IIB 

108TH CONGRESS 

1ST SESSION H. R. 4

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 13, 2003

Received; read twice and referred to the Committee on Finance 

AN ACT

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,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Personal Responsi3 bility, Work, and Family Promotion Act of 2003’’. 

4 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

Sec. 4. Findings. 

TITLE I—TANF 

Sec. 101. Purposes. 

Sec. 102. Family assistance grants. 

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

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

Sec. 105. Bonus to reward employment achievement. 

Sec. 106. Contingency fund. 

Sec. 107. Use of funds. 

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

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

Sec. 110. Work participation requirements. 

Sec. 111. Maintenance of effort. 

Sec. 112. Performance improvement. 

Sec. 113. Data collection and reporting. 

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

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

Sec. 116. Studies by the Census Bureau and the General Accounting Office. 

Sec. 117. Definition of assistance. 

Sec. 118. Technical corrections. 

Sec. 119. Fatherhood program. 

Sec. 120. State option to make TANF programs mandatory partners with onestop employment training centers. 

Sec. 121. Sense of the Congress. 

Sec. 122. Extension through fiscal year 2003. 

TITLE II—CHILD CARE 

Sec. 201. Short title. 

Sec. 202. Goals. 

Sec. 203. Authorization of appropriations. 

Sec. 204. Application and plan. 

Sec. 205. Activities to improve the quality of child care. 

Sec. 206. Report by secretary. 

Sec. 207. Definitions. 

Sec. 208. Entitlement funding. 

TITLE III—CHILD SUPPORT 

Sec. 301. Federal matching funds for limited pass through of child support 

payments to families receiving TANF. 
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Sec. 302. State option to pass through all child support payments to families 

that formerly received TANF. 

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

receiving TANF. 

Sec. 304. Mandatory fee for successful child support collection for family that 

has never received TANF. 

Sec. 305. Report on undistributed child support payments. 

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

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

denial. 

Sec. 308. Use of tax refund intercept program to collect past-due child support 

on behalf of children who are not minors. 

Sec. 309. Garnishment of compensation paid to veterans for service-connected 

disabilities in order to enforce child support obligations. 

Sec. 310. Improving Federal debt collection practices. 

Sec. 311. Maintenance of technical assistance funding. 

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

TITLE IV—CHILD WELFARE 

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

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

Sec. 403. Elimination of limitation on number of States that may be granted 

waivers to conduct demonstration projects on same topic. 

Sec. 404. Elimination of limitation on number of waivers that may be granted 

to a single State for demonstration projects. 

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

Sec. 406. Availability of reports. 

Sec. 407. Technical correction. 

TITLE V—SUPPLEMENTAL SECURITY INCOME 

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

TITLE VI—STATE AND LOCAL FLEXIBILITY 

Sec. 601. Program coordination demonstration projects. 

Sec. 602. State food assistance block grant demonstration project. 

TITLE VII—ABSTINENCE EDUCATION 

Sec. 701. Extension of abstinence education program. 

TITLE VIII—TRANSITIONAL MEDICAL ASSISTANCE 

Sec. 801. Extension of medicaid transitional medical assistance program 

through fiscal year 2004. 

Sec. 802. Adjustment to payments for medicaid administrative costs to prevent 

duplicative payments and to fund extension of transitional 

medical assistance. 

TITLE IX—EFFECTIVE DATE 

Sec. 901. Effective date.
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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 provi5 sion, the amendment or repeal shall be considered to be 

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

7 Act. 

8 SEC. 4. FINDINGS. 

9 The Congress makes the following findings: 

10 (1) The Temporary Assistance for Needy Fami11 lies (TANF) Program established by the Personal 

12 Responsibility and Work Opportunity Reconciliation 

13 Act of 1996 (Public Law 104–193) has succeeded in 

14 moving families from welfare to work and reducing 

15 child poverty. 

16 (A) There has been a dramatic increase in 

17 the employment of current and former welfare 

18 recipients. The percentage of working recipients 

19 reached an all-time high in fiscal year 1999 and 

20 continued steady in fiscal years 2000 and 2001. 

21 In fiscal year 2001, 33 percent of adult recipi22 ents were working, compared to less than 7 per23 cent in fiscal year 1992, and 11 percent in fis24 cal year 1996. All States met the overall par25 ticipation rate standard in fiscal year 2001, as 

26 did the District of Columbia and Puerto Rico.
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1 (B) Earnings for welfare recipients re2 maining on the rolls have also increased signifi3 cantly, as have earnings for female-headed 

4 households. The increases have been particu5 larly large for the bottom 2 income quintiles, 

6 that is, those women who are most likely to be 

7 former or present welfare recipients. 

8 (C) Welfare dependency has plummeted. 

9 As of June 2002, 2,025,000 families and 

10 5,008,000 individuals were receiving assistance. 

11 Accordingly, the number of families in the wel12 fare caseload and the number of individuals re13 ceiving cash assistance declined 54 percent and 

14 58 percent, respectively, since the enactment of 

15 TANF. These declines have persisted even as 

16 unemployment rates have increased: unemploy17 ment rates nationwide rose 50 percent, from 

18 3.9 percent in September 2000 to 6 percent in 

19 November 2002, while welfare caseloads contin20 ued to decline. 

21 (D) The child poverty rate continued to de22 cline between 1996 and 2001, falling 20 percent 

23 from 20.5 to 16.3 percent. The 2001 child pov24 erty rate remains at the lowest level since 1979. 

25 Child poverty rates for African-American and 
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1 Hispanic children have also fallen dramatically 

2 during the past 6 years. African-American child 

3 poverty is at the lowest rate on record and His4 panic child poverty is at the lowest level re5 ported in over 20 years. 

6 (E) Despite these gains, States have had 

7 mixed success in fully engaging welfare recipi8 ents in work activities. While all States have 

9 met the overall work participation rates re10 quired by law, in 2001, in an average month, 

only just over 1 11 ⁄3 of all families with an adult 

12 participated in work activities that were count13 able toward the State’s participation rate. Five 

14 jurisdictions failed to meet the more rigorous 2-

15 parent work requirements, and 19 jurisdictions 

16 (States and territories) are not subject to the 2-

17 parent requirements, most because they moved 

18 their 2-parent cases to separate State programs 

19 where they are not subject to a penalty for fail20 ing the 2-parent rates. 

21 (2) As a Nation, we have made substantial 

22 progress in reducing teen pregnancies and births, 

23 slowing increases in nonmarital childbearing, and 

24 improving child support collections and paternity es25 tablishment. 
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1 (A) The teen birth rate has fallen continu2 ously since 1991, down a dramatic 22 percent 

3 by 2000. During the period of 1991–2000, 

4 teenage birth rates fell in all States and the 

5 District of Columbia, Puerto Rico, and the Vir6 gin Islands. Declines also have spanned age, ra7 cial, and ethnic groups. There has been success 

8 in lowering the birth rate for both younger and 

9 older teens. The birth rate for those 15–17 

10 years of age is down 29 percent since 1991, and 

11 the rate for those 18 and 19 is down 16 per12 cent. Between 1991 and 2000, teen birth rates 

13 declined for all women ages 15–19—white, Afri14 can American, American Indian, Asian or Pa15 cific Islander, and Hispanic women ages 15–19. 

16 The rate for African American teens—until re17 cently the highest—experienced the largest de18 cline, down 31 percent from 1991 to 2000, to 

19 reach the lowest rate ever reported for this 

20 group. Most births to teens are nonmarital; in 

21 2000, about 73 percent of the births to teens 

22 aged 15–19 occurred outside of marriage. 

23 (B) Nonmarital childbearing continued to 

24 increase slightly in 2001, however not at the 

25 sharp rates of increase seen in recent decades. 
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1 The birth rate among unmarried women in 

2 2001 was 4 percent lower than its peak reached 

3 in 1994, while the proportion of births occur4 ring outside of marriage has remained at ap5 proximately 33 percent since 1998. 

6 (C) The negative consequences of out-of7 wedlock birth on the mother, the child, the fam8 ily, and society are well documented. These in9 clude increased likelihood of welfare depend10 ency, increased risks of low birth weight, poor 

11 cognitive development, child abuse and neglect, 

12 and teen parenthood, and decreased likelihood 

13 of having an intact marriage during adulthood. 

14 (D) An estimated 24,500,000 children do 

15 not live with their biological fathers, and 

16 7,100,000 children do not live with their bio17 logical mothers. These facts are attributable 

18 largely to declining marriage rates, increasing 

19 divorce rates, and increasing rates of nonmar20 ital births during the latter part of the 20th 

21 century. 

22 (E) There has been a dramatic rise in co23 habitation as marriages have declined. Only 40 

24 percent of children of cohabiting couples will 

25 see their parents marry. Those who do marry
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1 experience a 50 percent higher divorce rate. 

2 Children in single-parent households and cohab3 iting households are at much higher risk of 

4 child abuse than children in intact married and 

5 stepparent families. 

6 (F) Children who live apart from their bio7 logical fathers, on average, are more likely to be 

8 poor, experience educational, health, emotional, 

9 and psychological problems, be victims of child 

10 abuse, engage in criminal behavior, and become 

11 involved with the juvenile justice system than 

12 their peers who live with their married, biologi13 cal mother and father. A child living in a single14 parent family is nearly 5 times as likely to be 

15 poor as a child living in a married-couple fam16 ily. In 2001, in married-couple families, the 

17 child poverty rate was 8 percent, and in house18 holds headed by a single mother, the poverty 

19 rate was 39.3 percent. 

20 (G) Since the enactment of the Personal 

21 Responsibility and Work Opportunity Reconcili22 ation Act of 1996, child support collections 

23 within the child support enforcement system 

24 have grown every year, increasing from 

25 $12,000,000,000 in fiscal year 1996 to nearly 
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1 $19,000,000,000 in fiscal year 2001. The num2 ber of paternities established or acknowledged 

3 in fiscal year 2002 reached an historic high of 

4 over 1,500,000—which includes more than a 

5 100 percent increase through in-hospital ac6 knowledgement programs to 790,595 in 2001 

7 from 324,652 in 1996. Child support collections 

8 were made in well over 7,000,000 cases in fiscal 

9 year 2000, significantly more than the almost 

10 4,000,000 cases having a collection in 1996. 

11 (3) The Personal Responsibility and Work Op12 portunity Reconciliation Act of 1996 gave States 

13 great flexibility in the use of Federal funds to de14 velop innovative programs to help families leave wel15 fare and begin employment and to encourage the 

16 formation of 2-parent families. 

17 (A) Total Federal and State TANF ex18 penditures in fiscal year 2001 were 

19 $25,500,000,000, up from $24,000,000,000 in 

20 fiscal year 2000 and $22,600,000,000 in fiscal 

21 year 1999. This increased spending is attrib22 utable to significant new investments in sup23 portive services in the TANF program, such as 

24 child care and activities to support work. 
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1 (B) Since the welfare reform effort began 

2 there has been a dramatic increase in work par3 ticipation (including employment, community 

4 service, and work experience) among welfare re5 cipients, as well as an unprecedented reduction 

6 in the caseload because recipients have left wel7 fare for work. 

8 (C) States are making policy choices and 

9 investment decisions best suited to the needs of 

10 their citizens. 

11 (i) To expand aid to working families, 

12 all States disregard a portion of a family’s 

13 earned income when determining benefit 

14 levels. 

15 (ii) Most States increased the limits 

16 on countable assets above the former Aid 

17 to Families with Dependent Children 

18 (AFDC) program. Every State has in19 creased the vehicle asset level above the 

20 prior AFDC limit for a family’s primary 

21 automobile. 

22 (iii) States are experimenting with 

23 programs to promote marriage and father 

24 involvement. Over half the States have 

25 eliminated restrictions on 2-parent fami-
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1 lies. Many States use TANF, child sup2 port, or State funds to support community3 based activities to help fathers become 

4 more involved in their children’s lives or 

5 strengthen relationships between mothers 

6 and fathers. 

7 (4) Therefore, it is the sense of the Congress 

8 that increasing success in moving families from wel9 fare to work, as well as in promoting healthy mar10 riage and other means of improving child well-being, 

11 are very important Government interests and the 

12 policy contained in part A of title IV of the Social 

13 Security Act (as amended by this Act) is intended 

14 to serve these ends. 

15 TITLE I—TANF 

16 SEC. 101. PURPOSES. 

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

18 (1) in the matter preceding paragraph (1), by 

19 striking ‘‘increase’’ and inserting ‘‘improve child 

20 well-being by increasing’’; 

21 (2) in paragraph (1), by inserting ‘‘and serv22 ices’’ after ‘‘assistance’’; 

23 (3) in paragraph (2), by striking ‘‘parents on 

24 government benefits’’ and inserting ‘‘families on gov25 ernment benefits and reduce poverty’’; and
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1 (4) in paragraph (4), by striking ‘‘two-parent 

2 families’’ and inserting ‘‘healthy, 2-parent married 

3 families, and encourage responsible fatherhood’’. 

4 SEC. 102. FAMILY ASSISTANCE GRANTS. 

5 (a) EXTENSION OF AUTHORITY.—Section 

6 403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is amended—

7 (1) by striking ‘‘1996, 1997, 1998, 1999, 2000, 

8 2001, and 2002’’ and inserting ‘‘2004 through 

9 2008’’; and 

10 (2) by inserting ‘‘payable to the State for the 

11 fiscal year’’ before the period. 

12 (b) STATE FAMILY ASSISTANCE GRANT.—Section 

13 403(a)(1) (42 U.S.C. 603(a)(1)) is amended by striking 

14 subparagraphs (B) through (E) and inserting the fol15 lowing: 

16 ‘‘(B) STATE FAMILY ASSISTANCE

17 GRANT.—The State family assistance grant 

18 payable to a State for a fiscal year shall be the 

19 amount that bears the same ratio to the 

20 amount specified in subparagraph (C) of this 

21 paragraph as the amount required to be paid to 

22 the State under this paragraph for fiscal year 

23 2002 (determined without regard to any reduc24 tion pursuant to section 409 or 412(a)(1)) 

25 bears to the total amount required to be paid 
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1 under this paragraph for fiscal year 2002 (as so 

2 determined). 

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

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

6 each of fiscal years 2004 through 2008 

7 $16,566,542,000 for grants under this para8 graph.’’. 

9 (c) MATCHING GRANTS FOR THE TERRITORIES.—

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

11 striking ‘‘1997 through 2002’’ and inserting ‘‘2004 

12 through 2008’’. 

13 SEC. 103. PROMOTION OF FAMILY FORMATION AND 

14 HEALTHY MARRIAGE. 

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

16 602(a)(1)(A)) is amended by adding at the end the fol17 lowing: 

18 ‘‘(vii) Encourage equitable treatment 

19 of married, 2-parent families under the 

20 program referred to in clause (i).’’. 

21 (b) HEALTHY MARRIAGE PROMOTION GRANTS; RE22 PEAL OF BONUS FOR REDUCTION OF ILLEGITIMACY

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

24 amended to read as follows: 
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1 ‘‘(2) HEALTHY MARRIAGE PROMOTION

2 GRANTS.—

3 ‘‘(A) AUTHORITY.—The Secretary shall 

4 award competitive grants to States, territories, 

5 and tribal organizations for not more than 50 

6 percent of the cost of developing and imple7 menting innovative programs to promote and 

8 support healthy, married, 2-parent families. 

9 ‘‘(B) HEALTHY MARRIAGE PROMOTION AC10 TIVITIES.—Funds provided under subparagraph 

11 (A) shall be used to support any of the fol12 lowing programs or activities: 

13 ‘‘(i) Public advertising campaigns on 

14 the value of marriage and the skills needed 

15 to increase marital stability and health. 

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

17 value of marriage, relationship skills, and 

18 budgeting. 

19 ‘‘(iii) Marriage education, marriage 

20 skills, and relationship skills programs, 

21 that may include parenting skills, financial 

22 management, conflict resolution, and job 

23 and career advancement, for non-married 

24 pregnant women and non-married expect25 ant fathers. 
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1 ‘‘(iv) Pre-marital education and mar2 riage skills training for engaged couples 

3 and for couples or individuals interested in 

4 marriage. 

5 ‘‘(v) Marriage enhancement and mar6 riage skills training programs for married 

7 couples. 

8 ‘‘(vi) Divorce reduction programs that 

9 teach relationship skills. 

10 ‘‘(vii) Marriage mentoring programs 

11 which use married couples as role models 

12 and mentors in at-risk communities. 

13 ‘‘(viii) Programs to reduce the dis14 incentives to marriage in means-tested aid 

15 programs, if offered in conjunction with 

16 any activity described in this subpara17 graph. 

18 ‘‘(C) APPROPRIATION.—

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

20 in the Treasury of the United States not 

21 otherwise appropriated, there are appro22 priated for each of fiscal years 2003 

23 through 2008 $100,000,000 for grants 

24 under this paragraph.
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1 ‘‘(ii) EXTENDED AVAILABILITY OF

2 FY2003 FUNDS.—Funds appropriated 

3 under clause (i) for fiscal year 2003 shall 

4 remain available to the Secretary through 

5 fiscal year 2004, for grants under this 

6 paragraph for fiscal year 2003.’’. 

7 (c) COUNTING OF SPENDING ON NON-ELIGIBLE

8 FAMILIES TO PREVENT AND REDUCE INCIDENCE OF

9 OUT-OF-WEDLOCK BIRTHS, ENCOURAGE FORMATION

10 AND MAINTENANCE OF HEALTHY, 2-PARENT MARRIED

11 FAMILIES, OR ENCOURAGE RESPONSIBLE FATHER12 HOOD.—Section 409(a)(7)(B)(i) (42 U.S.C. 

13 609(a)(7)(B)(i)) is amended by adding at the end the fol14 lowing: 

15 ‘‘(V) COUNTING OF SPENDING

16 ON NON-ELIGIBLE FAMILIES TO PRE17 VENT AND REDUCE INCIDENCE OF

18 OUT-OF-WEDLOCK BIRTHS, ENCOUR19 AGE FORMATION AND MAINTENANCE

20 OF HEALTHY, 2-PARENT MARRIED

21 FAMILIES, OR ENCOURAGE RESPON22 SIBLE FATHERHOOD.—The term 

23 ‘qualified State expenditures’ includes 

24 the total expenditures by the State 

25 during the fiscal year under all State 
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1 programs for a purpose described in 

2 paragraph (3) or (4) of section 

3 401(a).’’. 

4 SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION IN5 CREASES IN CERTAIN STATES. 

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

7 amended—

8 (1) in the subparagraph heading, by striking 

9 ‘‘OF GRANTS FOR FISCAL YEAR 2002’’; 

10 (2) in clause (i), by striking ‘‘fiscal year 2002’’ 

11 and inserting ‘‘each of fiscal years 2004 through 

12 2007’’; 

13 (3) in clause (ii), by striking ‘‘2002’’ and in14 serting ‘‘2007’’; and 

15 (4) in clause (iii), by striking ‘‘fiscal year 

16 2002’’ and inserting ‘‘each of fiscal years 2004 

17 through 2007’’. 

18 SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVE19 MENT. 

20 (a) REALLOCATION OF FUNDING.—

21 (1) IN GENERAL.—Section 403(a)(4) (42 

22 U.S.C. 603(a)(4)) is amended—

23 (A) in the paragraph heading, by striking 

24 ‘‘HIGH PERFORMANCE STATES’’ and inserting 

25 ‘‘EMPLOYMENT ACHIEVEMENT’’; 
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1 (B) in subparagraph (D)(ii)—

2 (i) in subclause (I), by striking 

3 ‘‘equals $200,000,000’’ and inserting 

4 ‘‘(other than 2003) equals $200,000,000, 

5 and for bonus year 2003 equals 

6 $100,000,000’’; and 

7 (ii) in subclause (II), by striking 

8 ‘‘$1,000,000,000’’ and inserting 

9 ‘‘$900,000,000’’; and 

10 (C) in subparagraph (F), by striking 

11 ‘‘$1,000,000,000’’ and inserting 

12 ‘‘$900,000,000’’. 

13 (2) EFFECTIVE DATE.—The amendments made 

14 by paragraph (1) shall take effect on the date of the 

15 enactment of this Act, or September 30, 2003, 

16 whichever is earlier. 

17 (b) BONUS TO REWARD EMPLOYMENT ACHIEVE18 MENT.—

19 (1) IN GENERAL.—Section 403(a)(4) (42 

20 U.S.C. 603(a)(4)) is amended by striking subpara21 graphs (A) through (F) and inserting the following: 

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

23 make a grant pursuant to this paragraph to 

24 each State for each bonus year for which the 

25 State is an employment achievement State. 
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1 ‘‘(B) AMOUNT OF GRANT.—

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

3 (ii) of this subparagraph, the Secretary 

4 shall determine the amount of the grant 

5 payable under this paragraph to an em6 ployment achievement State for a bonus 

7 year, which shall be based on the perform8 ance of the State as determined under sub9 paragraph (D)(i) for the fiscal year that 

10 immediately precedes the bonus year. 

11 ‘‘(ii) LIMITATION.—The amount pay12 able to a State under this paragraph for a 

13 bonus year shall not exceed 5 percent of 

14 the State family assistance grant. 

15 ‘‘(C) FORMULA FOR MEASURING STATE

16 PERFORMANCE.—

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

18 (ii), not later than October 1, 2003, the 

19 Secretary, in consultation with the States, 

20 shall develop a formula for measuring 

21 State performance in operating the State 

22 program funded under this part so as to 

23 achieve the goals of employment entry, job 

24 retention, and increased earnings from em25 ployment for families receiving assistance
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1 under the program, as measured on an ab2 solute basis and on the basis of improve3 ment in State performance. 

4 ‘‘(ii) SPECIAL RULE FOR BONUS YEAR

5 2004.—For the purposes of awarding a 

6 bonus under this paragraph for bonus year 

7 2004, the Secretary may measure the per8 formance of a State in fiscal year 2003 

9 using the job entry rate, job retention rate, 

10 and earnings gain rate components of the 

11 formula developed under section 

12 403(a)(4)(C) as in effect immediately be13 fore the effective date of this paragraph. 

14 ‘‘(D) DETERMINATION OF STATE PER15 FORMANCE.—For each bonus year, the Sec16 retary shall—

17 ‘‘(i) use the formula developed under 

18 subparagraph (C) to determine the per19 formance of each eligible State for the fis20 cal year that precedes the bonus year; and 

21 ‘‘(ii) prescribe performance standards 

22 in such a manner so as to ensure that—

23 ‘‘(I) the average annual total 

24 amount of grants to be made under 
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1 this paragraph for each bonus year 

2 equals $100,000,000; and 

3 ‘‘(II) the total amount of grants 

4 to be made under this paragraph for 

5 all bonus years equals $600,000,000. 

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

7 ‘‘(i) BONUS YEAR.—The term ‘bonus 

8 year’ means each of fiscal years 2004 

9 through 2009. 

10 ‘‘(ii) EMPLOYMENT ACHIEVEMENT

11 STATE.—The term ‘employment achieve12 ment State’ means, with respect to a bonus 

13 year, an eligible State whose performance 

14 determined pursuant to subparagraph 

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

16 bonus year equals or exceeds the perform17 ance standards prescribed under subpara18 graph (D)(ii) for such preceding fiscal 

19 year. 

20 ‘‘(F) APPROPRIATION.—

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

22 in the Treasury of the United States not 

23 otherwise appropriated, there are appro24 priated for fiscal years 2004 through 2009 
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1 $600,000,000 for grants under this para2 graph. 

3 ‘‘(ii) EXTENDED AVAILABILITY OF

4 PRIOR APPROPRIATION.—Amounts appro5 priated under section 403(a)(4)(F) of the 

6 Social Security Act (as in effect before the 

7 date of the enactment of this clause) that 

8 have not been expended as of such date of 

9 enactment shall remain available through 

10 fiscal year 2004 for grants under section 

11 403(a)(4) of such Act (as in effect before 

12 such date of enactment) for bonus year 

13 2003. 

14 ‘‘(G) GRANTS FOR TRIBAL ORGANIZA15 TIONS.—This paragraph shall apply with re16 spect to tribal organizations in the same man17 ner in which this paragraph applies with re18 spect to States. In determining the criteria 

19 under which to make grants to tribal organiza20 tions under this paragraph, the Secretary shall 

21 consult with tribal organizations.’’. 

22 (2) EFFECTIVE DATE.—The amendment made 

23 by paragraph (1), except for section 403(a)(4)(F)(ii) 

24 of the Social Security Act as inserted by the amend25 ment, shall take effect on October 1, 2003. 
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1 SEC. 106. CONTINGENCY FUND. 

2 (a) DEPOSITS INTO FUND.—Section 403(b)(2) (42 

3 U.S.C. 603(b)(2)) is amended—

4 (1) by striking ‘‘1997, 1998, 1999, 2000, 2001, 

5 and 2002’’ and inserting ‘‘2004 through 2008’’; and 

6 (2) by striking all that follows 

7 ‘‘$2,000,000,000’’ and inserting a period. 

8 (b) GRANTS.—Section 403(b)(3)(C)(ii) (42 U.S.C. 

9 603(b)(3)(C)(ii)) is amended by striking ‘‘fiscal years 

10 1997 through 2002’’ and inserting ‘‘fiscal years 2004 

11 through 2008’’. 

12 (c) DEFINITION OF NEEDY STATE.—Clauses (i) and 

13 (ii) of section 403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are 

14 amended by inserting after ‘‘1996’’ the following: ‘‘, and 

15 the Food Stamp Act of 1977 as in effect during the cor16 responding 3-month period in the fiscal year preceding 

17 such most recently concluded 3-month period,’’. 

18 (d) ANNUAL RECONCILIATION: FEDERAL MATCHING

19 OF STATE EXPENDITURES ABOVE ‘‘MAINTENANCE OF

20 EFFORT’’ LEVEL.—Section 403(b)(6) (42 U.S.C. 

21 603(b)(6)) is amended—

22 (1) in subparagraph (A)(ii)—

23 (A) by adding ‘‘and’’ at the end of sub24 clause (I); 

25 (B) by striking ‘‘; and’’ at the end of sub26 clause (II) and inserting a period; and
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1 (C) by striking subclause (III); 

2 (2) in subparagraph (B)(i)(II), by striking all 

3 that follows ‘‘section 409(a)(7)(B)(iii))’’ and insert4 ing a period; 

5 (3) by amending subparagraph (B)(ii)(I) to 

6 read as follows: 

7 ‘‘(I) the qualified State expendi8 tures (as defined in section 

9 409(a)(7)(B)(i)) for the fiscal year; 

10 plus’’; and 

11 (4) by striking subparagraph (C). 

12 (e) CONSIDERATION OF CERTAIN CHILD CARE EX13 PENDITURES IN DETERMINING STATE COMPLIANCE

14 WITH CONTINGENCY FUND MAINTENANCE OF EFFORT

15 REQUIREMENT.—Section 409(a)(10) (42 U.S.C. 

16 609(a)(10)) is amended—

17 (1) by striking ‘‘(other than the expenditures 

18 described in subclause (I)(bb) of that paragraph)) 

19 under the State program funded under this part’’ 

20 and inserting a close parenthesis; and 

21 (2) by striking ‘‘excluding any amount ex22 pended by the State for child care under subsection 

23 (g) or (i) of section 402 (as in effect during fiscal 

24 year 1994) for fiscal year 1994,’’. 
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1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on October 1, 2003. 

3 SEC. 107. USE OF FUNDS. 

4 (a) GENERAL RULES.—Section 404(a)(2) (42 U.S.C. 

5 604(a)(2)) is amended by striking ‘‘in any manner that’’ 

6 and inserting ‘‘for any purposes or activities for which’’. 

7 (b) TREATMENT OF INTERSTATE IMMIGRANTS.—

8 (1) STATE PLAN PROVISION.—Section 

9 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended 

10 by striking clause (i) and redesignating clauses (ii) 

11 through (iv) as clauses (i) through (iii), respectively. 

12 (2) USE OF FUNDS.—Section 404 (42 U.S.C. 

13 604) is amended by striking subsection (c). 

14 (c) INCREASE IN AMOUNT TRANSFERABLE TO CHILD

15 CARE.—Section 404(d)(1) (42 U.S.C. 604(d)(1)) is 

16 amended by striking ‘‘30’’ and inserting ‘‘50’’. 

17 (d) INCREASE IN AMOUNT TRANSFERABLE TO TITLE

18 XX PROGRAMS.—Section 404(d)(2)(B) (42 U.S.C. 

19 604(d)(2)(B)) is amended to read as follows: 

20 ‘‘(B) APPLICABLE PERCENT.—For pur21 poses of subparagraph (A), the applicable per22 cent is 10 percent for fiscal year 2004 and each 

23 succeeding fiscal year.’’. 

24 (e) CLARIFICATION OF AUTHORITY OF STATES TO

25 USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS
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1 TO PROVIDE TANF BENEFITS AND SERVICES.—Section 

2 404(e) (42 U.S.C. 604(e)) is amended to read as follows: 

3 ‘‘(e) AUTHORITY TO CARRYOVER OR RESERVE CER4 TAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FU5 TURE CONTINGENCIES.—

6 ‘‘(1) CARRYOVER.—A State or tribe may use a 

7 grant made to the State or tribe under this part for 

8 any fiscal year to provide, without fiscal year limita9 tion, any benefit or service that may be provided 

10 under the State or tribal program funded under this 

11 part. 

12 ‘‘(2) CONTINGENCY RESERVE.—A State or tribe 

13 may designate any portion of a grant made to the 

14 State or tribe under this part as a contingency re15 serve for future needs, and may use any amount so 

16 designated to provide, without fiscal year limitation, 

17 any benefit or service that may be provided under 

18 the State or tribal program funded under this part. 

19 If a State or tribe so designates a portion of such 

20 a grant, the State shall, on an annual basis, include 

21 in its report under section 411(a) the amount so 

22 designated.’’. 
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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(a) (42 U.S.C. 609(a)) is 

7 amended by striking paragraph (6). 

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

9 striking subsection (f) and redesignating subsections 

10 (g) through (i) as subsections (f) through (h), re11 spectively. 

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

13 is amended by striking ‘‘406,’’. 

14 SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF15 SUFFICIENCY PLAN REQUIREMENTS. 

16 (a) MODIFICATION OF STATE PLAN REQUIRE17 MENTS.—Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) 

18 is amended by striking clauses (ii) and (iii) and inserting 

19 the following: 

20 ‘‘(ii) Require a parent or caretaker re21 ceiving assistance under the program to 

22 engage in work or alternative self-suffi23 ciency activities (as defined by the State), 

24 consistent with section 407(e)(2). 

25 ‘‘(iii) Require families receiving assist26 ance under the program to engage in ac-
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1 tivities in accordance with family self-suffi2 ciency plans developed pursuant to section 

3 408(b).’’. 

4 (b) ESTABLISHMENT OF FAMILY SELF-SUFFICIENCY

5 PLANS.—

6 (1) IN GENERAL.—Section 408(b) (42 U.S.C. 

7 608(b)) is amended to read as follows: 

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

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

10 is made under section 403 shall—

11 ‘‘(A) assess, in the manner deemed appro12 priate by the State, the skills, prior work expe13 rience, and employability of each work-eligible 

14 individual (as defined in section 407(b)(2)(C)) 

15 receiving assistance under the State program 

16 funded under this part; 

17 ‘‘(B) establish for each family that in18 cludes such an individual, in consultation as the 

19 State deems appropriate with the individual, a 

20 self-sufficiency plan that specifies appropriate 

21 activities described in the State plan submitted 

22 pursuant to section 402, including direct work 

23 activities as appropriate designed to assist the 

24 family in achieving their maximum degree of 

25 self-sufficiency, and that provides for the ongo-
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1 ing participation of the individual in the activi2 ties; 

3 ‘‘(C) require, at a minimum, each such in4 dividual to participate in activities in accord5 ance with the self-sufficiency plan; 

6 ‘‘(D) monitor the participation of each 

7 such individual in the activities specified in the 

8 self sufficiency plan, and regularly review the 

9 progress of the family toward self-sufficiency; 

10 ‘‘(E) upon such a review, revise the self11 sufficiency plan and activities as the State 

12 deems appropriate. 

13 ‘‘(2) TIMING.—The State shall comply with 

14 paragraph (1) with respect to a family—

15 ‘‘(A) in the case of a family that, as of Oc16 tober 1, 2003, is not receiving assistance from 

17 the State program funded under this part, not 

18 later than 60 days after the family first receives 

19 assistance on the basis of the most recent appli20 cation for the assistance; or 

21 ‘‘(B) in the case of a family that, as of 

22 such date, is receiving the assistance, not later 

23 than 12 months after the date of enactment of 

24 this subsection.
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1 ‘‘(3) STATE DISCRETION.—A State shall have 

2 sole discretion, consistent with section 407, to define 

3 and design activities for families for purposes of this 

4 subsection, to develop methods for monitoring and 

5 reviewing progress pursuant to this subsection, and 

6 to make modifications to the plan as the State 

7 deems appropriate to assist the individual in increas8 ing their degree of self-sufficiency. 

9 ‘‘(4) RULE OF INTERPRETATION.—Nothing in 

10 this part shall preclude a State from requiring par11 ticipation in work and any other activities the State 

12 deems appropriate for helping families achieve self13 sufficiency and improving child well-being.’’. 

14 (2) PENALTY FOR FAILURE TO ESTABLISH

15 FAMILY SELF-SUFFICIENCY PLAN.—Section 

16 409(a)(3) (42 U.S.C. 609(a)(3)) is amended—

17 (A) in the paragraph heading, by inserting 

18 ‘‘OR ESTABLISH FAMILY SELF-SUFFICIENCY

19 PLAN’’ after ‘‘RATES’’; and 

20 (B) in subparagraph (A), by inserting ‘‘or 

21 408(b)’’ after ‘‘407(a)’’. 

22 SEC. 110. WORK PARTICIPATION REQUIREMENTS. 

23 (a) ELIMINATION OF SEPARATE PARTICIPATION

24 RATE REQUIREMENTS FOR 2-PARENT FAMILIES.—

25 (1) IN GENERAL.—
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1 (A) Section 407 (42 U.S.C. 607) is amend2 ed in each of subsections (a) and (b) by striking 

3 paragraph (2). 

4 (B) Section 407(b)(4) (42 U.S.C. 

5 607(b)(4)) is amended by striking ‘‘paragraphs 

6 (1)(B) and (2)(B)’’ and inserting ‘‘paragraph 

7 (1)(B)’’. 

8 (C) Section 407(c)(1) (42 U.S.C. 

9 607(c)(1)) is amended by striking subparagraph 

10 (B). 

11 (D) Section 407(c)(2)(D) (42 U.S.C. 

12 607(c)(2)(D)) is amended by striking ‘‘para13 graphs (1)(B)(i) and (2)(B) of subsection (b)’’ 

14 and inserting ‘‘subsection (b)(1)(B)(i)’’. 

15 (2) EFFECTIVE DATE.—The amendments made 

16 by paragraph (1) shall take effect on October 1, 

17 2002. 

18 (b) WORK PARTICIPATION REQUIREMENTS.—Section 

19 407 (42 U.S.C. 607) is amended by striking all that pre20 cedes subsection (b)(3) and inserting the following: 

21 ‘‘SEC. 407. WORK PARTICIPATION REQUIREMENTS. 

22 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—A 

23 State to which a grant is made under section 403 for a 

24 fiscal year shall achieve a minimum participation rate 

25 equal to not less than—
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HR 4 RFS 

1 ‘‘(1) 50 percent for fiscal year 2004; 

2 ‘‘(2) 55 percent for fiscal year 2005; 

3 ‘‘(3) 60 percent for fiscal year 2006; 

4 ‘‘(4) 65 percent for fiscal year 2007; and 

5 ‘‘(5) 70 percent for fiscal year 2008 and each 

6 succeeding fiscal year. 

7 ‘‘(b) CALCULATION OF PARTICIPATION RATES.—

8 ‘‘(1) AVERAGE MONTHLY RATE.—For purposes 

9 of subsection (a), the participation rate of a State 

10 for a fiscal year is the average of the participation 

11 rates of the State for each month in the fiscal year. 

12 ‘‘(2) MONTHLY PARTICIPATION RATES; INCOR13 PORATION OF 40-HOUR WORK WEEK STANDARD.—

14 ‘‘(A) IN GENERAL.—For purposes of para15 graph (1), the participation rate of a State for 

16 a month is—

17 ‘‘(i) the total number of countable 

18 hours (as defined in subsection (c)) with 

19 respect to the counted families for the 

20 State for the month; divided by 

21 ‘‘(ii) 160 multiplied by the number of 

22 counted families for the State for the 

23 month. 

24 ‘‘(B) COUNTED FAMILIES DEFINED.—
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1 ‘‘(i) IN GENERAL.—In subparagraph 

2 (A), the term ‘counted family’ means, with 

3 respect to a State and a month, a family 

4 that includes a work-eligible individual and 

5 that receives assistance in the month under 

6 the State program funded under this part, 

7 subject to clause (ii). 

8 ‘‘(ii) STATE OPTION TO EXCLUDE

9 CERTAIN FAMILIES.—At the option of a 

10 State, the term ‘counted family’ shall not 

11 include—

12 ‘‘(I) a family in the first month 

13 for which the family receives assist14 ance from a State program funded 

15 under this part on the basis of the 

16 most recent application for such as17 sistance; or 

18 ‘‘(II) on a case-by-case basis, a 

19 family in which the youngest child has 

20 not attained 12 months of age. 

21 ‘‘(iii) STATE OPTION TO INCLUDE IN22 DIVIDUALS RECEIVING ASSISTANCE UNDER

23 A TRIBAL FAMILY ASSISTANCE PLAN OR

24 TRIBAL WORK PROGRAM.—At the option of 

25 a State, the term ‘counted family’ may in-
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1 clude families in the State that are receiv2 ing assistance under a tribal family assist3 ance plan approved under section 412 or 

4 under a tribal work program to which 

5 funds are provided under this part. 

6 ‘‘(C) WORK-ELIGIBLE INDIVIDUAL DE7 FINED.—In this section, the term ‘work-eligible 

8 individual’ means an individual—

9 ‘‘(i) who is married or a single head 

10 of household; and 

11 ‘‘(ii) whose needs are (or, but for 

12 sanctions under this part that have been in 

13 effect for more than 3 months (whether or 

14 not consecutive) in the preceding 12 

15 months or under part D, would be) in16 cluded in determining the amount of cash 

17 assistance to be provided to the family 

18 under the State program funded under this 

19 part.’’. 

20 (c) RECALIBRATION OF CASELOAD REDUCTION

21 CREDIT.—

22 (1) IN GENERAL.—Section 407(b)(3)(A)(ii) (42 

23 U.S.C. 607(b)(3)(A)(ii)) is amended to read as fol24 lows: 
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1 ‘‘(ii) the average monthly number of 

2 families that received assistance under the 

3 State program funded under this part dur4 ing the base year.’’. 

5 (2) CONFORMING AMENDMENT.—Section 

6 407(b)(3)(B) (42 U.S.C. 607(b)(3)(B)) is amended 

7 by striking ‘‘and eligibility criteria’’ and all that fol8 lows through the close parenthesis and inserting 

9 ‘‘and the eligibility criteria in effect during the then 

10 applicable base year’’. 

11 (3) BASE YEAR DEFINED.—Section 407(b)(3) 

12 (42 U.S.C. 607(b)(3)) is amended by adding at the 

13 end the following: 

14 ‘‘(C) BASE YEAR DEFINED.—In this para15 graph, the term ‘base year’ means, with respect 

16 to a fiscal year—

17 ‘‘(I) if the fiscal year is fiscal 

18 year 2004, fiscal year 1996; 

19 ‘‘(II) if the fiscal year is fiscal 

20 year 2005, fiscal year 1998; 

21 ‘‘(III) if the fiscal year is fiscal 

22 year 2006, fiscal year 2001; or 

23 ‘‘(IV) if the fiscal year is fiscal 

24 year 2007 or any succeeding fiscal
37

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1 year, the then 4th preceding fiscal 

2 year.’’. 

3 (d) SUPERACHIEVER CREDIT.—Section 407(b) (42 

4 U.S.C. 607(b)) is amended by striking paragraphs (4) and 

5 (5) and inserting the following: 

6 ‘‘(4) SUPERACHIEVER CREDIT.—

7 ‘‘(A) IN GENERAL.—The participation 

8 rate, determined under paragraphs (1) and (2) 

9 of this subsection, of a superachiever State for 

10 a fiscal year shall be increased by the lesser 

11 of—

12 ‘‘(i) the amount (if any) of the super13 achiever credit applicable to the State; or 

14 ‘‘(ii) the number of percentage points 

15 (if any) by which the minimum participa16 tion rate required by subsection (a) for the 

17 fiscal year exceeds 50 percent. 

18 ‘‘(B) SUPERACHIEVER STATE.—For pur19 poses of subparagraph (A), a State is a super20 achiever State if the State caseload for fiscal 

21 year 2001 has declined by at least 60 percent 

22 from the State caseload for fiscal year 1995. 

23 ‘‘(C) AMOUNT OF CREDIT.—The super24 achiever credit applicable to a State is the num25 ber of percentage points (if any) by which the 
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1 decline referred to in subparagraph (B) exceeds 

2 60 percent. 

3 ‘‘(D) DEFINITIONS.—In this paragraph: 

4 ‘‘(i) STATE CASELOAD FOR FISCAL

5 YEAR 2001.—The term ‘State caseload for 

6 fiscal year 2001’ means the average 

7 monthly number of families that received 

8 assistance during fiscal year 2001 under 

9 the State program funded under this part. 

10 ‘‘(ii) STATE CASELOAD FOR FISCAL

11 YEAR 1995.—The term ‘State caseload for 

12 fiscal year 1995’ means the average 

13 monthly number of families that received 

14 aid under the State plan approved under 

15 part A (as in effect on September 30, 

16 1995) during fiscal year 1995.’’. 

17 (e) COUNTABLE HOURS.—Section 407 of such Act 

18 (42 U.S.C. 607) is amended by striking subsections (c) 

19 and (d) and inserting the following: 

20 ‘‘(c) COUNTABLE HOURS.—

21 ‘‘(1) DEFINITION.—In subsection (b)(2), the 

22 term ‘countable hours’ means, with respect to a fam23 ily for a month, the total number of hours in the 

24 month in which any member of the family who is a 

25 work-eligible individual is engaged in a direct work 
39

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1 activity or other activities specified by the State (ex2 cluding an activity that does not address a purpose 

3 specified in section 401(a)), subject to the other pro4 visions of this subsection. 

5 ‘‘(2) LIMITATIONS.—Subject to such regula6 tions as the Secretary may prescribe: 

7 ‘‘(A) MINIMUM WEEKLY AVERAGE OF 24

8 HOURS OF DIRECT WORK ACTIVITIES RE9 QUIRED.—If the work-eligible individuals in a 

10 family are engaged in a direct work activity for 

11 an average total of fewer than 24 hours per 

12 week in a month, then the number of countable 

13 hours with respect to the family for the month 

14 shall be zero. 

15 ‘‘(B) MAXIMUM WEEKLY AVERAGE OF 16

16 HOURS OF OTHER ACTIVITIES.—An average of 

17 not more than 16 hours per week of activities 

18 specified by the State (subject to the exclusion 

19 described in paragraph (1)) may be considered 

20 countable hours in a month with respect to a 

21 family. 

22 ‘‘(3) SPECIAL RULES.—For purposes of para23 graph (1): 

24 ‘‘(A) PARTICIPATION IN QUALIFIED AC25 TIVITIES.—
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1 ‘‘(i) IN GENERAL.—If, with the ap2 proval of the State, the work-eligible indi3 viduals in a family are engaged in 1 or 

4 more qualified activities for an average 

5 total of at least 24 hours per week in a 

6 month, then all such engagement in the 

7 month shall be considered engagement in a 

8 direct work activity, subject to clause (iii). 

9 ‘‘(ii) QUALIFIED ACTIVITY DE10 FINED.—The term ‘qualified activity’ 

11 means an activity specified by the State 

12 (subject to the exclusion described in para13 graph (1)) that meets such standards and 

14 criteria as the State may specify, includ15 ing—

16 ‘‘(I) substance abuse counseling 

17 or treatment; 

18 ‘‘(II) rehabilitation treatment 

19 and services; 

20 ‘‘(III) work-related education or 

21 training directed at enabling the fam22 ily member to work; 

23 ‘‘(IV) job search or job readiness 

24 assistance; and
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1 ‘‘(V) any other activity that ad2 dresses a purpose specified in section 

3 401(a). 

4 ‘‘(iii) LIMITATION.—

5 ‘‘(I) IN GENERAL.—Except as 

6 provided in subclause (II), clause (i) 

7 shall not apply to a family for more 

8 than 3 months in any period of 24 

9 consecutive months. 

10 ‘‘(II) SPECIAL RULE APPLICABLE

11 TO EDUCATION AND TRAINING.—A 

12 State may, on a case-by-case basis, 

13 apply clause (i) to a work-eligible indi14 vidual so that participation by the in15 dividual in education or training, if 

16 needed to permit the individual to 

17 complete a certificate program or 

18 other work-related education or train19 ing directed at enabling the individual 

20 to fill a known job need in a local 

21 area, may be considered countable 

22 hours with respect to the family of the 

23 individual for not more than 4 months 

24 in any period of 24 consecutive 

25 months. 
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1 ‘‘(B) SCHOOL ATTENDANCE BY TEEN

2 HEAD OF HOUSEHOLD.—The work-eligible 

3 members of a family shall be considered to be 

4 engaged in a direct work activity for an average 

5 of 40 hours per week in a month if the family 

6 includes an individual who is married, or is a 

7 single head of household, who has not attained 

8 20 years of age, and the individual—

9 ‘‘(i) maintains satisfactory attendance 

10 at secondary school or the equivalent in 

11 the month; or 

12 ‘‘(ii) participates in education directly 

13 related to employment for an average of at 

14 least 20 hours per week in the month. 

15 ‘‘(d) DIRECT WORK ACTIVITY.—In this section, the 

16 term ‘direct work activity’ means—

17 ‘‘(1) unsubsidized employment; 

18 ‘‘(2) subsidized private sector employment; 

19 ‘‘(3) subsidized public sector employment; 

20 ‘‘(4) on-the-job training; 

21 ‘‘(5) supervised work experience; or 

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

23 (f) PENALTIES AGAINST INDIVIDUALS.—Section 

24 407(e)(1) (42 U.S.C. 607(e)(1)) is amended to read as 

25 follows: 
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HR 4 RFS 

1 ‘‘(1) REDUCTION OR TERMINATION OF ASSIST2 ANCE.—

3 ‘‘(A) IN GENERAL.—Except as provided in 

4 paragraph (2), if an individual in a family re5 ceiving assistance under a State program fund6 ed under this part fails to engage in activities 

7 required in accordance with this section, or 

8 other activities required by the State under the 

9 program, and the family does not otherwise en10 gage in activities in accordance with the self11 sufficiency plan established for the family pur12 suant to section 408(b), the State shall—

13 ‘‘(i) if the failure is partial or persists 

14 for not more than 1 month—

15 ‘‘(I) reduce the amount of assist16 ance otherwise payable to the family 

17 pro rata (or more, at the option of the 

18 State) with respect to any period dur19 ing a month in which the failure oc20 curs; or 

21 ‘‘(II) terminate all assistance to 

22 the family, subject to such good cause 

23 exceptions as the State may establish; 

24 or 
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1 ‘‘(ii) if the failure is total and persists 

2 for at least 2 consecutive months, termi3 nate all cash payments to the family in4 cluding qualified State expenditures (as de5 fined in section 409(a)(7)(B)(i)) for at 

6 least 1 month and thereafter until the 

7 State determines that the individual has 

8 resumed full participation in the activities, 

9 subject to such good cause exceptions as 

10 the State may establish. 

11 ‘‘(B) SPECIAL RULE.—

12 ‘‘(i) IN GENERAL.—In the event of a 

13 conflict between a requirement of clause 

14 (i)(II) or (ii) of subparagraph (A) and a 

15 requirement of a State constitution, or of 

16 a State statute that, before 1966, obligated 

17 local government to provide assistance to 

18 needy parents and children, the State con19 stitutional or statutory requirement shall 

20 control. 

21 ‘‘(ii) LIMITATION.—Clause (i) of this 

22 subparagraph shall not apply after the 1-

23 year period that begins with the date of 

24 the enactment of this subparagraph.’’. 

25 (g) CONFORMING AMENDMENTS.—
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1 (1) Section 407(f) (42 U.S.C. 607(f)) is amend2 ed in each of paragraphs (1) and (2) by striking 

3 ‘‘work activity described in subsection (d)’’ and in4 serting ‘‘direct work activity’’. 

5 (2) The heading of section 409(a)(14) (42 

6 U.S.C. 609(a)(14)) is amended by inserting ‘‘OR RE7 FUSING TO ENGAGE IN ACTIVITIES UNDER A FAMILY

8 SELF-SUFFICIENCY PLAN’’ after ‘‘WORK’’. 

9 (h) EFFECTIVE DATE.—The amendments made by 

10 this section (other than subsection (a)) shall take effect 

11 on October 1, 2003. 

12 SEC. 111. MAINTENANCE OF EFFORT. 

13 (a) IN GENERAL.—Section 409(a)(7) (42 U.S.C. 

14 609(a)(7)) is amended—

15 (1) in subparagraph (A) by striking ‘‘fiscal year 

16 1998, 1999, 2000, 2001, 2002, or 2003’’ and insert17 ing ‘‘fiscal year 2003, 2004, 2005, 2006, 2007, 

18 2008, or 2009’’; and 

19 (2) in subparagraph (B)(ii)—

20 (A) by inserting ‘‘preceding’’ before ‘‘fiscal 

21 year’’; and 

22 (B) by striking ‘‘for fiscal years 1997 

23 through 2002,’’. 

24 (b) STATE SPENDING ON PROMOTING HEALTHY

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

2 is amended by adding at the end the following: 

3 ‘‘(l) MARRIAGE PROMOTION.—A State, territory, or 

4 tribal organization to which a grant is made under section 

5 403(a)(2) may use a grant made to the State, territory, 

6 or tribal organization under any other provision of section 

7 403 for marriage promotion activities, and the amount of 

8 any such grant so used shall be considered State funds 

9 for purposes of section 403(a)(2).’’. 

10 (2) FEDERAL TANF FUNDS USED FOR MAR11 RIAGE PROMOTION DISREGARDED FOR PURPOSES OF

12 MAINTENANCE OF EFFORT REQUIREMENT.—Section 

13 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)), as 

14 amended by section 103(c) of this Act, is amended 

15 by adding at the end the following: 

16 ‘‘(VI) EXCLUSION OF FEDERAL

17 TANF FUNDS USED FOR MARRIAGE

18 PROMOTION ACTIVITIES.—Such term 

19 does not include the amount of any 

20 grant made to the State under section 

21 403 that is expended for a marriage 

22 promotion activity.’’. 

23 SEC. 112. PERFORMANCE IMPROVEMENT. 

24 (a) STATE PLANS.—Section 402(a) (42 U.S.C. 

25 602(a)) is amended—
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1 (1) in paragraph (1)—

2 (A) in subparagraph (A)—

3 (i) by redesignating clause (vi) and 

4 clause (vii) (as added by section 103(a) of 

5 this Act) as clauses (vii) and (viii), respec6 tively; and 

7 (ii) by striking clause (v) and insert8 ing the following: 

9 ‘‘(v) The document shall—

10 ‘‘(I) describe how the State will 

11 pursue ending dependence of needy 

12 families on government benefits and 

13 reducing poverty by promoting job 

14 preparation and work; 

15 ‘‘(II) describe how the State will 

16 encourage the formation and mainte17 nance of healthy 2-parent married 

18 families, encourage responsible father19 hood, and prevent and reduce the inci20 dence of out-of-wedlock pregnancies; 

21 ‘‘(III) include specific, numerical, 

22 and measurable performance objec23 tives for accomplishing subclauses (I) 

24 and (II), and with respect to sub25 clause (I), include objectives con-
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HR 4 RFS 

1 sistent with the criteria used by the 

2 Secretary in establishing performance 

3 targets under section 403(a)(4)(B) if 

4 available; and 

5 ‘‘(IV) describe the methodology 

6 that the State will use to measure 

7 State performance in relation to each 

8 such objective. 

9 ‘‘(vi) Describe any strategies and pro10 grams the State may be undertaking to ad11 dress—

12 ‘‘(I) employment retention and 

13 advancement for recipients of assist14 ance under the program, including 

15 placement into high-demand jobs, and 

16 whether the jobs are identified using 

17 labor market information; 

18 ‘‘(II) efforts to reduce teen preg19 nancy; 

20 ‘‘(III) services for struggling and 

21 noncompliant families, and for clients 

22 with special problems; and 

23 ‘‘(IV) program integration, in24 cluding the extent to which employ25 ment and training services under the
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HR 4 RFS 

1 program are provided through the 

2 One-Stop delivery system created 

3 under the Workforce Investment Act 

4 of 1998, and the extent to which 

5 former recipients of such assistance 

6 have access to additional core, inten7 sive, or training services funded 

8 through such Act.’’; and 

9 (B) in subparagraph (B), by striking 

10 clause (iii) (as so redesignated by section 

11 107(b)(1) of this Act) and inserting the fol12 lowing: 

13 ‘‘(iii) The document shall describe 

14 strategies and programs the State is un15 dertaking to engage religious organizations 

16 in the provision of services funded under 

17 this part and efforts related to section 104 

18 of the Personal Responsibility and Work 

19 Opportunity Reconciliation Act of 1996. 

20 ‘‘(iv) The document shall describe 

21 strategies to improve program manage22 ment and performance.’’; and 

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

24 after ‘‘that local’’. 
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1 (b) CONSULTATION WITH STATE REGARDING PLAN

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

3 (42 U.S.C. 612(b)(1)) is amended—

4 (1) by striking ‘‘and’’ at the end of subpara5 graph (E); 

6 (2) by striking the period at the end of sub7 paragraph (F) and inserting ‘‘; and’’; and 

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

9 ‘‘(G) provides an assurance that the State 

10 in which the tribe is located has been consulted 

11 regarding the plan and its design.’’. 

12 (c) PERFORMANCE MEASURES.—Section 413 (42 

13 U.S.C. 613) is amended by adding at the end the fol14 lowing: 

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

16 in consultation with the States, shall develop uniform per17 formance measures designed to assess the degree of effec18 tiveness, and the degree of improvement, of State pro19 grams funded under this part in accomplishing the pur20 poses of this part.’’. 

21 (d) ANNUAL RANKING OF STATES.—Section 

22 413(d)(1) (42 U.S.C. 613(d)(1)) is amended by striking 

23 ‘‘long-term private sector jobs’’ and inserting ‘‘private sec24 tor jobs, the success of the recipients in retaining employ25 ment, the ability of the recipients to increase their wages’’. 
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1 SEC. 113. DATA COLLECTION AND REPORTING. 

2 (a) CONTENTS OF REPORT.—Section 411(a)(1)(A) 

3 (42 U.S.C. 611(a)(1)(A)) is amended—

4 (1) in the matter preceding clause (i), by insert5 ing ‘‘and on families receiving assistance under 

6 State programs funded with other qualified State ex7 penditures (as defined in section 409(a)(7)(B))’’ be8 fore the colon; 

9 (2) in clause (vii), by inserting ‘‘and minor par10 ent’’ after ‘‘of each adult’’; 

11 (3) in clause (viii), by striking ‘‘and educational 

12 level’’; 

13 (4) in clause (ix), by striking ‘‘, and if the lat14 ter 2, the amount received’’; 

15 (5) in clause (x)—

16 (A) by striking ‘‘each type of’’; and 

17 (B) by inserting before the period ‘‘and, if 

18 applicable, the reason for receipt of the assist19 ance for a total of more than 60 months’’; 

20 (6) in clause (xi), by striking the subclauses 

21 and inserting the following: 

22 ‘‘(I) Subsidized private sector 

23 employment. 

24 ‘‘(II) Unsubsidized employment. 
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1 ‘‘(III) Public sector employment, 

2 supervised work experience, or super3 vised community service. 

4 ‘‘(IV) On-the-job training. 

5 ‘‘(V) Job search and placement. 

6 ‘‘(VI) Training. 

7 ‘‘(VII) Education. 

8 ‘‘(VIII) Other activities directed 

9 at the purposes of this part, as speci10 fied in the State plan submitted pur11 suant to section 402.’’; 

12 (7) in clause (xii), by inserting ‘‘and progress 

13 toward universal engagement’’ after ‘‘participation 

14 rates’’; 

15 (8) in clause (xiii), by striking ‘‘type and’’ be16 fore ‘‘amount of assistance’’; 

17 (9) in clause (xvi), by striking subclause (II) 

18 and redesignating subclauses (III) through (V) as 

19 subclauses (II) through (IV), respectively; and 

20 (10) by adding at the end the following: 

21 ‘‘(xviii) The date the family first re22 ceived assistance from the State program 

23 on the basis of the most recent application 

24 for such assistance.
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1 ‘‘(xix) Whether a self-sufficiency plan 

2 is established for the family in accordance 

3 with section 408(b). 

4 ‘‘(xx) With respect to any child in the 

5 family, the marital status of the parents at 

6 the birth of the child, and if the parents 

7 were not then married, whether the pater8 nity of the child has been established.’’. 

9 (b) USE OF SAMPLES.—Section 411(a)(1)(B) (42 

10 U.S.C. 611(a)(1)(B)) is amended—

11 (1) in clause (i)—

12 (A) by striking ‘‘a sample’’ and inserting 

13 ‘‘samples’’; and 

14 (B) by inserting before the period ‘‘, except 

15 that the Secretary may designate core data ele16 ments that must be reported on all families’’; 

17 and 

18 (2) in clause (ii), by striking ‘‘funded under this 

19 part’’ and inserting ‘‘described in subparagraph 

20 (A)’’. 

21 (c) REPORT ON FAMILIES THAT BECOME INELI22 GIBLE TO RECEIVE ASSISTANCE.—Section 411(a) (42 

23 U.S.C. 611(a)) is amended—

24 (1) by striking paragraph (5); 
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1 (2) by redesignating paragraph (6) as para2 graph (5); and 

3 (3) by inserting after paragraph (5) (as so re4 designated) the following: 

5 ‘‘(6) REPORT ON FAMILIES THAT BECOME IN6 ELIGIBLE TO RECEIVE ASSISTANCE.—The report re7 quired by paragraph (1) for a fiscal quarter shall in8 clude for each month in the quarter the number of 

9 families and total number of individuals that, during 

10 the month, became ineligible to receive assistance 

11 under the State program funded under this part 

12 (broken down by the number of families that become 

13 so ineligible due to earnings, changes in family com14 position that result in increased earnings, sanctions, 

15 time limits, or other specified reasons).’’. 

16 (d) REGULATIONS.—Section 411(a)(7) (42 U.S.C. 

17 611(a)(7)) is amended—

18 (1) by inserting ‘‘and to collect the necessary 

19 data’’ before ‘‘with respect to which reports’’; 

20 (2) by striking ‘‘subsection’’ and inserting ‘‘sec21 tion’’; and 

22 (3) by striking ‘‘in defining the data elements’’ 

23 and all that follows and inserting ‘‘, the National 

24 Governors’ Association, the American Public Human 

25 Services Association, the National Conference of 
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1 State Legislatures, and others in defining the data 

2 elements.’’. 

3 (e) ADDITIONAL REPORTS BY STATES.—Section 411 

4 (42 U.S.C. 611) is amended—

5 (1) by redesignating subsection (b) as sub6 section (e); and 

7 (2) by inserting after subsection (a) the fol8 lowing: 

9 ‘‘(b) ANNUAL REPORTS ON PROGRAM CHARACTERIS10 TICS.—Not later than 90 days after the end of fiscal year 

11 2004 and each succeeding fiscal year, each eligible State 

12 shall submit to the Secretary a report on the characteris13 tics of the State program funded under this part and other 

14 State programs funded with qualified State expenditures 

15 (as defined in section 409(a)(7)(B)(i)). The report shall 

16 include, with respect to each such program, the program 

17 name, a description of program activities, the program 

18 purpose, the program eligibility criteria, the sources of 

19 program funding, the number of program beneficiaries, 

20 sanction policies, and any program work requirements. 

21 ‘‘(c) MONTHLY REPORTS ON CASELOAD.—Not later 

22 than 3 months after the end of a calendar month that 

23 begins 1 year or more after the enactment of this sub24 section, each eligible State shall submit to the Secretary 

25 a report on the number of families and total number of 
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1 individuals receiving assistance in the calendar month 

2 under the State program funded under this part. 

3 ‘‘(d) ANNUAL REPORT ON PERFORMANCE IMPROVE4 MENT.—Beginning with fiscal year 2005, not later than 

5 January 1 of each fiscal year, each eligible State shall sub6 mit to the Secretary a report on achievement and improve7 ment during the preceding fiscal year under the numerical 

8 performance goals and measures under the State program 

9 funded under this part with respect to each of the matters 

10 described in section 402(a)(1)(A)(v).’’. 

11 (f) ANNUAL REPORTS TO CONGRESS BY THE SEC12 RETARY.—Section 411(e), as so redesignated by sub13 section (e) of this section, is amended—

14 (1) in the matter preceding paragraph (1), by 

15 striking ‘‘and each fiscal year thereafter’’ and insert16 ing ‘‘and by July 1 of each fiscal year thereafter’’; 

17 (2) in paragraph (2), by striking ‘‘families ap18 plying for assistance,’’ and by striking the last 

19 comma; and 

20 (3) in paragraph (3), by inserting ‘‘and other 

21 programs funded with qualified State expenditures 

22 (as defined in section 409(a)(7)(B)(i))’’ before the 

23 semicolon.
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1 (g) INCREASED ANALYSIS OF STATE SINGLE AUDIT

2 REPORTS.—Section 411 (42 U.S.C. 611) is amended by 

3 adding at the end the following: 

4 ‘‘(f) INCREASED ANALYSIS OF STATE SINGLE AUDIT

5 REPORTS.—

6 ‘‘(1) IN GENERAL.—Within 3 months after a 

7 State submits to the Secretary a report pursuant to 

8 section 7502(a)(1)(A) of title 31, United States 

9 Code, the Secretary shall analyze the report for the 

10 purpose of identifying the extent and nature of prob11 lems related to the oversight by the State of non12 governmental entities with respect to contracts en13 tered into by such entities with the State program 

14 funded under this part, and determining what addi15 tional actions may be appropriate to help prevent 

16 and correct the problems. 

17 ‘‘(2) INCLUSION OF PROGRAM OVERSIGHT SEC18 TION IN ANNUAL REPORT TO THE CONGRESS.—The 

19 Secretary shall include in each report under sub20 section (e) a section on oversight of State programs 

21 funded under this part, including findings on the ex22 tent and nature of the problems referred to in para23 graph (1), actions taken to resolve the problems, and 

24 to the extent the Secretary deems appropriate make 
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1 recommendations on changes needed to resolve the 

2 problems.’’. 

3 SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY IN4 DIAN TRIBES. 

5 (a) TRIBAL FAMILY ASSISTANCE GRANT.—Section 

6 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by 

7 striking ‘‘1997, 1998, 1999, 2000, 2001, and 2002’’ and 

8 inserting ‘‘2004 through 2008’’. 

9 (b) GRANTS FOR INDIAN TRIBES THAT RECEIVED

10 JOBS FUNDS.—Section 412(a)(2)(A) (42 U.S.C. 

11 612(a)(2)(A)) is amended by striking ‘‘1997, 1998, 1999, 

12 2000, 2001, and 2002’’ and inserting ‘‘2004 through 

13 2008’’. 

14 SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL STUD15 IES. 

16 (a) SECRETARY’S FUND FOR RESEARCH, DEM17 ONSTRATIONS, AND TECHNICAL ASSISTANCE.—Section 

18 413 (42 U.S.C. 613), as amended by section 112(c) of 

19 this Act, is further amended by adding at the end the fol20 lowing: 

21 ‘‘(l) FUNDING FOR RESEARCH, DEMONSTRATIONS, 

22 AND TECHNICAL ASSISTANCE.—

23 ‘‘(1) APPROPRIATION.—

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

25 the Treasury of the United States not otherwise 
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1 appropriated, there are appropriated 

2 $102,000,000 for each of fiscal years 2003 

3 through 2008, which shall be available to the 

4 Secretary for the purpose of conducting and 

5 supporting research and demonstration projects 

6 by public or private entities, and providing tech7 nical assistance to States, Indian tribal organi8 zations, and such other entities as the Secretary 

9 may specify that are receiving a grant under 

10 this part, which shall be expended primarily on 

11 activities described in section 403(a)(2)(B), and 

12 which shall be in addition to any other funds 

13 made available under this part. 

14 ‘‘(B) EXTENDED AVAILABILITY OF FY 2003

15 FUNDS.—Funds appropriated under this para16 graph for fiscal year 2003 shall remain avail17 able to the Secretary through fiscal year 2004, 

18 for use in accordance with this paragraph for 

19 fiscal year 2003. 

20 ‘‘(2) SET ASIDE FOR DEMONSTRATION

21 PROJECTS FOR COORDINATION OF PROVISION OF

22 CHILD WELFARE AND TANF SERVICES TO TRIBAL

23 FAMILIES AT RISK OF CHILD ABUSE OR NEGLECT.—

24 ‘‘(A) IN GENERAL.—Of the amounts made 

25 available under paragraph (1) for a fiscal year, 
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1 $2,000,000 shall be awarded on a competitive 

2 basis to fund demonstration projects designed 

3 to test the effectiveness of tribal governments 

4 or tribal consortia in coordinating the provision 

5 to tribal families at risk of child abuse or ne6 glect of child welfare services and services 

7 under tribal programs funded under this part. 

8 ‘‘(B) USE OF FUNDS.—A grant made to 

9 such a project shall be used—

10 ‘‘(i) to improve case management for 

11 families eligible for assistance from such a 

12 tribal program; 

13 ‘‘(ii) for supportive services and as14 sistance to tribal children in out-of-home 

15 placements and the tribal families caring 

16 for such children, including families who 

17 adopt such children; and 

18 ‘‘(iii) for prevention services and as19 sistance to tribal families at risk of child 

20 abuse and neglect. 

21 ‘‘(C) REPORTS.—The Secretary may re22 quire a recipient of funds awarded under this 

23 paragraph to provide the Secretary with such 

24 information as the Secretary deems relevant to 

25 enable the Secretary to facilitate and oversee
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1 the administration of any project for which 

2 funds are provided under this paragraph.’’. 

3 (b) FUNDING OF STUDIES AND DEMONSTRATIONS.—

4 Section 413(h)(1) (42 U.S.C. 613(h)(1)) is amended in 

5 the matter preceding subparagraph (A) by striking ‘‘1997 

6 through 2002’’ and inserting ‘‘2004 through 2008’’. 

7 (c) REPORT ON ENFORCEMENT OF CERTAIN AFFIDA8 VITS OF SUPPORT AND SPONSOR DEEMING.—Not later 

9 than March 31, 2004, the Secretary of Health and Human 

10 Services, in consultation with the Attorney General, shall 

11 submit to the Congress a report on the enforcement of 

12 affidavits of support and sponsor deeming as required by 

13 section 421, 422, and 432 of the Personal Responsibility 

14 and Work Opportunity Reconciliation Act of 1996. 

15 (d) REPORT ON COORDINATION.—Not later than 6 

16 months after the date of the enactment of this Act, the 

17 Secretary of Health and Human Services and the Sec18 retary of Labor shall jointly submit a report to the Con19 gress describing common or conflicting data elements, 

20 definitions, performance measures, and reporting require21 ments in the Workforce Investment Act of 1998 and part 

22 A of title IV of the Social Security Act, and, to the degree 

23 each Secretary deems appropriate, at the discretion of ei24 ther Secretary, any other program administered by the re-
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1 spective Secretary, to allow greater coordination between 

2 the welfare and workforce development systems. 

3 SEC. 116. STUDIES BY THE CENSUS BUREAU AND THE GEN4 ERAL ACCOUNTING OFFICE. 

5 (a) CENSUS BUREAU STUDY.—

6 (1) IN GENERAL.—Section 414(a) (42 U.S.C. 

7 614(a)) is amended to read as follows: 

8 ‘‘(a) IN GENERAL.—The Bureau of the Census shall 

9 implement or enhance a longitudinal survey of program 

10 participation, developed in consultation with the Secretary 

11 and made available to interested parties, to allow for the 

12 assessment of the outcomes of continued welfare reform 

13 on the economic and child well-being of low-income fami14 lies with children, including those who received assistance 

15 or services from a State program funded under this part, 

16 and, to the extent possible, shall provide State representa17 tive samples. The content of the survey should include 

18 such information as may be necessary to examine the 

19 issues of out-of-wedlock childbearing, marriage, welfare 

20 dependency and compliance with work requirements, the 

21 beginning and ending of spells of assistance, work, earn22 ings and employment stability, and the well-being of chil23 dren.’’. 

24 (2) APPROPRIATION.—Section 414(b) (42 

25 U.S.C. 614(b)) is amended—
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1 (A) by striking ‘‘1996,’’ and all that fol2 lows through ‘‘2002’’ and inserting ‘‘2004 

3 through 2008’’; and 

4 (B) by adding at the end the following: 

5 ‘‘Funds appropriated under this subsection 

6 shall remain available through fiscal year 2008 

7 to carry out subsection (a).’’. 

8 (b) GAO STUDY.—

9 (1) IN GENERAL.—The Comptroller General of 

10 the United States shall conduct a study to determine 

11 the combined effect of the phase-out rates for Fed12 eral programs and policies which provide support to 

13 low-income families and individuals as they move 

14 from welfare to work, at all earning levels up to 

15 $35,000 per year, for at least 5 States including 

16 Wisconsin and California, and any potential dis17 incentives the combined phase-out rates create for 

18 families to achieve independence or to marry. 

19 (2) REPORT.—Not later than 1 year after the 

20 date of the enactment of this subsection, the Comp21 troller General shall submit a report to Congress 

22 containing the results of the study conducted under 

23 this section and, as appropriate, any recommenda24 tions consistent with the results. 
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1 SEC. 117. DEFINITION OF ASSISTANCE. 

2 (a) IN GENERAL.—Section 419 (42 U.S.C. 619) is 

3 amended by adding at the end the following: 

4 ‘‘(6) ASSISTANCE.—

5 ‘‘(A) IN GENERAL.—The term ‘assistance’ 

6 means payment, by cash, voucher, or other 

7 means, to or for an individual or family for the 

8 purpose of meeting a subsistence need of the in9 dividual or family (including food, clothing, 

10 shelter, and related items, but not including 

11 costs of transportation or child care). 

12 ‘‘(B) EXCEPTION.—The term ‘assistance’ 

13 does not include a payment described in sub14 paragraph (A) to or for an individual or family 

15 on a short-term, nonrecurring basis (as defined 

16 by the State in accordance with regulations pre17 scribed by the Secretary).’’. 

18 (b) CONFORMING AMENDMENTS.—

19 (1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is 

20 amended by striking ‘‘assistance’’ and inserting 

21 ‘‘aid’’. 

22 (2) Section 404(f) (42 U.S.C. 604(f)) is amend23 ed by striking ‘‘assistance’’ and inserting ‘‘benefits 

24 or services’’.
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1 (3) Section 408(a)(5)(B)(i) (42 U.S.C. 

2 608(a)(5)(B)(i)) is amended in the heading by strik3 ing ‘‘ASSISTANCE’’ and inserting ‘‘AID’’. 

4 (4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is 

5 amended by striking ‘‘assistance’’ and inserting 

6 ‘‘aid’’. 

7 SEC. 118. TECHNICAL CORRECTIONS. 

8 (a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is 

9 amended by inserting a comma after ‘‘appropriate’’. 

10 (b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. 

11 611(a)(1)(A)(ii)(III)) is amended by striking the last close 

12 parenthesis. 

13 (c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is 

14 amended by striking ‘‘section’’ and inserting ‘‘sections’’. 

15 (d)(1) Section 413 (42 U.S.C. 613) is amended by 

16 striking subsection (g) and redesignating subsections (h) 

17 through (j) and subsections (k) and (l) (as added by sec18 tions 112(c) and 115(a) of this Act, respectively) as sub19 sections (g) through (k), respectively. 

20 (2) Each of the following provisions is amended by 

21 striking ‘‘413(j)’’ and inserting ‘‘413(i)’’: 

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

23 603(a)(5)(A)(ii)(III)). 

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

25 603(a)(5)(F)). 
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1 (C) Section 403(a)(5)(G)(ii) (42 U.S.C. 

2 603(a)(5)(G)(ii)). 

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

4 612(a)(3)(B)(iv)). 

5 SEC. 119. FATHERHOOD PROGRAM. 

6 (a) SHORT TITLE.—This section may be cited as the 

7 ‘‘Promotion and Support of Responsible Fatherhood and 

8 Healthy Marriage Act of 2003’’. 

9 (b) FATHERHOOD PROGRAM.—

10 (1) IN GENERAL.—Title I of the Personal Re11 sponsibility and Work Opportunity Reconciliation 

12 Act of 1996 (Public Law 104–193) is amended by 

13 adding at the end the following: 

14 ‘‘SEC. 117. FATHERHOOD PROGRAM. 

15 ‘‘(a) IN GENERAL.—Title IV (42 U.S.C. 601–679b) 

16 is amended by inserting after part B the following: 

17 ‘‘ ‘PART C—FATHERHOOD PROGRAM 

18 ‘‘ ‘SEC. 441. FINDINGS AND PURPOSES. 

19 ‘‘ ‘(a) FINDINGS.—The Congress finds that there is 

20 substantial evidence strongly indicating the urgent need 

21 to promote and support involved, committed, and respon22 sible fatherhood, and to encourage and support healthy 

23 marriages between parents raising children, including data 

24 demonstrating the following: 
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1 ‘‘ ‘(1) In approximately 90 percent of cases 

2 where a parent is absent, that parent is the father. 

3 ‘‘ ‘(2) By some estimates, 60 percent of children 

4 born in the 1990’s will spend a significant portion 

5 of their childhood in a home without a father. 

6 ‘‘ ‘(3) Nearly 75 percent of children in single7 parent homes will experience poverty before they are 

8 11 years old, compared with only 20 percent of chil9 dren in 2-parent families. 

10 ‘‘ ‘(4) Low income is positively correlated with 

11 children’s difficulties with education, social adjust12 ment, and delinquency, and single-parent households 

13 constitute a disproportionate share of low-income 

14 households. 

15 ‘‘ ‘(5) Where families (whether intact or with a 

16 parent absent) are living in poverty, a significant 

17 factor is the father’s lack of job skills. 

18 ‘‘ ‘(6) Children raised in 2-parent married fami19 lies, on average, fare better as a group in key areas, 

20 including better school performance, reduced rates of 

21 substance abuse, crime, and delinquency, fewer 

22 health, emotional, and behavioral problems, lower 

23 rates of teenage sexual activity, less risk of abuse or 

24 neglect, and lower risk of teen suicide. 
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1 ‘‘ ‘(7) Committed and responsible fathering dur2 ing infancy and early childhood contributes to the 

3 development of emotional security, curiosity, and 

4 math and verbal skills. 

5 ‘‘ ‘(8) An estimated 24,000,000 children (33.5 

6 percent) live apart from their biological father. 

7 ‘‘ ‘(9) A recent national survey indicates that of 

8 children under age 18 not living with their biological 

9 father, 37 percent had not seen their father even 

10 once in the last 12 months. 

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

12 ‘‘ ‘(1) To provide for projects and activities by 

13 public entities and by nonprofit community entities, 

14 including religious organizations, designed to test 

15 promising approaches to accomplishing the following 

16 objectives: 

17 ‘‘ ‘(A) Promoting responsible, caring, and 

18 effective parenting through counseling, men19 toring, and parenting education, dissemination 

20 of educational materials and information on 

21 parenting skills, encouragement of positive fa22 ther involvement, including the positive involve23 ment of nonresident fathers, and other meth24 ods.
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1 ‘‘ ‘(B) Enhancing the abilities and commit2 ment of unemployed or low-income fathers to 

3 provide material support for their families and 

4 to avoid or leave welfare programs by assisting 

5 them to take full advantage of education, job 

6 training, and job search programs, to improve 

7 work habits and work skills, to secure career 

8 advancement by activities such as outreach and 

9 information dissemination, coordination, as ap10 propriate, with employment services and job 

11 training programs, including the One-Stop de12 livery system established under title I of the 

13 Workforce Investment Act of 1998, encourage14 ment and support of timely payment of current 

15 child support and regular payment toward past 

16 due child support obligations in appropriate 

17 cases, and other methods. 

18 ‘‘ ‘(C) Improving fathers’ ability to effec19 tively manage family business affairs by means 

20 such as education, counseling, and mentoring in 

21 matters including household management, 

22 budgeting, banking, and handling of financial 

23 transactions, time management, and home 

24 maintenance. 
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1 ‘‘ ‘(D) Encouraging and supporting healthy 

2 marriages and married fatherhood through such 

3 activities as premarital education, including the 

4 use of premarital inventories, marriage prepara5 tion programs, skills-based marriage education 

6 programs, marital therapy, couples counseling, 

7 divorce education and reduction programs, di8 vorce mediation and counseling, relationship 

9 skills enhancement programs, including those 

10 designed to reduce child abuse and domestic vi11 olence, and dissemination of information about 

12 the benefits of marriage for both parents and 

13 children. 

14 ‘‘ ‘(2) Through the projects and activities de15 scribed in paragraph (1), to improve outcomes for 

16 children with respect to measures such as increased 

17 family income and economic security, improved 

18 school performance, better health, improved emo19 tional and behavioral stability and social adjustment, 

20 and reduced risk of delinquency, crime, substance 

21 abuse, child abuse and neglect, teen sexual activity, 

22 and teen suicide. 

23 ‘‘ ‘(3) To evaluate the effectiveness of various 

24 approaches and to disseminate findings concerning 

25 outcomes and other information in order to encour-
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1 age and facilitate the replication of effective ap2 proaches to accomplishing these objectives. 

3 ‘‘ ‘SEC. 442. DEFINITIONS. 

4 ‘‘ ‘In this part, the terms ‘‘Indian tribe’’ and ‘‘tribal 

5 organization’’ have the meanings given them in sub6 sections (e) and (l), respectively, of section 4 of the Indian 

7 Self-Determination and Education Assistance Act. 

8 ‘‘ ‘SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS. 

9 ‘‘ ‘(a) IN GENERAL.—The Secretary may make 

10 grants for fiscal years 2004 through 2008 to public and 

11 nonprofit community entities, including religious organiza12 tions, and to Indian tribes and tribal organizations, for 

13 demonstration service projects and activities designed to 

14 test the effectiveness of various approaches to accomplish 

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

16 ‘‘ ‘(b) ELIGIBILITY CRITERIA FOR FULL SERVICE

17 GRANTS.—In order to be eligible for a grant under this 

18 section, except as specified in subsection (c), an entity 

19 shall submit an application to the Secretary containing the 

20 following: 

21 ‘‘ ‘(1) PROJECT DESCRIPTION.—A statement in22 cluding—

23 ‘‘ ‘(A) a description of the project and how 

24 it will be carried out, including the geographical 

25 area to be covered and the number and charac-
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1 teristics of clients to be served, and how it will 

2 address each of the 4 objectives specified in sec3 tion 441(b)(1); and 

4 ‘‘ ‘(B) a description of the methods to be 

5 used by the entity or its contractor to assess 

6 the extent to which the project was successful 

7 in accomplishing its specific objectives and the 

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

9 ‘‘ ‘(2) EXPERIENCE AND QUALIFICATIONS.—A 

10 demonstration of ability to carry out the project, by 

11 means such as demonstration of experience in suc12 cessfully carrying out projects of similar design and 

13 scope, and such other information as the Secretary 

14 may find necessary to demonstrate the entity’s ca15 pacity to carry out the project, including the entity’s 

16 ability to provide the non-Federal share of project 

17 resources. 

18 ‘‘ ‘(3) ADDRESSING CHILD ABUSE AND NE19 GLECT AND DOMESTIC VIOLENCE.—A description of 

20 how the entity will assess for the presence of, and 

21 intervene to resolve, domestic violence and child 

22 abuse and neglect, including how the entity will co23 ordinate with State and local child protective service 

24 and domestic violence programs.
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1 ‘‘ ‘(4) ADDRESSING CONCERNS RELATING TO

2 SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A com3 mitment to make available to each individual partici4 pating in the project education about alcohol, to5 bacco, and other drugs, and about the health risks 

6 associated with abusing such substances, and infor7 mation about diseases and conditions transmitted 

8 through substance abuse and sexual contact, includ9 ing HIV/AIDS, and to coordinate with providers of 

10 services addressing such problems, as appropriate. 

11 ‘‘ ‘(5) COORDINATION WITH SPECIFIED PRO12 GRAMS.—An undertaking to coordinate, as appro13 priate, with State and local entities responsible for 

14 the programs under parts A, B, and D of this title, 

15 including programs under title I of the Workforce 

16 Investment Act of 1998 (including the One-Stop de17 livery system), and such other programs as the Sec18 retary may require. 

19 ‘‘ ‘(6) RECORDS, REPORTS, AND AUDITS.—An 

20 agreement to maintain such records, make such re21 ports, and cooperate with such reviews or audits as 

22 the Secretary may find necessary for purposes of 

23 oversight of project activities and expenditures. 

24 ‘‘ ‘(7) SELF-INITIATED EVALUATION.—If the 

25 entity elects to contract for independent evaluation 
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1 of the project (part or all of the cost of which may 

2 be paid for using grant funds), a commitment to 

3 submit to the Secretary a copy of the evaluation re4 port within 30 days after completion of the report 

5 and not more than 1 year after completion of the 

6 project. 

7 ‘‘ ‘(8) COOPERATION WITH SECRETARY’S OVER8 SIGHT AND EVALUATION.—An agreement to cooper9 ate with the Secretary’s evaluation of projects as10 sisted under this section, by means including ran11 dom assignment of clients to service recipient and 

12 control groups, if determined by the Secretary to be 

13 appropriate, and affording the Secretary access to 

14 the project and to project-related records and docu15 ments, staff, and clients. 

16 ‘‘ ‘(c) ELIGIBILITY CRITERIA FOR LIMITED PURPOSE

17 GRANTS.—In order to be eligible for a grant under this 

18 section in an amount under $25,000 per fiscal year, an 

19 entity shall submit an application to the Secretary con20 taining the following: 

21 ‘‘ ‘(1) PROJECT DESCRIPTION.—A description of 

22 the project and how it will be carried out, including 

23 the number and characteristics of clients to be 

24 served, the proposed duration of the project, and 
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1 how it will address at least 1 of the 4 objectives 

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

3 ‘‘ ‘(2) QUALIFICATIONS.—Such information as 

4 the Secretary may require as to the capacity of the 

5 entity to carry out the project, including any pre6 vious experience with similar activities. 

7 ‘‘ ‘(3) COORDINATION WITH RELATED PRO8 GRAMS.—As required by the Secretary in appro9 priate cases, an undertaking to coordinate and co10 operate with State and local entities responsible for 

11 specific programs relating to the objectives of the 

12 project including, as appropriate, jobs programs and 

13 programs serving children and families. 

14 ‘‘ ‘(4) RECORDS, REPORTS, AND AUDITS.—An 

15 agreement to maintain such records, make such re16 ports, and cooperate with such reviews or audits as 

17 the Secretary may find necessary for purposes of 

18 oversight of project activities and expenditures. 

19 ‘‘ ‘(5) COOPERATION WITH SECRETARY’S OVER20 SIGHT AND EVALUATION.—An agreement to cooper21 ate with the Secretary’s evaluation of projects as22 sisted under this section, by means including afford23 ing the Secretary access to the project and to 

24 project-related records and documents, staff, and cli25 ents. 
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1 ‘‘ ‘(d) CONSIDERATIONS IN AWARDING GRANTS.—

2 ‘‘ ‘(1) DIVERSITY OF PROJECTS.—In awarding 

3 grants under this section, the Secretary shall seek to 

4 achieve a balance among entities of differing sizes, 

5 entities in differing geographic areas, entities in 

6 urban and in rural areas, and entities employing dif7 fering methods of achieving the purposes of this sec8 tion, including working with the State agency re9 sponsible for the administration of part D to help fa10 thers satisfy child support arrearage obligations. 

11 ‘‘ ‘(2) PREFERENCE FOR PROJECTS SERVING

12 LOW-INCOME FATHERS.—In awarding grants under 

13 this section, the Secretary may give preference to 

14 applications for projects in which a majority of the 

15 clients to be served are low-income fathers. 

16 ‘‘ ‘(e) FEDERAL SHARE.—

17 ‘‘ ‘(1) IN GENERAL.—Grants for a project under 

18 this section for a fiscal year shall be available for a 

19 share of the cost of such project in such fiscal year 

20 equal to—

21 ‘‘ ‘(A) up to 80 percent (or up to 90 per22 cent, if the entity demonstrates to the Sec23 retary’s satisfaction circumstances limiting the 

24 entity’s ability to secure non-Federal resources) 
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1 in the case of a project under subsection (b); 

2 and

3 ‘‘ ‘(B) up to 100 percent, in the case of a 

4 project under subsection (c). 

5 ‘‘ ‘(2) NON-FEDERAL SHARE.—The non-Federal 

6 share may be in cash or in kind. In determining the 

7 amount of the non-Federal share, the Secretary may 

8 attribute fair market value to goods, services, and 

9 facilities contributed from non-Federal sources. 

10 ‘‘ ‘SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION 

11 PROJECTS. 

12 ‘‘ ‘(a) IN GENERAL.—The Secretary may make 

13 grants under this section for fiscal years 2004 through 

14 2008 to eligible entities (as specified in subsection (b)) for 

15 2 multicity, multistate projects demonstrating approaches 

16 to achieving the objectives specified in section 441(b)(1). 

17 One of the projects shall test the use of married couples 

18 to deliver program services. 

19 ‘‘ ‘(b) ELIGIBLE ENTITIES.—An entity eligible for a 

20 grant under this section must be a national nonprofit fa21 therhood promotion organization that meets the following 

22 requirements: 

23 ‘‘ ‘(1) EXPERIENCE WITH FATHERHOOD PRO24 GRAMS.—The organization must have substantial ex25 perience in designing and successfully conducting 
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1 programs that meet the purposes described in sec2 tion 441. 

3 ‘‘ ‘(2) EXPERIENCE WITH MULTICITY, 

4 MULTISTATE PROGRAMS AND GOVERNMENT COORDI5 NATION.—The organization must have experience in 

6 simultaneously conducting such programs in more 

7 than 1 major metropolitan area in more than 1 

8 State and in coordinating such programs, where ap9 propriate, with State and local government agencies 

10 and private, nonprofit agencies (including commu11 nity-based and religious organizations), including 

12 State or local agencies responsible for child support 

13 enforcement and workforce development. 

14 ‘‘ ‘(c) APPLICATION REQUIREMENTS.—In order to be 

15 eligible for a grant under this section, an entity must sub16 mit to the Secretary an application that includes the fol17 lowing: 

18 ‘‘ ‘(1) QUALIFICATIONS.—

19 ‘‘ ‘(A) ELIGIBLE ENTITY.—A demonstra20 tion that the entity meets the requirements of 

21 subsection (b). 

22 ‘‘ ‘(B) OTHER.—Such other information as 

23 the Secretary may find necessary to dem24 onstrate the entity’s capacity to carry out the 
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1 project, including the entity’s ability to provide 

2 the non-Federal share of project resources. 

3 ‘‘ ‘(2) PROJECT DESCRIPTION.—A description of 

4 and commitments concerning the project design, in5 cluding the following: 

6 ‘‘ ‘(A) IN GENERAL.—A detailed descrip7 tion of the proposed project design and how it 

8 will be carried out, which shall—

9 ‘‘ ‘(i) provide for the project to be con10 ducted in at least 3 major metropolitan 

11 areas; 

12 ‘‘ ‘(ii) state how it will address each of 

13 the 4 objectives specified in section 

14 441(b)(1); 

15 ‘‘ ‘(iii) demonstrate that there is a suf16 ficient number of potential clients to allow 

17 for the random selection of individuals to 

18 participate in the project and for compari19 sons with appropriate control groups com20 posed of individuals who have not partici21 pated in such projects; and 

22 ‘‘ ‘(iv) demonstrate that the project is 

23 designed to direct a majority of project re24 sources to activities serving low-income fa-
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1 thers (but the project need not make serv2 ices available on a means-tested basis). 

3 ‘‘ ‘(B) OVERSIGHT, EVALUATION, AND AD4 JUSTMENT COMPONENT.—An agreement that 

5 the entity—

6 ‘‘ ‘(i) in consultation with the eval7 uator selected pursuant to section 445, and 

8 as required by the Secretary, will modify 

9 the project design, initially and (if nec10 essary) subsequently throughout the dura11 tion of the project, in order to facilitate on12 going and final oversight and evaluation of 

13 project operation and outcomes (by means 

14 including, to the maximum extent feasible, 

15 random assignment of clients to service re16 cipient and control groups), and to provide 

17 for mid-course adjustments in project de18 sign indicated by interim evaluations; 

19 ‘‘ ‘(ii) will submit to the Secretary re20 vised descriptions of the project design as 

21 modified in accordance with clause (i); and 

22 ‘‘ ‘(iii) will cooperate fully with the 

23 Secretary’s ongoing oversight and ongoing 

24 and final evaluation of the project, by 

25 means including affording the Secretary 
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1 access to the project and to project-related 

2 records and documents, staff, and clients.

3 ‘‘ ‘(3) ADDRESSING CHILD ABUSE AND NE4 GLECT AND DOMESTIC VIOLENCE.—A description of 

5 how the entity will assess for the presence of, and 

6 intervene to resolve, domestic violence and child 

7 abuse and neglect, including how the entity will co8 ordinate with State and local child protective service 

9 and domestic violence programs. 

10 ‘‘ ‘(4) ADDRESSING CONCERNS RELATING TO

11 SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A com12 mitment to make available to each individual partici13 pating in the project education about alcohol, to14 bacco, and other drugs, and about the health risks 

15 associated with abusing such substances, and infor16 mation about diseases and conditions transmitted 

17 through substance abuse and sexual contact, includ18 ing HIV/AIDS, and to coordinate with providers of 

19 services addressing such problems, as appropriate. 

20 ‘‘ ‘(5) COORDINATION WITH SPECIFIED PRO21 GRAMS.—An undertaking to coordinate, as appro22 priate, with State and local entities responsible for 

23 the programs funded under parts A, B, and D of 

24 this title, programs under title I of the Workforce 

25 Investment Act of 1998 (including the One-Stop de-
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1 livery system), and such other programs as the Sec2 retary may require. 

3 ‘‘ ‘(6) RECORDS, REPORTS, AND AUDITS.—An 

4 agreement to maintain such records, make such re5 ports, and cooperate with such reviews or audits (in 

6 addition to those required under the preceding provi7 sions of paragraph (2)) as the Secretary may find 

8 necessary for purposes of oversight of project activi9 ties and expenditures. 

10 ‘‘ ‘(d) FEDERAL SHARE.—

11 ‘‘ ‘(1) IN GENERAL.—Grants for a project under 

12 this section for a fiscal year shall be available for up 

13 to 80 percent of the cost of such project in such fis14 cal year. 

15 ‘‘ ‘(2) NON-FEDERAL SHARE.—The non-Federal 

16 share may be in cash or in kind. In determining the 

17 amount of the non-Federal share, the Secretary may 

18 attribute fair market value to goods, services, and 

19 facilities contributed from non-Federal sources. 

20 ‘‘ ‘SEC. 445. EVALUATION. 

21 ‘‘ ‘(a) IN GENERAL.—The Secretary, directly or by 

22 contract or cooperative agreement, shall evaluate the effec23 tiveness of service projects funded under sections 443 and 

24 444 from the standpoint of the purposes specified in sec25 tion 441(b)(1). 
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1 ‘‘ ‘(b) EVALUATION METHODOLOGY.—Evaluations 

2 under this section shall—

3 ‘‘ ‘(1) include, to the maximum extent feasible, 

4 random assignment of clients to service delivery and 

5 control groups and other appropriate comparisons of 

6 groups of individuals receiving and not receiving 

7 services; 

8 ‘‘ ‘(2) describe and measure the effectiveness of 

9 the projects in achieving their specific project goals; 

10 and 

11 ‘‘ ‘(3) describe and assess, as appropriate, the 

12 impact of such projects on marriage, parenting, do13 mestic violence, child abuse and neglect, money man14 agement, employment and earnings, payment of 

15 child support, and child well-being, health, and edu16 cation. 

17 ‘‘ ‘(c) EVALUATION REPORTS.—The Secretary shall 

18 publish the following reports on the results of the evalua19 tion: 

20 ‘‘ ‘(1) An implementation evaluation report cov21 ering the first 24 months of the activities under this 

22 part to be completed by 36 months after initiation 

23 of such activities. 

24 ‘‘ ‘(2) A final report on the evaluation to be 

25 completed by September 30, 2011. 
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1 ‘‘ ‘SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE. 

2 ‘‘ ‘The Secretary is authorized, by grant, contract, or 

3 cooperative agreement, to carry out projects and activities 

4 of national significance relating to fatherhood promotion, 

5 including—

6 ‘‘ ‘(1) COLLECTION AND DISSEMINATION OF IN7 FORMATION.—Assisting States, communities, and 

8 private entities, including religious organizations, in 

9 efforts to promote and support marriage and respon10 sible fatherhood by collecting, evaluating, developing, 

11 and making available (through the Internet and by 

12 other means) to all interested parties information re13 garding approaches to accomplishing the objectives 

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

15 ‘‘ ‘(2) MEDIA CAMPAIGN.—Developing, pro16 moting, and distributing to interested States, local 

17 governments, public agencies, and private nonprofit 

18 organizations, including charitable and religious or19 ganizations, a media campaign that promotes and 

20 encourages involved, committed, and responsible fa21 therhood and married fatherhood. 

22 ‘‘ ‘(3) TECHNICAL ASSISTANCE.—Providing 

23 technical assistance, including consultation and 

24 training, to public and private entities, including 

25 community organizations and faith-based organiza-
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1 tions, in the implementation of local fatherhood pro2 motion programs.

3 ‘‘ ‘(4) RESEARCH.—Conducting research related 

4 to the purposes of this part. 

5 ‘‘ ‘SEC. 447. NONDISCRIMINATION. 

6 ‘‘ ‘The projects and activities assisted under this part 

7 shall be available on the same basis to all fathers and ex8 pectant fathers able to benefit from such projects and ac9 tivities, including married and unmarried fathers and cus10 todial and noncustodial fathers, with particular attention 

11 to low-income fathers, and to mothers and expectant 

12 mothers on the same basis as to fathers. 

13 ‘‘ ‘SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RES14 ERVATION FOR CERTAIN PURPOSE. 

15 ‘‘ ‘(a) AUTHORIZATION.—There are authorized to be 

16 appropriated $20,000,000 for each of fiscal years 2004 

17 through 2008 to carry out the provisions of this part. 

18 ‘‘ ‘(b) RESERVATION.—Of the amount appropriated 

19 under this section for each fiscal year, not more than 15 

20 percent shall be available for the costs of the multicity, 

21 multicounty, multistate demonstration projects under sec22 tion 444, evaluations under section 445, and projects of 

23 national significance under section 446.’. 
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1 ‘‘(b) INAPPLICABILITY OF EFFECTIVE DATE PROVI2 SIONS.—Section 116 shall not apply to the amendment 

3 made by subsection (a) of this section.’’. 

4 (2) CLERICAL AMENDMENT.—Section 2 of such 

5 Act is amended in the table of contents by inserting 

6 after the item relating to section 116 the following 

7 new item:

‘‘Sec. 117. Fatherhood program.’’.

8 SEC. 120. STATE OPTION TO MAKE TANF PROGRAMS MAN9 DATORY PARTNERS WITH ONE-STOP EMPLOY10 MENT TRAINING CENTERS. 

11 Section 408 of the Social Security Act (42 U.S.C. 

12 608) is amended by adding at the end the following: 

13 ‘‘(h) STATE OPTION TO MAKE TANF PROGRAMS

14 MANDATORY PARTNERS WITH ONE-STOP EMPLOYMENT

15 TRAINING CENTERS.—For purposes of section 121(b) of 

16 the Workforce Investment Act of 1998, a State program 

17 funded under part A of title IV of the Social Security Act 

18 shall be considered a program referred to in paragraph 

19 (1)(B) of such section, unless, after the date of the enact20 ment of this subsection, the Governor of the State notifies 

21 the Secretaries of Health and Human Services and Labor 

22 in writing of the decision of the Governor not to make 

23 the State program a mandatory partner.’’. 
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1 SEC. 121. SENSE OF THE CONGRESS. 

2 It is the sense of the Congress that a State welfare3 to-work program should include a mentoring program. 

4 SEC. 122. EXTENSION THROUGH FISCAL YEAR 2003. 

5 Except as otherwise provided in this Act and the 

6 amendments made by this Act, activities authorized by 

7 part A of title IV of the Social Security Act, and by section 

8 1108(b) of the Social Security Act, shall continue through 

9 September 30, 2003, in the manner authorized, and at 

10 the level provided, for fiscal year 2002. 

11 TITLE II—CHILD CARE 

12 SEC. 201. SHORT TITLE. 

13 This title may be cited as the ‘‘Caring for Children 

14 Act of 2003’’. 

15 SEC. 202. GOALS. 

16 (a) GOALS.—Section 658A(b) of the Child Care and 

17 Development Block Grant Act of 1990 (42 U.S.C. 9801 

18 note) is amended—

19 (1) in paragraph (3) by striking ‘‘encourage’’ 

20 and inserting ‘‘assist’’, 

21 (2) by amending paragraph (4) to read as fol22 lows: 

23 ‘‘(4) to assist States to provide child care to 

24 low-income parents;’’, 

25 (3) by redesignating paragraph (5) as para26 graph (7), and 
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1 (4) by inserting after paragraph (4) the fol2 lowing: 

3 ‘‘(5) to encourage States to improve the quality 

4 of child care available to families; 

5 ‘‘(6) to promote school readiness by encour6 aging the exposure of young children in child care to 

7 nurturing environments and developmentally-appro8 priate activities, including activities to foster early 

9 cognitive and literacy development; and’’. 

10 (b) CONFORMING AMENDMENT.—Section 

11 658E(c)(3)(B) of the Child Care and Development Block 

12 Grant Act of 1990 (42 U.S.C. 9858c(c)(3)(B)) is amended 

13 by striking ‘‘through (5)’’ and inserting ‘‘through (7)’’. 

14 SEC. 203. AUTHORIZATION OF APPROPRIATIONS. 

15 Section 658B of the Child Care and Development 

16 Block Grant Act of 1990 (42 U.S.C. 9858) is amended—

17 (1) by striking ‘‘is’’ and inserting ‘‘are’’, and 

18 (2) by striking ‘‘$1,000,000,000 for each of the 

19 fiscal years 1996 through 2002’’ and inserting 

20 ‘‘$2,100,000,000 for fiscal year 2003, 

21 $2,300,000,000 for fiscal year 2004, 

22 $2,500,000,000 for fiscal year 2005, 

23 $2,700,000,000 for fiscal year 2006, 

24 $2,900,000,000 for fiscal year 2007, and 

25 $3,100,000,000 for fiscal year 2008’’.
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1 SEC. 204. APPLICATION AND PLAN. 

2 Section 658E(c)(2) of the Child Care and Develop3 ment Block Grant Act of 1990 (42 U.S.C. 9858C(c)(2)) 

4 is amended—

5 (1) by amending subparagraph (D) to read as 

6 follows: 

7 ‘‘(D) CONSUMER AND CHILD CARE PRO8 VIDER EDUCATION INFORMATION.—Certify that 

9 the State will collect and disseminate, through 

10 resource and referral services and other means 

11 as determined by the State, to parents of eligi12 ble children, child care providers, and the gen13 eral public, information regarding—

14 ‘‘(i) the promotion of informed child 

15 care choices, including information about 

16 the quality and availability of child care 

17 services; 

18 ‘‘(ii) research and best practices on 

19 children’s development, including early cog20 nitive development; 

21 ‘‘(iii) the availability of assistance to 

22 obtain child care services; and 

23 ‘‘(iv) other programs for which fami24 lies that receive child care services for 

25 which financial assistance is provided 

26 under this subchapter may be eligible, in-
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1 cluding the food stamp program, the WIC 

2 program under section 17 of the Child Nu3 trition Act of 1966, the child and adult 

4 care food program under section 17 of the 

5 Richard B. Russell National School Lunch 

6 Act, and the medicaid and SCHIP pro7 grams under titles XIX and XXI of the 

8 Social Security Act.’’, and 

9 (2) by inserting after subparagraph (H) the fol10 lowing: 

11 ‘‘(I) COORDINATION WITH OTHER EARLY

12 CHILD CARE SERVICES AND EARLY CHILDHOOD

13 EDUCATION PROGRAMS.—Demonstrate how the 

14 State is coordinating child care services pro15 vided under this subchapter with Head Start, 

16 Early Reading First, Even Start, Ready-To17 Learn Television, State pre-kindergarten pro18 grams, and other early childhood education pro19 grams to expand accessibility to and continuity 

20 of care and early education without displacing 

21 services provided by the current early care and 

22 education delivery system. 

23 ‘‘(J) PUBLIC-PRIVATE PARTNERSHIPS.—

24 Demonstrate how the State encourages partner25 ships with private and other public entities to 
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1 leverage existing service delivery systems of 

2 early childhood education and increase the sup3 ply and quality of child care services. 

4 ‘‘(K) CHILD CARE SERVICE QUALITY.—

5 ‘‘(i) CERTIFICATION.—For each fiscal 

6 year after fiscal year 2004, certify that 

7 during the then preceding fiscal year the 

8 State was in compliance with section 658G 

9 and describe how funds were used to com10 ply with such section during such pre11 ceding fiscal year. 

12 ‘‘(ii) STRATEGY.—For each fiscal year 

13 after fiscal year 2004, contain an outline 

14 of the strategy the State will implement 

15 during such fiscal year for which the State 

16 plan is submitted, to address the quality of 

17 child care services in the State available to 

18 low-income parents from eligible child care 

19 providers, and include in such strategy—

20 ‘‘(I) a statement specifying how 

21 the State will address the activities 

22 described in paragraphs (1), (2), and 

23 (3) of section 658G; 

24 ‘‘(II) a description of quantifi25 able, objective measures for evaluating 
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1 the quality of child care services sepa2 rately with respect to the activities 

3 listed in each of such paragraphs that 

4 the State will use to evaluate its 

5 progress in improving the quality of 

6 such child care services; 

7 ‘‘(III) a list of State-developed 

8 child care service quality targets for 

9 such fiscal year quantified on the 

10 basis of such measures; and 

11 ‘‘(IV) for each fiscal year after 

12 fiscal year 2004, a report on the 

13 progress made to achieve such targets 

14 during the then preceding fiscal year. 

15 ‘‘(iii) RULE OF CONSTRUCTION.—

16 Nothing in this subparagraph shall be con17 strued to require that the State apply 

18 measures for evaluating quality to specific 

19 types of child care providers. 

20 ‘‘(L) ACCESS TO CARE FOR CERTAIN POPU21 LATIONS.—Demonstrate how the State is ad22 dressing the child care needs of parents eligible 

23 for child care services for which financial assist24 ance is provided under this subchapter who 

25 have children with special needs, work nontradi-
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1 tional hours, or require child care services for 

2 infants or toddlers.’’. 

3 SEC. 205. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD 

4 CARE. 

5 Section 658G of the Child Care and Development 

6 Block Grant Act of 1990 (42 U.S.C. 9858e) is amended 

7 to read as follows: 

8 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF 

9 CHILD CARE SERVICES. 

10 ‘‘A State that receives funds to carry out this sub11 chapter for a fiscal year, shall use not less than 6 percent 

12 of the amount of such funds for activities provided 

13 through resource and referral services or other means, 

14 that are designed to improve the quality of child care serv15 ices in the State available to low-income parents from eli16 gible child care providers. Such activities include—

17 ‘‘(1) programs that provide training, education, 

18 and other professional development activities to en19 hance the skills of the child care workforce, includ20 ing training opportunities for caregivers in informal 

21 care settings; 

22 ‘‘(2) activities within child care settings to en23 hance early learning for young children, to promote 

24 early literacy, and to foster school readiness; 
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1 ‘‘(3) initiatives to increase the retention and 

2 compensation of child care providers, including 

3 tiered reimbursement rates for providers that meet 

4 quality standards as defined by the State; or 

5 ‘‘(4) other activities deemed by the State to im6 prove the quality of child care services provided in 

7 such State.’’. 

8 SEC. 206. REPORT BY SECRETARY. 

9 Section 658L of the Child Care and Development 

10 Block Grant Act of 1990 (42 U.S.C. 9858j) is amended 

11 to read as follows: 

12 ‘‘SEC. 658L. REPORT BY SECRETARY. 

13 ‘‘(a) REPORT REQUIRED.—Not later than October 1, 

14 2005, and biennially thereafter, the Secretary shall pre15 pare and submit to the Committee on Education and the 

16 Workforce of the House of Representatives and the Com17 mittee on Health, Education, Labor and Pensions of the 

18 Senate a report that contains the following: 

19 ‘‘(1) A summary and analysis of the data and 

20 information provided to the Secretary in the State 

21 reports submitted under section 658K. 

22 ‘‘(2) Aggregated statistics on the supply of, de23 mand for, and quality of child care, early education, 

24 and non-school-hours programs.
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1 ‘‘(3) An assessment, and where appropriate, 

2 recommendations for the Congress concerning ef3 forts that should be undertaken to improve the ac4 cess of the public to quality and affordable child care 

5 in the United States. 

6 ‘‘(b) COLLECTION OF INFORMATION.—The Secretary 

7 may utilize the national child care data system available 

8 through resource and referral organizations at the local, 

9 State, and national level to collect the information re10 quired by subsection (a)(2). 

11 SEC. 207. DEFINITIONS. 

12 Section 658P(4)(B) of the Child Care and Develop13 ment Block Grant Act of 1990 (42 U.S.C. 9858N(4)(B)) 

14 is amended by striking ‘‘85 percent of the State median 

15 income’’ and inserting ‘‘income levels as established by the 

16 State, prioritized by need,’’. 

17 SEC. 208. ENTITLEMENT FUNDING. 

18 Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amend19 ed—

20 (1) by striking ‘‘and’’ at the end of subpara21 graph (E); 

22 (2) by striking the period at the end of sub23 paragraph (F) and inserting ‘‘; and’’; and 

24 (3) by adding at the end the following: 
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1 ‘‘(G) $2,917,000,000 for each of fiscal 

2 years 2004 through 2008.’’. 

3 TITLE III—CHILD SUPPORT 

4 SEC. 301. FEDERAL MATCHING FUNDS FOR LIMITED PASS 

5 THROUGH OF CHILD SUPPORT PAYMENTS TO 

6 FAMILIES RECEIVING TANF. 

7 (a) IN GENERAL.—Section 457(a) (42 U.S.C. 

8 657(a)) is amended—

9 (1) in paragraph (1)(A), by inserting ‘‘subject 

10 to paragraph (7)’’ before the semicolon; and 

11 (2) by adding at the end the following: 

12 ‘‘(7) FEDERAL MATCHING FUNDS FOR LIMITED

13 PASS THROUGH OF CHILD SUPPORT PAYMENTS TO

14 FAMILIES RECEIVING TANF.—Notwithstanding para15 graph (1), a State shall not be required to pay to 

16 the Federal Government the Federal share of an 

17 amount collected during a month on behalf of a fam18 ily that is a recipient of assistance under the State 

19 program funded under part A, to the extent that—

20 ‘‘(A) the State distributes the amount to 

21 the family; 

22 ‘‘(B) the total of the amounts so distrib23 uted to the family during the month—

24 ‘‘(i) exceeds the amount (if any) that, 

25 as of December 31, 2001, was required 
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1 under State law to be distributed to a fam2 ily under paragraph (1)(B); and 

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

4 ‘‘(I) $100; or 

5 ‘‘(II) $50 plus the amount de6 scribed in clause (i); and 

7 ‘‘(C) the amount is disregarded in deter8 mining the amount and type of assistance pro9 vided to the family under the State program 

10 funded under part A.’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 subsection (a) shall apply to amounts distributed on or 

13 after October 1, 2005. 

14 SEC. 302. STATE OPTION TO PASS THROUGH ALL CHILD 

15 SUPPORT PAYMENTS TO FAMILIES THAT 

16 FORMERLY RECEIVED TANF. 

17 (a) IN GENERAL.—Section 457(a) (42 U.S.C. 

18 657(a)), as amended by section 301(a) of this Act, is 

19 amended—

20 (1) in paragraph (2)(B), in the matter pre21 ceding clause (i), by inserting ‘‘, except as provided 

22 in paragraph (8),’’ after ‘‘shall’’; and 

23 (2) by adding at the end the following: 

24 ‘‘(8) STATE OPTION TO PASS THROUGH ALL

25 CHILD SUPPORT PAYMENTS TO FAMILIES THAT FOR-
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1 MERLY RECEIVED TANF.—In lieu of applying para2 graph (2) to any family described in paragraph (2), 

3 a State may distribute to the family any amount col4 lected during a month on behalf of the family.’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 subsection (a) shall apply to amounts distributed on or 

7 after October 1, 2005. 

8 SEC. 303. MANDATORY REVIEW AND ADJUSTMENT OF 

9 CHILD SUPPORT ORDERS FOR FAMILIES RE10 CEIVING TANF. 

11 (a) IN GENERAL.—Section 466(a)(10)(A)(i) (42 

12 U.S.C. 666(a)(10)(A)(i)) is amended—

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

14 ‘‘parent or’’; and 

15 (2) by striking ‘‘upon the request of the State 

16 agency under the State plan or of either parent,’’. 

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

18 subsection (a) shall take effect on October 1, 2005. 

19 SEC. 304. MANDATORY FEE FOR SUCCESSFUL CHILD SUP20 PORT COLLECTION FOR FAMILY THAT HAS 

21 NEVER RECEIVED TANF. 

22 (a) IN GENERAL.—Section 454(6)(B) (42 U.S.C. 

23 654(6)(B)) is amended—

24 (1) by inserting ‘‘(i)’’ after ‘‘(B)’’;
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1 (2) by redesignating clauses (i) and (ii) as sub2 clauses (I) and (II), respectively; 

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

4 (4) by adding after and below the end the fol5 lowing new clause: 

6 ‘‘(ii) in the case of an individual who has 

7 never received assistance under a State pro8 gram funded under part A and for whom the 

9 State has collected at least $500 of support, the 

10 State shall impose an annual fee of $25 for 

11 each case in which services are furnished, which 

12 shall be retained by the State from support col13 lected on behalf of the individual (but not from 

14 the 1st $500 so collected), paid by the indi15 vidual applying for the services, recovered from 

16 the absent parent, or paid by the State out of 

17 its own funds (the payment of which from State 

18 funds shall not be considered as an administra19 tive cost of the State for the operation of the 

20 plan, and such fees shall be considered income 

21 to the program);’’. 

22 (b) CONFORMING AMENDMENT.—Section 457(a)(3) 

23 (42 U.S.C. 657(a)(3)) is amended to read as follows: 

24 ‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST25 ANCE.—In the case of any other family, the State 
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1 shall distribute to the family the portion of the 

2 amount so collected that remains after withholding 

3 any fee pursuant to section 454(6)(B)(ii).’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall take effect on October 1, 2004. 

6 SEC. 305. REPORT ON UNDISTRIBUTED CHILD SUPPORT 

7 PAYMENTS. 

8 Not later than 6 months after the date of the enact9 ment of this Act, the Secretary of Health and Human 

10 Services shall submit to the Committee on Ways and 

11 Means of the House of Representatives and the Committee 

12 on Finance of the Senate a report on the procedures that 

13 the States use generally to locate custodial parents for 

14 whom child support has been collected but not yet distrib15 uted. The report shall include an estimate of the total 

16 amount of undistributed child support and the average 

17 length of time it takes undistributed child support to be 

18 distributed. To the extent the Secretary deems appro19 priate, the Secretary shall include in the report rec20 ommendations as to whether additional procedures should 

21 be established at the State or Federal level to expedite 

22 the payment of undistributed child support. 
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1 SEC. 306. USE OF NEW HIRE INFORMATION TO ASSIST IN 

2 ADMINISTRATION OF UNEMPLOYMENT COM3 PENSATION PROGRAMS. 

4 (a) IN GENERAL.—Section 453(j) (42 U.S.C. 653(j)) 

5 is amended by adding at the end the following: 

6 ‘‘(7) INFORMATION COMPARISONS AND DISCLO7 SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY8 MENT COMPENSATION PROGRAMS.—

9 ‘‘(A) IN GENERAL.—If a State agency re10 sponsible for the administration of an unem11 ployment compensation program under Federal 

12 or State law transmits to the Secretary the 

13 name and social security account number of an 

14 individual, the Secretary shall, if the informa15 tion in the National Directory of New Hires in16 dicates that the individual may be employed, 

17 disclose to the State agency the name, address, 

18 and employer identification number of any pu19 tative employer of the individual, subject to this 

20 paragraph. 

21 ‘‘(B) CONDITION ON DISCLOSURE.—The 

22 Secretary shall make a disclosure under sub23 paragraph (A) only to the extent that the Sec24 retary determines that the disclosure would not 

25 interfere with the effective operation of the pro26 gram under this part. 
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1 ‘‘(C) USE OF INFORMATION.—A State 

2 agency may use information provided under this 

3 paragraph only for purposes of administering a 

4 program referred to in subparagraph (A).’’. 

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

6 subsection (a) shall take effect on October 1, 2004. 

7 SEC. 307. DECREASE IN AMOUNT OF CHILD SUPPORT AR8 REARAGE TRIGGERING PASSPORT DENIAL. 

9 (a) IN GENERAL.—Section 452(k)(1) (42 U.S.C. 

10 652(k)(1)) is amended by striking ‘‘$5,000’’ and inserting 

11 ‘‘$2,500’’. 

12 (b) CONFORMING AMENDMENT.—Section 454(31) 

13 (42 U.S.C. 654(31)) is amended by striking ‘‘$5,000’’ and 

14 inserting ‘‘$2,500’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall take effect on October 1, 2004. 

17 SEC. 308. USE OF TAX REFUND INTERCEPT PROGRAM TO 

18 COLLECT PAST-DUE CHILD SUPPORT ON BE19 HALF OF CHILDREN WHO ARE NOT MINORS. 

20 (a) IN GENERAL.—Section 464 (42 U.S.C. 664) is 

21 amended—

22 (1) in subsection (a)(2)(A), by striking ‘‘(as 

23 that term is defined for purposes of this paragraph 

24 under subsection (c))’’; and 

25 (2) in subsection (c)—
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1 (A) in paragraph (1)—

2 (i) by striking ‘‘(1) Except as pro3 vided in paragraph (2), as used in’’ and in4 serting ‘‘In’’; and 

5 (ii) by inserting ‘‘(whether or not a 

6 minor)’’ after ‘‘a child’’ each place it ap7 pears; and 

8 (B) by striking paragraphs (2) and (3). 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 subsection (a) shall take effect on October 1, 2005. 

11 SEC. 309. GARNISHMENT OF COMPENSATION PAID TO VET12 ERANS FOR SERVICE-CONNECTED DISABIL13 ITIES IN ORDER TO ENFORCE CHILD SUP14 PORT OBLIGATIONS. 

15 (a) IN GENERAL.—Section 459(h) (42 U.S.C. 

16 659(h)) is amended—

17 (1) in paragraph (1)(A)(ii)(V), by striking all 

18 that follows ‘‘Armed Forces’’ and inserting a semi19 colon; and 

20 (2) by adding at the end the following: 

21 ‘‘(3) LIMITATIONS WITH RESPECT TO COM22 PENSATION PAID TO VETERANS FOR SERVICE-CON23 NECTED DISABILITIES.—Notwithstanding any other 

24 provision of this section: 
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1 ‘‘(A) Compensation described in paragraph 

2 (1)(A)(ii)(V) shall not be subject to withholding 

3 pursuant to this section—

4 ‘‘(i) for payment of alimony; or 

5 ‘‘(ii) for payment of child support if 

6 the individual is fewer than 60 days in ar7 rears in payment of the support. 

8 ‘‘(B) Not more than 50 percent of any 

9 payment of compensation described in para10 graph (1)(A)(ii)(V) may be withheld pursuant 

11 to this section.’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 subsection (a) shall take effect on October 1, 2005. 

14 SEC. 310. IMPROVING FEDERAL DEBT COLLECTION PRAC15 TICES. 

16 (a) IN GENERAL.—Section 3716(h)(3) of title 31, 

17 United States Code, is amended to read as follows: 

18 ‘‘(3) In applying this subsection with respect to any 

19 debt owed to a State, other than past due support being 

20 enforced by the State, subsection (c)(3)(A) shall not apply. 

21 Subsection (c)(3)(A) shall apply with respect to past due 

22 support being enforced by the State notwithstanding any 

23 other provision of law, including sections 207 and 

24 1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 

25 1383(d)(1)), section 413(b) of Public law 91–173 (30 
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1 U.S.C. 923(b)), and section 14 of the Act of August 29, 

2 1935 (45 U.S.C. 231m).’’. 

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

4 subsection (a) shall take effect on October 1, 2004. 

5 SEC. 311. MAINTENANCE OF TECHNICAL ASSISTANCE 

6 FUNDING. 

7 Section 452(j) (42 U.S.C. 652(j)) is amended by in8 serting ‘‘or the amount appropriated under this paragraph 

9 for fiscal year 2002, whichever is greater,’’ before ‘‘which 

10 shall be available’’. 

11 SEC. 312. MAINTENANCE OF FEDERAL PARENT LOCATOR 

12 SERVICE FUNDING. 

13 Section 453(o) (42 U.S.C. 653(o)) is amended—

14 (1) in the 1st sentence, by inserting ‘‘or the 

15 amount appropriated under this paragraph for fiscal 

16 year 2002, whichever is greater,’’ before ‘‘which 

17 shall be available’’; and 

18 (2) in the 2nd sentence, by striking ‘‘for each 

19 of fiscal years 1997 through 2001’’. 

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 ‘‘2002’’ and inserting ‘‘2008’’. 
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1 SEC. 402. ELIMINATION OF LIMITATION ON NUMBER OF 

2 WAIVERS. 

3 Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is 

4 amended by striking ‘‘not more than 10’’. 

5 SEC. 403. ELIMINATION OF LIMITATION ON NUMBER OF 

6 STATES THAT MAY BE GRANTED WAIVERS TO 

7 CONDUCT DEMONSTRATION PROJECTS ON 

8 SAME TOPIC. 

9 Section 1130 (42 U.S.C. 1320a–9) is amended by 

10 adding at the end the following: 

11 ‘‘(h) NO LIMIT ON NUMBER OF STATES THAT MAY

12 BE GRANTED WAIVERS TO CONDUCT SAME OR SIMILAR

13 DEMONSTRATION PROJECTS.—The Secretary shall not 

14 refuse to grant a waiver to a State under this section on 

15 the grounds that a purpose of the waiver or of the dem16 onstration project for which the waiver is necessary would 

17 be the same as or similar to a purpose of another waiver 

18 or project that is or may be conducted under this sec19 tion.’’. 

20 SEC. 404. ELIMINATION OF LIMITATION ON NUMBER OF 

21 WAIVERS THAT MAY BE GRANTED TO A SIN22 GLE STATE FOR DEMONSTRATION PROJECTS. 

23 Section 1130 (42 U.S.C. 1320a–9) is further amend24 ed by adding at the end the following: 

25 ‘‘(i) NO LIMIT ON NUMBER OF WAIVERS GRANTED

26 TO, OR DEMONSTRATION PROJECTS THAT MAY BE CON-
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1 DUCTED BY, A SINGLE STATE.—The Secretary shall not 

2 impose any limit on the number of waivers that may be 

3 granted to a State, or the number of demonstration 

4 projects that a State may be authorized to conduct, under 

5 this section.’’. 

6 SEC. 405. STREAMLINED PROCESS FOR CONSIDERATION OF 

7 AMENDMENTS TO AND EXTENSIONS OF DEM8 ONSTRATION PROJECTS REQUIRING WAIV9 ERS. 

10 Section 1130 (42 U.S.C. 1320a–9) is further amend11 ed by adding at the end the following: 

12 ‘‘(j) STREAMLINED PROCESS FOR CONSIDERATION

13 OF AMENDMENTS AND EXTENSIONS.—The Secretary 

14 shall develop a streamlined process for consideration of 

15 amendments and extensions proposed by States to dem16 onstration projects conducted under this section.’’. 

17 SEC. 406. AVAILABILITY OF REPORTS. 

18 Section 1130 (42 U.S.C. 1320a–9) is further amend19 ed by adding at the end the following: 

20 ‘‘(k) AVAILABILITY OF REPORTS.—The Secretary 

21 shall make available to any State or other interested party 

22 any report provided to the Secretary under subsection 

23 (f)(2), and any evaluation or report made by the Secretary 

24 with respect to a demonstration project conducted under 
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1 this section, with a focus on information that may promote 

2 best practices and program improvements.’’. 

3 SEC. 407. TECHNICAL CORRECTION. 

4 Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is 

5 amended by striking ‘‘422(b)(9)’’ and inserting 

6 ‘‘422(b)(10)’’. 

7 TITLE V—SUPPLEMENTAL 

8 SECURITY INCOME 

9 SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DIS10 ABILITY DETERMINATIONS. 

11 Section 1633 (42 U.S.C. 1383b) is amended by add12 ing at the end the following: 

13 ‘‘(e)(1) The Commissioner of Social Security shall re14 view determinations, made by State agencies pursuant to 

15 subsection (a) in connection with applications for benefits 

16 under this title on the basis of blindness or disability, that 

17 individuals who have attained 18 years of age are blind 

18 or disabled as of a specified onset date. The Commissioner 

19 of Social Security shall review such a determination before 

20 any action is taken to implement the determination. 

21 ‘‘(2)(A) In carrying out paragraph (1), the Commis22 sioner of Social Security shall review—

23 ‘‘(i) at least 20 percent of all determinations re24 ferred to in paragraph (1) that are made in fiscal 

25 year 2004;
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1 ‘‘(ii) at least 40 percent of all such determina2 tions that are made in fiscal year 2005; and 

3 ‘‘(iii) at least 50 percent of all such determina4 tions that are made in fiscal year 2006 or thereafter. 

5 ‘‘(B) In carrying out subparagraph (A), the Commis6 sioner of Social Security shall, to the extent feasible, select 

7 for review the determinations which the Commissioner of 

8 Social Security identifies as being the most likely to be 

9 incorrect.’’. 

10 TITLE VI—STATE AND LOCAL 

11 FLEXIBILITY 

12 SEC. 601. PROGRAM COORDINATION DEMONSTRATION 

13 PROJECTS. 

14 (a) PURPOSE.—The purpose of this section is to es15 tablish a program of demonstration projects in a State or 

16 portion of a State to coordinate multiple public assistance, 

17 workforce development, and other programs, for the pur18 pose of supporting working individuals and families, help19 ing families escape welfare dependency, promoting child 

20 well-being, or helping build stronger families, using inno21 vative approaches to strengthen service systems and pro22 vide more coordinated and effective service delivery. 

23 (b) DEFINITIONS.—In this section: 

24 (1) ADMINISTERING SECRETARY.—The term 

25 ‘‘administering Secretary’’ means, with respect to a 
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1 qualified program, the head of the Federal agency 

2 responsible for administering the program. 

3 (2) QUALIFIED PROGRAM.—The term ‘‘qualified 

4 program’’ means—

5 (A) a program under part A of title IV of 

6 the Social Security Act; 

7 (B) the program under title XX of such 

8 Act; 

9 (C) activities funded under title I of the 

10 Workforce Investment Act of 1998, except sub11 title C of such title; 

12 (D) a demonstration project authorized 

13 under section 505 of the Family Support Act of 

14 1988; 

15 (E) activities funded under the Wagner16 Peyser Act; 

17 (F) activities funded under the Adult Edu18 cation and Family Literacy Act; 

19 (G) activities funded under the Child Care 

20 and Development Block Grant Act of 1990; 

21 (H) activities funded under the United 

22 States Housing Act of 1937 (42 U.S.C. 1437 et 

23 seq.), except that such term shall not include—
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1 (i) any program for rental assistance 

2 under section 8 of such Act (42 U.S.C. 

3 1437f); and 

4 (ii) the program under section 7 of 

5 such Act (42 U.S.C. 1437e) for desig6 nating public housing for occupancy by 

7 certain populations; 

8 (I) activities funded under title I, II, III, 

9 or IV of the McKinney-Vento Homeless Assist10 ance Act (42 U.S.C. 11301 et seq.); or 

11 (J) the food stamp program as defined in 

12 section 3(h) of the Food Stamp Act of 1977 (7 

13 U.S.C. 2012(h)). 

14 (c) APPLICATION REQUIREMENTS.—The head of a 

15 State entity or of a sub-State entity administering 2 or 

16 more qualified programs proposed to be included in a dem17 onstration project under this section shall (or, if the 

18 project is proposed to include qualified programs adminis19 tered by 2 or more such entities, the heads of the admin20 istering entities (each of whom shall be considered an ap21 plicant for purposes of this section) shall jointly) submit 

22 to the administering Secretary of each such program an 

23 application that contains the following: 

24 (1) PROGRAMS INCLUDED.—A statement identi25 fying each qualified program to be included in the 
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1 project, and describing how the purposes of each 

2 such program will be achieved by the project. 

3 (2) POPULATION SERVED.—A statement identi4 fying the population to be served by the project and 

5 specifying the eligibility criteria to be used. 

6 (3) DESCRIPTION AND JUSTIFICATION.—A de7 tailed description of the project, including—

8 (A) a description of how the project is ex9 pected to improve or enhance achievement of 

10 the purposes of the programs to be included in 

11 the project, from the standpoint of quality, of 

12 cost-effectiveness, or of both; and 

13 (B) a description of the performance objec14 tives for the project, including any proposed 

15 modifications to the performance measures and 

16 reporting requirements used in the programs. 

17 (4) WAIVERS REQUESTED.—A description of 

18 the statutory and regulatory requirements with re19 spect to which a waiver is requested in order to 

20 carry out the project, and a justification of the need 

21 for each such waiver. 

22 (5) COST NEUTRALITY.—Such information and 

23 assurances as necessary to establish to the satisfac24 tion of the administering Secretary, in consultation 

25 with the Director of the Office of Management and
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1 Budget, that the proposed project is reasonably ex2 pected to meet the applicable cost neutrality require3 ments of subsection (d)(4). 

4 (6) EVALUATION AND REPORTS.—An assurance 

5 that the applicant will conduct ongoing and final 

6 evaluations of the project, and make interim and 

7 final reports to the administering Secretary, at such 

8 times and in such manner as the administering Sec9 retary may require. 

10 (7) PUBLIC HOUSING AGENCY PLAN.—In the 

11 case of an application proposing a demonstration 

12 project that includes activities referred to in sub13 section (b)(2)(H) of this section—

14 (A) a certification that the applicable an15 nual public housing agency plan of any agency 

16 affected by the project that is approved under 

17 section 5A of the United States Housing Act of 

18 1937 (42 U.S.C. 1437c–1) by the Secretary in19 cludes the information specified in paragraphs 

20 (1) through (4) of this subsection; and 

21 (B) any resident advisory board rec22 ommendations, and other information, relating 

23 to the project that, pursuant to section 

24 5A(e)(2) of the United States Housing Act of 

25 1937 (42 U.S.C. 1437c–1(e)(2), is required to 
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1 be included in the public housing agency plan of 

2 any public housing agency affected by the 

3 project. 

4 (8) OTHER INFORMATION AND ASSURANCES.—

5 Such other information and assurances as the ad6 ministering Secretary may require. 

7 (d) APPROVAL OF APPLICATIONS.—

8 (1) IN GENERAL.—The administering Secretary 

9 with respect to a qualified program that is identified 

10 in an application submitted pursuant to subsection 

11 (c) may approve the application and, except as pro12 vided in paragraph (2), waive any requirement appli13 cable to the program, to the extent consistent with 

14 this section and necessary and appropriate for the 

15 conduct of the demonstration project proposed in the 

16 application, if the administering Secretary deter17 mines that the project—

18 (A) has a reasonable likelihood of achieving 

19 the objectives of the programs to be included in 

20 the project; 

21 (B) may reasonably be expected to meet 

22 the applicable cost neutrality requirements of 

23 paragraph (4), as determined by the Director of 

24 the Office of Management and Budget; and 
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1 (C) includes the coordination of 2 or more 

2 qualified programs. 

3 (2) PROVISIONS EXCLUDED FROM WAIVER AU4 THORITY.—A waiver shall not be granted under 

5 paragraph (1)—

6 (A) with respect to any provision of law re7 lating to—

8 (i) civil rights or prohibition of dis9 crimination; 

10 (ii) purposes or goals of any program; 

11 (iii) maintenance of effort require12 ments; 

13 (iv) health or safety; 

14 (v) labor standards under the Fair 

15 Labor Standards Act of 1938; or 

16 (vi) environmental protection; 

17 (B) with respect to section 241(a) of the 

18 Adult Education and Family Literacy Act; 

19 (C) in the case of a program under the 

20 United States Housing Act of 1937 (42 U.S.C. 

21 1437 et seq.), with respect to any requirement 

22 under section 5A of such Act (42 U.S.C. 

23 1437c–1; relating to public housing agency 

24 plans and resident advisory boards); 
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1 (D) in the case of a program under the 

2 Workforce Investment Act, with respect to any 

3 requirement the waiver of which would violate 

4 section 189(i)(4)(A)(i) of such Act; 

5 (E) in the case of the food stamp program 

6 (as defined in section 3(h) of the Food Stamp 

7 Act of 1977 (7 U.S.C. 2012(h)), with respect to 

8 any requirement under—

9 (i) section 6 (if waiving a requirement 

10 under such section would have the effect of 

11 expanding eligibility for the program), 7(b) 

12 or 16(c) of the Food Stamp Act of 1977 

13 (7 U.S.C. 2011 et seq.); or 

14 (ii) title IV of the Personal Responsi15 bility and Work Opportunity Reconciliation 

16 Act of 1996 (8 U.S.C. 1601 et seq.); 

17 (F) with respect to any requirement that a 

18 State pass through to a sub-State entity part or 

19 all of an amount paid to the State; 

20 (G) if the waiver would waive any funding 

21 restriction or limitation provided in an appro22 priations Act, or would have the effect of trans23 ferring appropriated funds from 1 appropria24 tions account to another; or
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1 (H) except as otherwise provided by stat2 ute, if the waiver would waive any funding re3 striction applicable to a program authorized 

4 under an Act which is not an appropriations 

5 Act (but not including program requirements 

6 such as application procedures, performance 

7 standards, reporting requirements, or eligibility 

8 standards), or would have the effect of transfer9 ring funds from a program for which there is 

10 direct spending (as defined in section 250(c)(8) 

11 of the Balanced Budget and Emergency Deficit 

12 Control Act of 1985) to another program. 

13 (3) AGREEMENT OF EACH ADMINISTERING SEC14 RETARY REQUIRED.—

15 (A) IN GENERAL.—An applicant may not 

16 conduct a demonstration project under this sec17 tion unless each administering Secretary with 

18 respect to any program proposed to be included 

19 in the project has approved the application to 

20 conduct the project. 

21 (B) AGREEMENT WITH RESPECT TO FUND22 ING AND IMPLEMENTATION.—Before approving 

23 an application to conduct a demonstration 

24 project under this section, an administering 

25 Secretary shall have in place an agreement with 
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1 the applicant with respect to the payment of 

2 funds and responsibilities required of the ad3 ministering Secretary with respect to the 

4 project. 

5 (4) COST-NEUTRALITY REQUIREMENT.—

6 (A) GENERAL RULE.—Notwithstanding 

7 any other provision of law (except subparagraph 

8 (B)), the total of the amounts that may be paid 

9 by the Federal Government for a fiscal year 

10 with respect to the programs in the State in 

11 which an entity conducting a demonstration 

12 project under this section is located that are af13 fected by the project shall not exceed the esti14 mated total amount that the Federal Govern15 ment would have paid for the fiscal year with 

16 respect to the programs if the project had not 

17 been conducted, as determined by the Director 

18 of the Office of Management and Budget. 

19 (B) SPECIAL RULE.—If an applicant sub20 mits to the Director of the Office of Manage21 ment and Budget a request to apply the rules 

22 of this subparagraph to the programs in the 

23 State in which the applicant is located that are 

24 affected by a demonstration project proposed in 

25 an application submitted by the applicant pur-
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1 suant to this section, during such period of not 

2 more than 5 consecutive fiscal years in which 

3 the project is in effect, and the Director deter4 mines, on the basis of supporting information 

5 provided by the applicant, to grant the request, 

6 then, notwithstanding any other provision of 

7 law, the total of the amounts that may be paid 

8 by the Federal Government for the period with 

9 respect to the programs shall not exceed the es10 timated total amount that the Federal Govern11 ment would have paid for the period with re12 spect to the programs if the project had not 

13 been conducted. 

14 (5) 90-DAY APPROVAL DEADLINE.—

15 (A) IN GENERAL.—If an administering 

16 Secretary receives an application to conduct a 

17 demonstration project under this section and 

18 does not disapprove the application within 90 

19 days after the receipt, then—

20 (i) the administering Secretary is 

21 deemed to have approved the application 

22 for such period as is requested in the ap23 plication, except to the extent inconsistent 

24 with subsection (e); and 
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1 (ii) any waiver requested in the appli2 cation which applies to a qualified program 

3 that is identified in the application and is 

4 administered by the administering Sec5 retary is deemed to be granted, except to 

6 the extent inconsistent with paragraph (2) 

7 or (4) of this subsection. 

8 (B) DEADLINE EXTENDED IF ADDITIONAL

9 INFORMATION IS SOUGHT.—The 90-day period 

10 referred to in subparagraph (A) shall not in11 clude any period that begins with the date the 

12 Secretary requests the applicant to provide ad13 ditional information with respect to the applica14 tion and ends with the date the additional in15 formation is provided. 

16 (e) DURATION OF PROJECTS.—A demonstration 

17 project under this section may be approved for a term of 

18 not more than 5 years. 

19 (f) REPORTS TO CONGRESS.—

20 (1) REPORT ON DISPOSITION OF APPLICA21 TIONS.—Within 90 days after an administering Sec22 retary receives an application submitted pursuant to 

23 this section, the administering Secretary shall sub24 mit to each Committee of the Congress which has 

25 jurisdiction over a qualified program identified in
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1 the application notice of the receipt, a description 

2 of the decision of the administering Secretary with 

3 respect to the application, and the reasons for ap4 proving or disapproving the application. 

5 (2) REPORTS ON PROJECTS.—Each admin6 istering Secretary shall provide annually to the Con7 gress a report concerning demonstration projects ap8 proved under this section, including—

9 (A) the projects approved for each appli10 cant; 

11 (B) the number of waivers granted under 

12 this section, and the specific statutory provi13 sions waived; 

14 (C) how well each project for which a waiv15 er is granted is improving or enhancing pro16 gram achievement from the standpoint of qual17 ity, cost-effectiveness, or both; 

18 (D) how well each project for which a 

19 waiver is granted is meeting the performance 

20 objectives specified in subsection (c)(3)(B); 

21 (E) how each project for which a waiver is 

22 granted is conforming with the cost-neutrality 

23 requirements of subsection (d)(4); and 

24 (F) to the extent the administering Sec25 retary deems appropriate, recommendations for 
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1 modification of programs based on outcomes of 

2 the projects. 

3 (g) AMENDMENT TO UNITED STATES HOUSING ACT

4 OF 1937.—Section 5A(d) of the United States Housing 

5 Act of 1937 (42 U.S.C. 1437c–1(d)) is amended—

6 (1) by redesignating paragraph (18) as para7 graph (19); and 

8 (2) by inserting after paragraph (17) the fol9 lowing new paragraph: 

10 ‘‘(18) PROGRAM COORDINATION DEMONSTRA11 TION PROJECTS.—In the case of an agency that ad12 ministers an activity referred to in section 

13 701(b)(2)(H) of the Personal Responsibility, Work, 

14 and Family Promotion Act of 2003 that, during 

15 such fiscal year, will be included in a demonstration 

16 project under section 701 of such Act, the informa17 tion that is required to be included in the application 

18 for the project pursuant to paragraphs (1) through 

19 (4) of section 701(b) of such Act.’’. 

20 SEC. 602. STATE FOOD ASSISTANCE BLOCK GRANT DEM21 ONSTRATION PROJECT. 

22 The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) 

23 is amended by adding at the end the following: 
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1 ‘‘SEC. 28. STATE FOOD ASSISTANCE BLOCK GRANT DEM2 ONSTRATION PROJECT. 

3 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab4 lish a program to make grants to States in accordance 

5 with this section to provide—

6 ‘‘(1) food assistance to needy individuals and 

7 families residing in the State; 

8 ‘‘(2) funds to operate an employment and train9 ing program under subsection (g) for needy individ10 uals under the program; and 

11 ‘‘(3) funds for administrative costs incurred in 

12 providing the assistance. 

13 ‘‘(b) ELECTION.—

14 ‘‘(1) IN GENERAL.—A State may elect to par15 ticipate in the program established under subsection 

16 (a). 

17 ‘‘(2) ELECTION REVOCABLE.—A State that 

18 elects to participate in the program established 

19 under subsection (a) may subsequently reverse the 

20 election of the State only once thereafter. Following 

21 the reversal, the State shall only be eligible to par22 ticipate in the food stamp program in accordance 

23 with the other sections of this Act and shall not re24 ceive a block grant under this section. 

25 ‘‘(3) PROGRAM EXCLUSIVE.—A State that is 

26 participating in the program established under sub-
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1 section (a) shall not be subject to, or receive any 

2 benefit under, this Act except as provided in this 

3 section. 

4 ‘‘(c) LEAD AGENCY.—

5 ‘‘(1) DESIGNATION.—A State desiring to par6 ticipate in the program established under subsection 

7 (a) shall designate, in an application submitted to 

8 the Secretary under subsection (d)(1), an appro9 priate State agency that complies with paragraph 

10 (2) to act as the lead agency for the State. 

11 ‘‘(2) DUTIES.—The lead agency shall—

12 ‘‘(A) administer, either directly, through 

13 other State agencies, or through local agencies, 

14 the assistance received under this section by the 

15 State; 

16 ‘‘(B) develop the State plan to be sub17 mitted to the Secretary under subsection (d)(1); 

18 and 

19 ‘‘(C) coordinate the provision of food as20 sistance under this section with other Federal, 

21 State, and local programs. 

22 ‘‘(d) APPLICATION AND PLAN.—

23 ‘‘(1) APPLICATION.—To be eligible to receive 

24 assistance under this section, a State shall prepare 

25 and submit to the Secretary an application at such
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1 time, in such manner, and containing such informa2 tion as the Secretary shall by regulation require, in3 cluding—

4 ‘‘(A) an assurance that the State will com5 ply with the requirements of this section; 

6 ‘‘(B) a State plan that meets the require7 ments of paragraph (2); and 

8 ‘‘(C) an assurance that the State will com9 ply with the requirements of the State plan 

10 under paragraph (2). 

11 ‘‘(2) REQUIREMENTS OF PLAN.—

12 ‘‘(A) LEAD AGENCY.—The State plan shall 

13 identify the lead agency. 

14 ‘‘(B) USE OF BLOCK GRANT FUNDS.—The 

15 State plan shall provide that the State shall use 

16 the amounts provided to the State for each fis17 cal year under this section—

18 ‘‘(i) to provide food assistance to 

19 needy individuals and families residing in 

20 the State, other than residents of institu21 tions who are ineligible for food stamps 

22 under section 3(i); 

23 ‘‘(ii) to administer an employment 

24 and training program under subsection (g) 

25 for needy individuals under the program 
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1 and to provide reimbursements to needy 

2 individuals and families as would be al3 lowed under section 16(h)(3); and 

4 ‘‘(iii) to pay administrative costs in5 curred in providing the assistance. 

6 ‘‘(C) ASSISTANCE FOR ENTIRE STATE.—

7 The State plan shall provide that benefits under 

8 this section shall be available throughout the 

9 entire State. 

10 ‘‘(D) NOTICE AND HEARINGS.—The State 

11 plan shall provide that an individual or family 

12 who applies for, or receives, assistance under 

13 this section shall be provided with notice of, and 

14 an opportunity for a hearing on, any action 

15 under this section that adversely affects the in16 dividual or family. 

17 ‘‘(E) OTHER ASSISTANCE.—

18 ‘‘(i) COORDINATION.—The State plan 

19 may coordinate assistance received under 

20 this section with assistance provided under 

21 the State program funded under part A of 

22 title IV of the Social Security Act (42 

23 U.S.C. 601 et seq.). 

24 ‘‘(ii) PENALTIES.—If an individual or 

25 family is penalized for violating part A of 
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1 title IV of the Act, the State plan may re2 duce the amount of assistance provided 

3 under this section or otherwise penalize the 

4 individual or family. 

5 ‘‘(F) ELIGIBILITY LIMITATIONS.—The 

6 State plan shall describe the income and re7 source eligibility limitations that are established 

8 for the receipt of assistance under this section. 

9 ‘‘(G) RECEIVING BENEFITS IN MORE THAN

10 1 JURISDICTION.—The State plan shall estab11 lish a system to verify and otherwise ensure 

12 that no individual or family shall receive bene13 fits under this section in more than 1 jurisdic14 tion within the State. 

15 ‘‘(H) PRIVACY.—The State plan shall pro16 vide for safeguarding and restricting the use 

17 and disclosure of information about any indi18 vidual or family receiving assistance under this 

19 section. 

20 ‘‘(I) OTHER INFORMATION.—The State 

21 plan shall contain such other information as 

22 may be required by the Secretary. 

23 ‘‘(3) APPROVAL OF APPLICATION AND PLAN.—

24 During fiscal years 2004 through 2008, the Sec25 retary may approve the applications and State plans 
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1 that satisfy the requirements of this section of not 

2 more than 5 States for a term of not more than 5 

3 years. 

4 ‘‘(e) CONSTRUCTION OF FACILITIES.—No funds 

5 made available under this section shall be expended for 

6 the purchase or improvement of land, or for the purchase, 

7 construction, or permanent improvement of any building 

8 or facility. 

9 ‘‘(f) BENEFITS FOR ALIENS.—No individual shall be 

10 eligible to receive benefits under a State plan approved 

11 under subsection (d)(3) if the individual is not eligible to 

12 participate in the food stamp program under title IV of 

13 the Personal Responsibility and Work Opportunity Rec14 onciliation Act of 1996 (8 U.S.C. 1601 et seq.). 

15 ‘‘(g) EMPLOYMENT AND TRAINING.—Each State 

16 shall implement an employment and training program for 

17 needy individuals under the program. 

18 ‘‘(h) ENFORCEMENT.—

19 ‘‘(1) REVIEW OF COMPLIANCE WITH STATE

20 PLAN.—The Secretary shall review and monitor 

21 State compliance with this section and the State 

22 plan approved under subsection (d)(3). 

23 ‘‘(2) NONCOMPLIANCE.—
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1 ‘‘(A) IN GENERAL.—If the Secretary, after 

2 reasonable notice to a State and opportunity for 

3 a hearing, finds that—

4 ‘‘(i) there has been a failure by the 

5 State to comply substantially with any pro6 vision or requirement set forth in the State 

7 plan approved under subsection (d)(3); or 

8 ‘‘(ii) in the operation of any program 

9 or activity for which assistance is provided 

10 under this section, there is a failure by the 

11 State to comply substantially with any pro12 vision of this section, the Secretary shall 

13 notify the State of the finding and that no 

14 further payments will be made to the State 

15 under this section (or, in the case of non16 compliance in the operation of a program 

17 or activity, that no further payments to the 

18 State will be made with respect to the pro19 gram or activity) until the Secretary is sat20 isfied that there is no longer any failure to 

21 comply or that the noncompliance will be 

22 promptly corrected. 

23 ‘‘(B) OTHER SANCTIONS.—In the case of a 

24 finding of noncompliance made pursuant to 

25 subparagraph (A), the Secretary may, in addi-
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1 tion to, or in lieu of, imposing the sanctions de2 scribed in subparagraph (A), impose other ap3 propriate sanctions, including recoupment of 

4 money improperly expended for purposes pro5 hibited or not authorized by this section and 

6 disqualification from the receipt of financial as7 sistance under this section. 

8 ‘‘(C) NOTICE.—The notice required under 

9 subparagraph (A) shall include a specific identi10 fication of any additional sanction being im11 posed under subparagraph (B). 

12 ‘‘(3) ISSUANCE OF REGULATIONS.—The Sec13 retary shall establish by regulation procedures for—

14 ‘‘(A) receiving, processing, and deter15 mining the validity of complaints concerning 

16 any failure of a State to comply with the State 

17 plan or any requirement of this section; and 

18 ‘‘(B) imposing sanctions under this sec19 tion. 

20 ‘‘(i) PAYMENTS.—

21 ‘‘(1) IN GENERAL.—For each fiscal year, the 

22 Secretary shall pay to a State that has an applica23 tion approved by the Secretary under subsection 

24 (d)(3) an amount that is equal to the allotment of 

25 the State under subsection (l)(2) for the fiscal year. 
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1 ‘‘(2) METHOD OF PAYMENT.—The Secretary 

2 shall make payments to a State for a fiscal year 

3 under this section by issuing 1 or more letters of 

4 credit for the fiscal year, with necessary adjustments 

5 on account of overpayments or underpayments, as 

6 determined by the Secretary. 

7 ‘‘(3) SPENDING OF FUNDS BY STATE.—

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraph (B), payments to a State from an 

10 allotment under subsection (l)(2) for a fiscal 

11 year may be expended by the State only in the 

12 fiscal year. 

13 ‘‘(B) CARRYOVER.—The State may reserve 

14 up to 10 percent of an allotment under sub15 section (l)(2) for a fiscal year to provide assist16 ance under this section in subsequent fiscal 

17 years, except that the reserved funds may not 

18 exceed 30 percent of the total allotment re19 ceived under this section for a fiscal year. 

20 ‘‘(4) PROVISION OF FOOD ASSISTANCE.—A 

21 State may provide food assistance under this section 

22 in any manner determined appropriate by the State 

23 to provide food assistance to needy individuals and 

24 families in the State, such as electronic benefits 

25 transfer limited to food purchases, coupons limited 
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1 to food purchases, or direct provision of commod2 ities. 

3 ‘‘(5) DEFINITION OF FOOD ASSISTANCE.—In 

4 this section, the term ‘food assistance’ means assist5 ance that may be used only to obtain food, as de6 fined in section 3(g). 

7 ‘‘(j) AUDITS.—

8 ‘‘(1) REQUIREMENT.—After the close of each 

9 fiscal year, a State shall arrange for an audit of the 

10 expenditures of the State during the program period 

11 from amounts received under this section. 

12 ‘‘(2) INDEPENDENT AUDITOR.—An audit under 

13 this section shall be conducted by an entity that is 

14 independent of any agency administering activities 

15 that receive assistance under this section and be in 

16 accordance with generally accepted auditing prin17 ciples. 

18 ‘‘(3) PAYMENT ACCURACY.—Each annual audit 

19 under this section shall include an audit of payment 

20 accuracy under this section that shall be based on a 

21 statistically valid sample of the caseload in the 

22 State. 

23 ‘‘(4) SUBMISSION.—Not later than 30 days 

24 after the completion of an audit under this section,
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1 the State shall submit a copy of the audit to the 

2 legislature of the State and to the Secretary. 

3 ‘‘(5) REPAYMENT OF AMOUNTS.—Each State 

4 shall repay to the United States any amounts deter5 mined through an audit under this section to have 

6 not been expended in accordance with this section or 

7 to have not been expended in accordance with the 

8 State plan, or the Secretary may offset the amounts 

9 against any other amount paid to the State under 

10 this section. 

11 ‘‘(k) NONDISCRIMINATION.—

12 ‘‘(1) IN GENERAL.—The Secretary shall not 

13 provide financial assistance for any program, 

14 project, or activity under this section if any person 

15 with responsibilities for the operation of the pro16 gram, project, or activity discriminates with respect 

17 to the program, project, or activity because of race, 

18 religion, color, national origin, sex, or disability. 

19 ‘‘(2) ENFORCEMENT.—The powers, remedies, 

20 and procedures set forth in title VI of the Civil 

21 Rights Act of 1964 (42 U.S.C. 2000d et seq.) may 

22 be used by the Secretary to enforce paragraph (1). 

23 ‘‘(l) ALLOTMENTS.—

24 ‘‘(1) DEFINITION OF STATE.—In this section, 

25 the term ’State’ means each of the 50 States, the 
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1 District of Columbia, Guam, and the Virgin Islands 

2 of the United States. 

3 ‘‘(2) STATE ALLOTMENT.—

4 ‘‘(A) IN GENERAL.—Except as provided in 

5 subparagraph (B), from the amounts made 

6 available under section 18 of this Act for each 

7 fiscal year, the Secretary shall allot to each 

8 State participating in the program established 

9 under subsection (a) an amount that is equal to 

10 the sum of—

11 ‘‘(i) the greater of, as determined by 

12 the Secretary—

13 ‘‘(I) the total dollar value of all 

14 benefits issued under the food stamp 

15 program established under this Act by 

16 the State during fiscal year 2003; or 

17 ‘‘(II) the average per fiscal year 

18 of the total dollar value of all benefits 

19 issued under the food stamp program 

20 by the State during each of fiscal 

21 years 2001 through 2003; and 

22 ‘‘(ii) the greater of, as determined by 

23 the Secretary—

24 ‘‘(I) the total amount received by 

25 the State for administrative costs and 
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1 the employment and training program 

2 under subsections (a) and (h), respec3 tively, of section 16 of this Act for fis4 cal year 2003; or 

5 ‘‘(II) the average per fiscal year 

6 of the total amount received by the 

7 State for administrative costs and the 

8 employment and training program 

9 under subsections (a) and (h), respec10 tively, of section 16 of this Act for 

11 each of fiscal years 2001 through 

12 2003. 

13 ‘‘(B) INSUFFICIENT FUNDS.—If the Sec14 retary finds that the total amount of allotments 

15 to which States would otherwise be entitled for 

16 a fiscal year under subparagraph (A) will ex17 ceed the amount of funds that will be made 

18 available to provide the allotments for the fiscal 

19 year, the Secretary shall reduce the allotments 

20 made to States under this subsection, on a pro 

21 rata basis, to the extent necessary to allot 

22 under this subsection a total amount that is 

23 equal to the funds that will be made available.’’. 
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1 TITLE VII—ABSTINENCE 

2 EDUCATION 

3 SEC. 701. 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 ‘‘2002’’ 

7 and inserting ‘‘2008’’. 

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 that would be determined 

19 for the State under section 502(c)(1)(B)(ii) if the 

20 calculation under such section took into consider21 ation only those States that transmitted both such 

22 applications for such fiscal year.’’. 

23 (c) REALLOTMENT OF FUNDS.—Section 510 (42 

24 U.S.C. 710(a)) is amended by adding at the end the fol25 lowing new subsection:
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1 ‘‘(e)(1) With respect to allotments under subsection 

2 (a) for fiscal year 2004 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 required 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 use such excess amounts during such 

14 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 for fiscal years 2004 and succeeding 

4 fiscal years. 

5 TITLE VIII—TRANSITIONAL 

6 MEDICAL ASSISTANCE 

7 SEC. 801. EXTENSION OF MEDICAID TRANSITIONAL MED8 ICAL ASSISTANCE PROGRAM THROUGH FIS9 CAL YEAR 2004. 

10 (a) IN GENERAL.—Section 1925(f ) (42 U.S.C. 

11 1396r–6(f )) is amended by striking ‘‘2002’’ and inserting 

12 ‘‘2004’’. 

13 (b) CONFORMING AMENDMENT.—Section 

14 1902(e)(1)(B) (42 U.S.C. 1396a(e)(1)(B)) is amended by 

15 striking ‘‘September 30, 2002’’ and inserting ‘‘the last 

16 date (if any) on which section 1925 applies under sub17 section (f) of that section’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall take effect October 1, 2003. 

20 SEC. 802. ADJUSTMENT TO PAYMENTS FOR MEDICAID AD21 MINISTRATIVE COSTS TO PREVENT DUPLICA22 TIVE PAYMENTS AND TO FUND EXTENSION 

23 OF TRANSITIONAL MEDICAL ASSISTANCE. 

24 Section 1903 (42 U.S.C. 1396b) is amended—
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1 (1) in subsection (a)(7), by striking ‘‘section 

2 1919(g)(3)(B)’’ and inserting ‘‘subsection (x) and 

3 section 1919(g)(3)(C)’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(x) ADJUSTMENTS TO PAYMENTS FOR ADMINISTRA6 TIVE COSTS TO FUND EXTENSION OF TRANSITIONAL

7 MEDICAL ASSISTANCE.—

8 ‘‘(1) REDUCTIONS IN PAYMENTS FOR ADMINIS9 TRATIVE COSTS.—Effective for each calendar quar10 ter in fiscal year 2004 and fiscal year 2005, the Sec11 retary shall reduce the amount paid under sub12 section (a)(7) to each State by an amount equal to 

13 45 percent for fiscal year 2004, and 80 percent for 

14 fiscal year 2005, of one-quarter of the annualized 

15 amount determined for the medicaid program under 

16 section 16(k)(2)(B) of the Food Stamp Act of 1977 

17 (7 U.S.C. 2025(k)(2)(B)). 

18 ‘‘(2) ALLOCATION OF ADMINISTRATIVE

19 COSTS.—None of the funds or expenditures de20 scribed in section 16(k)(5)(B) of the Food Stamp 

21 Act of 1977 (7 U.S.C. 2025(k)(5)(B)) may be used 

22 to pay for costs—

23 ‘‘(A) eligible for reimbursement under sub24 section (a)(7) (or costs that would have been el-
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1 igible for reimbursement but for this sub2 section); and 

3 ‘‘(B) allocated for reimbursement to the 

4 program under this title under a plan submitted 

5 by a State to the Secretary to allocate adminis6 trative costs for public assistance programs; 

7 except that, for purposes of subparagraph (A), the 

8 reference in clause (iii) of that section to ‘subsection 

9 (a)’ is deemed a reference to subsection (a)(7) and 

10 clause (iv)(II) of that section shall be applied as if 

11 ‘medicaid program’ were substituted for ‘food stamp 

12 program’.’’. 

13 TITLE IX—EFFECTIVE DATE 

14 SEC. 901. EFFECTIVE DATE. 

15 (a) IN GENERAL.—Except as otherwise provided, the 

16 amendments made by this Act shall take effect on the date 

17 of the enactment of this Act. 

18 (b) EXCEPTION.—In the case of a State plan under 

19 part A or D of title IV of the Social Security Act which 

20 the Secretary determines requires State legislation in 

21 order for the plan to meet the additional requirements im22 posed by the amendments made by this Act, the effective 

23 date of the amendments imposing the additional require24 ments shall be 3 months after the first day of the first 

25 calendar quarter beginning after the close of the first reg-
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1 ular session of the State legislature that begins after the 

2 date of the enactment of this Act. For purposes of the 

3 preceding sentence, in the case of a State that has a 2-

4 year legislative session, each year of the session shall be 

5 considered to be a separate regular session of the State 

6 legislature.

Passed the House of Representatives February 13, 

2003. 

Attest: JEFF TRANDAHL, 

Clerk.