 

17 that the participant is enrolled in, partici18 pates in an activity described in subclause 

19 (I) or (II) of subparagraph (B)(ii) for not 

20 less than the number of hours required per 

21 week under clause (ii) shall be counted as 

22 1 family. 

23 ‘‘(ii) REQUIRED HOURS PER WEEK.— 

24 For purposes of clause (i), subject to 
56 

•S 667 PCS 

1 clause (iii), the number of hours per week 

2 are— 

3 ‘‘(I) 6 hours per week during the 

4 first 12-month period that an eligible 

5 participant participates in a program 

6 established under this subsection; 

7 ‘‘(II) 8 hours per week during 

8 the second 12-month period of such 

9 participation; 

10 ‘‘(III) 10 hours per week during 

11 the third 12-month period of such 

12 participation; and 

13 ‘‘(IV) 12 hours per week during 

14 the fourth or any other succeeding 12- 

15 month period of such participation. 

16 ‘‘(iii) MODIFICATION OF REQUIRE17 MENTS FOR GOOD CAUSE.—A State may 

18 modify the number of hours per week re19 quired under clause (ii) for good cause. 

20 For purposes of the preceding sentence, 

21 good cause includes, with respect to an eli22 gible participant, the presence of 1 or more 

23 significant barriers, as determined by the 

24 State, to normal participation by the par-
57 

•S 667 PCS 

1 ticipant, such as the need to care for a 

2 family member with special needs. 

3 ‘‘(D) CAP ON NUMBER OF PARTICIPANTS

4 THAT MAY BE INCLUDED IN MONTHLY WORK

5 PARTICIPATION RATES.—The monthly number 

6 of families that include an eligible participant 

7 and that are treated as being engaged in work 

8 may not exceed an amount equal to 10 percent 

9 of the families to which assistance is provided 

10 under the State program funded under this 

11 part for such month. 

12 ‘‘(7) APPLICABILITY.—Nothing in this sub13 section shall be construed as restricting the author14 ity or discretion of a State in the use of grants pro15 vided under section 403 or the expenditure of quali16 fied State expenditures (as defined in section 

17 409(a)(7)(B)(i)) for programs or activities other 

18 than the program established under this sub19 section.’’. 

20 (2) CONFORMING AMENDMENT.—Section 

21 407(d)(8) (42 U.S.C. 607(d)(8)) is amended by in22 serting ‘‘other than an individual participating in a 

23 program established under section 404(l)’’ after ‘‘in24 dividual’’. 
58 

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

2 PROGRAMS. 

3 (a) REPEAL.—Section 406 (42 U.S.C. 606) is re4 pealed. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) Section 409 (42 U.S.C. 609), as amended 

7 by section 106(d)(2), is amended— 

8 (A) in subsection (a), by striking para9 graph (6); 

10 (B) in subsection (b)(2), by striking 

11 ‘‘(6),’’; and 

12 (C) in subsection (c)(4), by striking ‘‘(6),’’. 

13 (2) Section 412 (42 U.S.C. 612) is amended by 

14 striking subsection (f) and redesignating subsections 

15 (g) through (i) as subsections (f) through (h), re16 spectively. 

17 (3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) 

18 is amended by striking ‘‘406,’’. 

19 SEC. 109. WORK PARTICIPATION REQUIREMENTS. 

20 (a) ELIMINATION OF SEPARATE WORK PARTICIPA21 TION RATE FOR 2-PARENT FAMILIES BEGINNING WITH

22 FISCAL YEAR 2003.— 

23 (1) IN GENERAL.—Section 407 (42 U.S.C. 607) 

24 is amended— 

25 (A) in subsection (a)— 
59 

•S 667 PCS 

1 (i) in the heading, by striking ‘‘PAR2 TICIPATION RATE REQUIREMENTS’’ and all 

3 that follows through ‘‘A State’’ and insert4 ing ‘‘PARTICIPATION RATE REQUIRE5 MENTS.—A State’’; and 

6 (ii) by striking paragraph (2); 

7 (B) in subsection (b)— 

8 (i) by striking paragraph (2); 

9 (ii) in paragraph (4), by striking 

10 ‘‘paragraphs (1)(B) and (2)(B)’’ and in11 serting ‘‘determining monthly participation 

12 rates under paragraph (1)(B)’’; and 

13 (iii) in paragraph (5), by striking 

14 ‘‘rates’’ and inserting ‘‘rate’’; and 

15 (C) in subsection (c)— 

16 (i) in paragraph (1)— 

17 (I) by striking ‘‘GENERAL

18 RULES.—’’ and all that follows 

19 through ‘‘For purposes’’ in subpara20 graph (A) and inserting ‘‘GENERAL

21 RULE.—For purposes’’; and 

22 (II) by striking subparagraph 

23 (B); and 

24 (ii) in paragraph (2)(D)— 
60 

•S 667 PCS 

1 (I) by striking ‘‘paragraphs 

2 (1)(B)(i) and (2)(B) of subsection 

3 (b)’’ and inserting ‘‘subsection 

4 (b)(1)(B)(i)’’; and 

5 (II) by striking ‘‘and in 2-parent 

6 families, respectively,’’. 

7 (2) EFFECTIVE DATE.—The amendments made 

8 by paragraph (1) shall take effect as if enacted on 

9 October 1, 2002, and any penalty imposed under 

10 section 409(a)(3) of the Social Security Act (42 

11 U.S.C. 609(a)(3)) against a State for failure to com12 ply with the minimum participation rate applicable 

13 to 2-parent families under 407(a)(2) of such Act (42 

14 U.S.C. 607(a)(2)), as in effect on the day before 

15 such date, with respect to fiscal year 2002, 2003, or 

16 2004 is rescinded. 

17 (b) MINIMUM PARTICIPATION RATES.—Section 

18 407(a) (42 U.S.C. 607(a)), as amended by subsection 

19 (a)(1)(A), is amended to read as follows: 

20 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.— 

21 ‘‘(1) IN GENERAL.—A State to which a grant 

22 is made under section 403 for a fiscal year shall 

23 achieve a minimum participation rate with respect to 

24 all families receiving assistance under the State pro-
61 

•S 667 PCS 

1 gram funded under this part that is equal to not less 

2 than— 

3 ‘‘(A) 50 percent for fiscal year 2006; 

4 ‘‘(B) 55 percent for fiscal year 2007; 

5 ‘‘(C) 60 percent for fiscal year 2008; 

6 ‘‘(D) 65 percent for fiscal year 2009; and 

7 ‘‘(E) 70 percent for fiscal year 2010 and 

8 each succeeding fiscal year.’’. 

9 (c) LIMITATION ON REDUCTION OF PARTICIPATION

10 RATE THROUGH APPLICATION OF CREDITS.—Section 

11 407(a) (42 U.S.C. 607(a)), as amended by subsection (b), 

12 is amended by adding at the end the following: 

13 ‘‘(2) LIMITATION ON REDUCTION OF PARTICI14 PATION RATE THROUGH APPLICATION OF CRED15 ITS.—Notwithstanding any other provision of this 

16 part, the net effect of any percentage reduction in 

17 the minimum participation rate otherwise required 

18 under this section with respect to families receiving 

19 assistance under the State program funded under 

20 this part as a result of the application of any em21 ployment credit, caseload reduction credit, or other 

22 credit against such rate for a fiscal year, shall not 

23 exceed— 

24 ‘‘(A) 40 percentage points, in the case of 

25 fiscal year 2006; 
62 

•S 667 PCS 

1 ‘‘(B) 35 percentage points, in the case of 

2 fiscal year 2007; 

3 ‘‘(C) 30 percentage points, in the case of 

4 fiscal year 2008; 

5 ‘‘(D) 25 percentage points, in the case of 

6 fiscal year 2009; or 

7 ‘‘(E) 20 percentage points, in the case of 

8 fiscal year 2010 or any fiscal year thereafter.’’. 

9 (d) REPLACEMENT OF CASELOAD REDUCTION CRED10 IT WITH EMPLOYMENT CREDIT.— 

11 (1) EMPLOYMENT CREDIT TO REWARD STATES

12 IN WHICH FAMILIES LEAVE WELFARE FOR WORK; 

13 ADDITIONAL CREDIT FOR FAMILIES WITH HIGHER

14 EARNINGS.— 

15 (A) IN GENERAL.—Section 407(b) (42 

16 U.S.C. 607(b)), as amended by subsection 

17 (a)(1)(B)(i), is amended by inserting after 

18 paragraph (1) the following: 

19 ‘‘(2) EMPLOYMENT CREDIT.— 

20 ‘‘(A) IN GENERAL.—Subject to subsection 

21 (a)(2), beginning with fiscal year 2008, the Sec22 retary shall, by regulation, reduce the minimum 

23 participation rate otherwise applicable to a 

24 State under this subsection for a fiscal year by 

25 the number of percentage points in the employ-
63 

•S 667 PCS 

1 ment credit for the State for the fiscal year, as 

2 determined by the Secretary— 

3 ‘‘(i) using information in the National 

4 Directory of New Hires; 

5 ‘‘(ii) with respect to a recipient of as6 sistance or former recipient of assistance 

7 under the State program funded under this 

8 part who is placed with an employer whose 

9 hiring information is not reported to the 

10 National Directory of New Hires, using 

11 quarterly wage information submitted by 

12 the State to the Secretary not later than 

13 such date as the Secretary shall prescribe 

14 in regulations; or 

15 ‘‘(iii) with respect to families de16 scribed in subclause (II) or (III) of sub17 paragraph (B)(ii), using such other data 

18 (including data relating to qualified State 

19 expenditures (as defined in section 

20 409(a)(7)(B)(i)) or any other State pro21 grams that are used to provide non22 recurring short-term benefits or substantial 

23 child care or transportation assistance to 

24 such families) as the Secretary may re25 quire in order to determine the employ-
64 

•S 667 PCS 

1 ment credit for a State under this para2 graph. 

3 ‘‘(B) CALCULATION OF CREDIT.— 

4 ‘‘(i) IN GENERAL.—The employment 

5 credit for a State for a fiscal year is an 

6 amount equal to the sum of the amounts 

7 determined under clause (ii), divided by 

8 the amount determined under clause (iii). 

9 ‘‘(ii) NUMERATOR.—For purposes of 

10 clause (i), the amounts determined under 

11 this clause are the following: 

12 ‘‘(I) Twice the quarterly average 

13 unduplicated number of families that 

14 include an adult or minor child head 

15 of household recipient of assistance 

16 under the State program funded 

17 under this part, that ceased to receive 

18 such assistance for at least 2 consecu19 tive months following case closure for 

20 the family during the applicable pe21 riod (as defined in clause (v)), that 

22 did not receive assistance under a sep23 arate State-funded program during 

24 such 2-month period, and that were 

25 employed during the calendar quarter 
65 

•S 667 PCS 

1 immediately succeeding the quarter in 

2 which the assistance under the State 

3 program funded under this part 

4 ceased. 

5 ‘‘(II) At the option of the State, 

6 twice the quarterly average number of 

7 families that received a nonrecurring 

8 short-term benefit under the State 

9 program funded under this part dur10 ing the applicable period (as defined 

11 in clause (v)), that were employed 

12 during the calendar quarter imme13 diately succeeding the quarter in 

14 which the nonrecurring short-term 

15 benefit was so received, and that 

16 earned at least $1,000 during such 

17 succeeding calendar quarter. 

18 ‘‘(III) At the option of the State, 

19 twice the quarterly average number of 

20 families that include an adult who is 

21 receiving substantial child care (in22 cluding child care funded by transfers 

23 under section 404(d) to the Child 

24 Care and Development Block Grant 

25 Act of 1990) or transportation assist-
66 

•S 667 PCS 

1 ance (as defined by the Secretary, in 

2 consultation with directors of State 

3 programs funded under this part, 

4 which definition shall specify for each 

5 type of assistance a threshold which is 

6 a dollar value or a length of time over 

7 which the assistance is received and 

8 which takes into account large one9 time transition payments) during the 

10 applicable period (as defined in clause 

11 (v)) and that were employed during 

12 the calendar quarter in which the sub13 stantial child care or transportation 

14 assistance was so received and earned 

15 at least $1,000 during such calendar 

16 quarter. 

17 ‘‘(iii) DENOMINATOR.—For purposes 

18 of clause (i), the amount determined under 

19 this clause is the amount equal to the sum 

20 of the following: 

21 ‘‘(I) The average monthly num22 ber of families that include an adult 

23 or minor child head of household who 

24 received assistance under the State 

25 program funded under this part dur-
67 

•S 667 PCS 

1 ing the applicable period (as defined 

2 in clause (v)). 

3 ‘‘(II) If the State elected the op4 tion under clause (ii)(II), twice the 

5 quarterly average number of families 

6 that received a nonrecurring short7 term benefit under the State program 

8 funded under this part during the ap9 plicable period (as defined in clause 

10 (v)). 

11 ‘‘(III) If the State elected the op12 tion under clause (ii)(III), twice the 

13 quarterly average number of families 

14 that includes an adult who is receiving 

15 substantial child care (including child 

16 care funded by transfers under section 

17 404(d) to the Child Care and Devel18 opment Block Grant Act of 1990) or 

19 transportation assistance during the 

20 applicable period (as defined in clause 

21 (v)). 

22 ‘‘(iv) SPECIAL RULE FOR FORMER RE23 CIPIENTS WITH HIGHER EARNINGS.—In 

24 calculating the employment credit for a 

25 State for a fiscal year, in the case of a 
68 

•S 667 PCS 

1 family that includes an adult or a minor 

2 child head of household that is to be in3 cluded in the amount determined under 

4 clause (ii)(I) and that, with respect to the 

5 quarter in which the family’s earnings was 

6 examined during the applicable period, 

7 earned at least 33 percent of the average 

8 quarterly earnings in the State (deter9 mined on the basis of State unemployment 

10 data), the family shall be considered to be 

11 1.5 families. 

12 ‘‘(v) DEFINITION OF APPLICABLE PE13 RIOD.—For purposes of this paragraph, 

14 the term ‘applicable period’ means, with 

15 respect to a fiscal year, the most recent 4 

16 quarters for which data are available to the 

17 Secretary providing information on the 

18 work status of— 

19 ‘‘(I) individuals in the quarter 

20 after the individuals ceased receiving 

21 assistance under the State program 

22 funded under this part; 

23 ‘‘(II) at State option, individuals 

24 in the quarter after the individuals re-
69 

•S 667 PCS 

1 ceived a short-term, nonrecurring ben2 efit; and 

3 ‘‘(III) at State option, individuals 

4 in the quarter in which the individuals 

5 received substantial child care or 

6 transportation assistance. 

7 ‘‘(C) NOTIFICATION TO STATE.—Not later 

8 than August 31 of each fiscal year, the Sec9 retary shall— 

10 ‘‘(i) determine, on the basis of the ap11 plicable period, the amount of the employ12 ment credit that will be used in deter13 mining the minimum participation rate for 

14 a State under subsection (a) for the imme15 diately succeeding fiscal year; and 

16 ‘‘(ii) notify each State conducting a 

17 State program funded under this part of 

18 the amount of the employment credit for 

19 such program for the succeeding fiscal 

20 year.’’. 

21 (B) AUTHORITY OF SECRETARY TO USE

22 INFORMATION IN NATIONAL DIRECTORY OF

23 NEW HIRES.—Section 453(i) (42 U.S.C. 653(i)) 

24 is amended by adding at the end the following: 
70 

•S 667 PCS 

1 ‘‘(5) CALCULATION OF EMPLOYMENT CREDIT

2 FOR PURPOSES OF DETERMINING STATE WORK PAR3 TICIPATION RATES UNDER TANF.—The Secretary 

4 may use the information in the National Directory 

5 of New Hires for purposes of calculating State em6 ployment credits pursuant to section 407(b)(2).’’. 

7 (2) ELIMINATION OF CASELOAD REDUCTION

8 CREDIT.—Effective October 1, 2007, section 407(b) 

9 (42 U.S.C. 607(b)) is amended by striking para10 graph (3) and redesignating paragraphs (4) and (5) 

11 as paragraphs (3) and (4), respectively. 

12 (3) STATE OPTION TO PHASE-IN REPLACEMENT

13 OF CASELOAD REDUCTION CREDIT WITH EMPLOY14 MENT CREDIT.—A State may elect to not have the 

15 full employment credit under section 407(b)(2) of 

16 the Social Security Act (as amended by paragraph 

17 (1)(A)) apply to the State program funded under 

18 part A of title IV of the Social Security Act until 

19 October 1, 2008, and if the State makes the elec20 tion, then, in determining the participation rate of 

21 the State for purposes of section 407 of the Social 

22 Security Act for fiscal year 2008, the State shall be 

credited with 1 23 ⁄2 of the reduction in the rate that 

24 would otherwise result from applying section 

25 407(b)(2) of the Social Security Act (as added by 
71 

•S 667 PCS 

1 paragraph (1)(A)) to the State for fiscal year 2008 

and 1 2 ⁄2 of the reduction in the rate that would other3 wise result from applying section 407(b)(3) of the 

4 Social Security Act (as in effect with respect to fis5 cal year 2005) to the State for fiscal year 2008. 

6 (4) STUDY AND REPORT.— 

7 (A) IN GENERAL.—The Secretary of 

8 Health and Human Services (in this paragraph 

9 referred to as the ‘‘Secretary’’) shall conduct a 

10 study (in this paragraph referred to as the 

11 ‘‘Senator Blanche L. Lincoln Employment 

12 Credit Study’’) to examine the implications of 

13 the design of the employment credit established 

14 under section 407(b)(2) of the Social Security 

15 Act (as amended by paragraph (1)(A)), and po16 tential improvements to such credit, for the 

17 purposes of encouraging States to— 

18 (i) provide child care and transpor19 tation to working families so that those 

20 families do not need to receive welfare; 

21 (ii) operate diversion programs that 

22 are intended to help families attain em23 ployment; and 
72 

•S 667 PCS 

1 (iii) target the placement and ad2 vancement of working families in jobs with 

3 higher earnings. 

4 (B) REQUIREMENTS.—The Senator 

5 Blanche L. Lincoln Employment Credit Study 

6 required under this paragraph shall include an 

7 analysis of the implications of— 

8 (i) crediting States (either through an 

9 increase in the work participation rate for 

10 the State or in the employment credit) 

11 with families who are employed and not re12 ceiving assistance under the temporary as13 sistance for needy families program (in 

14 this paragraph referred to as ‘‘TANF’’) 

15 but are receiving work supports funded 

16 under TANF or with qualified State ex17 penditures (as defined in section 

18 409(a)(7)(B)(i) of such Act), such as child 

19 care or transportation; 

20 (ii) crediting States (either through 

21 an increase in the work participation rate 

22 for the State or in the employment credit) 

23 with families who have been diverted from 

24 receiving assistance under TANF and have 

25 an employed adult; 
73 

•S 667 PCS 

1 (iii) modifying the earnings thresholds 

2 for determining whether a family has an 

3 employed member and whether the family 

4 qualifies for the good jobs bonus provided 

5 under section 407(b)(2)(B)(iv) of such Act; 

6 (iv) modifying the data collection re7 quirements and administrative procedures 

8 used to implement the employment credit; 

9 (v) modifying other specifications for 

10 calculating the credit, such as the mathe11 matical form of the credit; 

12 (vi) using the data collected and ana13 lyzed for administering the employment 

14 credit for providing additional information 

15 to Congress, States, and other interested 

16 parties for evaluating the performance of 

17 State TANF programs; and 

18 (vii) modifying the cap on the employ19 ment credit, in terms of both maintaining 

20 a meaningful work participation require21 ment for families receiving assistance 

22 under TANF and providing an incentive 

23 for States to place recipients in employ24 ment and in higher-paying jobs. 
74 

•S 667 PCS 

1 (C) CONSULTATION; ACCESS TO NATIONAL

2 DIRECTORY OF NEW HIRES.—In conducting the 

3 Senator Blanche L. Lincoln Employment Credit 

4 Study, the Secretary— 

5 (i) shall consult with the States; and 

6 (ii) may use the information in the 

7 National Directory of New Hires estab8 lished under section 453(i) of the Social 

9 Security Act (42 U.S.C. 653(i)). 

10 (D) REPORT.—Not later than September 

11 30, 2009, the Secretary of Health and Human 

12 Services shall submit a report to the Committee 

13 on Finance of the Senate and the Committee on 

14 Ways and Means of the House of Representa15 tives on the Senator Blanche L. Lincoln Em16 ployment Credit Study. 

17 (e) STATE OPTIONS FOR PARTICIPATION REQUIRE18 MENT EXEMPTIONS.—Section 407(b)(5) (42 U.S.C. 

19 607(b)(5)), as amended by subsection (a)(1)(B)(iii), is 

20 amended to read as follows: 

21 ‘‘(5) STATE OPTIONS FOR PARTICIPATION RE22 QUIREMENT EXEMPTIONS.—At the option of a State, 

23 a State may, on a case-by-case basis— 

24 ‘‘(A) not include a family in the determina25 tion of the monthly participation rate for the 
75 

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1 State in the first month for which the family 

2 receives assistance from the State program 

3 funded under this part on the basis of the most 

4 recent application for such assistance; or 

5 ‘‘(B) not require a family in which the 

6 youngest child has not attained 12 months of 

7 age to engage in work, and may disregard that 

8 family in determining the minimum participa9 tion rate under subsection (a) for the State for 

10 not more than 12 months.’’. 

11 (f) DETERMINATION OF COUNTABLE HOURS EN12 GAGED IN WORK.—Section 407(c) (42 U.S.C. 607(c)) is 

13 amended to read as follows: 

14 ‘‘(c) DETERMINATION OF COUNTABLE HOURS EN15 GAGED IN WORK.— 

16 ‘‘(1) SINGLE PARENT OR RELATIVE WHOSE

17 YOUNGEST CHILD HAS ATTAINED AGE 6.— 

18 ‘‘(A) MINIMUM AVERAGE NUMBER OF

19 HOURS PER WEEK.—Subject to the succeeding 

20 paragraphs of this subsection, a family in which 

21 an adult recipient or minor child head of house22 hold in the family is participating in work ac23 tivities described in subsection (d) shall be 

24 treated as engaged in work for purposes of de-
76 

•S 667 PCS 

1 termining monthly participation rates under 

2 subsection (b)(1)(B)(i) as follows: 

3 ‘‘(i) In the case of a family in which 

4 the total number of hours in which any 

5 adult recipient or minor child head of 

6 household in the family is participating in 

7 such work activities for an average of at 

8 least 20, but less than 24, hours per week 

9 in a month, as 0.675 of a family. 

10 ‘‘(ii) In the case of a family in which 

11 the total number of hours in which any 

12 adult recipient or minor child head of 

13 household in the family is participating in 

14 such work activities for an average of at 

15 least 24, but less than 30, hours per week 

16 in a month, as 0.75 of a family. 

17 ‘‘(iii) In the case of a family in which 

18 the total number of hours in which any 

19 adult recipient or minor child head of 

20 household in the family is participating in 

21 such work activities for an average of at 

22 least 30, but less than 34, hours per week 

23 in a month, as 0.875 of a family. 

24 ‘‘(iv) In the case of a family in which 

25 the total number of hours in which any 
77 

•S 667 PCS 

1 adult recipient or minor child head of 

2 household in the family is participating in 

3 such work activities for an average of at 

4 least 34, but less than 35, hours per week 

5 in a month, as 1 family. 

6 ‘‘(v) In the case of a family in which 

7 the total number of hours in which any 

8 adult recipient or minor child head of 

9 household in the family is participating in 

10 such work activities for an average of at 

11 least 35, but less than 38, hours per week 

12 in a month, as 1.05 families. 

13 ‘‘(vi) In the case of a family in which 

14 the total number of hours in which any 

15 adult recipient or minor child head of 

16 household in the family is participating in 

17 such work activities for an average of at 

18 least 38 hours per week in a month, as 

19 1.08 families. 

20 ‘‘(B) DIRECT WORK ACTIVITIES REQUIRED

21 FOR AN AVERAGE OF 24 HOURS PER WEEK.— 

22 Except as provided in subparagraph (C)(i), a 

23 State may not count any hours of participation 

24 in work activities specified in paragraph (9), 

25 (10), or (11) of subsection (d) of any adult re-
78 

•S 667 PCS 

1 cipient or minor child head of household in a 

2 family before the total number of hours of par3 ticipation by any adult recipient or minor child 

4 head of household in the family in work activi5 ties described in paragraph (1), (2), (3), (4), 

6 (5), (6), (7), (8), or (12) of subsection (d) for 

7 the family for the month averages at least 24 

8 hours per week. 

9 ‘‘(C) STATE FLEXIBILITY TO COUNT PAR10 TICIPATION IN CERTAIN ACTIVITIES.— 

11 ‘‘(i) QUALIFIED ACTIVITIES FOR 3- 

12 MONTHS IN ANY 24-MONTH PERIOD.— 

13 ‘‘(I) 24-HOURS PER WEEK RE14 QUIRED.—Subject to subclauses (III) 

15 and (IV), for purposes of determining 

16 hours under subparagraph (A), a 

17 State may count the total number of 

18 hours any adult recipient or minor 

19 child head of household in a family 

20 engages in qualified activities de21 scribed in subclause (II) as a work ac22 tivity described in subsection (d), 

23 without regard to whether the recipi24 ent has satisfied the requirement of 

25 subparagraph (B), but only if— 
79 

•S 667 PCS 

1 ‘‘(aa) the total number of 

2 hours of participation in such 

3 qualified activities and in any 

4 work activities described in para5 graph (1), (2), (3), (4), (5), (6), 

6 (7), (8), or (12) of subsection (d) 

7 for the family for the month av8 erage at least 24 hours per week 

9 (except that if such hours aver10 age at least 20, but less than 24, 

11 hours per week, the State may 

12 count that family in accordance 

13 with subparagraph (A)(i)); and 

14 ‘‘(bb) engaging in such 

15 qualified activities is a require16 ment of the family self-suffi17 ciency plan. 

18 ‘‘(II) QUALIFIED ACTIVITIES DE19 SCRIBED.—For purposes of subclause 

20 (I), qualified activities described in 

21 this subclause are any of the fol22 lowing: 

23 ‘‘(aa) Postsecondary edu24 cation. 
80 

•S 667 PCS 

1 ‘‘(bb) Adult literacy pro2 grams or activities, including 

3 participation in a program de4 signed to increase proficiency in 

5 the English language. 

6 ‘‘(cc) Substance abuse coun7 seling or treatment (including 

8 drug or alcohol abuse counseling 

9 or treatment). 

10 ‘‘(dd) Programs or activities 

11 designed to remove barriers to 

12 work, as defined by the State. 

13 ‘‘(ee) Work activities author14 ized under any waiver for any 

15 State that was continued under 

16 section 415 before the date of en17 actment of the Personal Respon18 sibility and Individual Develop19 ment for Everyone Act (without 

20 regard to whether the waiver ex21 pired prior to such date of enact22 ment). 

23 ‘‘(ff) Financial literacy 

24 training that is not otherwise 

25 countable under items (aa) 
81 

•S 667 PCS 

1 through (ee), except that the 

2 State may not count more than 

3 an average of 5 hours per week 

4 of such training. 

5 ‘‘(gg) Programs or activities 

6 design to develop parenting skills. 

7 ‘‘(III) LIMITATION.—Except as 

8 provided in clause (ii), in any period 

9 of 24 consecutive months, subclause 

10 (I) shall not apply to a family for 

11 more than 3 months (no more than 1 

12 month of which may be attributable to 

13 activities described in subclause 

14 (II)(ff)). 

15 ‘‘(IV) CERTAIN ACTIVITIES.— 

16 The Secretary may allow a State to 

17 count the total hours of participation 

18 in qualified activities described in sub19 clause (II) for an adult recipient or 

20 minor child head of household without 

21 regard to the minimum 24 hour aver22 age per week of participation require23 ment under subclause (I) if the State 

24 has demonstrated conclusively that 

25 such activities are part of a substan-
82 

•S 667 PCS 

1 tial and supervised program whose ef2 fectiveness in moving families to self3 sufficiency is superior to any alter4 native activities and the effectiveness 

5 of the program in moving families to 

6 self-sufficiency would be substantially 

7 impaired if participating individuals 

8 participated in additional, concurrent 

9 qualified activities that enabled the in10 dividuals to achieve an average of at 

11 least 24 hours per week of participa12 tion. 

13 ‘‘(ii) ADDITIONAL 3-MONTH PERIOD

14 PERMITTED FOR CERTAIN ACTIVITIES.— 

15 ‘‘(I) SELF-SUFFICIENCY PLAN

16 REQUIREMENT COMBINED WITH MIN17 IMUM NUMBER OF HOURS.—A State 

18 may extend the 3-month period under 

19 clause (i) for an additional 3 months 

20 in the same period of 24 consecutive 

21 months in the case of an adult recipi22 ent or minor child head of household 

23 who is receiving qualified rehabilita24 tive services described in subclause 

25 (II) if— 
83 

•S 667 PCS 

1 ‘‘(aa) the total number of 

2 hours that the adult recipient or 

3 minor child head of household 

4 engages in such qualified reha5 bilitative services and, subject to 

6 subclause (III), a work activity 

7 described in paragraph (1), (2), 

8 (3), (4), (5), (6), (7), (8), or (12) 

9 of subsection (d) for the month 

10 average at least 24 hours per 

11 week; and 

12 ‘‘(bb) engaging in such 

13 qualified rehabilitative services is 

14 a requirement of the family self15 sufficiency plan. 

16 ‘‘(II) QUALIFIED REHABILITA17 TIVE SERVICES DESCRIBED.—For 

18 purposes of subclause (I), qualified re19 habilitative services described in this 

20 subclause are any of the following: 

21 ‘‘(aa) Adult literacy pro22 grams or activities, including 

23 participation in a program de24 signed to increase proficiency in 

25 the English language. 
84 

•S 667 PCS 

1 ‘‘(bb) In the case of an adult 

2 recipient or minor child head of 

3 household who has been certified 

4 by a qualified medical, mental 

5 health, or social services profes6 sional (as defined by the State) 

7 as having a physical or mental 

8 disability, substance abuse prob9 lem (including a drug or alcohol 

10 abuse problem), or other problem 

11 that requires a rehabilitative 

12 service, substance abuse treat13 ment (including drug or alcohol 

14 abuse treatment), or mental 

15 health treatment, the service or 

16 treatment determined necessary 

17 by a professional. 

18 ‘‘(iii) NONAPPLICATION OF LIMITA19 TIONS ON JOB SEARCH AND VOCATIONAL

20 EDUCATIONAL TRAINING.—An adult recipi21 ent or minor child head of household who 

22 is participating in qualified activities de23 scribed in subclause (II) of clause (i) dur24 ing a 3-month period under that clause, or 

25 receiving qualified rehabilitative services 
85 

•S 667 PCS 

1 described in subclause (II) of clause (ii) 

2 during an additional period under that 

3 clause, may engage in a work activity de4 scribed in paragraph (6) or (8) of sub5 section (d) for purposes of satisfying the 

6 minimum 24 hour average per week of 

7 participation requirement under clause 

8 (i)(I)(aa) or clause (ii)(I)(aa), respectively, 

9 without regard to any limit that otherwise 

10 applies to the activity (including the 30 

11 percent limitation on participation in voca12 tional educational training under para13 graph (6)(C)). 

14 ‘‘(iv) HOURS IN EXCESS OF AN AVER15 AGE OF 24 WORK ACTIVITY HOURS PER

16 WEEK.—If the total number of hours that 

17 any adult recipient or minor child head of 

18 household in a family has participated in a 

19 work activity described in paragraph (1), 

20 (2), (3), (4), (5), (6), (7), (8), or (12) of 

21 subsection (d) averages at least 24 hours 

22 per week in a month, a State, for purposes 

23 of determining hours under subparagraph 

24 (A), may count any additional hours an 
86 

•S 667 PCS 

1 adult recipient or minor child head of 

2 household in the family engages in— 

3 ‘‘(I) any work activity described 

4 in subsection (d), without regard to 

5 any limit that otherwise applies to the 

6 activity (including the 6-week limita7 tion on job search and job readiness 

8 assistance under paragraph (6)(B) 

9 and the 30 percent limitation on par10 ticipation in vocational educational 

11 training under paragraph (6)(C)); and 

12 ‘‘(II) any qualified activity de13 scribed in clause (i)(II), as a work ac14 tivity described in subsection (d). 

15 ‘‘(2) SINGLE PARENT OR RELATIVE WITH A

16 CHILD UNDER AGE 6.— 

17 ‘‘(A) IN GENERAL.—A family in which an 

18 adult recipient or minor child head of household 

19 in the family is the only parent or caretaker rel20 ative in the family of a child who has not at21 tained 6 years of age and who is participating 

22 in work activities described in subsection (d) 

23 shall be treated as engaged in work for pur24 poses of determining monthly participation 

25 rates under subsection (b)(1)(B)(i) as follows: 
87 

•S 667 PCS 

1 ‘‘(i) In the case of such a family in 

2 which the total number of hours in which 

3 the adult recipient or minor child head of 

4 household in the family is participating in 

5 such work activities for an average of at 

6 least 20, but less than 24, hours per week 

7 in a month, as 0.675 of a family. 

8 ‘‘(ii) In the case of such a family in 

9 which the total number of hours in which 

10 the adult recipient or minor child head of 

11 household in the family is participating in 

12 such work activities for an average of at 

13 least 24, but less than 35, hours per week 

14 in a month, as 1 family. 

15 ‘‘(iii) In the case of such a family in 

16 which the total number of hours in which 

17 the adult recipient or minor child head of 

18 household in the family is participating in 

19 such work activities for an average of at 

20 least 35, but less than 38, hours per week 

21 in a month, as 1.05 families. 

22 ‘‘(iv) In the case of such a family in 

23 which the total number of hours in which 

24 the adult recipient or minor child head of 

25 household in the family is participating in 
88 

•S 667 PCS 

1 such work activities for an average of at 

2 least 38 hours per week in a month, as 

3 1.08 families. 

4 ‘‘(B) APPLICATION OF RULES REGARDING

5 DIRECT WORK ACTIVITIES AND STATE FLEXI6 BILITY TO COUNT PARTICIPATION IN CERTAIN

7 ACTIVITIES.—Subparagraphs (B) and (C) of 

8 paragraph (1) apply to a family described in 

9 subparagraph (A) in the same manner as such 

10 subparagraphs apply to a family described in 

11 paragraph (1)(A). 

12 ‘‘(3) 2-PARENT FAMILIES.— 

13 ‘‘(A) IN GENERAL.—Subject to paragraph 

14 (6)(A), a 2-parent family in which an adult re15 cipient or minor child head of household in the 

16 family is participating in work activities de17 scribed in subsection (d) shall be treated as en18 gaged in work for purposes of determining 

19 monthly participation rates under subsection 

20 (b)(1)(B)(i) as follows: 

21 ‘‘(i) In the case of such a family in 

22 which the total number of hours in which 

23 any adult recipient or minor child head of 

24 household in the family is participating in 

25 such work activities for an average of at 
89 

•S 667 PCS 

1 least 26, but less than 30, hours per week 

2 in a month, as 0.675 of a family. 

3 ‘‘(ii) In the case of such a family in 

4 which the total number of hours in which 

5 any adult recipient or minor child head of 

6 household in the family is participating in 

7 such work activities for an average of at 

8 least 30, but less than 35, hours per week 

9 in a month, as 0.75 of a family. 

10 ‘‘(iii) In the case of such a family in 

11 which the total number of hours in which 

12 any adult recipient or minor child head of 

13 household in the family is participating in 

14 such work activities for an average of at 

15 least 35, but less than 39, hours per week 

16 in a month, as 0.875 of a family. 

17 ‘‘(iv) In the case of such a family in 

18 which the total number of hours in which 

19 any adult recipient or minor child head of 

20 household in the family is participating in 

21 such work activities for an average of at 

22 least 39, but less than 40, hours per week 

23 in a month, as 1 family. 

24 ‘‘(v) In the case of such a family in 

25 which the total number of hours in which 
90 

•S 667 PCS 

1 any adult recipient or minor child head of 

2 household in the family is participating in 

3 such work activities for an average of at 

4 least 40, but less than 43, hours per week 

5 in a month, as 1.05 families. 

6 ‘‘(vi) In the case of such a family in 

7 which the total number of hours in which 

8 any adult recipient or minor child head of 

9 household in the family is participating in 

10 such work activities for an average of at 

11 least 43 hours per week in a month, as 

12 1.08 families. 

13 ‘‘(B) APPLICATION OF RULES REGARDING

14 DIRECT WORK ACTIVITIES AND STATE FLEXI15 BILITY TO COUNT PARTICIPATION IN CERTAIN

16 ACTIVITIES.—Subparagraphs (B) and (C) of 

17 paragraph (1) apply to a 2-parent family de18 scribed in subparagraph (A) in the same man19 ner as such subparagraphs apply to a family 

20 described in paragraph (1)(A), except that sub21 paragraph (B) of paragraph (1) shall be applied 

22 to such a 2-parent family by substituting ‘34’ 

23 for ‘24’ each place it appears. 

24 ‘‘(4) 2-PARENT FAMILIES THAT RECEIVE FED25 ERALLY FUNDED CHILD CARE.— 
91 

•S 667 PCS 

1 ‘‘(A) IN GENERAL.—Subject to paragraph 

2 (6)(A), if a 2-parent family receives federally 

3 funded child care assistance, an adult recipient 

4 or minor child head of household in the family 

5 participating in work activities described in sub6 section (d) shall be treated as engaged in work 

7 for purposes of determining monthly participa8 tion rates under subsection (b)(1)(B)(i) as fol9 lows: 

10 ‘‘(i) In the case of such a family in 

11 which the total number of hours in which 

12 any adult recipient or minor child head of 

13 household in the family is participating in 

14 such work activities for an average of at 

15 least 40, but less than 45, hours per week 

16 in a month, as 0.675 of a family. 

17 ‘‘(ii) In the case of such a family in 

18 which the total number of hours in which 

19 any adult recipient or minor child head of 

20 household in the family is participating in 

21 such work activities for an average of at 

22 least 45, but less than 51, hours per week 

23 in a month, as 0.75 of a family. 

24 ‘‘(iii) In the case of such a family in 

25 which the total number of hours in which 
92 

•S 667 PCS 

1 any adult recipient or minor child head of 

2 household in the family is participating in 

3 such work activities for an average of at 

4 least 51, but less than 55, hours per week 

5 in a month, as 0.875 of a family. 

6 ‘‘(iv) In the case of such a family in 

7 which the total number of hours in which 

8 any adult recipient or minor child head of 

9 household in the family is participating in 

10 such work activities for an average of at 

11 least 55, but less than 56, hours per week 

12 in a month, as 1 family. 

13 ‘‘(v) In the case of such a family in 

14 which the total number of hours in which 

15 any adult recipient or minor child head of 

16 household in the family is participating in 

17 such work activities for an average of at 

18 least 56, but less than 59, hours per week 

19 in a month, as 1.05 families. 

20 ‘‘(vi) In the case of such a family in 

21 which the total number of hours in which 

22 any adult recipient or minor child head of 

23 household in the family is participating in 

24 such work activities for an average of at 
93 

•S 667 PCS 

1 least 59 hours per week in a month, as 

2 1.08 families. 

3 ‘‘(B) APPLICATION OF RULES REGARDING

4 DIRECT WORK ACTIVITIES AND STATE FLEXI5 BILITY TO COUNT PARTICIPATION IN CERTAIN

6 ACTIVITIES.—Subparagraphs (B) and (C) of 

7 paragraph (1) apply to a 2-parent family de8 scribed in subparagraph (A) in the same man9 ner as such subparagraphs apply to a family 

10 described in paragraph (1)(A), except that sub11 paragraph (B) of paragraph (1) shall be applied 

12 to such a 2-parent family by substituting ‘50’ 

13 for ‘24’ each place it appears. 

14 ‘‘(5) CALCULATION OF HOURS PER WEEK.— 

15 ‘‘(A) IN GENERAL.—The number of hours 

16 per week that a family is engaged in work is 

17 the quotient of— 

18 ‘‘(i) the total number of hours per 

19 month that the family is engaged in work; 

20 divided by 

21 ‘‘(ii) 4. 

22 ‘‘(B) DETERMINATION OF TOTAL NUMBER

23 OF HOURS PER MONTH.—The total number of 

24 hours per month in which a family is engaged 

25 in work is equal to the sum of the number of 
94 

•S 667 PCS 

1 hours of participation in work activities de2 scribed in subsection (d) for all adults and 

3 minor child head of households in the family for 

4 the month. 

5 ‘‘(6) SPECIAL RULES.— 

6 ‘‘(A) FAMILY WITH A DISABLED PARENT

7 NOT TREATED AS A 2-PARENT FAMILY.—A fam8 ily that includes a disabled parent shall not be 

9 considered a 2-parent family for purposes of 

10 paragraph (3) or (4). 

11 ‘‘(B) NUMBER OF WEEKS FOR WHICH JOB

12 SEARCH AND JOB READINESS ASSISTANCE

13 COUNTS AS WORK.—An individual shall not be 

14 considered to be engaged in work for a month 

15 by virtue of participation in an activity de16 scribed in subsection (d)(6) of a State program 

17 funded under this part, after the individual has 

18 participated in such an activity for 6 weeks per 

19 fiscal year (or, if the unemployment rate of the 

20 State is at least 50 percent greater than the 

21 unemployment rate of the United States, or the 

22 State meets the criteria of subclause (I), (II), 

23 or (III) of section 403(b)(3)(A)(iii) or satisfies 

24 the applicable duration requirement of section 

25 403(b)(3)(B), 12 weeks per fiscal year). 
95 

•S 667 PCS 

1 ‘‘(C) SINGLE TEEN HEAD OF HOUSEHOLD

2 OR MARRIED TEEN WHO MAINTAINS SATISFAC3 TORY SCHOOL ATTENDANCE DEEMED TO COUNT

4 AS 1 FAMILY.—For purposes of determining 

5 hours under the preceding paragraphs of this 

6 subsection, with respect to a month, a State 

7 shall count a recipient who is married or a head 

8 of household and who has not attained 20 years 

9 of age as 1 family if the recipient— 

10 ‘‘(i) maintains satisfactory attendance 

11 at a secondary school or the equivalent 

12 during the month; or 

13 ‘‘(ii) participates in education directly 

14 related to employment for an average of at 

15 least 20 hours per week during the month. 

16 ‘‘(D) LIMITATION ON NUMBER OF PER17 SONS WHO MAY BE TREATED AS ENGAGED IN

18 WORK BY REASON OF PARTICIPATION IN EDU19 CATIONAL ACTIVITIES.—Except as provided in 

20 paragraph (1)(C)(ii)(I), for purposes of sub21 section (b)(1)(B)(i), not more than 30 percent 

22 of the number of individuals in all families in 

23 a State who are treated as engaged in work for 

24 a month may consist of individuals who are— 
96 

•S 667 PCS 

1 ‘‘(i) determined (without regard to in2 dividuals participating in a program estab3 lished under section 404(l)) to be engaged 

4 in work for the month by reason of partici5 pation in vocational educational training 

6 (but only with respect to such training that 

7 is used to meet the requirements of para8 graph (1)(B)); or 

9 ‘‘(ii) deemed to be engaged in work 

10 for the month by reason of subparagraph 

11 (C) of this paragraph. 

12 ‘‘(E) STATE OPTION TO DEEM PARENT

13 CARING FOR A CHILD OR ADULT DEPENDENT

14 FOR CARE WITH A PHYSICAL OR MENTAL IM15 PAIRMENT TO BE MEETING ALL OR PART OF A

16 FAMILY’S WORK PARTICIPATION REQUIREMENTS

17 FOR A MONTH.— 

18 ‘‘(i) IN GENERAL.—A State may 

19 count the number of hours per week that 

20 an adult recipient or minor child head of 

21 household who is the parent or caretaker 

22 relative for a child or adult dependent for 

23 care with a physical or mental impairment 

24 engages in providing substantial ongoing 
97 

•S 667 PCS 

1 care for such child or adult dependent for 

2 care if the State determines that— 

3 ‘‘(I) the child or adult dependent 

4 for care has been verified through a 

5 medically acceptable clinical or diag6 nostic technique as having a signifi7 cant physical or mental impairment or 

8 combination of impairments that re9 quire substantial ongoing care; 

10 ‘‘(II) the adult recipient or minor 

11 child head of household providing 

12 such care is the most appropriate 

13 means, as determined by the State, by 

14 which such care can be provided to 

15 the child or adult dependent for care; 

16 ‘‘(III) for each month in which 

17 this subparagraph applies to the adult 

18 recipient or minor child head of 

19 household, the adult recipient or 

20 minor child head of household is in 

21 compliance with the requirements of 

22 the family’s self-sufficiency plan; and 

23 ‘‘(IV) the recipient is unable to 

24 participate fully in work activities, 

25 after consideration of whether there 
98 

•S 667 PCS 

1 are supports accessible and available 

2 to the family for the care of the child 

3 or adult dependent for care. 

4 ‘‘(ii) TOTAL NUMBER OF HOURS LIM5 ITED TO BEING COUNTED AS 1 FAMILY.— 

6 In no event may a family that includes a 

7 recipient to which clause (i) applies be 

8 counted as more than 1 family for pur9 poses of determining monthly participation 

10 rates under subsection (b)(1)(B)(i). 

11 ‘‘(iii) STATE REQUIREMENTS.—In the 

12 case of a recipient to which clause (i) ap13 plies, the State shall— 

14 ‘‘(I) conduct regular, periodic 

15 evaluations of the family of the adult 

16 recipient or minor child head of 

17 household; and 

18 ‘‘(II) include as part of the fam19 ily’s self-sufficiency plan, regular up20 dates on what special needs of the 

21 child or the adult dependent for care, 

22 including substantial ongoing care, 

23 could be accommodated either by indi24 viduals other than the adult recipient 
99 

•S 667 PCS 

1 or minor child head of household out2 side of the home. 

3 ‘‘(iv) RULE OF CONSTRUCTION.— 

4 Nothing in this subparagraph shall be con5 strued as prohibiting a State from includ6 ing in a recipient’s self-sufficiency plan a 

7 requirement to engage in work activities 

8 described in subsection (d). 

9 ‘‘(F) OPTIONAL MODIFICATION OF WORK

10 REQUIREMENTS FOR RECIPIENTS RESIDING IN

11 AREAS OF INDIAN COUNTRY OR AN ALASKAN

12 NATIVE VILLAGE WITH HIGH JOBLESSNESS.—If 

13 a State has included in the State plan a de14 scription of the State’s policies in areas of In15 dian country or an Alaskan Native village de16 scribed in section 408(a)(7)(D), the State may 

17 define the activities that the State will treat as 

18 being work activities described in subsection (d) 

19 that a recipient who resides in such an area and 

20 who is participating in such activities in accord21 ance with a self-sufficiency plan under section 

22 408(b) may engage in for purposes of satisfying 

23 work requirements under the State program 

24 and for purposes of determining monthly par25 ticipation rates under subsection (b)(1)(B)(i).’’. 
100 

•S 667 PCS 

1 (g) WORK ACTIVITIES.— 

2 (1) IN GENERAL.—Section 407(d) (42 U.S.C. 

3 607(d)) is amended— 

4 (A) in paragraph (11), by striking ‘‘and’’ 

5 at the end: 

6 (B) in paragraph (12), by striking the pe7 riod and inserting ‘‘; and’’; and 

8 (C) by adding at the end the following: 

9 ‘‘(13) marriage education, marriage skills train10 ing, conflict resolution counseling in the context of 

11 marriage, and participation in programs that pro12 mote marriage.’’. 

13 (2) CONFORMING AMENDMENT.—Section 

14 407(c)(1)(B) (42 U.S.C. 607(c)(1)(B)), as amended 

15 by subsection (f), is amended by striking ‘‘or (11)’’ 

16 and inserting ‘‘(11), or (13)’’. 

17 SEC. 110. UNIVERSAL ENGAGEMENT AND FAMILY SELF18 SUFFICIENCY PLAN REQUIREMENTS; OTHER 

19 PROHIBITIONS AND REQUIREMENTS. 

20 (a) UNIVERSAL ENGAGEMENT AND FAMILY SELF21 SUFFICIENCY PLAN REQUIREMENTS.— 

22 (1) MODIFICATION OF STATE PLAN REQUIRE23 MENTS.— 

24 (A) IN GENERAL.—Section 402(a)(1)(A) 

25 (42 U.S.C. 602(a)(1)(A)) is amended by strik-
101 

•S 667 PCS 

1 ing clauses (ii) and (iii) and inserting the fol2 lowing: 

3 ‘‘(ii) Require an adult or minor child 

4 head of household receiving assistance 

5 under the program to engage in work or 

6 alternative self-sufficiency activities (as de7 fined by the State), consistent with section 

8 407(e)(2). 

9 ‘‘(iii)(I) Require families receiving as10 sistance under the program that— 

11 ‘‘(I) include an adult or minor 

12 child head of household to engage in 

13 activities in accordance with family 

14 self-sufficiency plans developed pursu15 ant to section 408(b); and 

16 ‘‘(II) at State option, only consist 

17 of a child or children, to engage in ac18 tivities in accordance with such plans 

19 that specify the supportive services 

20 the State intends to provide for such 

21 families and provide for regular inter22 action with the families but do not re23 quire participation in a work activity 

24 described in section 407(d) (other 
102 

•S 667 PCS 

1 than paragraph (11) of such sec2 tion).’’. 

3 (B) RULE OF CONSTRUCTION.—Nothing in 

4 the amendments made by subparagraph (A) 

5 shall be construed as requiring a family receiv6 ing assistance under a State program funded 

7 under part A of title IV of the Social Security 

8 Act (42 U.S.C. 601 et seq.) that only consists 

9 of a child or children, or a caretaker for such 

10 a family, to engage in work as a condition of 

11 receiving such assistance. 

12 (2) ESTABLISHMENT OF FAMILY SELF-SUFFI13 CIENCY PLANS.— 

14 (A) IN GENERAL.—Section 408(b) (42 

15 U.S.C. 608(b)) is amended to read as follows: 

16 ‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.— 

17 ‘‘(1) IN GENERAL.—A State to which a grant 

18 is made under section 403 shall— 

19 ‘‘(A) make an initial screening and assess20 ment, in the manner deemed appropriate by the 

21 State, of the skills, prior work experience, edu22 cation obtained, work readiness, barriers to 

23 work, and employability of each adult or minor 

24 child head of household recipient of assistance 

25 in the family who— 
103 

•S 667 PCS 

1 ‘‘(i) has attained age 18; or 

2 ‘‘(ii) has not completed high school or 

3 obtained a certificate of high school equiva4 lency and is not attending secondary 

5 school; 

6 ‘‘(B) assess, in the manner deemed appro7 priate by the State, the work support and other 

8 assistance and family support services for which 

9 each family receiving assistance is eligible; and 

10 ‘‘(C) assess, in the manner deemed appro11 priate by the State, the well-being of the chil12 dren in the family, and, where appropriate, ac13 tivities or resources to improve the well-being of 

14 the children. 

15 ‘‘(2) CONTENTS OF PLANS.—The State shall, in 

16 the manner deemed appropriate by the State estab17 lish for each family that includes an individual de18 scribed in paragraph (1)(A) (and, if the State elects, 

19 each family that only consists of a child or children), 

20 in consultation as the State deems appropriate with 

21 the individual, a self-sufficiency plan that— 

22 ‘‘(A) specifies activities described in the 

23 State plan submitted pursuant to section 402, 

24 including work activities described in paragraph 
104 

•S 667 PCS 

1 (1), (2), (3), (4), (5), (6), (7), (8), or (12) of 

2 section 407(d), as appropriate; 

3 ‘‘(B) is designed to assist the family in 

4 achieving their maximum degree of self-suffi5 ciency; 

6 ‘‘(C) provides for the ongoing participation 

7 of the individual in the activities specified in the 

8 plan; 

9 ‘‘(D) requires, at a minimum, each such 

10 individual to participate in activities in accord11 ance with the self-sufficiency plan; 

12 ‘‘(E) sets forth the appropriate supportive 

13 services the State intends to provide for the 

14 family; 

15 ‘‘(F) establishes for the family a plan that 

16 addresses the issue of child well-being and, 

17 when appropriate, adolescent well-being, and 

18 that may include services such as domestic vio19 lence counseling, mental health referrals, and 

20 parenting courses; and 

21 ‘‘(G) includes a section designed to assist 

22 the family by informing the family, in such 

23 manner as deemed appropriate by the State, of 

24 the work support and other assistance for which 
105 

•S 667 PCS 

1 the family may be eligible including (but not 

2 limited to)— 

3 ‘‘(i) the food stamp program estab4 lished under the Food Stamp Act of 1977 

5 (7 U.S.C. 2011 et seq.); 

6 ‘‘(ii) the medicaid program funded 

7 under title XIX; 

8 ‘‘(iii) the State children’s health in9 surance program funded under title XXI; 

10 ‘‘(iv) Federal or State funded child 

11 care, including child care funded under the 

12 Child Care Development Block Grant Act 

13 of 1990 (42 U.S.C. 9858 et seq.) and 

14 funds made available under this title or 

15 title XX; 

16 ‘‘(v) the earned income tax credit 

17 under section 32 of the Internal Revenue 

18 Code of 1986; 

19 ‘‘(vi) the low-income home energy as20 sistance program established under the 

21 Low-Income Home Energy Assistance Act 

22 of 1981 (42 U.S.C. 8621 et seq.); 

23 ‘‘(vii) the special supplemental nutri24 tion program for women, infants, and chil25 dren established under section 17 of the 
106 

•S 667 PCS 

1 Child Nutrition Act of 1966 (42 U.S.C. 

2 1786); 

3 ‘‘(viii) programs conducted under the 

4 Workforce Investment Act of 1998 (29 

5 U.S.C. 2801 et seq.); and 

6 ‘‘(ix) low-income housing assistance 

7 programs. 

8 ‘‘(3) STATE OPTION TO RECEIVE WORK PAR9 TICIPATION RATE CREDIT FOR AN INDIVIDUAL

10 WHOSE PLAN SPECIFIES THAT THEY HAVE A CON11 TINUING NEED FOR REHABILITATIVE SERVICES IN

12 ORDER TO ENGAGE IN DIRECT WORK ACTIVITIES.— 

13 ‘‘(A) IN GENERAL.—A State may elect, on 

14 a case-by-case basis, to include direct work ac15 tivities by an individual described in subpara16 graph (B) that are combined with rehabilitative 

17 services in the determination of monthly partici18 pation rates under section 407(b)(1)(B)(i). 

19 ‘‘(B) INDIVIDUAL DESCRIBED.—For pur20 poses of this paragraph, an individual described 

21 in this subparagraph is an individual who— 

22 ‘‘(i) is an adult or minor child head of 

23 household recipient of assistance; 

24 ‘‘(ii) was treated as being engaged in 

25 work during each of the 3-month periods 
107 

•S 667 PCS 

1 applicable under clauses (i) and (ii) of sec2 tion 407(c)(1)(C); and 

3 ‘‘(iii) the State determines— 

4 ‘‘(I) has been verified through a 

5 medically acceptable clinical or diag6 nostic technique as having a disability 

7 that impedes the individual’s ability to 

8 function in a work setting; and 

9 ‘‘(II) continues to need rehabili10 tative services in order to engage in 

11 direct work activities. 

12 ‘‘(C) REQUIREMENTS.—A State shall not 

13 include activities of an individual described in 

14 subparagraph (B) in the determination of 

15 monthly participation rates under section 

16 407(b)(1)(B)(i) unless the following require17 ments are met: 

18 ‘‘(i) DEVELOPMENT AND MAINTE19 NANCE OF COLLABORATIVE RELATION20 SHIPS.— 

21 ‘‘(I) IN GENERAL.—The State 

22 agency responsible for administering 

23 the State program funded under this 

24 part has or is developing collaborative 

25 and referral relationships with other 
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1 governmental and private agencies 

2 with expertise in disability determina3 tions, or the development of appro4 priate services plans for individuals 

5 with disabilities, to address the needs 

6 of adult or minor child head of house7 hold recipients of assistance who have 

8 a disability and require such services 

9 plans in order to engage in direct 

10 work activities. 

11 ‘‘(II) INCLUSION OF RELATION12 SHIPS WITH AGENCIES FUNDED

13 UNDER THIS PART.—The govern14 mental and private agencies referred 

15 to in subclause (I) include agencies 

16 that may be receiving funds under 

17 this part, such as State and local 

18 mental health agencies, substance 

19 abuse treatment providers (including 

20 drug or alcohol abuse treatment pro21 viders), disability service agencies, and 

22 providers of vocational rehabilitation 

23 services. 

24 ‘‘(ii) SELF-SUFFICIENCY PLAN SPECI25 FIES THE INDIVIDUAL’S CONTINUING NEED
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1 FOR SERVICES AND COORDINATION PROC2 ESS WITH PROVIDERS.—The plan estab3 lished under paragraph (2) for an indi4 vidual described in subparagraph (B)— 

5 ‘‘(I) specifies the individual’s con6 tinuing need for rehabilitative services 

7 in order to engage in direct work ac8 tivities; and 

9 ‘‘(II) describes how the State will 

10 coordinate with each provider of such 

11 services. 

12 ‘‘(iii) STATE PLAN DESCRIPTION AND

13 ASSURANCES.—The State includes in an 

14 addendum to the State plan submitted 

15 under section 402 the following: 

16 ‘‘(I) DESCRIPTION OF PROCESS

17 FOR DEVELOPING AND MAINTAINING

18 COLLABORATIVE RELATIONSHIPS.—A 

19 description of the process the State 

20 shall use to develop and maintain the 

21 collaborative and referral relationships 

22 with other governmental and private 

23 agencies required under clause (i). 

24 ‘‘(II) ASSURANCE OF REGULAR

25 CONTACT WITH SERVICE PROVIDERS, 
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1 REEVALUATION, AND MODIFICATION

2 OF PLAN.—An assurance that the 

3 State shall— 

4 ‘‘(aa) ensure that each pro5 vider of rehabilitative services for 

6 an individual described in sub7 paragraph (B) is in regular con8 tact with the individual and that 

9 the provider will inform the State 

10 if the individual is no longer par11 ticipating in the rehabilitation 

12 services; 

13 ‘‘(bb) reevaluate the individ14 ual’s continuing need for such 

15 services not less than once each 

16 fiscal year quarter; and 

17 ‘‘(cc) make appropriate 

18 modifications to the individual’s 

19 self-sufficiency plan on the basis 

20 of such information and reevalua21 tions. 

22 ‘‘(iv) NO DETERMINATION THAT THE

23 STATE HAS FAILED TO COMPLY WITH THE

24 REQUIREMENT TO DEVELOP AND MAIN25 TAIN COLLABORATIVE RELATIONSHIPS.— 
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1 The Secretary has not made a determina2 tion that the State has failed to comply 

3 with the requirement to develop and main4 tain the collaborative and referral relation5 ships with other governmental and private 

6 agencies required under clause (i). 

7 ‘‘(D) CREDIT FOR HOURS OF PARTICIPA8 TION IN DIRECT WORK ACTIVITIES AND REHA9 BILITATION SERVICES.— 

10 ‘‘(i) IN GENERAL.—A State may in11 clude in the determination of monthly par12 ticipation rates under section 

13 407(b)(1)(B)(i) the sum of the total num14 ber of hours that an individual described in 

15 subparagraph (B) participates for a month 

16 in— 

17 ‘‘(I) direct work activities; and 

18 ‘‘(II) rehabilitative services (but 

19 only up to the number of hours of 

20 such services that do not exceed the 

21 total number of hours that the indi22 vidual participated in direct work ac23 tivities for that month). 

24 ‘‘(ii) APPLICATION OF RULES FOR DE25 TERMINATION OF COUNTABLE HOURS OF
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1 WORK.—The sum of hours of participation 

2 by such an individual shall be treated 

3 under section 407(c) in the same manner 

4 as a family participating in work activities 

5 described in section 407(d) is treated as 

6 engaged in work under section 407(c). 

7 ‘‘(E) DEFINITIONS.—In this paragraph: 

8 ‘‘(i) DISABILITY.—The term ‘dis9 ability’ means a physical or mental impair10 ment, including substance abuse and drug 

11 or alcohol abuse, that— 

12 ‘‘(I) constitutes or results in a 

13 substantial impediment to employ14 ment; or 

15 ‘‘(II) substantially limits 1 or 

16 more major life activities. 

17 ‘‘(ii) DIRECT WORK ACTIVITY.—The 

18 term ‘direct work activity’ means an activ19 ity described in paragraph (1), (2), (3), 

20 (4), (5), (6), (7), (8), or (12) of section 

21 407(d). 

22 ‘‘(4) REVIEW.— 

23 ‘‘(A) REGULAR REVIEW.—A State to which 

24 a grant is made under section 403 shall— 
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1 ‘‘(i) monitor the participation of each 

2 adult recipient or minor child head of 

3 household in the activities specified in the 

4 self-sufficiency plan, and regularly review 

5 the progress of the family toward self-suffi6 ciency; and 

7 ‘‘(ii) upon such a review, revise the 

8 plan and activities required under the plan 

9 as the State deems appropriate in con10 sultation with the family. 

11 ‘‘(B) PRIOR TO THE IMPOSITION OF A

12 SANCTION.—Prior to imposing a sanction 

13 against an adult recipient, minor child head of 

14 household, or a family for failure to comply 

15 with a requirement of the self-sufficiency plan 

16 or the State program funded under this part, 

17 the State shall, in the manner determined ap18 propriate by the State— 

19 ‘‘(i) review the self-sufficiency plan; 

20 and 

21 ‘‘(ii) make a good faith effort (as de22 fined by the State) to consult with the 

23 family. 

24 ‘‘(5) STATE DISCRETION.—Subject to para25 graph (3), a State shall have sole discretion, con-
114 

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1 sistent with section 407, to define and design activi2 ties for families for purposes of this subsection, to 

3 develop methods for monitoring and reviewing 

4 progress pursuant to this subsection, and to make 

5 modifications to the plan as the State deems appro6 priate to assist the individual in increasing their de7 gree of self-sufficiency. 

8 ‘‘(6) APPLICATION TO PARTIALLY SANCTIONED

9 FAMILIES.—The requirements of this subsection 

10 shall apply in the case of a family that includes an 

11 adult or minor child head of household recipient of 

12 assistance who is subject to a partial sanction. 

13 ‘‘(7) TIMING.—The State shall initiate screen14 ing and assessment and the establishment of a fam15 ily self-sufficiency plan in accordance with the re16 quirements of this subsection— 

17 ‘‘(A) in the case of a family that, as of the 

18 date of enactment of the Personal Responsi19 bility and Individual Development for Everyone 

20 Act, is not receiving assistance from the State 

21 program funded under this part, not later than 

22 the later of— 

23 ‘‘(i) 1 year after such date of enact24 ment; or 
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1 ‘‘(ii) 60 days after the family first re2 ceives assistance on the basis of the most 

3 recent application for assistance; and 

4 ‘‘(B) in the case of a family that, as of 

5 such date, is receiving assistance under the 

6 State program funded under this part, not later 

7 than 1 year after such date of enactment. 

8 ‘‘(8) RULE OF INTERPRETATION.—Nothing in 

9 this subsection shall preclude a State from— 

10 ‘‘(A) requiring participation in work and 

11 any other activities the State deems appropriate 

12 for helping families achieve self-sufficiency and 

13 improving child well-being; or 

14 ‘‘(B) using job search or other appropriate 

15 job readiness or work activities to assess the 

16 employability of individuals and to determine 

17 appropriate future engagement activities.’’. 

18 (B) PENALTY FOR FAILURE TO COMPLY

19 WITH FAMILY SELF-SUFFICIENCY PLAN RE20 QUIREMENTS.— 

21 (i) IN GENERAL.—Section 409(a)(3) 

22 (42 U.S.C. 609(a)(3)) is amended— 

23 (I) in the paragraph heading, by 

24 inserting ‘‘OR COMPLY WITH FAMILY
116 

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1 SELF-SUFFICIENCY PLAN REQUIRE2 MENTS’’ after ‘‘RATES’’; 

3 (II) in subparagraph (A), by in4 serting ‘‘or 408(b)’’ after ‘‘407(a)’’; 

5 and 

6 (III) by striking subparagraph 

7 (C) and inserting the following: 

8 ‘‘(C) PENALTY BASED ON SEVERITY OF

9 FAILURE.— 

10 ‘‘(i) FAILURE TO SATISFY MINIMUM

11 PARTICIPATION RATE.—If, with respect to 

12 fiscal year 2007 or any fiscal year there13 after, the Secretary finds that a State has 

14 failed or is failing to substantially comply 

15 with the requirements of section 407(a) for 

16 that fiscal year, the Secretary shall impose 

17 reductions under subparagraph (A) with 

18 respect to the immediately succeeding fis19 cal year based on the degree of substantial 

20 noncompliance. In assessing the degree of 

21 substantial noncompliance under section 

22 407(a) for a fiscal year, the Secretary shall 

23 take into account factors such as— 
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1 ‘‘(I) the degree to which the 

2 State missed the minimum participa3 tion rate for that fiscal year; 

4 ‘‘(II) the change in the number 

5 of individuals who are engaged in 

6 work in the State since the prior fiscal 

7 year; and 

8 ‘‘(III) the number of consecutive 

9 fiscal years in which the State failed 

10 to reach the minimum participation 

11 rate. 

12 ‘‘(ii) FAILURE TO COMPLY WITH

13 SELF-SUFFICIENCY PLAN REQUIRE14 MENTS.—If, with respect to fiscal year 

15 2007 or any fiscal year thereafter, the Sec16 retary finds that a State has failed or is 

17 failing to substantially comply with the re18 quirements of section 408(b) for that fiscal 

19 year, the Secretary shall impose reductions 

20 under subparagraph (A) with respect to 

21 the immediately succeeding fiscal year 

22 based on the degree of substantial non23 compliance. In assessing the degree of sub24 stantial noncompliance under section 
118 

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1 408(b), the Secretary shall take into ac2 count factors such as— 

3 ‘‘(I) the number or percentage of 

4 families for which a self-sufficiency 

5 plan is not established in a timely 

6 fashion for that fiscal year; 

7 ‘‘(II) the duration of the delays 

8 in establishing a self-sufficiency plan 

9 during that fiscal year; 

10 ‘‘(III) whether the failures are 

11 isolated and nonrecurring; and 

12 ‘‘(IV) the existence of systems 

13 designed to ensure that self-suffi14 ciency plans are established for all 

15 families in a timely fashion and that 

16 families’ progress under such plans is 

17 monitored. 

18 ‘‘(iii) AUTHORITY TO REDUCE THE

19 PENALTY.—The Secretary may reduce the 

20 penalty that would otherwise apply under 

21 this paragraph if the substantial non22 compliance is due to circumstances that 

23 caused the State to meet the criteria of 

24 subclause (I), (II), or (III) of section 

25 403(b)(3)(A)(iii) or to satisfy the applica-
119 

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1 ble duration requirement of section 

2 403(b)(3)(B) during the fiscal year, or if 

3 the noncompliance is due to extraordinary 

4 circumstances such as a natural disaster or 

5 regional recession. The Secretary shall pro6 vide a written report to Congress to justify 

7 any waiver or penalty reduction due to 

8 such extraordinary circumstances.’’. 

9 (ii) EFFECTIVE DATE.—The amend10 ments made by this subparagraph take ef11 fect on October 1, 2006. 

12 (3) GAO EVALUATION AND REPORT.—Not later 

13 than September 30, 2007, the Comptroller General 

14 of the United States shall submit a report to the 

15 Committee on Finance of the Senate and the Com16 mittee on Ways and Means of the House of Rep17 resentatives evaluating the implementation of the 

18 universal engagement provisions under the tem19 porary assistance to needy families program under 

20 part A of title IV of the Social Security Act (42 

21 U.S.C. 601 et seq.), as added by the amendments 

22 made by this subsection. 

23 (4) RULES OF CONSTRUCTION.—Nothing in 

24 this subsection or the amendments made by this 

25 subsection shall be construed— 
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1 (A) as establishing a private right or cause 

2 of action against a State for failure to comply 

3 with the requirements imposed under this sub4 section or the amendments made by this sub5 section; or 

6 (B) as limiting claims that may be avail7 able under other Federal or State laws. 

8 (b) TRANSITIONAL COMPLIANCE FOR TEEN PAR9 ENTS.— 

10 (1) IN GENERAL.—Section 408(a)(5) (42 

11 U.S.C. 608(a)(5)) is amended— 

12 (A) in subparagraph (A)(i), by striking 

13 ‘‘subparagraph (B)’’ and inserting ‘‘subpara14 graphs (B) and (C)’’; and 

15 (B) by adding at the end the following: 

16 ‘‘(C) AUTHORITY TO PROVIDE TEMPORARY

17 ASSISTANCE.—A State may use any part of a 

18 grant made under section 403 to provide assist19 ance to an individual described in clause (ii) of 

20 subparagraph (A) who would otherwise be pro21 hibited from receiving such assistance under 

22 clause (i) of that subparagraph, subparagraph 

23 (B), or section 408(a)(4) for not more than a 

24 single 60-day period in order to assist the indi25 vidual in meeting the requirement of clause (i) 
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1 of subparagraph (A), subparagraph (B), or sec2 tion 408(a)(4) for receipt of such assistance.’’. 

3 (2) INCLUSION OF TRANSITIONAL LIVING

4 YOUTH PROJECTS AS A FORM OF ADULT-SUPER5 VISED SETTING.—Clause (i) of section 408(a)(5)(A) 

6 (42 U.S.C. 608(a)(5)(A)), as amended by paragraph 

7 (1), is amended— 

8 (A) by striking ‘‘do not reside in a place 

9 of’’ and inserting ‘‘do not reside in a— 

10 ‘‘(I) place of’’; 

11 (B) by striking the period and inserting ‘‘; 

12 or’’; and 

13 (C) by adding at the end the following: 

14 ‘‘(II) transitional living youth 

15 project funded under a grant made 

16 under section 321 of the Runaway 

17 and Homeless Youth Act (42 U.S.C. 

18 5714–1).’’. 

19 (c) AREAS OF INDIAN COUNTRY OF HIGH JOBLESS20 NESS.—Section 408(a)(7)(D) (42 U.S.C. 608(a)(7)(D)) is 

21 amended— 

22 (1) in the subparagraph heading, by striking 

23 ‘‘COUNTRY’’ and all that follows through ‘‘UNEM24 PLOYMENT’’ and inserting ‘‘COUNTRY WITH HIGH
122 

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1 JOBLESSNESS OR IN AN ALASKAN NATIVE VILLAGE

2 WITH 50 PERCENT UNEMPLOYMENT’’; 

3 (2) by redesignating clause (ii) as clause (v); 

4 and 

5 (3) by striking clause (i) and inserting the fol6 lowing: 

7 ‘‘(i) IN GENERAL.—Subject to clauses 

8 (ii), (iii), and (iv), in determining the num9 ber of months for which an adult has re10 ceived assistance under a State or tribal 

11 program funded under this part, the State 

12 or Indian tribe shall disregard any month 

13 during which the adult lived in Indian 

14 country if the most reliable data available 

15 (or such other data submitted by a State 

16 or tribal program as the Secretary may ap17 prove) with respect to the month (or a pe18 riod including the month) indicate that at 

19 least 40 percent of the adult recipients, 

20 who were living in Indian country were 

21 jobless. 

22 ‘‘(ii) ECONOMIC DOWNTURN.—If— 

23 ‘‘(I) in the case of a State pro24 gram funded under this part— 
123 

•S 667 PCS 

1 ‘‘(aa) the unemployment 

2 rate of the State is at least 50 

3 percent greater than the unem4 ployment rate of the United 

5 States; and 

6 ‘‘(bb) the State meets the 

7 criteria of subclause (I), (II), or 

8 (III) of section 403(b)(3)(A)(iii) 

9 and satisfies the applicable dura10 tion requirement of section 

11 403(b)(3)(B): or 

12 ‘‘(II) in the case of a tribal pro13 gram funded under this part, the In14 dian tribe satisfies the criteria speci15 fied under section 403(b)(1)(D)(ii), 

16 clause (i) shall be applied by substituting 

17 ‘35 percent’ for ‘40 percent’. 

18 ‘‘(iii) REQUIREMENT.—A month may 

19 only be disregarded under clause (i) with 

20 respect to an adult recipient described in 

21 that clause if the adult is in compliance 

22 with program requirements. 

23 ‘‘(iv) CONTINUATION OF 50 PERCENT

24 UNEMPLOYMENT REQUIREMENT FOR AN

25 ALASKAN NATIVE VILLAGE.—In the case of 
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1 an Alaskan Native village, this subpara2 graph shall be applied without regard to 

3 the amendments made by the Personal Re4 sponsibility and Individual Development 

5 for Everyone Act.’’. 

6 SEC. 111. PENALTIES. 

7 (a) MAINTENANCE OF CERTAIN LEVEL OF HISTORIC

8 EFFORT.—Section 409(a)(7) (42 U.S.C. 609(a)(7)) is 

9 amended— 

10 (1) in subparagraph (A), by striking ‘‘or 2006’’ 

11 and inserting ‘‘2006, 2007, 2008, 2009, 2010, or 

12 2011’’; and 

13 (2) in subparagraph (B)(ii)— 

14 (A) by inserting ‘‘preceding’’ before ‘‘fiscal 

15 year’’; and 

16 (B) by striking ‘‘for fiscal years 1997 

17 through 2005,’’. 

18 (b) IMPLEMENTING WORK PROGRAM IMPROVEMENT

19 THROUGH CORRECTIVE ACTION PLAN.—Section 

20 409(c)(2) (42 U.S.C. 609(c)(2)) is amended— 

21 (1) by striking ‘‘The Secretary’’ and inserting 

22 the following: 

23 ‘‘(A) IN GENERAL.—The Secretary’’; and 

24 (2) by adding at the end the following: 
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1 ‘‘(B) NO PENALTY IF WORK PROGRAM IM2 PROVEMENT.—The Secretary shall not impose 

3 any penalty under subsection (a)(3) for a 

4 State’s failure to comply with section 407(a) for 

5 a fiscal year if the Secretary determines that 

6 the participation rate determined for the State 

7 under section 407(b)(1) for that fiscal year in8 creased by at least 5 percentage points above 

9 the participation rate for the State for the pre10 ceding fiscal year and a State corrective compli11 ance plan accepted by the Secretary specifies 

12 how the State will correct the violation.’’. 

13 SEC. 112. DATA COLLECTION AND REPORTING. 

14 (a) CONTENTS OF REPORT.—Section 411(a)(1)(A) 

15 (42 U.S.C. 611(a)(1)(A)) is amended— 

16 (1) in the matter preceding clause (i), by insert17 ing ‘‘and on families receiving assistance under 

18 State programs funded with other qualified State ex19 penditures (as defined in section 409(a)(7)(B)(i))’’ 

20 before the colon; 

21 (2) in clause (vii), by inserting ‘‘and minor par22 ent’’ after ‘‘of each adult’’; 

23 (3) in clause (viii), by striking ‘‘and educational 

24 level’’; 
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1 (4) in clause (ix), by striking ‘‘, and if the lat2 ter 2, the amount received’’; 

3 (5) in clause (x)— 

4 (A) by striking ‘‘each type of’’; and 

5 (B) by inserting before the period ‘‘and, if 

6 applicable, the reason for receipt of the assist7 ance for a total of more than 60 months’’; 

8 (6) by striking clause (xi) and inserting the fol9 lowing: 

10 ‘‘(xi) If the adult or minor child head of 

11 household participated in, and the average 

12 number of hours per week of participation in, 

13 each activity listed in subsections (c)(1)(i)(II) 

14 (including average hours per week in each dif15 ferent type of rehabilitative activity as pre16 scribed by the Secretary) and (d) of section 407 

17 and other work or self-sufficiency activities.’’. 

18 (7) in clause (xii), by inserting ‘‘and progress 

19 toward universal engagement’’ after ‘‘participation 

20 rates’’; 

21 (8) in clause (xiii), by striking ‘‘type and’’ be22 fore ‘‘amount of assistance’’; 

23 (9) in clause (xvi), by striking subclause (II) 

24 and redesignating subclauses (III) through (V) as 

25 subclauses (II) through (IV), respectively; and 
127 

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1 (10) by adding at the end the following: 

2 ‘‘(xviii) The date the family first re3 ceived assistance from the State program 

4 on the basis of the most recent application 

5 for such assistance. 

6 ‘‘(xix) Whether a self-sufficiency plan 

7 is established for the family in accordance 

8 with section 408(b). 

9 ‘‘(xx) With respect to any child in the 

10 family, the marital status of the parents at 

11 the birth of the child, and if the parents 

12 were not then married, whether the pater13 nity of the child has been established.’’. 

14 (b) USE OF SAMPLES.—Section 411(a)(1)(B) (42 

15 U.S.C. 611(a)(1)(B)) is amended— 

16 (1) in clause (i)— 

17 (A) by striking ‘‘a sample’’ and inserting 

18 ‘‘samples’’; and 

19 (B) by inserting before the period ‘‘, except 

20 that the Secretary may designate core data ele21 ments that must be reported on all families’’; 

22 and 

23 (2) in clause (ii), by striking ‘‘funded under this 

24 part’’ and inserting ‘‘described in subparagraph 

25 (A)’’. 
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1 (c) REPORT ON FAMILIES THAT BECOME INELI2 GIBLE TO RECEIVE ASSISTANCE.—Section 411(a) (42 

3 U.S.C. 611(a)) is amended— 

4 (1) by striking paragraph (5); 

5 (2) by redesignating paragraph (6) as para6 graph (5); and 

7 (3) by inserting after paragraph (5) (as so re8 designated) the following: 

9 ‘‘(6) REPORT ON FAMILIES THAT BECOME IN10 ELIGIBLE TO RECEIVE ASSISTANCE.— 

11 ‘‘(A) IN GENERAL.—The report required 

12 by paragraph (1) for a fiscal quarter shall in13 clude for each month in the quarter the number 

14 of families and total number of individuals that, 

15 during the month, became ineligible to receive 

16 assistance under the State program funded 

17 under this part (broken down by the number of 

18 families that become so ineligible due to earn19 ings, changes in family composition that result 

20 in increased earnings, sanctions, time limits, or 

21 other specified reasons). 

22 ‘‘(B) INFORMATION REGARDING FAMILIES

23 IN SEPARATE STATE PROGRAMS.—The report 

24 required by paragraph (1) for a fiscal quarter 

25 shall include for each month in the quarter the 
129 

•S 667 PCS 

1 number of families and total number of individ2 uals that, during the month, received assistance 

3 under State programs funded with qualified 

4 State expenditures (as defined in section 

5 409(a)(7)(B)(i)).’’. 

6 (d) REPORT ON TANF-FUNDED CHILD CARE.—Sec7 tion 411(a) (42 U.S.C. 611(a)), as amended by subsection 

8 (c), is amended— 

9 (1) by redesignating paragraph (7) as para10 graph (8); and 

11 (2) by inserting after paragraph (6) the fol12 lowing: 

13 ‘‘(7) REPORT ON TANF-FUNDED CHILD CARE.— 

14 ‘‘(A) IN GENERAL.—Subject to subpara15 graphs (B), (C), and (D), the report required 

16 by paragraph (1) for a fiscal quarter shall in17 clude for each month in the quarter the infor18 mation described in section 658K(a) of the 

19 Child Care and Development Block Grant Act 

20 of 1990 with respect to each family that re21 ceived child care that was funded in whole or in 

22 part with funds provided under section 403 

23 (other than funds transferred under section 

24 404(d)) or with qualified State expenditures (as 

25 defined in section 409(a)(7)(B)(i)), without re-
130 

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1 gard to whether the family is a recipient or 

2 former recipient of assistance under the State 

3 program funded under this part. A State may 

4 comply with the requirement of this subpara5 graph through the use of scientifically accept6 able sampling methods approved by the Sec7 retary. 

8 ‘‘(B) COORDINATION WITH OTHER RE9 PORTING REQUIREMENTS.— 

10 ‘‘(i) IN GENERAL.—The Secretary 

11 shall coordinate the reporting required 

12 under subparagraph (A) with the reporting 

13 required under the Child Care and Devel14 opment Block Grant Act of 1990 to ensure 

15 that States are not required to report du16 plicate information on the same families in 

17 order to satisfy both requirements. 

18 ‘‘(ii) CONSOLIDATED REPORTING.— 

19 Notwithstanding section 658K(a) of the 

20 Child Care and Development Block Grant 

21 Act of 1990, the Secretary may permit a 

22 State to submit a consolidated report to 

23 satisfy the reporting required under sub24 paragraph (A) and the reporting required 

25 under section 658K(a) of the Child Care 
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1 and Development Block Grant Act of 

2 1990, so long as the State identifies in the 

3 consolidated report the funding source for 

4 the child care provided to each family. 

5 ‘‘(C) WAIVER OF REPORTING REQUIRE6 MENT.—The Secretary may grant a State a 

7 waiver from the requirement to comply with 

8 subparagraph (A) if— 

9 ‘‘(i) the Secretary determines that the 

10 State has demonstrated that it would be 

11 administratively or financially burdensome 

12 for the State to comply with such subpara13 graph; and 

14 ‘‘(ii) in the case of a State, the State 

15 agrees to post on a quarterly basis on the 

16 website of the State such information as 

17 the State may have regarding the charac18 teristics of the families that received child 

19 care that was funded in whole or in part 

20 with funds provided under this part. 

21 ‘‘(D) APPLICABILITY.—Subparagraph (A) 

22 shall apply to a State on and after the first fis23 cal quarter that begins on or after 2 years after 

24 the date of enactment of the Personal Responsi-
132 

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1 bility and Individual Development for Everyone 

2 Act.’’. 

3 (e) REGULATIONS.—Paragraph (8) of section 411(a) 

4 (42 U.S.C. 611(a)), as redesignated by subsection (d)(1), 

5 is amended— 

6 (1) by inserting ‘‘and to collect the necessary 

7 data’’ before ‘‘with respect to which reports’’; 

8 (2) by striking ‘‘subsection’’ and inserting ‘‘sec9 tion’’; and 

10 (3) by striking ‘‘in defining the data elements’’ 

11 and all that follows and inserting ‘‘, the National 

12 Governors’ Association, the American Public Human 

13 Services Association, the National Conference of 

14 State Legislatures, and others in defining the data 

15 elements.’’. 

16 (f) ADDITIONAL REPORTS BY STATES.—Section 411 

17 (42 U.S.C. 611) is amended— 

18 (1) by redesignating subsection (b) as sub19 section (e); and 

20 (2) by inserting after subsection (a) the fol21 lowing: 

22 ‘‘(b) ANNUAL REPORTS ON PROGRAM CHARACTERIS23 TICS.—Not later than 90 days after the end of fiscal year 

24 2006 and each succeeding fiscal year, each eligible State 

25 shall submit to the Secretary a report on the characteris-
133 

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1 tics of State programs funded under this part and other 

2 State programs funded with qualified State expenditures 

3 (as defined in section 409(a)(7)(B)(i)). The report shall 

4 include, with respect to each such program, the program 

5 name, a description of program activities, the program 

6 purpose, the program eligibility criteria, the sources of 

7 program funding, the number of program beneficiaries, 

8 sanction policies, and any program work requirements. 

9 ‘‘(c) MONTHLY REPORTS ON CASELOAD.—Not later 

10 than 3 months after the end of each calendar month that 

11 begins 1 year or more after the date of enactment of this 

12 subsection, each eligible State shall submit to the Sec13 retary a report on the number of families and total num14 ber of individuals receiving assistance in the calendar 

15 month under the State program funded under this part 

16 and under other State programs funded with qualified 

17 State expenditures (as defined in section 409(a)(7)(B)(i)). 

18 ‘‘(d) ANNUAL REPORT ON PERFORMANCE IMPROVE19 MENT AND PROGRESS TOWARD UNIVERSAL ENGAGE20 MENT.—Beginning with fiscal year 2007, not later than 

21 January 1 of each fiscal year, each eligible State shall sub22 mit to the Secretary a report— 

23 ‘‘(1) on achievement and improvement during 

24 the preceding fiscal year under the performance 

25 goals and measures under the State program funded 
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1 under this part or with qualified State expenditures 

2 (as defined in section 409(a)(7)(B)(i)) with respect 

3 to each of the matters described in section 

4 402(a)(1)(A)(v); and 

5 ‘‘(2) that details State progress toward full en6 gagement for all adult or minor child head of house7 hold recipients of assistance.’’. 

8 (g) ANNUAL REPORTS TO CONGRESS BY THE SEC9 RETARY.—Section 411(e) (42 U.S.C. 611(e)), as so redes10 ignated by subsection (f) of this section, is amended— 

11 (1) in the matter preceding paragraph (1), by 

12 striking ‘‘and each fiscal year thereafter’’ and insert13 ing ‘‘and not later than July 1 of each fiscal year 

14 thereafter’’; 

15 (2) in paragraph (2), by striking ‘‘families ap16 plying for assistance,’’ and by striking the last 

17 comma; and 

18 (3) in paragraph (3), by inserting ‘‘and other 

19 programs funded with qualified State expenditures 

20 (as defined in section 409(a)(7)(B)(i))’’ before the 

21 semicolon. 

22 SEC. 113. DIRECT FUNDING AND ADMINISTRATION BY IN23 DIAN TRIBES. 

24 (a) FUNDING FOR TRIBAL TANF PROGRAMS.— 
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1 (1) REAUTHORIZATION OF TRIBAL FAMILY AS2 SISTANCE GRANTS.—Section 412(a)(1)(A) (42 

3 U.S.C. 612(a)(1)(A)) is amended by striking ‘‘1997, 

4 1998, 1999, 2000, 2001, 2002, and 2003’’ and in5 serting ‘‘2006 through 2010’’. 

6 (2) GRANTS FOR INDIAN TRIBES THAT RE7 CEIVED JOBS FUNDS.—Section 412(a)(2) (42 U.S.C. 

8 612(a)(2)) is amended— 

9 (A) by striking subparagraph (A) and in10 serting the following: 

11 ‘‘(A) GRANT AUTHORITY.—For each of fis12 cal years 2006 through 2010, the Secretary 

13 shall pay to each eligible Indian tribe that pro14 poses to operate a program described in sub15 paragraph (C), a grant in an amount that bears 

16 the same ratio to the amount specified in sub17 paragraph (D) of this paragraph as the amount 

18 required to be paid to the tribe under this para19 graph for fiscal year 2004 bears to the total 

20 amount required to be paid under this para21 graph for such fiscal year.’’; and 

22 (B) in subparagraph (D), by striking 

23 ‘‘$7,633,287’’ and inserting ‘‘$12,633,287’’. 
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1 (b) TRIBAL WELFARE PROGRAMS.—Section 412(a) 

2 (42 U.S.C. 612(a)) is amended by adding at the end the 

3 following: 

4 ‘‘(4) TRIBAL IMPROVEMENT GRANTS.— 

5 ‘‘(A) TRIBAL CAPACITY GRANTS.— 

6 ‘‘(i) IN GENERAL.—Of the amount ap7 propriated under subparagraph (D) for the 

8 period of fiscal years 2006 through 2010, 

9 $40,000,000 shall be used by the Secretary 

10 to award grants for tribal human services 

11 program infrastructure improvement (as 

12 defined in clause (v)) to— 

13 ‘‘(I) Indian tribes that have ap14 plied for approval of a tribal family 

15 assistance plan and that meet the re16 quirements of clause (ii)(I); 

17 ‘‘(II) Indian tribes with an ap18 proved tribal family assistance plan 

19 and that meet the requirements of 

20 clause (ii)(II); and 

21 ‘‘(III) Indian tribes that have ap22 plied for approval of a foster care and 

23 adoption assistance program under 

24 section 479B or that plan to enter 

25 into, or have in place, a tribal-State 
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1 cooperative agreement under section 

2 479B(c) and that meet the require3 ments of clause (ii)(III). 

4 ‘‘(ii) PRIORITIES FOR AWARDING OF

5 GRANTS.—The Secretary shall give priority 

6 in awarding grants under this subpara7 graph as follows: 

8 ‘‘(I) First, for grants to Indian 

9 tribes that have applied for approval 

10 of a tribal family assistance plan, that 

11 have not operated such a plan as of 

12 the date of enactment of the Personal 

13 Responsibility and Individual Develop14 ment for Everyone Act that will have 

15 such plan approved, and that include 

16 in the plan submission provisions for 

17 tribal human services program infra18 structure improvement (as so defined) 

19 and related management information 

20 systems training. 

21 ‘‘(II) Second, for Indian tribes 

22 with an approved tribal family assist23 ance plan that are not described in 

24 subclause (I) and that submit an ad25 dendum to such plan that includes 
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1 provisions for tribal human services 

2 program infrastructure improvement 

3 that includes implementing or improv4 ing management information systems 

5 of the tribe (including management 

6 information systems training), as such 

7 systems relate to the operation of the 

8 tribal family assistance plan. 

9 ‘‘(III) Third, for Indian tribes 

10 that have applied for approval of a 

11 foster care and adoption assistance 

12 program under section 479B or that 

13 plan to enter into, or have in place, a 

14 tribal-State cooperative agreement 

15 under section 479B(c) and that in16 clude in the plan submission under 

17 section 471 (or in an addendum to 

18 such plan) provisions for tribal human 

19 services program infrastructure im20 provement (as so defined) and related 

21 management information systems 

22 training. 

23 ‘‘(iii) OTHER REQUIREMENTS FOR

24 AWARDING GRANTS.—In awarding grants 

25 under this subparagraph, the Secretary— 
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1 ‘‘(I) may not award an Indian 

2 tribe more than 1 grant under this 

3 subparagraph per fiscal year; 

4 ‘‘(II) shall award grants in such 

5 a manner as to maximize the number 

6 of Indian tribes that receive grants 

7 under this subparagraph; and 

8 ‘‘(III) shall consult with Indian 

9 tribes located throughout the United 

10 States. 

11 ‘‘(iv) APPLICATION.—An Indian tribe 

12 desiring a grant under this subparagraph 

13 shall submit an application to the Sec14 retary, at such time, in such manner, and 

15 containing such information as the Sec16 retary may require. 

17 ‘‘(v) DEFINITION OF HUMAN SERV18 ICES PROGRAM INFRASTRUCTURE IM19 PROVEMENT.—In this subparagraph, the 

20 term ‘human services program infrastruc21 ture improvement’ includes (but is not lim22 ited to) improvement of management infor23 mation systems, management information 

24 systems-related training, equipping offices, 

25 and renovating, but not constructing, 
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1 buildings, as described in an application 

2 for a grant under this subparagraph, and 

3 subject to approval by the Secretary. 

4 ‘‘(B) TRIBAL DEVELOPMENT GRANTS.— 

5 ‘‘(i) IN GENERAL.—Of the amount ap6 propriated under subparagraph (D) for the 

7 period of fiscal years 2006 through 2010, 

8 $35,000,000 shall be used by the Secretary 

9 to award, through the Commissioner of the 

10 Administration for Native Americans, 

11 grants to nonprofit organizations, Indian 

12 tribes, and tribal organizations to enable 

13 such organizations and tribes to provide 

14 technical assistance to Indian tribes and 

15 tribal organizations in any or all of the fol16 lowing areas: 

17 ‘‘(I) The development and im18 provement of uniform commercial 

19 codes. 

20 ‘‘(II) The creation or expansion 

21 of small business or microenterprise 

22 programs. 

23 ‘‘(III) The development and im24 provement of tort liability codes. 
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1 ‘‘(IV) The creation or expansion 

2 of tribal marketing efforts. 

3 ‘‘(V) The creation or expansion 

4 of for-profit collaborative business 

5 networks. 

6 ‘‘(VI) The development of inno7 vative uses of telecommunications to 

8 assist with distance learning or tele9 commuting. 

10 ‘‘(VII) The development of eco11 nomic opportunities and job creation 

12 in areas of high joblessness (as de13 fined in section 408(a)(7)(D)). 

14 ‘‘(ii) REQUIREMENTS.— 

15 ‘‘(I) IN GENERAL.—At least an 

16 amount equal to 30 percent of the 

17 total amount of grants awarded under 

18 this subparagraph shall be awarded to 

19 carry out clause (i)(VII). 

20 ‘‘(II) CONSULTATION.—In 

21 awarding grants under this subpara22 graph the Secretary shall consult with 

23 other Federal agencies with expertise 

24 in the areas described in clause (i). 
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1 ‘‘(iii) APPLICATION.—A nonprofit or2 ganization, Indian tribe, or tribal organiza3 tion desiring a grant under this subpara4 graph shall submit an application to the 

5 Secretary at such time, in such manner, 

6 and containing such information as the 

7 Secretary may require. 

8 ‘‘(C) TECHNICAL ASSISTANCE.— 

9 ‘‘(i) IN GENERAL.—Of the amount ap10 propriated under subparagraph (D) for the 

11 period of fiscal years 2006 through 2010, 

12 $5,000,000 shall be used by the Secretary 

13 for making grants, or entering into con14 tracts, to provide technical assistance to 

15 Indian tribes— 

16 ‘‘(I) in applying for or carrying 

17 out a grant made under this para18 graph; 

19 ‘‘(II) in applying for or carrying 

20 out a tribal family assistance plan 

21 under this section; or 

22 ‘‘(III) related to best practices 

23 and approaches for State and tribal 

24 coordination on the transfer of the ad-
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1 ministration of social services pro2 grams to Indian tribes. 

3 ‘‘(ii) RESERVATION OF FUNDS.—Not 

4 less than— 

5 ‘‘(I) $2,500,000 of the amount 

6 described in clause (i) shall be used by 

7 the Secretary to support, through 

8 grants or contracts, peer-learning pro9 grams among tribal administrators; 

10 and 

11 ‘‘(II) $1,000,000 of such amount 

12 shall be used by the Secretary for 

13 making grants to Indian tribes to con14 duct feasibility studies of the capacity 

15 of Indian tribes to operate tribal fam16 ily assistance plans under this part or 

17 foster care and adoption assistance 

18 programs under section 479B. 

19 ‘‘(D) APPROPRIATION.—Out of any money 

20 in the Treasury of the United States not other21 wise appropriated, there is appropriated 

22 $80,000,000 for the period of fiscal years 2006 

23 through 2010 to carry out this paragraph. 

24 Amounts appropriated under this subparagraph 

25 shall remain available until expended.’’. 
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1 (c) CLARIFICATION OF APPLICATION OF INDIAN EM2 PLOYMENT, TRAINING AND RELATED SERVICES DEM3 ONSTRATION ACT OF 1992.—Section 412 (42 U.S.C.612) 

4 is amended by adding at the end the following: 

5 ‘‘(j) APPLICATION OF INDIAN EMPLOYMENT, TRAIN6 ING AND RELATED SERVICES DEMONSTRATION ACT OF

7 1992.—Notwithstanding any other provision of law, if an 

8 Indian tribe elects to incorporate the services it provides 

9 using funds made available under this part into a plan 

10 under section 6 of the Indian Employment, Training and 

11 Related Services Demonstration Act of 1992 (25 U.S.C. 

12 3405), the programs authorized to be conducted with such 

13 funds shall be— 

14 ‘‘(1) considered to be programs subject to sec15 tion 5 of the Indian Employment, Training and Re16 lated Services Demonstration Act of 1992 (25 

17 U.S.C. 3404); and 

18 ‘‘(2) subject to the single plan and single budg19 et requirements of section 6 of that Act (25 U.S.C. 

20 3505) and the single report format required under 

21 section 11 of that Act (25 U.S.C. 3410).’’. 

22 (d) ENSURING EQUITABLE ACCESS.— 

23 (1) STATE PLAN REQUIREMENT.—Section 

24 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as amended 
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1 by section 101(a)(1)(B) is amended by adding at the 

2 end the following: 

3 ‘‘(viii) The document shall describe 

4 how the State will ensure equitable access 

5 to benefits and services provided under the 

6 program for each member of an Indian 

7 tribe or tribal organization, who is domi8 ciled in the State and is not eligible for as9 sistance under a tribal family assistance 

10 plan approved under section 412.’’. 

11 (2) TRIBAL FAMILY ASSISTANCE PLAN RE12 QUIREMENT.—Section 412(b)(1) of the Social Secu13 rity Act (42 U.S.C. 612(b)(1)) is amended— 

14 (A) in subparagraph (E), by striking 

15 ‘‘and’’ at the end; 

16 (B) in subparagraph (F), by striking the 

17 period and inserting ‘‘; and’’; and 

18 (C) by adding at the end the following: 

19 ‘‘(G) describes how the Indian tribe will 

20 ensure equitable access to benefits and services 

21 provided under the plan for each member of the 

22 population to be served by the plan.’’. 

23 (3) CONSULTATION BETWEEN STATES AND IN24 DIAN TRIBES OR OTHER INDIANS RESIDING ON A

25 RESERVATION.—Section 402(a)(5) (42 U.S.C. 
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1 602(a)(5)) is amended by striking ‘‘will’’ and all 

2 that follows through the period and inserting ‘‘will— 

3 ‘‘(A) consult with each Indian tribe and 

4 tribal organization located within the State re5 garding the State plan in order to ensure equi6 table access to benefits and services provided 

7 under the plan for any member of such a tribe 

8 or organization who is not eligible for assistance 

9 under a tribal family assistance plan approved 

10 under section 412; and 

11 ‘‘(B) provide each member of an Indian 

12 tribe or tribal organization, who is domiciled in 

13 the State and is not eligible for assistance 

14 under a tribal family assistance plan approved 

15 under section 412, with equitable access to as16 sistance under the State program funded under 

17 this part attributable to funds provided by the 

18 Federal Government.’’. 

19 (e) ANNUAL REPORT TO CONGRESS.— 

20 (1) INCLUSION OF INFORMATION ON INDIANS

21 SERVED BY STATE PROGRAMS.—Section 411(e) (42 

22 U.S.C. 611(e)), as redesignated by section 112(f)(1), 

23 is amended— 

24 (A) in paragraph (3), by striking ‘‘and’’ at 

25 the end; 
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1 (B) in paragraph (4), by striking the pe2 riod and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(5) State specific information on the demo5 graphics and caseload characteristics of Indians 

6 served by each State program funded under this 

7 part or with qualified State expenditures (as defined 

8 in section 409(a)(7)(B)(i)).’’. 

9 (2) CONFORMING AMENDMENTS.—Section 

10 411(a) of the Social Security Act (42 U.S.C. 

11 611(a)), as amended by section 112(d), is amend12 ed— 

13 (A) by redesignating paragraph (8) as 

14 paragraph (9); and 

15 (B) by inserting after paragraph (7), the 

16 following: 

17 ‘‘(8) REPORT ON INDIANS SERVED BY THE

18 STATE PROGRAM.—The report required by para19 graph (1) for a fiscal quarter shall include informa20 tion on the demographics and caseload characteris21 tics of Indians served by each State program funded 

22 under this part or with qualified State expenditures 

23 (as defined in section 409(a)(7)(B)(i)) during the 

24 quarter.’’. 

25 (g) GAO STUDY AND REPORT.— 
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1 (1) STUDY.—The Comptroller General of the 

2 United States shall conduct a study of the demo3 graphics of Indians who do not— 

4 (A) reside in Indian country (as defined in 

5 section 1151 of title 18, United States Code); 

6 (B) reside in Alaska; or 

7 (C) receive assistance under a tribal family 

8 assistance plan under section 412 of the Social 

9 Security Act (42 U.S.C. 612). 

10 (2) REQUIREMENT.—The study conducted 

11 under subparagraph (A) shall include economic and 

12 health information regarding the Indians described 

13 in that paragraph, as well as information regarding 

14 the access of all Indians to benefits or services avail15 able under non-tribal publicly funded programs serv16 ing low-income families. 

17 (3) REPORT.—Not later than January 1, 2007, 

18 the Comptroller General shall submit to Congress a 

19 report on the study conducted under paragraph (1). 

20 SEC. 114. RESEARCH, EVALUATIONS, AND NATIONAL STUD21 IES. 

22 (a) SECRETARY’S FUND FOR RESEARCH, DEM23 ONSTRATIONS, AND TECHNICAL ASSISTANCE.— 
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1 (1) IN GENERAL.—Section 413 (42 U.S.C. 

2 613), as amended by section 103(c), is amended by 

3 adding at the end the following: 

4 ‘‘(m) FUNDING FOR RESEARCH, DEMONSTRATIONS, 

5 AND TECHNICAL ASSISTANCE.— 

6 ‘‘(1) APPROPRIATION.— 

7 ‘‘(A) IN GENERAL.—Out of any money in 

8 the Treasury of the United States not otherwise 

9 appropriated, there are appropriated 

10 $100,000,000 for each of fiscal years 2005 

11 through 2010, which shall remain available to 

12 the Secretary until expended. 

13 ‘‘(B) USE OF FUNDS.— 

14 ‘‘(i) IN GENERAL.—Funds appro15 priated under subparagraph (A) shall be 

16 used for the purpose of— 

17 ‘‘(I) conducting or supporting re18 search and demonstration projects by 

19 public or private entities; or 

20 ‘‘(II) providing technical assist21 ance in connection with a purpose of 

22 the program funded under this part, 

23 as described in section 401(a), to 

24 States, Indian tribal organizations, 
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1 sub-State entities, and such other en2 tities as the Secretary may specify. 

3 ‘‘(ii) REQUIREMENT.—Not less than 

4 80 percent of the funds appropriated under 

5 subparagraph (A) for a fiscal year shall be 

6 expended for the purpose of conducting or 

7 supporting research and demonstration 

8 projects, or for providing technical assist9 ance, in connection with activities de10 scribed in section 403(a)(2)(B). Funds ap11 propriated under subparagraph (A) and ex12 pended in accordance with this clause shall 

13 be in addition to any other funds made 

14 available under this part for activities de15 scribed in section 403(a)(2)(B). 

16 ‘‘(2) SECRETARY’S AUTHORITY.—The Secretary 

17 may conduct activities authorized by this subsection 

18 directly or through grants, contracts, or interagency 

19 agreements with public or private entities. 

20 ‘‘(3) REQUIREMENT FOR USE OF FUNDS.—The 

21 Secretary shall not pay any funds appropriated 

22 under paragraph (1)(A) to an entity for the purpose 

23 of conducting or supporting research and demonstra24 tion projects involving activities described in section 
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1 403(a)(2)(B) unless the entity complies with the re2 quirements of section 403(a)(2)(E).’’. 

3 (2) EFFECTIVE DATE.—The amendment made 

4 by paragraph (1) shall take effect on the date of en5 actment of this Act. 

6 (b) FUNDING OF STUDIES AND DEMONSTRATIONS.— 

7 Section 413(h)(1) (42 U.S.C. 613(h)(1)) is amended in 

8 the matter preceding subparagraph (A) by striking ‘‘1997 

9 through 2002’’ and inserting ‘‘2006 through 2010’’. 

10 (c) PROGRAM COORDINATION DEMONSTRATION

11 PROJECTS.— 

12 (1) PURPOSE.—The purpose of this subsection 

13 is to establish a program of demonstration projects 

14 in a State or portion of a State to coordinate assist15 ance provided under qualified programs for the pur16 pose of supporting working individuals and families, 

17 helping families escape welfare dependency, pro18 moting child well-being, or helping build stronger 

19 families, using innovative approaches to strengthen 

20 service systems and provide more coordinated and 

21 effective service delivery. 

22 (2) DEFINITIONS.—In this subsection: 

23 (A) QUALIFIED PROGRAM.—The term 

24 ‘‘qualified program’’ means— 
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1 (i) a program under part A of title IV 

2 of the Social Security Act (42 U.S.C. 601 

3 et seq.); 

4 (ii) the program under title XX of the 

5 Social Security Act (42 U.S.C. 1397 et 

6 seq.); and 

7 (iii) child care assistance funded 

8 under section 418 of the Social Security 

9 Act (42 U.S.C. 618). 

10 (B) SECRETARY.—The term ‘‘Secretary’’ 

11 means the Secretary of Health and Human 

12 Services. 

13 (3) APPLICATION REQUIREMENTS.—The head 

14 of a State entity or of a sub-State entity admin15 istering 2 or more qualified programs proposed to be 

16 included in a demonstration project under this sub17 section shall (or, if the project is proposed to include 

18 qualified programs administered by 2 or more such 

19 entities, the heads of the administering entities 

20 (each of whom shall be considered an applicant for 

21 purposes of this subsection) shall jointly) submit to 

22 the Secretary an application that contains the fol23 lowing: 

24 (A) PROGRAMS INCLUDED.—A statement 

25 identifying each qualified program to be in-
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1 cluded in the project, and describing how the 

2 purposes of each such program will be achieved 

3 by the project. 

4 (B) POPULATION SERVED.—A statement 

5 identifying the population to be served by the 

6 project and specifying the eligibility criteria to 

7 be used. 

8 (C) DESCRIPTION AND JUSTIFICATION.—A 

9 detailed description of the project, including— 

10 (i) a description of how the project is 

11 expected to improve or enhance achieve12 ment of the purposes of the programs to 

13 be included in the project, from the stand14 point of quality, of cost-effectiveness, or of 

15 both; and 

16 (ii) a description of the performance 

17 objectives for the project, including any 

18 proposed modifications to the performance 

19 measures and reporting requirements used 

20 in the programs. 

21 (D) WAIVERS REQUESTED.—A description 

22 of the statutory and regulatory requirements 

23 with respect to which a waiver is requested in 

24 order to carry out the project, and a justifica25 tion of the need for each such waiver. 
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1 (E) COST NEUTRALITY.—Such information 

2 and assurances as necessary to establish to the 

3 satisfaction of the Secretary, in consultation 

4 with the Director of the Office of Management 

5 and Budget, that the proposed project is rea6 sonably expected to meet the applicable cost 

7 neutrality requirements of paragraph (4)(E). 

8 (F) EVALUATION AND REPORTS.—An as9 surance that the applicant will— 

10 (i) obtain an evaluation by an inde11 pendent contractor of the effectiveness of 

12 the project using an evaluation design that, 

13 to the maximum extent feasible, includes 

14 random assignment of clients (or entities 

15 serving such clients) to service delivery and 

16 control groups; and 

17 (ii) make interim and final reports to 

18 the Secretary, at such times and in such 

19 manner as the Secretary may require. 

20 (G) OTHER INFORMATION AND ASSUR21 ANCES.—Such other information and assur22 ances as the Secretary may require. 

23 (4) APPROVAL OF APPLICATIONS.— 

24 (A) IN GENERAL.—The Secretary with re25 spect to a qualified program that is identified 
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1 in an application submitted pursuant to sub2 section (c) may approve the application and, ex3 cept as provided in subparagraph (B), waive 

4 any requirement applicable to the program, to 

5 the extent consistent with this subsection and 

6 necessary and appropriate for the conduct of 

7 the demonstration project proposed in the appli8 cation, if the Secretary determines that the 

9 project— 

10 (i) has a reasonable likelihood of 

11 achieving the objectives of the programs to 

12 be included in the project; 

13 (ii) may reasonably be expected to 

14 meet the applicable cost neutrality require15 ments of subparagraph (E), as determined 

16 by the Director of the Office of Manage17 ment and Budget; 

18 (iii) includes the coordination of 2 or 

19 more qualified programs; and 

20 (iv) provides for an independent eval21 uation that includes random assignment to 

22 the maximum extent feasible, as described 

23 in paragraph (3)(F), and which the Sec24 retary determines to be appropriate for as25 sessing the effectiveness of the project. 
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1 (B) PROVISIONS EXCLUDED FROM WAIVER

2 AUTHORITY.—A waiver shall not be granted 

3 under subparagraph (A)— 

4 (i) with respect to any provision of 

5 law relating to— 

6 (I) civil rights or prohibition of 

7 discrimination; 

8 (II) purposes or goals of any pro9 gram; 

10 (III) maintenance of effort re11 quirements; 

12 (IV) health, safety, or a licensing 

13 requirement; 

14 (V) requirements relating to the 

15 use of financial assistance for activi16 ties to improve the quality and avail17 ability of child care; 

18 (VI) report and audit require19 ments of the Child Care and Develop20 ment Block Grant Act of 1990 (42 

21 U.S.C. 9858 et seq.); 

22 (VII) requirements of that Act 

23 that limit what financial assistance 

24 shall be expended for; 
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1 (VIII) the State plan and State 

2 application requirements specified in 

3 section 658E of that Act (42 U.S.C. 

4 9858c); 

5 (IX) labor standards under the 

6 Fair Labor Standards Act of 1938; or 

7 (X) environmental protection; 

8 (ii) in the case of child care assistance 

9 funded under section 418 of the Social Se10 curity Act (42 U.S.C. 618), with respect to 

11 the requirement under the first sentence of 

12 subsection (b)(1) of that section that funds 

13 received by a State under that section shall 

14 only be used to provide child care assist15 ance; 

16 (iii) with respect to any requirement 

17 that a State pass through to a sub-State 

18 entity part or all of an amount paid to the 

19 State; 

20 (iv) if the waiver would waive any 

21 funding restriction or limitation provided 

22 in an appropriations Act, or would have 

23 the effect of transferring appropriated 

24 funds from 1 appropriations account to an25 other; or 
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1 (v) except as otherwise provided by 

2 statute, if the waiver would waive any 

3 funding restriction applicable to a program 

4 authorized under an Act which is not an 

5 appropriations Act (but not including pro6 gram requirements such as application 

7 procedures, performance standards, report8 ing requirements, or eligibility standards), 

9 or would have the effect of transferring 

10 funds from a program for which there is 

11 direct spending (as defined in section 

12 250(c)(8) of the Balanced Budget and 

13 Emergency Deficit Control Act of 1985) to 

14 another program. 

15 (C) 10 STATE LIMITATION.—The Director 

16 of the Office of Management and Budget shall 

17 establish a procedure for ensuring that not 

18 more than 10 States (including any portion of 

19 a State) conduct a demonstration project under 

20 this subsection. 

21 (D) AGREEMENT OF SECRETARY RE22 QUIRED.— 

23 (i) IN GENERAL.—An applicant may 

24 not conduct a demonstration project under 

25 this subsection unless the Secretary, with 
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1 respect to each qualified program proposed 

2 to be included in the project, has approved 

3 the application to conduct the project. 

4 (ii) AGREEMENT WITH RESPECT TO

5 FUNDING AND IMPLEMENTATION.—Before 

6 approving an application to conduct a dem7 onstration project under this subsection, 

8 the Secretary shall have in place an agree9 ment with the applicant with respect to the 

10 payment of funds and responsibilities re11 quired of the Secretary with respect to the 

12 project. 

13 (E) COST-NEUTRALITY REQUIREMENT.— 

14 (i) GENERAL RULE.—Notwithstanding 

15 any other provision of law (except as pro16 vided in clause (ii)), the total of the 

17 amounts that may be paid by the Federal 

18 Government for a fiscal year with respect 

19 to the programs in the State in which an 

20 entity conducting a demonstration project 

21 under this subsection is located that are 

22 affected by the project shall not exceed the 

23 estimated total amount that the Federal 

24 Government would have paid for the fiscal 

25 year with respect to the programs if the 
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1 project had not been conducted, as deter2 mined by the Director of the Office of 

3 Management and Budget. 

4 (ii) SPECIAL RULE.—If an applicant 

5 submits to the Director of the Office of 

6 Management and Budget a request to 

7 apply the rules of this clause to the pro8 grams in the State in which the applicant 

9 is located that are affected by a dem10 onstration project proposed in an applica11 tion submitted by the applicant pursuant 

12 to this section, during such period of not 

13 more than 5 consecutive fiscal years in 

14 which the project is in effect, and the Di15 rector determines, on the basis of sup16 porting information provided by the appli17 cant, to grant the request, then, notwith18 standing any other provision of law, the 

19 total of the amounts that may be paid by 

20 the Federal Government for the period 

21 with respect to the programs shall not ex22 ceed the estimated total amount that the 

23 Federal Government would have paid for 

24 the period with respect to the programs if 

25 the project had not been conducted. 
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1 (F) 90-DAY APPROVAL DEADLINE.— 

2 (i) IN GENERAL.—If the Secretary re3 ceives an application to conduct a dem4 onstration project under this subsection 

5 and does not disapprove the application 

6 within 90 days after the receipt, then, sub7 ject to the 10 State limitation under para8 graph (3)— 

9 (I) the Secretary is deemed to 

10 have approved the application for such 

11 period as is requested in the applica12 tion, except to the extent inconsistent 

13 with paragraph (5); and 

14 (II) any waiver requested in the 

15 application which applies to a quali16 fied program that is identified in the 

17 application and is administered by the 

18 Secretary is deemed to be granted, ex19 cept to the extent inconsistent with 

20 subparagraph (B) or (E) of this para21 graph. 

22 (ii) DEADLINE EXTENDED IF ADDI23 TIONAL INFORMATION IS SOUGHT.—The 

24 90-day period referred to in clause (i) shall 

25 not include any period that begins with the 
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1 date the Secretary requests the applicant 

2 to provide additional information with re3 spect to the application and ends with the 

4 date the additional information is provided. 

5 (5) DURATION OF PROJECTS.—A demonstration 

6 project under this subsection may be approved for a 

7 term of not more than 5 years. 

8 (6) REPORTS TO CONGRESS.— 

9 (A) REPORT ON DISPOSITION OF APPLICA10 TIONS.—Within 90 days after the date the Sec11 retary receives an application submitted pursu12 ant to this subsection, the Secretary shall sub13 mit to the Committee on Finance of the Senate 

14 and the Committee on Ways and Means of the 

15 House of Representatives notice of the receipt, 

16 a description of the decision of the Secretary 

17 with respect to the application, and the reasons 

18 for approving or disapproving the application. 

19 (B) REPORTS ON PROJECTS.—The Sec20 retary shall provide annually to Congress a re21 port concerning demonstration projects ap22 proved under this subsection, including— 

23 (i) the projects approved for each ap24 plicant; 
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1 (ii) the number of waivers granted 

2 under this subsection, and the specific 

3 statutory provisions waived; 

4 (iii) how well each project for which a 

5 waiver is granted is improving or enhanc6 ing program achievement from the stand7 point of quality, cost-effectiveness, or both; 

8 (iv) how well each project for which a 

9 waiver is granted is meeting the perform10 ance objectives specified in paragraph 

11 (3)(C)(ii); 

12 (v) how each project for which a waiv13 er is granted is conforming with the cost14 neutrality requirements of paragraph 

15 (4)(E); and 

16 (vi) to the extent the Secretary deems 

17 appropriate, recommendations for modi18 fication of programs based on outcomes of 

19 the projects. 

20 (d) RESEARCH ON INDICATORS OF CHILD WELL21 BEING.—Section 413 (42 U.S.C. 613), as amended by 

22 subsection (a)(1), is amended by adding at the end the 

23 following: 

24 ‘‘(n) INDICATORS OF CHILD WELL-BEING.— 
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1 ‘‘(1) IN GENERAL.—The Secretary, through 

2 grants, contracts, or interagency agreements shall 

3 develop comprehensive indicators to assess child 

4 well-being in each State. 

5 ‘‘(2) REQUIREMENTS.— 

6 ‘‘(A) IN GENERAL.—The indicators devel7 oped under paragraph (1) shall include meas8 ures related to the following: 

9 ‘‘(i) Education. 

10 ‘‘(ii) Social and emotional develop11 ment. 

12 ‘‘(iii) Health and safety. 

13 ‘‘(iv) Family well-being, such as fam14 ily structure, income, employment, child 

15 care arrangements, and family relation16 ships. 

17 ‘‘(B) OTHER REQUIREMENTS.—The data 

18 collected with respect to the indicators devel19 oped under paragraph (1) shall be— 

20 ‘‘(i) statistically representative at the 

21 State level; 

22 ‘‘(ii) consistent across States; 

23 ‘‘(iii) collected on an annual basis for 

24 at least the 5 years following the first year 

25 of collection; 
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1 ‘‘(iv) expressed in terms of rates or 

2 percentages; 

3 ‘‘(v) statistically representative at the 

4 national level; 

5 ‘‘(vi) measured with reliability; 

6 ‘‘(vii) current; 

7 ‘‘(viii) over-sampled, with respect to 

8 low-income children and families; and 

9 ‘‘(ix) made publicly available. 

10 ‘‘(C) CONSULTATION.—In developing the 

11 indicators required under paragraph (1) and 

12 the means to collect the data required with re13 spect to the indicators, the Secretary shall con14 sult and collaborate with the Federal Inter15 agency Forum on Child and Family Statistics. 

16 ‘‘(3) ADVISORY PANEL.— 

17 ‘‘(A) ESTABLISHMENT.—The Secretary 

18 shall establish an advisory panel to make rec19 ommendations regarding the appropriate meas20 ures and statistical tools necessary for making 

21 the assessment required under paragraph (1) 

22 based on the indicators developed under that 

23 paragraph and the data collected with respect 

24 to the indicators. 

25 ‘‘(B) MEMBERSHIP.— 
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1 ‘‘(i) IN GENERAL.—The advisory 

2 panel established under subparagraph (A) 

3 shall consist of the following: 

4 ‘‘(I) One member appointed by 

5 the Secretary of Health and Human 

6 Services. 

7 ‘‘(II) One member appointed by 

8 the Chairman of the Committee on 

9 Ways and Means of the House of 

10 Representatives. 

11 ‘‘(III) One member appointed by 

12 the Ranking Member of the Com13 mittee on Ways and Means of the 

14 House of Representatives. 

15 ‘‘(IV) One member appointed by 

16 the Chairman of the Committee on 

17 Finance of the Senate. 

18 ‘‘(V) One member appointed by 

19 the Ranking Member of the Com20 mittee on Finance of the Senate. 

21 ‘‘(VI) One member appointed by 

22 the Chairman of the National Gov23 ernors Association, or the Chairman’s 

24 designee. 
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1 ‘‘(VII) One member appointed by 

2 the President of the National Con3 ference of State Legislatures or the 

4 President’s designee. 

5 ‘‘(VIII) One member appointed 

6 by the Director of the National Acad7 emy of Sciences, or the Director’s des8 ignee. 

9 ‘‘(ii) DEADLINE.—The members of 

10 the advisory panel shall be appointed not 

11 later than 2 months after the date of en12 actment of the Personal Responsibility and 

13 Individual Development for Everyone Act. 

14 ‘‘(C) MEETINGS.—The advisory panel es15 tablished under subparagraph (A) shall meet— 

16 ‘‘(i) at least 3 times during the first 

17 year after the date of enactment of the 

18 Personal Responsibility and Individual De19 velopment for Everyone Act; and 

20 ‘‘(ii) annually thereafter for the 3 suc21 ceeding years. 

22 ‘‘(4) APPROPRIATION.—Out of any money in 

23 the Treasury of the United States not otherwise ap24 propriated, there are appropriated for each of fiscal 
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1 years 2006 through 2010, $10,000,000 for the pur2 pose of carrying out this subsection.’’. 

3 (e) DOMESTIC VIOLENCE PREVENTION GRANTS.— 

4 Section 413 (42 U.S.C. 613), as amended by subsection 

5 (d), is amended by adding at the end the following: 

6 ‘‘(o) DOMESTIC VIOLENCE PREVENTION GRANTS.— 

7 ‘‘(1) IN GENERAL.—The Secretary shall award 

8 grants to eligible entities to enable such entities to 

9 carry out domestic violence prevention activities. In 

10 carrying out this subsection, the Secretary shall 

11 make public the criteria to be used by the Secretary 

12 for awarding such grants. 

13 ‘‘(2) ELIGIBILITY.—To be eligible to receive a 

14 grant under this subsection, an entity shall— 

15 ‘‘(A) be a State, Indian tribe or tribal or16 ganization, or nonprofit domestic violence pre17 vention organization; and 

18 ‘‘(B) submit to the Secretary an applica19 tion at such time, in such manner, and con20 taining such information as the Secretary may 

21 require. 

22 ‘‘(3) ACTIVITIES.—An entity shall use amounts 

23 received under a grant awarded under this sub24 section to— 
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1 ‘‘(A) develop and disseminate best prac2 tices for addressing domestic violence (as de3 fined in section 402(a)(7)(B)); 

4 ‘‘(B) implement voluntary skills programs 

5 on domestic violence as a barrier to economic 

6 security, including providing caseworker train7 ing, technical assistance, and voluntary services 

8 for victims of domestic violence; 

9 ‘‘(C) provide broad-based income support 

10 and supplementation strategies that provide in11 creased assistance to low-income working 

12 adults, such as housing, transportation, and 

13 transitional benefits as a means to reduce do14 mestic violence; or 

15 ‘‘(D) carry out programs to enhance rela16 tionship skills and financial management skills, 

17 to teach individuals how to control aggressive 

18 behavior, and to disseminate information on the 

19 causes of domestic violence and child abuse. 

20 ‘‘(4) MATCHING REQUIREMENT.—The Sec21 retary may not award a grant to an entity under 

22 this subsection unless the entity agrees that, with re23 spect to the costs to be incurred by the entity in car24 rying out the program for which the grant was 

25 awarded, the entity will make available (directly or 
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1 through donations from public or private entities) 

2 non-Federal contributions toward such costs in an 

3 amount equal to not less than 25 percent of such 

4 costs ($1 for each $3 of Federal funds provided 

5 under the grant). 

6 ‘‘(5) REQUIRED CONSULTATION.—The Sec7 retary may not award a grant to a State or an In8 dian tribe or tribal organization under this sub9 section unless such State, tribe, or tribal organiza10 tion agrees, in carrying out activities under the 

11 grant, to consult with National, State, local, or trib12 al organizations with demonstrated expertise in pro13 viding aid to victims of domestic violence. 

14 ‘‘(6) EVALUATION AND REPORT.—The Sec15 retary shall, by grant, contract, or interagency 

16 agreement, conduct an evaluation of the activities 

17 carried out with grants awarded under this sub18 section and shall submit a report to Congress on the 

19 results of such evaluation. 

20 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— 

21 There is authorized to be appropriated to carry out 

22 this subsection, $20,000,000 for each of fiscal years 

23 2006 through 2010.’’. 

24 (f) RESEARCH ON TRIBAL WELFARE PROGRAMS AND

25 POVERTY AMONG INDIANS.—Section 413 (42 U.S.C. 
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1 613), as amended by subsection (e), is amended by adding 

2 at the end the following: 

3 ‘‘(p) TRIBAL WELFARE PROGRAMS AND EFFORTS TO

4 REDUCE POVERTY AMONG INDIANS.— 

5 ‘‘(1) IN GENERAL.—The Secretary, directly or 

6 through grants, contracts, or interagency agree7 ments, shall conduct research on tribal family assist8 ance programs conducted under section 412 and 

9 other tribal welfare programs and on efforts to re10 duce poverty among Indians. 

11 ‘‘(2) PRIORITY FOR CERTAIN APPLICATIONS.— 

12 With respect to applications for grants under para13 graph (1), the Secretary shall give priority to appli14 cations to conduct research in cooperation with trib15 al governments or tribally controlled colleges or uni16 versities. 

17 ‘‘(3) TECHNICAL ASSISTANCE.—The Secretary 

18 may use funds appropriated under paragraph (4) to 

19 provide technical assistance concerning data report20 ing and collection with respect to research conducted 

21 under this subsection. 

22 ‘‘(4) APPROPRIATION.—Out of any money in 

23 the Treasury of the United States not otherwise ap24 propriated, there are appropriated $2,000,000 for 

25 fiscal year 2006 for the purpose of carrying out this 
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1 subsection. Funds appropriated under this para2 graph shall remain available to the Secretary until 

3 expended.’’. 

4 (g) REPORT ON ENFORCEMENT OF CERTAIN AFFI5 DAVITS OF SUPPORT AND SPONSOR DEEMING.—Not later 

6 than March 31, 2006, the Secretary of Health and Human 

7 Services, in consultation with the Attorney General, shall 

8 submit to the Congress a report on the enforcement of 

9 affidavits of support and sponsor deeming as required by 

10 sections 421, 422, and 432 of the Personal Responsibility 

11 and Work Opportunity Reconciliation Act of 1996. 

12 SEC. 115. STUDY BY THE CENSUS BUREAU. 

13 (a) IN GENERAL.—Section 414(a) (42 U.S.C. 

14 614(a)) is amended to read as follows: 

15 ‘‘(a) IN GENERAL.—The Bureau of the Census shall 

16 implement or enhance a longitudinal survey of program 

17 participation, developed in consultation with the Secretary 

18 and made available to interested parties, to allow for the 

19 assessment of the outcomes of continued welfare reform 

20 on the economic and child well-being of low-income fami21 lies with children, including those who received assistance 

22 or services from a State program funded under this part, 

23 and, to the extent possible, shall provide State representa24 tive samples. The content of the survey should include 

25 such information as may be necessary to examine the 
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1 issues of out-of-wedlock childbearing, marriage, welfare 

2 dependency and compliance with work requirements, the 

3 beginning and ending of spells of assistance, work, earn4 ings and employment stability, and the well-being of chil5 dren.’’. 

6 (b) REPORTS ON THE WELL-BEING OF CHILDREN

7 AND FAMILIES.—Section 414 (42 U.S.C. 614), as amend8 ed by subsection (a), is amended— 

9 (1) by redesignating subsection (b) as sub10 section (c); and 

11 (2) by inserting after subsection (a) the fol12 lowing: 

13 ‘‘(b) REPORTS ON THE WELL-BEING OF CHILDREN

14 AND FAMILIES.— 

15 ‘‘(1) IN GENERAL.—Not later than 24 months 

16 after the date of enactment of the Personal Respon17 sibility and Individual Development for Everyone 

18 Act, the Secretary of Commerce shall prepare and 

19 submit to the Committee on Finance of the Senate 

20 and the Committee on Ways and Means of the 

21 House of Representatives a report on the well-being 

22 of children and families using data collected under 

23 subsection (a). 

24 ‘‘(2) SECOND REPORT.—Not later than 60 

25 months after such date of enactment, the Secretary 
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1 of Commerce shall submit a second report to the 

2 Committee on Finance of the Senate and the Com3 mittee on Ways and Means of the House of Rep4 resentatives on the well-being of children and fami5 lies using data collected under subsection (a). 

6 ‘‘(3) INCLUSION OF COMPARABLE MEASURES.— 

7 Where comparable measures for data collected under 

8 subsection (a) exist in surveys previously adminis9 tered by the Bureau of the Census, appropriate com10 parisons shall be made and included in each report 

11 required under this subsection on the well-being of 

12 children and families to assess changes in such 

13 measures.’’. 

14 (c) APPROPRIATION.—Section 414(c) (42 U.S.C. 

15 614(c)), as redesignated by subsection (b)(1), is amended 

16 by striking ‘‘1996,’’ and all that follows through the period 

17 and inserting ‘‘2006 through 2010 for payment to the Bu18 reau of the Census to carry out this section. Funds appro19 priated under this subsection for a fiscal year shall remain 

20 available through fiscal year 2010 to carry out this sec21 tion.’’. 

22 SEC. 116. FUNDING FOR CHILD CARE. 

23 (a) INCREASE IN MANDATORY FUNDING.—Section 

24 418(a)(3) (42 U.S.C. 618(a)(3)) is amended— 
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1 (1) by striking ‘‘and’’ at the end of subpara2 graph (E); 

3 (2) by striking the period at the end of sub4 paragraph (F) and inserting ‘‘; and’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(G) $2,917,000,000 for each of fiscal 

7 years 2006 through 2010.’’. 

8 (b) RESERVATION OF CHILD CARE FUNDS.— 

9 (1) IN GENERAL.—Section 418(a)(4) (42 

10 U.S.C. 618(a)(4)) is amended to read as follows: 

11 ‘‘(4) AMOUNTS RESERVED.— 

12 ‘‘(A) INDIAN TRIBES AND TRIBAL ORGANI13 ZATIONS.— 

14 ‘‘(i) IN GENERAL.—The Secretary 

15 shall reserve 2 percent of the aggregate 

16 amount appropriated to carry out this sec17 tion for a fiscal year for payments to In18 dian tribes and tribal organizations for 

19 such fiscal year for the purpose of pro20 viding child care assistance. 

21 ‘‘(ii) APPLICATION OF CCDBG RE22 QUIREMENTS.—Payments made under this 

23 subparagraph shall be subject to the re24 quirements that apply to payments made 

25 to Indian tribes and tribal organizations 
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1 under the Child Care and Development 

2 Block Grant Act of 1990. 

3 ‘‘(B) TERRITORIES.— 

4 ‘‘(i) PUERTO RICO.—The Secretary 

5 shall reserve 1.5 percent of the amount ap6 propriated under paragraph (5)(A)(i) for a 

7 fiscal year for payments to the Common8 wealth of Puerto Rico for such fiscal year 

9 for the purpose of providing child care as10 sistance. 

11 ‘‘(ii) OTHER TERRITORIES.—The Sec12 retary shall reserve 0.5 percent of the 

13 amount appropriated under paragraph 

14 (5)(A)(i) for a fiscal year for payments to 

15 Guam, American Samoa, the Virgin Is16 lands of the United States, and the Com17 monwealth of the Northern Mariana Is18 lands in amounts which bear the same 

19 ratio to such amount as the amounts allot20 ted to such territories under section 658O 

21 of the Child Care and Development Block 

22 Grant Act of 1990 for the fiscal year bear 

23 to the total amount reserved under such 

24 section for that fiscal year. 
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1 ‘‘(iii) APPLICATION OF CCDBG RE2 QUIREMENTS.—Payments made under this 

3 subparagraph shall be subject to the re4 quirements that apply to payments made 

5 to territories under the Child Care and De6 velopment Block Grant Act of 1990.’’. 

7 (2) CONFORMING AMENDMENT.—Section 

8 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by 

9 section 108(b)(3), is amended by striking ‘‘or 

10 413(f)’’ and inserting ‘‘413(f), or 418(a)(4)(B)’’. 

11 (c) SUPPLEMENTAL GRANTS.—Section 418(a) (42 

12 U.S.C. 618(a)) is amended— 

13 (1) by redesignating paragraph (5) as para14 graph (7); and 

15 (2) by inserting after paragraph (4), the fol16 lowing: 

17 ‘‘(5) SUPPLEMENTAL GRANTS.— 

18 ‘‘(A) APPROPRIATION.— 

19 ‘‘(i) IN GENERAL.—For supplemental 

20 grants under this section, there are appro21 priated— 

22 ‘‘(I) $700,000,000 for fiscal year 

23 2006; 

24 ‘‘(II) $800,000,000 for fiscal 

25 year 2007; 
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1 ‘‘(III) $1,000,000,000 for fiscal 

2 year 2008; 

3 ‘‘(IV) $1,100,000,000 for fiscal 

4 year 2009; and 

5 ‘‘(V) $1,400,000,000 for fiscal 

6 year 2010. 

7 ‘‘(ii) AVAILABILITY.—Amounts appro8 priated under clause (i) for a fiscal year 

9 shall be in addition to amounts appro10 priated under paragraph (3) for such fiscal 

11 year and shall remain available for expend12 iture through fiscal year 2010. 

13 ‘‘(B) SUPPLEMENTAL GRANT.—In addition 

14 to the grants paid to a State under paragraphs 

15 (1) and (2) for each of fiscal years 2006 

16 through 2010, the Secretary, after reserving the 

17 amounts described in subparagraphs (A) and 

18 (B) of paragraph (4) and subject to the require19 ments described in paragraph (6), shall pay 

20 each State an amount which bears the same 

21 ratio to the amount specified in subparagraph 

22 (A)(i) for the fiscal year (after such reserva23 tions), as the amount allotted to the State 

24 under paragraph (2)(B) for fiscal year 2003 
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1 bears to the amount allotted to all States under 

2 that paragraph for such fiscal year. 

3 ‘‘(C) BUDGET SCORING.—Notwithstanding 

4 section 257(b)(2) of the Balanced Budget and 

5 Emergency Deficit Control Act of 1985, the 

6 baseline shall assume that no grant shall be 

7 made under this paragraph after fiscal year 

8 2010. 

9 ‘‘(6) REQUIREMENTS.— 

10 ‘‘(A) MAINTENANCE OF EFFORT.—A State 

11 may not be paid a supplemental grant under 

12 paragraph (5) for a fiscal year unless the State 

13 ensures that the level of State expenditures for 

14 child care for such fiscal year is not less than 

15 the sum of— 

16 ‘‘(i) the level of State expenditures for 

17 child care that were matched under a 

18 grant made to the State under paragraph 

19 (2) for fiscal year 2003; and 

20 ‘‘(ii) the level of State expenditures 

21 for child care that the State reported as 

22 maintenance of effort expenditures for pur23 poses of paragraph (2) for fiscal year 

24 2003. 
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1 ‘‘(B) MATCHING REQUIREMENT FOR FIS2 CAL YEARS 2009 AND 2010.—With respect to the 

3 amount of the supplemental grant made to a 

4 State under paragraph (5) for each of fiscal 

5 years 2009 and 2010 that is in excess of the 

6 amount of the grant made to the State under 

7 paragraph (5) for fiscal year 2008, subpara8 graph (C) of paragraph (2) shall apply to such 

9 excess amount in the same manner as such sub10 paragraph applies to grants made under sub11 paragraph (A) of paragraph (2) for each of fis12 cal years 2009 and 2010, respectively. 

13 ‘‘(C) REDISTRIBUTION.—In the case of a 

14 State that fails to satisfy the requirement of 

15 subparagraph (A) for a fiscal year, the supple16 mental grant determined under paragraph (5) 

17 for the State for that fiscal year shall be redis18 tributed in accordance with paragraph (2)(D).’’. 

19 (d) DEFINITION OF VALID TAXPAYER IDENTIFICA20 TION NUMBER FOR EARNED INCOME CREDIT.— 

21 (1) IN GENERAL.—Section 32(m) of the Inter22 nal Revenue Code of 1986 is amended to read as fol23 lows: 

24 ‘‘(m) IDENTIFICATION NUMBERS.—Solely for pur25 poses of subsections (c)(1)(E) and (c)(3)(D), a taxpayer 
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1 identification number means a social security number as2 signed by the Social Security Administration— 

3 ‘‘(1) to a citizen of the United States, or 

4 ‘‘(2) to an individual pursuant to subclause (I) 

5 (or that portion of subclause (III) that relates to 

6 subclause (I)) of section 205(c)(2)(B)(i) of the So7 cial Security Act.’’. 

8 (2) EFFECTIVE DATE.—The amendment made 

9 by this subsection shall apply to taxable years begin10 ning after the date of enactment of this Act. 

11 (e) DENIAL OF CHILD CREDIT FOR INDIVIDUALS

12 ELECTING SECTION 911.— 

13 (1) IN GENERAL.—Section 24 of the Internal 

14 Revenue Code of 1986 (relating to child tax credit) 

15 is amended by adding at the end the following new 

16 subsection: 

17 ‘‘(g) DENIAL OF CREDIT FOR INDIVIDUALS ELECT18 ING SECTION 911.—No credit shall be allowed under this 

19 section for any taxable year to a taxpayer who claims the 

20 benefits of section 911 (relating to citizens or residents 

21 living abroad) for such taxable year.’’. 

22 (2) CONFORMING AMENDMENT.—Section 

23 24(b)(1) of the Internal Revenue Code of 1986 is 

24 amended by striking ‘‘section 911, 931, or 933’’ and 

25 inserting ‘‘section 931 or 933’’. 
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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to taxable years begin3 ning after the date of enactment of this Act. 

4 (f) MODIFICATION OF ELIGIBILITY RULES FOR

5 CHILD-RELATED TAX BENEFITS.— 

6 (1) RULES INVOLVING PARENTS.—Paragraph 

7 (4) of section 152(c) of the Internal Revenue Code 

8 of 1986 (relating to qualifying child) is amended to 

9 read as follows: 

10 ‘‘(4) SPECIAL RULES FOR CLAIMING QUALI11 FYING CHILD.— 

12 ‘‘(A) RULES INVOLVING PARENTS.— 

13 ‘‘(i) IN GENERAL.—A taxpayer other 

14 than a parent of an individual may not 

15 claim such individual as a qualifying child 

16 for any taxable year beginning in a cal17 endar year if— 

18 ‘‘(I) a parent is eligible to claim 

19 and claims such individual as a quali20 fying child for any taxable year begin21 ning in such calendar year, or 

22 ‘‘(II) the taxpayer has a lower 

23 adjusted gross income than any par24 ent who may claim such individual as 
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1 a qualifying child for any taxable year 

2 beginning in such calendar year. 

3 ‘‘(ii) MORE THAN 1 PARENT CLAIMING

4 QUALIFYING CHILD.—If the parents claim5 ing any qualifying child do not file a joint 

6 return together, such child shall be treated 

7 as the qualifying child of— 

8 ‘‘(I) the parent with whom the 

9 child resided for the longest period of 

10 time during the taxable year, or 

11 ‘‘(II) if the child resides with 

12 both parents for the same amount of 

13 time during such taxable year, the 

14 parent with the highest adjusted gross 

15 income. 

16 ‘‘(B) RULE FOR 2 OR MORE NONPARENTS

17 CLAIMING QUALIFYING CHILD.—If an individual 

18 may be and is claimed as a qualifying child by 

19 2 or more taxpayers, neither of whom is a par20 ent of the individual, for a taxable year begin21 ning in the same calendar year, such individual 

22 shall be treated as the qualifying child of the 

23 taxpayer with the highest adjusted gross income 

24 for such taxable year.’’. 
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1 (2) SPECIAL RULE INVOLVING SIBLINGS CLAIM2 ING EARNED INCOME CREDIT.—Section 32(c)(1)(B) 

3 of the Internal Revenue Code of 1986 (relating to 

4 qualifying child ineligible) is amended by adding at 

5 the end the following new sentence: ‘‘The preceding 

6 sentence shall not apply with respect to any indi7 vidual who is a qualifying child of 1 or more broth8 ers, sisters, stepbrothers, and stepsisters who are 

9 also qualifying children of such individual if among 

10 all such qualifying children, such individual has the 

11 highest adjusted gross income.’’. 

12 (3) TECHNICAL CORRECTIONS RELATED TO

13 THE WORKING FAMILIES TAX RELIEF ACT OF

14 2004.— 

15 (A) AMENDMENT RELATED TO SECTION

16 203 OF THE ACT.—Subparagraph (B) of section 

17 21(b)(1) of the Internal Revenue Code of 1986 

18 is amended by inserting ‘‘(as defined in section 

19 152, determined without regard to subsections 

20 (b)(1), (b)(2), and (d)(1)(B))’’ after ‘‘dependent 

21 of the taxpayer’’. 

22 (B) AMENDMENT RELATED TO SECTION

23 207 OF THE ACT.—Subparagraph (A) of section 

24 223(d)(2) of such Code is amended by inserting 

25 ‘‘, determined without regard to subsections 
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1 (b)(1), (b)(2), and (d)(1)(B) thereof’’ after 

2 ‘‘section 152’’. 

3 (4) EFFECTIVE DATES.— 

4 (A) IN GENERAL.—Except as provided in 

5 subparagraph (B), the amendments made by 

6 this subsection shall apply to taxable years be7 ginning after December 31, 2004. 

8 (B) TECHNICAL CORRECTIONS.—The 

9 amendments made by paragraph (3) shall take 

10 effect as if included in the provisions of the 

11 Working Families Tax Relief Act of 2004 to 

12 which they relate. 

13 SEC. 117. DEFINITIONS. 

14 (a) IN GENERAL.—Section 419 (42 U.S.C. 619) is 

15 amended by adding at the end the following: 

16 ‘‘(6) ASSISTANCE.— 

17 ‘‘(A) IN GENERAL.—The term ‘assistance’ 

18 means cash, payments, vouchers, and other 

19 forms of benefits designed to meet a family’s 

20 ongoing basic needs (including for food, cloth21 ing, shelter, utilities, household goods, personal 

22 care items and general incidental expenses). 

23 ‘‘(B) INCLUSION OF CERTAIN BENEFITS.— 

24 Such term includes benefits even when they 

25 are— 
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1 ‘‘(i) provided in the form of payments 

2 by a State agency responsible for admin3 istering the State program funded under 

4 this part, or other agency on its behalf, to 

5 individual recipients; and 

6 ‘‘(ii) conditioned on participation in 

7 work experience or community service (or 

8 any other work activity under the State 

9 program funded under this part or with 

10 qualified State expenditures (as defined in 

11 section 409(a)(7)(B)(i)). 

12 ‘‘(C) EXCLUSION OF CERTAIN BENE13 FITS.—Such term does not include— 

14 ‘‘(i) nonrecurrent, short-term benefits 

15 that— 

16 ‘‘(I) are designed to deal with a 

17 specific crisis situation or episode of 

18 need; 

19 ‘‘(II) are not intended to meet re20 current or ongoing needs; and 

21 ‘‘(III) will not extend beyond 4 

22 months; 

23 ‘‘(ii) work subsidies (such as pay24 ments to employers or third parties to help 
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1 cover the costs of employee wages, benefits, 

2 supervision, and training); 

3 ‘‘(iii) supportive services such as child 

4 care and transportation; 

5 ‘‘(iv) refundable earned income tax 

6 credits; 

7 ‘‘(v) contributions to, and distribu8 tions from, Individual Development Ac9 counts; 

10 ‘‘(vi) services such as counseling, case 

11 management, peer support, child care in12 formation and referral, transitional serv13 ices, job retention, job advancement, and 

14 other employment-related services that do 

15 not provide basic income support; and 

16 ‘‘(v) transportation benefits provided 

17 under a Job Access or Reverse Commute 

18 project, pursuant to section 404(k), to an 

19 individual who is not otherwise receiving 

20 assistance. 

21 ‘‘(D) APPLICABILITY.—Unless otherwise 

22 provided, the definition of ‘assistance’ under 

23 this paragraph— 

24 ‘‘(i) only applies for purposes of the 

25 State program funded under this part or a 
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1 program funded with qualified State ex2 penditures (as defined in section 

3 409(a)(7)(B)(i)); and 

4 ‘‘(ii) does not preclude a State from 

5 providing other types of benefits and serv6 ices in support of the purposes of the State 

7 program funded under this part or a pro8 gram funded with qualified State expendi9 tures (as so defined).’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is 

12 amended by striking ‘‘assistance’’ and inserting 

13 ‘‘aid’’. 

14 (2) Section 404(f) (42 U.S.C. 604(f)) is amend15 ed by striking ‘‘assistance’’ and inserting ‘‘benefits 

16 or services’’. 

17 (3) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is 

18 amended by striking ‘‘assistance’’ and inserting 

19 ‘‘aid’’. 

20 (4) Section 5(g)(2)(D) of the Food Stamp Act 

21 of 1977 (7 U.S.C. 2014(g)(2)(D)) is amended— 

22 (A) by striking ‘‘If the vehicle allowance’’ 

23 and inserting the following: 

24 ‘‘(i) IN GENERAL.—If the vehicle al25 lowance’’; and 
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1 (B) by adding at the end the following: 

2 ‘‘(ii) DEFINITION OF ASSISTANCE.— 

3 In clause (i), the term ‘assistance’ shall 

4 have the meaning given such term in sec5 tion 260.31 of title 45 of the Code of Fed6 eral Regulations, as in effect on June 1, 

7 2002.’’. 

8 (5) Section 1137(b)(1) (42 U.S.C. 1320b– 

9 7(b)(1)) is amended by inserting ‘‘, but only with re10 spect to applicants for, or recipients of, assistance 

11 (as defined in section 419(6)) under such program’’ 

12 before the semicolon. 

13 SEC. 118. RESPONSIBLE FATHERHOOD PROGRAM. 

14 (a) RESPONSIBLE FATHERHOOD PROGRAM.— 

15 (1) FINDINGS.—Congress makes the following 

16 findings: 

17 (A) Nearly 24,000,000 children in the 

18 United States, or 34 percent of all such chil19 dren, live apart from their biological father. 

20 (B) Sixty percent of couples who divorce 

21 have at least 1 child. 

22 (C) The number of children living with 

23 only a mother increased from just over 

24 5,000,000 in 1960 to 17,000,000 in 1999, and 

25 between 1981 and 1991 the percentage of chil-
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1 dren living with only 1 parent increased from 

2 19 percent to 25 percent. 

3 (D) Forty percent of children who live in 

4 households without a father have not seen their 

5 father in at least 1 year and 50 percent of such 

6 children have never visited their father’s home. 

7 (E) The most important factor in a child’s 

8 upbringing is whether the child is brought up in 

9 a loving, healthy, supportive environment. 

10 (F) Children who live without contact with 

11 their biological father are, in comparison to 

12 children who have such contact— 

13 (i) 5 times more likely to live in pov14 erty; 

15 (ii) more likely to bring weapons and 

16 drugs into the classroom; 

17 (iii) twice as likely to commit crime; 

18 (iv) twice as likely to drop out of 

19 school; 

20 (v) more likely to commit suicide; 

21 (vi) more than twice as likely to abuse 

22 alcohol or drugs; and 

23 (vii) more likely to become pregnant 

24 as teenagers. 
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1 (G) Violent criminals are overwhelmingly 

2 males who grew up without fathers. 

3 (H) Between 20 and 30 percent of families 

4 in poverty are headed by women who have suf5 fered domestic violence during the past year, 

6 and between 40 and 60 percent of women with 

7 children receiving welfare were abused some8 time during their life. 

9 (I) Responsible fatherhood includes active 

10 participation in financial support and child 

11 care, as well as the formation and maintenance 

12 of a positive, healthy, and nonviolent relation13 ship between father and child and a cooperative 

14 relationship between parents. 

15 (J) States should be encouraged to imple16 ment programs that provide support for respon17 sible fatherhood, promote marriage, and in18 crease the incidence of marriage, and should 

19 not be restricted from implementing such pro20 grams. 

21 (K) Fatherhood programs should promote 

22 and provide support services for— 

23 (i) loving and healthy relationships be24 tween parents and children; and 

25 (ii) cooperative parenting. 
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1 (L) There is a social need to reconnect 

2 children and fathers. 

3 (M) The promotion of responsible father4 hood and encouragement of healthy 2-parent 

5 married families should not— 

6 (i) denigrate the standing or par7 enting efforts of single mothers or other 

8 caregivers; 

9 (ii) lessen the protection of children 

10 from abusive parents; or 

11 (iii) compromise the safety or health 

12 of the custodial parent; 

13 but should increase the chance that children 

14 will have 2 caring parents to help them grow up 

15 healthy and secure. 

16 (N) The promotion of responsible father17 hood must always recognize and promote the 

18 values of nonviolence. 

19 (O) For the future of the United States 

20 and the future of our children, Congress, 

21 States, and local communities should assist par22 ents to become more actively involved in their 

23 children’s lives. 

24 (P) Child support is an important means 

25 by which a parent can take financial responsi-
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1 bility for a child and emotional support is an 

2 important means by which a parent can take 

3 social responsibility for a child. 

4 (2) FATHERHOOD PROGRAM.—Title I of the 

5 Personal Responsibility and Work Opportunity Rec6 onciliation Act of 1996 (Public Law 104–193) is 

7 amended by adding at the end the following: 

8 ‘‘SEC. 117. FATHERHOOD PROGRAM. 

9 ‘‘(a) IN GENERAL.—Title IV (42 U.S.C. 601–679b) 

10 is amended by inserting after part B the following: 

11 ‘‘ ‘PART C—RESPONSIBLE FATHERHOOD 

12 PROGRAM 

13 ‘‘ ‘SEC. 441. RESPONSIBLE FATHERHOOD GRANTS. 

14 ‘‘ ‘(a) GRANTS TO STATES TO CONDUCT DEM15 ONSTRATION PROGRAMS.— 

16 ‘‘ ‘(1) AUTHORITY TO AWARD GRANTS.— 

17 ‘‘ ‘(A) IN GENERAL.—The Secretary shall 

18 award grants to up to 10 eligible States to con19 duct demonstration programs to carry out the 

20 purposes described in paragraph (2). 

21 ‘‘ ‘(B) ELIGIBLE STATE.—For purposes of 

22 this subsection, an eligible State is a State that 

23 submits to the Secretary the following: 

24 ‘‘ ‘(i) APPLICATION.—An application 

25 for a grant under this subsection, at such 
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1 time, in such manner, and containing such 

2 information as the Secretary may require. 

3 ‘‘ ‘(ii) STATE PLAN.—A State plan 

4 that includes the following: 

5 ‘‘ ‘(I) PROJECT DESCRIPTION.—A 

6 description of the programs or activi7 ties the State will fund under the 

8 grant, including a good faith estimate 

9 of the number and characteristics of 

10 clients to be served under such 

11 projects and how the State intends to 

12 achieve at least 2 of the purposes de13 scribed in paragraph (2). 

14 ‘‘ ‘(II) COORDINATION EF15 FORTS.—A description of how the 

16 State will coordinate and cooperate 

17 with State and local entities respon18 sible for carrying out other programs 

19 that relate to the purposes intended to 

20 be achieved under the demonstration 

21 program, including as appropriate, en22 tities responsible for carrying out jobs 

23 programs and programs serving chil24 dren and families. 
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1 ‘‘ ‘(III) RECORDS, REPORTS, AND

2 AUDITS.—An agreement to maintain 

3 such records, submit such reports, 

4 and cooperate with such reviews and 

5 audits as the Secretary finds nec6 essary for purposes of oversight of the 

7 demonstration program. 

8 ‘‘ ‘(iii) CERTIFICATIONS.—The fol9 lowing certifications from the chief execu10 tive officer of the State: 

11 ‘‘ ‘(I) A certification that the 

12 State will use funds provided under 

13 the grant to promote at least 2 of the 

14 purposes described in paragraph (2). 

15 ‘‘ ‘(II) A certification that the 

16 State will return any unused funds to 

17 the Secretary in accordance with the 

18 reconciliation process under para19 graph (5). 

20 ‘‘ ‘(III) A certification that the 

21 funds provided under the grant will be 

22 used for programs and activities that 

23 target low-income participants and 

24 that not less than 50 percent of the 
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1 participants in each program or activ2 ity funded under the grant shall be— 

3 ‘‘ ‘(aa) parents of a child 

4 who is, or within the past 24 

5 months has been, a recipient of 

6 assistance or services under a 

7 State program funded under part 

8 A, D, or E of this title, title XIX, 

9 or the Food Stamp Act of 1977; 

10 or 

11 ‘‘ ‘(bb) parents, including an 

12 expectant parent or a married 

13 parent, whose income (after ad14 justment for court-ordered child 

15 support paid or received) does 

16 not exceed 150 percent of the 

17 poverty line. 

18 ‘‘ ‘(IV) A certification that the 

19 State has or will comply with the re20 quirements of paragraph (4). 

21 ‘‘ ‘(V) A certification that funds 

22 provided to a State under this sub23 section shall not be used to supple24 ment or supplant other Federal, 

25 State, or local funds that are used to 
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1 support programs or activities that 

2 are related to the purposes described 

3 in paragraph (2). 

4 ‘‘ ‘(C) PREFERENCES AND FACTORS OF

5 CONSIDERATION.—In awarding grants under 

6 this subsection, the Secretary shall take into 

7 consideration the following: 

8 ‘‘ ‘(i) DIVERSITY OF ENTITIES USED

9 TO CONDUCT PROGRAMS AND ACTIVI10 TIES.—The Secretary shall, to the extent 

11 practicable, achieve a balance among the 

12 eligible States awarded grants under this 

13 subsection with respect to the size, urban 

14 or rural location, and employment of dif15 fering or unique methods of the entities 

16 that the eligible States intend to use to 

17 conduct the programs and activities funded 

18 under the grants. 

19 ‘‘ ‘(ii) PRIORITY FOR CERTAIN

20 STATES.—The Secretary shall give priority 

21 to awarding grants to eligible States that 

22 have— 

23 ‘‘ ‘(I) demonstrated progress in 

24 achieving at least 1 of the purposes 
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1 described in paragraph (2) through 

2 previous State initiatives; or 

3 ‘‘ ‘(II) demonstrated need with 

4 respect to reducing the incidence of 

5 out-of-wedlock births or absent fa6 thers in the State. 

7 ‘‘ ‘(2) PURPOSES.—The purposes described in 

8 this paragraph are the following: 

9 ‘‘ ‘(A) PROMOTING RESPONSIBLE FATHER10 HOOD THROUGH MARRIAGE PROMOTION.—To 

11 promote marriage or sustain marriage through 

12 activities such as counseling, mentoring, dis13 seminating information about the benefits of 

14 marriage and 2-parent involvement for children, 

15 enhancing relationship skills, education regard16 ing how to control aggressive behavior, dissemi17 nating information on the causes of domestic vi18 olence and child abuse, marriage preparation 

19 programs, premarital counseling, marital inven20 tories, skills-based marriage education, financial 

21 planning seminars, including improving a fam22 ily’s ability to effectively manage family busi23 ness affairs by means such as education, coun24 seling, or mentoring on matters related to fam25 ily finances, including household management, 
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1 budgeting, banking, and handling of financial 

2 transactions and home maintenance, and di3 vorce education and reduction programs, includ4 ing mediation and counseling. 

5 ‘‘ ‘(B) PROMOTING RESPONSIBLE FATHER6 HOOD THROUGH PARENTING PROMOTION.—To 

7 promote responsible parenting through activities 

8 such as counseling, mentoring, and mediation, 

9 disseminating information about good parenting 

10 practices, skills-based parenting education, en11 couraging child support payments, and other 

12 methods. 

13 ‘‘ ‘(C) PROMOTING RESPONSIBLE FATHER14 HOOD THROUGH FOSTERING ECONOMIC STA15 BILITY OF FATHERS.—To foster economic sta16 bility by helping fathers improve their economic 

17 status by providing activities such as work first 

18 services, job search, job training, subsidized em19 ployment, job retention, job enhancement, and 

20 encouraging education, including career-advanc21 ing education, dissemination of employment ma22 terials, coordination with existing employment 

23 services such as welfare-to-work programs, re24 ferrals to local employment training initiatives, 

25 and other methods. 
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1 ‘‘ ‘(3) RESTRICTION ON USE OF FUNDS.—No 

2 funds provided under this subsection may be used 

3 for costs attributable to court proceedings regarding 

4 matters of child visitation or custody, or for legisla5 tive advocacy. 

6 ‘‘ ‘(4) REQUIREMENTS FOR RECEIPT OF

7 FUNDS.—A State may not be awarded a grant under 

8 this section unless the State, as a condition of re9 ceiving funds under such a grant— 

10 ‘‘ ‘(A) consults with experts in domestic vi11 olence or with relevant community domestic vio12 lence coalitions in developing such programs or 

13 activities; and 

14 ‘‘ ‘(B) describes in the application for a 

15 grant under this section— 

16 ‘‘ ‘(i) how the programs or activities 

17 proposed to be conducted will address, as 

18 appropriate, issues of domestic violence; 

19 and 

20 ‘‘ ‘(ii) what the State will do, to the 

21 extent relevant, to ensure that participa22 tion in such programs or activities is vol23 untary, and to inform potential partici24 pants that their involvement is voluntary. 

25 ‘‘ ‘(5) RECONCILIATION PROCESS.— 
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1 ‘‘ ‘(A) 3-YEAR AVAILABILITY OF AMOUNTS

2 ALLOTTED.—Each eligible State that receives a 

3 grant under this subsection for a fiscal year 

4 shall return to the Secretary any unused por5 tion of the grant for such fiscal year not later 

6 than the last day of the second succeeding fiscal 

7 year, together with any earnings on such un8 used portion. 

9 ‘‘ ‘(B) PROCEDURE FOR REDISTRIBU10 TION.—The Secretary shall establish an appro11 priate procedure for redistributing to eligible 

12 States that have expended the entire amount of 

13 a grant made under this subsection for a fiscal 

14 year any amount that is returned to the Sec15 retary by eligible States under subparagraph 

16 (A). 

17 ‘‘ ‘(6) AMOUNT OF GRANTS.— 

18 ‘‘ ‘(A) IN GENERAL.—Subject to subpara19 graph (B), the amount of each grant awarded 

20 under this subsection shall be an amount suffi21 cient to implement the State plan submitted 

22 under paragraph (1)(B)(ii). 

23 ‘‘ ‘(B) MINIMUM AMOUNTS.—No eligible 

24 State shall— 
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1 ‘‘ ‘(i) in the case of the District of Co2 lumbia or a State other than the Common3 wealth of Puerto Rico, the United States 

4 Virgin Islands, Guam, American Samoa, 

5 and the Commonwealth of the Northern 

6 Mariana Islands, receive a grant for a fis7 cal year in an amount that is less than 

8 $1,000,000; and 

9 ‘‘ ‘(ii) in the case of the Common10 wealth of Puerto Rico, the United States 

11 Virgin Islands, Guam, American Samoa, 

12 and the Commonwealth of the Northern 

13 Mariana Islands, receive a grant for a fis14 cal year in an amount that is less than 

15 $500,000. 

16 ‘‘ ‘(7) DEFINITION OF STATE.—In this sub17 section, the term ‘State’ means each of the 50 

18 States, the District of Columbia, the Commonwealth 

19 of Puerto Rico, the United States Virgin Islands, 

20 Guam, American Samoa, and the Commonwealth of 

21 the Northern Mariana Islands. 

22 ‘‘ ‘(8) APPROPRIATION.—Out of any money in 

23 the Treasury of the United States not otherwise ap24 propriated, there are appropriated for each of fiscal 

25 years 2006 through 2010, $20,000,000 for purposes 
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1 of making grants to eligible States under this sub2 section. 

3 ‘‘ ‘(b) GRANTS TO ELIGIBLE ENTITIES TO CONDUCT

4 DEMONSTRATION PROGRAMS.— 

5 ‘‘ ‘(1) AUTHORITY TO AWARD GRANTS.— 

6 ‘‘ ‘(A) IN GENERAL.—The Secretary shall 

7 award grants to eligible entities to conduct 

8 demonstration programs to carry out the pur9 poses described in subsection (a)(2). 

10 ‘‘ ‘(B) ELIGIBLE ENTITY.—For purposes of 

11 this subsection, an eligible entity is a local gov12 ernment, local public agency, community-based 

13 or nonprofit organization, or private entity, in14 cluding any charitable or faith-based organiza15 tion, or an Indian tribe or tribal organization 

16 (as defined in section 419(4)), that submits to 

17 the Secretary the following: 

18 ‘‘ ‘(i) APPLICATION.—An application 

19 for a grant under this subsection, at such 

20 time, in such manner, and containing such 

21 information as the Secretary may require. 

22 ‘‘ ‘(ii) PROJECT DESCRIPTION.—A de23 scription of the programs or activities the 

24 entity intends to carry out with funds pro25 vided under the grant, including a good 
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1 faith estimate of the number and charac2 teristics of clients to be served under such 

3 programs or activities and how the entity 

4 intends to achieve at least 2 of the pur5 poses described in subsection (a)(2). 

6 ‘‘ ‘(iii) COORDINATION EFFORTS.—A 

7 description of how the entity will coordi8 nate and cooperate with State and local 

9 entities responsible for carrying out other 

10 programs that relate to the purposes in11 tended to be achieved under the dem12 onstration program, including as appro13 priate, entities responsible for carrying out 

14 jobs programs and programs serving chil15 dren and families. 

16 ‘‘ ‘(iv) RECORDS, REPORTS, AND AU17 DITS.—An agreement to maintain such 

18 records, submit such reports, and cooper19 ate with such reviews and audits as the 

20 Secretary finds necessary for purposes of 

21 oversight of the demonstration program. 

22 ‘‘ ‘(v) CERTIFICATIONS.—The fol23 lowing certifications: 

24 ‘‘ ‘(I) A certification that the en25 tity will use funds provided under the 
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1 grant to promote at least 2 of the 

2 purposes described in subsection 

3 (a)(2). 

4 ‘‘ ‘(II) A certification that the en5 tity will return any unused funds to 

6 the Secretary in accordance with the 

7 reconciliation process under para8 graph (3). 

9 ‘‘ ‘(III) A certification that the 

10 funds provided under the grant will be 

11 used for programs and activities that 

12 target low-income participants and 

13 that not less than 50 percent of the 

14 participants in each program or activ15 ity funded under the grant shall be— 

16 ‘‘ ‘(aa) parents of a child 

17 who is, or within the past 24 

18 months has been, a recipient of 

19 assistance or services under a 

20 State program funded under part 

21 A, D, or E of this title, title XIX, 

22 or the Food Stamp Act of 1977; 

23 or 

24 ‘‘ ‘(bb) parents, including an 

25 expectant parent or a married 
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1 parent, whose income (after ad2 justment for court-ordered child 

3 support paid or received) does 

4 not exceed 150 percent of the 

5 poverty line. 

6 ‘‘ ‘(IV) A certification that the 

7 entity has or will comply with the re8 quirements of paragraph (3). 

9 ‘‘ ‘(V) A certification that funds 

10 provided to an entity under this sub11 section shall not be used to supple12 ment or supplant other Federal, 

13 State, or local funds provided to the 

14 entity that are used to support pro15 grams or activities that are related to 

16 the purposes described in subsection 

17 (a)(2). 

18 ‘‘ ‘(C) PREFERENCES AND FACTORS OF

19 CONSIDERATION.—In awarding grants under 

20 this subsection, the Secretary shall, to the ex21 tent practicable, achieve a balance among the 

22 eligible entities awarded grants under this sub23 section with respect to the size, urban or rural 

24 location, and employment of differing or unique 

25 methods of the entities. 
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1 ‘‘ ‘(2) RESTRICTION ON USE OF FUNDS.—No 

2 funds provided under this subsection may be used 

3 for costs attributable to court proceedings regarding 

4 matters of child visitation or custody, or for legisla5 tive advocacy. 

6 ‘‘ ‘(3) REQUIREMENTS FOR USE OF FUNDS.— 

7 The Secretary may not award a grant under this 

8 subsection to an eligible entity unless the entity, as 

9 a condition of receiving funds under such a grant— 

10 ‘‘ ‘(A) consults with experts in domestic vi11 olence or with relevant community domestic vio12 lence coalitions in developing the programs or 

13 activities to be conducted with such funds 

14 awarded under the grant; and 

15 ‘‘ ‘(B) describes in the application for a 

16 grant under this section— 

17 ‘‘ ‘(i) how the programs or activities 

18 proposed to be conducted will address, as 

19 appropriate, issues of domestic violence; 

20 and 

21 ‘‘ ‘(ii) what the entity will do, to the 

22 extent relevant, to ensure that participa23 tion in such programs or activities is vol24 untary, and to inform potential partici25 pants that their involvement is voluntary. 
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1 ‘‘ ‘(4) RECONCILIATION PROCESS.— 

2 ‘‘ ‘(A) 3-YEAR AVAILABILITY OF AMOUNTS

3 ALLOTTED.—Each eligible entity that receives a 

4 grant under this subsection for a fiscal year 

5 shall return to the Secretary any unused por6 tion of the grant for such fiscal year not later 

7 than the last day of the second succeeding fiscal 

8 year, together with any earnings on such un9 used portion. 

10 ‘‘ ‘(B) PROCEDURE FOR REDISTRIBU11 TION.—The Secretary shall establish an appro12 priate procedure for redistributing to eligible 

13 entities that have expended the entire amount 

14 of a grant made under this subsection for a fis15 cal year any amount that is returned to the 

16 Secretary by eligible entities under subpara17 graph (A). 

18 ‘‘ ‘(5) APPROPRIATION.—Out of any money in 

19 the Treasury of the United States not otherwise ap20 propriated, there are appropriated for each of fiscal 

21 years 2006 through 2010, $30,000,000 for purposes 

22 of making grants to eligible entities under this sub23 section. 
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1 ‘‘ ‘SEC. 442. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE 

2 FATHERHOOD PROGRAMS. 

3 ‘‘ ‘(a) MEDIA CAMPAIGN NATIONAL CLEARINGHOUSE

4 FOR RESPONSIBLE FATHERHOOD.— 

5 ‘‘ ‘(1) IN GENERAL.—From any funds appro6 priated under subsection (c), the Secretary shall con7 tract with a nationally recognized, nonprofit father8 hood promotion organization described in subsection 

9 (b) to— 

10 ‘‘ ‘(A) develop, promote, and distribute to 

11 interested States, local governments, public 

12 agencies, and private entities a media campaign 

13 that encourages the appropriate involvement of 

14 parents in the life of any child, with a priority 

15 for programs that specifically address the issue 

16 of responsible fatherhood; and 

17 ‘‘ ‘(B) develop a national clearinghouse to 

18 assist States and communities in efforts to pro19 mote and support marriage and responsible fa20 therhood by collecting, evaluating, and making 

21 available (through the Internet and by other 

22 means) to other States information regarding 

23 the media campaigns established under section 

24 443. 

25 ‘‘ ‘(2) COORDINATION WITH DOMESTIC VIO26 LENCE PROGRAMS.—The Secretary shall ensure that 
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1 the nationally recognized nonprofit fatherhood pro2 motion organization with a contract under para3 graph (1) coordinates the media campaign developed 

4 under subparagraph (A) of such paragraph and the 

5 national clearinghouse developed under subpara6 graph (B) of such paragraph with national, State, or 

7 local domestic violence programs. 

8 ‘‘ ‘(b) NATIONALLY RECOGNIZED, NONPROFIT FA9 THERHOOD PROMOTION ORGANIZATION DESCRIBED.— 

10 The nationally recognized, nonprofit fatherhood promotion 

11 organization described in this subsection is an organiza12 tion that has at least 4 years of experience in— 

13 ‘‘ ‘(1) designing and disseminating a national 

14 public education campaign, as evidenced by the pro15 duction and successful placement of television, radio, 

16 and print public service announcements that pro17 mote the importance of responsible fatherhood, a 

18 track record of service to Spanish-speaking popu19 lations and historically underserved or minority pop20 ulations, the capacity to fulfill requests for informa21 tion and a proven history of fulfilling such requests, 

22 and a mechanism through which the public can re23 quest additional information about the campaign; 

24 and 
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1 ‘‘ ‘(2) providing consultation and training to 

2 community-based organizations interested in imple3 menting fatherhood outreach, support, or skill devel4 opment programs with an emphasis on promoting 

5 married fatherhood as the ideal. 

6 ‘‘ ‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

7 is authorized to be appropriated $5,000,000 for each of 

8 fiscal years 2006 through 2010 to carry out this section. 

9 ‘‘ ‘SEC. 443. BLOCK GRANTS TO STATES TO ENCOURAGE 

10 MEDIA CAMPAIGNS. 

11 ‘‘ ‘(a) DEFINITIONS.—In this section: 

12 ‘‘ ‘(1) BROADCAST ADVERTISEMENT.—The term 

13 ‘broadcast advertisement’ means a communication 

14 intended to be aired by a television or radio broad15 cast station, including a communication intended to 

16 be transmitted through a cable channel. 

17 ‘‘ ‘(2) CHILD AT RISK.—The term ‘child at risk’ 

18 means each young child whose family income does 

19 not exceed the poverty line. 

20 ‘‘ ‘(3) POVERTY LINE.—The term ‘poverty line’ 

21 has the meaning given such term in section 673(2) 

22 of the Community Services Block Grant Act (42 

23 U.S.C. 9902(2)), including any revision required by 

24 such section, that is applicable to a family of the 

25 size involved. 
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1 ‘‘ ‘(4) PRINTED OR OTHER ADVERTISEMENT.— 

2 The term ‘printed or other advertisement’ includes 

3 any communication intended to be distributed 

4 through a newspaper, magazine, outdoor advertising 

5 facility, mailing, or any other type of general public 

6 advertising, but does not include any broadcast ad7 vertisement. 

8 ‘‘ ‘(5) STATE.—The term ‘State’ means each of 

9 the 50 States, the District of Columbia, the Com10 monwealth of Puerto Rico, the United States Virgin 

11 Islands, Guam, American Samoa, and the Common12 wealth of the Northern Mariana Islands. 

13 ‘‘ ‘(6) YOUNG CHILD.—The term ‘young child’ 

14 means an individual under age 5. 

15 ‘‘ ‘(b) STATE CERTIFICATIONS.—Not later than Octo16 ber 1 of each of fiscal year for which a State desires to 

17 receive an allotment under this section, the chief executive 

18 officer of the State shall submit to the Secretary a certifi19 cation that the State shall— 

20 ‘‘ ‘(1) use such funds to promote the formation 

21 and maintenance of healthy 2-parent married fami22 lies, strengthen fragile families, and promote respon23 sible fatherhood through media campaigns conducted 

24 in accordance with the requirements of subsection 

25 (d); 
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1 ‘‘ ‘(2) return any unused funds to the Secretary 

2 in accordance with the reconciliation process under 

3 subsection (e); and 

4 ‘‘ ‘(3) comply with the reporting requirements 

5 under subsection (f). 

6 ‘‘ ‘(c) PAYMENTS TO STATES.—For each of fiscal 

7 years 2006 through 2010, the Secretary shall pay to each 

8 State that submits a certification under subsection (b), 

9 from any funds appropriated under subsection (i), for the 

10 fiscal year an amount equal to the amount of the allotment 

11 determined for the fiscal year under subsection (g). 

12 ‘‘ ‘(d) ESTABLISHMENT OF MEDIA CAMPAIGNS.— 

13 Each State receiving an allotment under this section for 

14 a fiscal year shall use the allotment to conduct media cam15 paigns as follows: 

16 ‘‘ ‘(1) CONDUCT OF MEDIA CAMPAIGNS.— 

17 ‘‘ ‘(A) RADIO AND TELEVISION MEDIA CAM18 PAIGNS.— 

19 ‘‘ ‘(i) PRODUCTION OF BROADCAST

20 ADVERTISEMENTS.—At the option of the 

21 State, to produce broadcast advertisements 

22 that promote the formation and mainte23 nance of healthy 2-parent married families, 

24 strengthen fragile families, and promote 

25 responsible fatherhood. 
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1 ‘‘ ‘(ii) AIRTIME CHALLENGE PRO2 GRAM.—At the option of the State, to es3 tablish an airtime challenge program under 

4 which the State may spend amounts allot5 ted under this section to purchase time 

6 from a broadcast station to air a broadcast 

7 advertisement produced under clause (i), 

8 but only if the State obtains an amount of 

9 time of the same class and during a com10 parable period to air the advertisement 

11 using non-Federal contributions. 

12 ‘‘ ‘(B) OTHER MEDIA CAMPAIGNS.—At the 

13 option of the State, to conduct a media cam14 paign that consists of the production and dis15 tribution of printed or other advertisements 

16 that promote the formation and maintenance of 

17 healthy 2-parent married families, strengthen 

18 fragile families, and promote responsible father19 hood. 

20 ‘‘ ‘(2) ADMINISTRATION OF MEDIA CAM21 PAIGNS.—A State may administer media campaigns 

22 funded under this section directly or through grants, 

23 contracts, or cooperative agreements with public 

24 agencies, local governments, or private entities, in25 cluding charitable and faith-based organizations. 
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1 ‘‘ ‘(3) CONSULTATION WITH DOMESTIC VIO2 LENCE ASSISTANCE CENTERS.—In developing broad3 cast and printed advertisements to be used in the 

4 media campaigns conducted under paragraph (1), 

5 the State or other entity administering the campaign 

6 shall consult with representatives of State and local 

7 domestic violence centers. 

8 ‘‘ ‘(4) NON-FEDERAL CONTRIBUTIONS.—In this 

9 section, the term ‘non-Federal contributions’ in10 cludes contributions by the State and by public and 

11 private entities. Such contributions may be in cash 

12 or in kind. Such term does not include any amounts 

13 provided by the Federal Government, or services as14 sisted or subsidized to any significant extent by the 

15 Federal Government, or any amount expended by a 

16 State before October 1, 2005. 

17 ‘‘ ‘(e) RECONCILIATION PROCESS.— 

18 ‘‘ ‘(1) 3-YEAR AVAILABILITY OF AMOUNTS AL19 LOTTED.—Each State that receives an allotment 

20 under this section shall return to the Secretary any 

21 unused portion of the amount allotted to a State for 

22 a fiscal year not later than the last day of the sec23 ond succeeding fiscal year together with any earn24 ings on such unused portion. 
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1 ‘‘ ‘(2) PROCEDURE FOR REDISTRIBUTION OF

2 UNUSED ALLOTMENTS.—The Secretary shall estab3 lish an appropriate procedure for redistributing to 

4 States that have expended the entire amount allotted 

5 under this section any amount that is— 

6 ‘‘ ‘(A) returned to the Secretary by States 

7 under paragraph (1); or 

8 ‘‘ ‘(B) not allotted to a State under this 

9 section because the State did not submit a cer10 tification under subsection (b) by October 1 of 

11 a fiscal year. 

12 ‘‘ ‘(f) REPORTING REQUIREMENTS.— 

13 ‘‘ ‘(1) MONITORING AND EVALUATION.—Each 

14 State receiving an allotment under this section for a 

15 fiscal year shall monitor and evaluate the media 

16 campaigns conducted using funds made available 

17 under this section in such manner as the Secretary, 

18 in consultation with the States, determines appro19 priate. 

20 ‘‘ ‘(2) ANNUAL REPORTS.—Not less frequently 

21 than annually, each State receiving an allotment 

22 under this section for a fiscal year shall submit to 

23 the Secretary reports on the media campaigns con24 ducted using funds made available under this section 
217 

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1 at such time, in such manner, and containing such 

2 information as the Secretary may require. 

3 ‘‘ ‘(g) AMOUNT OF ALLOTMENTS.— 

4 ‘‘ ‘(1) IN GENERAL.—Except as provided in 

5 paragraph (2), of the amount appropriated for the 

6 purpose of making allotments under this section for 

7 a fiscal year, the Secretary shall allot to each State 

8 that submits a certification under subsection (b) for 

9 the fiscal year an amount equal to the sum of— 

10 ‘‘ ‘(A) the amount that bears the same 

11 ratio to 50 percent of such funds as the number 

12 of young children in the State (as determined 

13 by the Secretary based on the most current reli14 able data available) bears to the number of 

15 such children in all States; and 

16 ‘‘ ‘(B) the amount that bears the same 

17 ratio to 50 percent of such funds as the number 

18 of children at risk in the State (as determined 

19 by the Secretary based on the most current reli20 able data available) bears to the number of 

21 such children in all States. 

22 ‘‘ ‘(2) MINIMUM ALLOTMENTS.—No allotment 

23 for a fiscal year under this section shall be less 

24 than— 
218 

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1 ‘‘ ‘(A) in the case of the District of Colum2 bia or a State other than the Commonwealth of 

3 Puerto Rico, the United States Virgin Islands, 

4 Guam, American Samoa, and the Common5 wealth of the Northern Mariana Islands, 1 per6 cent of the amount appropriated for the fiscal 

7 year under subsection (i); and 

8 ‘‘ ‘(B) in the case of the Commonwealth of 

9 Puerto Rico, the United States Virgin Islands, 

10 Guam, American Samoa, and the Common11 wealth of the Northern Mariana Islands, 0.5 

12 percent of such amount. 

13 ‘‘ ‘(3) PRO RATA REDUCTIONS.—The Secretary 

14 shall make such pro rata reductions to the allot15 ments determined under this subsection as are nec16 essary to comply with the requirements of paragraph 

17 (2). 

18 ‘‘ ‘(h) EVALUATION.— 

19 ‘‘ ‘(1) IN GENERAL.—The Secretary shall con20 duct an evaluation of the impact of the media cam21 paigns funded under this section. 

22 ‘‘ ‘(2) REPORT.—Not later than December 31, 

23 2008, the Secretary shall report to Congress the re24 sults of the evaluation under paragraph (1). 
219 

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1 ‘‘ ‘(3) FUNDING.—Of the amount appropriated 

2 under subsection (i) for fiscal year 2006, $1,000,000 

3 of such amount shall be transferred and made avail4 able for purposes of conducting the evaluation re5 quired under this subsection, and shall remain avail6 able until expended. 

7 ‘‘ ‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 

8 is authorized to be appropriated $20,000,000 for each of 

9 fiscal years 2006 through 2010 for purposes of making 

10 allotments to States under this section. 

11 ‘‘ ‘SEC. 444. NATIONAL RESOURCE CENTER FOR RESPON12 SIBLE FATHERHOOD 

13 ‘‘ ‘(a) IN GENERAL.—The Secretary shall contract 

14 with a nationally recognized, nonprofit research and edu15 cation fatherhood organization described in subsection (b) 

16 to— 

17 ‘‘ ‘(1) provide technical assistance and training to 

18 public and private agencies and grass roots organi19 zations that promote responsible fatherhood and 

20 healthy marriage; and 

21 ‘‘ ‘(2) develop a clearinghouse of resource mate22 rials to assist community-based organizations in de23 veloping local responsible fatherhood programs, with 

24 an emphasis on training and outcome evaluation. 
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1 ‘‘ ‘(b) NATIONALLY RECOGNIZED NONPROFIT RE2 SEARCH AND EDUCATION FATHERHOOD ORGANIZATION

3 DESCRIBED.—A nationally recognized nonprofit research 

4 and education fatherhood organization described in this 

5 subsection is an organization that has been in existence 

6 for at least 12 years with experience in— 

7 ‘‘ ‘(1) developing and distributing research8 based curriculum that promotes responsible father9 hood and healthy marriage with an emphasis on low10 income and noncustodial fathers; 

11 ‘‘ ‘(2) providing consultation and training to 

12 community-based organizations with a track record 

13 of working with social service, government, and 

14 faith-based organizations; and 

15 ‘‘ ‘(3) providing direct training to fathers, fa16 ther figures, and mothers using research-based cur17 riculum in a variety of economic, cultural and family 

18 situations. 

19 ‘‘ ‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

20 is authorized to be appropriated to the Secretary to carry 

21 out this section, $1,000,000 for each of fiscal years 2006 

22 through 2010. 

23 ‘‘ ‘SEC. 445. NONDISCRIMINATION. 

24 ‘‘ ‘The projects and activities assisted under this part 

25 shall be available on the same basis to all fathers and ex-
221 

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1 pectant fathers able to benefit from such projects and ac2 tivities, including married and unmarried fathers and cus3 todial and noncustodial fathers, with particular attention 

4 to low-income fathers, and to mothers and expectant 

5 mothers on the same basis as to fathers.’. 

6 ‘‘(b) INAPPLICABILITY OF EFFECTIVE DATE PROVI7 SIONS.—Section 116 shall not apply to the amendment 

8 made by subsection (a) of this section.’’. 

9 (b) CLERICAL AMENDMENT.—Section 2 of such Act 

10 is amended in the table of contents by inserting after the 

11 item relating to section 116 the following new item: 

‘‘Sec. 117. Responsible fatherhood program.’’. 

12 SEC. 119. ADDITIONAL GRANTS. 

13 (a) GRANTS TO CAPITALIZE AND DEVELOP SUSTAIN14 ABLE SOCIAL SERVICES.—Section 403(a) (42 U.S.C. 

15 603(a)) is amended by adding at the end the following: 

16 ‘‘(6) GRANTS TO CAPITALIZE AND DEVELOP

17 SUSTAINABLE SOCIAL SERVICES.— 

18 ‘‘(A) AUTHORITY TO AWARD GRANTS.— 

19 The Secretary may award grants to entities for 

20 the purpose of capitalizing and developing the 

21 role of sustainable social services that are crit22 ical to the success of moving recipients of as23 sistance under a State program funded under 

24 this part to work. 

25 ‘‘(B) APPLICATION.— 
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1 ‘‘(i) IN GENERAL.—An entity desiring 

2 a grant under this paragraph shall submit 

3 an application to the Secretary, at such 

4 time, in such manner, and, subject to 

5 clause (ii), containing such information as 

6 the Secretary may require. 

7 ‘‘(ii) STRATEGY FOR GENERATION OF

8 REVENUE.—An application for a grant 

9 under this paragraph shall include a de10 scription of the capitalization strategy that 

11 the entity intends to follow to develop a 

12 program that generates its own source of 

13 ongoing revenue while assisting recipients 

14 of assistance under a State program fund15 ed under this part. 

16 ‘‘(C) USE OF FUNDS.— 

17 ‘‘(i) IN GENERAL.—Funds made avail18 able under a grant made under this para19 graph may be used for the acquisition, con20 struction, or renovation of facilities or 

21 buildings. 

22 ‘‘(ii) GENERAL RULES GOVERNING

23 USE OF FUNDS.—The rules of section 404, 

24 other than subsection (b) of that section, 
223 

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1 shall not apply to a grant made under this 

2 paragraph. 

3 ‘‘(D) EVALUATION AND REPORT.—The 

4 Secretary shall, by grant, contract, or inter5 agency agreement, conduct an evaluation of the 

6 programs developed with grants awarded under 

7 this paragraph and shall submit a report to 

8 Congress on the results of such evaluation. 

9 ‘‘(E) AUTHORIZATION OF APPROPRIA10 TIONS.—There is authorized to be appropriated 

11 to the Secretary for the purpose of carrying out 

12 this paragraph, $40,000,000 for each of fiscal 

13 years 2006 through 2010.’’. 

14 (b) GRANTS FOR LOW-INCOME CAR OWNERSHIP

15 PROGRAMS.—Section 403(a) (42 U.S.C. 603(a)), as 

16 amended by subsection (a), is further amended by adding 

17 at the end the following: 

18 ‘‘(7) GRANTS FOR LOW-INCOME CAR OWNER19 SHIP PROGRAMS.— 

20 ‘‘(A) PURPOSES.—The purposes of this 

21 paragraph are to— 

22 ‘‘(i) assist low-income families with 

23 children obtain dependable, affordable 

24 automobiles to improve their employment 

25 opportunities and access to training; and 
224 

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1 ‘‘(ii) provide incentives to States, In2 dian tribes or tribal organizations, local3 ities, and nonprofit entities to develop and 

4 administer programs that provide assist5 ance with automobile ownership for low-in6 come families. 

7 ‘‘(B) DEFINITIONS.—In this paragraph: 

8 ‘‘(i) LOCALITY.—The term ‘locality’ 

9 means a municipality that does not admin10 ister a State program funded under this 

11 part. 

12 ‘‘(ii) LOW-INCOME FAMILY WITH

13 CHILDREN.—The term ‘low-income family 

14 with children’ means a household that is 

15 eligible for benefits or services funded 

16 under the State program funded under this 

17 part or under a program funded with 

18 qualified State expenditures (as defined in 

19 section 409(a)(7)(B)(i)). 

20 ‘‘(iii) NONPROFIT ENTITY.—The term 

21 ‘nonprofit entity’ means a school, local 

22 agency, organization, or institution owned 

23 and operated by 1 or more nonprofit cor24 porations or associations, no part of the 

25 net earnings of which inures, or may law-
225 

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1 fully inure, to the benefit of any private 

2 shareholder or individual. 

3 ‘‘(C) AUTHORITY TO AWARD GRANTS.— 

4 The Secretary may award grants to States, 

5 counties, localities, Indian tribes or tribal orga6 nizations, and nonprofit entities to promote im7 proving access to dependable, affordable auto8 mobiles by low-income families with children. 

9 ‘‘(D) GRANT APPROVAL CRITERIA.—The 

10 Secretary shall establish criteria for approval of 

11 an application for a grant under this paragraph 

12 that include consideration of— 

13 ‘‘(i) the extent to which the proposal, 

14 if funded, is likely to improve access to 

15 training and employment opportunities and 

16 child care services by low-income families 

17 with children by means of car ownership; 

18 ‘‘(ii) the level of innovation in the ap19 plicant’s grant proposal; and 

20 ‘‘(iii) any partnerships between the 

21 public and private sector in the applicant’s 

22 grant proposal. 

23 ‘‘(E) USE OF FUNDS.— 

24 ‘‘(i) IN GENERAL.—A grant awarded 

25 under this paragraph shall be used to ad-
226 

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1 minister programs that assist low-income 

2 families with children with dependable 

3 automobile ownership, and maintenance of, 

4 or insurance for, the purchased auto5 mobile. 

6 ‘‘(ii) SUPPLEMENT NOT SUPPLANT.— 

7 Funds provided to a State, Indian tribe or 

8 tribal organization, county, or locality 

9 under a grant awarded under this para10 graph shall be used to supplement and not 

11 supplant other State, county, or local pub12 lic funds expended for car ownership pro13 grams. 

14 ‘‘(iii) GENERAL RULES GOVERNING

15 USE OF FUNDS.—The rules of section 404, 

16 other than subsection (b) of that section, 

17 shall not apply to a grant made under this 

18 paragraph. 

19 ‘‘(F) APPLICATION.—Each applicant desir20 ing a grant under this paragraph shall submit 

21 an application to the Secretary at such time, in 

22 such manner, and accompanied by such infor23 mation as the Secretary may reasonably re24 quire. 
227 

•S 667 PCS 

1 ‘‘(G) REVERSION OF FUNDS.—Any funds 

2 not expended by a grantee within 3 years after 

3 the date the grant is awarded under this para4 graph shall be available for redistribution 

5 among other grantees in such manner and 

6 amount as the Secretary may determine, unless 

7 the Secretary extends by regulation the time pe8 riod to expend such funds. 

9 ‘‘(H) LIMITATION ON ADMINISTRATIVE

10 COSTS OF THE SECRETARY.—Not more than an 

11 amount equal to 5 percent of the funds appro12 priated to make grants under this paragraph 

13 for a fiscal year shall be expended for adminis14 trative costs of the Secretary in carrying out 

15 this paragraph. 

16 ‘‘(I) EVALUATION.—The Secretary shall, 

17 by grant, contract, or interagency agreement, 

18 conduct an evaluation of the programs adminis19 tered with grants awarded under this para20 graph. 

21 ‘‘(J) AUTHORIZATION OF APPROPRIA22 TIONS.—There is authorized to be appropriated 

23 to the Secretary to make grants under this 

24 paragraph, $25,000,000 for each of fiscal years 

25 2006 through 2010.’’. 
228 

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1 (c) TRANSITIONAL JOBS GRANTS.— 

2 (1) IN GENERAL.—Section 403(a) (42 U.S.C. 

3 603(a)), as amended by subsection (b), is further 

4 amended by adding at the end the following: 

5 ‘‘(8) INNOVATIVE BUSINESS LINK PARTNERSHIP

6 GRANTS.— 

7 ‘‘(A) IN GENERAL.—The Secretary and the 

8 Secretary of Labor (in this paragraph referred 

9 to as the ‘Secretaries’) jointly shall award 

10 grants in accordance with this paragraph for 

11 projects proposed by eligible applicants based 

12 on the following: 

13 ‘‘(i) The potential effectiveness of the 

14 proposed project in carrying out the activi15 ties described in subparagraph (E). 

16 ‘‘(ii) Evidence of the ability of the eli17 gible applicant to leverage private, State, 

18 or local resources. 

19 ‘‘(iii) Evidence of the ability of the eli20 gible applicant to coordinate with other or21 ganizations at the State or local level. 

22 ‘‘(B) DEFINITION OF ELIGIBLE APPLI23 CANT.— 

24 ‘‘(i) IN GENERAL.—In this paragraph, 

25 the term ‘eligible applicant’ means a pri-
229 

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1 vate organization, a local workforce invest2 ment board established under section 117 

3 of the Workforce Investment Act of 1998 

4 (29 U.S.C. 2832), a State, a political sub5 division of a State, or an Indian tribe or 

6 tribal organization. 

7 ‘‘(ii) GRANTS TO PROMOTE BUSINESS

8 LINKAGES.— 

9 ‘‘(I) ADDITIONAL ELIGIBLE AP10 PLICANT.—Only for purposes of 

11 grants to carry out the activities de12 scribed in subparagraph (E)(i), the 

13 term ‘eligible applicant’ includes an 

14 employer. 

15 ‘‘(II) ADDITIONAL REQUIRE16 MENT.—In order to qualify as an eli17 gible applicant for purposes of sub18 paragraph (E)(i), the applicant must 

19 demonstrate that the application has 

20 been developed by and will be imple21 mented by a local or regional consor22 tium that includes, at minimum, em23 ployers or employer associations, and 

24 education and training providers, in 

25 consultation with local labor organiza-
230 

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1 tions and social service providers that 

2 work with low-income families or indi3 viduals with disabilities. 

4 ‘‘(C) REQUIREMENTS.— 

5 ‘‘(i) IN GENERAL.—In awarding 

6 grants under this paragraph, the Secre7 taries shall— 

8 ‘‘(I) consider the needs of rural 

9 areas and cities with large concentra10 tions of residents with an income that 

11 is less than 150 percent of the poverty 

12 line; and 

13 ‘‘(II) ensure that— 

14 ‘‘(aa) all of the funds made 

15 available under this paragraph 

16 (other than funds reserved for 

17 use by the Secretaries under sub18 paragraph (J)) shall be used for 

19 activities described in subpara20 graph (E); 

21 ‘‘(bb) not less than 40 per22 cent of the funds made available 

23 under this paragraph (other than 

24 funds so reserved) shall be used 
231 

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1 for activities described in sub2 paragraph (E)(i); and 

3 ‘‘(cc) not less than 40 per4 cent of the funds made available 

5 under this paragraph (other than 

6 funds so reserved) shall be used 

7 for the activities described in 

8 subparagraph (E)(ii). 

9 ‘‘(ii) CONTINUATION OF AVAIL10 ABILITY.—If any portion of the funds re11 quired to be used for activities referred to 

12 in item (bb) or (cc) of clause (i)(II) are not 

13 awarded in a fiscal year, such portion shall 

14 continue to be available in the subsequent 

15 fiscal year for the same activity, in addi16 tion to other amounts that may be avail17 able for such activities for that subsequent 

18 fiscal year. 

19 ‘‘(D) DETERMINATION OF GRANT

20 AMOUNT.— 

21 ‘‘(i) IN GENERAL.—Subject to clause 

22 (ii), in determining the amount of a grant 

23 to be awarded under this paragraph for a 

24 project proposed by an eligible applicant, 

25 the Secretaries shall take into account— 
232 

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1 ‘‘(I) the number and characteris2 tics of the individuals to be served by 

3 the project; 

4 ‘‘(II) the level of unemployment 

5 in the area to be served by the 

6 project; 

7 ‘‘(III) the job opportunities and 

8 job growth in such area; 

9 ‘‘(IV) the poverty rate for such 

10 area; and 

11 ‘‘(V) such other factors as the 

12 Secretary deems appropriate in such 

13 area. 

14 ‘‘(ii) MAXIMUM AWARD FOR GRANTS

15 TO PROMOTE BUSINESS LINKAGES OR PRO16 VIDE TRANSITIONAL JOBS PROGRAMS.— 

17 ‘‘(I) IN GENERAL.—In the case 

18 of a grant to carry out activities de19 scribed in clause (i) or (ii) of subpara20 graph (E), an eligible applicant 

21 awarded a grant under this paragraph 

22 may not receive more than 

23 $10,000,000 per fiscal year under the 

24 grant. 
233 

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1 ‘‘(II) RULE OF CONSTRUC2 TION.—Nothing in subclause (I) shall 

3 be construed as precluding an other4 wise eligible applicant from receiving 

5 separate grants to carry out activities 

6 described in clause (i) or (ii) of sub7 paragraph (E). 

8 ‘‘(iii) GRANT PERIOD.—The period in 

9 which a grant awarded under this para10 graph may be used shall be specified for a 

11 period of not less than 36 months and not 

12 more than 60 months. 

13 ‘‘(E) ALLOWABLE ACTIVITIES.—An eligible 

14 applicant awarded a grant under this paragraph 

15 shall use funds provided under the grant to do 

16 the following: 

17 ‘‘(i) PROMOTE BUSINESS LINKAGES.— 

18 ‘‘(I) IN GENERAL.—To promote 

19 business linkages in which funds shall 

20 be used to fund new or expanded pro21 grams that are designed to— 

22 ‘‘(aa) substantially increase 

23 the wages of eligible individuals 

24 (as defined in subparagraph (F)), 

25 whether employed or unemployed, 
234 

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1 who have limited English pro2 ficiency or other barriers to em3 ployment by creating or upgrad4 ing job and related skills in part5 nership with employers, especially 

6 by providing supports and serv7 ices at or near worksites; and 

8 ‘‘(bb) identify and strength9 en career pathways by expanding 

10 and linking work and training 

11 opportunities for such individuals 

12 in collaboration with employers. 

13 ‘‘(II) CONSIDERATION OF IN14 KIND, IN-CASH RESOURCES.—In de15 termining which programs to fund 

16 under this clause, an eligible applicant 

17 awarded a grant under this paragraph 

18 shall consider the ability of a consor19 tium to provide funds in-kind or in20 cash (including employer-provided, 

21 paid release time) to help support the 

22 programs for which funding is sought. 

23 ‘‘(III) PRIORITY.—In deter24 mining which programs to fund under 

25 this clause, an eligible applicant 
235 

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1 awarded a grant under this paragraph 

2 shall give priority to programs that 

3 include education or training for 

4 which participants receive credit to5 ward a recognized credential, such as 

6 an occupational certificate or license. 

7 ‘‘(IV) USE OF FUNDS.— 

8 ‘‘(aa) IN GENERAL.—Funds 

9 provided to a program under this 

10 clause may be used for a com11 prehensive set of employment and 

12 training benefits and services, in13 cluding job development, job 

14 placement, workplace supports 

15 and accommodations, curricula 

16 development, wage subsidies, re17 tention services, and such other 

18 benefits or services as the pro19 gram deems necessary to achieve 

20 the overall objectives of this 

21 clause. 

22 ‘‘(bb) PROVISION OF SERV23 ICES.—So long as a program is 

24 principally designed to assist eli25 gible individuals (as defined in 
236 

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1 subparagraph (F)), funds may be 

2 provided to a program under this 

3 clause that also serves low-earn4 ing employees of 1 or more em5 ployers even if such individuals 

6 are not within the definition of 

7 eligible individual (as so defined). 

8 ‘‘(ii) PROVIDE FOR TRANSITIONAL

9 JOBS PROGRAMS.— 

10 ‘‘(I) IN GENERAL.—To provide 

11 for wage-paying transitional jobs pro12 grams which combine time-limited em13 ployment in the public or nonprofit 

14 private sector that is subsidized with 

15 public funds with skill development 

16 and activities to remove barriers to 

17 employment, pursuant to an individ18 ualized plan (or, in the case of an eli19 gible individual described in subpara20 graph (F)(i), an individual responsi21 bility plan developed for an individual 

22 under section 408(b)). Such programs 

23 also shall provide job development and 

24 placement assistance to individual 

25 participants to help them move from 
237 

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1 subsidized employment in transitional 

2 jobs into unsubsidized employment, as 

3 well as retention services after the 

4 transition to unsubsidized employ5 ment. 

6 ‘‘(II) ELIGIBLE PARTICIPANTS.— 

7 The Secretary shall ensure that indi8 viduals who participate in transitional 

9 jobs programs funded under a grant 

10 made under this paragraph shall be 

11 individuals who have been unemployed 

12 because of limited skills, experience, 

13 or other barriers to employment, and 

14 who are eligible individuals (as de15 fined in subparagraph (F)), provided 

16 that so long as a program is designed 

17 to, and principally serves, eligible indi18 viduals (as so defined), a limited num19 ber of individuals who are unemployed 

20 because of limited skills, experience, 

21 or other barriers to employment, and 

22 who have an income below 100 per23 cent of the Federal poverty line but 

24 who do not satisfy the definition of el25 igible individual (as so defined) may 
238 

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1 be served in the program to the extent 

2 the Secretaries determine that the in3 clusion of such individuals in the pro4 gram is appropriate. 

5 ‘‘(III) USE OF FUNDS.—Funds 

6 provided to a program under this 

7 clause may only be used in accordance 

8 with the following: 

9 ‘‘(aa) To create subsidized 

10 transitional jobs in which work 

11 shall be performed directly for 

12 the program operator or at other 

13 public and nonprofit organiza14 tions (in this subclause referred 

15 to as ‘worksite employers’) in the 

16 community, and in which 100 

17 percent of the wages shall be 

18 subsidized, except as described in 

19 item (ff) regarding placements in 

20 the private, for-profit sector. 

21 ‘‘(bb) Participants shall be 

22 paid at the rate paid to unsub23 sidized employees of the worksite 

24 employer who perform com25 parable work at the worksite 
239 

•S 667 PCS 

1 where the individual is placed. If 

2 no other employees perform the 

3 same or comparable work then 

4 wages shall be set, at a min5 imum, at 50 percent of the 

6 Lower Living Standard Income 

7 Level (commonly referred to as 

8 the ‘LLSIL’), as determined 

9 under section 101(24) of the 

10 Workforce Investment Act of 

11 1998 (29 U.S.C. 2801(24)), for a 

12 family of 3 based on 35 hours 

13 per week. 

14 ‘‘(cc) Transitional jobs shall 

15 be limited to not less than 6 

16 months and not more than 24 

17 months, however, nothing shall 

18 preclude a participant from mov19 ing into unsubsidized employ20 ment at a point prior to the max21 imum duration of the transitional 

22 job placement. Participants shall 

23 be paid wages based on a work24 week of not less than 30 hours 

25 per week or more than 40 hours 
240 

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1 per week, except that a parent of 

2 a child under the age of 6, a 

3 child who is disabled, or a child 

4 with other special needs, or an 

5 individual who for other reasons 

6 cannot successfully participate 

7 for 30 to 40 hours per week, may 

8 be allowed to participate for more 

9 limited hours, but not less than 

10 20 hours per week. In any work 

11 week, 50 percent to 80 percent of 

12 hours shall be spent in the tran13 sitional job and 20 percent to 50 

14 percent of hours shall be spent in 

15 education or training, or other 

16 services designed to reduce or 

17 eliminate any barriers. 

18 ‘‘(dd) Program operators 

19 shall provide case management 

20 services and ensure access to ap21 propriate education, training, and 

22 other services, including job ac23 commodation, work supports, and 

24 supported employment, as appro25 priate and consistent with an in-
241 

•S 667 PCS 

1 dividual employment plan (unless 

2 the individual already has an em3 ployment plan developed by the 

4 appropriate State agency with re5 sponsibility for the administra6 tion of the State program funded 

7 under this part or the State 

8 workforce investment board es9 tablished under section 111 of 

10 the Workforce Investment Act of 

11 1998 (29 U.S.C. 2821)) that is 

12 based on the individual’s 

13 strengths, resources, priorities, 

14 concerns, abilities, capabilities, 

15 career interests, and informed 

16 choice and that is developed with 

17 each participant. The goal of 

18 each participant’s plan shall 

19 focus on preparation for unsub20 sidized jobs in demand in the 

21 local economy which offer the po22 tential for advancement and 

23 growth. Services shall also in24 clude job placement assistance 

25 and retention services for 12 
242 

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1 months after entry into unsub2 sidized placement. Participants 

3 shall also receive support services 

4 such as subsidized child care and 

5 transportation, on the same basis 

6 as those services are made avail7 able to recipients of assistance 

8 under the State program funded 

9 under this part who are engaged 

10 in work-related activities. 

11 ‘‘(ee) Providers shall work 

12 with individual recipients to de13 termine eligibility for other em14 ployment-related supports which 

15 may include (but are not limited 

16 to) supported employment, other 

17 vocational rehabilitation services, 

18 and programs or services avail19 able under the Workforce Invest20 ment Act of 1998 (29 U.S.C. 

21 2801 et seq.), or the ticket to 

22 work and self-sufficiency program 

23 established under section 1148, 

24 and, to the extent possible, shall 

25 provide transitional employment 
243 

•S 667 PCS 

1 in collaboration with entities pro2 viding, or arranging for the pro3 vision of, such other supports. 

‘‘(ff) Not more than 1 4 ⁄3 of 

5 the placements for a grantee 

6 shall be with a private for-profit 

company, except that such 1 7 ⁄3

8 limit may be waived by the Sec9 retary for programs in rural 

10 areas when the grantee can dem11 onstrate insufficient public and 

12 non-profit worksites. When a 

13 placement is made at a private 

14 for-profit company, the company 

15 shall pay 50 percent of program 

16 costs (including wages) for each 

17 participant, and the company 

18 shall agree, in writing, to hire 

19 each participant into an unsub20 sidized position at the completion 

21 of the agreed upon subsidized 

22 placement, or sooner, provided 

23 that the participant’s job per24 formance has been satisfactory. 
244 

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1 ‘‘(gg) Subject to item (hh), 

2 not more than 15 percent of the 

3 workforce of a private for-profit 

4 company may be composed of 

5 transitional jobs participants. 

6 ‘‘(hh) Notwithstanding item 

7 (gg), no employer shall be pre8 cluded from employing up to 2 

9 transitional jobs participants. 

10 ‘‘(IV) DEFINITION OF TRANSI11 TIONAL JOBS PROGRAM.—In this 

12 clause, the term ‘transitional jobs pro13 gram’ means a program that is in14 tended to serve current and former re15 cipients of assistance under a State or 

16 tribal program funded under this part 

17 and other low-income individuals who 

18 have been unable to secure employ19 ment through job search or other em20 ployment-related services because of 

21 limited skills, experience, or other bar22 riers to employment. 

23 ‘‘(iii) LIMITATION ON ADMINISTRA24 TIVE EXPENDITURES.—Not more than 5 

25 percent of the funds awarded to an eligible 
245 

•S 667 PCS 

1 applicant under clause (i) or (ii) may be 

2 used for administrative expenditures in3 curred in carrying out the activities de4 scribed in clause (i) or (ii) or for expendi5 tures related to carrying out the assess6 ments and reports required under subpara7 graph (H). 

8 ‘‘(F) DEFINITION OF ELIGIBLE INDI9 VIDUAL.—In this paragraph, the term ‘eligible 

10 individual’ means— 

11 ‘‘(i) an individual who is a parent who 

12 is a recipient of assistance under a State 

13 or tribal program funded under this part; 

14 ‘‘(ii) an individual who is a parent 

15 who has ceased to receive assistance under 

16 such a State or tribal program; 

17 ‘‘(iii) an individual who is at risk of 

18 receiving assistance under a State or tribal 

19 program funded under this part; 

20 ‘‘(iv) an individual with a disability; or 

21 ‘‘(v) a noncustodial parent who is un22 employed, or is having difficulty in paying 

23 child support obligations, including such a 

24 parent who is a former criminal offender. 
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1 ‘‘(G) APPLICATION.—Each eligible appli2 cant desiring a grant under this paragraph 

3 shall submit an application to the Secretaries at 

4 such time, in such manner, and accompanied by 

5 such information as the Secretaries may re6 quire. 

7 ‘‘(H) ASSESSMENTS AND REPORTS BY

8 GRANTEES.— 

9 ‘‘(i) IN GENERAL.—An eligible appli10 cant that receives a grant under this para11 graph shall assess and report on the out12 comes of programs funded under the 

13 grant, including the identity of each pro14 gram operator, demographic information 

15 about each participant, including education 

16 level, literacy level, prior work experience 

17 and identified barriers to employment, the 

18 nature of education, training, or other 

19 services received by the participant, the 

20 reason for the participant’s leaving the 

21 program, and outcomes related to the 

22 placement of the participant in an unsub23 sidized job, including 1-year employment 

24 retention, wage at placement, benefits, and 
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1 earnings progression, as specified by the 

2 Secretaries. 

3 ‘‘(ii) ASSISTANCE.—The Secretaries 

4 shall— 

5 ‘‘(I) assist grantees in conducting 

6 the assessment required under clause 

7 (i) by making available where prac8 ticable low-cost means of tracking the 

9 labor market outcomes of partici10 pants; and 

11 ‘‘(II) encourage States to provide 

12 such assistance. 

13 ‘‘(I) APPLICATION TO REQUIREMENTS OF

14 THE STATE PROGRAM.— 

15 ‘‘(i) PARTICIPATION NOT CONSIDERED

16 ASSISTANCE.—A benefit or service pro17 vided with funds made available under a 

18 grant made under this paragraph shall not 

19 be considered assistance for any purpose 

20 under a State or tribal program funded 

21 under this part. 

22 ‘‘(ii) GENERAL RULES GOVERNING

23 USE OF FUNDS.—The rules of section 404, 

24 other than subsection (b) of that section, 
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1 shall not apply to a grant made under this 

2 paragraph. 

3 ‘‘(J) ASSESSMENTS BY THE SECRE4 TARIES.— 

5 ‘‘(i) RESERVATION OF FUNDS.—Of 

6 the amount appropriated to carry out this 

7 paragraph for each of fiscal years 2006 

8 and 2007, $3,000,000 of such amount for 

9 each such fiscal year is reserved for use by 

10 the Secretaries to prepare an interim and 

11 final report summarizing and synthesizing 

12 outcomes and lessons learned from the 

13 programs funded through grants awarded 

14 under this paragraph. 

15 ‘‘(ii) INTERIM AND FINAL ASSESS16 MENTS.—With respect to the reports pre17 pared under clause (i), the Secretaries 

18 shall submit— 

19 ‘‘(I) the interim report not later 

20 than 4 years after the date of enact21 ment of the Personal Responsibility 

22 and Individual Development for Ev23 eryone Act; and 
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1 ‘‘(II) the final report not later 

2 than 6 years after such date of enact3 ment. 

4 ‘‘(K) EVALUATIONS.— 

5 ‘‘(i) RESERVATION OF FUNDS.—Of 

6 the amount appropriated to carry out this 

7 paragraph for a fiscal year, an amount 

8 equal to 1.5 percent of such amount for 

9 each such fiscal year shall be reserved for 

10 use by the Secretaries to conduct evalua11 tions in accordance with the requirements 

12 of clause (ii). 

13 ‘‘(ii) REQUIREMENTS.—The Secre14 taries— 

15 ‘‘(I) shall develop a plan to evalu16 ate the extent to which programs 

17 funded under grants made under this 

18 paragraph have been effective in pro19 moting sustained, unsubsidized em20 ployment for each group of eligible 

21 participants, and in improving the 

22 skills and wages of participants in 

23 comparison to the participants’ skills 

24 and wages prior to participation in 

25 the programs; 
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1 ‘‘(II) may evaluate the use of 

2 such a grant by a grantee, as the Sec3 retaries deem appropriate, in accord4 ance with an agreement entered into 

5 with the grantee after good-faith ne6 gotiations; and 

7 ‘‘(III) shall include, as appro8 priate, the following outcome meas9 ures in the evaluation plan developed 

10 under subclause (I): 

11 ‘‘(aa) Placements in unsub12 sidized employment. 

13 ‘‘(bb) Retention in unsub14 sidized employment 6 months 

15 and 12 months after initial place16 ment. 

17 ‘‘(cc) Earnings of individuals 

18 at the time of placement in un19 subsidized employment. 

20 ‘‘(dd) Earnings of individ21 uals 12 months after placement 

22 in unsubsidized employment. 

23 ‘‘(ee) The extent to which 

24 unsubsidized job placements in25 clude access to affordable em-
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1 ployer-sponsored health insurance 

2 and paid leave benefits. 

3 ‘‘(ff) Comparison of pre4 and post-program wage rates of 

5 participants. 

6 ‘‘(gg) Comparison of pre7 and post-program skill levels of 

8 participants. 

9 ‘‘(hh) Wage growth and em10 ployment retention in relation to 

11 occupations and industries at ini12 tial placement in unsubsidized 

13 employment and over the first 12 

14 months after initial placement. 

15 ‘‘(ii) Recipient of cash as16 sistance under the State program 

17 funded under this part. 

18 ‘‘(jj) Average expenditures 

19 per participant. 

20 ‘‘(iii) REPORTS TO CONGRESS.—The 

21 Secretaries shall submit to Congress the 

22 following reports on the evaluations of pro23 grams funded under grants made under 

24 this paragraph: 
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1 ‘‘(I) INTERIM REPORT.—An in2 terim report not later than 4 years 

3 after the date of enactment of the 

4 Personal Responsibility and Individual 

5 Development for Everyone Act. 

6 ‘‘(II) FINAL REPORT.—A final 

7 report not later than 6 years after 

8 such date of enactment. 

9 ‘‘(L) AUTHORIZATION OF APPROPRIA10 TIONS.— 

11 ‘‘(i) IN GENERAL.—There is author12 ized to be appropriated for the purpose of 

13 carrying out this paragraph, $200,000,000 

14 for each of fiscal years 2006 through 

15 2010. 

16 ‘‘(ii) AVAILABILITY.—Amounts appro17 priated in accordance with clause (i) for a 

18 fiscal year shall remain available for obli19 gation for 5 fiscal years after the fiscal 

20 year in which the amount is appro21 priated.’’. 

22 (2) NONDISPLACEMENT IN WORK ACTIVITIES.— 

23 Section 407(f) (42 U.S.C. 607(f)) is amended to 

24 read as follows: 

25 ‘‘(f) NONDISPLACEMENT.— 
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1 ‘‘(1) IN GENERAL.—An adult in a family receiv2 ing assistance under a State program funded under 

3 this part, in order to engage in a work activity, shall 

4 not displace any employee or position (including par5 tial displacement, such as a reduction in the hours 

6 of nonovertime work, wages, or employment bene7 fits), fill any unfilled vacancy, or perform work when 

8 any individual is on layoff from the same or substan9 tially equivalent job. 

10 ‘‘(2) PROHIBITIONS.—A work activity engaged 

11 in under a program operated with funds provided 

12 under this part shall not impair any existing con13 tract for services, be inconsistent with any existing 

14 law, regulation, or collective bargaining agreement, 

15 or infringe upon the recall rights or promotional op16 portunities of any worker. 

17 ‘‘(3) NO SUPPLANTING OF OTHER HIRES.—A 

18 work activity engaged in under a program operated 

19 with funds provided under this part shall be in addi20 tion to any activity that otherwise would be available 

21 and shall not supplant the hiring of an employed 

22 worker not funded under such program. 

23 ‘‘(4) ENFORCING ANTIDISPLACEMENT PROTEC24 TIONS.— 
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1 ‘‘(A) IN GENERAL.—The State shall estab2 lish and maintain an impartial grievance proce3 dure, which shall include the opportunity for a 

4 hearing, to resolve any complaints alleging vio5 lations of the requirements of paragraph (1), 

6 (2), or (3) within 60 days of receipt of the com7 plaint and, if a decision is adverse to the party 

8 who filed such grievance or no decision has 

9 been reached, provide for the completion of an 

10 arbitration procedure within 75 days of receipt 

11 of the complaint or the adverse decision or con12 clusion of the 60-day period, whichever is ear13 lier. 

14 ‘‘(B) APPEALS.—Appeals may be made to 

15 the Secretary who shall make a decision within 

16 75 days of receipt of an appeal. 

17 ‘‘(C) REMEDIES.—Remedies for a violation 

18 of the requirements of paragraph (1), (2), or 

19 (3) shall include— 

20 ‘‘(i) suspension or termination of pay21 ments from funds provided under this 

22 part; 

23 ‘‘(ii) prohibition of placement of a 

24 participant with an employer that has vio25 lated paragraph (1), (2), or (3); 
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1 ‘‘(iii) where applicable, reinstatement 

2 of an employee, payment of lost wages and 

3 benefits, and reestablishment of other rel4 evant terms, conditions and privileges of 

5 employment; and 

6 ‘‘(iv) where appropriate, other equi7 table relief. 

8 ‘‘(D) LIMITATION ON PLACEMENT.—If a 

9 grievance is filed regarding a proposed place10 ment of a participant, such placement shall not 

11 be made unless such placement is consistent 

12 with the resolution of the grievance pursuant to 

13 this paragraph. 

14 ‘‘(E) NON-EXCLUSIVE PROCEDURES.—The 

15 grievance procedures specified in this paragraph 

16 are not exclusive, and an aggrieved employee or 

17 participant in a program funded under a grant 

18 made under this part may pursue other rem19 edies or procedures available under applicable 

20 contracts, collective bargaining agreements, or 

21 Federal, State, or local laws. 

22 ‘‘(E) NO PREEMPTION.—The provisions of 

23 this subsection shall not be construed to pre24 empt any provision of State or local law that af25 fords greater protections to employees or to 
256 

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1 other participants engaged in work activities 

2 under a program funded under this part than 

3 is afforded by the provisions of this sub4 section.’’. 

5 (d) TEEN PREGNANCY PREVENTION RESOURCE

6 CENTER.—Section 413 (42 U.S.C. 613), as amended by 

7 section 114(f), is amended by adding at the end the fol8 lowing: 

9 ‘‘(q) TEEN PREGNANCY PREVENTION RESOURCE

10 CENTER.— 

11 ‘‘(1) AUTHORITY.— 

12 ‘‘(A) IN GENERAL.—The Secretary shall 

13 make a grant to 1 nationally recognized, non14 partisan, nonprofit organization that meets the 

15 requirements described in subparagraph (B) to 

16 establish and operate a national teen pregnancy 

17 prevention resource center (in this subsection 

18 referred to as the ‘Resource Center’) to carry 

19 out the purposes and activities described in 

20 paragraph (2). 

21 ‘‘(B) REQUIREMENTS.—The requirements 

22 described in this subparagraph are the fol23 lowing: 

24 ‘‘(i) The organization focuses exclu25 sively on preventing teen pregnancy and 
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1 has at least 9 years of experience in work2 ing with diverse sectors of society to reduce 

3 teen pregnancy. 

4 ‘‘(ii) The organization has a dem5 onstrated ability to work with, and provide 

6 assistance to, a broad range of individuals 

7 and entities with a variety of perspectives, 

8 including teens and youth leaders, parents, 

9 the entertainment and news media, State, 

10 tribal, and local organizations, networks of 

11 teen pregnancy prevention practitioners, 

12 businesses, faith and community leaders, 

13 and researchers. 

14 ‘‘(iii) The organization is research15 based and has capabilities in scientific 

16 analysis and evaluation. 

17 ‘‘(iv) The organization has com18 prehensive knowledge and data about teen 

19 pregnancy prevention strategies. 

20 ‘‘(v) The organization has experience 

21 carrying out activities similar to the activi22 ties described in paragraph (2)(B). 

23 ‘‘(2) PURPOSES AND ACTIVITIES.— 

24 ‘‘(A) PURPOSES.—The purposes of the Re25 source Center are to improve the well-being of 
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1 children and families and encourage young peo2 ple to delay pregnancy until marriage. Specifi3 cally, the Resource Center shall— 

4 ‘‘(i) provide information and technical 

5 assistance to States, Indian tribes, local 

6 communities, and other public or private 

7 organizations seeking to reduce rates of 

8 teen pregnancy; 

9 ‘‘(ii) support parents in their essential 

10 role in preventing teen pregnancy by equip11 ping them with information and resources 

12 to promote and strengthen communication 

13 with their children about sex, values, and 

14 positive relationships, including healthy 

15 marriage; and 

16 ‘‘(iii) assist the entertainment media 

17 industry by providing information and en18 couraging the industry to develop content 

19 and messages for teens and adults that can 

20 help prevent teen pregnancy. 

21 ‘‘(B) ACTIVITIES.—The Resource Center 

22 shall carry out the purposes described in sub23 paragraph (A) through the following activities: 

24 ‘‘(i) Synthesizing and disseminating 

25 research and information regarding effec-
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1 tive and promising practices, and providing 

2 information on how to design and imple3 ment effective strategies to prevent teen 

4 pregnancy. 

5 ‘‘(ii) Providing information and reach6 ing out to diverse populations, with par7 ticular attention to areas and populations 

8 with the highest rates of teen pregnancy. 

9 ‘‘(iii) Helping States, local commu10 nities, and other organizations increase 

11 their knowledge of existing resources that 

12 can be used to advance teen pregnancy 

13 prevention efforts, and build their capacity 

14 to access such resources and develop part15 nerships with other programs and funding 

16 streams. 

17 ‘‘(iv) Raising awareness of the impor18 tance of increasing the proportion of chil19 dren born to, and raised in, healthy, adult 

20 marriages. 

21 ‘‘(v) Linking organizations working to 

22 reduce teen pregnancy with experts and 

23 peers, including the creation of technical 

24 assistance networks that use cost-effective 
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1 and efficient communication tools (such as 

2 the Internet). 

3 ‘‘(vi) Providing consultation and re4 sources about how to reduce teen preg5 nancy to various sectors of society includ6 ing parents, other adults (such as teachers, 

7 coaches, and mentors), community and 

8 faith-based groups, the entertainment and 

9 news media, businesses, and teens them10 selves, through a broad array of strategies 

11 and messages, including a focus on absti12 nence, responsible behavior, family commu13 nication, relationships, and values. 

14 ‘‘(vii) Assisting organizations seeking 

15 to reduce teen pregnancy in their efforts to 

16 communicate effective messages about pre17 venting teen pregnancy with a variety of 

18 audiences (including teens, parents, and 

19 ethnically diverse groups). 

20 ‘‘(viii) Providing resources for parents 

21 and other adults that help to foster strong 

22 relationships with children, a strategy that 

23 research has shown is effective in reducing 

24 sexual activity and teen pregnancy, includ25 ing online access to research, parent 
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1 guides, tips, advice from experts, and in2 formation about the media environment of 

3 teens. 

4 ‘‘(ix) Working directly with individ5 uals and organizations in the entertain6 ment industry to provide consultation and 

7 serve as a source of factual information on 

8 issues related to teen pregnancy preven9 tion. 

10 ‘‘(3) COLLABORATION WITH OTHER ORGANIZA11 TIONS.—The organization operating the Resource 

12 Center shall collaborate with other organizations 

13 that have expertise and interest in teen pregnancy 

14 prevention, and that can help reach out to diverse 

15 audiences. 

16 ‘‘(4) APPROPRIATION.—Out of any money in 

17 the Treasury of the United States not otherwise ap18 propriated, there is appropriated to carry out this 

19 subsection, $5,000,000 for fiscal year 2006. Funds 

20 appropriated under this subparagraph shall remain 

21 available for expenditure through fiscal year 2010.’’. 

22 SEC. 120. TECHNICAL CORRECTIONS. 

23 (a) Section 409(c)(2)(A) (42 U.S.C. 609(c)(2)(A)), 

24 as added by section 111(b)(1), is amended by inserting 

25 a comma after ‘‘appropriate’’. 
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1 (b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. 

2 611(a)(1)(A)(ii)(III)) is amended by striking the last close 

3 parenthesis. 

4 (c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is 

5 amended by striking ‘‘section’’ and inserting ‘‘sections’’. 

6 (d)(1) Section 413 (42 U.S.C. 613) is amended by 

7 striking subsection (g) and redesignating subsections (h) 

8 through (j) and subsections (k) through (q) (as added by 

9 sections 101(d), 103(c), subsections (a), (d), (e), and (f) 

10 of section 114, and section 119(d) of this Act, respec11 tively) as subsections (g) through (p), respectively. 

12 (2) Each of the following provisions is amended by 

13 striking ‘‘413(j)’’ and inserting ‘‘413(i)’’: 

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

15 603(a)(5)(A)(ii)(III)). 

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

17 603(a)(5)(F)). 

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

19 603(a)(5)(G)(ii)). 

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

21 612(a)(3)(B)(iv)). 
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1 TITLE II—ABSTINENCE 

2 EDUCATION 

3 SEC. 201. EXTENSION OF ABSTINENCE EDUCATION PRO4 GRAM. 

5 (a) EXTENSION OF APPROPRIATIONS.—Section 

6 510(d) (42 U.S.C. 710(d)) is amended by striking ‘‘2003’’ 

7 and inserting ‘‘2010’’. 

8 (b) ALLOTMENT OF FUNDS.—Section 510(a) (42 

9 U.S.C. 710(a)) is amended— 

10 (1) in the matter preceding paragraph (1), by 

11 striking ‘‘an application for the fiscal year under 

12 section 505(a)’’ and inserting ‘‘, for the fiscal year, 

13 an application under section 505(a), and an applica14 tion under this section (in such form and meeting 

15 such terms and conditions as determined appropriate 

16 by the Secretary),’’; and 

17 (2) in paragraph (2), to read as follows: 

18 ‘‘(2) the percentage described in section 

19 502(c)(1)(B)(ii) that would be determined for the 

20 State under section 502(c) if such determination 

21 took into consideration only those States that trans22 mitted both such applications for such fiscal year.’’. 

23 (c) REALLOTMENT OF FUNDS.—Section 510 (42 

24 U.S.C. 710) is amended by adding at the end the fol25 lowing: 
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1 ‘‘(e)(1) With respect to allotments under subsection 

2 (a) for fiscal year 2006 and subsequent fiscal years, the 

3 amount of any allotment to a State for a fiscal year that 

4 the Secretary determines will not be expended to carry out 

5 a program under this section during such fiscal year or 

6 the succeeding fiscal year shall be available for reallotment 

7 from time to time during such fiscal years on such dates 

8 as the Secretary may fix, to other States that the Sec9 retary determines— 

10 ‘‘(A) require amounts in excess of amounts pre11 viously allotted under subsection (a) to carry out a 

12 program under this section; and 

13 ‘‘(B) will expend such excess amounts during 

14 such fiscal years. 

15 ‘‘(2) Reallotments under paragraph (1) shall be made 

16 on the basis of such States’ applications under this sec17 tion, after taking into consideration the population of low18 income children in each such State as compared with the 

19 population of low-income children in all such States with 

20 respect to which a determination under paragraph (1) has 

21 been made by the Secretary. 

22 ‘‘(3) Any amount reallotted under paragraph (1) to 

23 a State is deemed to be part of its allotment under sub24 section (a).’’. 
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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall be effective with respect to the program 

3 under section 510 of the Social Security Act for fiscal 

4 years 2006 and succeeding fiscal years. 

5 TITLE III—CHILD SUPPORT 

6 SEC. 301. DISTRIBUTION OF CHILD SUPPORT COLLECTED 

7 BY STATES ON BEHALF OF CHILDREN RE8 CEIVING CERTAIN WELFARE BENEFITS. 

9 (a) MODIFICATION OF RULE REQUIRING ASSIGN10 MENT OF SUPPORT RIGHTS AS A CONDITION OF RECEIV11 ING TANF.—Section 408(a)(3) (42 U.S.C. 608(a)(3)) is 

12 amended to read as follows: 

13 ‘‘(3) NO ASSISTANCE FOR FAMILIES NOT AS14 SIGNING CERTAIN SUPPORT RIGHTS TO THE

15 STATE.—A State to which a grant is made under 

16 section 403 shall require, as a condition of paying 

17 assistance to a family under the State program 

18 funded under this part, that a member of the family 

19 assign to the State any right the family member 

20 may have (on behalf of the family member or of any 

21 other person for whom the family member has ap22 plied for or is receiving such assistance) to support 

23 from any other person, not exceeding the total 

24 amount of assistance so paid to the family, which ac-
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1 crues during the period that the family receives as2 sistance under the program.’’. 

3 (b) INCREASING CHILD SUPPORT PAYMENTS TO

4 FAMILIES AND SIMPLIFYING CHILD SUPPORT DISTRIBU5 TION RULES.— 

6 (1) DISTRIBUTION RULES.— 

7 (A) IN GENERAL.—Section 457(a) (42 

8 U.S.C. 657(a)) is amended to read as follows: 

9 ‘‘(a) IN GENERAL.—Subject to subsections (d) and 

10 (e), the amounts collected on behalf of a family as support 

11 by a State pursuant to a plan approved under this part 

12 shall be distributed as follows: 

13 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the 

14 case of a family receiving assistance from the State, 

15 the State shall— 

16 ‘‘(A) pay to the Federal Government the 

17 Federal share of the amount collected, subject 

18 to paragraph (3)(A); 

19 ‘‘(B) retain, or pay to the family, the State 

20 share of the amount collected, subject to para21 graph (3)(B); and 

22 ‘‘(C) pay to the family any remaining 

23 amount. 
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1 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS2 SISTANCE.—In the case of a family that formerly re3 ceived assistance from the State: 

4 ‘‘(A) CURRENT SUPPORT.—To the extent 

5 that the amount collected does not exceed the 

6 current support amount, the State shall pay the 

7 amount to the family. 

8 ‘‘(B) ARREARAGES.—Except as otherwise 

9 provided in an election made under section 

10 454(34), to the extent that the amount col11 lected exceeds the current support amount, the 

12 State— 

13 ‘‘(i) shall first pay to the family the 

14 excess amount, to the extent necessary to 

15 satisfy support arrearages not assigned 

16 pursuant to section 408(a)(3); 

17 ‘‘(ii) if the amount collected exceeds 

18 the amount required to be paid to the fam19 ily under clause (i), shall— 

20 ‘‘(I) pay to the Federal Govern21 ment the Federal share of the excess 

22 amount described in this clause, sub23 ject to paragraph (3)(A); and 

24 ‘‘(II) retain, or pay to the family, 

25 the State share of the excess amount 
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1 described in this clause, subject to 

2 paragraph (3)(B); and 

3 ‘‘(iii) shall pay to the family any re4 maining amount. 

5 ‘‘(3) LIMITATIONS.— 

6 ‘‘(A) FEDERAL REIMBURSEMENTS.—The 

7 total of the amounts paid by the State to the 

8 Federal Government under paragraphs (1) and 

9 (2) of this subsection with respect to a family 

10 shall not exceed the Federal share of the 

11 amount assigned with respect to the family pur12 suant to section 408(a)(3). 

13 ‘‘(B) STATE REIMBURSEMENTS.—The 

14 total of the amounts retained by the State 

15 under paragraphs (1) and (2) of this subsection 

16 with respect to a family shall not exceed the 

17 State share of the amount assigned with respect 

18 to the family pursuant to section 408(a)(3). 

19 ‘‘(4) FAMILIES THAT NEVER RECEIVED ASSIST20 ANCE.—In the case of any other family, the State 

21 shall pay the amount collected to the family. 

22 ‘‘(5) FAMILIES UNDER CERTAIN AGREE23 MENTS.—Notwithstanding paragraphs (1) through 

24 (3), in the case of an amount collected for a family 

25 in accordance with a cooperative agreement under 
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1 section 454(33), the State shall distribute the 

2 amount collected pursuant to the terms of the agree3 ment. 

4 ‘‘(6) STATE FINANCING OPTIONS.—To the ex5 tent that the State’s share of the amount payable to 

6 a family pursuant to paragraph (2)(B) of this sub7 section exceeds the amount that the State estimates 

8 (under procedures approved by the Secretary) would 

9 have been payable to the family pursuant to former 

10 section 457(a)(2)(B) (as in effect for the State im11 mediately before the date this subsection first ap12 plies to the State) if such former section had re13 mained in effect, the State may elect to have the 

14 payment considered a qualified State expenditure for 

15 purposes of section 409(a)(7). 

16 ‘‘(7) STATE OPTION TO PASS THROUGH ADDI17 TIONAL SUPPORT WITH FEDERAL FINANCIAL PAR18 TICIPATION.— 

19 ‘‘(A) FAMILIES THAT FORMERLY RE20 CEIVED ASSISTANCE.—Notwithstanding para21 graph (2), a State shall not be required to pay 

22 to the Federal Government the Federal share of 

23 an amount collected on behalf of a family that 

24 formerly received assistance from the State to 
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1 the extent that the State pays the amount to 

2 the family. 

3 ‘‘(B) FAMILIES THAT CURRENTLY RE4 CEIVE ASSISTANCE.— 

5 ‘‘(i) IN GENERAL.—Notwithstanding 

6 paragraph (1), in the case of a family that 

7 receives assistance from the State, a State 

8 shall not be required to pay to the Federal 

9 Government the Federal share of the ex10 cepted portion (as defined in clause (ii)) of 

11 any amount collected on behalf of such 

12 family during a month to the extent that— 

13 ‘‘(I) the State pays the excepted 

14 portion to the family; and 

15 ‘‘(II) the excepted portion is dis16 regarded in determining the amount 

17 and type of assistance provided to the 

18 family under such program. 

19 ‘‘(ii) EXCEPTED PORTION DEFINED.— 

20 For purposes of this subparagraph, the 

21 term ‘excepted portion’ means that portion 

22 of the amount collected on behalf of a fam23 ily during a month that does not exceed 

24 $400 per month, or in the case of a family 

25 that includes 2 or more children, that does 
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1 not exceed an amount established by the 

2 State that is not more than $600 per 

3 month. 

4 ‘‘(8) STATES WITH DEMONSTRATION WAIV5 ERS.—Notwithstanding the preceding paragraphs, in 

6 the case of a State that, on the date of enactment 

7 of this paragraph, has had in effect since October 1, 

8 1997, a waiver under section 1115 permitting pass9 through payments of child support collections— 

10 ‘‘(A) the State may continue to distribute 

11 such payments to families without regard to the 

12 expiration date of such waiver; and 

13 ‘‘(B) the requirement under paragraph (1) 

14 to pay to the Federal Government the Federal 

15 share of the amount collected on behalf of a 

16 family shall not apply to the extent that— 

17 ‘‘(i) the State distributes such amount 

18 to the family; and 

19 ‘‘(ii) such amount is disregarded in 

20 determining the amount and type of assist21 ance paid to the family.’’. 

22 (B) STATE PLAN TO INCLUDE ELECTION

23 AS TO WHICH RULES TO APPLY IN DISTRIB24 UTING CHILD SUPPORT ARREARAGES COL25 LECTED ON BEHALF OF FAMILIES FORMERLY
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1 RECEIVING ASSISTANCE.—Section 454 (42 

2 U.S.C. 654) is amended— 

3 (i) by striking ‘‘and’’ at the end of 

4 paragraph (32); 

5 (ii) by striking the period at the end 

6 of paragraph (33) and inserting ‘‘; and’’; 

7 and 

8 (iii) by inserting after paragraph (33) 

9 the following: 

10 ‘‘(34) include an election by the State to apply 

11 section 457(a)(2)(B) of this Act or former section 

12 457(a)(2)(B) of this Act (as in effect for the State 

13 immediately before the date this paragraph first ap14 plies to the State) to the distribution of the amounts 

15 which are the subject of such sections and, for so 

16 long as the State elects to so apply such former sec17 tion, the amendments made by section 301(d)(1) of 

18 the Personal Responsibility and Individual Develop19 ment for Everyone Act shall not apply with respect 

20 to the State, notwithstanding section 301(e) of that 

21 Act.’’. 

22 (C) APPROVAL OF ESTIMATION PROCE23 DURES.—Not later than the date that is 6 

24 months after the date of enactment of this Act, 

25 the Secretary of Health and Human Services, 
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1 in consultation with the States (as defined for 

2 purposes of part D of title IV of the Social Se3 curity Act (42 U.S.C. 651 et seq.)), shall estab4 lish the procedures to be used to make the esti5 mate described in section 457(a)(6) of such Act 

6 (42 U.S.C. 657(a)(6)). 

7 (2) CURRENT SUPPORT AMOUNT DEFINED.— 

8 Section 457(c) (42 U.S.C. 657(c)) is amended by 

9 adding at the end the following: 

10 ‘‘(5) CURRENT SUPPORT AMOUNT.—The term 

11 ‘current support amount’ means, with respect to 

12 amounts collected as support on behalf of a family, 

13 the amount designated as the monthly support obli14 gation of the noncustodial parent in the order re15 quiring the support or calculated by the State based 

16 on such order.’’. 

17 (c) STATE OPTION TO DISCONTINUE OLDER SUP18 PORT ASSIGNMENTS.—Section 457(b) (42 U.S.C. 657(b)) 

19 is amended to read as follows: 

20 ‘‘(b) CONTINUATION OF ASSIGNMENTS.— 

21 ‘‘(1) STATE OPTION TO DISCONTINUE PRE-1997

22 SUPPORT ASSIGNMENTS.— 

23 ‘‘(A) IN GENERAL.—Any rights to support 

24 obligations assigned to a State as a condition of 

25 receiving assistance from the State under part 
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1 A and in effect on September 30, 1997 (or such 

2 earlier date on or after August 22, 1996, as the 

3 State may choose), may remain assigned after 

4 such date. 

5 ‘‘(B) DISTRIBUTION OF AMOUNTS AFTER

6 ASSIGNMENT DISCONTINUATION.—If a State 

7 chooses to discontinue the assignment of a sup8 port obligation described in subparagraph (A), 

9 the State may treat amounts collected pursuant 

10 to such assignment as if such amounts had 

11 never been assigned and may distribute such 

12 amounts to the family in accordance with sub13 section (a)(4). 

14 ‘‘(2) STATE OPTION TO DISCONTINUE POST-1997

15 ASSIGNMENTS.— 

16 ‘‘(A) IN GENERAL.—Any rights to support 

17 obligations accruing before the date on which a 

18 family first receives assistance under part A 

19 that are assigned to a State under that part 

20 and in effect before the implementation date of 

21 this section may remain assigned after such 

22 date. 

23 ‘‘(B) DISTRIBUTION OF AMOUNTS AFTER

24 ASSIGNMENT DISCONTINUATION.—If a State 

25 chooses to discontinue the assignment of a sup-
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1 port obligation described in subparagraph (A), 

2 the State may treat amounts collected pursuant 

3 to such assignment as if such amounts had 

4 never been assigned and may distribute such 

5 amounts to the family in accordance with sub6 section (a)(4).’’. 

7 (d) CONFORMING AMENDMENTS.— 

8 (1) Section 409(a)(7)(B)(i) (42 U.S.C. 

9 609(a)(7)(B)(i)), as amended by section 103(c), is 

10 amended— 

11 (A) in subclause (I)(aa), by striking 

12 ‘‘457(a)(1)(B)’’ and inserting ‘‘457(a)(1)’’; and 

13 (B) by adding at the end the following: 

14 ‘‘(VI) PORTIONS OF CERTAIN

15 CHILD SUPPORT PAYMENTS COL16 LECTED ON BEHALF OF AND DISTRIB17 UTED TO FAMILIES NO LONGER RE18 CEIVING ASSISTANCE.—Any amount 

19 paid by a State pursuant to clause (i) 

20 or (ii) of section 457(a)(2)(B), but 

21 only to the extent that the State prop22 erly elects under section 457(a)(6) to 

23 have the payment considered a quali24 fied State expenditure.’’. 
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1 (2) Section 6402(c) of the Internal Revenue 

2 Code of 1986 (relating to offset of past-due support 

3 against overpayments) is amended— 

4 (A) in the first sentence, by striking ‘‘the 

5 Social Security Act.’’ and inserting ‘‘of such 

6 Act.’’; and 

7 (B) by striking the third sentence and in8 serting the following: ‘‘The Secretary shall 

9 apply a reduction under this subsection first to 

10 an amount certified by the State as past due 

11 support under section 464 of the Social Secu12 rity Act before any other reductions allowed by 

13 law.’’. 

14 (e) EFFECTIVE DATE.— 

15 (1) IN GENERAL.—The amendments made by 

16 this section shall take effect on October 1, 2009, 

17 and shall apply to payments under parts A and D 

18 of title IV of the Social Security Act for calendar 

19 quarters beginning on or after such date, and with20 out regard to whether regulations to implement such 

21 amendments (in the case of State programs operated 

22 under such part D) are promulgated by such date. 

23 (2) STATE OPTION TO ACCELERATE EFFECTIVE

24 DATE.—In addition, a State may elect to have the 

25 amendments made by this section apply to the State 
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1 and to amounts collected by the State (and such 

2 payments under parts A and D), on and after such 

3 date as the State may select that is not earlier than 

4 18 months after the date of enactment of this Act 

5 and not later than September 30, 2009. 

6 SEC. 302. MANDATORY REVIEW AND ADJUSTMENT OF 

7 CHILD SUPPORT ORDERS FOR FAMILIES RE8 CEIVING TANF. 

9 (a) IN GENERAL.—Section 466(a)(10)(A)(i) (42 

10 U.S.C. 666(a)(10)(A)(i)) is amended— 

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

12 ‘‘parent or’’; and 

13 (2) by striking ‘‘upon the request of the State 

14 agency under the State plan or of either parent,’’. 

15 (b) EFFECTIVE DATE.—The amendments made by 

16 subsection (a) shall take effect on October 1, 2007. 

17 SEC. 303. REPORT ON UNDISTRIBUTED CHILD SUPPORT 

18 PAYMENTS. 

19 Not later than 6 months after the date of enactment 

20 of this Act, the Secretary of Health and Human Services 

21 shall submit to the Committee on Finance of the Senate 

22 and the Committee on Ways and Means of the House of 

23 Representatives a report on the procedures that the States 

24 use generally to locate custodial parents for whom child 

25 support has been collected but not yet distributed. The 
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1 report shall include an estimate of the total amount of 

2 undistributed child support and the average length of time 

3 it takes undistributed child support to be distributed. To 

4 the extent the Secretary deems appropriate, the Secretary 

5 shall include in the report recommendations as to whether 

6 additional procedures should be established at the Federal 

7 or State level to expedite the payment of undistributed 

8 child support. 

9 SEC. 304. DECREASE IN AMOUNT OF CHILD SUPPORT AR10 REARAGE TRIGGERING PASSPORT DENIAL. 

11 (a) IN GENERAL.—Section 452(k)(1) (42 U.S.C. 

12 652(k)(1)) is amended by striking ‘‘$5,000’’ and inserting 

13 ‘‘$2,500’’. 

14 (b) CONFORMING AMENDMENT.—Section 454(31) 

15 (42 U.S.C. 654(31)) is amended by striking ‘‘$5,000’’ and 

16 inserting ‘‘$2,500’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall take effect on October 1, 2006. 

19 SEC. 305. USE OF TAX REFUND INTERCEPT PROGRAM TO 

20 COLLECT PAST-DUE CHILD SUPPORT ON BE21 HALF OF CHILDREN WHO ARE NOT MINORS. 

22 (a) IN GENERAL.—Section 464 (42 U.S.C. 664) is 

23 amended— 
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1 (1) in subsection (a)(2)(A), by striking ‘‘(as 

2 that term is defined for purposes of this paragraph 

3 under subsection (c))’’; and 

4 (2) in subsection (c)— 

5 (A) in paragraph (1)— 

6 (i) by striking ‘‘(1) Except as pro7 vided in paragraph (2), as used in’’ and in8 serting ‘‘In’’; and 

9 (ii) by inserting ‘‘(whether or not a 

10 minor)’’ after ‘‘a child’’ each place it ap11 pears; and 

12 (B) by striking paragraphs (2) and (3). 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 subsection (a) shall take effect on October 1, 2007. 

15 SEC. 306. GARNISHMENT OF COMPENSATION PAID TO VET16 ERANS FOR SERVICE-CONNECTED DISABIL17 ITIES IN ORDER TO ENFORCE OBLIGATIONS. 

18 (a) IN GENERAL.—Section 459(h)(1)(A)(ii)(V)) (42 

19 U.S.C. 659(h)(1)(A)(ii)(V)) is amended by striking all 

20 that follows ‘‘Armed Forces’’ and inserting ‘‘, except that 

21 such compensation shall not be subject to withholding pur22 suant to this section for payment of alimony unless the 

23 former member to whom it is payable is in receipt of re24 tired or retainer pay and has waived a portion of such 

25 pay in order to receive such compensation;’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall take effect on October 1, 2007. 

3 SEC. 307. IMPROVING FEDERAL DEBT COLLECTION PRAC4 TICES. 

5 (a) IN GENERAL.—Section 3716(h)(3) of title 31, 

6 United States Code, is amended to read as follows: 

7 ‘‘(3)(A) Except as provided in subparagraph (B), in 

8 applying this section with respect to any debt owed to a 

9 State, subsection (c)(3)(A) shall not apply. 

10 ‘‘(B) Subsection (c)(3)(A) shall apply with respect to 

11 payments owed to an individual under title II of the Social 

12 Security Act (notwithstanding any other provision of law, 

13 including section 207 of the Social Security Act (42 

14 U.S.C. 407)) for purposes of offset under this section of 

15 such payments to collect past-due support being enforced 

16 by a State.’’. 

17 (b) CONFORMING AMENDMENT.—Section 3701(d)(2) 

18 of title 31, United States Code, is amended by striking 

19 ‘‘section 3716(c) of this title’’ and inserting ‘‘subsections 

20 (c) and (h)(3) of section 3716 of this title’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on the date that is 18 months 

23 after the date of enactment of this Act. 
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1 SEC. 308. MAINTENANCE OF TECHNICAL ASSISTANCE 

2 FUNDING. 

3 Section 452(j) (42 U.S.C. 652(j)) is amended by in4 serting ‘‘or the amount appropriated under this paragraph 

5 for fiscal year 2002, whichever is greater’’ before ‘‘, which 

6 shall be available’’. 

7 SEC. 309. MAINTENANCE OF FEDERAL PARENT LOCATOR 

8 SERVICE FUNDING. 

9 Section 453(o) (42 U.S.C. 653(o)) is amended— 

10 (1) in the first sentence, by inserting ‘‘or the 

11 amount appropriated under this paragraph for fiscal 

12 year 2002, whichever is greater’’ before ‘‘, which 

13 shall be available’’; and 

14 (2) in the second sentence, by striking ‘‘for 

15 each of fiscal years 1997 through 2001’’. 

16 SEC. 310. IDENTIFICATION AND SEIZURE OF ASSETS HELD 

17 BY MULTISTATE FINANCIAL INSTITUTIONS. 

18 (a) DUTIES OF THE SECRETARY.—Section 452(l) (42 

19 U.S.C. 652(l)) is amended to read as follows: 

20 ‘‘(l) IDENTIFICATION AND SEIZURE OF ASSETS

21 HELD BY MULTISTATE FINANCIAL INSTITUTIONS.— 

22 ‘‘(1) IN GENERAL.—The Secretary, through the 

23 Federal Parent Locator Service, is authorized— 

24 ‘‘(A) to assist State agencies operating 

25 programs under this part and financial institu26 tions doing business in 2 or more States in 
282 

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1 reaching agreements regarding the receipt from 

2 such institutions, and the transfer to the State 

3 agencies, of information that may be provided 

4 pursuant to section 466(a)(17)(A)(i) or 

5 469A(a); 

6 ‘‘(B) to perform data matches comparing 

7 information from such State agencies and fi8 nancial institutions entering into such agree9 ments with respect to individuals owing past10 due support; and 

11 ‘‘(C) to seize assets, held by such financial 

12 institutions, of individuals identified through 

13 such data matches who owe past-due support, 

14 by— 

15 ‘‘(i) issuing a notice of lien or levy to 

16 such financial institutions requiring them 

17 to encumber such assets for 30 calendar 

18 days and to subsequently transfer such as19 sets to the Secretary (except that the Sec20 retary shall promptly release such lien or 

21 levy within such 30-day period upon re22 quest of the State agencies responsible for 

23 collecting past-due support from such indi24 viduals); and 
283 

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1 ‘‘(ii) providing notice to such individ2 uals of the lien or levy upon their assets 

3 and informing them— 

4 ‘‘(I) of their procedural due proc5 ess rights, including the opportunity 

6 to contest such lien or levy to the ap7 propriate State agency; and 

8 ‘‘(II) in the case of jointly owned 

9 assets, of the process by which other 

10 owners may secure their respective 

11 share of such assets, according to 

12 such policies and procedures as the 

13 Secretary may specify with respect to 

14 seizure of such assets. 

15 ‘‘(2) TRANSFER OF FUNDS TO STATES.—Assets 

16 seized from individuals under paragraph (1)(C) shall 

17 be promptly transferred by the Secretary to the 

18 State agencies responsible for collecting past-due 

19 support from such individuals for distribution pursu20 ant to section 457. 

21 ‘‘(3) RELATIONSHIP TO STATE LAWS.—Not22 withstanding any provision of State law, an indi23 vidual receiving a notice under paragraph (1)(C) 

24 shall have 21 calendar days from the date of such 

25 notice to contest the lien or levy imposed under such 
284 

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1 paragraph by requesting an administrative review by 

2 the State agency responsible for collecting past-due 

3 support from such individual. 

4 ‘‘(4) TREATMENT OF DISCLOSURES.—For pur5 poses of section 1113(d) of the Right to Financial 

6 Privacy Act of 1978, a disclosure pursuant to this 

7 subsection shall be considered a disclosure pursuant 

8 to a Federal statute.’’. 

9 (b) STATE DUTIES.— 

10 (1) INDIVIDUALS WITH ASSETS SUBJECT TO

11 FEDERAL SEIZURE.—Section 454 (42 U.S.C. 654), 

12 as amended by section 301(b)(1)(B)(iii), is amend13 ed— 

14 (A) in paragraph (33), by striking ‘‘and’’ 

15 at the end; 

16 (B) in paragraph (34), by striking the pe17 riod and inserting ‘‘; and’’; and 

18 (C) by inserting after paragraph (34), the 

19 following: 

20 ‘‘(35) provide that the State shall— 

21 ‘‘(A) upon furnishing the Secretary with 

22 information under section 452(l) with respect to 

23 individuals owing past-due support, provide no24 tice to such individuals that their assets held in 
285 

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1 financial institutions shall be subject to seizure 

2 to pay such past-due support, and shall— 

3 ‘‘(i) instruct such individuals of the 

4 steps which may be taken to contest the 

5 State’s determination that past-due sup6 port is owed or the amount of the past-due 

7 support; and 

8 ‘‘(ii) include, in the case of jointly 

9 owned assets, a description of the process 

10 by which other owners may secure their 

11 share of such assets, in accordance with 

12 such policies and procedures as the Sec13 retary may specify with respect to seizure 

14 of such assets; 

15 ‘‘(B) promptly resolve cases in which such 

16 individuals contest the State’s determination 

17 with respect to past-due support, and provide 

18 for expedited refund of any assets erroneously 

19 seized and transferred to the State under such 

20 section 452(l); and 

21 ‘‘(C) except as otherwise specified under 

22 this paragraph or by the Secretary, ensure that 

23 the due process protections afforded under this 

24 paragraph to individuals whose assets are sub25 ject to seizure under section 452(l) are gen-
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1 erally consistent with, and to the extent prac2 ticable conform to, the due process protections 

3 afforded by the State to individuals subject to 

4 offset of tax refunds under section 464.’’. 

5 (2) REIMBURSEMENT OF FEDERAL COSTS.— 

6 Section 453(k)(3) (42 U.S.C. 653(k)(3)) is amend7 ed— 

8 (A) in the paragraph heading, by inserting 

9 ‘‘AND ENFORCEMENT SERVICES’’ after ‘‘INFOR10 MATION’’; 

11 (B) by inserting ‘‘or enforcement services’’ 

12 after ‘‘that receives information’’; 

13 (C) by inserting ‘‘or section 452(l)’’ after 

14 ‘‘pursuant to this section’’; and 

15 (D) by striking ‘‘in furnishing the informa16 tion’’ and inserting ‘‘in furnishing such infor17 mation or enforcement services’’. 

18 (c) CONFORMING AMENDMENTS.— 

19 (1) STATE LAW REQUIREMENTS.—Section 

20 466(a)(17) (42 U.S.C. 666(a)(17)) is amended— 

21 (A) in subparagraph (A)— 

22 (i) in clause (i), by inserting ‘‘pursu23 ant to section 452(l)’’ after ‘‘and the Fed24 eral Parent Locator Service’’; and 
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1 (ii) in clause (ii), by inserting ‘‘issued 

2 by the State agency or by the Secretary 

3 under section 452(l)’’ after ‘‘in response to 

4 a notice of lien or levy’’; and 

5 (B) in subparagraph (C)— 

6 (i) in clause (i), by inserting ‘‘or to 

7 the Federal Parent Locator Service’’ after 

8 ‘‘to the State agency’’; and 

9 (ii) in clause (ii), by striking ‘‘issued 

10 by the State agency’’. 

11 (2) NONLIABILITY FOR FINANCIAL INSTITU12 TIONS.—Section 469A(a) (42 U.S.C. 669a(a)) is 

13 amended by inserting ‘‘section 452(l) or’’ before 

14 ‘‘section 466(a)(17)(A)’’. 

15 SEC. 311. INFORMATION COMPARISONS WITH INSURANCE 

16 DATA. 

17 (a) DUTIES OF THE SECRETARY.—Section 452 (42 

18 U.S.C. 652) is amended by adding at the end the fol19 lowing: 

20 ‘‘(m) COMPARISONS WITH INSURANCE INFORMA21 TION.— 

22 ‘‘(1) IN GENERAL.—The Secretary, through the 

23 Federal Parent Locator Service, is authorized— 

24 ‘‘(A) to compare information concerning 

25 individuals owing past-due support with infor-
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1 mation maintained by insurers (or their agents) 

2 concerning insurance claims, settlements, 

3 awards, and payments; and 

4 ‘‘(B) to furnish information resulting from 

5 such data matches to the State agencies respon6 sible for collecting child support from such indi7 viduals. 

8 ‘‘(2) LIABILITY.—No insurer (including any 

9 agent of an insurer) shall be liable under any Fed10 eral or State law to any person for any disclosure 

11 provided for under this subsection, or for any other 

12 action taken in good faith in accordance with the 

13 provisions of this subsection.’’. 

14 (b) STATE REIMBURSEMENT OF FEDERAL COSTS.— 

15 Section 453(k)(3) (42 U.S.C. 653(k)(3)), as amended by 

16 section 310(b)(2), is amended by striking ‘‘section 452(l)’’ 

17 and inserting ‘‘subsection (l) or (m) of section 452’’. 

18 SEC. 312. TRIBAL ACCESS TO THE FEDERAL PARENT LOCA19 TOR SERVICE. 

20 Section 453(c)(1) (42 U.S.C. 653(c)(1)) is amended 

21 by inserting ‘‘or Indian tribe or tribal organization’’ after 

22 ‘‘any agent or attorney of any State’’. 
289 

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1 SEC. 313. REIMBURSEMENT OF SECRETARY’S COSTS OF IN2 FORMATION COMPARISONS AND DISCLO3 SURE FOR ENFORCEMENT OF OBLIGATIONS 

4 ON HIGHER EDUCATION ACT LOANS AND 

5 GRANTS. 

6 Section 453(j)(6)(F) (42 U.S.C. 653(j)(6)(F)) is 

7 amended by striking ‘‘additional’’. 

8 SEC. 314. TECHNICAL AMENDMENT RELATING TO COOPER9 ATIVE AGREEMENTS BETWEEN STATES AND 

10 INDIAN TRIBES. 

11 Section 454(33) (42 U.S.C. 654(33)) is amended by 

12 striking ‘‘that receives funding pursuant to section 428 

13 and’’. 

14 SEC. 315. CLAIMS UPON LONGSHORE AND HARBOR WORK15 ERS’ COMPENSATION FOR CHILD SUPPORT. 

16 (a) IN GENERAL.—Section 17 of the Longshore and 

17 Harbor Workers’ Compensation Act (33 U.S.C. 917) is 

18 amended to read as follows: 

19 ‘‘LIENS ON COMPENSATION; CHILD SUPPORT

20 ENFORCEMENT

21 ‘‘SEC. 17. (a) LIENS.—Where a trust fund which 

22 complies with section 302(c) of the Labor Management 

23 Relations Act, 1947 (29 U.S.C. 186(c)) established pursu24 ant to a collective-bargaining agreement in effect between 

25 an employer and an employee covered under this Act has 

26 paid disability benefits to an employee which the employee 
290 

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1 is legally obligated to repay by reason of the employee’s 

2 entitlement to compensation under this Act or under a set3 tlement, the Secretary shall authorize a lien on such com4 pensation in favor of the trust fund for the amount of 

5 such payments. 

6 ‘‘(b) CHILD SUPPORT.—Compensation or benefits 

7 due or payable to an individual under this Act (other than 

8 medical benefits) shall be subject, in like manner and to 

9 the same extent as similar compensation or benefits under 

10 a workers’ compensation program if established under 

11 State law— 

12 ‘‘(1) to withholding in accordance with State 

13 law enacted pursuant to subsections (a)(1) and (b) 

14 of section 466 of the Social Security Act and regula15 tions under such subsections; and 

16 ‘‘(2) to any other legal process brought, by a 

17 State agency administering a program under a State 

18 plan approved under part D of title IV of the Social 

19 Security Act or by an individual obligee, to enforce 

20 the legal obligation of the individual to provide child 

21 support or alimony.’’. 

22 (b) CONFORMING AMENDMENTS.—Section 16 of the 

23 Longshore and Harbor Workers’ Compensation Act (33 

24 U.S.C. 916) is amended— 
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1 (1) by striking ‘‘No’’ and inserting ‘‘Except as 

2 provided by this Act, no’’; and 

3 (2) by striking ‘‘, except as provided by this 

4 Act,’’ after ‘‘under this Act’’. 

5 SEC. 316. STATE OPTION TO USE STATEWIDE AUTOMATED 

6 DATA PROCESSING AND INFORMATION RE7 TRIEVAL SYSTEM FOR INTERSTATE CASES. 

8 Section 466(a)(14)(A)(iii) (42 U.S.C. 

9 666(a)(14)(A)(iii)) is amended by inserting before the 

10 semicolon the following: ‘‘(but the assisting State may es11 tablish a corresponding case based on such other State’s 

12 request for assistance)’’. 

13 SEC. 317. STATE LAW REQUIREMENT CONCERNING THE 

14 UNIFORM INTERSTATE FAMILY SUPPORT ACT 

15 (UIFSA). 

16 (a) IN GENERAL.—Section 466(f) (42 U.S.C. 666(f)) 

17 is amended— 

18 (1) by striking ‘‘and as in effect on August 22, 

19 1996,’’; and 

20 (2) by striking ‘‘adopted as of such date’’ and 

21 inserting ‘‘adopted as of August, 2001’’. 

22 (b) FULL FAITH AND CREDIT FOR CHILD SUPPORT

23 ORDERS.—Section 1738B of title 28, United States Code, 

24 is amended— 
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1 (1) by striking subsection (d) and inserting the 

2 following: 

3 ‘‘(d) CONTINUING EXCLUSIVE JURISDICTION.— 

4 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a 

5 court of a State that has made a child support order 

6 consistent with this section has continuing, exclusive 

7 jurisdiction to modify its order if the order is the 

8 controlling order and— 

9 ‘‘(A) the State is the child’s State or the 

10 residence of any individual contestant; or 

11 ‘‘(B) if the State is not the residence of 

12 the child or an individual contestant, the con13 testants consent in a record or in open court 

14 that the court may continue to exercise jurisdic15 tion to modify its order. 

16 ‘‘(2) REQUIREMENT.—A court may not exercise 

17 its continuing, exclusive jurisdiction to modify the 

18 order if the court of another State, acting in accord19 ance with subsections (e) and (f), has made a modi20 fication of the order.’’; 

21 (2) in subsection (e)(2)— 

22 (A) in subparagraph (A), by striking ‘‘be23 cause’’ and all that follows through the semi24 colon and inserting ‘‘pursuant to paragraph (1) 

25 or (2) of subsection (d);’’ and 
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1 (B) in subparagraph (B), by inserting 

2 ‘‘with jurisdiction over at least 1 of the indi3 vidual contestants or that is located in the 

4 child’s State’’ after ‘‘another State’’; 

5 (3) in subsection (f)— 

6 (A) in the subsection heading, by striking 

7 ‘‘RECOGNITION OF CHILD SUPPORT ORDERS’’ 

8 and inserting ‘‘DETERMINATION OF CONTROL9 LING CHILD SUPPORT ORDER’’; 

10 (B) in the matter preceding paragraph (1), 

11 by striking ‘‘shall apply’’ and all that follows 

12 through the colon and inserting ‘‘having per13 sonal jurisdiction over both individual contest14 ants shall apply the following rules and by 

15 order shall determine which order controls:’’; 

16 (C) in paragraph (1), by striking ‘‘must 

17 be’’ and inserting ‘‘controls and must be so’’; 

18 (D) in paragraph (2), by striking ‘‘must be 

19 recognized’’ and inserting ‘‘controls’’; 

20 (E) in paragraph (3), by striking ‘‘must be 

21 recognized’’ each place it appears and inserting 

22 ‘‘controls’’; 

23 (F) in paragraph (4)— 

24 (i) by striking ‘‘may’’ and inserting 

25 ‘‘shall’’; and 
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1 (ii) by striking ‘‘must be recognized’’ 

2 and inserting ‘‘controls’’; and 

3 (G) by striking paragraph (5); 

4 (4) by striking subsection (g) and inserting the 

5 following: 

6 ‘‘(g) ENFORCEMENT OF MODIFIED ORDERS.—If a 

7 child support order issued by a court of a State is modified 

8 by a court of another State which properly assumed juris9 diction, the issuing court— 

10 ‘‘(1) may enforce its order that was modified 

11 only as to arrears and interest accruing before the 

12 modification; 

13 ‘‘(2) may provide appropriate relief for viola14 tions of its order which occurred before the effective 

15 date of the modification; and 

16 ‘‘(3) shall recognize the modifying order of the 

17 other State for the purpose of enforcement.’’; 

18 (5) in subsection (h)— 

19 (A) in paragraph (1), by striking ‘‘and 

20 (3)’’ and inserting ‘‘, (3), and (4)’’; 

21 (B) in paragraph (2), by inserting ‘‘the 

22 computation and payment of arrearages, and 

23 the accrual of interest on the arrearages,’’ after 

24 ‘‘obligations of support,’’; and 

25 (C) by adding at the end the following: 
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1 ‘‘(4) PROSPECTIVE APPLICATION.—After a 

2 court determines which is the controlling order and 

3 issues an order consolidating arrears, if any, a court 

4 shall prospectively apply the law of the State issuing 

5 the controlling order, including that State’s law with 

6 respect to interest on arrears, current and future 

7 support, and consolidated arrears.’’; and 

8 (6) in subsection (i), by inserting ‘‘and sub9 section (d)(2) does not apply’’ after ‘‘issuing State’’. 

10 SEC. 318. GRANTS TO STATES FOR ACCESS AND VISITATION 

11 PROGRAMS. 

12 (a) AUTHORITY TO MAKE GRANTS TO INDIAN

13 TRIBES.—Section 469B (42 U.S.C. 669b) is amended— 

14 (1) in the section heading, by inserting ‘‘AND

15 INDIAN TRIBES’’ after ‘‘STATES’’; and 

16 (2) in subsection (a), by inserting ‘‘and Indian 

17 tribes or tribal organizations’’ after ‘‘to enable 

18 States’’. 

19 (b) AMOUNT OF GRANTS.—Section 469B(b) (42 

20 U.S.C. 669b(b)) is amended to read as follows: 

21 ‘‘(b) AMOUNT OF GRANTS.— 

22 ‘‘(1) GRANTS TO STATES.—The amount of the 

23 grant to be made to a State under this section for 

24 a fiscal year shall be an amount equal to the lesser 

25 of— 
296 

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1 ‘‘(A) 90 percent of State expenditures dur2 ing the fiscal year for activities described in 

3 subsection (a); or 

4 ‘‘(B) the allotment of the State under sub5 section (c) for the fiscal year. 

6 ‘‘(2) GRANTS TO INDIAN TRIBES.—An Indian 

7 tribe or tribal organization operating a program 

8 under section 455 that has operated such program 

9 throughout the preceding fiscal year and has an ap10 plication under this section approved by the Sec11 retary shall receive a grant under this section for a 

12 fiscal year in an amount equal to the allotment of 

13 such Indian tribe or tribal organization under sub14 section (c)(2) for the fiscal year.’’. 

15 (c) ALLOTMENTS.—Section 469B(c) (42 U.S.C. 

16 669b(c)) is amended to read as follows: 

17 ‘‘(c) ALLOTMENTS.— 

18 ‘‘(1) ALLOTMENTS TO STATES.— 

19 ‘‘(A) IN GENERAL.—Subject to the sub20 paragraph (C), the allotment of a State for a 

21 fiscal year is the amount that bears the same 

22 ratio to the amount specified in subparagraph 

23 (B) for such fiscal year as the number of chil24 dren in the State living with only 1 parent 
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1 bears to the total number of such children in all 

2 States. 

3 ‘‘(B) AMOUNT AVAILABLE FOR ALLOT4 MENT.—For purposes of subparagraph (A), the 

5 amount specified in this subparagraph is the 

6 following amount, reduced by the total allot7 ments to Indian tribes or tribal organizations in 

8 accordance with paragraph (2): 

9 ‘‘(i) $12,000,000 for fiscal year 2006. 

10 ‘‘(ii) $14,000,000 for fiscal year 2007. 

11 ‘‘(iii) $16,000,000 for fiscal year 

12 2008. 

13 ‘‘(iv) $20,000,000 for fiscal year 2009 

14 and each succeeding fiscal year. 

15 ‘‘(C) MINIMUM STATE ALLOTMENT.—The 

16 Secretary shall adjust allotments to States 

17 under subparagraph (A) as necessary to ensure 

18 that no State is allotted less than— 

19 ‘‘(i) $120,000 for fiscal year 2006; 

20 ‘‘(ii) $140,000 for fiscal year 2007; 

21 ‘‘(iii) $160,000 for fiscal year 2008; 

22 and 

23 ‘‘(iv) $180,000 for fiscal year 2009 

24 and each succeeding fiscal year. 

25 ‘‘(2) ALLOTMENTS TO INDIAN TRIBES.— 
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (C), the allotment of an Indian tribe or 

3 tribal organization described in subsection 

4 (b)(2) for a fiscal year is an amount that bears 

5 the same ratio to the amount specified in sub6 paragraph (B) for such fiscal year as the num7 ber of children in the Indian tribe or tribal or8 ganization living with only 1 parent bears to the 

9 total number of such children in all Indian 

10 tribes and tribal organizations eligible to receive 

11 grants under this section for such year. 

12 ‘‘(B) AMOUNT AVAILABLE FOR ALLOT13 MENT.—For purposes of subparagraph (A), the 

14 amount available under this subparagraph is an 

15 amount, deducted from the amount specified in 

16 paragraph (1)(B), not to exceed— 

17 ‘‘(i) $250,000 for fiscal year 2006; 

18 ‘‘(ii) $600,000 for fiscal year 2007; 

19 ‘‘(iii) $800,000 for fiscal year 2008; 

20 and 

21 ‘‘(iv) $1,670,000 for fiscal year 2009 

22 and each succeeding year. 

23 ‘‘(C) MINIMUM AND MAXIMUM TRIBAL AL24 LOTMENT.—The Secretary shall adjust allot25 ments to Indian tribes and tribal organizations 
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1 under subparagraph (A) as necessary to ensure 

2 that no Indian tribe or tribal organization is al3 lotted, for a fiscal year, an amount which is less 

4 than $10,000 or more than the minimum State 

5 allotment for such fiscal year.’’. 

6 (d) ADMINISTRATION.—Section 469B(e) (42 U.S.C. 

7 669b(e)) is amended to read as follows: 

8 ‘‘(e) ADMINISTRATION.— 

9 ‘‘(1) GRANTS TO STATES.—Each State to which 

10 a grant is made under this section— 

11 ‘‘(A) may administer State programs fund12 ed with the grant, directly or through grants to 

13 or contracts with courts, local public agencies, 

14 or nonprofit private entities; and 

15 ‘‘(B) shall not be required to operate such 

16 programs on a statewide basis. 

17 ‘‘(2) GRANTS TO STATES OR INDIAN TRIBES.— 

18 Each State or Indian tribe or tribal organization to 

19 which a grant is made under this section shall mon20 itor, evaluate, and report on such programs in ac21 cordance with regulations prescribed by the Sec22 retary.’’. 
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1 SEC. 319. TIMING OF CORRECTIVE ACTION YEAR FOR 

2 STATE NONCOMPLIANCE WITH CHILD SUP3 PORT ENFORCEMENT PROGRAM REQUIRE4 MENTS. 

5 (a) IN GENERAL.—Section 409(a)(8) (42 U.S.C. 

6 609(a)(8)) is amended— 

7 (1) in subparagraph (A)— 

8 (A) in the matter preceding clause (i)(I), 

9 by striking ‘‘in a fiscal year’’ and inserting ‘‘for 

10 a fiscal year’’; and 

11 (B) in clause (ii)— 

12 (i) in the matter preceding subclause 

13 (I), by striking ‘‘that, with respect to the 

14 succeeding fiscal year—’’ and inserting 

15 ‘‘that, with respect to the period described 

16 in subparagraph (D)—’’; and 

17 (ii) in the matter following subclause 

18 (II), by striking ‘‘the end of such suc19 ceeding fiscal year’’ and inserting ‘‘the end 

20 of the period described in subparagraph 

21 (D)’’; and 

22 (2) by adding at the end the following: 

23 ‘‘(D) PERIOD DESCRIBED.—Subject to 

24 subparagraph (E), for purposes of this para25 graph, the period described in this subpara26 graph is the period that begins with the date on 
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1 which the Secretary makes a finding described 

2 in subparagraph (A)(i) with respect to State 

3 performance in a fiscal year and ends on Sep4 tember 30 of the fiscal year following the fiscal 

5 year in which the Secretary makes such a find6 ing. 

7 ‘‘(E) NO PENALTY IF STATE CORRECTS

8 NONCOMPLIANCE IN FINDING YEAR.—The Sec9 retary shall not take a reduction described in 

10 subparagraph (A) with respect to a noncompli11 ance described in clause (i) of that subpara12 graph if the Secretary determines that the 

13 State has corrected the noncompliance in the 

14 fiscal year in which the Secretary makes the 

15 finding of the noncompliance.’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 subsection (a) shall be effective with respect to determina18 tions of State compliance for fiscal year 2002 and suc19 ceeding fiscal years. 

20 (c) SPECIAL RULE FOR FISCAL YEAR 2001.—Not21 withstanding any other provision of law, the Secretary of 

22 Health and Human Services shall not take against 

23 amounts otherwise payable to a State, a reduction de24 scribed in section 409(a)(8)(A) of the Social Security Act 

25 (42 U.S.C. 609(a)(8)(A)) with respect to a noncompliance 
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1 described in such section occurring in fiscal year 2001 if 

2 the Secretary determines that the State has corrected such 

3 noncompliance in fiscal year 2002 or 2003. 

4 SEC. 320. REQUIREMENT THAT STATE CHILD SUPPORT EN5 FORCEMENT AGENCIES SEEK MEDICAL SUP6 PORT FOR CHILDREN FROM EITHER PARENT. 

7 (a) STATE AGENCIES REQUIRED TO SEEK MEDICAL

8 SUPPORT FROM EITHER PARENT.— 

9 (1) IN GENERAL.—Section 466(a)(19)(A) (42 

10 U.S.C. 666(a)(19)(A)) is amended by striking 

11 ‘‘which include a provision for the health care cov12 erage of the child are enforced’’ and inserting ‘‘shall 

13 include a provision for medical support for the child 

14 to be provided by either or both parents, and shall 

15 be enforced’’. 

16 (2) CONFORMING AMENDMENTS.— 

17 (A) TITLE IV–D.— 

18 (i) Section 452(f) (42 U.S.C. 652(f)) 

19 is amended by striking ‘‘include medical 

20 support as part of any child support order 

21 and enforce medical support’’ and inserting 

22 ‘‘enforce medical support included as part 

23 of a child support order’’. 
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1 (ii) Section 466(a)(19) (42 U.S.C. 

2 666(a)(19)), as amended by paragraph (1), 

3 is amended— 

4 (I) in subparagraph (A)— 

5 (aa) by striking ‘‘section 

6 401(e)(3)(C)’’ and inserting ‘‘sec7 tion 401(e)’’; and 

8 (bb) by striking ‘‘section 

9 401(f)(5)(C)’’ and inserting ‘‘sec10 tion 401(f)’’; 

11 (II) in subparagraph (B)— 

12 (aa) by striking ‘‘noncusto13 dial’’ each place it appears; and 

14 (bb) in clause (iii), by strik15 ing ‘‘section 466(b)’’ and insert16 ing ‘‘subsection (b)’’; and 

17 (III) in subparagraph (C), by 

18 striking ‘‘noncustodial’’ each place it 

19 appears and inserting ‘‘obligated’’. 

20 (B) ERISA.—Section 609(a)(5)(C) of the 

21 Employee Retirement Income Security Act of 

22 1974 (29 U.S.C. 1169(a)(5)(C)) is amended by 

23 striking ‘‘noncustodial’’ each place it appears. 

24 (C) STATE OR LOCAL GOVERNMENTAL

25 GROUP HEALTH PLANS.—Section 401(e)(2) of 
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1 the Child Support Performance and Incentive 

2 Act of 1998 (29 U.S.C. 1169 note) is amended, 

3 in the matter preceding subparagraph (A), by 

4 striking ‘‘who is a noncustodial parent of the 

5 child’’. 

6 (D) CHURCH PLANS.—Section 

7 401(f)(5)(C) of the Child Support Performance 

8 and Incentive Act of 1998 (29 U.S.C. 1169 

9 note) is amended by striking ‘‘noncustodial’’ 

10 each place it appears. 

11 (b) ENFORCEMENT OF MEDICAL SUPPORT REQUIRE12 MENTS.—Section 452(f) (42 U.S.C. 652(f)), as amended 

13 by subsection (a)(2)(A)(i), is amended by inserting after 

14 the first sentence the following: ‘‘A State agency admin15 istering the program under this part is authorized to en16 force medical support against a custodial parent whenever 

17 health care coverage is available to the custodial parent 

18 at a reasonable cost, notwithstanding any provision of this 

19 part (other than this sentence) that might be construed 

20 to limit or bar such enforcement actions.’’. 

21 (c) DEFINITION OF MEDICAL SUPPORT.—Section 

22 452(f) (42 U.S.C. 652(f)), as amended by subsections 

23 (a)(2)(A)(i) and (b), is amended by adding at the end the 

24 following: ‘‘For purposes of this part, the term ‘medical 

25 support’ may include health care coverage, such as cov-
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1 erage under a health insurance plan (including payment 

2 of costs of premiums, co-payments, and deductibles) and 

3 payment for medical expenses incurred on behalf of a 

4 child.’’. 

5 (d) EFFECTIVE DATE.—Subject to section 701(b), 

6 the amendments made by this section shall apply to child 

7 support orders issued or amended after the date of enact8 ment of this Act. 

9 SEC. 321. NOTICE TO STATE CHILD SUPPORT ENFORCE10 MENT AGENCY FROM HEALTH CARE PLAN 

11 ADMINISTRATOR UNDER CERTAIN CIR12 CUMSTANCES WHEN A CHILD LOSES HEALTH 

13 CARE COVERAGE. 

14 (a) ERISA.—Section 606(a)(4) of the Employee Re15 tirement Income Security Act of 1974 (29 U.S.C. 

16 1166(a)(4)) is amended— 

17 (1) in subparagraph (A), by striking ‘‘and’’ at 

18 the end; 

19 (2) in subparagraph (B), by adding ‘‘and’’ after 

20 the comma at the end; and 

21 (3) by inserting after subparagraph (B) the fol22 lowing: 

23 ‘‘(C) in any case in which the qualifying 

24 event with respect to which notice to a qualified 

25 beneficiary is required by subparagraph (A) or 
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1 (B) is a qualifying event with respect to the 

2 parent of a qualified beneficiary who is an al3 ternative recipient under a qualified medical 

4 child support order (as such terms are defined 

5 in section 609(a)(2)), the State agency admin6 istering the program under part D of title IV 

7 of the Social Security Act that issued, or is au8 thorized to enforce, such order,’’. 

9 (b) INTERNAL REVENUE CODE OF 1986.—Section 

10 4980B(f)(6)(D) of the Internal Revenue Code of 1986 is 

11 amended— 

12 (1) in clause (i), by striking ‘‘and’’ at the end; 

13 (2) in clause (ii), by adding ‘‘and’’ after the 

14 comma at the end; and 

15 (3) by inserting after clause (ii) the following: 

16 ‘‘(iii) in any case in which the quali17 fying event with respect to which notice to 

18 a qualified beneficiary is required by clause 

19 (i) or (ii) is a qualifying event with respect 

20 to the parent of a qualified beneficiary who 

21 is an alternative recipient under a qualified 

22 medical child support order (as such terms 

23 are defined in section 609(a)(2) of the Em24 ployee Retirement Income Security Act of 

25 1974), the State agency administering the 
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1 program under part D of title IV of the 

2 Social Security Act which issued, or is au3 thorized to enforce, such order,’’. 

4 (c) PUBLIC HEALTH SERVICE ACT.—Section 

5 2206(4) of the Public Health Service Act (42 U.S.C. 

6 300bb–6(4)) is amended— 

7 (1) in subparagraph (A), by striking ‘‘and’’ at 

8 the end; 

9 (2) in subparagraph (B), by adding ‘‘and’’ after 

10 the comma at the end; and 

11 (3) by inserting after subparagraph (B) the fol12 lowing: 

13 ‘‘(C) in any case in which the qualifying 

14 event with respect to which notice to a qualified 

15 beneficiary is required by subparagraph (A) or 

16 (B) is a qualifying event with respect to the 

17 parent of a qualified beneficiary who is an al18 ternative recipient (as defined in paragraph 

19 (4)(B) of section 401(e) of the Child Support 

20 Performance and Incentive Act of 1998) under 

21 a National Medical Support Notice issued in ac22 cordance with that section, the State agency 

23 issuing, or that is authorized to enforce, such 

24 notice,’’. 
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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section apply to qualifying events occurring on or 

3 after the date of enactment of this Act. 

4 SEC. 322. AUTHORITY TO CONTINUE STATE PROGRAM FOR 

5 MONITORING AND ENFORCEMENT OF CHILD 

6 SUPPORT ORDERS. 

7 The Secretary of Health and Human Services shall 

8 not require the State of Texas, in operating the program 

9 established under part D of title IV of the Social Security 

10 Act, to apply for a waiver from the requirements of section 

11 454(4)(A)(ii) of such Act (42 U.S.C. 654(4)(A)(ii)) to 

12 continue to operate the State’s program for monitoring 

13 and enforcement of a court order without the necessity 

14 of a written application, as in effect on the date of enact15 ment of this Act. Such State may continue to operate such 

16 program and expand it to additional counties, as the State 

17 determines necessary, without the necessity of applying for 

18 a waiver from the Secretary so long as an individual to 

19 whom the support is owed and who would otherwise have 

20 to sign a written application for services under such pro21 gram has an opportunity to decline such services. 
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1 SEC. 323. TECHNICAL AMENDMENT RELATING TO INFOR2 MATION COMPARISONS AND DISCLOSURE TO 

3 ASSIST IN FEDERAL DEBT COLLECTION. 

4 (a) IN GENERAL.—Section 643 of division H of the 

5 Consolidated Appropriations Act, 2005 (Public Law 108– 

6 447) is amended— 

7 (1) by striking ‘‘Section 653(j)’’ and all that 

8 follows through ‘‘new paragraph’’ and inserting 

9 ‘‘Section 453(j) of the Social Security Act (42 

10 U.S.C. 653(j)) is amended by adding at the end the 

11 following new paragraph:’’; and 

12 (2) by redesignating the paragraph (7) added to 

13 section 453(j) of the Social Security Act (42 U.S.C. 

14 653(j)) by the amendment made by such section as 

15 paragraph (9). 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 subsection (a) shall take effect as if included in the enact18 ment of section 643 of division H of the Consolidated Ap19 propriations Act, 2005 (Public Law 108–447). 

20 TITLE IV—CHILD WELFARE 

21 SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEM22 ONSTRATION PROJECTS. 

23 Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is 

24 amended by striking ‘‘2003’’ and inserting ‘‘2010’’. 
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1 SEC. 402. REMOVAL OF COMMONWEALTH OF PUERTO RICO 

2 IV–E FUNDS FROM LIMITATION ON PAY3 MENTS. 

4 Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as 

5 amended by section 116(b)(2), is amended— 

6 (1) by striking ‘‘Paragraph (1)’’ and inserting 

7 the following: 

8 ‘‘(A) IN GENERAL.—Paragraph (1)’’; 

9 (2) in subparagraph (A) (as added by para10 graph (1)), by striking ‘‘or 418(a)(4)(B)’’ and in11 serting ‘‘418(a)(4)(B), 473A, or, subject to clause 

12 (ii) of subparagraph (B), payments to Puerto Rico 

13 described in clause (i) of that subparagraph’’ before 

14 the period; and 

15 (3) by adding at the end the following: 

16 ‘‘(B) CERTAIN PAYMENTS TO PUERTO

17 RICO.— 

18 ‘‘(i) PAYMENTS DESCRIBED.—For 

19 purposes of subparagraph (A), payments 

20 described in this subparagraph are pay21 ments made to Puerto Rico under section 

22 474 for each of fiscal years 2007 through 

23 2010 that exceed the total amount of pay24 ments made to Puerto Rico under that sec25 tion for fiscal year 2003. 
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1 ‘‘(ii) LIMITATION.—The total amount 

2 of payments to Puerto Rico described in 

3 clause (i) that are disregarded under sub4 paragraph (A) may not exceed $6,250,000 

5 for each of fiscal years 2007 through 

6 2010.’’. 

7 SEC. 403. AUTHORITY OF INDIAN TRIBES TO RECEIVE FED8 ERAL FUNDS FOR FOSTER CARE AND ADOP9 TION ASSISTANCE. 

10 (a) CHILDREN PLACED IN TRIBAL CUSTODY ELIGI11 BLE FOR FOSTER CARE FUNDING.—Section 472(a)(2) 

12 (42 U.S.C. 672(a)(2)) is amended— 

13 (1) by striking ‘‘or (B)’’ and inserting ‘‘(B)’’; 

14 and 

15 (2) by inserting before the semicolon the fol16 lowing: ‘‘, or (C) an Indian tribe or tribal organiza17 tion (as defined in section 479B(e)) or an intertribal 

18 consortium if the Indian tribe, tribal organization, or 

19 consortium (i) is operating a program pursuant to 

20 section 479B, (ii) has a cooperative agreement with 

21 a State pursuant to section 479B(c), or (iii) submits 

22 to the Secretary a description of the arrangements 

23 (jointly developed or developed in consultation with 

24 the State) made by the Indian tribe, tribal organiza25 tion, or consortium for the payment of funds and 
312 

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1 the provision of the child welfare services and pro2 tections required by this title’’. 

3 (b) PROGRAMS OPERATED BY INDIAN TRIBAL ORGA4 NIZATIONS.—Part E of title IV (42 U.S.C. 670 et seq.) 

5 is amended by adding at the end the following: 

6 ‘‘SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL OR7 GANIZATIONS. 

8 ‘‘(a) APPLICATION.—Except as provided in sub9 section (b), this part shall apply to an Indian tribe or trib10 al organization that elects to operate a program under this 

11 part in the same manner as this part applies to a State. 

12 ‘‘(b) MODIFICATION OF PLAN REQUIREMENTS.— 

13 ‘‘(1) SERVICE AREA; STANDARDS.— 

14 ‘‘(A) IN GENERAL.—Subject to subpara15 graph (B), in the case of an Indian tribe or 

16 tribal organization submitting a plan for ap17 proval under section 471, the plan shall— 

18 ‘‘(i) in lieu of the requirement of sec19 tion 471(a)(3), identify the service area or 

20 areas and population to be served by the 

21 Indian tribe or tribal organization; and 

22 ‘‘(ii) in lieu of the requirement of sec23 tion 471(a)(10), provide for the approval 

24 of foster homes pursuant to tribal stand25 ards and in a manner that ensures the 
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1 safety of, and accountability for, children 

2 placed in foster care. 

3 ‘‘(B) SPECIAL RULE.—With respect to an 

4 Indian tribe located in the State of Alaska— 

5 ‘‘(i) clause (ii) of subparagraph (A) 

6 shall not apply; and 

7 ‘‘(ii) the requirement of section 

8 471(a)(10) shall apply to a plan submitted 

9 by such tribe. 

10 ‘‘(2) DETERMINATION OF FEDERAL SHARE.— 

11 ‘‘(A) PER CAPITA INCOME.— 

12 ‘‘(i) IN GENERAL.—For purposes of 

13 determining the Federal medical assistance 

14 percentage applicable to an Indian tribe or 

15 tribal organization under paragraphs (1) 

16 and (2) of section 474(a), the calculation 

17 of an Indian tribe’s or tribal organization’s 

18 per capita income shall be based upon the 

19 service population of the Indian tribe or 

20 tribal organization as defined in its plan in 

21 accordance with paragraph (1)(A). 

22 ‘‘(ii) CONSIDERATION OF OTHER IN23 FORMATION.—An Indian tribe or tribal or24 ganization may submit to the Secretary 

25 such information as the Indian tribe or 
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1 tribal organization considers relevant to 

2 the calculation of the per capita income of 

3 the Indian tribe or tribal organization, and 

4 the Secretary shall consider such informa5 tion before making the calculation. 

6 ‘‘(B) ADMINISTRATIVE EXPENDITURES.— 

7 The Secretary shall, by regulation, determine 

8 the proportions to be paid to Indian tribes and 

9 tribal organizations pursuant to section 

10 474(a)(3), except that in no case shall an In11 dian tribe or tribal organization receive a lesser 

12 proportion than the corresponding amount spec13 ified for a State in that section. 

14 ‘‘(C) SOURCES OF NON-FEDERAL

15 SHARE.—An Indian tribe or tribal organization 

16 may use Federal or State funds to match pay17 ments for which the Indian tribe or tribal orga18 nization is eligible under section 474. 

19 ‘‘(3) MODIFICATION OF OTHER REQUIRE20 MENTS.—Upon the request of an Indian tribe, tribal 

21 organization, or a consortia of tribes or tribal orga22 nizations, the Secretary may modify any requirement 

23 under this part if, after consulting with the Indian 

24 tribe, tribal organization, or consortia of tribes or 

25 tribal organizations, the Secretary determines that 
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1 modification of the requirement would advance the 

2 best interests and the safety of children served by 

3 the Indian tribe, tribal organization, or consortia of 

4 tribes or tribal organizations. 

5 ‘‘(4) CONSORTIUM.—The participating Indian 

6 tribes or tribal organizations of an intertribal con7 sortium may develop and submit a single plan under 

8 section 471 that meets the requirements of this sec9 tion. 

10 ‘‘(c) COOPERATIVE AGREEMENTS.—An Indian tribe, 

11 tribal organization, or intertribal consortium and a State 

12 may enter into a cooperative agreement for the adminis13 tration or payment of funds pursuant to this part. In any 

14 case where an Indian tribe, tribal organization, or inter15 tribal consortium and a State enter into a cooperative 

16 agreement that incorporates any of the provisions of this 

17 section, those provisions shall be valid and enforceable. 

18 Any such cooperative agreement that is in effect as of the 

19 date of enactment of this section, shall remain in full force 

20 and effect subject to the right of either party to the agree21 ment to revoke or modify the agreement pursuant to the 

22 terms of the agreement. 

23 ‘‘(d) REGULATIONS.—Not later than 1 year after the 

24 date of enactment of this section, the Secretary shall, in 
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1 full consultation with Indian tribes and tribal organiza2 tions, promulgate regulations to carry out this section. 

3 ‘‘(e) DEFINITIONS OF INDIAN TRIBE; TRIBAL ORGA4 NIZATIONS.—In this section, the terms ‘Indian tribe’ and 

5 ‘tribal organization’ have the meanings given those terms 

6 in subsections (e) and (l) of section 4 of the Indian Self7 Determination and Education Assistance Act (25 U.S.C. 

8 450b), respectively, except that, with respect to the State 

9 of Alaska, the term ‘Indian tribe’ has the meaning given 

10 that term in section 419(4)(B).’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section take effect on October 1, 2006, without regard 

13 to whether regulations to implement such amendments 

14 have been promulgated as of such date. 

15 SEC. 404. TECHNICAL CORRECTION. 

16 Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is 

17 amended by striking ‘‘422(b)(9)’’ and inserting 

18 ‘‘422(b)(10)’’. 

19 TITLE V—SUPPLEMENTAL 

20 SECURITY INCOME 

21 SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DIS22 ABILITY DETERMINATIONS. 

23 Section 1633 (42 U.S.C. 1383b) is amended by add24 ing at the end the following: 
317 

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1 ‘‘(e)(1) The Commissioner of Social Security shall re2 view determinations, made by State agencies pursuant to 

3 subsection (a) in connection with applications for benefits 

4 under this title on the basis of blindness or disability, that 

5 individuals who have attained 18 years of age are blind 

6 or disabled. Any review by the Commissioner of Social Se7 curity of a State agency determination under this para8 graph shall be made before any action is taken to imple9 ment the determination. 

10 ‘‘(2)(A) In carrying out paragraph (1), the Commis11 sioner of Social Security shall review— 

12 ‘‘(i) with respect to fiscal year 2006, at least 25 

13 percent of all determinations referred to in para14 graph (1) that are made in such fiscal year; and 

15 ‘‘(ii) with respect to each of fiscal years 2006 

16 through 2015, at least 50 percent of all such deter17 minations that are made in each such fiscal year. 

18 ‘‘(B) In conducting reviews pursuant to subpara19 graph (A), the Commissioner of Social Security shall, to 

20 the extent feasible, select for review those determinations 

21 which the Commissioner of Social Security identifies as 

22 being the most likely to be incorrect.’’. 
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1 SEC. 502. TEMPORARY EXPANSION OF LENGTH OF TIME2 LIMITED ELIGIBILITY OF QUALIFIED ALIENS 

3 FOR SUPPLEMENTAL SECURITY INCOME 

4 BENEFITS. 

5 (a) IN GENERAL.—During the period described in 

6 subsection (b), subsection (a)(2)(A) of section 402 of the 

7 Personal Responsibility and Work Opportunity Reconcili8 ation Act of 1996 (8 U.S.C. 1612) shall be applied to the 

9 program described in subsection (a)(3)(A) of such section 

10 by substituting ‘‘9 years’’ for ‘‘7 years’’. 

11 (b) PERIOD DESCRIBED.—For purposes of sub12 section (a), the period described in this subsection is the 

13 period that begins on the first day of the month in which 

14 this Act is enacted and ends on September 30, 2008. 

15 (c) EFFECTIVE DATE.—This section shall be effective 

16 with respect to benefits payable under the program de17 scribed in section 402(a)(3)(A) of the Personal Responsi18 bility and Work Opportunity Reconciliation Act of 1996 

19 (8 U.S.C. 1612(a)(3)(A)) for months occurring during the 

20 period described in subsection (b). 
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1 TITLE VI—TRANSITIONAL 

2 MEDICAL ASSISTANCE 

3 SEC. 601. EXTENSION AND SIMPLIFICATION OF THE TRAN4 SITIONAL MEDICAL ASSISTANCE PROGRAM 

5 (TMA). 

6 (a) OPTION OF CONTINUOUS ELIGIBILITY FOR 12 

7 MONTHS; OPTION OF CONTINUING COVERAGE FOR UP TO

8 AN ADDITIONAL YEAR.— 

9 (1) OPTION OF CONTINUOUS ELIGIBILITY FOR

10 12 MONTHS BY MAKING REPORTING REQUIREMENTS

11 OPTIONAL.—Section 1925(b) (42 U.S.C. 1396r– 

12 6(b)) is amended— 

13 (A) in paragraph (1), by inserting ‘‘, at the 

14 option of a State,’’ after ‘‘and which’’; 

15 (B) in paragraph (2)(A), by inserting 

16 ‘‘Subject to subparagraph (C):’’ after ‘‘(A) NO17 TICES.—’’; 

18 (C) in paragraph (2)(B), by inserting 

19 ‘‘Subject to subparagraph (C):’’ after ‘‘(B) RE20 PORTING REQUIREMENTS.—’’; 

21 (D) by adding at the end the following: 

22 ‘‘(C) STATE OPTION TO WAIVE NOTICE

23 AND REPORTING REQUIREMENTS.—A State 

24 may waive some or all of the reporting require25 ments under clauses (i) and (ii) of subpara-
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1 graph (B). Insofar as it waives such a reporting 

2 requirement, the State need not provide for a 

3 notice under subparagraph (A) relating to such 

4 requirement.’’; and 

5 (E) in paragraph (3)(A)(iii), by inserting 

6 ‘‘the State has not waived under paragraph 

7 (2)(C) the reporting requirement with respect 

8 to such month under paragraph (2)(B) and if’’ 

9 after ‘‘6-month period if’’. 

10 (2) STATE OPTION TO EXTEND ELIGIBILITY

11 FOR LOW-INCOME INDIVIDUALS FOR UP TO 12 ADDI12 TIONAL MONTHS.—Section 1925 (42 U.S.C. 1396r– 

13 6) is further amended— 

14 (A) by redesignating subsections (c) 

15 through (f) as subsections (d) through (g), re16 spectively; and 

17 (B) by inserting after subsection (b) the 

18 following: 

19 ‘‘(c) STATE OPTION OF UP TO 12 MONTHS OF ADDI20 TIONAL ELIGIBILITY.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding any other 

22 provision of this title, each State plan approved 

23 under this title may provide, at the option of the 

24 State, that the State shall offer to each family which 

25 received assistance during the entire 6-month period 
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1 under subsection (b) and which meets the applicable 

2 requirement of paragraph (2), in the last month of 

3 the period the option of extending coverage under 

4 this subsection for the succeeding period not to ex5 ceed 12 months. 

6 ‘‘(2) INCOME RESTRICTION.—The option under 

7 paragraph (1) shall not be made available to a fam8 ily for a succeeding period unless the State deter9 mines that the family’s average gross monthly earn10 ings (less such costs for such child care as is nec11 essary for the employment of the caretaker relative) 

12 as of the end of the 6-month period under sub13 section (b) does not exceed 185 percent of the offi14 cial poverty line (as defined by the Office of Man15 agement and Budget, and revised annually in ac16 cordance with section 673(2) of the Omnibus Budget 

17 Reconciliation Act of 1981) applicable to a family of 

18 the size involved. 

19 ‘‘(3) APPLICATION OF EXTENSION RULES.— 

20 The provisions of paragraphs (2), (3), (4), and (5) 

21 of subsection (b) shall apply to the extension pro22 vided under this subsection in the same manner as 

23 they apply to the extension provided under sub24 section (b)(1), except that for purposes of this sub25 section— 
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1 ‘‘(A) any reference to a 6-month period 

2 under subsection (b)(1) is deemed a reference 

3 to the extension period provided under para4 graph (1) and any deadlines for any notices or 

5 reporting and the premium payment periods 

6 shall be modified to correspond to the appro7 priate calendar quarters of coverage provided 

8 under this subsection; and 

9 ‘‘(B) any reference to a provision of sub10 section (a) or (b) is deemed a reference to the 

11 corresponding provision of subsection (b) or of 

12 this subsection, respectively.’’. 

13 (b) STATE OPTION TO WAIVE RECEIPT OF MED14 ICAID FOR 3 OF PREVIOUS 6 MONTHS TO QUALIFY FOR

15 TMA.—Section 1925(a)(1) (42 U.S.C. 1396r–6(a)(1)) is 

16 amended by adding at the end the following: ‘‘A State 

17 may, at its option, also apply the previous sentence in the 

18 case of a family that was receiving such aid for fewer than 

19 3 months, or that had applied for and was eligible for such 

20 aid for fewer than 3 months, during the 6 immediately 

21 preceding months described in such sentence.’’. 

22 (c) EXTENSION OF SUNSET FOR TMA.— 

23 (1) IN GENERAL.—Subsection (g) of section 

24 1925 (42 U.S.C. 1396r–6), as so redesignated under 

25 subsection (a)(2)(A), is further redesignated as sub-
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1 section (i) and is amended by striking ‘‘2003’’ and 

2 inserting ‘‘2010’’. 

3 (2) CONFORMING AMENDMENT.—Section 

4 1902(e)(1)(B) (42 U.S.C. 1396a(e)(1)(B)), as so 

5 amended, is amended by striking ‘‘September 30, 

6 2003’’ and inserting ‘‘the last date (if any) on which 

7 section 1925 applies under subsection (i) of that sec8 tion’’. 

9 (d) CMS REPORT ON ENROLLMENT AND PARTICIPA10 TION RATES UNDER TMA.—Section 1925 (42 U.S.C. 

11 1396r–6), as amended by subsections (a)(2)(A) and 

12 (c)(1), is amended by inserting after subsection (f) the fol13 lowing: 

14 ‘‘(g) ADDITIONAL PROVISIONS.— 

15 ‘‘(1) COLLECTION AND REPORTING OF PARTICI16 PATION INFORMATION.—Each State shall— 

17 ‘‘(A) collect and submit to the Secretary, 

18 in a format specified by the Secretary, informa19 tion on average monthly enrollment and average 

20 monthly participation rates for adults and chil21 dren under this section; and 

22 ‘‘(B) make such information publicly avail23 able. 

24 Such information shall be submitted under subpara25 graph (A) at the same time and frequency in which 
324 

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1 other enrollment information under this title is sub2 mitted to the Secretary. Using such information, the 

3 Secretary shall submit to Congress annual reports 

4 concerning such rates.’’. 

5 (e) COORDINATION OF WORK.—Section 1925(g) (42 

6 U.S.C. 1396r–6(g)), as added by subsection (d), is amend7 ed by adding at the end the following: 

8 ‘‘(2) COORDINATION WITH ADMINISTRATION

9 FOR CHILDREN AND FAMILIES.—The Administrator 

10 of the Centers for Medicare & Medicaid Services, in 

11 carrying out this section, shall work with the Assist12 ant Secretary for the Administration for Children 

13 and Families to develop guidance or other technical 

14 assistance for States regarding best practices in 

15 guaranteeing access to transitional medical assist16 ance under this section.’’. 

17 (f) ELIMINATION OF TMA REQUIREMENT FOR

18 STATES THAT EXTEND COVERAGE TO CHILDREN AND

19 PARENTS THROUGH 185 PERCENT OF POVERTY.— 

20 (1) IN GENERAL.—Section 1925 (42 U.S.C. 

21 1396r–6) is amended by inserting after subsection 

22 (g), as added by subsection (d), the following: 

23 ‘‘(h) PROVISIONS OPTIONAL FOR STATES THAT EX24 TEND COVERAGE TO CHILDREN AND PARENTS THROUGH

25 185 PERCENT OF POVERTY.—A State may meet (but is 
325 

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1 not required to meet) the requirements of subsections (a) 

2 and (b) if it provides for medical assistance under section 

3 1931 to families (including both children and caretaker 

4 relatives) the average gross monthly earning of which (less 

5 such costs for such child care as is necessary for the em6 ployment of a caretaker relative) is at or below a level that 

7 is at least 185 percent of the official poverty line (as de8 fined by the Office of Management and Budget, and re9 vised annually in accordance with section 673(2) of the 

10 Omnibus Budget Reconciliation Act of 1981) applicable 

11 to a family of the size involved.’’. 

12 (2) CONFORMING AMENDMENTS.—Section 1925 

13 (42 U.S.C. 1396r–6) is amended, in subsections 

14 (a)(1) and (b)(1), by inserting ‘‘, but subject to sub15 section (h),’’ after ‘‘Notwithstanding any other pro16 vision of this title,’’ each place it appears. 

17 (g) REQUIREMENT OF NOTICE FOR ALL FAMILIES

18 LOSING TANF.—Subsection (a)(2) of section 1925 (42 

19 U.S.C. 1396r–6) is amended by adding at the end the fol20 lowing flush sentences: 

21 ‘‘Each State shall provide, to families whose aid 

22 under part A or E of title IV has terminated but 

23 whose eligibility for medical assistance under this 

24 title continues, written notice of their ongoing eligi25 bility for such medical assistance. If a State makes 
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1 a determination that any member of a family whose 

2 aid under part A or E of title IV is being terminated 

3 is also no longer eligible for medical assistance under 

4 this title, the notice of such determination shall be 

5 supplemented by a 1-page notification form describ6 ing the different ways in which individuals and fami7 lies may qualify for such medical assistance and ex8 plaining that individuals and families do not have to 

9 be receiving aid under part A or E of title IV in 

10 order to qualify for such medical assistance. Such 

11 notice shall further be supplemented by information 

12 on how to apply for child health assistance under the 

13 State children’s health insurance program under 

14 title XXI and how to apply for medical assistance 

15 under this title.’’. 

16 (h) EXTENDING USE OF OUTSTATIONED WORKERS

17 TO ACCEPT APPLICATIONS FOR TRANSITIONAL MEDICAL

18 ASSISTANCE.—Section 1902(a)(55) (42 U.S.C. 

19 1396a(a)(55)) is amended by inserting ‘‘and under section 

20 1931’’ after ‘‘(a)(10)(A)(ii)(IX)’’. 

21 (i) EFFECTIVE DATES.— 

22 (1) IN GENERAL.—Except as provided in this 

23 subsection, the amendments made by this section 

24 shall apply to calendar quarters beginning on or 

25 after October 1, 2005, without regard to whether or 
327 

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1 not final regulations to carry out such amendments 

2 have been promulgated by such date. 

3 (2) NOTICE.—The amendment made by sub4 section (g) shall take effect 6 months after the date 

5 of enactment of this Act. 

6 (3) DELAY PERMITTED FOR STATE PLAN

7 AMENDMENT.—In the case of a State plan for med8 ical assistance under title XIX of the Social Security 

9 Act which the Secretary of Health and Human Serv10 ices determines requires State legislation (other than 

11 legislation appropriating funds) in order for the plan 

12 to meet the additional requirements imposed by the 

13 amendments made by this section, the State plan 

14 shall not be regarded as failing to comply with the 

15 requirements of such title solely on the basis of its 

16 failure to meet these additional requirements before 

17 the first day of the first calendar quarter beginning 

18 after the close of the first regular session of the 

19 State legislature that begins after the date of enact20 ment of this Act. For purposes of the previous sen21 tence, in the case of a State that has a 2-year legis22 lative session, each year of such session shall be 

23 deemed to be a separate regular session of the State 

24 legislature. 
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1 TITLE VII—EFFECTIVE DATE 

2 SEC. 701. EFFECTIVE DATE. 

3 (a) IN GENERAL.—Except as otherwise provided in 

4 this Act, this Act and the amendments made by this Act 

5 shall take effect on October 1, 2005. 

6 (b) EXCEPTION.—In the case of a State plan under 

7 part A or D of title IV of the Social Security Act which 

8 the Secretary of Health and Human Services determines 

9 requires State legislation in order for the plan to meet the 

10 additional requirements imposed by the amendments made 

11 by this Act, the effective date of the amendments imposing 

12 the additional requirements shall be 3 months after the 

13 first day of the first calendar quarter beginning after the 

14 close of the first regular session of the State legislature 

15 that begins after the date of enactment of this Act. For 

16 purposes of the preceding sentence, in the case of a State 

17 that has a 2-year legislative session, each year of the ses18 sion shall be considered to be a separate regular session 

19 of the State legislature. 

20 SEC. 702. EXTENSION THROUGH REMAINDER OF FISCAL 

21 YEAR 2005. 

22 (a) IN GENERAL.—Except as otherwise provided in 

23 this Act and the amendments made by this Act, activities 

24 authorized by part A of title IV of the Social Security Act, 

25 and by sections 429A, 510, 1108(b), 1130(a), and 1925 
329 

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1 of such Act, shall continue through September 30, 2005, 

2 in the manner authorized for fiscal year 2004, notwith3 standing section 1902(e)(1)(A) of such Act, and out of 

4 any money in the Treasury of the United States not other5 wise appropriated, there are hereby appropriated such 

6 sums as may be necessary for such purpose. Grants and 

7 payments may be made pursuant to this authority through 

8 the fourth quarter of fiscal year 2005 at the level provided 

9 for such activities through the fourth quarter of fiscal year 

10 2004, except that in the case of section 403(a)(4) of such 

11 Act the level of authority shall be $0. 

12 (b) EFFECTIVE DATE.—Subsection (a) shall take ef13 fect on the date of enactment of this Act. 
Calendar No. 60 

109TH CONGRESS 

1ST SESSION S. 667 

A BILL 

To reauthorize and improve the program of block 

care, and for other purposes. needy families, improve access to quality child grants to States for temporary assistance for 

MARCH 17, 2005 

Read twice and placed on the calendar