II 

Calendar No. 305

108TH CONGRESS 

1ST SESSION H. R. 4

[Report No. 108–162] 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 13, 2003

Received; read twice and referred to the Committee on Finance 

OCTOBER 3, 2003

Reported by Mr. GRASSLEY, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

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,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Personal Responsi5 bility, Work, and Family Promotion Act of 2003’’.
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1 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

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. 

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. 
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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.

1 SEC. 3. REFERENCES. 

2 Except as otherwise expressly provided, wherever in 

3 this Act an amendment or repeal is expressed in terms 
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1 of an amendment to, or repeal of, a section or other provi2 sion, the amendment or repeal shall be considered to be 

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

4 Act. 

5 SEC. 4. FINDINGS. 

6 The Congress makes the following findings: 

7 (1) The Temporary Assistance for Needy Fami8 lies (TANF) Program established by the Personal 

9 Responsibility and Work Opportunity Reconciliation 

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

11 moving families from welfare to work and reducing 

12 child poverty. 

13 (A) There has been a dramatic increase in 

14 the employment of current and former welfare 

15 recipients. The percentage of working recipients 

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

17 continued steady in fiscal years 2000 and 2001. 

18 In fiscal year 2001, 33 percent of adult recipi19 ents were working, compared to less than 7 per20 cent in fiscal year 1992, and 11 percent in fis21 cal year 1996. All States met the overall par22 ticipation rate standard in fiscal year 2001, as 

23 did the District of Columbia and Puerto Rico.

24 (B) Earnings for welfare recipients re25 maining on the rolls have also increased signifi-
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1 cantly, as have earnings for female-headed 

2 households. The increases have been particu3 larly large for the bottom 2 income quintiles, 

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

5 former or present welfare recipients. 

6 (C) Welfare dependency has plummeted. 

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

8 5,008,000 individuals were receiving assistance. 

9 Accordingly, the number of families in the wel10 fare caseload and the number of individuals re11 ceiving cash assistance declined 54 percent and 

12 58 percent, respectively, since the enactment of 

13 TANF. These declines have persisted even as 

14 unemployment rates have increased: unemploy15 ment rates nationwide rose 50 percent, from 

16 3.9 percent in September 2000 to 6 percent in 

17 November 2002, while welfare caseloads contin18 ued to decline. 

19 (D) The child poverty rate continued to de20 cline between 1996 and 2001, falling 20 percent 

21 from 20.5 to 16.3 percent. The 2001 child pov22 erty rate remains at the lowest level since 1979. 

23 Child poverty rates for African-American and 

24 Hispanic children have also fallen dramatically 

25 during the past 6 years. African-American child 
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1 poverty is at the lowest rate on record and His2 panic child poverty is at the lowest level re3 ported in over 20 years. 

4 (E) Despite these gains, States have had 

5 mixed success in fully engaging welfare recipi6 ents in work activities. While all States have 

7 met the overall work participation rates re8 quired by law, in 2001, in an average month, 

only just over 1 9 ⁄3 of all families with an adult 

10 participated in work activities that were count11 able toward the State’s participation rate. Five 

12 jurisdictions failed to meet the more rigorous 2-

13 parent work requirements, and 19 jurisdictions 

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

15 parent requirements, most because they moved 

16 their 2-parent cases to separate State programs 

17 where they are not subject to a penalty for fail18 ing the 2-parent rates. 

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

20 progress in reducing teen pregnancies and births, 

21 slowing increases in nonmarital childbearing, and 

22 improving child support collections and paternity es23 tablishment. 

24 (A) The teen birth rate has fallen continu25 ously since 1991, down a dramatic 22 percent 
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1 by 2000. During the period of 1991–2000, 

2 teenage birth rates fell in all States and the 

3 District of Columbia, Puerto Rico, and the Vir4 gin Islands. Declines also have spanned age, ra5 cial, and ethnic groups. There has been success 

6 in lowering the birth rate for both younger and 

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

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

9 the rate for those 18 and 19 is down 16 per10 cent. Between 1991 and 2000, teen birth rates 

11 declined for all women ages 15–19—white, Afri12 can American, American Indian, Asian or Pa13 cific Islander, and Hispanic women ages 15–19. 

14 The rate for African American teens—until re15 cently the highest—experienced the largest de16 cline, down 31 percent from 1991 to 2000, to 

17 reach the lowest rate ever reported for this 

18 group. Most births to teens are nonmarital; in 

19 2000, about 73 percent of the births to teens 

20 aged 15–19 occurred outside of marriage. 

21 (B) Nonmarital childbearing continued to 

22 increase slightly in 2001, however not at the 

23 sharp rates of increase seen in recent decades. 

24 The birth rate among unmarried women in 

25 2001 was 4 percent lower than its peak reached 
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1 in 1994, while the proportion of births occur2 ring outside of marriage has remained at ap3 proximately 33 percent since 1998. 

4 (C) The negative consequences of out-of5 wedlock birth on the mother, the child, the fam6 ily, and society are well documented. These in7 clude increased likelihood of welfare depend8 ency, increased risks of low birth weight, poor 

9 cognitive development, child abuse and neglect, 

10 and teen parenthood, and decreased likelihood 

11 of having an intact marriage during adulthood. 

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

13 not live with their biological fathers, and 

14 7,100,000 children do not live with their bio15 logical mothers. These facts are attributable 

16 largely to declining marriage rates, increasing 

17 divorce rates, and increasing rates of nonmar18 ital births during the latter part of the 20th 

19 century. 

20 (E) There has been a dramatic rise in co21 habitation as marriages have declined. Only 40 

22 percent of children of cohabiting couples will 

23 see their parents marry. Those who do marry

24 experience a 50 percent higher divorce rate. 

25 Children in single-parent households and cohab-
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1 iting households are at much higher risk of 

2 child abuse than children in intact married and 

3 stepparent families. 

4 (F) Children who live apart from their bio5 logical fathers, on average, are more likely to be 

6 poor, experience educational, health, emotional, 

7 and psychological problems, be victims of child 

8 abuse, engage in criminal behavior, and become 

9 involved with the juvenile justice system than 

10 their peers who live with their married, biologi11 cal mother and father. A child living in a single12 parent family is nearly 5 times as likely to be 

13 poor as a child living in a married-couple fam14 ily. In 2001, in married-couple families, the 

15 child poverty rate was 8 percent, and in house16 holds headed by a single mother, the poverty 

17 rate was 39.3 percent. 

18 (G) Since the enactment of the Personal 

19 Responsibility and Work Opportunity Reconcili20 ation Act of 1996, child support collections 

21 within the child support enforcement system 

22 have grown every year, increasing from 

23 $12,000,000,000 in fiscal year 1996 to nearly 

24 $19,000,000,000 in fiscal year 2001. The num25 ber of paternities established or acknowledged 
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1 in fiscal year 2002 reached an historic high of 

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

3 100 percent increase through in-hospital ac4 knowledgement programs to 790,595 in 2001 

5 from 324,652 in 1996. Child support collections 

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

7 year 2000, significantly more than the almost 

8 4,000,000 cases having a collection in 1996. 

9 (3) The Personal Responsibility and Work Op10 portunity Reconciliation Act of 1996 gave States 

11 great flexibility in the use of Federal funds to de12 velop innovative programs to help families leave wel13 fare and begin employment and to encourage the 

14 formation of 2-parent families. 

15 (A) Total Federal and State TANF ex16 penditures in fiscal year 2001 were 

17 $25,500,000,000, up from $24,000,000,000 in 

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

19 year 1999. This increased spending is attrib20 utable to significant new investments in sup21 portive services in the TANF program, such as 

22 child care and activities to support work. 

23 (B) Since the welfare reform effort began 

24 there has been a dramatic increase in work par25 ticipation (including employment, community 
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1 service, and work experience) among welfare re2 cipients, as well as an unprecedented reduction 

3 in the caseload because recipients have left wel4 fare for work. 

5 (C) States are making policy choices and 

6 investment decisions best suited to the needs of 

7 their citizens. 

8 (i) To expand aid to working families, 

9 all States disregard a portion of a family’s 

10 earned income when determining benefit 

11 levels. 

12 (ii) Most States increased the limits 

13 on countable assets above the former Aid 

14 to Families with Dependent Children 

15 (AFDC) program. Every State has in16 creased the vehicle asset level above the 

17 prior AFDC limit for a family’s primary 

18 automobile. 

19 (iii) States are experimenting with 

20 programs to promote marriage and father 

21 involvement. Over half the States have 

22 eliminated restrictions on 2-parent fami23 lies. Many States use TANF, child sup24 port, or State funds to support community25 based activities to help fathers become 
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1 more involved in their children’s lives or 

2 strengthen relationships between mothers 

3 and fathers. 

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

5 that increasing success in moving families from wel6 fare to work, as well as in promoting healthy mar7 riage and other means of improving child well-being, 

8 are very important Government interests and the 

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

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

11 to serve these ends. 

12 TITLE I—TANF 

13 SEC. 101. PURPOSES. 

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

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

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

17 well-being by increasing’’; 

18 (2) in paragraph (1), by inserting ‘‘and serv19 ices’’ after ‘‘assistance’’; 

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

21 government benefits’’ and inserting ‘‘families on gov22 ernment benefits and reduce poverty’’; and

23 (4) in paragraph (4), by striking ‘‘two-parent 

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

25 families, and encourage responsible fatherhood’’. 
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1 SEC. 102. FAMILY ASSISTANCE GRANTS. 

2 (a) EXTENSION OF AUTHORITY.—Section 

3 403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is amended—

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

5 2001, and 2002’’ and inserting ‘‘2004 through 

6 2008’’; and 

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

8 fiscal year’’ before the period. 

9 (b) STATE FAMILY ASSISTANCE GRANT.—Section 

10 403(a)(1) (42 U.S.C. 603(a)(1)) is amended by striking 

11 subparagraphs (B) through (E) and inserting the fol12 lowing: 

13 ‘‘(B) STATE FAMILY ASSISTANCE

14 GRANT.—The State family assistance grant 

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

16 amount that bears the same ratio to the 

17 amount specified in subparagraph (C) of this 

18 paragraph as the amount required to be paid to 

19 the State under this paragraph for fiscal year 

20 2002 (determined without regard to any reduc21 tion pursuant to section 409 or 412(a)(1)) 

22 bears to the total amount required to be paid 

23 under this paragraph for fiscal year 2002 (as so 

24 determined). 

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

26 in the Treasury of the United States not other-
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1 wise appropriated, there are appropriated for 

2 each of fiscal years 2004 through 2008 

3 $16,566,542,000 for grants under this para4 graph.’’. 

5 (c) MATCHING GRANTS FOR THE TERRITORIES.—

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

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

8 through 2008’’. 

9 SEC. 103. PROMOTION OF FAMILY FORMATION AND 

10 HEALTHY MARRIAGE. 

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

12 602(a)(1)(A)) is amended by adding at the end the fol13 lowing: 

14 ‘‘(vii) Encourage equitable treatment 

15 of married, 2-parent families under the 

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

17 (b) HEALTHY MARRIAGE PROMOTION GRANTS; RE18 PEAL OF BONUS FOR REDUCTION OF ILLEGITIMACY

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

20 amended to read as follows: 

21 ‘‘(2) HEALTHY MARRIAGE PROMOTION

22 GRANTS.—

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

24 award competitive grants to States, territories, 

25 and tribal organizations for not more than 50 
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1 percent of the cost of developing and imple2 menting innovative programs to promote and 

3 support healthy, married, 2-parent families. 

4 ‘‘(B) HEALTHY MARRIAGE PROMOTION AC5 TIVITIES.—Funds provided under subparagraph 

6 (A) shall be used to support any of the fol7 lowing programs or activities: 

8 ‘‘(i) Public advertising campaigns on 

9 the value of marriage and the skills needed 

10 to increase marital stability and health. 

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

12 value of marriage, relationship skills, and 

13 budgeting. 

14 ‘‘(iii) Marriage education, marriage 

15 skills, and relationship skills programs, 

16 that may include parenting skills, financial 

17 management, conflict resolution, and job 

18 and career advancement, for non-married 

19 pregnant women and non-married expect20 ant fathers. 

21 ‘‘(iv) Pre-marital education and mar22 riage skills training for engaged couples 

23 and for couples or individuals interested in 

24 marriage. 
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1 ‘‘(v) Marriage enhancement and mar2 riage skills training programs for married 

3 couples. 

4 ‘‘(vi) Divorce reduction programs that 

5 teach relationship skills. 

6 ‘‘(vii) Marriage mentoring programs 

7 which use married couples as role models 

8 and mentors in at-risk communities. 

9 ‘‘(viii) Programs to reduce the dis10 incentives to marriage in means-tested aid 

11 programs, if offered in conjunction with 

12 any activity described in this subpara13 graph. 

14 ‘‘(C) APPROPRIATION.—

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

16 in the Treasury of the United States not 

17 otherwise appropriated, there are appro18 priated for each of fiscal years 2003 

19 through 2008 $100,000,000 for grants 

20 under this paragraph.

21 ‘‘(ii) EXTENDED AVAILABILITY OF

22 FY2003 FUNDS.—Funds appropriated 

23 under clause (i) for fiscal year 2003 shall 

24 remain available to the Secretary through 
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1 fiscal year 2004, for grants under this 

2 paragraph for fiscal year 2003.’’. 

3 (c) COUNTING OF SPENDING ON NON-ELIGIBLE

4 FAMILIES TO PREVENT AND REDUCE INCIDENCE OF

5 OUT-OF-WEDLOCK BIRTHS, ENCOURAGE FORMATION

6 AND MAINTENANCE OF HEALTHY, 2-PARENT MARRIED

7 FAMILIES, OR ENCOURAGE RESPONSIBLE FATHER8 HOOD.—Section 409(a)(7)(B)(i) (42 U.S.C. 

9 609(a)(7)(B)(i)) is amended by adding at the end the fol10 lowing: 

11 ‘‘(V) COUNTING OF SPENDING

12 ON NON-ELIGIBLE FAMILIES TO PRE13 VENT AND REDUCE INCIDENCE OF

14 OUT-OF-WEDLOCK BIRTHS, ENCOUR15 AGE FORMATION AND MAINTENANCE

16 OF HEALTHY, 2-PARENT MARRIED

17 FAMILIES, OR ENCOURAGE RESPON18 SIBLE FATHERHOOD.—The term 

19 ‘qualified State expenditures’ includes 

20 the total expenditures by the State 

21 during the fiscal year under all State 

22 programs for a purpose described in 

23 paragraph (3) or (4) of section 

24 401(a).’’. 
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1 SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION IN2 CREASES IN CERTAIN STATES. 

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

4 amended—

5 (1) in the subparagraph heading, by striking 

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

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

8 and inserting ‘‘each of fiscal years 2004 through 

9 2007’’; 

10 (3) in clause (ii), by striking ‘‘2002’’ and in11 serting ‘‘2007’’; and 

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

13 2002’’ and inserting ‘‘each of fiscal years 2004 

14 through 2007’’. 

15 SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVE16 MENT. 

17 (a) REALLOCATION OF FUNDING.—

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

19 U.S.C. 603(a)(4)) is amended—

20 (A) in the paragraph heading, by striking 

21 ‘‘HIGH PERFORMANCE STATES’’ and inserting 

22 ‘‘EMPLOYMENT ACHIEVEMENT’’; 

23 (B) in subparagraph (D)(ii)—

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

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

26 ‘‘(other than 2003) equals $200,000,000, 
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1 and for bonus year 2003 equals 

2 $100,000,000’’; and 

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

4 ‘‘$1,000,000,000’’ and inserting 

5 ‘‘$900,000,000’’; and 

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

7 ‘‘$1,000,000,000’’ and inserting 

8 ‘‘$900,000,000’’. 

9 (2) EFFECTIVE DATE.—The amendments made 

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

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

12 whichever is earlier. 

13 (b) BONUS TO REWARD EMPLOYMENT ACHIEVE14 MENT.—

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

16 U.S.C. 603(a)(4)) is amended by striking subpara17 graphs (A) through (F) and inserting the following: 

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

19 make a grant pursuant to this paragraph to 

20 each State for each bonus year for which the 

21 State is an employment achievement State. 

22 ‘‘(B) AMOUNT OF GRANT.—

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

24 (ii) of this subparagraph, the Secretary 

25 shall determine the amount of the grant 
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1 payable under this paragraph to an em2 ployment achievement State for a bonus 

3 year, which shall be based on the perform4 ance of the State as determined under sub5 paragraph (D)(i) for the fiscal year that 

6 immediately precedes the bonus year. 

7 ‘‘(ii) LIMITATION.—The amount pay8 able to a State under this paragraph for a 

9 bonus year shall not exceed 5 percent of 

10 the State family assistance grant. 

11 ‘‘(C) FORMULA FOR MEASURING STATE

12 PERFORMANCE.—

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

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

15 Secretary, in consultation with the States, 

16 shall develop a formula for measuring 

17 State performance in operating the State 

18 program funded under this part so as to 

19 achieve the goals of employment entry, job 

20 retention, and increased earnings from em21 ployment for families receiving assistance

22 under the program, as measured on an ab23 solute basis and on the basis of improve24 ment in State performance. 
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1 ‘‘(ii) SPECIAL RULE FOR BONUS YEAR

2 2004.—For the purposes of awarding a 

3 bonus under this paragraph for bonus year 

4 2004, the Secretary may measure the per5 formance of a State in fiscal year 2003 

6 using the job entry rate, job retention rate, 

7 and earnings gain rate components of the 

8 formula developed under section 

9 403(a)(4)(C) as in effect immediately be10 fore the effective date of this paragraph. 

11 ‘‘(D) DETERMINATION OF STATE PER12 FORMANCE.—For each bonus year, the Sec13 retary shall—

14 ‘‘(i) use the formula developed under 

15 subparagraph (C) to determine the per16 formance of each eligible State for the fis17 cal year that precedes the bonus year; and 

18 ‘‘(ii) prescribe performance standards 

19 in such a manner so as to ensure that—

20 ‘‘(I) the average annual total 

21 amount of grants to be made under 

22 this paragraph for each bonus year 

23 equals $100,000,000; and 
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1 ‘‘(II) the total amount of grants 

2 to be made under this paragraph for 

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

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

5 ‘‘(i) BONUS YEAR.—The term ‘bonus 

6 year’ means each of fiscal years 2004 

7 through 2009. 

8 ‘‘(ii) EMPLOYMENT ACHIEVEMENT

9 STATE.—The term ‘employment achieve10 ment State’ means, with respect to a bonus 

11 year, an eligible State whose performance 

12 determined pursuant to subparagraph 

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

14 bonus year equals or exceeds the perform15 ance standards prescribed under subpara16 graph (D)(ii) for such preceding fiscal 

17 year. 

18 ‘‘(F) 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 fiscal years 2004 through 2009 

23 $600,000,000 for grants under this para24 graph. 
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1 ‘‘(ii) EXTENDED AVAILABILITY OF

2 PRIOR APPROPRIATION.—Amounts appro3 priated under section 403(a)(4)(F) of the 

4 Social Security Act (as in effect before the 

5 date of the enactment of this clause) that 

6 have not been expended as of such date of 

7 enactment shall remain available through 

8 fiscal year 2004 for grants under section 

9 403(a)(4) of such Act (as in effect before 

10 such date of enactment) for bonus year 

11 2003. 

12 ‘‘(G) GRANTS FOR TRIBAL ORGANIZA13 TIONS.—This paragraph shall apply with re14 spect to tribal organizations in the same man15 ner in which this paragraph applies with re16 spect to States. In determining the criteria 

17 under which to make grants to tribal organiza18 tions under this paragraph, the Secretary shall 

19 consult with tribal organizations.’’. 

20 (2) EFFECTIVE DATE.—The amendment made 

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

22 of the Social Security Act as inserted by the amend23 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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•HR 4 RS 

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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•HR 4 RS 

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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•HR 4 RS 

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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•HR 4 RS 

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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•HR 4 RS 

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 RS 

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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•HR 4 RS 

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-
35

•HR 4 RS 

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: 
36

•HR 4 RS 

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

•HR 4 RS 

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 
38

•HR 4 RS 

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

•HR 4 RS 

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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•HR 4 RS 

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
41

•HR 4 RS 

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 RS 

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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•HR 4 RS 

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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•HR 4 RS 

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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•HR 4 RS 

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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•HR 4 RS 

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-
48

•HR 4 RS 

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
49

•HR 4 RS 

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.

7 SECTION 1. SHORT TITLE. 

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

9 and Individual Development for Everyone Act’’ or the 

10 ‘‘PRIDE Act’’. 

11 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

TITLE I—TANF 

Sec. 101. State plan. 

Sec. 102. Family assistance grants. 

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

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

Sec. 105. Bonus to reward employment achievement. 

Sec. 106. Contingency fund. 

Sec. 107. Use of funds. 

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

Sec. 109. Work participation requirements. 

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

other prohibitions and requirements. 

Sec. 111. Penalties. 

Sec. 112. Data collection and reporting. 

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

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

Sec. 115. Study by the Census Bureau. 

Sec. 116. Funding for child care. 

Sec. 117. Definitions. 

Sec. 118. Responsible fatherhood program. 

Sec. 119. Additional grants. 

Sec. 120. Technical corrections. 
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TITLE II—ABSTINENCE EDUCATION 

Sec. 201. Extension of abstinence education program. 

TITLE III—CHILD SUPPORT 

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

receiving certain welfare benefits. 

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

receiving TANF. 

Sec. 303. Report on undistributed child support payments. 

Sec. 304. Use of new hire information to assist in administration of unemployment compensation programs. 

Sec. 305. Decrease in amount of child support arrearage triggering passport denial. 

Sec. 306. Use of tax refund intercept program to collect past-due child support 

on behalf of children who are not minors. 

Sec. 307. Garnishment of compensation paid to veterans for service-connected disabilities in order to enforce obligations. 

Sec. 308. Improving Federal debt collection practices. 

Sec. 309. Maintenance of technical assistance funding. 

Sec. 310. Maintenance of Federal parent locator service funding. 

Sec. 311. Identification and seizure of assets held by multistate financial institutions. 

Sec. 312. Information comparisons with insurance data. 

Sec. 313. Tribal access to the Federal parent locator service. 

Sec. 314. Reimbursement of Secretary’s costs of information comparisons and disclosure for enforcement of obligations on Higher Education Act 

loans and grants. 

Sec. 315. Technical amendment relating to cooperative agreements between States 

and Indian tribes. 

Sec. 316. Claims upon longshore and harbor workers’ compensation for child support. 

Sec. 317. State option to use statewide automated data processing and information retrieval system for interstate cases. 

Sec. 318. Interception of gambling winnings for child support. 

Sec. 319. State law requirement concerning the Uniform Interstate Family Support Act (UIFSA). 

Sec. 320. Grants to States for access and visitation programs. 

Sec. 321. Timing of corrective action year for State noncompliance with child 

support enforcement program requirements. 

TITLE IV—CHILD WELFARE 

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

Sec. 402. Removal of Commonwealth of Puerto Rico foster care funds from limitation on payments. 

Sec. 403. Technical correction. 

TITLE V—SUPPLEMENTAL SECURITY INCOME 

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

TITLE VI—TRANSITIONAL MEDICAL ASSISTANCE 

Sec. 601. Extension and simplification of the transitional medical assistance program (TMA). 
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Sec. 602. Prohibition against covering childless adults with SCHIP funds. 

TITLE VII—EFFECTIVE DATE 

Sec. 701. Effective date.

1 SEC. 3. REFERENCES. 

2 Except as otherwise expressly provided, wherever in 

3 this Act an amendment or repeal is expressed in terms of 

4 an amendment to, or repeal of, a section or other provision, 

5 the amendment or repeal shall be considered to be made 

6 to a section or other provision of the Social Security Act. 

7 TITLE I—TANF 

8 SEC. 101. STATE PLAN. 

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

10 (42 U.S.C. 602(a)) is amended—

11 (1) in paragraph (1)—

12 (A) in subparagraph (A)—

13 (i) by redesignating clause (vi) as 

14 clause (vii); and 

15 (ii) by striking clause (v) and insert16 ing the following: 

17 ‘‘(v) Establish specific measurable per18 formance objectives for pursuing the pur19 poses of the program under this part as de20 scribed in section 401(a), including by—

21 ‘‘(I) establishing objectives con22 sistent (as determined by the State) 

23 with the criteria used by the Secretary 
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1 in establishing performance targets 

2 under section 403(a)(4)(C) (including 

3 with respect to workplace attachment 

4 and advancement), and with such ad5 ditional criteria related to other pur6 poses of the program under this part 

7 as described in section 401(a) as the 

8 Secretary, in consultation with the Na9 tional Governors’ Association and the 

10 American Public Human Services As11 sociation, shall establish; and 

12 ‘‘(II) describing the methodology 

13 that the State will use to measure 

14 State performance in relation to each 

15 such objective. 

16 ‘‘(vi) Describe any strategies and pro17 grams the State plans to use to address—

18 ‘‘(I) employment retention and 

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

21 placement into high-demand jobs, and 

22 whether the jobs are identified using 

23 labor market information; 

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

2 noncompliant families, and for clients 

3 with special problems; and 

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

7 program are provided through the One8 Stop delivery system created under the 

9 Workforce Investment Act of 1998, and 

10 the extent to which former recipients of 

11 such assistance have access to addi12 tional core, intensive, or training serv13 ices funded through such Act.’’; and 

14 (B) in subparagraph (B)—

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

16 (ii) by redesignating clauses (ii) and 

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

18 and 

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

20 so redesignated by clause (ii)) the following: 

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

22 strategies or programs to engage faith-based 

23 organizations in the provision of services 

24 funded under this part, or that otherwise re25 late to section 104 of the Personal Responsi-
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1 bility and Work Opportunity Reconciliation 

2 Act of 1996, the document shall describe 

3 such strategies and programs. 

4 ‘‘(iv) The document shall describe 

5 strategies to improve program management 

6 and performance. 

7 ‘‘(v) The document shall include a per8 formance report which details State 

9 progress toward full engagement for all 

10 adult or minor child head of household re11 cipients of assistance.’’; 

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

13 after ‘‘that local’’; and 

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

15 ‘‘(8) CERTIFICATION OF CONSULTATION ON PRO16 VISION OF TRANSPORTATION AID.—In the case of a 

17 State that provides transportation aid under the 

18 State program, a certification by the chief executive 

19 officer of the State that State and local transportation 

20 agencies and planning bodies have been consulted in 

21 the development of the plan.’’. 

22 (b) PROCEDURES FOR SUBMITTING AND AMENDING

23 STATE PLANS.—

24 (1) IN GENERAL.—Subsection (b) of section 402 

25 (42 U.S.C. 602(b)) is amended to read as follows: 
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1 ‘‘(b) PROCEDURES FOR SUBMITTING AND AMENDING

2 STATE PLANS.—

3 ‘‘(1) STANDARD STATE PLAN FORMAT.—The Sec4 retary shall, after notice and public comment, develop 

5 a proposed Standard State Plan Form to be used by 

6 States under subsection (a). Such form shall be final7 ized by the Secretary for use by States not later than 

8 9 months after the date of enactment of the Personal 

9 Responsibility and Individual Development for Ev10 eryone Act.

11 ‘‘(2) REQUIREMENT FOR COMPLETED PLAN

12 USING STANDARD STATE PLAN FORMAT BY FISCAL

13 YEAR 2005.—Notwithstanding any other provision of 

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

15 using the Standard State Plan Form developed under 

16 paragraph (1), not later than October 1, 2004. 

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

18 submitting a State plan to the Secretary under this 

19 section, the State shall—

20 ‘‘(A) make the proposed State plan avail21 able to the public through an appropriate State 

22 maintained Internet website and through other 

23 means as the State determines appropriate; 

24 ‘‘(B) allow for a reasonable public comment 

25 period of not less than 45 days; and 
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1 ‘‘(C) make comments received concerning 

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

3 summary of the comments received available to 

4 the public through such website and through 

5 other means as the State determines appropriate. 

6 ‘‘(4) PUBLIC AVAILABILITY OF STATE PLAN.—A 

7 State shall ensure that the State plan that is in effect 

8 for any fiscal year is available to the public through 

9 an appropriate State maintained Internet website 

10 and through other means as the State determines ap11 propriate. 

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

13 file an amendment to the State plan with the Sec14 retary if the State determines that there has been a 

15 material change in any information required to be 

16 included in the State plan or any other information 

17 that the State has included in the plan, including 

18 substantial changes in the use of funding. Prior to 

19 submitting an amendment to the State plan to the 

20 Secretary, the State shall—

21 ‘‘(A) make the proposed amendment avail22 able to the public as provided for in paragraph 

23 (3)(A); 

24 ‘‘(B) allow for a reasonable public comment 

25 period of not less than 45 days; and 
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1 ‘‘(C) make the comments available as pro2 vided for in paragraph (3)(C).’’. 

3 (2) CONFORMING AMENDMENT.—Section 402 (42 

4 U.S.C. 602) is amended by striking subsection (c). 

5 (c) CONSULTATION WITH STATE REGARDING PLAN

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

7 (42 U.S.C. 612(b)(1)) is amended—

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

9 the end; 

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

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

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

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

14 in which the tribe is located has been consulted 

15 regarding the plan and its design.’’. 

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

17 U.S.C. 613) is amended by adding at the end the following: 

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

19 in consultation with the States, shall develop uniform per20 formance measures designed to assess the degree of effective21 ness, and the degree of improvement, of State programs 

22 funded under this part in accomplishing the purposes of 

23 this part.’’. 

24 (e) ANNUAL RANKING OF STATES.—Section 413(d)(1) 

25 (42 U.S.C. 613(d)(1)) is amended to read as follows: 
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1 ‘‘(1) ANNUAL RANKING OF STATES.—

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

3 rank annually the States to which grants are 

4 paid under section 403 in the order of their suc5 cess in—

6 ‘‘(i) placing recipients of assistance 

7 under the State program funded under this 

8 part into private sector jobs; 

9 ‘‘(ii) the success of the recipients in re10 taining employment; 

11 ‘‘(iii) the ability of the recipients to in12 crease their wages; 

13 ‘‘(iv) the degree to which recipients 

14 have workplace attachment and advance15 ment; 

16 ‘‘(v) reducing the overall welfare case17 load; and 

18 ‘‘(vi) when a practicable method for 

19 calculating this information becomes avail20 able, diverting individuals from formally 

21 applying to the State program and receiv22 ing assistance. 

23 ‘‘(B) CONSIDERATION OF OTHER FAC24 TORS.—In ranking States under this paragraph, 

25 the Secretary shall take into account the average 
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1 number of minor children living at home in fam2 ilies in the State that have incomes below the 

3 poverty line and the amount of funding provided 

4 each State under this part for such families.’’. 

5 SEC. 102. FAMILY ASSISTANCE GRANTS. 

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

7 (42 U.S.C. 603(a)(1)(A)), as amended by section 3(a) of 

8 the Welfare Reform Extension Act of 2003 (Public Law 

9 108–040, 117 Stat. 836), is amended—

10 (1) in subparagraph (A)—

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

12 2000, 2001, 2002, and 2003’’ and inserting 

13 ‘‘2004 through 2008’’; and 

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

15 the fiscal year’’ before the period; and 

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

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

18 and inserting ‘‘for each of fiscal years 2004 through 

19 2008, $16,566,542,000 for grants under this para20 graph.’’. 

21 (b) MATCHING GRANTS FOR THE TERRITORIES.—Sec22 tion 1108(b)(2) (42 U.S.C. 1308(b)(2)), as amended by sec23 tion 3(b) of the Welfare Reform Extension Act of 2003 (Pub24 lic Law 108–040, 117 Stat. 836), is amended by striking 

25 ‘‘1997 through 2003’’ and inserting ‘‘2004 through 2008’’. 
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1 SEC. 103. PROMOTION OF FAMILY FORMATION AND 

2 HEALTHY MARRIAGE. 

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

4 602(a)(1)(A)), as amended by section 101(a), is amended 

5 by adding at the end the following: 

6 ‘‘(viii) Encourage equitable treatment 

7 of healthy 2-parent married families under 

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

9 (b) HEALTHY MARRIAGE PROMOTION GRANTS; RE10 PEAL OF BONUS FOR REDUCTION OF ILLEGITIMACY

11 RATIO.—Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amend12 ed to read as follows: 

13 ‘‘(2) HEALTHY MARRIAGE PROMOTION

14 GRANTS.—

15 ‘‘(A) AUTHORITY.—

16 ‘‘(i) IN GENERAL.—The Secretary shall 

17 award competitive grants to States, terri18 tories, and Indian tribes and tribal organi19 zations for not more than 50 percent of the 

20 cost of developing and implementing inno21 vative programs to promote and support 

22 healthy 2-parent married families. 

23 ‘‘(ii) USE OF OTHER TANF FUNDS.—A 

24 State or Indian tribe with an approved 

25 tribal family assistance plan may use funds 

26 provided under other grants made under 
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1 this part for all or part of the expenditures 

2 incurred for the remainder of the costs de3 scribed in clause (i). In the case of a State, 

4 any such funds expended shall not be con5 sidered qualified State expenditures for pur6 poses of section 409(a)(7). 

7 ‘‘(B) HEALTHY MARRIAGE PROMOTION AC8 TIVITIES.—Funds provided under subparagraph 

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

10 programs or activities: 

11 ‘‘(i) Public advertising campaigns on 

12 the value of marriage and the skills needed 

13 to increase marital stability and health. 

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

15 value of marriage, relationship skills, and 

16 budgeting. 

17 ‘‘(iii) Marriage education, marriage 

18 skills, and relationship skills programs, that 

19 may include parenting skills, financial 

20 management, conflict resolution, and job 

21 and career advancement, for non-married 

22 pregnant women, non-married expectant fa23 thers, and non-married recent parents. 

24 ‘‘(iv) Pre-marital education and mar25 riage skills training for engaged couples and 
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1 for couples or individuals interested in 

2 marriage. 

3 ‘‘(v) Marriage enhancement and mar4 riage skills training programs for married 

5 couples. 

6 ‘‘(vi) Divorce reduction programs that 

7 teach relationship skills. 

8 ‘‘(vii) Marriage mentoring programs 

9 which use married couples as role models 

10 and mentors. 

11 ‘‘(viii) Programs to reduce the dis12 incentives to marriage in means-tested aid 

13 programs, if offered in conjunction with 

14 any activity described in this subpara15 graph. 

16 ‘‘(C) VOLUNTARY PARTICIPATION.—Partici17 pation in programs or activities described in 

18 any of clauses (iii) through (vii) shall be vol19 untary. 

20 ‘‘(D) GENERAL RULES GOVERNING USE OF

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

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

23 a grant made under this paragraph. 

24 ‘‘(E) REQUIREMENTS FOR RECEIPT OF

25 FUNDS.—A State, territory, or Indian tribe or 
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1 tribal organization may not be awarded a grant 

2 under this paragraph unless the State, territory, 

3 Indian tribe or tribal organization, as a condi4 tion of receiving funds under such a grant—

5 ‘‘(i) consults with experts in domestic 

6 violence or with relevant community domes7 tic violence coalitions in developing such 

8 programs or activities; and 

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

10 grant under this paragraph—

11 ‘‘(I) how the programs or activi12 ties proposed to be conducted will ad13 dress, as appropriate, issues of domes14 tic violence; and 

15 ‘‘(II) what the State, territory, or 

16 Indian tribe or tribal organization, 

17 will do, to the extent relevant, to en18 sure that participation in such pro19 grams or activities is voluntary, and to 

20 inform potential participants that 

21 their involvement is voluntary. 

22 ‘‘(F) APPROPRIATION.—

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

24 in the Treasury of the United States not 

25 otherwise appropriated, there are appro-
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1 priated for each of fiscal years 2004 through 

2 2008, $100,000,000 for grants under this 

3 paragraph.

4 ‘‘(ii) EXTENDED AVAILABILITY OF

5 FUNDS.—

6 ‘‘(I) IN GENERAL.—Funds appro7 priated under clause (i) for each of fis8 cal years 2004 through 2008 shall re9 main available to the Secretary until 

10 expended. 

11 ‘‘(II) AUTHORITY FOR GRANT RE12 CIPIENTS.—A State, territory, or In13 dian tribe or tribal organization may 

14 use funds made available under a 

15 grant awarded under this paragraph 

16 without fiscal year limitation pursu17 ant to the terms of the grant.’’. 

18 (c) COUNTING OF SPENDING ON NON-ELIGIBLE FAMI19 LIES TO PREVENT AND REDUCE INCIDENCE OF OUT-OF20 WEDLOCK BIRTHS, ENCOURAGE FORMATION AND MAINTE21 NANCE OF HEALTHY 2-PARENT MARRIED FAMILIES, OR

22 ENCOURAGE RESPONSIBLE FATHERHOOD.—Section 

23 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is amended by 

24 adding at the end the following: 
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1 ‘‘(V) COUNTING OF SPENDING ON

2 NON-ELIGIBLE FAMILIES TO PREVENT

3 AND REDUCE INCIDENCE OF OUT-OF4 WEDLOCK BIRTHS, ENCOURAGE FORMA5 TION AND MAINTENANCE OF HEALTHY

6 2-PARENT MARRIED FAMILIES, OR EN7 COURAGE RESPONSIBLE FATHER8 HOOD.—Subject to subclauses (II) and 

9 (III), the term ‘qualified State expend10 itures’ includes the total expenditures 

11 by the State during the fiscal year 

12 under all State programs for a purpose 

13 described in paragraph (3) or (4) of 

14 section 401(a).’’. 

15 (d) PURPOSES.—Section 401(a)(4) (42 U.S.C. 

16 601(a)(4)) is amended by striking ‘‘two-parent families’’ 

17 and inserting ‘‘healthy 2-parent married families, and en18 courage responsible fatherhood’’. 

19 SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION IN20 CREASES IN CERTAIN STATES. 

21 Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)), as 

22 amended by section 3(d) of the Welfare Reform Extension 

23 Act of 2003 (Public Law 108–040), 117 Stat. 837), is 

24 amended—
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1 (1) in clause (i), by striking ‘‘2002 and 2003’’ 

2 and inserting ‘‘2004 through 2007’’; 

3 (2) in clause (ii), by striking ‘‘2003’’ and insert4 ing ‘‘2007’’; and 

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

6 and inserting ‘‘2004 through 2007’’. 

7 SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT. 

8 (a) BONUS TO REWARD EMPLOYMENT ACHIEVE9 MENT.—Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amend10 ed to read as follows: 

11 ‘‘(4) BONUS TO REWARD EMPLOYMENT ACHIEVE12 MENT.—

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

14 make a grant pursuant to this paragraph to 

15 each State for each bonus year for which the 

16 State is an employment achievement State. 

17 ‘‘(B) AMOUNT OF GRANT.—

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

19 (ii), the Secretary shall determine the 

20 amount of the grant payable under this 

21 paragraph to an employment achievement 

22 State for a bonus year, which shall be based 

23 on the performance of the State as deter24 mined under subparagraph (D)(i) for the 
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1 fiscal year that immediately precedes the 

2 bonus year. 

3 ‘‘(ii) LIMITATION.—The amount pay4 able to a State under this paragraph for a 

5 bonus year shall not exceed 5 percent of the 

6 State family assistance grant. 

7 ‘‘(C) FORMULA FOR MEASURING STATE PER8 FORMANCE.—

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

10 (ii), not later than October 1, 2004, the Sec11 retary, in consultation with the States, shall 

12 develop a formula for measuring State per13 formance in operating the State program 

14 funded under this part so as to achieve the 

15 goals of employment entry, job retention, 

16 increased earnings from employment, and 

17 workplace attachment and advancement for 

18 families receiving assistance under the pro19 gram, as measured on an absolute basis and 

20 on the basis of improvement in State per21 formance. 

22 ‘‘(ii) SPECIAL RULE FOR BONUS YEARS

23 2004 AND 2005.—For the purposes of award24 ing a bonus under this paragraph for bonus 

25 year 2004 or 2005, the Secretary may 
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1 measure the performance of a State in fiscal 

2 year 2003 or 2004 (as the case may be) 

3 using the job entry rate, job retention rate, 

4 and earnings gain rate components of the 

5 formula developed under section 

6 403(a)(4)(C) as in effect immediately before 

7 the effective date of this paragraph. 

8 ‘‘(D) DETERMINATION OF STATE PERFORM9 ANCE.—For each bonus year, the Secretary 

10 shall—

11 ‘‘(i) use the formula developed under 

12 subparagraph (C) to determine the perform13 ance of each eligible State for the fiscal year 

14 that precedes the bonus year; and 

15 ‘‘(ii) prescribe performance standards 

16 in such a manner so as to ensure that—

17 ‘‘(I) the average annual total 

18 amount of grants to be made under 

19 this paragraph for each bonus year 

20 equals $100,000,000; and 

21 ‘‘(II) the total amount of grants to 

22 be made under this paragraph for all 

23 bonus years equals $600,000,000. 

24 ‘‘(E) DEFINITIONS.—In this paragraph: 
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1 ‘‘(i) BONUS YEAR.—The term ‘bonus 

2 year’ means each of fiscal years 2004 

3 through 2009. 

4 ‘‘(ii) EMPLOYMENT ACHIEVEMENT

5 STATE.—The term ‘employment achievement 

6 State’ means, with respect to a bonus year, 

7 an eligible State whose performance deter8 mined pursuant to subparagraph (D)(i) for 

9 the fiscal year preceding the bonus year 

10 equals or exceeds the performance standards 

11 prescribed under subparagraph (D)(ii) for 

12 such preceding fiscal year. 

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

14 in the Treasury of the United States not other15 wise appropriated, there are appropriated for the 

16 period of fiscal years 2004 through 2009, 

17 $600,000,000 for grants under this paragraph. 

18 ‘‘(G) GRANTS FOR TRIBAL ORGANIZA19 TIONS.—This paragraph shall apply with respect 

20 to tribal organizations in the same manner in 

21 which this paragraph applies with respect to 

22 States. In determining the criteria under which 

23 to make grants to tribal organizations under this 

24 paragraph, the Secretary shall consult with trib25 al organizations.’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by sub2 section (a) shall take effect on October 1, 2003. 

3 SEC. 106. CONTINGENCY FUND. 

4 (a) CONTINGENCY FUNDING AVAILABLE TO NEEDY

5 STATES.—Section 403(b) (42 U.S.C. 603(b)) is amended—

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

7 inserting the following: 

8 ‘‘(1) CONTINGENCY FUND GRANTS.—

9 ‘‘(A) PAYMENTS.—Subject to subparagraph 

10 (C), and out of funds appropriated under sub11 paragraph (E), each State shall receive a contin12 gency fund grant for each eligible month in 

13 which the State is a needy State under para14 graph (3). 

15 ‘‘(B) MONTHLY CONTINGENCY FUND GRANT

16 AMOUNT.—For each eligible month in which a 

17 State is a needy State, the State shall receive a 

18 contingency fund grant equal to the product of—

19 ‘‘(i) the applicable percentage (as de20 fined under subparagraph (D)(i)) of the ap21 plicable benefit level (as defined in subpara22 graph (D)(ii)); and 

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

24 number of families that received assistance 

25 under the State program funded under this 
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1 part in the most recently concluded 3-month 

2 period for which data are available from the 

3 State exceeds a 5-percent increase in the 

4 number of such families in the cor5 responding 3-month period in either of the 

6 2 most recent preceding fiscal years and 

7 that was due, in large measure, to economic 

8 conditions rather than State policy changes. 

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

10 to a single State under subparagraph (A) during 

11 a fiscal year shall not exceed the amount equal 

12 to 10 percent of the State family assistance grant 

13 (as defined under subparagraph (B) of subsection 

14 (a)(1)). 

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

16 ‘‘(i) APPLICABLE PERCENTAGE.—The 

17 term ‘applicable percentage’ means the Fed18 eral medical assistance percentage for the 

19 State (as defined in section 1905(b)). 

20 ‘‘(ii) APPLICABLE BENEFIT LEVEL.—

21 ‘‘(I) IN GENERAL.—Subject to 

22 subclause (II), the term ‘applicable 

23 benefit level’ means the amount equal 

24 to the maximum cash assistance grant 

25 for a family consisting of 3 individuals 
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1 under the State program funded under 

2 this part. 

3 ‘‘(II) RULE FOR STATES WITH

4 MORE THAN 1 MAXIMUM LEVEL.—In 

5 the case of a State that has more than 

6 1 maximum cash assistance grant level 

7 for families consisting of 3 individuals, 

8 the basic assistance cost shall be the 

9 amount equal to the maximum cash 

10 assistance grant level applicable to the 

11 largest number of families consisting of 

12 3 individuals receiving assistance 

13 under the State program funded under 

14 this part. 

15 ‘‘(E) APPROPRIATION.—Out of any money 

16 in the Treasury of the United States not other17 wise appropriated, there is appropriated for the 

18 period of fiscal years 2004 through 2008, such 

19 sums as are necessary for making contingency 

20 fund grants under this subsection in a total 

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

22 (2) by redesignating paragraph (4) as para23 graph (2); and 

24 (3) in paragraph (2), as so redesignated—
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1 (A) by striking ‘‘(3)(A)’’ and inserting 

2 ‘‘(1)’’; and 

3 (B) by striking ‘‘2-month period that begins 

4 with any’’ and inserting ‘‘fiscal year quarter 

5 that includes a’’. 

6 (b) MODIFICATION OF DEFINITION OF NEEDY

7 STATE.—Section 403(b), as amended by subsection (a), (42 

8 U.S.C. 603(b)) is further amended—

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

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

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

12 (3) by inserting after paragraph (2) (as redesig13 nated by subsection (a)(2)) the following: 

14 ‘‘(3) INITIAL DETERMINATION OF WHETHER A

15 STATE QUALIFIES AS A NEEDY STATE.—

16 ‘‘(A) IN GENERAL.—For purposes of para17 graph (1), subject to paragraph (4), a State will 

18 be initially determined to be a needy State for 

19 a month if, as determined by the Secretary—

20 ‘‘(i) the monthly average of the 

21 unduplicated number of families that re22 ceived assistance under the State program 

23 funded under this part in the most recently 

24 concluded 3-month period for which data 

25 are available from the State increased by at 
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1 least 5 percent over the number of such fam2 ilies that received such benefits in the cor3 responding 3-month period in either of the 

4 2 most recent preceding fiscal years; 

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

6 such families for the State was due, in large 

7 measure, to economic conditions rather than 

8 State policy changes; and 

9 ‘‘(iii) the State satisfies any of the fol10 lowing criteria: 

11 ‘‘(I) The average rate of total un12 employment in the State (seasonally 

13 adjusted) for the period consisting of 

14 the most recent 3 months for which 

15 data are available has increased by the 

16 lesser of 1.5 percentage points or by 50 

17 percent over the corresponding 3-month 

18 period in either of the 2 most recent 

19 preceding fiscal years. 

20 ‘‘(II) The average insured unem21 ployment rate for the most recent 13 

22 weeks for which data are available has 

23 increased by 1 percentage point over 

24 the corresponding 13-week period in ei-
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1 ther of the 2 most recent preceding fis2 cal years. 

3 ‘‘(III) As determined by the Sec4 retary of Agriculture, the monthly av5 erage number of households (as of the 

6 last day of each month) that partici7 pated in the food stamp program in 

8 the State in the then most recently con9 cluded 3-month period for which data 

10 are available exceeds by at least 15 

11 percent the monthly average number of 

12 households (as of the last day of each 

13 month) in the State that participated 

14 in the food stamp program in the cor15 responding 3-month period in either of 

16 the 2 most recent preceding fiscal 

17 years, but only if the Secretary and the 

18 Secretary of Agriculture concur in the 

19 determination that the State’s in20 creased caseload was due, in large 

21 measure, to economic conditions rather 

22 than changes in Federal or State poli23 cies related to the food stamp program. 

24 ‘‘(B) DURATION.—A State that qualifies as 

25 a needy State—
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1 ‘‘(i) under subclause (I) or (II) of sub2 paragraph (A)(iii), shall be considered a 

3 needy State until the State’s average rate of 

4 total unemployment or the State’s insured 

5 unemployment rate, respectively, falls below 

6 the level attained in the applicable period 

7 that was first used to determine that the 

8 State qualified as a needy State under that 

9 subparagraph (and in the case of the in10 sured unemployment rate, without regard to 

11 any declines in the rate that are the result 

12 of seasonal variation); and 

13 ‘‘(ii) under subclause (III) of subpara14 graph (A)(iii), shall be considered a needy 

15 State so long as the State meets the criteria 

16 for being considered a needy State under 

17 that subparagraph. 

18 ‘‘(4) EXCEPTIONS.—

19 ‘‘(A) UNEXPENDED BALANCES.—

20 ‘‘(i) IN GENERAL.—Notwithstanding 

21 paragraph (3), a State that has unexpended 

22 TANF balances in an amount that exceeds 

23 30 percent of the total amount of grants re24 ceived by the State under subsection (a) for 

25 the most recently completed fiscal year 
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1 (other than welfare-to-work grants made 

2 under paragraph (5) of that subsection 

3 prior to fiscal year 2000), shall not be a 

4 needy State under this subsection. 

5 ‘‘(ii) DEFINITION OF UNEXPENDED

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

7 ‘unexpended TANF balances’ means the les8 sor of—

9 ‘‘(I) the total amount of grants 

10 made to the State (regardless of the fis11 cal year in which such funds were 

12 awarded) under subsection (a) (other 

13 than welfare-to-work grants made 

14 under paragraph (5) of that subsection 

15 prior to fiscal year 2000) but not yet 

16 expended as of the end of the fiscal 

17 year preceding the fiscal year for 

18 which the State would, in the absence 

19 of this subparagraph, be considered a 

20 needy State under this subsection; and 

21 ‘‘(II) the total amount of grants 

22 made to the State under subsection (a) 

23 (other than welfare-to-work grants 

24 made under paragraph (5) of that sub25 section prior to fiscal year 2000) but 
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1 not yet expended as of the end of such 

2 preceding fiscal year, plus the dif3 ference between—

4 ‘‘(aa) the pro rata share of 

5 the current fiscal year grant to be 

6 made under subsection (a) to the 

7 State; and 

8 ‘‘(bb) current year expendi9 tures of the total amount of grants 

10 made to the State under sub11 section (a) (regardless of the fiscal 

12 year in which such funds were 

13 awarded) (other than such wel14 fare-to-work grants) through the 

15 end of the most recent calendar 

16 quarter. 

17 ‘‘(B) FAILURE TO SATISFY MAINTENANCE

18 OF EFFORT REQUIREMENT.—Notwithstanding 

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

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

21 a fiscal year shall not be a needy State under 

22 this subsection for that fiscal year.’’. 

23 (c) CLARIFICATION OF REPORTING REQUIREMENTS.—

24 Paragraph (6) of section 403(b) (42 U.S.C. 603(b)), as re25 designated by subsection (b)(2), is amended by striking ‘‘on 
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1 the status of the Fund’’ and inserting ‘‘on the States that 

2 qualified for contingency funds and the amount of funding 

3 awarded under this subsection’’. 

4 (d) ELIMINATION OF PENALTY FOR FAILURE TO MAIN5 TAIN 100 PERCENT MAINTENANCE OF EFFORT.—

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

7 609(a)) is amended—

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

9 (B) by redesignating paragraphs (11) 

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

11 respectively. 

12 (2) CONFORMING AMENDMENTS.—Section 409 

13 (42 U.S.C. 609) is amended—

14 (A) in subsection (a)(7)(B)(i)(III), by strik15 ing ‘‘(12)’’ and inserting ‘‘(11)’’; 

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

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

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

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

20 SEC. 107. USE OF FUNDS. 

21 (a) TREATMENT OF INTERSTATE IMMIGRANTS.—Sec22 tion 404 (42 U.S.C. 604) is amended by striking subsection 

23 (c). 

24 (b) RESTORATION OF AUTHORITY TO TRANSFER UP

25 TO 10 PERCENT OF TANF FUNDS TO THE SOCIAL SERV-
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1 ICES BLOCK GRANT.—Section 404(d)(2) (42 U.S.C. 

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

3 ‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE TO

4 TITLE XX PROGRAMS.—A State may use not more 

5 than 10 percent of the amount of any grant made to 

6 the State under section 403(a) for a fiscal year to 

7 carry out State programs pursuant to title XX.’’. 

8 (c) CLARIFICATION OF AUTHORITY OF STATES TO USE

9 TANF FUNDS CARRIED OVER FROM PRIOR YEARS TO

10 PROVIDE TANF BENEFITS AND SERVICES.—Section 404(e) 

11 (42 U.S.C. 604(e)) is amended to read as follows: 

12 ‘‘(e) AUTHORITY TO CARRYOVER OR RESERVE CER13 TAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FU14 TURE CONTINGENCIES.—

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

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

17 any fiscal year to provide, without fiscal year limita18 tion, any benefit or service that may be provided 

19 under the State or tribal program funded under this 

20 part. 

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

22 may designate any portion of a grant made to the 

23 State or tribe under this part as a contingency re24 serve for future needs, and may use any amount so 

25 designated to provide, without fiscal year limitation, 
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1 any benefit or service that may be provided under the 

2 State or tribal program funded under this part. If a 

3 State or tribe so designates a portion of such a grant, 

4 the State or tribe shall include in its report under 

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

6 (d) STATE OPTION TO ESTABLISH UNDERGRADUATE

7 POSTSECONDARY OR VOCATIONAL EDUCATIONAL PRO8 GRAM.—

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

10 is amended by adding at the end the following: 

11 ‘‘(l) AUTHORITY TO ESTABLISH UNDERGRADUATE

12 POSTSECONDARY OR VOCATIONAL EDUCATIONAL PRO13 GRAM.—

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

15 paragraphs of this subsection, a State to which a 

16 grant is made under section 403 may use the grant 

17 to establish a program under which an eligible partic18 ipant (as defined in paragraph (5)) may be provided 

19 support services described in paragraph (7) and, sub20 ject to paragraph (8), may have hours of participa21 tion in such program counted as being engaged in 

22 work for purposes of determining monthly participa23 tion rates under section 407(b)(1)(B)(i). 

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

25 establish a program under this subsection, a State 
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1 shall describe (in an addendum to the State plan sub2 mitted under section 402) the applicable eligibility 

3 criteria that is designed to limit participation in the 

4 program to only those individuals—

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

6 individuals cannot qualify for employment that 

7 pays enough to allow them to obtain self-suffi8 ciency (as determined by the State); and 

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

10 will prepare the individuals for higher-paying 

11 occupations in demand in the State. 

12 ‘‘(3) LIMITATION ON ENROLLMENT.—The number 

13 of eligible participants in a program established 

14 under this subsection may not exceed 10 percent of the 

15 total number of families receiving assistance under 

16 the State program funded under this part. 

17 ‘‘(4) NO FEDERAL FUNDS FOR TUITION.—A State 

18 may not use Federal funds provided under a grant 

19 made under section 403 to pay tuition for an eligible 

20 participant. 

21 ‘‘(5) DEFINITION OF ELIGIBLE PARTICIPANT.—In 

22 this subsection, the term ‘eligible participant’ means 

23 an individual who receives assistance under the State 

24 program funded under this part and satisfies the fol25 lowing requirements: 
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1 ‘‘(i) The individual is enrolled in a 

2 postsecondary 2- or 4-year degree program 

3 or in a vocational educational training pro4 gram. 

5 ‘‘(ii) During the period the individual 

6 participates in the program, the individual 

7 maintains satisfactory academic progress, 

8 as defined by the institution operating the 

9 undergraduate postsecondary or vocational 

10 educational program in which the indi11 vidual is enrolled. 

12 ‘‘(6) REQUIRED TIME PERIODS FOR COMPLETION

13 OF DEGREE OR VOCATIONAL EDUCATIONAL TRAINING

14 PROGRAM.—

15 ‘‘(A) IN GENERAL.—Subject to subpara16 graph (B), an eligible participant participating 

17 in a program established under this subsection 

18 shall be required to complete the requirements of 

19 a degree or vocational educational training pro20 gram within the normal timeframe for full-time 

21 students seeking the particular degree or com22 pleting the vocational educational training pro23 gram. 

24 ‘‘(B) EXCEPTION.—For good cause, the 

25 State may allow an eligible participant to com-
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1 plete their degree requirements or vocational edu2 cational training program within a period not 

to exceed 11 3 ⁄2 times the normal timeframe estab4 lished under subparagraph (A) (unless further 

5 modification is required by the Americans with 

6 Disabilities Act of 1990 (42 U.S.C. 12101 et 

7 seq.), or section 504 of the Rehabilitation Act of 

8 1973 (29 U.S.C. 794)) and may modify the re9 quirements applicable to an individual partici10 pating in the program. For purposes of the pre11 ceding sentence, good cause includes the case of 

12 an eligible participant with 1 or more signifi13 cant barriers to normal participation, as deter14 mined by the State, such as the need to care for 

15 a family member with special needs. 

16 ‘‘(7) SUPPORT SERVICES DESCRIBED.—For pur17 poses of paragraph (1), the support services described 

18 in this paragraph include any or all of the following 

19 during the period the eligible participant is in the 

20 program established under this subsection: 

21 ‘‘(A) Child care. 

22 ‘‘(B) Transportation services. 

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

24 ‘‘(D) Other services provided under policies 

25 determined by the State to ensure coordination 
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1 and lack of duplication with other programs 

2 available to provide support services. 

3 ‘‘(8) RULES FOR INCLUSION IN MONTHLY WORK

4 PARTICIPATION RATES.—

5 ‘‘(A) FAMILIES COUNTED AS PARTICIPATING

6 IF THEY MEET THE REQUIREMENTS OF SUB7 PARAGRAPHS (B) OR (C).—For each eligible par8 ticipant, a State may elect, for purposes of deter9 mining monthly participation rates under sec10 tion 407(b)(1)(B)(i), to include such participant 

11 in the determination of such rates in accordance 

12 with subparagraph (B) or (C). 

13 ‘‘(B) FULL OR PARTIAL CREDIT FOR HOURS

14 OF PARTICIPATION IN EDUCATIONAL OR RELATED

15 ACTIVITIES.—

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

17 (iv), an eligible participant who partici18 pates in educational or related activities (as 

19 determined by the State) under a program 

20 established under this subsection shall be 

21 given credit for the number of hours of such 

22 participation to the extent that an adult re23 cipient or minor child head of household 

24 would be given credit under section 407(c) 

25 for being engaged in the same number of 
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1 hours of work activities described in para2 graph (1), (2), (3), (4), (5), (6), (7), (8), or 

3 (12) of section 407(d). 

4 ‘‘(ii) RELATED ACTIVITIES.—For pur5 poses of clause (i), related activities shall 

6 include—

7 ‘‘(I) work activities described in 

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

9 (7), (8), or (12) of section 407(d); 

10 ‘‘(II) work study, practicums, in11 ternships, clinical placements, labora12 tory or field work, or such other activi13 ties as will enhance the eligible partici14 pant’s employability in the partici15 pant’s field of study, as determined by 

16 the State; or 

17 ‘‘(III) subject to clause (iii), study 

18 time. 

19 ‘‘(iii) LIMITATION ON INCLUSION OF

20 STUDY TIME.—For purposes of determining 

21 hours per week of participation by an eligi22 ble participant under a program established 

23 under this subsection, a State may not 

24 count study time of less than 1 hour for 
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1 every hour of class time or more than 2 

2 hours for every hour of class time. 

3 ‘‘(iv) TOTAL NUMBER OF HOURS LIM4 ITED TO BEING COUNTED AS 1 FAMILY.—In 

5 no event may hours per week of participa6 tion by an eligible participant under a pro7 gram established under this subsection be 

8 counted as more than 1 family for purposes 

9 of determining monthly participation rates 

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

11 ‘‘(C) FULL CREDIT FOR BEING ENGAGED IN

12 DIRECT WORK ACTIVITIES FOR CERTAIN HOURS

13 PER WEEK.—

14 ‘‘(i) IN GENERAL.—A family that in15 cludes an eligible participant who, in addi16 tion to complying with the full-time edu17 cational participation requirements of the 

18 degree or vocational educational training 

19 program they are enrolled in, participates 

20 in an activity described in subclause (I), 

21 (II), or (III) of subparagraph (B)(ii) for 

22 not less than the number of hours required 

23 per week under clause (ii) shall be counted 

24 as 1 family. 
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1 ‘‘(ii) REQUIRED HOURS PER WEEK.—

2 For purposes of clause (i), subject to clause 

3 (iii), the number of hours per week are—

4 ‘‘(I) 6 hours per week during the 

5 first 12-month period that an eligible 

6 participant participates in a program 

7 established under this subsection; 

8 ‘‘(II) 8 hours per week during the 

9 second 12-month period of such par10 ticipation; 

11 ‘‘(II) 10 hours per week during 

12 the third 12-month period of such par13 ticipation; and 

14 ‘‘(II) 12 hours per week during 

15 the fourth or any other succeeding 12- 

16 month period of such participation. 

17 ‘‘(iii) MODIFICATION OF REQUIRE18 MENTS FOR GOOD CAUSE.—A State may 

19 modify the number of hours per week re20 quired under clause (ii) for good cause. For 

21 purposes of the preceding sentence, good 

22 cause includes the case of an eligible partic23 ipant with 1 or more significant barriers to 

24 normal participation, as determined by the 
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1 State, such as the need to care for a family 

2 member with special needs.’’. 

3 (2) CONFORMING AMENDMENT.—Section 

4 407(d)(8) (42 U.S.C. 607(d)(8)) is amended by insert5 ing ‘‘other than an individual participating in a pro6 gram established under section 404(l)’’ after ‘‘indi7 vidual’’. 

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

9 PROGRAMS. 

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

11 (b) CONFORMING AMENDMENTS.—

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

13 section 106(d)(2), is amended—

14 (A) in subsection (a), by striking paragraph 

15 (6); 

16 (B) in subsection (b)(2), by striking ‘‘(6),’’; 

17 and 

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

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

20 striking subsection (f) and redesignating subsections 

21 (g) through (i) as subsections (f) through (h), respec22 tively. 

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

24 amended by striking ‘‘406,’’. 
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1 SEC. 109. WORK PARTICIPATION REQUIREMENTS. 

2 (a) ELIMINATION OF SEPARATE WORK PARTICIPATION

3 RATE FOR 2-PARENT FAMILIES BEGINNING WITH FISCAL

4 YEAR 2003.—

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

6 is amended—

7 (A) in subsection (a)—

8 (i) in the heading, by striking ‘‘PAR9 TICIPATION RATE REQUIREMENTS’’ and all 

10 that follows through ‘‘A State’’ and insert11 ing ‘‘PARTICIPATION RATE REQUIRE12 MENTS.—A State’’; and 

13 (ii) by striking paragraph (2); 

14 (B) in subsection (b)—

15 (i) by striking paragraph (2); 

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

17 ‘‘paragraphs (1)(B) and (2)(B)’’ and insert18 ing ‘‘determining monthly participation 

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

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

21 ‘‘rates’’ and inserting ‘‘rate’’; and 

22 (C) in subsection (c)—

23 (i) in paragraph (1)—

24 (I) by striking ‘‘GENERAL

25 RULES.—’’ and all that follows through 

26 ‘‘For purposes’’ in subparagraph (A) 
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1 and inserting ‘‘GENERAL RULE.—For 

2 purposes’’; and 

3 (II) by striking subparagraph 

4 (B); and 

5 (ii) in paragraph (2)(D)—

6 (I) by striking ‘‘paragraphs 

7 (1)(B)(i) and (2)(B) of subsection (b)’’ 

8 and inserting ‘‘subsection 

9 (b)(1)(B)(i)’’; and 

10 (II) by striking ‘‘and in 2-parent 

11 families, respectively,’’. 

12 (2) EFFECTIVE DATE.—The amendments made 

13 by paragraph (1) shall take effect as if enacted on Oc14 tober 1, 2002. 

15 (b) MINIMUM PARTICIPATION RATES.—Section 407(a) 

16 (42 U.S.C. 607(a)), as amended by subsection (a)(1)(A), is 

17 amended to read as follows: 

18 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—

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

20 made under section 403 for a fiscal year shall achieve 

21 a minimum participation rate with respect to all 

22 families receiving assistance under the State program 

23 funded under this part that is equal to not less 

24 than—

25 ‘‘(A) 50 percent for fiscal year 2004; 
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1 ‘‘(B) 55 percent for fiscal year 2005; 

2 ‘‘(C) 60 percent for fiscal year 2006; 

3 ‘‘(D) 65 percent for fiscal year 2007; and 

4 ‘‘(E) 70 percent for fiscal year 2008 and 

5 each succeeding fiscal year.’’. 

6 (c) LIMITATION ON REDUCTION OF PARTICIPATION

7 RATE THROUGH APPLICATION OF CREDITS.—Section 

8 407(a) (42 U.S.C. 607(b)), as amended by subsection (b), 

9 is amended by adding at the end the following: 

10 ‘‘(2) LIMITATION ON REDUCTION OF PARTICIPA11 TION RATE THROUGH APPLICATION OF CREDITS.—

12 Notwithstanding any other provision of this part, the 

13 net effect of any percentage reduction in the min14 imum participation rate otherwise required under 

15 this section with respect to families receiving assist16 ance under the State program funded under this part 

17 as a result of the application of any employment 

18 credit, caseload reduction credit, or other credit 

19 against such rate for a fiscal year, shall not exceed—

20 ‘‘(A) 40 percentage points, in the case of fis21 cal year 2004; 

22 ‘‘(B) 35 percentage points, in the case of fis23 cal year 2005; 

24 ‘‘(C) 30 percentage points, in the case of fis25 cal year 2006; 
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1 ‘‘(D) 25 percentage points, in the case of fis2 cal year 2007; or 

3 ‘‘(E) 20 percentage points, in the case of fis4 cal year 2008 or any fiscal year thereafter.’’. 

5 (d) REPLACEMENT OF CASELOAD REDUCTION CREDIT

6 WITH EMPLOYMENT CREDIT.— 

7 (1) EMPLOYMENT CREDIT TO REWARD STATES IN

8 WHICH FAMILIES LEAVE WELFARE FOR WORK; ADDI9 TIONAL CREDIT FOR FAMILIES WITH HIGHER EARN10 INGS.—

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

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

13 (a)(1)(B)(i), is amended by inserting after para14 graph (1) the following: 

15 ‘‘(2) EMPLOYMENT CREDIT.—

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

17 (a)(2), the Secretary shall, by regulation, reduce 

18 the minimum participation rate otherwise appli19 cable to a State under this subsection for a fiscal 

20 year by the number of percentage points in the 

21 employment credit for the State for the fiscal 

22 year, as determined by the Secretary—

23 ‘‘(i) using information in the National 

24 Directory of New Hires; 
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1 ‘‘(ii) with respect to a recipient of as2 sistance or former recipient of assistance 

3 under the State program funded under this 

4 part who is placed with an employer whose 

5 hiring information is not reported to the 

6 National Directory of New Hires, using 

7 quarterly wage information submitted by 

8 the State to the Secretary not later than 

9 such date as the Secretary shall prescribe in 

10 regulations; or 

11 ‘‘(iii) with respect to families described 

12 in subclause (II) or (III) of subparagraph 

13 (B)(ii), using such other data as the Sec14 retary may require in order to determine 

15 the employment credit for a State under 

16 this paragraph. 

17 ‘‘(B) CALCULATION OF CREDIT.—

18 ‘‘(i) IN GENERAL.—The employment 

19 credit for a State for a fiscal year is an 

20 amount equal to the sum of the amounts de21 termined under clause (ii), divided by the 

22 amount determined under clause (iii). 

23 ‘‘(ii) NUMERATOR.—For purposes of 

24 clause (i), the amounts determined under 

25 this clause are the following: 
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1 ‘‘(I) Twice the quarterly average 

2 unduplicated number of families that 

3 include an adult or minor child head 

4 of household recipient of assistance 

5 under the State program funded under 

6 this part, that ceased to receive such 

7 assistance for at least 2 consecutive 

8 months following the date of the case 

9 closure for the family during the appli10 cable period (as defined in clause (v)), 

11 that did not receive assistance under a 

12 separate State-funded program during 

13 such 2-month period, and that were 

14 employed during the calendar quarter 

15 immediately succeeding the quarter in 

16 which the assistance under the State 

17 program funded under this part 

18 ceased. 

19 ‘‘(II) At the option of the State, 

20 twice the quarterly average number of 

21 families that received a nonrecurring 

22 short-term benefit under the State pro23 gram funded under this part during 

24 the applicable period (as so defined), 

25 that were employed during the cal-
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1 endar quarter immediately succeeding 

2 the quarter in which the nonrecurring 

3 short-term benefit was so received, and 

4 that earned at least $1,000 during the 

5 applicable period (as so defined). 

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

7 twice the quarterly average number of 

8 families that includes an adult who is 

9 receiving substantial child care or 

10 transportation assistance (as defined 

11 by the Secretary, in consultation with 

12 directors of State programs funded 

13 under this part, which definition shall 

14 specify for each type of assistance a 

15 threshold which is a dollar value or a 

16 length of time over which the assistance 

17 is received, and which takes account of 

18 large one-time transition payments)) 

19 during the applicable period (as so de20 fined). 

21 ‘‘(iii) DENOMINATOR.—For purposes of 

22 clause (i), the amount determined under 

23 this clause is the amount equal to the sum 

24 of the following: 
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1 ‘‘(I) The average monthly number 

2 of families that include an adult or 

3 minor child head of household who re4 ceived assistance under the State pro5 gram funded under this part during 

6 the applicable period (as defined under 

7 clause (v)). 

8 ‘‘(II) If the State elected the op9 tion under clause (ii)(II), twice the 

10 quarterly average number of families 

11 that received a nonrecurring short-term 

12 benefit under the State program funded 

13 under this part during the applicable 

14 period (as so defined). 

15 ‘‘(III) If the State elected the op16 tion under clause (ii)(III), twice the 

17 quarterly average number of families 

18 that includes an adult who is receiving 

19 substantial child care or transpor20 tation assistance during the applicable 

21 period (as so defined). 

22 ‘‘(iv) SPECIAL RULE FOR FORMER RE23 CIPIENTS WITH HIGHER EARNINGS.—In cal24 culating the employment credit for a State 

25 for a fiscal year, in the case of a family 
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1 that includes an adult or a minor child 

2 head of household that is to be included in 

3 the amount determined under clause (ii)(I) 

4 and that, with respect to the quarter in 

5 which the family’s earnings was examined 

6 during the applicable period, earned at 

7 least 33 percent of the average quarterly 

8 earnings in the State (determined on the 

9 basis of State unemployment data), the 

10 family shall be considered to be 1.5 families. 

11 ‘‘(v) DEFINITION OF APPLICABLE PE12 RIOD.—For purposes of this paragraph, the 

13 term ‘applicable period’ means, with respect 

14 to a fiscal year, the most recent 4 quarters 

15 for which data are available to the Sec16 retary providing information on the work 

17 status of—

18 ‘‘(I) individuals in the quarter 

19 after the individuals ceased receiving 

20 assistance under the State program 

21 funded under this part; 

22 ‘‘(II) at State option, individuals 

23 in the quarter after the individuals re24 ceived a short-term, nonrecurring ben25 efit; and 
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1 ‘‘(III) at State option, individuals 

2 in the quarter after the individuals 

3 ceased receiving substantial child care 

4 or transportation assistance. 

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

6 than August 30 of each fiscal year, the Secretary 

7 shall—

8 ‘‘(i) determine, on the basis of the ap9 plicable period, the amount of the employ10 ment credit that will be used in deter11 mining the minimum participation rate for 

12 a State under subsection (a) for the imme13 diately succeeding fiscal year; and 

14 ‘‘(ii) notify each State conducting a 

15 State program funded under this part of the 

16 amount of the employment credit for such 

17 program for the succeeding fiscal year.’’. 

18 (B) AUTHORITY OF SECRETARY TO USE IN19 FORMATION IN NATIONAL DIRECTORY OF NEW

20 HIRES.—Section 453(i) (42 U.S.C. 653(i)) is 

21 amended by adding at the end the following:

22 ‘‘(5) CALCULATION OF EMPLOYMENT CREDIT FOR

23 PURPOSES OF DETERMINING STATE WORK PARTICIPA24 TION RATES UNDER TANF.—The Secretary may use 

25 the information in the National Directory of New 
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1 Hires for purposes of calculating State employment 

2 credits pursuant to section 407(b)(2).’’. 

3 (2) ELIMINATION OF CASELOAD REDUCTION

4 CREDIT.—Section 407(b) (42 U.S.C. 607(b)) is 

5 amended by striking paragraph (3) and redesignating 

6 paragraphs (4) and (5) as paragraphs (3) and (4), 

7 respectively. 

8 (3) EFFECTIVE DATES.—

9 (A) IN GENERAL.—Except as provided in 

10 subparagraphs (B) and (C), the amendments 

11 made by this subsection shall take effect on Octo12 ber 1, 2005. 

13 (B) STATE OPTION TO PHASE-IN REPLACE14 MENT OF CASELOAD REDUCTION CREDIT WITH

15 EMPLOYMENT CREDIT AND DELAY APPLICABILITY

16 OF OTHER PROVISIONS.—A State may elect to 

17 have the amendments made by this subsection 

18 not apply to the State program funded under 

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

20 October 1, 2006, and if the State makes the elec21 tion, then, in determining the participation rate 

22 of the State for purposes of section 407 of the So23 cial Security Act for fiscal year 2006, the State 

shall be credited with 1 24 ⁄2 of the reduction in the 

25 rate that would otherwise result from applying 
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1 section 407(b)(2) of the Social Security Act (as 

2 added by paragraph (1)(A)) to the State for fiscal year 2006 and 1 3 ⁄2 of the reduction in the rate 

4 that would otherwise result from applying sec5 tion 407(b)(3) of the Social Security Act (as in 

6 effect with respect to fiscal year 2003) to the 

7 State for fiscal year 2006. 

8 (C) AUTHORITY TO USE INFORMATION IN

9 THE NATIONAL DIRECTORY OF NEW HIRES.—The 

10 amendment made by paragraph (1)(B) shall take 

11 effect on October 1, 2003. 

12 (e) STATE OPTIONS FOR PARTICIPATION REQUIRE13 MENT EXEMPTIONS.—Section 407(b)(4) (42 U.S.C. 

14 607(b)(4)), as amended by subsection (a)(1)(B)(iii) and re15 designated by subsection (d)(2), is amended to read as fol16 lows: 

17 ‘‘(4) STATE OPTIONS FOR PARTICIPATION RE18 QUIREMENT EXEMPTIONS.—At the option of a State, 

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

20 ‘‘(A) not include a family in the determina21 tion of the monthly participation rate for the 

22 State in the first month for which the family re23 ceives assistance from the State program funded 

24 under this part on the basis of the most recent 

25 application for such assistance; or 
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1 ‘‘(B) not require a family in which the 

2 youngest child has not attained 12 months of age 

3 to engage in work, and may disregard that fam4 ily in determining the minimum participation 

5 rate under subsection (a) for the State for not 

6 more than 12 months.’’. 

7 (f) DETERMINATION OF COUNTABLE HOURS ENGAGED

8 IN WORK.—

9 (1) IN GENERAL.—Section 407(c) (42 U.S.C. 

10 607(c)) is amended to read as follows: 

11 ‘‘(c) DETERMINATION OF COUNTABLE HOURS EN12 GAGED IN WORK.—

13 ‘‘(1) SINGLE PARENT OR RELATIVE WITH A

14 CHILD OVER AGE 6.—

15 ‘‘(A) MINIMUM AVERAGE NUMBER OF

16 HOURS PER WEEK.—Subject to the succeeding 

17 paragraphs of this subsection, a family in which 

18 an adult recipient or minor child head of house19 hold in the family is participating in work ac20 tivities described in subsection (d) shall be treat21 ed as engaged in work for purposes of deter22 mining monthly participation rates under sub23 section (b)(1)(B)(i) as follows: 

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

25 the total number of hours in which any 
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1 adult recipient or minor child head of 

2 household in the family is participating in 

3 such work activities for an average of at 

4 least 20, but less than 24, hours per week in 

5 a month, as 0.675 of a family. 

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

7 the total number of hours in which any 

8 adult recipient or minor child head of 

9 household in the family is participating in 

10 such work activities for an average of at 

11 least 24, but less than 30, hours per week in 

12 a month, as 0.75 of a family. 

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

14 the total number of hours in which any 

15 adult recipient or minor child head of 

16 household in the family is participating in 

17 such work activities for an average of at 

18 least 30, but less than 34, hours per week in 

19 a month, as 0.875 of a family. 

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

21 the total number of hours in which any 

22 adult recipient or minor child head of 

23 household in the family is participating in 

24 such work activities for an average of at 
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1 least 34, but less than 35, hours per week in 

2 a month, as 1 family. 

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

4 the total number of hours in which any 

5 adult recipient or minor child head of 

6 household in the family is participating in 

7 such work activities for an average of at 

8 least 35, but less than 38, hours per week in 

9 a month, as 1.05 families. 

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

11 the total number of hours in which any 

12 adult recipient or minor child head of 

13 household in the family is participating in 

14 such work activities for an average of at 

15 least 38 hours per week in a month, as 1.08 

16 families. 

17 ‘‘(B) DIRECT WORK ACTIVITIES REQUIRED

18 FOR AN AVERAGE OF 24 HOURS PER WEEK.—Ex19 cept as provided in subparagraph (C)(i), a State 

20 may not count any hours of participation in 

21 work activities specified in paragraph (9), (10), 

22 or (11) of subsection (d) of any adult recipient 

23 or minor child head of household in a family be24 fore the total number of hours of participation 

25 by any adult recipient or minor child head of 
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1 household in the family in work activities de2 scribed in paragraph (1), (2), (3), (4), (5), (6), 

3 (7), (8), or (12) of subsection (d) for the family 

4 for the month averages at least 24 hours per 

5 week. 

6 ‘‘(C) STATE FLEXIBILITY TO COUNT PAR7 TICIPATION IN CERTAIN ACTIVITIES.—

8 ‘‘(i) QUALIFIED ACTIVITIES FOR 3-

9 MONTHS IN ANY 24-MONTH PERIOD.—

10 ‘‘(I) 24-HOURS PER WEEK RE11 QUIRED.—Subject to subclauses (III) 

12 and (IV), for purposes of determining 

13 hours under subparagraph (A), a State 

14 may count the total number of hours 

15 any adult recipient or minor child 

16 head of household in a family engages 

17 in qualified activities described in sub18 clause (II) as a work activity described 

19 in subsection (d), without regard to 

20 whether the recipient has satisfied the 

21 requirement of subparagraph (B), but 

22 only if—

23 ‘‘(aa) the total number of 

24 hours of participation in such 

25 qualified activities for the family 
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1 for the month average at least 24 

2 hours per week; and 

3 ‘‘(bb) engaging in such quali4 fied activities is a requirement of 

5 the family self-sufficiency plan. 

6 ‘‘(II) QUALIFIED ACTIVITIES DE7 SCRIBED.—For purposes of subclause 

8 (I), qualified activities described in 

9 this subclause are any of the following: 

10 ‘‘(aa) Postsecondary edu11 cation. 

12 ‘‘(bb) Adult literacy pro13 grams or activities. 

14 ‘‘(cc) Substance abuse coun15 seling or treatment. 

16 ‘‘(dd) Programs or activities 

17 designed to remove barriers to 

18 work, as defined by the State. 

19 ‘‘(ee) Work activities author20 ized under any waiver for any 

21 State that was continued under 

22 section 415 before the date of en23 actment of the Personal Responsi24 bility and Individual Develop25 ment for Everyone Act. 
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1 ‘‘(III) LIMITATION.—Except as 

2 provided in clause (ii), subclause (I) 

3 shall not apply to a family for more 

4 than 3 months in any period of 24 

5 consecutive months. 

6 ‘‘(IV) CERTAIN ACTIVITIES.—The 

7 Secretary may allow a State to count 

8 the total hours of participation in 

9 qualified activities described in sub10 clause (II) for an adult recipient or 

11 minor child head of household without 

12 regard to the minimum 24 hour aver13 age per week of participation require14 ment under subclause (I) if the State 

15 has demonstrated conclusively that 

16 such activity is part of a substantial 

17 and supervised program whose effec18 tiveness in moving families to self-suf19 ficiency is superior to any alternative 

20 activity and the effectiveness of the 

21 program in moving families to self-suf22 ficiency would be substantially im23 paired if participating individuals 

24 participated in additional, concurrent 

25 qualified activities that enabled the in-
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1 dividuals to achieve an average of at 

2 least 24 hours per week of participa3 tion. 

4 ‘‘(ii) ADDITIONAL 3-MONTH PERIOD

5 PERMITTED FOR CERTAIN ACTIVITIES.—

6 ‘‘(I) SELF-SUFFICIENCY PLAN RE7 QUIREMENT COMBINED WITH MINIMUM

8 NUMBER OF HOURS.—A State may ex9 tend the 3-month period under clause 

10 (i) for an additional 3 months in the 

11 same period of 24 consecutive months 

12 in the case of an adult recipient or 

13 minor child head of household who is 

14 receiving qualified rehabilitative serv15 ices described in subclause (II) if—

16 ‘‘(aa) the total number of 

17 hours that the adult recipient or 

18 minor child head of household en19 gages in such qualified rehabilita20 tive services and, subject to sub21 clause (III), a work activity de22 scribed in paragraph (1), (2), (3), 

23 (4), (5), (6), (7), (8), or (12) of 

24 subsection (d) for the month aver-
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1 age at least 24 hours per week; 

2 and 

3 ‘‘(bb) engaging in such quali4 fied rehabilitative services is a re5 quirement of the family self-suffi6 ciency plan. 

7 ‘‘(II) QUALIFIED REHABILITATIVE

8 SERVICES DESCRIBED.—For purposes 

9 of subclause (I), qualified rehabilitative 

10 services described in this subclause are 

11 any of the following: 

12 ‘‘(aa) Adult literacy pro13 grams or activities. 

14 ‘‘(bb) Participation in a pro15 gram designed to increase pro16 ficiency in the English language. 

17 ‘‘(cc) In the case of an adult 

18 recipient or minor child head of 

19 household who has been certified 

20 by a qualified medical, mental 

21 health, or social services profes22 sional (as defined by the State) as 

23 having a physical or mental dis24 ability, substance abuse problem, 

25 or other problem that requires a 
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1 rehabilitative service, substance 

2 abuse treatment, or mental health 

3 treatment, the service or treatment 

4 determined necessary by the pro5 fessional. 

6 ‘‘(III) NONAPPLICATION OF LIMI7 TATIONS ON JOB SEARCH AND VOCA8 TIONAL EDUCATIONAL TRAINING.—An 

9 adult recipient or minor child head of 

10 household who is receiving qualified re11 habilitative services described in sub12 clause (II) may engage in a work ac13 tivity described in paragraph (6) or 

14 (8) of subsection (d) for purposes of 

15 satisfying the minimum 24 hour aver16 age per week of participation require17 ment under subclause (I)(aa) without 

18 regard to any limit that otherwise ap19 plies to the activity (including the 30 

20 percent limitation on participation in 

21 vocational educational training under 

22 paragraph (6)(C)). 

23 ‘‘(iii) HOURS IN EXCESS OF AN AVER24 AGE OF 24 WORK ACTIVITY HOURS PER

25 WEEK.—If the total number of hours that 
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1 any adult recipient or minor child head of 

2 household in a family has participated in a 

3 work activity described in paragraph (1), 

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

5 subsection (d) averages at least 24 hours per 

6 week in a month, a State, for purposes of 

7 determining hours under subparagraph (A), 

8 may count any hours an adult recipient or 

9 minor child head of household in the family 

10 engages in—

11 ‘‘(I) any work activity described 

12 in subsection (d), without regard to 

13 any limit that otherwise applies to the 

14 activity (including the 30 percent limi15 tation on participation in vocational 

16 educational training under paragraph 

17 (6)(C)); and 

18 ‘‘(II) any qualified activity de19 scribed in clause (i)(II), as a work ac20 tivity described in subsection (d). 

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

22 CHILD UNDER AGE 6.—

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

24 adult recipient or minor child head of household 

25 in the family is the only parent or caretaker rel-
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1 ative in the family of a child who has not at2 tained 6 years of age and who is participating 

3 in work activities described in subsection (d) 

4 shall be treated as engaged in work for purposes 

5 of determining monthly participation rates 

6 under subsection (b)(1)(B)(i) as follows: 

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

8 which the total number of hours in which 

9 the adult recipient or minor child head of 

10 household in the family is participating in 

11 such work activities for an average of at 

12 least 20, but less than 24, hours per week in 

13 a month, as 0.675 of a family. 

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

15 which the total number of hours in which 

16 the adult recipient or minor child head of 

17 household in the family is participating in 

18 such work activities for an average of at 

19 least 24, but less than 35, hours per week in 

20 a month, as 1 family. 

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

22 which the total number of hours in which 

23 the adult recipient or minor child head of 

24 household in the family is participating in 

25 such work activities for an average of at 
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1 least 35, but less than 38, hours per week in 

2 a month, as 1.05 families. 

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

4 which the total number of hours in which 

5 the adult recipient or minor child head of 

6 household in the family is participating in 

7 such work activities for an average of at 

8 least 38 hours per week in a month, as 1.08 

9 families. 

10 ‘‘(B) APPLICATION OF RULES REGARDING

11 DIRECT WORK ACTIVITIES AND STATE FLEXI12 BILITY TO COUNT PARTICIPATION IN CERTAIN AC13 TIVITIES.—Subparagraphs (B) and (C) of para14 graph (1) apply to a family described in sub15 paragraph (A) in the same manner as such sub16 paragraphs apply to a family described in para17 graph (1)(A). 

18 ‘‘(3) 2-PARENT FAMILIES.—

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

20 (6)(A), a 2-parent family in which an adult re21 cipient or minor child head of household in the 

22 family is participating in work activities de23 scribed in subsection (d) shall be treated as en24 gaged in work for purposes of determining 
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1 monthly participation rates under subsection 

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

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

4 which the total number of hours in which 

5 any adult recipient or minor child head of 

6 household in the family is participating in 

7 such work activities for an average of at 

8 least 26, but less than 30, hours per week in 

9 a month, as 0.675 of a family. 

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

11 which the total number of hours in which 

12 any adult recipient or minor child head of 

13 household in the family is participating in 

14 such work activities for an average of at 

15 least 30, but less than 35, hours per week in 

16 a month, as 0.75 of a family. 

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

18 which the total number of hours in which 

19 any adult recipient or minor child head of 

20 household in the family is participating in 

21 such work activities for an average of at 

22 least 35, but less than 39, hours per week in 

23 a month, as 0.875 of a family. 

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

25 which the total number of hours in which 
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1 any adult recipient or minor child head of 

2 household in the family is participating in 

3 such work activities for an average of at 

4 least 39, but less than 40, hours per week in 

5 a month, as 1 family. 

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

7 which the total number of hours in which 

8 any adult recipient or minor child head of 

9 household in the family is participating in 

10 such work activities for an average of at 

11 least 40, but less than 43, hours per week in 

12 a month, as 1.05 families. 

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

14 which the total number of hours in which 

15 any adult recipient or minor child head of 

16 household in the family is participating in 

17 such work activities for an average of at 

18 least 43 hours per week in a month, as 1.08 

19 families. 

20 ‘‘(B) APPLICATION OF RULES REGARDING

21 DIRECT WORK ACTIVITIES AND STATE FLEXI22 BILITY TO COUNT PARTICIPATION IN CERTAIN AC23 TIVITIES.—Subparagraphs (B) and (C) of para24 graph (1) apply to a 2-parent family described 

25 in subparagraph (A) in the same manner as 
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1 such subparagraphs apply to a family described 

2 in paragraph (1)(A), except that subparagraph 

3 (B) of paragraph (1) shall be applied to a such 

4 a 2-parent family by substituting ‘34’ for ‘24’ 

5 each place it appears. 

6 ‘‘(4) 2-PARENT FAMILIES THAT RECEIVE FEDER7 ALLY FUNDED CHILD CARE.—

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

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

10 funded child care assistance, an adult recipient 

11 or minor child head of household in the family 

12 participating in work activities described in sub13 section (d) shall be treated as engaged in work 

14 for purposes of determining monthly participa15 tion rates under subsection (b)(1)(B)(i) as fol16 lows: 

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

18 which the total number of hours in which 

19 any adult recipient or minor child head of 

20 household in the family is participating in 

21 such work activities for an average of at 

22 least 40, but less than 45, hours per week in 

23 a month, as 0.675 of a family. 

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

25 which the total number of hours in which 
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1 any adult recipient or minor child head of 

2 household in the family is participating in 

3 such work activities for an average of at 

4 least 45, but less than 51, hours per week in 

5 a month, as 0.75 of a family. 

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

7 which the total number of hours in which 

8 any adult recipient or minor child head of 

9 household in the family is participating in 

10 such work activities for an average of at 

11 least 51, but less than 55, hours per week in 

12 a month, as 0.875 of a family. 

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

14 which the total number of hours in which 

15 any adult recipient or minor child head of 

16 household in the family is participating in 

17 such work activities for an average of at 

18 least 55, but less than 56, hours per week in 

19 a month, as 1 family. 

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

21 which the total number of hours in which 

22 any adult recipient or minor child head of 

23 household in the family is participating in 

24 such work activities for an average of at 
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1 least 56, but less than 59, hours per week in 

2 a month, as 1.05 families. 

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

4 which the total number of hours in which 

5 any adult recipient or minor child head of 

6 household in the family is participating in 

7 such work activities for an average of at 

8 least 59 hours per week in a month, as 1.08 

9 families. 

10 ‘‘(B) APPLICATION OF RULES REGARDING

11 DIRECT WORK ACTIVITIES AND STATE FLEXI12 BILITY TO COUNT PARTICIPATION IN CERTAIN AC13 TIVITIES.—Subparagraphs (B) and (C) of para14 graph (1) apply to a 2-parent family described 

15 in subparagraph (A) in the same manner as 

16 such subparagraphs apply to a family described 

17 in paragraph (1)(A), except that subparagraph 

18 (B) of paragraph (1) shall be applied to a such 

19 a 2-parent family by substituting ‘50’ for ‘24’ 

20 each place it appears. 

21 ‘‘(5) CALCULATION OF HOURS PER WEEK.—The 

22 number of hours per week that a family is engaged 

23 in work is the quotient of—

24 ‘‘(A) the total number of hours per month 

25 that the family is engaged in work; divided by 
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1 ‘‘(B) 4. 

2 ‘‘(6) SPECIAL RULES.—

3 ‘‘(A) FAMILY WITH A DISABLED PARENT

4 NOT TREATED AS A 2-PARENT FAMILY.—A family 

5 that includes a disabled parent shall not be con6 sidered a 2-parent family for purposes of para7 graph (3) or (4). 

8 ‘‘(B) NUMBER OF WEEKS FOR WHICH JOB

9 SEARCH COUNTS AS WORK.—An individual shall 

10 not be considered to be engaged in work for a 

11 month by virtue of participation in an activity 

12 described in subsection (d)(6) of a State program 

13 funded under this part, after the individual has 

14 participated in such an activity for 6 weeks (or, 

15 if the unemployment rate of the State is at least 

16 50 percent greater than the unemployment rate 

17 of the United States, or the State meets the cri18 teria of subclause (I), (II), or (III) of section 

19 403(b)(3)(A)(iii) or satisfies the applicable dura20 tion requirement of section 403(b)(3)(B)), 12 

21 weeks). 

22 ‘‘(C) SINGLE TEEN HEAD OF HOUSEHOLD

23 OR MARRIED TEEN WHO MAINTAINS SATISFAC24 TORY SCHOOL ATTENDANCE DEEMED TO COUNT

25 AS 1 FAMILY.—For purposes of determining 
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1 hours under the preceding paragraphs of this 

2 subsection, with respect to a month, a State shall 

3 count a recipient who is married or a head of 

4 household and who has not attained 20 years of 

5 age as 1 family if the recipient—

6 ‘‘(i) maintains satisfactory attendance 

7 at secondary school or the equivalent during 

8 the month; or 

9 ‘‘(ii) participates in education directly 

10 related to employment for an average of at 

11 least 20 hours per week during the month. 

12 ‘‘(D) LIMITATION ON NUMBER OF PERSONS

13 WHO MAY BE TREATED AS ENGAGED IN WORK BY

14 REASON OF PARTICIPATION IN EDUCATIONAL AC15 TIVITIES.—Except as provided in paragraph 

16 (1)(C)(ii)(I), for purposes of subsection 

17 (b)(1)(B)(i), not more than 30 percent of the 

18 number of individuals in all families in a State 

19 who are treated as engaged in work for a month 

20 may consist of individuals who are—

21 ‘‘(i) determined (without regard to in22 dividuals participating in a program estab23 lished under section 404(l)) to be engaged in 

24 work for the month by reason of participa25 tion in vocational educational training (but 
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1 only with respect to such training that does 

2 not exceed 12 months with respect to any 

3 individual); or 

4 ‘‘(ii) deemed to be engaged in work for 

5 the month by reason of subparagraph (C) of 

6 this paragraph. 

7 ‘‘(E) STATE OPTION TO DEEM SINGLE PAR8 ENT CARING FOR A CHILD OR ADULT DEPENDENT

9 FOR CARE WITH A PHYSICAL OR MENTAL IMPAIR10 MENT TO BE MEETING ALL OR PART OF A FAM11 ILY’S WORK PARTICIPATION REQUIREMENTS FOR

12 A MONTH.—

13 ‘‘(i) IN GENERAL.—A State may count 

14 the number of hours per week that an adult 

15 recipient or minor child head of household 

16 who is the only parent or caretaker relative 

17 for a child or adult dependent for care with 

18 a physical or mental impairment engages 

19 in providing substantial ongoing care for 

20 such child or adult dependent for care if the 

21 State determines that—

22 ‘‘(I) the child or adult dependent 

23 for care has been verified through a 

24 medically acceptable clinical or diag25 nostic technique as having a signifi-
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1 cant physical or mental impairment or 

2 combination of impairments that re3 quire substantial ongoing care; 

4 ‘‘(II) the adult recipient or minor 

5 child head of household providing such 

6 care is the most appropriate means, as 

7 determined by the State, by which such 

8 care can be provided to the child or 

9 adult dependent for care; 

10 ‘‘(III) for each month in which 

11 this subparagraph applies to the adult 

12 recipient or minor child head of house13 hold, the adult recipient or minor child 

14 head of household is in compliance 

15 with the requirements of the family’s 

16 self-sufficiency plan; and 

17 ‘‘(IV) the recipient is unable to 

18 participate fully in work activities, 

19 after consideration of whether there are 

20 supports accessible and available to the 

21 family for the care of the child or adult 

22 dependent for care. 

23 ‘‘(ii) TOTAL NUMBER OF HOURS LIM24 ITED TO BEING COUNTED AS 1 FAMILY.—In 

25 no event may a family that includes a re-
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1 cipient to which clause (i) applies be count2 ed as more than 1 family for purposes of 

3 determining monthly participation rates 

4 under subsection (b)(1)(B)(i). 

5 ‘‘(iii) STATE REQUIREMENTS.—In the 

6 case of a recipient to which clause (i) ap7 plies, the State shall—

8 ‘‘(I) conduct regular, periodic 

9 evaluations of the family of the adult 

10 recipient or minor child head of house11 hold; and 

12 ‘‘(II) include as part of the fam13 ily’s self-sufficiency plan, regular up14 dates on what special needs of the child 

15 or the adult dependent for care, includ16 ing substantial ongoing care, could be 

17 accommodated either by individuals 

18 other than the adult recipient or minor 

19 child head of household outside of the 

20 home. 

21 ‘‘(iv) RULE OF CONSTRUCTION.—Noth22 ing in this subparagraph shall be construed 

23 as prohibiting a State from including in a 

24 recipient’s self-sufficiency plan a require-
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1 ment to engage in work activities described 

2 in subsection (d). 

3 ‘‘(F) OPTIONAL MODIFICATION OF WORK RE4 QUIREMENTS FOR RECIPIENTS RESIDING IN

5 AREAS OF INDIAN COUNTRY OR AN ALASKAN NA6 TIVE VILLAGE WITH HIGH JOBLESSNESS.—If a 

7 State has included in the State plan a descrip8 tion of the State’s policies in areas of Indian 

9 country or an Alaskan Native village described 

10 in section 408(a)(7)(D), the State may define the 

11 activities that the State will treat as being work 

12 activities described in subsection (d) that a re13 cipient who resides in such an area and who is 

14 participating in such activities in accordance 

15 with a self-sufficiency plan under section 408(b) 

16 may engage in for purposes of satisfying work 

17 requirements under the State program and for 

18 purposes of determining monthly participation 

19 rates under subsection (b)(1)(B)(i).’’. 

20 (2) CONFORMING AMENDMENT RELATING TO AU21 THORITY TO DEEM SINGLE PARENT OF A CHILD OR

22 ADULT DEPENDENT FOR CARE WITH A PHYSICAL OR

23 MENTAL IMPAIRMENT DEEMED TO BE MEETING ALL

24 OR PART OF A FAMILY’S WORK PARTICIPATION RE25 QUIREMENTS FOR A MONTH.—Section 402(a)(1)(B) 
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1 (42 U.S.C. 602(a)(1)(B)), as amended by section 

2 101(a)(1)(B), is amended by adding at the end the 

3 following: 

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

5 criteria for applying section 407(c)(6)(E) to 

6 an adult recipient or minor child head of 

7 household who is the only parent or care8 taker relative for a child or adult dependent 

9 for care.’’. 

10 SEC. 110. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUF11 FICIENCY PLAN REQUIREMENTS; OTHER PRO12 HIBITIONS AND REQUIREMENTS. 

13 (a) UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUF14 FICIENCY PLAN REQUIREMENTS.—

15 (1) MODIFICATION OF STATE PLAN REQUIRE16 MENTS.—Section 402(a)(1)(A) (42 U.S.C. 

17 602(a)(1)(A)) is amended by striking clauses (ii) and 

18 (iii) and inserting the following: 

19 ‘‘(ii) Require a parent or caretaker re20 ceiving assistance under the program to en21 gage in work or alternative self-sufficiency 

22 activities (as defined by the State), con23 sistent with section 407(e)(2). 

24 ‘‘(iii) Require families receiving assist25 ance under the program to engage in activi-
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1 ties in accordance with family self-suffi2 ciency plans developed pursuant to section 

3 408(b).’’. 

4 (2) ESTABLISHMENT OF FAMILY SELF-SUFFI5 CIENCY PLANS.—

6 (A) IN GENERAL.—Section 408(b) (42 

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

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

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

10 made under section 403 shall—

11 ‘‘(A) make an initial screening and assess12 ment, in the manner deemed appropriate by the 

13 State, of the skills, prior work experience, edu14 cation obtained, work readiness, barriers to 

15 work, and employability of each adult or minor 

16 child head of household recipient of assistance in 

17 the family who—

18 ‘‘(i) has attained age 18; or 

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

20 obtained a certificate of high school equiva21 lency and is not attending secondary school; 

22 ‘‘(B) assess, in the manner deemed appro23 priate by the State, the work support and other 

24 assistance and family support services for which 

25 each family receiving assistance is eligible; and 
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•HR 4 RS 

1 ‘‘(C) assess, in the manner deemed appro2 priate by the State, the well-being of the children 

3 in the family, and, where appropriate, activities 

4 or resources to improve the well-being of the chil5 dren. 

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

7 the manner deemed appropriate by the State—

8 ‘‘(A) establish for each family that includes 

9 an individual described in paragraph (1)(A), in 

10 consultation as the State deems appropriate with 

11 the individual, a self-sufficiency plan that—

12 ‘‘(i) specifies activities described in the 

13 State plan submitted pursuant to section 

14 402, including work activities described in 

15 paragraph (1), (2), (3), (4), (5), (6), (7), 

16 (8), or (12) of section 407(d), as appro17 priate; 

18 ‘‘(ii) is designed to assist the family in 

19 achieving their maximum degree of self-suf20 ficiency, and 

21 ‘‘(iii) provides for the ongoing partici22 pation of the individual in the activities 

23 specified in the plan; 
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•HR 4 RS 

1 ‘‘(B) requires, at a minimum, each such in2 dividual to participate in activities in accord3 ance with the self-sufficiency plan; 

4 ‘‘(C) sets forth the appropriate supportive 

5 services the State intends to provide for the fam6 ily; 

7 ‘‘(D) establishes for the family a plan that 

8 addresses the issue of child well-being and, when 

9 appropriate, adolescent well-being, and that may 

10 include services such as domestic violence coun11 seling, mental health referrals, and parenting 

12 courses; and 

13 ‘‘(E) includes a section designed to assist 

14 the family by informing the family, in such 

15 manner as deemed appropriate by the State, of 

16 the work support and other assistance for which 

17 the family may be eligible including (but not 

18 limited to)—

19 ‘‘(i) the food stamp program estab20 lished under the Food Stamp Act of 1977 (7 

21 U.S.C. 2011 et seq.); 

22 ‘‘(ii) the medicaid program funded 

23 under title XIX; 

24 ‘‘(iii) the State children’s health insur25 ance program funded under title XXI; 
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1 ‘‘(iv) Federal or State funded child 

2 care, including child care funded under the 

3 Child Care Development Block Grant Act of 

4 1990 (42 U.S.C. 9858 et seq.) and funds 

5 made available under this title or title XX; 

6 ‘‘(v) the earned income tax credit 

7 under section 32 of the Internal Revenue 

8 Code of 1986; 

9 ‘‘(vi) the low-income home energy as10 sistance program established under the Low11 Income Home Energy Assistance Act of 

12 1981 (42 U.S.C. 8621 et seq.); 

13 ‘‘(vii) the special supplemental nutri14 tion program for women, infants, and chil15 dren established under section 17 of the 

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

17 1786); 

18 ‘‘(viii) programs conducted under the 

19 Workforce Investment Act of 1998 (29 

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

21 ‘‘(ix) low-income housing assistance 

22 programs. 

23 ‘‘(3) REVIEW.—

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

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

2 adult recipient or minor child head of 

3 household in the activities specified in the 

4 self-sufficiency plan, and regularly review 

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

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

8 plan and activities required under the plan 

9 as the State deems appropriate in consulta10 tion with the family. 

11 ‘‘(B) PRIOR TO THE IMPOSITION OF A SANC12 TION.—Prior to imposing a sanction against an 

13 adult recipient, minor child head of household, 

14 or a family for failure to comply with a require15 ment of the self-sufficiency plan or the State pro16 gram funded under this part, the State shall, to 

17 the extent determined appropriate by the State—

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

19 and 

20 ‘‘(ii) make a good faith effort (as de21 fined by the State) to consult with the fam22 ily. 

23 ‘‘(4) STATE DISCRETION.—A State shall have 

24 sole discretion, consistent with section 407, to define 

25 and design activities for families for purposes of this 
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1 subsection, to develop methods for monitoring and re2 viewing progress pursuant to this subsection, and to 

3 make modifications to the plan as the State deems 

4 appropriate to assist the individual in increasing 

5 their degree of self-sufficiency. 

6 ‘‘(5) APPLICATION TO PARTIALLY-SANCTIONED

7 FAMILIES.—The requirements of this subsection shall 

8 apply in the case of a family that includes an adult 

9 or minor child head of household recipient of assist10 ance who is subject to a partial sanction. 

11 ‘‘(6) TIMING.—The State shall initiate screening 

12 and assessment and the establishment of a family self13 sufficiency plan in accordance with the requirements 

14 of this subsection— 

15 ‘‘(A) in the case of a family that, as of the 

16 date of enactment of the Personal Responsibility 

17 and Individual Development for Everyone Act, is 

18 not receiving assistance from the State program 

19 funded under this part, not later than the later 

20 of—

21 ‘‘(i) 1 year after such date of enact22 ment; or 

23 ‘‘(ii) 60 days after the family first re24 ceives assistance on the basis of the most re25 cent application for assistance; and 
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1 ‘‘(B) in the case of a family that, as of such 

2 date, is receiving assistance under the State pro3 gram funded under this part, not later than 1 

4 year after such date of enactment. 

5 ‘‘(7) RULE OF INTERPRETATION.—Nothing in 

6 this subsection shall preclude a State from—

7 ‘‘(A) requiring participation in work and 

8 any other activities the State deems appropriate 

9 for helping families achieve self-sufficiency and 

10 improving child well-being; or 

11 ‘‘(B) using job search or other appropriate 

12 job readiness or work activities to assess the em13 ployability of individuals and to determine ap14 propriate future engagement activities.’’.

15 (B) PENALTY FOR FAILURE TO COMPLY

16 WITH FAMILY SELF-SUFFICIENCY PLAN REQUIRE17 MENTS.—

18 (i) IN GENERAL.—Section 409(a)(3) 

19 (42 U.S.C. 609(a)(3)) is amended—

20 (I) in the paragraph heading, by 

21 inserting ‘‘OR COMPLY WITH FAMILY

22 SELF-SUFFICIENCY PLAN REQUIRE23 MENTS’’ after ‘‘RATES’’; 

24 (II) in subparagraph (A), by in25 serting ‘‘or 408(b)’’ after ‘‘407(a)’’; and 
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1 (III) by striking subparagraph 

2 (C) and inserting the following: 

3 ‘‘(C) PENALTY BASED ON SEVERITY OF

4 FAILURE.—

5 ‘‘(i) FAILURE TO SATISFY MINIMUM

6 PARTICIPATION RATE.—If, with respect to 

7 fiscal year 2005 or any fiscal year there8 after, the Secretary finds that a State has 

9 failed or is failing to substantially comply 

10 with the requirements of section 407(a) for 

11 that fiscal year, the Secretary shall impose 

12 reductions under subparagraph (A) with re13 spect to the immediately succeeding fiscal 

14 year based on the degree of substantial non15 compliance. In assessing the degree of sub16 stantial noncompliance under section 

17 407(a) for a fiscal year, the Secretary shall 

18 take into account factors such as—

19 ‘‘(I) the degree to which the State 

20 missed the minimum participation 

21 rate for that fiscal year; 

22 ‘‘(II) the change in the number of 

23 individuals who are engaged in work 

24 in the State since the prior fiscal year; 

25 and 
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1 ‘‘(III) the number of consecutive 

2 fiscal years in which the State failed to 

3 reach the minimum participation rate. 

4 ‘‘(ii) FAILURE TO COMPLY WITH SELF5 SUFFICIENCY PLAN REQUIREMENTS.—If, 

6 with respect to fiscal year 2005 or any fis7 cal year thereafter, the Secretary finds that 

8 a State has failed or is failing to substan9 tially comply with the requirements of sec10 tion 408(b) for that fiscal year, the Sec11 retary shall impose reductions under sub12 paragraph (A) with respect to the imme13 diately succeeding fiscal year based on the 

14 degree of substantial noncompliance. In as15 sessing the degree of substantial noncompli16 ance under section 408(b), the Secretary 

17 shall take into account factors such as—

18 ‘‘(I) the number or percentage of 

19 families for which a self-sufficiency 

20 plan is not established in a timely 

21 fashion for that fiscal year; 

22 ‘‘(II) the duration of the delays in 

23 establishing a self-sufficiency plan dur24 ing that fiscal year; 
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1 ‘‘(III) whether the failures are iso2 lated and nonrecurring; and 

3 ‘‘(IV) the existence of systems de4 signed to ensure that self-sufficiency 

5 plans are established for all families in 

6 a timely fashion and that families’ 

7 progress under such plans is mon8 itored. 

9 ‘‘(iii) AUTHORITY TO REDUCE THE

10 PENALTY.—The Secretary may reduce the 

11 penalty that would otherwise apply under 

12 this paragraph if the substantial non13 compliance is due to circumstances that 

14 caused the State to meet the criteria of sub15 clause (I), (II), or (III) of section 

16 403(b)(3)(A)(iii) or to satisfy the applicable 

17 duration requirement of section 

18 403(b)(3)(B) during the fiscal year, or if the 

19 noncompliance is due to extraordinary cir20 cumstances such as a natural disaster or re21 gional recession. The Secretary shall pro22 vide a written report to Congress to justify 

23 any waiver or penalty reduction due to 

24 such extraordinary circumstances.’’. 
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1 (ii) EFFECTIVE DATE.—The amend2 ments made by this subparagraph take ef3 fect on October 1, 2004. 

4 (3) GAO EVALUATION AND REPORT.—Not later 

5 than September 30, 2005, the Comptroller General of 

6 the United States shall submit a report to the Com7 mittee on Ways and Means of the House of Represent8 atives and the Committee on Finance of the Senate 

9 evaluating the implementation of the universal en10 gagement provisions under the temporary assistance 

11 to needy families program under part A of title IV 

12 of the Social Security Act (42 U.S.C. 601 et seq.), as 

13 added by the amendments made by this subsection. 

14 (4) RULES OF CONSTRUCTION.—Nothing in this 

15 subsection or the amendments made by this subsection 

16 shall be construed—

17 (A) as establishing a private right or cause 

18 of action against a State for failure to comply 

19 with the requirements imposed under this sub20 section or the amendments made by this sub21 section; or 

22 (B) as limiting claims that may be avail23 able under other Federal or State laws. 

24 (b) TRANSITIONAL COMPLIANCE FOR TEEN PAR25 ENTS.—
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1 (1) IN GENERAL.—Section 408(a)(5) (42 U.S.C. 

2 608(a)(5)) is amended—

3 (A) in subparagraph (A)(i), by striking 

4 ‘‘subparagraph (B)’’ and inserting ‘‘subpara5 graphs (B) and (C)’’; and 

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

7 ‘‘(C) AUTHORITY TO PROVIDE TEMPORARY

8 ASSISTANCE.—A State may use any part of a 

9 grant made under section 403 to provide assist10 ance to an individual described in clause (ii) of 

11 subparagraph (A) who would otherwise be pro12 hibited from receiving such assistance under 

13 clause (i) of that subparagraph, subparagraph 

14 (B), or section 408(a)(4) for not more than a 

15 single 60-day period in order to assist the indi16 vidual in meeting the requirement of clause (i) 

17 of subparagraph (A), subparagraph (B), or sec18 tion 408(a)(4) for receipt of such assistance.’’. 

19 (2) INCLUSION OF TRANSITIONAL LIVING YOUTH

20 PROJECTS AS A FORM OF ADULT-SUPERVISED SET21 TING.—Clause (i) of section 408(a)(5)(A) (42 U.S.C. 

22 608(a)(5)(A)(i)), as amended by paragraph (1), is 

23 amended—

24 (A) by striking ‘‘do not reside in a place of’’ 

25 and inserting ‘‘do not reside in a—
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1 ‘‘(I) place of’’; 

2 (B) by striking the period and inserting ‘‘; 

3 or’’; and 

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

5 ‘‘(II) transitional living youth 

6 project funded under a grant made 

7 under section 321 of the Runaway and 

8 Homeless Youth Act (42 U.S.C. 5714–

9 1).’’. 

10 SEC. 111. PENALTIES. 

11 Section 409(a)(7) (42 U.S.C. 609(a)(7)), as amended 

12 by section 3(g) of the Welfare Reform Extension Act of 2003 

13 (Public Law 108–040, 117 Stat. 837) is amended—

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

15 1998, 1999, 2000, 2001, 2002, 2003, or 2004’’ and in16 serting ‘‘fiscal year 2004, 2005, 2006, 2007, 2008, or 

17 2009’’; and 

18 (2) in subparagraph (B)(ii)—

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

20 year’’; and 

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

22 through 2003,’’. 

23 SEC. 112. DATA COLLECTION AND REPORTING. 

24 (a) CONTENTS OF REPORT.—Section 411(a)(1)(A) (42 

25 U.S.C. 611(a)(1)(A)) is amended—
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1 (1) in the matter preceding clause (i), by insert2 ing ‘‘and on families receiving assistance under State 

3 programs funded with other qualified State expendi4 tures (as defined in section 409(a)(7)(B)(i))’’ before 

5 the colon; 

6 (2) in clause (vii), by inserting ‘‘and minor par7 ent’’ after ‘‘of each adult’’; 

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

9 level’’; 

10 (4) in clause (ix), by striking ‘‘, and if the latter 

11 2, the amount received’’; 

12 (5) in clause (x)—

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

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

15 applicable, the reason for receipt of the assistance 

16 for a total of more than 60 months’’; 

17 (6) in clause (xi), by striking subclauses (I) 

18 through (VII) and inserting the following: 

19 ‘‘(I) Subsidized private sector em20 ployment. 

21 ‘‘(II) Unsubsidized employment. 

22 ‘‘(III) Public sector employment, 

23 supervised work experience, or super24 vised community service. 

25 ‘‘(IV) On-the-job training. 
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1 ‘‘(V) Job search and placement. 

2 ‘‘(VI) Training. 

3 ‘‘(VII) Education. 

4 ‘‘(VIII) Other activities directed 

5 at the purposes of this part, as speci6 fied in the State plan submitted pursu7 ant to section 402.’’; 

8 (7) in clause (xii), by inserting ‘‘and progress to9 ward universal engagement’’ after ‘‘participation 

10 rates’’; 

11 (8) in clause (xiii), by striking ‘‘type and’’ before 

12 ‘‘amount of assistance’’; 

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

14 and redesignating subclauses (III) through (V) as sub15 clauses (II) through (IV), respectively; and 

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

17 ‘‘(xviii) The date the family first re18 ceived assistance from the State program on 

19 the basis of the most recent application for 

20 such assistance.

21 ‘‘(xix) Whether a self-sufficiency plan 

22 is established for the family in accordance 

23 with section 408(b). 

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

25 family, the marital status of the parents at 
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1 the birth of the child, and if the parents 

2 were not then married, whether the pater3 nity of the child has been established.’’. 

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

5 U.S.C. 611(a)(1)(B)) is amended—

6 (1) in clause (i)—

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

8 ‘‘samples’’; and 

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

10 that the Secretary may designate core data ele11 ments that must be reported on all families’’; 

12 and 

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

14 part’’ and inserting ‘‘described in subparagraph (A)’’. 

15 (c) REPORT ON FAMILIES THAT BECOME INELIGIBLE

16 TO RECEIVE ASSISTANCE.—Section 411(a) (42 U.S.C. 

17 611(a)) is amended—

18 (1) by striking paragraph (5); 

19 (2) by redesignating paragraph (6) as para20 graph (5); and 

21 (3) by inserting after paragraph (5) (as so redes22 ignated) the following: 

23 ‘‘(6) REPORT ON FAMILIES THAT BECOME INELI24 GIBLE TO RECEIVE ASSISTANCE.—The report required 

25 by paragraph (1) for a fiscal quarter shall include for 
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1 each month in the quarter the number of families and 

2 total number of individuals that, during the month, 

3 became ineligible to receive assistance under the State 

4 program funded under this part (broken down by the 

5 number of families that become so ineligible due to 

6 earnings, changes in family composition that result 

7 in increased earnings, sanctions, time limits, or other 

8 specified reasons).’’. 

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

10 611(a)(7)) is amended—

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

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

13 (2) by striking ‘‘subsection’’ and inserting ‘‘sec14 tion’’; and 

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

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

17 Governors’ Association, the American Public Human 

18 Services Association, the National Conference of State 

19 Legislatures, and others in defining the data ele20 ments.’’. 

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

22 (42 U.S.C. 611) is amended—

23 (1) by redesignating subsection (b) as subsection 

24 (e); and 
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1 (2) by inserting after subsection (a) the fol2 lowing: 

3 ‘‘(b) ANNUAL REPORTS ON PROGRAM CHARACTERIS4 TICS.—Not later than 90 days after the end of fiscal year 

5 2004 and each succeeding fiscal year, each eligible State 

6 shall submit to the Secretary a report on the characteristics 

7 of the State program funded under this part and other State 

8 programs funded with qualified State expenditures (as de9 fined in section 409(a)(7)(B)(i)). The report shall include, 

10 with respect to each such program, the program name, a 

11 description of program activities, the program purpose, the 

12 program eligibility criteria, the sources of program funding, 

13 the number of program beneficiaries, sanction policies, and 

14 any program work requirements. 

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

16 than 3 months after the end of each calendar month that 

17 begins 1 year or more after the date of enactment of this 

18 subsection, each eligible State shall submit to the Secretary 

19 a report on the number of families and total number of in20 dividuals receiving assistance in the calendar month under 

21 the State program funded under this part and under other 

22 State programs funded with qualified State expenditures 

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

24 ‘‘(d) ANNUAL REPORT ON PERFORMANCE IMPROVE25 MENT.—Beginning with fiscal year 2005, not later than 
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1 January 1 of each fiscal year, each eligible State shall sub2 mit to the Secretary a report on achievement and improve3 ment during the preceding fiscal year under the perform4 ance goals and measures under the State program funded 

5 under this part with respect to each of the matters described 

6 in section 402(a)(1)(A)(v).’’. 

7 (f) ANNUAL REPORTS TO CONGRESS BY THE SEC8 RETARY.—Section 411(e) (42 U.S.C. 611(e)), as so redesig9 nated by subsection (e) of this section, is amended—

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

11 striking ‘‘and each fiscal year thereafter’’ and insert12 ing ‘‘and not later than July 1 of each fiscal year 

13 thereafter’’; 

14 (2) in paragraph (2), by striking ‘‘families ap15 plying for assistance,’’ and by striking the last 

16 comma; and 

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

18 programs funded with qualified State expenditures 

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

20 semicolon. 

21 SEC. 113. DIRECT FUNDING AND ADMINISTRATION BY IN22 DIAN TRIBES. 

23 (a) FUNDING FOR TRIBAL TANF PROGRAMS.—

24 (1) REAUTHORIZATION OF TRIBAL FAMILY AS25 SISTANCE GRANTS.—Section 412(a)(1)(A) (42 U.S.C. 
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1 612(a)(1)(A)), as amended by section 3(h) of the Wel2 fare Reform Extension Act of 2003, is amended by 

3 striking ‘‘1997, 1998, 1999, 2000, 2001, 2002, and 

4 2003’’ and inserting ‘‘2004 through 2008’’. 

5 (2) GRANTS FOR INDIAN TRIBES THAT RECEIVED

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

7 612(a)(2)(A)), as so amended, is amended by striking 

8 ‘‘1997, 1998, 1999, 2000, 2001, 2002, and 2003’’ and 

9 inserting ‘‘2004 through 2008’’. 

10 (b) TRIBAL TANF IMPROVEMENT FUND.—Section 

11 412(a) (42 U.S.C. 612(a)) is amended by adding at the end 

12 the following: 

13 ‘‘(4) TRIBAL TANF IMPROVEMENT FUND.—

14 ‘‘(A) ESTABLISHMENT.—The Secretary shall 

15 establish a fund for purposes of carrying out any 

16 of the following activities: 

17 ‘‘(i) Providing technical assistance to 

18 Indian tribes considering applying to carry 

19 out, or that are carrying out, a tribal fam20 ily assistance plan under this section in 

21 order to help such tribes establish and oper22 ate strong and effective tribal family assist23 ance plans under this section that will 

24 allow families receiving assistance under 
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1 such plans achieve the highest measure of 

2 self-sufficiency. 

3 ‘‘(ii) Awarding competitive grants di4 rectly to Indian tribes carrying out a tribal 

5 family assistance plan under this section 

6 for purposes of conducting programs and 

7 activities that would substantially improve 

8 the operation and effectiveness of such plans 

9 and the ability of such tribes to achieve the 

10 purposes of the program under this part as 

11 described in section 401(a). 

12 ‘‘(iii) Awarding competitive grants di13 rectly to Indian tribes carrying out a tribal 

14 family assistance plan under this section to 

15 support tribal economic development activi16 ties that would significantly assist families 

17 receiving assistance under the State pro18 gram funded under this part or a tribal 

19 family assistance plan obtain employment 

20 and achieve self-sufficiency. 

21 ‘‘(iv) Conducting, directly or through 

22 grants, contracts, or interagency agree23 ments, research and development to improve 

24 knowledge about tribal family assistance 

25 programs conducted under this section and 
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1 challenges faced by such programs in order 

2 to improve the effectiveness of such pro3 grams. 

4 ‘‘(B) AUTHORIZATION OF APPROPRIA5 TIONS.—There are authorized to be appropriated 

6 to the Secretary to carry out this paragraph, 

7 $100,000,000 for each of fiscal years 2004 

8 through 2008.’’. 

9 SEC. 114. RESEARCH, EVALUATIONS, AND NATIONAL STUD10 IES. 

11 (a) SECRETARY’S FUND FOR RESEARCH, DEMONSTRA12 TIONS, AND TECHNICAL ASSISTANCE.—Section 413 (42 

13 U.S.C. 613), as amended by section 101(d), is further 

14 amended by adding at the end the following: 

15 ‘‘(l) FUNDING FOR RESEARCH, DEMONSTRATIONS, AND

16 TECHNICAL ASSISTANCE.—

17 ‘‘(1) APPROPRIATION.—

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

19 the Treasury of the United States not otherwise 

20 appropriated, there are appropriated 

21 $100,000,000 for each of fiscal years 2004 

22 through 2008, which shall remain available to 

23 the Secretary until expended. 

24 ‘‘(B) USE OF FUNDS.—
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1 ‘‘(i) IN GENERAL.—Funds appro2 priated under subparagraph (A) shall be 

3 used for the purpose of—

4 ‘‘(I) conducting or supporting re5 search and demonstration projects by 

6 public or private entities; or 

7 ‘‘(II) providing technical assist8 ance in connection with a purpose of 

9 the program funded under this part, as 

10 described in section 401(a), to States, 

11 Indian tribal organizations, sub-State 

12 entities, and such other entities as the 

13 Secretary may specify. 

14 ‘‘(ii) REQUIREMENT.—Not less than 80 

15 percent of the funds appropriated under 

16 subparagraph (A) for a fiscal year shall be 

17 expended for the purpose of conducting or 

18 supporting research and demonstration 

19 projects, or for providing technical assist20 ance, in connection with activities described 

21 in section 403(a)(2)(B). Funds appro22 priated under subparagraph (A) and ex23 pended in accordance with this clause shall 

24 be in addition to any other funds made 
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1 available under this part for activities de2 scribed in section 403(a)(2)(B). 

3 ‘‘(2) SECRETARY’S AUTHORITY.—The Secretary 

4 may conduct activities authorized by this subsection 

5 directly or through grants, contracts, or interagency 

6 agreements with public or private entities. 

7 ‘‘(3) REQUIREMENT FOR USE OF FUNDS.—The 

8 Secretary shall not pay any funds appropriated 

9 under paragraph (1)(A) to an entity for the purpose 

10 of conducting or supporting research and demonstra11 tion projects involving activities described in section 

12 403(a)(2)(B) unless the entity complies with the re13 quirements of section 403(a)(2)(E).’’. 

14 (b) FUNDING OF STUDIES AND DEMONSTRATIONS.—

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

16 matter preceding subparagraph (A) by striking ‘‘1997 

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

18 (c) PROGRAM COORDINATION DEMONSTRATION

19 PROJECTS.—

20 (1) PURPOSE.—The purpose of this subsection is 

21 to establish a program of demonstration projects in a 

22 State or portion of a State to coordinate assistance 

23 provided under qualified programs for the purpose of 

24 supporting working individuals and families, helping 

25 families escape welfare dependency, promoting child 
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1 well-being, or helping build stronger families, using 

2 innovative approaches to strengthen service systems 

3 and provide more coordinated and effective service de4 livery. 

5 (2) DEFINITIONS.—In this subsection: 

6 (A) QUALIFIED PROGRAM.—The term 

7 ‘‘qualified program’’ means—

8 (i) a program under part A of title IV 

9 of the Social Security Act (42 U.S.C. 601 et 

10 seq.); 

11 (ii) the program under title XX of the 

12 Social Security Act (42 U.S.C. 1397 et 

13 seq.); and 

14 (iii) child care assistance funded under 

15 section 418 of the Social Security Act (42 

16 U.S.C. 618). 

17 (B) SECRETARY.—The term ‘‘Secretary’’ 

18 means the Secretary of Health and Human Serv19 ices. 

20 (3) APPLICATION REQUIREMENTS.—The head of 

21 a State entity or of a sub-State entity administering 

22 2 or more qualified programs proposed to be included 

23 in a demonstration project under this subsection shall 

24 (or, if the project is proposed to include qualified pro25 grams administered by 2 or more such entities, the 
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1 heads of the administering entities (each of whom 

2 shall be considered an applicant for purposes of this 

3 subsection) shall jointly) submit to the Secretary an 

4 application that contains the following: 

5 (A) PROGRAMS INCLUDED.—A statement 

6 identifying each qualified program to be in7 cluded in the project, and describing how the 

8 purposes of each such program will be achieved 

9 by the project. 

10 (B) POPULATION SERVED.—A statement 

11 identifying the population to be served by the 

12 project and specifying the eligibility criteria to 

13 be used. 

14 (C) DESCRIPTION AND JUSTIFICATION.—A 

15 detailed description of the project, including—

16 (i) a description of how the project is 

17 expected to improve or enhance achievement 

18 of the purposes of the programs to be in19 cluded in the project, from the standpoint of 

20 quality, of cost-effectiveness, or of both; and 

21 (ii) a description of the performance 

22 objectives for the project, including any pro23 posed modifications to the performance 

24 measures and reporting requirements used 

25 in the programs. 
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1 (D) WAIVERS REQUESTED.—A description 

2 of the statutory and regulatory requirements 

3 with respect to which a waiver is requested in 

4 order to carry out the project, and a justification 

5 of the need for each such waiver. 

6 (E) COST NEUTRALITY.—Such information 

7 and assurances as necessary to establish to the 

8 satisfaction of the Secretary, in consultation 

9 with the Director of the Office of Management 

10 and Budget, that the proposed project is reason11 ably expected to meet the applicable cost neu12 trality requirements of paragraph (4)(E). 

13 (F) EVALUATION AND REPORTS.—An assur14 ance that the applicant will—

15 (i) obtain an evaluation by an inde16 pendent contractor of the effectiveness of the 

17 project using an evaluation design that, to 

18 the maximum extent feasible, includes ran19 dom assignment of clients (or entities serv20 ing such clients) to service delivery and con21 trol groups; and 

22 (ii) make interim and final reports to 

23 the Secretary, at such times and in such 

24 manner as the Secretary may require. 
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1 (G) OTHER INFORMATION AND ASSUR2 ANCES.—Such other information and assurances 

3 as the Secretary may require. 

4 (4) APPROVAL OF APPLICATIONS.—

5 (A) IN GENERAL.—The Secretary with re6 spect to a qualified program that is identified in 

7 an application submitted pursuant to subsection 

8 (c) may approve the application and, except as 

9 provided in subparagraph (B), waive any re10 quirement applicable to the program, to the ex11 tent consistent with this subsection and necessary 

12 and appropriate for the conduct of the dem13 onstration project proposed in the application, if 

14 the Secretary determines that the project—

15 (i) has a reasonable likelihood of 

16 achieving the objectives of the programs to 

17 be included in the project; 

18 (ii) may reasonably be expected to 

19 meet the applicable cost neutrality require20 ments of subparagraph (E), as determined 

21 by the Director of the Office of Management 

22 and Budget; 

23 (iii) includes the coordination of 2 or 

24 more qualified programs; and 
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1 (iv) provides for an independent eval2 uation that includes random assignment to 

3 the maximum extent feasible, as described 

4 in paragraph (3)(F), and which the Sec5 retary determines to be appropriate for as6 sessing the effectiveness of the project. 

7 (B) PROVISIONS EXCLUDED FROM WAIVER

8 AUTHORITY.—A waiver shall not be granted 

9 under subparagraph (A)—

10 (i) with respect to any provision of law 

11 relating to—

12 (I) civil rights or prohibition of 

13 discrimination; 

14 (II) purposes or goals of any pro15 gram; 

16 (III) maintenance of effort re17 quirements; 

18 (IV) health or safety; 

19 (V) labor standards under the 

20 Fair Labor Standards Act of 1938; or 

21 (VI) environmental protection; 

22 (ii) in the case of child care assistance 

23 funded under section 418 of the Social Secu24 rity Act (42 U.S.C. 618), with respect to the 

25 requirement under the first sentence of sub-
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1 section (b)(1) of that section that funds re2 ceived by a State under that section shall 

3 only be used to provide child care assist4 ance; 

5 (iii) with respect to any requirement 

6 that a State pass through to a sub-State en7 tity part or all of an amount paid to the 

8 State; 

9 (iv) if the waiver would waive any 

10 funding restriction or limitation provided 

11 in an appropriations Act, or would have the 

12 effect of transferring appropriated funds 

13 from 1 appropriations account to another; 

14 or 

15 (v) except as otherwise provided by 

16 statute, if the waiver would waive any 

17 funding restriction applicable to a program 

18 authorized under an Act which is not an 

19 appropriations Act (but not including pro20 gram requirements such as application pro21 cedures, performance standards, reporting 

22 requirements, or eligibility standards), or 

23 would have the effect of transferring funds 

24 from a program for which there is direct 

25 spending (as defined in section 250(c)(8) of 
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1 the Balanced Budget and Emergency Def2 icit Control Act of 1985) to another pro3 gram. 

4 (C) 10 STATE LIMITATION.—The Director of 

5 the Office of Management and Budget shall es6 tablish a procedure for ensuring that not more 

7 than 10 States (including any portion of a 

8 State) conduct a demonstration project under 

9 this subsection. 

10 (D) AGREEMENT OF SECRETARY RE11 QUIRED.—

12 (i) IN GENERAL.—An applicant may 

13 not conduct a demonstration project under 

14 this subsection unless the Secretary, with re15 spect to each qualified program proposed to 

16 be included in the project, has approved the 

17 application to conduct the project. 

18 (ii) AGREEMENT WITH RESPECT TO

19 FUNDING AND IMPLEMENTATION.—Before 

20 approving an application to conduct a dem21 onstration project under this subsection, the 

22 Secretary shall have in place an agreement 

23 with the applicant with respect to the pay24 ment of funds and responsibilities required 

25 of the Secretary with respect to the project. 
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1 (E) COST-NEUTRALITY REQUIREMENT.—

2 (i) GENERAL RULE.—Notwithstanding 

3 any other provision of law (except as pro4 vided in clause (ii)), the total of the 

5 amounts that may be paid by the Federal 

6 Government for a fiscal year with respect to 

7 the programs in the State in which an enti8 ty conducting a demonstration project 

9 under this subsection is located that are af10 fected by the project shall not exceed the es11 timated total amount that the Federal Gov12 ernment would have paid for the fiscal year 

13 with respect to the programs if the project 

14 had not been conducted, as determined by 

15 the Director of the Office of Management 

16 and Budget. 

17 (ii) SPECIAL RULE.—If an applicant 

18 submits to the Director of the Office of Man19 agement and Budget a request to apply the 

20 rules of this clause to the programs in the 

21 State in which the applicant is located that 

22 are affected by a demonstration project pro23 posed in an application submitted by the 

24 applicant pursuant to this section, during 

25 such period of not more than 5 consecutive 
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1 fiscal years in which the project is in effect, 

2 and the Director determines, on the basis of 

3 supporting information provided by the ap4 plicant, to grant the request, then, notwith5 standing any other provision of law, the 

6 total of the amounts that may be paid by 

7 the Federal Government for the period with 

8 respect to the programs shall not exceed the 

9 estimated total amount that the Federal 

10 Government would have paid for the period 

11 with respect to the programs if the project 

12 had not been conducted. 

13 (F) 90-DAY APPROVAL DEADLINE.—

14 (i) IN GENERAL.—If the Secretary re15 ceives an application to conduct a dem16 onstration project under this subsection and 

17 does not disapprove the application within 

18 90 days after the receipt, then, subject to the 

19 10 State limitation under paragraph (3)—

20 (I) the Secretary is deemed to 

21 have approved the application for such 

22 period as is requested in the applica23 tion, except to the extent inconsistent 

24 with paragraph (5); and 
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1 (II) any waiver requested in the 

2 application which applies to a quali3 fied program that is identified in the 

4 application and is administered by the 

5 Secretary is deemed to be granted, ex6 cept to the extent inconsistent with 

7 subparagraph (B) or (E) of this para8 graph. 

9 (ii) DEADLINE EXTENDED IF ADDI10 TIONAL INFORMATION IS SOUGHT.—The 90-

11 day period referred to in clause (i) shall not 

12 include any period that begins with the date 

13 the Secretary requests the applicant to pro14 vide additional information with respect to 

15 the application and ends with the date the 

16 additional information is provided. 

17 (5) DURATION OF PROJECTS.—A demonstration 

18 project under this subsection may be approved for a 

19 term of not more than 5 years. 

20 (6) REPORTS TO CONGRESS.—

21 (A) REPORT ON DISPOSITION OF APPLICA22 TIONS.—Within 90 days after the date the Sec23 retary receives an application submitted pursu24 ant to this subsection, the Secretary shall submit 

25 to the Committee on Finance of the Senate and 
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1 the Committee on Ways and Means of the House 

2 of Representatives notice of the receipt, a de3 scription of the decision of the Secretary with re4 spect to the application, and the reasons for ap5 proving or disapproving the application. 

6 (B) REPORTS ON PROJECTS.—The Sec7 retary shall provide annually to Congress a re8 port concerning demonstration projects approved 

9 under this subsection, including—

10 (i) the projects approved for each ap11 plicant; 

12 (ii) the number of waivers granted 

13 under this subsection, and the specific statu14 tory provisions waived; 

15 (iii) how well each project for which a 

16 waiver is granted is improving or enhanc17 ing program achievement from the stand18 point of quality, cost-effectiveness, or both; 

19 (iv) how well each project for which a 

20 waiver is granted is meeting the perform21 ance objectives specified in paragraph 

22 (3)(C)(ii); 

23 (v) how each project for which a waiv24 er is granted is conforming with the cost-
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1 neutrality requirements of paragraph 

2 (4)(E); and 

3 (vi) to the extent the Secretary deems 

4 appropriate, recommendations for modifica5 tion of programs based on outcomes of the 

6 projects. 

7 SEC. 115. STUDY BY THE CENSUS BUREAU. 

8 (a) IN GENERAL.—Section 414(a) (42 U.S.C. 614(a)) 

9 is amended to read as follows: 

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

11 implement or enhance a longitudinal survey of program 

12 participation, developed in consultation with the Secretary 

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

14 assessment of the outcomes of continued welfare reform on 

15 the economic and child well-being of low-income families 

16 with children, including those who received assistance or 

17 services from a State program funded under this part, and, 

18 to the extent possible, shall provide State representative 

19 samples. The content of the survey should include such in20 formation as may be necessary to examine the issues of out21 of-wedlock childbearing, marriage, welfare dependency and 

22 compliance with work requirements, the beginning and end23 ing of spells of assistance, work, earnings and employment 

24 stability, and the well-being of children.’’. 
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1 (b) REPORTS ON THE WELL-BEING OF CHILDREN AND

2 FAMILIES.—Section 414 (42 U.S.C. 614), as amended by 

3 subsection (a), is amended—

4 (1) by redesignating subsection (b) as subsection 

5 (c); and 

6 (2) by inserting after subsection (a) the fol7 lowing: 

8 ‘‘(b) REPORTS ON THE WELL-BEING OF CHILDREN

9 AND FAMILIES.—

10 ‘‘(1) IN GENERAL.—Not later than 24 months 

11 after the date of enactment of the Personal Responsi12 bility and Individual Development for Everyone Act, 

13 the Secretary of Commerce shall prepare and submit 

14 to the Committee on Ways and Means of the House 

15 of Representatives and the Committee on Finance of 

16 the Senate a report on the well-being of children and 

17 families using data collected under subsection (a). 

18 ‘‘(2) SECOND REPORT.—Not later than 60 

19 months after such date of enactment, the Secretary of 

20 Commerce shall submit a second report to the Com21 mittee on Ways and Means of the House of Represent22 atives and the Committee on Finance of the Senate on 

23 the well-being of children and families using data col24 lected under subsection (a). 
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1 ‘‘(3) INCLUSION OF COMPARABLE MEASURES.—

2 Where comparable measures for data collected under 

3 subsection (a) exist in surveys previously adminis4 tered by the Bureau of the Census, appropriate com5 parisons shall be made and included in each report 

6 required under this subsection on the well-being of 

7 children and families to assess changes in such meas8 ures.’’. 

9 (c) APPROPRIATION.—Section 414(c) (42 U.S.C. 

10 614(c)), as redesignated by subsection (b)(1) and as amend11 ed by section 3(i) of the Welfare Reform Extension Act of 

12 2003 (Public Law 108–040, 117 Stat. 837), is amended by 

13 striking ‘‘1996,’’ and all that follows through the period and 

14 inserting ‘‘2004 through 2008 for payment to the Bureau 

15 of the Census to carry out this section. Funds appropriated 

16 under this subsection for a fiscal year shall remain avail17 able through fiscal year 2008 to carry out this section.’’. 

18 SEC. 116. FUNDING FOR CHILD CARE. 

19 (a) INCREASE IN MANDATORY FUNDING.—Section 

20 418(a)(3) (42 U.S.C. 618(a)(3)), as amended by section 4 

21 of the Welfare Reform Extension Act of 2003 (Public Law 

22 108–040, 117 Stat. 837), is amended—

23 (1) by striking ‘‘and’’ at the end of subpara24 graph (E); 
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1 (2) by striking the period at the end of subpara2 graph (F) and inserting ‘‘; and’’; and 

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

4 ‘‘(G) $2,917,000,000 for each of fiscal years 

5 2004 through 2008.’’. 

6 (b) INCLUSION OF COMMONWEALTH OF PUERTO RICO

7 IN RESERVATION OF CHILD CARE FUNDS.—

8 (1) IN GENERAL.—Section 418(a)(4) (42 U.S.C. 

9 618(a)(4)) is amended—

10 (A) in the paragraph heading, by striking 

11 ‘‘INDIAN TRIBES’’ and inserting ‘‘AMOUNTS RE12 SERVED’’; 

13 (B) by striking ‘‘The Secretary’’ and insert14 ing the following: 

15 ‘‘(A) INDIAN TRIBES.—The Secretary’’; and 

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

17 ‘‘(B) PUERTO RICO.—The Secretary shall 

18 reserve $10,000,000 of the amount appropriated 

19 under paragraph (3) for each fiscal year for pay20 ments to the Commonwealth of Puerto Rico for 

21 each such fiscal year for the purpose of providing 

22 child care assistance.’’. 

23 (2) CONFORMING AMENDMENT.—Section 

24 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by 
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1 section 108(b)(3), is amended by striking ‘‘or 413(f)’’ 

2 and inserting ‘‘413(f), or 418(a)(4)(B)’’. 

3 SEC. 117. DEFINITIONS. 

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

5 amended by adding at the end the following: 

6 ‘‘(6) ASSISTANCE.—

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

8 means payment, by cash, voucher, or other 

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

10 purpose of meeting a subsistence need of the in11 dividual or family (including food, clothing, 

12 shelter, and related items, but not including costs 

13 of transportation or child care). 

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

15 does not include a payment described in sub16 paragraph (A) to or for an individual or family 

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

18 by the State in accordance with regulations pre19 scribed by the Secretary).’’. 

20 (b) CONFORMING AMENDMENTS.—

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

22 amended by striking ‘‘assistance’’ and inserting 

23 ‘‘aid’’. 
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1 (2) Section 404(f) (42 U.S.C. 604(f)) is amended 

2 by striking ‘‘assistance’’ and inserting ‘‘benefits or 

3 services’’.

4 (3) Section 408(a)(5)(B)(i) (42 U.S.C. 

5 608(a)(5)(B)(i)) is amended in the heading by strik6 ing ‘‘ASSISTANCE’’ and inserting ‘‘AID’’. 

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

8 amended by striking ‘‘assistance’’ and inserting 

9 ‘‘aid’’. 

10 (5) Section 5(g)(2)(D) of the Food Stamp Act of 

11 1977 (7 U.S.C. 2014(g)(2)(D)) is amended—

12 (A) by striking ‘‘If the vehicle allowance’’ 

13 and inserting the following: 

14 ‘‘(i) IN GENERAL.—If the vehicle allow15 ance’’; and 

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

17 ‘‘(ii) DEFINITION OF ASSISTANCE.—In 

18 clause (i), the term ‘assistance’ shall have 

19 the meaning given such term in section 

20 260.31 of title 45 of the Code of Federal 

21 Regulations, as in effect on June 1, 2002.’’. 

22 SEC. 118. RESPONSIBLE FATHERHOOD PROGRAM. 

23 (a) RESPONSIBLE FATHERHOOD PROGRAM.—

24 (1) FINDINGS.—Congress makes the following 

25 findings: 
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1 (A) Nearly 24,000,000 children in the 

2 United States, or 34 percent of all such children, 

3 live apart from their biological father. 

4 (B) Sixty percent of couples who divorce 

5 have at least 1 child. 

6 (C) The number of children living with only 

7 a mother increased from just over 5,000,000 in 

8 1960 to 17,000,000 in 1999, and between 1981 

9 and 1991 the percentage of children living with 

10 only 1 parent increased from 19 percent to 25 

11 percent. 

12 (D) Forty percent of children who live in 

13 households without a father have not seen their 

14 father in at least 1 year and 50 percent of such 

15 children have never visited their father’s home. 

16 (E) The most important factor in a child’s 

17 upbringing is whether the child is brought up in 

18 a loving, healthy, supportive environment. 

19 (F) Children who live without contact with 

20 their biological father are, in comparison to chil21 dren who have such contact—

22 (i) 5 times more likely to live in pov23 erty; 

24 (ii) more likely to bring weapons and 

25 drugs into the classroom; 
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1 (iii) twice as likely to commit crime; 

2 (iv) twice as likely to drop out of 

3 school; 

4 (v) more likely to commit suicide; 

5 (vi) more than twice as likely to abuse 

6 alcohol or drugs; and 

7 (vii) more likely to become pregnant as 

8 teenagers. 

9 (G) Violent criminals are overwhelmingly 

10 males who grew up without fathers. 

11 (H) Between 20 and 30 percent of families 

12 in poverty are headed by women who have suf13 fered domestic violence during the past year, and 

14 between 40 and 60 percent of women with chil15 dren receiving welfare were abused sometime 

16 during their life. 

17 (I) Responsible fatherhood includes active 

18 participation in financial support and child 

19 care, as well as the formation and maintenance 

20 of a positive, healthy, and nonviolent relation21 ship between father and child and a cooperative 

22 relationship between parents. 

23 (J) States should be encouraged to imple24 ment programs that provide support for respon25 sible fatherhood, promote marriage, and increase 
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1 the incidence of marriage, and should not be re2 stricted from implementing such programs. 

3 (K) Fatherhood programs should promote 

4 and provide support services for—

5 (i) loving and healthy relationships be6 tween parents and children; and 

7 (ii) cooperative parenting. 

8 (L) There is a social need to reconnect chil9 dren and fathers. 

10 (M) The promotion of responsible fatherhood 

11 and encouragement of healthy 2-parent married 

12 families should not—

13 (i) denigrate the standing or parenting 

14 efforts of single mothers or other caregivers; 

15 (ii) lessen the protection of children 

16 from abusive parents; or 

17 (iii) compromise the safety or health of 

18 the custodial parent; 

19 but should increase the chance that children will 

20 have 2 caring parents to help them grow up 

21 healthy and secure. 

22 (N) The promotion of responsible fatherhood 

23 must always recognize and promote the values of 

24 nonviolence. 
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1 (O) For the future of the United States and 

2 the future of our children, Congress, States, and 

3 local communities should assist parents to be4 come more actively involved in their children’s 

5 lives. 

6 (P) Child support is an important means 

7 by which a parent can take financial responsi8 bility for a child and emotional support is an 

9 important means by which a parent can take so10 cial responsibility for a child. 

11 (2) FATHERHOOD PROGRAM.—Title I of the Per12 sonal Responsibility and Work Opportunity Rec13 onciliation Act of 1996 (Public Law 104–193) is 

14 amended by adding at the end the following: 

15 ‘‘SEC. 117. FATHERHOOD PROGRAM. 

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

17 amended by inserting after part B the following: 

18 ‘‘ ‘PART C—RESPONSIBLE FATHERHOOD 

19 PROGRAM 

20 ‘‘ ‘SEC. 441. RESPONSIBLE FATHERHOOD GRANTS. 

21 ‘‘ ‘(a) GRANTS TO STATES TO CONDUCT DEMONSTRA22 TION PROGRAMS.—

23 ‘‘ ‘(1) AUTHORITY TO AWARD GRANTS.—

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

25 award grants to up to 10 eligible States to con-
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1 duct demonstration programs to carry out the 

2 purposes described in paragraph (2). 

3 ‘‘ ‘(B) ELIGIBLE STATE.—For purposes of 

4 this subsection, an eligible State is a State that 

5 submits to the Secretary the following: 

6 ‘‘ ‘(i) APPLICATION.—An application 

7 for a grant under this subsection, at such 

8 time, in such manner, and containing such 

9 information as the Secretary may require.

10 ‘‘ ‘(ii) STATE PLAN.—A State plan that 

11 includes the following: 

12 ‘‘ ‘(I) PROJECT DESCRIPTION.—A 

13 description of the programs or activi14 ties the State will fund under the 

15 grant, including a good faith estimate 

16 of the number and characteristics of 

17 clients to be served under such projects 

18 and how the State intends to achieve 

19 at least 2 of the purposes described in 

20 paragraph (2). 

21 ‘‘ ‘(II) COORDINATION EFFORTS.—

22 A description of how the State will co23 ordinate and cooperate with State and 

24 local entities responsible for carrying 

25 out other programs that relate to the 
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1 purposes intended to be achieved under 

2 the demonstration program, including 

3 as appropriate, entities responsible for 

4 carrying out jobs programs and pro5 grams serving children and families. 

6 ‘‘ ‘(III) RECORDS, REPORTS, AND

7 AUDITS.—An agreement to maintain 

8 such records, submit such reports, and 

9 cooperate with such reviews and audits 

10 as the Secretary finds necessary for 

11 purposes of oversight of the demonstra12 tion program. 

13 ‘‘ ‘(iii) CERTIFICATIONS.—The fol14 lowing certifications from the chief executive 

15 officer of the State: 

16 ‘‘ ‘(I) A certification that the State 

17 will use funds provided under the 

18 grant to promote at least 2 of the pur19 poses described in paragraph (2). 

20 ‘‘ ‘(II) A certification that the 

21 State will return any unused funds to 

22 the Secretary in accordance with the 

23 reconciliation process under paragraph 

24 (5). 
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1 ‘‘ ‘(III) A certification that the 

2 funds provided under the grant will be 

3 used for programs and activities that 

4 target low-income participants and 

5 that not less than 50 percent of the 

6 participants in each program or activ7 ity funded under the grant shall be—

8 ‘‘ ‘(aa) parents of a child who 

9 is, or within the past 24 months 

10 has been, a recipient of assistance 

11 or services under a State program 

12 funded under part A, D, or E of 

13 this title, title XIX, or the Food 

14 Stamp Act of 1977; or 

15 ‘‘ ‘(bb) parents, including an 

16 expectant parent or a married 

17 parent, whose income (after ad18 justment for court-ordered child 

19 support paid or received) does not 

20 exceed 150 percent of the poverty 

21 line. 

22 ‘‘ ‘(IV) A certification that the 

23 State has or will comply with the re24 quirements of paragraph (4). 
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1 ‘‘ ‘(V) A certification that funds 

2 provided to a State under this sub3 section shall not be used to supplement 

4 or supplant other Federal, State, or 

5 local funds that are used to support 

6 programs or activities that are related 

7 to the purposes described in paragraph 

8 (2). 

9 ‘‘ ‘(C) PREFERENCES AND FACTORS OF CON10 SIDERATION.—In awarding grants under this 

11 subsection, the Secretary shall take into consider12 ation the following: 

13 ‘‘ ‘(i) DIVERSITY OF ENTITIES USED TO

14 CONDUCT PROGRAMS AND ACTIVITIES.—The 

15 Secretary shall, to the extent practicable, 

16 achieve a balance among the eligible States 

17 awarded grants under this subsection with 

18 respect to the size, urban or rural location, 

19 and employment of differing or unique 

20 methods of the entities that the eligible 

21 States intend to use to conduct the pro22 grams and activities funded under the 

23 grants. 

24 ‘‘ ‘(ii) PRIORITY FOR CERTAIN

25 STATES.—The Secretary shall give priority 
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1 to awarding grants to eligible States that 

2 have—

3 ‘‘ ‘(I) demonstrated progress in 

4 achieving at least 1 of the purposes de5 scribed in paragraph (2) through pre6 vious State initiatives; or 

7 ‘‘ ‘(II) demonstrated need with re8 spect to reducing the incidence of out9 of-wedlock births or absent fathers in 

10 the State. 

11 ‘‘ ‘(2) PURPOSES.—The purposes described in 

12 this paragraph are the following: 

13 ‘‘ ‘(A) PROMOTING RESPONSIBLE FATHER14 HOOD THROUGH MARRIAGE PROMOTION.—To 

15 promote marriage or sustain marriage through 

16 activities such as counseling, mentoring, dissemi17 nating information about the benefits of mar18 riage and 2-parent involvement for children, en19 hancing relationship skills, education regarding 

20 how to control aggressive behavior, disseminating 

21 information on the causes of domestic violence 

22 and child abuse, marriage preparation pro23 grams, premarital counseling, marital inven24 tories, skills-based marriage education, financial 

25 planning seminars, including improving a fam-
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1 ily’s ability to effectively manage family business 

2 affairs by means such as education, counseling, 

3 or mentoring on matters related to family fi4 nances, including household management, budg5 eting, banking, and handling of financial trans6 actions and home maintenance, and divorce edu7 cation and reduction programs, including medi8 ation and counseling. 

9 ‘‘ ‘(B) PROMOTING RESPONSIBLE FATHER10 HOOD THROUGH PARENTING PROMOTION.—To 

11 promote responsible parenting through activities 

12 such as counseling, mentoring, and mediation, 

13 disseminating information about good parenting 

14 practices, skills-based parenting education, en15 couraging child support payments, and other 

16 methods. 

17 ‘‘ ‘(C) PROMOTING RESPONSIBLE FATHER18 HOOD THROUGH FOSTERING ECONOMIC STA19 BILITY OF FATHERS.—To foster economic sta20 bility by helping fathers improve their economic 

21 status by providing activities such as work first 

22 services, job search, job training, subsidized em23 ployment, job retention, job enhancement, and 

24 encouraging education, including career-advanc25 ing education, dissemination of employment ma-
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1 terials, coordination with existing employment 

2 services such as welfare-to-work programs, refer3 rals to local employment training initiatives, 

4 and other methods. 

5 ‘‘ ‘(3) RESTRICTION ON USE OF FUNDS.—No 

6 funds provided under this subsection may be used for 

7 costs attributable to court proceedings regarding mat8 ters of child visitation or custody, or for legislative 

9 advocacy. 

10 ‘‘ ‘(4) REQUIREMENTS FOR RECEIPT OF

11 FUNDS.—A State may not be awarded a grant under 

12 this section unless the State, as a condition of receiv13 ing funds under such a grant—

14 ‘‘ ‘(A) consults with experts in domestic vio15 lence or with relevant community domestic vio16 lence coalitions in developing such programs or 

17 activities; and 

18 ‘‘ ‘(B) describes in the application for a 

19 grant under this section—

20 ‘‘ ‘(i) how the programs or activities 

21 proposed to be conducted will address, as 

22 appropriate, issues of domestic violence; and 

23 ‘‘ ‘(ii) what the State will do, to the ex24 tent relevant, to ensure that participation 

25 in such programs or activities is voluntary, 
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1 and to inform potential participants that 

2 their involvement is voluntary. 

3 ‘‘ ‘(5) RECONCILIATION PROCESS.—

4 ‘‘ ‘(A) 3-YEAR AVAILABILITY OF AMOUNTS

5 ALLOTTED.—Each eligible State that receives a 

6 grant under this subsection for a fiscal year shall 

7 return to the Secretary any unused portion of 

8 the grant for such fiscal year not later than the 

9 last day of the second succeeding fiscal year, to10 gether with any earnings on such unused por11 tion. 

12 ‘‘ ‘(B) PROCEDURE FOR REDISTRIBUTION.—

13 The Secretary shall establish an appropriate 

14 procedure for redistributing to eligible States 

15 that have expended the entire amount of a grant 

16 made under this subsection for a fiscal year any 

17 amount that is returned to the Secretary by eli18 gible States under subparagraph (A). 

19 ‘‘ ‘(6) AMOUNT OF GRANTS.—

20 ‘‘ ‘(A) IN GENERAL.—Subject to subpara21 graph (B), the amount of each grant awarded 

22 under this subsection shall be an amount suffi23 cient to implement the State plan submitted 

24 under paragraph (1)(B)(ii). 
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1 ‘‘ ‘(B) MINIMUM AMOUNTS.—No eligible 

2 State shall—

3 ‘‘ ‘(i) in the case of the District of Co4 lumbia or a State other than the Common5 wealth of Puerto Rico, the United States 

6 Virgin Islands, Guam, American Samoa, 

7 and the Commonwealth of the Northern 

8 Mariana Islands, receive a grant for a fiscal 

9 year in an amount that is less than 

10 $1,000,000; and 

11 ‘‘ ‘(ii) in the case of the Commonwealth 

12 of Puerto Rico, the United States Virgin Is13 lands, Guam, American Samoa, and the 

14 Commonwealth of the Northern Mariana Is15 lands, receive a grant for a fiscal year in 

16 an amount that is less than $500,000. 

17 ‘‘ ‘(7) DEFINITION OF STATE.—In this subsection 

18 the term ‘State’ means each of the 50 States, the Dis19 trict of Columbia, the Commonwealth of Puerto Rico, 

20 the United States Virgin Islands, Guam, American 

21 Samoa, and the Commonwealth of the Northern Mar22 iana Islands. 

23 ‘‘ ‘(8) AUTHORIZATION OF APPROPRIATIONS.—

24 There is authorized to be appropriated $20,000,000 

25 for each of fiscal years 2004 through 2008 for pur-
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1 poses of making grants to eligible States under this 

2 subsection. 

3 ‘‘ ‘(b) GRANTS TO ELIGIBLE ENTITIES TO CONDUCT

4 DEMONSTRATION PROGRAMS.—

5 ‘‘ ‘(1) AUTHORITY TO AWARD GRANTS.—

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

7 award grants to eligible entities to conduct dem8 onstration programs to carry out the purposes 

9 described in subsection (a)(2). 

10 ‘‘ ‘(B) ELIGIBLE ENTITY.—For purposes of 

11 this subsection, an eligible entity is a local gov12 ernment, local public agency, community-based 

13 or nonprofit organization, or private entity, in14 cluding any charitable or faith-based organiza15 tion, or an Indian tribe (as defined in section 

16 419(4)), that submits to the Secretary the fol17 lowing: 

18 ‘‘ ‘(i) APPLICATION.—An application 

19 for a grant under this subsection, at such 

20 time, in such manner, and containing such 

21 information as the Secretary may require. 

22 ‘‘ ‘(ii) PROJECT DESCRIPTION.—A de23 scription of the programs or activities the 

24 entity intends to carry out with funds pro25 vided under the grant, including a good 
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1 faith estimate of the number and character2 istics of clients to be served under such pro3 grams or activities and how the entity in4 tends to achieve at least 2 of the purposes 

5 described in subsection (a)(2). 

6 ‘‘ ‘(iii) COORDINATION EFFORTS.—A 

7 description of how the entity will coordinate 

8 and cooperate with State and local entities 

9 responsible for carrying out other programs 

10 that relate to the purposes intended to be 

11 achieved under the demonstration program, 

12 including as appropriate, entities respon13 sible for carrying out jobs programs and 

14 programs serving children and families. 

15 ‘‘ ‘(iv) RECORDS, REPORTS, AND AU16 DITS.—An agreement to maintain such 

17 records, submit such reports, and cooperate 

18 with such reviews and audits as the Sec19 retary finds necessary for purposes of over20 sight of the demonstration program. 

21 ‘‘ ‘(v) CERTIFICATIONS.—The following 

22 certifications: 

23 ‘‘ ‘(I) A certification that the enti24 ty will use funds provided under the 
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1 grant to promote at least 2 of the pur2 poses described in subsection (a)(2). 

3 ‘‘ ‘(II) A certification that the en4 tity will return any unused funds to 

5 the Secretary in accordance with the 

6 reconciliation process under paragraph 

7 (3). 

8 ‘‘ ‘(III) A certification that the 

9 funds provided under the grant will be 

10 used for programs and activities that 

11 target low-income participants and 

12 that not less than 50 percent of the 

13 participants in each program or activ14 ity funded under the grant shall be—

15 ‘‘ ‘(aa) parents of a child who 

16 is, or within the past 24 months 

17 has been, a recipient of assistance 

18 or services under a State program 

19 funded under part A, D, or E of 

20 this title, title XIX, or the Food 

21 Stamp Act of 1977; or

22 ‘‘ ‘(bb) parents, including an 

23 expectant parent or a married 

24 parent, whose income (after ad25 justment for court-ordered child 
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1 support paid or received) does not 

2 exceed 150 percent of the poverty 

3 line. 

4 ‘‘ ‘(IV) A certification that the en5 tity has or will comply with the re6 quirements of paragraph (3). 

7 ‘‘ ‘(V) A certification that funds 

8 provided to an entity under this sub9 section shall not be used to supplement 

10 or supplant other Federal, State, or 

11 local funds provided to the entity that 

12 are used to support programs or activi13 ties that are related to the purposes de14 scribed in subsection (a)(2). 

15 ‘‘ ‘(C) PREFERENCES AND FACTORS OF CON16 SIDERATION.—In awarding grants under this 

17 subsection, the Secretary shall, to the extent 

18 practicable, achieve a balance among the eligible 

19 entities awarded grants under this subsection 

20 with respect to the size, urban or rural location, 

21 and employment of differing or unique methods 

22 of the entities. 

23 ‘‘ ‘(2) RESTRICTION ON USE OF FUNDS.—No 

24 funds provided under this subsection may be used for 

25 costs attributable to court proceedings regarding mat-
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1 ters of child visitation or custody, or for legislative 

2 advocacy. 

3 ‘‘ ‘(3) REQUIREMENTS FOR USE OF FUNDS.—The 

4 Secretary may not award a grant under this sub5 section to an eligible entity unless the entity, as a 

6 condition of receiving funds under such a grant—

7 ‘‘ ‘(A) consults with experts in domestic vio8 lence or with relevant community domestic vio9 lence coalitions in developing the programs or 

10 activities to be conducted with such funds 

11 awarded under the grant; and 

12 ‘‘ ‘(B) describes in the application for a 

13 grant under this section—

14 ‘‘ ‘(i) how the programs or activities 

15 proposed to be conducted will address, as 

16 appropriate, issues of domestic violence; and 

17 ‘‘ ‘(ii) what the entity will do, to the 

18 extent relevant, to ensure that participation 

19 in such programs or activities is voluntary, 

20 and to inform potential participants that 

21 their involvement is voluntary. 

22 ‘‘ ‘(4) RECONCILIATION PROCESS.—

23 ‘‘ ‘(A) 3-YEAR AVAILABILITY OF AMOUNTS

24 ALLOTTED.—Each eligible entity that receives a 

25 grant under this subsection for a fiscal year shall 
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1 return to the Secretary any unused portion of 

2 the grant for such fiscal year not later than the 

3 last day of the second succeeding fiscal year, to4 gether with any earnings on such unused por5 tion. 

6 ‘‘ ‘(B) PROCEDURE FOR REDISTRIBUTION.—

7 The Secretary shall establish an appropriate 

8 procedure for redistributing to eligible entities 

9 that have expended the entire amount of a grant 

10 made under this subsection for a fiscal year any 

11 amount that is returned to the Secretary by eli12 gible entities under subparagraph (A). 

13 ‘‘ ‘(5) AUTHORIZATION OF APPROPRIATIONS.—

14 There is authorized to be appropriated $30,000,000 

15 for each of fiscal years 2004 through 2008 for pur16 poses of making grants to eligible entities under this 

17 subsection. 

18 ‘‘ ‘SEC. 442. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE 

19 FATHERHOOD PROGRAMS. 

20 ‘‘ ‘(a) MEDIA CAMPAIGN NATIONAL CLEARINGHOUSE

21 FOR RESPONSIBLE FATHERHOOD.—

22 ‘‘ ‘(1) IN GENERAL.—From any funds appro23 priated under subsection (c), the Secretary shall con24 tract with a nationally recognized, nonprofit father-
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1 hood promotion organization described in subsection 

2 (b) to—

3 ‘‘ ‘(A) develop, promote, and distribute to 

4 interested States, local governments, public agen5 cies, and private entities a media campaign that 

6 encourages the appropriate involvement of par7 ents in the life of any child, with a priority for 

8 programs that specifically address the issue of re9 sponsible fatherhood; and 

10 ‘‘ ‘(B) develop a national clearinghouse to 

11 assist States and communities in efforts to pro12 mote and support marriage and responsible fa13 therhood by collecting, evaluating, and making 

14 available (through the Internet and by other 

15 means) to other States information regarding the 

16 media campaigns established under section 443. 

17 ‘‘ ‘(2) COORDINATION WITH DOMESTIC VIOLENCE

18 PROGRAMS.—The Secretary shall ensure that the na19 tionally recognized nonprofit fatherhood promotion 

20 organization with a contract under paragraph (1) co21 ordinates the media campaign developed under sub22 paragraph (A) of such paragraph and the national 

23 clearinghouse developed under subparagraph (B) of 

24 such paragraph with national, State, or local domes25 tic violence programs. 
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1 ‘‘ ‘(b) NATIONALLY RECOGNIZED, NONPROFIT FATHER2 HOOD PROMOTION ORGANIZATION DESCRIBED.—The na3 tionally recognized, nonprofit fatherhood promotion organi4 zation described in this subsection is an organization that 

5 has at least 4 years of experience in—

6 ‘‘ ‘(1) designing and disseminating a national 

7 public education campaign, as evidenced by the pro8 duction and successful placement of television, radio, 

9 and print public service announcements that promote 

10 the importance of responsible fatherhood, a track 

11 record of service to Spanish-speaking populations and 

12 historically underserved or minority populations, the 

13 capacity to fulfill requests for information and a 

14 proven history of fulfilling such requests, and a mech15 anism through which the public can request addi16 tional information about the campaign; and 

17 ‘‘ ‘(2) providing consultation and training to 

18 community-based organizations interested in imple19 menting fatherhood outreach, support, or skill devel20 opment programs with an emphasis on promoting 

21 married fatherhood as the ideal. 

22 ‘‘ ‘(c) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated $5,000,000 for each of fiscal 

24 years 2004 through 2008 to carry out this section. 
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1 ‘‘ ‘SEC. 443. BLOCK GRANTS TO STATES TO ENCOURAGE 

2 MEDIA CAMPAIGNS. 

3 ‘‘ ‘(a) DEFINITIONS.—In this section: 

4 ‘‘ ‘(1) BROADCAST ADVERTISEMENT.—The term 

5 ‘broadcast advertisement’ means a communication in6 tended to be aired by a television or radio broadcast 

7 station, including a communication intended to be 

8 transmitted through a cable channel. 

9 ‘‘ ‘(2) CHILD AT RISK.—The term ‘child at risk’ 

10 means each young child whose family income does not 

11 exceed the poverty line. 

12 ‘‘ ‘(3) POVERTY LINE.—The term ‘poverty line’ 

13 has the meaning given such term in section 673(2) of 

14 the Community Services Block Grant Act (42 U.S.C. 

15 9902(2)), including any revision required by such sec16 tion, that is applicable to a family of the size in17 volved. 

18 ‘‘ ‘(4) PRINTED OR OTHER ADVERTISEMENT.—

19 The term ‘printed or other advertisement’ includes 

20 any communication intended to be distributed 

21 through a newspaper, magazine, outdoor advertising 

22 facility, mailing, or any other type of general public 

23 advertising, but does not include any broadcast adver24 tisement. 

25 ‘‘ ‘(5) STATE.—The term ‘State’ means each of 

26 the 50 States, the District of Columbia, the Common-
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1 wealth of Puerto Rico, the United States Virgin Is2 lands, Guam, American Samoa, and the Common3 wealth of the Northern Mariana Islands. 

4 ‘‘ ‘(6) YOUNG CHILD.—The term ‘young child’ 

5 means an individual under age 5. 

6 ‘‘ ‘(b) STATE CERTIFICATIONS.—Not later than Octo7 ber 1 of each of fiscal year for which a State desires to 

8 receive an allotment under this section, the chief executive 

9 officer of the State shall submit to the Secretary a certifi10 cation that the State shall—

11 ‘‘ ‘(1) use such funds to promote the formation 

12 and maintenance of healthy 2-parent married fami13 lies, strengthen fragile families, and promote respon14 sible fatherhood through media campaigns conducted 

15 in accordance with the requirements of subsection (d); 

16 ‘‘ ‘(2) return any unused funds to the Secretary 

17 in accordance with the reconciliation process under 

18 subsection (e); and 

19 ‘‘ ‘(3) comply with the reporting requirements 

20 under subsection (f). 

21 ‘‘ ‘(c) PAYMENTS TO STATES.—For each of fiscal years 

22 2004 through 2008, the Secretary shall pay to each State 

23 that submits a certification under subsection (b), from any 

24 funds appropriated under subsection (i), for the fiscal year 
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1 an amount equal to the amount of the allotment determined 

2 for the fiscal year under subsection (g). 

3 ‘‘ ‘(d) ESTABLISHMENT OF MEDIA CAMPAIGNS.—Each 

4 State receiving an allotment under this section for a fiscal 

5 year shall use the allotment to conduct media campaigns 

6 as follows: 

7 ‘‘ ‘(1) CONDUCT OF MEDIA CAMPAIGNS.—

8 ‘‘ ‘(A) RADIO AND TELEVISION MEDIA CAM9 PAIGNS.—

10 ‘‘ ‘(i) PRODUCTION OF BROADCAST AD11 VERTISEMENTS.—At the option of the State, 

12 to produce broadcast advertisements that 

13 promote the formation and maintenance of 

14 healthy 2-parent married families, strength15 en fragile families, and promote responsible 

16 fatherhood. 

17 ‘‘ ‘(ii) AIRTIME CHALLENGE PRO18 GRAM.—At the option of the State, to estab19 lish an airtime challenge program under 

20 which the State may spend amounts allotted 

21 under this section to purchase time from a 

22 broadcast station to air a broadcast adver23 tisement produced under clause (i), but only 

24 if the State obtains an amount of time of 

25 the same class and during a comparable pe-
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1 riod to air the advertisement using non2 Federal contributions. 

3 ‘‘ ‘(B) OTHER MEDIA CAMPAIGNS.—At the 

4 option of the State, to conduct a media cam5 paign that consists of the production and dis6 tribution of printed or other advertisements that 

7 promote the formation and maintenance of 

8 healthy 2-parent married families, strengthen 

9 fragile families, and promote responsible father10 hood. 

11 ‘‘ ‘(2) ADMINISTRATION OF MEDIA CAMPAIGNS.—

12 A State may administer media campaigns funded 

13 under this section directly or through grants, con14 tracts, or cooperative agreements with public agencies, 

15 local governments, or private entities, including char16 itable and faith-based organizations. 

17 ‘‘ ‘(3) CONSULTATION WITH DOMESTIC VIOLENCE

18 ASSISTANCE CENTERS.—In developing broadcast and 

19 printed advertisements to be used in the media cam20 paigns conducted under paragraph (1), the State or 

21 other entity administering the campaign shall consult 

22 with representatives of State and local domestic vio23 lence centers. 

24 ‘‘ ‘(4) NON-FEDERAL CONTRIBUTIONS.—In this 

25 section, the term ‘non-Federal contributions’ includes 
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1 contributions by the State and by public and private 

2 entities. Such contributions may be in cash or in 

3 kind. Such term does not include any amounts pro4 vided by the Federal Government, or services assisted 

5 or subsidized to any significant extent by the Federal 

6 Government, or any amount expended by a State be7 fore October 1, 2003. 

8 ‘‘ ‘(e) RECONCILIATION PROCESS.—

9 ‘‘ ‘(1) 3-YEAR AVAILABILITY OF AMOUNTS ALLOT10 TED.—Each State that receives an allotment under 

11 this section shall return to the Secretary any unused 

12 portion of the amount allotted to a State for a fiscal 

13 year not later than the last day of the second suc14 ceeding fiscal year together with any earnings on such 

15 unused portion. 

16 ‘‘ ‘(2) PROCEDURE FOR REDISTRIBUTION OF UN17 USED ALLOTMENTS.—The Secretary shall establish an 

18 appropriate procedure for redistributing to States 

19 that have expended the entire amount allotted under 

20 this section any amount that is—

21 ‘‘ ‘(A) returned to the Secretary by States 

22 under paragraph (1); or 

23 ‘‘ ‘(B) not allotted to a State under this sec24 tion because the State did not submit a certifi-
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1 cation under subsection (b) by October 1 of a fis2 cal year. 

3 ‘‘ ‘(f) REPORTING REQUIREMENTS.—

4 ‘‘ ‘(1) MONITORING AND EVALUATION.—Each 

5 State receiving an allotment under this section for a 

6 fiscal year shall monitor and evaluate the media cam7 paigns conducted using funds made available under 

8 this section in such manner as the Secretary, in con9 sultation with the States, determines appropriate. 

10 ‘‘ ‘(2) ANNUAL REPORTS.—Not less frequently 

11 than annually, each State receiving an allotment 

12 under this section for a fiscal year shall submit to the 

13 Secretary reports on the media campaigns conducted 

14 using funds made available under this section at such 

15 time, in such manner, and containing such informa16 tion as the Secretary may require. 

17 ‘‘ ‘(g) AMOUNT OF ALLOTMENTS.—

18 ‘‘ ‘(1) IN GENERAL.—Except as provided in 

19 paragraph (2), of the amount appropriated for the 

20 purpose of making allotments under this section for a 

21 fiscal year, the Secretary shall allot to each State that 

22 submits a certification under subsection (b) for the 

23 fiscal year an amount equal to the sum of—

24 ‘‘ ‘(A) the amount that bears the same ratio 

25 to 50 percent of such funds as the number of 
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1 young children in the State (as determined by 

2 the Secretary based on the most current reliable 

3 data available) bears to the number of such chil4 dren in all States; and 

5 ‘‘ ‘(B) the amount that bears the same ratio 

6 to 50 percent of such funds as the number of 

7 children at risk in the State (as determined by 

8 the Secretary based on the most current reliable 

9 data available) bears to the number of such chil10 dren in all States. 

11 ‘‘ ‘(2) MINIMUM ALLOTMENTS.—No allotment for 

12 a fiscal year under this section shall be less than—

13 ‘‘ ‘(A) in the case of the District of Colum14 bia or a State other than the Commonwealth of 

15 Puerto Rico, the United States Virgin Islands, 

16 Guam, American Samoa, and the Common17 wealth of the Northern Mariana Islands, 1 per18 cent of the amount appropriated for the fiscal 

19 year under subsection (i); and 

20 ‘‘ ‘(B) in the case of the Commonwealth of 

21 Puerto Rico, the United States Virgin Islands, 

22 Guam, American Samoa, and the Common23 wealth of the Northern Mariana Islands, 0.5 per24 cent of such amount. 
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1 ‘‘ ‘(3) PRO RATA REDUCTIONS.—The Secretary 

2 shall make such pro rata reductions to the allotments 

3 determined under this subsection as are necessary to 

4 comply with the requirements of paragraph (2). 

5 ‘‘ ‘(h) EVALUATION.—

6 ‘‘ ‘(1) IN GENERAL.—The Secretary shall conduct 

7 an evaluation of the impact of the media campaigns 

8 funded under this section. 

9 ‘‘ ‘(2) REPORT.—Not later than December 31, 

10 2006, the Secretary shall report to Congress the re11 sults of the evaluation under paragraph (1). 

12 ‘‘ ‘(3) FUNDING.—Of the amount appropriated 

13 under subsection (i) for fiscal year 2004, $1,000,000 

14 of such amount shall be transferred and made avail15 able for purposes of conducting the evaluation re16 quired under this subsection, and shall remain avail17 able until expended. 

18 ‘‘ ‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated $20,000,000 for each of fiscal 

20 years 2004 through 2008 for purposes of making allotments 

21 to States under this section.’. 

22 ‘‘(b) INAPPLICABILITY OF EFFECTIVE DATE PROVI23 SIONS.—Section 116 shall not apply to the amendment 

24 made by subsection (a) of this section.’’. 
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1 (b) CLERICAL AMENDMENT.—Section 2 of such Act is 

2 amended in the table of contents by inserting after the item 

3 relating to section 116 the following new item:

‘‘Sec. 117. Responsible fatherhood program.’’.

4 SEC. 119. ADDITIONAL GRANTS. 

5 (a) GRANTS TO CAPITALIZE AND DEVELOP SUSTAIN6 ABLE SOCIAL SERVICES.—Section 403(a) (42 U.S.C. 

7 603(a)) is amended by adding at the end the following: 

8 ‘‘(6) GRANTS TO CAPITALIZE AND DEVELOP SUS9 TAINABLE SOCIAL SERVICES.—

10 ‘‘(A) AUTHORITY TO AWARD GRANTS.—The 

11 Secretary may award grants to entities for the 

12 purpose of capitalizing and developing the role of 

13 sustainable social services that are critical to the 

14 success of moving recipients of assistance under 

15 a State program funded under this part to work. 

16 ‘‘(B) APPLICATION.—

17 ‘‘(i) IN GENERAL.—An entity desiring 

18 a grant under this paragraph shall submit 

19 an application to the Secretary, at such 

20 time, in such manner, and, subject to clause 

21 (ii), containing such information as the 

22 Secretary may require. 

23 ‘‘(ii) STRATEGY FOR GENERATION OF

24 REVENUE.—An application for a grant 

25 under this paragraph shall include a de-
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1 scription of the capitalization strategy that 

2 the entity intends to follow to develop a pro3 gram that generates its own source of ongo4 ing revenue while assisting recipients of as5 sistance under a State program funded 

6 under this part. 

7 ‘‘(C) USE OF FUNDS.—

8 ‘‘(i) IN GENERAL.—Funds made avail9 able under a grant made under this para10 graph may be used for the acquisition, con11 struction, or renovation of facilities or 

12 buildings. 

13 ‘‘(ii) GENERAL RULES GOVERNING USE

14 OF FUNDS.—The rules of section 404, other 

15 than subsection (b) of that section, shall not 

16 apply to a grant made under this para17 graph. 

18 ‘‘(D) EVALUATION AND REPORT.—The Sec19 retary shall, by grant, contract, or interagency 

20 agreement, conduct an evaluation of the pro21 grams developed with grants awarded under this 

22 paragraph and shall submit a report to Congress 

23 on the results of such evaluation. 

24 ‘‘(E) AUTHORIZATION OF APPROPRIA25 TIONS.—Out of any money in the Treasury of 
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1 the United States not otherwise appropriated, 

2 there is appropriated to the Secretary for the 

3 purpose of carrying out this paragraph, 

4 $40,000,000 for each of fiscal years 2004 through 

5 2008.’’. 

6 (b) GRANTS FOR LOW-INCOME CAR OWNERSHIP PRO7 GRAMS.—Section 403(a) (42 U.S.C. 603(a)), as amended 

8 by subsection (a), is further amended by adding at the end 

9 the following: 

10 ‘‘(7) GRANTS FOR LOW-INCOME CAR OWNERSHIP

11 PROGRAMS.—

12 ‘‘(A) PURPOSES.—The purposes of this 

13 paragraph are to—

14 ‘‘(i) assist low-income families with 

15 children obtain dependable, affordable auto16 mobiles to improve their employment oppor17 tunities and access to training; and 

18 ‘‘(ii) provide incentives to States, In19 dian tribes, localities, and nonprofit entities 

20 to develop and administer programs that 

21 provide assistance with automobile owner22 ship for low-income families. 

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

24 ‘‘(i) LOCALITY.—The term ‘locality’ 

25 means a municipality that does not admin-
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1 ister a State program funded under this 

2 part. 

3 ‘‘(ii) LOW-INCOME FAMILY WITH CHIL4 DREN.—The term ‘low-income family with 

5 children’ means a household that is eligible 

6 for benefits or services funded under the 

7 State program funded under this part or 

8 under a program funded with qualified 

9 State expenditures (as defined in section 

10 409(a)(7)(B)(i)). 

11 ‘‘(iii) NONPROFIT ENTITY.—The term 

12 ‘nonprofit entity’ means a school, local 

13 agency, organization, or institution owned 

14 and operated by 1 or more nonprofit cor15 porations or associations, no part of the net 

16 earnings of which inures, or may lawfully 

17 inure, to the benefit of any private share18 holder or individual. 

19 ‘‘(C) AUTHORITY TO AWARD GRANTS.—The 

20 Secretary may award grants to States, counties, 

21 localities, Indian tribes, and nonprofit entities to 

22 promote improving access to dependable, afford23 able automobiles by low-income families with 

24 children. 
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1 ‘‘(D) GRANT APPROVAL CRITERIA.—The 

2 Secretary shall establish criteria for approval of 

3 an application for a grant under this paragraph 

4 that include consideration of—

5 ‘‘(i) the extent to which the proposal, if 

6 funded, is likely to improve access to train7 ing and employment opportunities and 

8 child care services by low-income families 

9 with children by means of car ownership; 

10 ‘‘(ii) the level of innovation in the ap11 plicant’s grant proposal; and 

12 ‘‘(iii) any partnerships between the 

13 public and private sector in the applicant’s 

14 grant proposal. 

15 ‘‘(E) USE OF FUNDS.—

16 ‘‘(i) IN GENERAL.—A grant awarded 

17 under this paragraph shall be used to ad18 minister programs that assist low-income 

19 families with children with dependable 

20 automobile ownership, and maintenance of, 

21 or insurance for, the purchased automobile. 

22 ‘‘(ii) SUPPLEMENT NOT SUPPLANT.—

23 Funds provided to a State, Indian tribe, 

24 county, or locality under a grant awarded 

25 under this paragraph shall be used to sup-
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1 plement and not supplant other State, coun2 ty, or local public funds expended for car 

3 ownership programs. 

4 ‘‘(iii) GENERAL RULES GOVERNING

5 USE OF FUNDS.—The rules of section 404, 

6 other than subsection (b) of that section, 

7 shall not apply to a grant made under this 

8 paragraph. 

9 ‘‘(F) APPLICATION.—Each applicant desir10 ing a grant under this paragraph shall submit 

11 an application to the Secretary at such time, in 

12 such manner, and accompanied by such informa13 tion as the Secretary may reasonably require. 

14 ‘‘(G) REVERSION OF FUNDS.—Any funds 

15 not expended by a grantee within 3 years after 

16 the date the grant is awarded under this para17 graph shall be available for redistribution among 

18 other grantees in such manner and amount as 

19 the Secretary may determine, unless the Sec20 retary extends by regulation the time period to 

21 expend such funds. 

22 ‘‘(H) LIMITATION ON ADMINISTRATIVE

23 COSTS OF THE SECRETARY.—Not more than an 

24 amount equal to 5 percent of the funds appro25 priated to make grants under this paragraph for 
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1 a fiscal year shall be expended for administrative 

2 costs of the Secretary in carrying out this para3 graph. 

4 ‘‘(I) EVALUATION.—The Secretary shall, by 

5 grant, contract, or interagency agreement, con6 duct an evaluation of the programs administered 

7 with grants awarded under this paragraph. 

8 ‘‘(J) AUTHORIZATION OF APPROPRIA9 TIONS.—There is authorized to be appropriated 

10 to the Secretary to make grants under this para11 graph, $25,000,000 for each of fiscal years 2004 

12 through 2008.’’. 

13 SEC. 120. TECHNICAL CORRECTIONS. 

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

15 by inserting a comma after ‘‘appropriate’’. 

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

17 611(a)(1)(A)(ii)(III)) is amended by striking the last close 

18 parenthesis. 

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

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

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

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

23 through (j) and subsections (k) and (l) (as added by sections 

24 112(c) and 115(a) of this Act, respectively) as subsections 

25 (g) through (k), respectively. 
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1 (2) Each of the following provisions is amended by 

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

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

4 603(a)(5)(A)(ii)(III)). 

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

6 603(a)(5)(F)). 

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

8 603(a)(5)(G)(ii)). 

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

10 612(a)(3)(B)(iv)). 

11 TITLE II—ABSTINENCE 

12 EDUCATION 

13 SEC. 201. EXTENSION OF ABSTINENCE EDUCATION PRO14 GRAM. 

15 (a) EXTENSION OF APPROPRIATIONS.—Section 510(d) 

16 (42 U.S.C. 710(d)), as amended by section 6 of the Welfare 

17 Reform Extension Act of 2003 (Public Law 108–040, 117 

18 Stat. 837), is amended by striking ‘‘2003’’ and inserting 

19 ‘‘2008’’. 

20 (b) ALLOTMENT OF FUNDS.—Section 510(a) (42 

21 U.S.C. 710(a)) is amended—

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

23 striking ‘‘an application for the fiscal year under sec24 tion 505(a)’’ and inserting ‘‘, for the fiscal year, an 

25 application under section 505(a), and an application 
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1 under this section (in such form and meeting such 

2 terms and conditions as determined appropriate by 

3 the Secretary),’’; and 

4 (2) in paragraph (2), to read as follows: 

5 ‘‘(2) the percentage described in section 

6 502(c)(1)(B)(ii) that would be determined for the 

7 State under section 502(c) if such determination took 

8 into consideration only those States that transmitted 

9 both such applications for such fiscal year.’’. 

10 (c) REALLOTMENT OF FUNDS.—Section 510 (42 

11 U.S.C. 710(a)) is amended by adding at the end the fol12 lowing: 

13 ‘‘(e)(1) With respect to allotments under subsection (a) 

14 for fiscal year 2004 and subsequent fiscal years, the amount 

15 of any allotment to a State for a fiscal year that the Sec16 retary determines will not be required to carry out a pro17 gram under this section during such fiscal year or the suc18 ceeding fiscal year shall be available for reallotment from 

19 time to time during such fiscal years on such dates as the 

20 Secretary may fix, to other States that the Secretary deter21 mines—

22 ‘‘(A) require amounts in excess of amounts pre23 viously allotted under subsection (a) to carry out a 

24 program under this section; and 
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1 ‘‘(B) will use such excess amounts during such 

2 fiscal years. 

3 ‘‘(2) Reallotments under paragraph (1) shall be made 

4 on the basis of such States’ applications under this section, 

5 after taking into consideration the population of low-in6 come children in each such State as compared with the pop7 ulation of low-income children in all such States with re8 spect to which a determination under paragraph (1) has 

9 been made by the Secretary. 

10 ‘‘(3) Any amount reallotted under paragraph (1) to 

11 a State is deemed to be part of its allotment under sub12 section (a).’’. 

13 (d) EFFECTIVE DATE.—The amendments made by this 

14 section shall be effective with respect to the program under 

15 section 510 for fiscal years 2004 and succeeding fiscal years. 

16 TITLE III—CHILD SUPPORT 

17 SEC. 301. DISTRIBUTION OF CHILD SUPPORT COLLECTED 

18 BY STATES ON BEHALF OF CHILDREN RE19 CEIVING CERTAIN WELFARE BENEFITS. 

20 (a) MODIFICATION OF RULE REQUIRING ASSIGNMENT

21 OF SUPPORT RIGHTS AS A CONDITION OF RECEIVING

22 TANF.—Section 408(a)(3) (42 U.S.C. 608(a)(3)) is amend23 ed to read as follows: 

24 ‘‘(3) NO ASSISTANCE FOR FAMILIES NOT ASSIGN25 ING CERTAIN SUPPORT RIGHTS TO THE STATE.—A 
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1 State to which a grant is made under section 403 

2 shall require, as a condition of paying assistance to 

3 a family under the State program funded under this 

4 part, that a member of the family assign to the State 

5 any right the family member may have (on behalf of 

6 the family member or of any other person for whom 

7 the family member has applied for or is receiving 

8 such assistance) to support from any other person, 

9 not exceeding the total amount of assistance so paid 

10 to the family, which accrues during the period that 

11 the family receives assistance under the program.’’. 

12 (b) INCREASING CHILD SUPPORT PAYMENTS TO FAMI13 LIES AND SIMPLIFYING CHILD SUPPORT DISTRIBUTION

14 RULES.—

15 (1) DISTRIBUTION RULES.—

16 (A) IN GENERAL.—Section 457(a) (42 

17 U.S.C. 657(a)) is amended to read as follows: 

18 ‘‘(a) IN GENERAL.—Subject to subsections (d) and (e), 

19 the amounts collected on behalf of a family as support by 

20 a State pursuant to a plan approved under this part shall 

21 be distributed as follows: 

22 ‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the 

23 case of a family receiving assistance from the State, 

24 the State shall—
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1 ‘‘(A) pay to the Federal Government the 

2 Federal share of the amount collected, subject to 

3 paragraph (3)(A); 

4 ‘‘(B) retain, or pay to the family, the State 

5 share of the amount collected, subject to para6 graph (3)(B); and 

7 ‘‘(C) pay to the family any remaining 

8 amount. 

9 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS10 SISTANCE.—In the case of a family that formerly re11 ceived assistance from the State: 

12 ‘‘(A) CURRENT SUPPORT.—To the extent 

13 that the amount collected does not exceed the cur14 rent support amount, the State shall pay the 

15 amount to the family. 

16 ‘‘(B) ARREARAGES.—Except as otherwise 

17 provided in an election made under section 

18 454(34), to the extent that the amount collected 

19 exceeds the current support amount, the State—

20 ‘‘(i) shall first pay to the family the 

21 excess amount, to the extent necessary to 

22 satisfy support arrearages not assigned pur23 suant to section 408(a)(3); 
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1 ‘‘(ii) if the amount collected exceeds the 

2 amount required to be paid to the family 

3 under clause (i), shall—

4 ‘‘(I) pay to the Federal Govern5 ment the Federal share of the excess 

6 amount described in this clause, subject 

7 to paragraph (3)(A); and 

8 ‘‘(II) retain, or pay to the family, 

9 the State share of the excess amount 

10 described in this clause, subject to 

11 paragraph (3)(B); and 

12 ‘‘(iii) shall pay to the family any re13 maining amount. 

14 ‘‘(3) LIMITATIONS.—

15 ‘‘(A) FEDERAL REIMBURSEMENTS.—The 

16 total of the amounts paid by the State to the 

17 Federal Government under paragraphs (1) and 

18 (2) of this subsection with respect to a family 

19 shall not exceed the Federal share of the amount 

20 assigned with respect to the family pursuant to 

21 section 408(a)(3). 

22 ‘‘(B) STATE REIMBURSEMENTS.—The total 

23 of the amounts retained by the State under para24 graphs (1) and (2) of this subsection with respect 

25 to a family shall not exceed the State share of the 
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1 amount assigned with respect to the family pur2 suant to section 408(a)(3). 

3 ‘‘(4) FAMILIES THAT NEVER RECEIVED ASSIST4 ANCE.—In the case of any other family, the State 

5 shall pay the amount collected to the family. 

6 ‘‘(5) FAMILIES UNDER CERTAIN AGREEMENTS.—

7 Notwithstanding paragraphs (1) through (3), in the 

8 case of an amount collected for a family in accord9 ance with a cooperative agreement under section 

10 454(33), the State shall distribute the amount col11 lected pursuant to the terms of the agreement. 

12 ‘‘(6) STATE FINANCING OPTIONS.—To the extent 

13 that the State’s share of the amount payable to a fam14 ily pursuant to paragraph (2)(B) of this subsection 

15 exceeds the amount that the State estimates (under 

16 procedures approved by the Secretary) would have 

17 been payable to the family pursuant to former section 

18 457(a)(2)(B) (as in effect for the State immediately 

19 before the date this subsection first applies to the 

20 State) if such former section had remained in effect, 

21 the State may elect to have the payment considered 

22 a qualified State expenditure for purposes of section 

23 409(a)(7). 
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1 ‘‘(7) STATE OPTION TO PASS THROUGH ADDI2 TIONAL SUPPORT WITH FEDERAL FINANCIAL PARTICI3 PATION.—

4 ‘‘(A) FAMILIES THAT FORMERLY RECEIVED

5 ASSISTANCE.—Notwithstanding paragraph (2), a 

6 State shall not be required to pay to the Federal 

7 Government the Federal share of an amount col8 lected on behalf of a family that formerly re9 ceived assistance from the State to the extent that 

10 the State pays the amount to the family. 

11 ‘‘(B) FAMILIES THAT CURRENTLY RECEIVE

12 ASSISTANCE.—

13 ‘‘(i) IN GENERAL.—Notwithstanding 

14 paragraph (1), in the case of a family that 

15 receives assistance from the State, a State 

16 shall not be required to pay to the Federal 

17 Government the Federal share of the ex18 cepted portion (as defined in clause (ii)) of 

19 any amount collected on behalf of such fam20 ily during a month to the extent that—

21 ‘‘(I) the State pays the excepted 

22 portion to the family; and 

23 ‘‘(II) the excepted portion is dis24 regarded in determining the amount 
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1 and type of assistance provided to the 

2 family under such program. 

3 ‘‘(ii) EXCEPTED PORTION DEFINED.—

4 For purposes of this subparagraph, the term 

5 ‘excepted portion’ means that portion of the 

6 amount collected on behalf of a family dur7 ing a month that does not exceed $400 per 

8 month, or in the case of a family that in9 cludes 2 or more children, that does not ex10 ceed an amount established by the State 

11 that is not more than $600 per month. 

12 ‘‘(8) STATES WITH DEMONSTRATION WAIVERS.—

13 Notwithstanding the preceding paragraphs, in the 

14 case of a State that, on the date of enactment of this 

15 paragraph, has had in effect since October 1, 1997, a 

16 waiver under section 1115 permitting passthrough 

17 payments of child support collections—

18 ‘‘(A) the State may continue to distribute 

19 such payments to families without regard to the 

20 expiration date of such waiver; and 

21 ‘‘(B) the requirement under paragraph (1) 

22 to pay to the Federal Government the Federal 

23 share of the amount collected on behalf of a fam24 ily shall not apply to the extent that—
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1 ‘‘(i) the State distributes such amount 

2 to the family; and 

3 ‘‘(ii) such amount is disregarded in de4 termining the amount and type of assist5 ance paid to the family.’’. 

6 (B) STATE PLAN TO INCLUDE ELECTION AS

7 TO WHICH RULES TO APPLY IN DISTRIBUTING

8 CHILD SUPPORT ARREARAGES COLLECTED ON

9 BEHALF OF FAMILIES FORMERLY RECEIVING AS10 SISTANCE.—Section 454 (42 U.S.C. 654) is 

11 amended—

12 (i) by striking ‘‘and’’ at the end of 

13 paragraph (32); 

14 (ii) by striking the period at the end of 

15 paragraph (33) and inserting ‘‘; and’’; and 

16 (iii) by inserting after paragraph (33) 

17 the following: 

18 ‘‘(34) include an election by the State to apply 

19 section 457(a)(2)(B) of this Act or former section 

20 457(a)(2)(B) of this Act (as in effect for the State im21 mediately before the date this paragraph first applies 

22 to the State) to the distribution of the amounts which 

23 are the subject of such sections and, for so long as the 

24 State elects to so apply such former section, the 

25 amendments made by section 301(d)(1) of the Per-
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1 sonal Responsibility and Individual Development for 

2 Everyone Act shall not apply with respect to the 

3 State, notwithstanding section 301(e) of that Act.’’. 

4 (C) APPROVAL OF ESTIMATION PROCE5 DURES.—Not later than the date that is 6 

6 months after the date of enactment of this Act, 

7 the Secretary of Health and Human Services, in 

8 consultation with the States (as defined for pur9 poses of part D of title IV of the Social Security 

10 Act (42 U.S.C. 651 et seq.)), shall establish the 

11 procedures to be used to make the estimate de12 scribed in section 457(a)(6) of such Act (42 

13 U.S.C. 657(a)(6)). 

14 (2) CURRENT SUPPORT AMOUNT DEFINED.—Sec15 tion 457(c) (42 U.S.C. 657(c)) is amended by adding 

16 at the end the following: 

17 ‘‘(5) CURRENT SUPPORT AMOUNT.—The term 

18 ‘current support amount’ means, with respect to 

19 amounts collected as support on behalf of a family, 

20 the amount designated as the monthly support obliga21 tion of the noncustodial parent in the order requiring 

22 the support.’’. 

23 (c) STATE OPTION TO DISCONTINUE OLDER SUPPORT

24 ASSIGNMENTS.—Section 457(b) (42 U.S.C. 657(b)) is 

25 amended to read as follows: 
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1 ‘‘(b) CONTINUATION OF ASSIGNMENTS.—

2 ‘‘(1) STATE OPTION TO DISCONTINUE PRE-1997

3 SUPPORT ASSIGNMENTS.—

4 ‘‘(A) IN GENERAL.—Any rights to support 

5 obligations assigned to a State as a condition of 

6 receiving assistance from the State under part A 

7 and in effect on September 30, 1997 (or such 

8 earlier date on or after August 22, 1996, as the 

9 State may choose), may remain assigned after 

10 such date. 

11 ‘‘(B) DISTRIBUTION OF AMOUNTS AFTER AS12 SIGNMENT DISCONTINUATION.—If a State chooses 

13 to discontinue the assignment of a support obli14 gation described in subparagraph (A), the State 

15 may treat amounts collected pursuant to such as16 signment as if such amounts had never been as17 signed and may distribute such amounts to the 

18 family in accordance with subsection (a)(4). 

19 ‘‘(2) STATE OPTION TO DISCONTINUE POST-1997

20 ASSIGNMENTS.—

21 ‘‘(A) IN GENERAL.—Any rights to support 

22 obligations accruing before the date on which a 

23 family first receives assistance under part A that 

24 are assigned to a State under that part and in 
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1 effect before the implementation date of this sec2 tion may remain assigned after such date. 

3 ‘‘(B) DISTRIBUTION OF AMOUNTS AFTER AS4 SIGNMENT DISCONTINUATION.—If a State chooses 

5 to discontinue the assignment of a support obli6 gation described in subparagraph (A), the State 

7 may treat amounts collected pursuant to such as8 signment as if such amounts had never been as9 signed and may distribute such amounts to the 

10 family in accordance with subsection (a)(4).’’. 

11 (d) CONFORMING AMENDMENTS.—

12 (1) Section 409(a)(7)(B)(i) (42 U.S.C. 

13 609(a)(7)(B)(i)), as amended by section 103(c), is 

14 amended— 

15 (A) in subclause (I)(aa), by striking 

16 ‘‘457(a)(1)(B)’’ and inserting ‘‘457(a)(1)’’; and 

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

18 ‘‘(VI) PORTIONS OF CERTAIN

19 CHILD SUPPORT PAYMENTS COLLECTED

20 ON BEHALF OF AND DISTRIBUTED TO

21 FAMILIES NO LONGER RECEIVING AS22 SISTANCE.—Any amount paid by a 

23 State pursuant to clause (i) or (ii) of 

24 section 457(a)(2)(B), but only to the 

25 extent that the State properly elects 
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1 under section 457(a)(6) to have the 

2 payment considered a qualified State 

3 expenditure.’’. 

4 (2) Section 6402(c) of the Internal Revenue Code 

5 of 1986 (relating to offset of past-due support against 

6 overpayments) is amended—

7 (A) in the first sentence, by striking ‘‘the 

8 Social Security Act.’’ and inserting ‘‘of such 

9 Act.’’; and 

10 (B) by striking the third sentence and in11 serting the following: ‘‘The Secretary shall apply 

12 a reduction under this subsection first to an 

13 amount certified by the State as past due sup14 port under section 464 of the Social Security Act 

15 before any other reductions allowed by law.’’. 

16 (e) EFFECTIVE DATE.—

17 (1) IN GENERAL.—The amendments made by 

18 this section shall take effect on October 1, 2007, and 

19 shall apply to payments under parts A and D of title 

20 IV of the Social Security Act for calendar quarters be21 ginning on or after such date, and without regard to 

22 whether regulations to implement such amendments 

23 (in the case of State programs operated under such 

24 part D) are promulgated by such date. 
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1 (2) STATE OPTION TO ACCELERATE EFFECTIVE

2 DATE.—In addition, a State may elect to have the 

3 amendments made by this section apply to the State 

4 and to amounts collected by the State (and such pay5 ments under parts A and D), on and after such date 

6 as the State may select that is after the date of enact7 ment of this Act and before October 1, 2007. 

8 SEC. 302. 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 ‘‘par14 ent 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 amendments made by sub18 section (a) shall take effect on October 1, 2005. 

19 SEC. 303. REPORT ON UNDISTRIBUTED CHILD SUPPORT 

20 PAYMENTS. 

21 Not later than 6 months after the date of enactment 

22 of this Act, the Secretary of Health and Human Services 

23 shall submit to the Committee on Ways and Means of the 

24 House of Representatives and the Committee on Finance 

25 of the Senate a report on the procedures that the States use 
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1 generally to locate custodial parents for whom child support 

2 has been collected but not yet distributed. The report shall 

3 include an estimate of the total amount of undistributed 

4 child support and the average length of time it takes undis5 tributed child support to be distributed. To the extent the 

6 Secretary deems appropriate, the Secretary shall include in 

7 the report recommendations as to whether additional proce8 dures should be established at the Federal or State level to 

9 expedite the payment of undistributed child support. 

10 SEC. 304. USE OF NEW HIRE INFORMATION TO ASSIST IN 

11 ADMINISTRATION OF UNEMPLOYMENT COM12 PENSATION PROGRAMS. 

13 (a) IN GENERAL.—Section 453(j) (42 U.S.C. 653(j)) 

14 is amended by adding at the end the following: 

15 ‘‘(7) INFORMATION COMPARISONS AND DISCLO16 SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY17 MENT COMPENSATION PROGRAMS.—

18 ‘‘(A) IN GENERAL.—If, for purposes of ad19 ministering an unemployment compensation 

20 program under Federal or State law, a State 

21 agency responsible for the administration of such 

22 program transmits to the Secretary the name 

23 and social security account number of an indi24 vidual, the Secretary shall disclose to the State 

25 agency information on the individual and the 
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1 individual’s employer that is maintained in the 

2 National Directory of New Hires, subject to the 

3 succeeding provisions of this paragraph. 

4 ‘‘(B) CONDITION ON DISCLOSURE BY THE

5 SECRETARY.—The Secretary shall make a disclo6 sure under subparagraph (A) only to the extent 

7 that the Secretary determines that the disclosure 

8 would not interfere with the effective operation of 

9 the program under this part. 

10 ‘‘(C) USE AND DISCLOSURE OF INFORMA11 TION BY STATE AGENCIES.—

12 ‘‘(i) IN GENERAL.—A State agency 

13 may not use or disclose information pro14 vided under this paragraph except for pur15 poses of administering a program referred 

16 to in subparagraph (A). 

17 ‘‘(ii) INFORMATION SECURITY.—A 

18 State agency to which information is pro19 vided under this paragraph shall have in ef20 fect data security and control policies that 

21 the Secretary finds adequate to ensure the 

22 security of information obtained under this 

23 paragraph and to ensure that access to such 

24 information is restricted to authorized per-
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1 sons for purposes of authorized uses and 

2 disclosures. 

3 ‘‘(iii) PENALTY FOR MISUSE OF INFOR4 MATION.—An officer or employee of a State 

5 agency who fails to comply with this sub6 paragraph shall be subject to the sanctions 

7 under subsection (l)(2) to the same extent as 

8 if such officer or employee was an officer or 

9 employee of the United States. 

10 ‘‘(D) PROCEDURAL REQUIREMENTS.—A 

11 State agency requesting information under this 

12 paragraph shall adhere to uniform procedures es13 tablished by the Secretary governing information 

14 requests and data matching under this para15 graph. 

16 ‘‘(E) REIMBURSEMENT OF COSTS.—A State 

17 agency shall reimburse the Secretary, in accord18 ance with subsection (k)(3), for the costs incurred 

19 by the Secretary in furnishing the information 

20 requested under this paragraph.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by sub22 section (a) shall take effect on October 1, 2004. 
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1 SEC. 305. DECREASE IN AMOUNT OF CHILD SUPPORT AR2 REARAGE TRIGGERING PASSPORT DENIAL. 

3 (a) IN GENERAL.—Section 452(k)(1) (42 U.S.C. 

4 652(k)(1)) is amended by striking ‘‘$5,000’’ and inserting 

5 ‘‘$2,500’’. 

6 (b) CONFORMING AMENDMENT.—Section 454(31) (42 

7 U.S.C. 654(31)) is amended by striking ‘‘$5,000’’ and in8 serting ‘‘$2,500’’. 

9 (c) EFFECTIVE DATE.—The amendments made by this 

10 section shall take effect on October 1, 2004. 

11 SEC. 306. USE OF TAX REFUND INTERCEPT PROGRAM TO 

12 COLLECT PAST-DUE CHILD SUPPORT ON BE13 HALF OF CHILDREN WHO ARE NOT MINORS. 

14 (a) IN GENERAL.—Section 464 (42 U.S.C. 664) is 

15 amended—

16 (1) in subsection (a)(2)(A), by striking ‘‘(as that 

17 term is defined for purposes of this paragraph under 

18 subsection (c))’’; and 

19 (2) in subsection (c)—

20 (A) in paragraph (1)—

21 (i) by striking ‘‘(1) Except as provided 

22 in paragraph (2), as used in’’ and inserting 

23 ‘‘In’’; and 

24 (ii) by inserting ‘‘(whether or not a 

25 minor)’’ after ‘‘a child’’ each place it ap26 pears; and 
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1 (B) by striking paragraphs (2) and (3). 

2 (b) EFFECTIVE DATE.—The amendments made by sub3 section (a) shall take effect on October 1, 2005. 

4 SEC. 307. GARNISHMENT OF COMPENSATION PAID TO VET5 ERANS FOR SERVICE-CONNECTED DISABIL6 ITIES IN ORDER TO ENFORCE OBLIGATIONS. 

7 (a) IN GENERAL.—Section 459(h)(1)(A)(ii)(V)) (42 

8 U.S.C. 659(h)(1)(A)(ii)(V)) is amended by striking all that 

9 follows ‘‘Armed Forces’’ and inserting ‘‘, except that such 

10 compensation shall not be subject to withholding pursuant 

11 to this section for payment of alimony unless the former 

12 member to whom it is payable is in receipt of retired or 

13 retainer pay and has waived a portion of such pay in order 

14 to receive such compensation;’’. 

15 (b) EFFECTIVE DATE.—The amendment made by sub16 section (a) shall take effect on October 1, 2005. 

17 SEC. 308. IMPROVING FEDERAL DEBT COLLECTION PRAC18 TICES. 

19 (a) IN GENERAL.—Section 3716(h)(3) of title 31, 

20 United States Code, is amended to read as follows: 

21 ‘‘(3)(A) Except as provided in subparagraph (B), in 

22 applying this subsection with respect to any debt owed to 

23 a State, subsection (c)(3)(A) shall not apply. 

24 ‘‘(B) Subparagraph (A) shall not apply with respect 

25 to payments owed to an individual under title II of the 
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1 Social Security Act, for purposes of an offset under this sec2 tion of such payments against past-due support (as defined 

3 in section 464(c) of the Social Security Act, without regard 

4 to paragraphs (2) and (3) of such section 464(c)) that is 

5 being enforced by a State agency administering a program 

6 under part D of title IV of that Act.’’. 

7 (b) EFFECTIVE DATE.—The amendment made by sub8 section (a) shall take effect on October 1, 2004. 

9 SEC. 309. MAINTENANCE OF TECHNICAL ASSISTANCE FUND10 ING. 

11 Section 452(j) (42 U.S.C. 652(j)) is amended by insert12 ing ‘‘or the amount appropriated under this paragraph for 

13 fiscal year 2002, whichever is greater’’ before ‘‘, which shall 

14 be available’’. 

15 SEC. 310. MAINTENANCE OF FEDERAL PARENT LOCATOR 

16 SERVICE FUNDING. 

17 Section 453(o) (42 U.S.C. 653(o)) is amended—

18 (1) in the first sentence, by inserting ‘‘or the 

19 amount appropriated under this paragraph for fiscal 

20 year 2002, whichever is greater’’ before ‘‘, which shall 

21 be available’’; and 

22 (2) in the second sentence, by striking ‘‘for each 

23 of fiscal years 1997 through 2001’’. 
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1 SEC. 311. IDENTIFICATION AND SEIZURE OF ASSETS HELD 

2 BY MULTISTATE FINANCIAL INSTITUTIONS. 

3 (a) DUTIES OF THE SECRETARY.—Section 452(l) (42 

4 U.S.C. 652(l)) is amended to read as follows: 

5 ‘‘(l) IDENTIFICATION AND SEIZURE OF ASSETS HELD

6 BY MULTISTATE FINANCIAL INSTITUTIONS.—

7 ‘‘(1) IN GENERAL.—The Secretary, through the 

8 Federal Parent Locator Service, is authorized—

9 ‘‘(A) to assist State agencies operating pro10 grams under this part and financial institutions 

11 doing business in 2 or more States in reaching 

12 agreements regarding the receipt from such insti13 tutions, and the transfer to the State agencies, of 

14 information that may be provided pursuant to 

15 section 466(a)(17)(A)(i) or 469A(a); 

16 ‘‘(B) to perform data matches comparing 

17 information from such State agencies and finan18 cial institutions entering into such Agreements 

19 with respect to individuals owing past-due sup20 port; and 

21 ‘‘(C) to seize assets, held by such financial 

22 institutions, of individuals identified through 

23 such data matches who owe past-due support, 

24 by—

25 ‘‘(i) issuing a notice of lien or levy to 

26 such financial institutions requiring them 
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1 to encumber such assets for 30 calendar 

2 days and to subsequently transfer such as3 sets to the Secretary (except that the Sec4 retary shall promptly release such lien or 

5 levy within such 30-day period upon re6 quest of the State agencies responsible for 

7 collecting past-due support from such indi8 viduals); and 

9 ‘‘(ii) providing notice to such individ10 uals of the lien or levy upon their assets 

11 and informing them—

12 ‘‘(I) of their procedural due proc13 ess rights, including the opportunity to 

14 contest such lien or levy to the appro15 priate State agency; and 

16 ‘‘(II) in the case of jointly owned 

17 assets, of the process by which other 

18 owners may secure their respective 

19 share of such assets, according to such 

20 policies and procedures as the Sec21 retary may specify with respect to sei22 zure of such assets. 

23 ‘‘(2) TRANSFER OF FUNDS TO STATES.—Assets 

24 seized from individuals under paragraph (1)(C) shall 

25 be promptly transferred by the Secretary to the State 
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1 agencies responsible for collecting past-due support 

2 from such individuals for distribution pursuant to 

3 section 457. 

4 ‘‘(3) RELATIONSHIP TO STATE LAWS.—Notwith5 standing any provision of State law, an individual 

6 receiving a notice under paragraph (1)(C) shall have 

7 21 calendar days from the date of such notice to con8 test the lien or levy imposed under such paragraph by 

9 requesting an administrative review by the State 

10 agency responsible for collecting past-due support 

11 from such individual. 

12 ‘‘(4) TREATMENT OF DISCLOSURES.—For pur13 poses of section 1113(d) of the Right to Financial Pri14 vacy Act of 1978, a disclosure pursuant to this sub15 section shall be considered a disclosure pursuant to a 

16 Federal statute.’’. 

17 (b) STATE DUTIES.—

18 (1) INDIVIDUALS WITH ASSETS SUBJECT TO FED19 ERAL SEIZURE.—Section 454 (42 U.S.C. 654), as 

20 amended by section 301(b)(1)(B)(iii), is amended—

21 (A) in paragraph (33), by striking ‘‘and’’ 

22 at the end; 

23 (B) in paragraph (34), by striking the pe24 riod and inserting ‘‘; and’’; and 
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1 (C) by inserting after paragraph (34), the 

2 following: 

3 ‘‘(35) provide that the State shall—

4 ‘‘(A) upon furnishing the Secretary with in5 formation under section 452(l) with respect to 

6 individuals owing past-due support, provide no7 tice to such individuals that their assets held in 

8 financial institutions shall be subject to seizure 

9 to pay such past-due support, and shall—

10 ‘‘(i) instruct such individuals of the 

11 steps which may be taken to contest the 

12 State’s determination that past-due support 

13 is owed or the amount of the past-due sup14 port; and 

15 ‘‘(ii) include, in the case of jointly 

16 owned assets, a description of the process by 

17 which other owners may secure their share 

18 of such assets, in accordance with such poli19 cies and procedures as the Secretary may 

20 specify with respect to seizure of such assets; 

21 ‘‘(B) promptly resolve cases in which such 

22 individuals contest the State’s determination 

23 with respect to past-due support, and provide for 

24 expedited refund of any assets erroneously seized 
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1 and transferred to the State under such section 

2 452(l); and 

3 ‘‘(C) except as otherwise specified under this 

4 paragraph or by the Secretary, ensure that the 

5 due process protections afforded under this para6 graph to individuals whose assets are subject to 

7 seizure under section 452(l) are generally con8 sistent with, and to the extent practicable con9 form to, the due process protections afforded by 

10 the State to individuals subject to offset of tax re11 funds under section 464.’’. 

12 (2) REIMBURSEMENT OF FEDERAL COSTS.—Sec13 tion 453(k)(3) (42 U.S.C. 653(k)(3)) is amended—

14 (A) in the paragraph heading, by inserting 

15 ‘‘AND ENFORCEMENT SERVICES’’ after ‘‘INFORMA16 TION’’

17 (B) by inserting ‘‘or enforcement services’’ 

18 after ‘‘that receives information’’; 

19 (C) by inserting ‘‘or section 452(l)’’ after 

20 ‘‘pursuant to this section’’; and 

21 (D) by striking ‘‘in furnishing the informa22 tion’’ and inserting ‘‘in furnishing such informa23 tion or enforcement services’’. 

24 (c) CONFORMING AMENDMENTS.—
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1 (1) STATE LAW REQUIREMENTS.—Section 

2 466(a)(17) (42 U.S.C. 666(a)(17)) is amended—

3 (A) in subparagraph (A)—

4 (i) in clause (i), by inserting ‘‘pursu5 ant to section 452(l)’’ after ‘‘and the Fed6 eral Parent Locator Service’’; and 

7 (ii) in clause (ii), by inserting ‘‘issued 

8 by the State agency or by the Secretary 

9 under section 452(l)’’ after ‘‘in response to 

10 a notice of lien or levy’’; and 

11 (B) in subparagraph (C)—

12 (i) in clause (i), by inserting ‘‘or to the 

13 Federal Parent Locator Service’’ after ‘‘to 

14 the State agency’’; and 

15 (ii) in clause (ii), by striking ‘‘issued 

16 by the State agency’’. 

17 (2) NON LIABILITY FOR FINANCIAL INSTITU18 TIONS.—Section 469A(a) (42 U.S.C. 669a(a)) is 

19 amended by inserting ‘‘section 452(l) or’’ before ‘‘sec20 tion 466(a)(17)(A)’’. 

21 SEC. 312. INFORMATION COMPARISONS WITH INSURANCE 

22 DATA. 

23 (a) DUTIES OF THE SECRETARY.—Section 452 (42 

24 U.S.C. 652) is amended by adding at the end the following: 
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1 ‘‘(m) COMPARISONS WITH INSURANCE INFORMA2 TION.—

3 ‘‘(1) IN GENERAL.—The Secretary, through the 

4 Federal Parent Locator Service, is authorized—

5 ‘‘(A) to compare information concerning in6 dividuals owing past-due support with informa7 tion maintained by insurers (or their agents) 

8 concerning insurance claims, settlements, 

9 awards, and payments, and 

10 ‘‘(B) to furnish information resulting from 

11 such data matches to the State agencies respon12 sible for collecting child support from such indi13 viduals. 

14 ‘‘(2) LIABILITY.—No insurer (including any 

15 agent of an insurer) shall be liable under any Federal 

16 or State law to any person for any disclosure pro17 vided for under this subsection, or for any other ac18 tion taken in good faith in accordance with the provi19 sions of this subsection.’’. 

20 (b) STATE REIMBURSEMENT OF FEDERAL COSTS.—

21 Section 453(k)(3) (42 U.S.C. 653(k)(3)), as amended by sec22 tion 312(b)(2), is amended by striking ‘‘section 452(l)’’ and 

23 inserting ‘‘subsection (l) or (m) of section 452’’. 
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1 SEC. 313. TRIBAL ACCESS TO THE FEDERAL PARENT LOCA2 TOR SERVICE. 

3 Section 453(c)(1) (42 U.S.C. 653(c)(1)) is amended by 

4 inserting ‘‘or Indian tribe or tribal organization’’ after 

5 ‘‘any agent or attorney of any State’’. 

6 SEC. 314. REIMBURSEMENT OF SECRETARY’S COSTS OF IN7 FORMATION COMPARISONS AND DISCLOSURE 

8 FOR ENFORCEMENT OF OBLIGATIONS ON 

9 HIGHER EDUCATION ACT LOANS AND 

10 GRANTS. 

11 Section 453(j)(6)(F) (42 U.S.C. 653(j)(6)(F)) is 

12 amended by striking ‘‘additional’’. 

13 SEC. 315. TECHNICAL AMENDMENT RELATING TO COOPERA14 TIVE AGREEMENTS BETWEEN STATES AND IN15 DIAN TRIBES. 

16 Section 454(33) (42 U.S.C. 654(33)) is amended by 

17 striking ‘‘that receives funding pursuant to section 428 

18 and’’. 

19 SEC. 316. CLAIMS UPON LONGSHORE AND HARBOR WORK20 ERS’ COMPENSATION FOR CHILD SUPPORT. 

21 (a) IN GENERAL.—Section 17 of the Longshore and 

22 Harbor Workers’ Compensation Act (33 U.S.C. 917) is 

23 amended to read as follows: 

24 ‘‘LIENS ON COMPENSATION; CHILD SUPPORT ENFORCEMENT

25 ‘‘SEC. 17. (a) LIENS.—Where a trust fund which com26 plies with section 302(c) of the Labor Management Rela-
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1 tions Act, 1947 (29 U.S.C. 186(c)) established pursuant to 

2 a collective-bargaining agreement in effect between an em3 ployer and an employee covered under this Act has paid 

4 disability benefits to an employee which the employee is le5 gally obligated to repay by reason of the employee’s entitle6 ment to compensation under this Act or under a settlement, 

7 the Secretary shall authorize a lien on such compensation 

8 in favor of the trust fund for the amount of such payments. 

9 ‘‘(b) CHILD SUPPORT.—Compensation or benefits due 

10 or payable to an individual under this Act (other than med11 ical benefits) shall be subject, in like manner and to the 

12 same extent as similar compensation or benefits under a 

13 workers’ compensation program if established under State 

14 law—

15 ‘‘(1) to withholding in accordance with State law 

16 enacted pursuant to subsections (a)(1) and (b) of sec17 tion 466 of the Social Security Act and regulations 

18 under such subsections; and 

19 ‘‘(2) to any other legal process brought, by a 

20 State agency administering a program under a State 

21 plan approved under part D of title IV of the Social 

22 Security Act or by an individual obligee, to enforce 

23 the legal obligation of the individual to provide child 

24 support or alimony.’’. 
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1 (b) CONFORMING AMENDMENT.—Section 16 of the 

2 Longshore and Harbor Workers’ Compensation Act (33 

3 U.S.C. 916) is amended—

4 (1) by striking ‘‘No’’ and inserting ‘‘Except as 

5 provided by this Act, no’’; and 

6 (2) by striking ‘‘, except as provided by this 

7 Act,’’ after ‘‘under this Act’’. 

8 SEC. 317. STATE OPTION TO USE STATEWIDE AUTOMATED 

9 DATA PROCESSING AND INFORMATION RE10 TRIEVAL SYSTEM FOR INTERSTATE CASES. 

11 Section 466(a)(14)(A)(iii) (42 U.S.C. 

12 666(a)(14)(A)(iii)) is amended by inserting before the semi13 colon the following: ‘‘(but the assisting State may establish 

14 a corresponding case based on such other State’s request for 

15 assistance)’’. 

16 SEC. 318. INTERCEPTION OF GAMBLING WINNINGS FOR 

17 CHILD SUPPORT. 

18 (a) INTERCEPTION OF GAMBLING WINNINGS FOR

19 CHILD SUPPORT.—Section 452 (42 U.S.C. 652), as amend20 ed by section 313, is amended by adding at the end the 

21 following: 

22 ‘‘(n) INTERCEPTION OF GAMBLING WINNINGS FOR

23 PAST-DUE SUPPORT.—

24 ‘‘(1) IN GENERAL.—The Secretary, through the 

25 Federal Parent Locator Service, is authorized, in ac-
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1 cordance with this subsection, to intercept gambling 

2 winnings of an individual owing past-due support 

3 being enforced by a State agency with a plan ap4 proved under this part, and to transmit such 

5 winnings to the State agency for distribution pursu6 ant to section 457. 

7 ‘‘(2) REQUIREMENTS FOR GAMBLING ESTABLISH8 MENTS.—A gambling establishment subject to this 

9 subsection shall not pay to any individual gambling 

10 winnings (as defined in paragraph (6)) meeting the 

11 criteria for reporting to the Internal Revenue Service 

12 pursuant to section 6041 of the Internal Revenue 

13 Code of 1986 until the establishment—

14 ‘‘(A) has furnished to the Secretary—

15 ‘‘(i) the information required to be so 

16 reported with respect to such individual 

17 and such winnings; and 

18 ‘‘(ii) the net amount of such gambling 

19 winnings (hereafter in this subsection re20 ferred to as the ‘net gambling winnings’) 

21 after withholding of amounts for Federal 

22 taxes as required pursuant to section 

23 3402(q) of the Internal Revenue Code of 

24 1986; and 
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1 ‘‘(B) has complied with the Secretary’s in2 structions pursuant to paragraph (3). 

3 ‘‘(3) DATA MATCH AND WITHHOLDING.—The Sec4 retary shall—

5 ‘‘(A) compare information furnished pursu6 ant to paragraph (2)(A) with information on in7 dividuals who owe past-due support; 

8 ‘‘(B) direct the gambling establishment to 

9 withhold from an individual’s net gambling 

10 winnings all amounts not exceeding the total 

11 past-due support owed by the individual; 

12 ‘‘(C) authorize the gambling establishment, 

13 in reimbursement of its costs of complying with 

14 this subsection, to withhold and retain from such 

15 net gambling winnings an amount equal to 2 

16 percent of the amount to be withheld pursuant to 

17 subparagraph (B), which amount shall be taken 

18 first from any excess of such net winnings above 

19 the amount withheld pursuant to subparagraph 

20 (B), with any balance to be taken from the 

21 amount so withheld; and 

22 ‘‘(D) require the gambling establishment to 

23 furnish written notice to the individual whose 

24 gambling winnings are withheld pursuant to this 

25 subsection, that includes—
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1 ‘‘(i) the amounts withheld pursuant to 

2 subparagraphs (B) and (C); 

3 ‘‘(ii) the reason and authority for the 

4 withholding; and 

5 ‘‘(iii) an explanation of the individ6 ual’s procedural due process rights, includ7 ing the right to contest such withholding to 

8 the responsible State agency and informa9 tion necessary to contact such State agency. 

10 ‘‘(4) TRANSFER OF WITHHELD AMOUNTS.—Net 

11 amounts withheld for past-due support pursuant to 

12 subparagraphs (B) and (C) of paragraph (3) shall—

13 ‘‘(A) be transferred by the gambling estab14 lishment to the Secretary at the same time and 

15 in the same manner as amounts withheld under 

16 section 3402(q) of the Internal Revenue Code of 

17 1986 would be transferred to the Internal Rev18 enue Service, together with the information de19 scribed in paragraph (2)(A)(i) with respect to 

20 the individuals whose winnings were withheld 

21 under this subsection; and 

22 ‘‘(B) be promptly transferred by the Sec23 retary to the appropriate State agency. 
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1 ‘‘(5) NONLIABILITY OF GAMBLING ESTABLISH2 MENTS.—A gambling establishment shall not be liable 

3 under any Federal or State law to any person—

4 ‘‘(A) for any disclosure of information to 

5 the Secretary under this subsection; 

6 ‘‘(B) for withholding or surrendering gam7 bling winnings in accordance with this sub8 section; or 

9 ‘‘(C) for any other action taken in good 

10 faith to comply with this subsection. 

11 ‘‘(6) DEFINITION OF GAMBLING WINNINGS.—In 

12 this subsection, the term ‘gambling winnings’ means 

13 the proceeds of a wager that are subject to reporting 

14 under section 6041 of the Internal Revenue Code of 

15 1986.’’. 

16 (b) REQUIREMENT FOR STATE LAWS.—Section 466(a) 

17 (42 U.S.C. 666(a)) is amended by inserting after paragraph 

18 (19) the following: 

19 ‘‘(20) INTERCEPTION OF GAMBLING WINNINGS.—

20 Procedures under which—

21 ‘‘(A) gambling establishments subject to the 

22 laws of the State are required to comply with the 

23 provisions of section 452(n), and are subject to 

24 sanctions for failure to comply, which shall in25 clude liability in an amount equal to the amount 
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1 the establishment would have withheld if it so 

2 complied; 

3 ‘‘(B) noncustodial parents owing past-due 

4 support are provided with written notice that 

5 gambling winnings may be subject to with6 holding for past-due support under section 

7 452(n); and 

8 ‘‘(C) cases where such noncustodial parents 

9 contest the State’s determination with respect to 

10 past-due support are promptly resolved, and ex11 pedited refund is made of any amounts erro12 neously seized under such section 452(n).’’. 

13 (c) STATE REIMBURSEMENT OF FEDERAL COSTS.—

14 Section 453(k)(3) (42 U.S.C.653(k)(3)), as amended by sec15 tion 313(b), is amended by striking ‘‘or (m)’’ and inserting 

16 ‘‘(m), or (n)’’. 

17 (d) REQUIREMENT FOR PARTICIPATING INDIAN

18 TRIBES.—Section 455(f) (42 U.S.C. 655(f)) is amended in 

19 the first sentence by striking ‘‘and location of absent par20 ents’’ and inserting ‘‘location of absent parents, and inter21 ception of gambling winnings consistent with the require22 ments of sections 452(n) and 466(a)(20)’’. 
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1 SEC. 319. STATE LAW REQUIREMENT CONCERNING THE 

2 UNIFORM INTERSTATE FAMILY SUPPORT ACT 

3 (UIFSA). 

4 (a) IN GENERAL.—Section 466(f) (42 U.S.C. 666(f)) 

5 is amended—

6 (1) by striking ‘‘and as in effect on August 22, 

7 1996,’’; and 

8 (2) by striking ‘‘adopted as of such date’’ and in9 serting ‘‘adopted as of August, 2001’’. 

10 (b) FULL FAITH AND CREDIT FOR CHILD SUPPORT

11 ORDERS.—Section 1738B of title 28, United States Code, 

12 is amended—

13 (1) by striking subsection (d) and inserting the 

14 following: 

15 ‘‘(d) CONTINUING EXCLUSIVE JURISDICTION.—

16 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a 

17 court of a State that has made a child support order 

18 consistent with this section has continuing, exclusive 

19 jurisdiction to modify its order if the order is the con20 trolling order and—

21 ‘‘(A) the State is the child’s State or the res22 idence of any individual contestant; or 

23 ‘‘(B) if the State is not the residence of the 

24 child or an individual contestant, the contestants 

25 consent in a record or in open court that the 
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1 court may continue to exercise jurisdiction to 

2 modify its order. 

3 ‘‘(2) REQUIREMENT.—A court may not exercise 

4 its continuing, exclusive jurisdiction to modify the 

5 order if the court of another State, acting in accord6 ance with subsections (e) and (f), has made a modi7 fication of the order.’’; 

8 (2) in subsection (e)(2)—

9 (A) in subparagraph (A), by striking ‘‘be10 cause’’ and all that follows through the semicolon 

11 and inserting ‘‘pursuant to paragraph (1) or (2) 

12 of subsection (d);’’ and 

13 (B) in subparagraph (B), by inserting 

14 ‘‘with jurisdiction over at least 1 of the indi15 vidual contestants or that is located in the 

16 child’s State’’ after ‘‘another State’’; 

17 (3) in subsection (f)—

18 (A) in the subsection heading, by striking 

19 ‘‘RECOGNITION OF’’ and inserting ‘‘DETERMINA20 TION OF CONTROLLING’’; 

21 (B) in the matter preceding paragraph (1), 

22 by striking ‘‘shall apply’’ and all that follows 

23 through the colon and inserting ‘‘having personal 

24 jurisdiction over both individual contestants 
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1 shall apply the following rules and by order shall 

2 determine which order controls:’’

3 (C) in paragraph (1), by striking ‘‘must be’’ 

4 and inserting ‘‘controls and must be so’’; 

5 (D) in paragraph (2), by striking ‘‘must be 

6 recognized’’ and inserting ‘‘controls’’; 

7 (E) in paragraph (3), by striking ‘‘must be 

8 recognized’’ each place it appears and inserting 

9 ‘‘controls’’; 

10 (F) in paragraph (4)—

11 (i) by striking ‘‘may’’ and inserting 

12 ‘‘shall’’; and 

13 (ii) by striking ‘‘must be recognized’’ 

14 and inserting ‘‘controls’’; and 

15 (G) by striking paragraph (5); 

16 (4) by striking subsection (g) and inserting the 

17 following: 

18 ‘‘(g) ENFORCEMENT OF MODIFIED ORDERS.—If a 

19 child support order issued by a court of a State is modified 

20 by a court of another State which properly assumed juris21 diction, the issuing court—

22 ‘‘(1) may enforce its order that was modified 

23 only as to arrears and interest accruing before the 

24 modification; 
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1 ‘‘(2) may provide appropriate relief for viola2 tions of its order which occurred before the effective 

3 date of the modification; and 

4 ‘‘(3) shall recognize the modifying order of the 

5 other State for the purpose of enforcement.’’; 

6 (5) in subsection (h)—

7 (A) in paragraph (1), by striking ‘‘and (3)’’ 

8 and inserting ‘‘, (3), and (4)’’; 

9 (B) in paragraph (2), by inserting ‘‘the 

10 computation and payment of arrearages, and the 

11 accrual of interest on the arrearages,’’ after ‘‘ob12 ligations of support,’’; and 

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

14 ‘‘(4) PROSPECTIVE APPLICATION.—After a court 

15 determines which is the controlling order and issues 

16 an order consolidating arrears, if any, a court shall 

17 prospectively apply the law of the State issuing the 

18 controlling order, including that State’s law with re19 spect to interest on arrears, current and future sup20 port, and consolidated arrears.’’; and 

21 (6) in subsection (i), by inserting ‘‘and sub22 section (d)(2) does not apply’’ after ‘‘issuing State’’. 
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1 SEC. 320. GRANTS TO STATES FOR ACCESS AND VISITATION 

2 PROGRAMS. 

3 (a) AUTHORITY TO MAKE GRANTS TO INDIAN

4 TRIBES.—Section 469B (42 U.S.C. 669b) is amended—

5 (1) in the section heading, by inserting ‘‘AND

6 INDIAN TRIBES’’ after ‘‘STATES’’; and 

7 (2) in subsection (a), by inserting ‘‘and Indian 

8 tribes or tribal organizations’’ after ‘‘to enable 

9 States’’. 

10 (b) AMOUNT OF GRANTS.—Section 469B(b) (42 U.S.C. 

11 669b(b)) is amended to read as follows: 

12 ‘‘(b) AMOUNT OF GRANTS.—

13 ‘‘(1) GRANTS TO STATES.—The amount of the 

14 grant to be made to a State under this section for a 

15 fiscal year shall be an amount equal to the lesser of—

16 ‘‘(A) 90 percent of State expenditures dur17 ing the fiscal year for activities described in sub18 section (a); or 

19 ‘‘(B) the allotment of the State under sub20 section (c) for the fiscal year. 

21 ‘‘(2) GRANTS TO INDIAN TRIBES.—An Indian 

22 tribe or tribal organization operating a program 

23 under section 455 that has operated such program 

24 throughout the preceding fiscal year and has an ap25 plication under this section approved by the Secretary 

26 shall receive a grant under this section for a fiscal 
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1 year in an amount equal to the allotment of such In2 dian tribe or tribal organization under subsection 

3 (c)(2) for the fiscal year.’’. 

4 (c) ALLOTMENTS.—Section 469B(c) (42 U.S.C. 

5 669b(c)) is amended to read as follows: 

6 ‘‘(c) ALLOTMENTS.—

7 ‘‘(1) ALLOTMENTS TO STATES.—

8 ‘‘(A) IN GENERAL.—Subject to the subpara9 graph (C), the allotment of a State for a fiscal 

10 year is the amount that bears the same ratio to 

11 the amount specified in subparagraph (B) for 

12 such fiscal year as the number of children in the 

13 State living with only 1 parent bears to the total 

14 number of such children in all States. 

15 ‘‘(B) AMOUNT AVAILABLE FOR ALLOT16 MENT.—For purposes of subparagraph (A), the 

17 amount specified in this subparagraph is the fol18 lowing amount, reduced by the total allotments 

19 to Indian tribes or tribal organizations in ac20 cordance with paragraph (2): 

21 ‘‘(i) $12,000,000 for fiscal year 2004. 

22 ‘‘(ii) $14,000,000 for fiscal year 2005. 

23 ‘‘(iii) $16,000,000 for fiscal year 2006. 

24 ‘‘(iv) $20,000,000 for fiscal year 2007 

25 and each succeeding fiscal year. 
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1 ‘‘(C) MINIMUM STATE ALLOTMENT.—The 

2 Secretary shall adjust allotments to States under 

3 subparagraph (A) as necessary to ensure that no 

4 State is allotted less than—

5 ‘‘(i) $120,000 for fiscal year 2004; 

6 ‘‘(ii) $140,000 for fiscal year 2005; 

7 ‘‘(iii) $160,000 for fiscal year 2006; 

8 and 

9 ‘‘(iv) $180,000 for fiscal year 2007 and 

10 each succeeding fiscal year. 

11 ‘‘(2) ALLOTMENTS TO INDIAN TRIBES.—

12 ‘‘(A) IN GENERAL.—Subject to subpara13 graph (C), the allotment of an Indian tribe or 

14 tribal organization described in subsection (b)(2) 

15 for a fiscal year is an amount that bears the 

16 same ratio to the amount specified in subpara17 graph (B) for such fiscal year as the number of 

18 children in the Indian tribe or tribal organiza19 tion living with only 1 parent bears to the total 

20 number of such children in all Indian tribes and 

21 tribal organizations eligible to receive grants 

22 under this section for such year. 

23 ‘‘(B) AMOUNT AVAILABLE FOR ALLOT24 MENT.—For purposes of subparagraph (A), the 

25 amount available under this subparagraph is an 
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1 amount, deducted from the amount specified in 

2 paragraph (1)(B), not to exceed—

3 ‘‘(i) $250,000 for fiscal year 2004; 

4 ‘‘(ii) $600,000 for fiscal year 2005; 

5 ‘‘(iii) $800,000 for fiscal year 2006; 

6 and 

7 ‘‘(iv) $1,670,000 for fiscal year 2007 

8 and each succeeding year. 

9 ‘‘(C) MINIMUM AND MAXIMUM TRIBAL AL10 LOTMENT.—The Secretary shall adjust allot11 ments to Indian tribes and tribal organizations 

12 under subparagraph (A) as necessary to ensure 

13 that no Indian tribe or tribal organization is al14 lotted, for a fiscal year, an amount which is less 

15 than $10,000 or more than the minimum State 

16 allotment for such fiscal year.’’. 

17 (d) ADMINISTRATION.—Section 469B(e) (42 U.S.C. 

18 669b(e)) is amended to read as follows: 

19 ‘‘(e) ADMINISTRATION.—

20 ‘‘(1) GRANTS TO STATES.—Each State to which 

21 a grant is made under this section—

22 ‘‘(A) may administer State programs fund23 ed with the grant, directly or through grants to 

24 or contracts with courts, local public agencies, or 

25 nonprofit private entities; and 
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1 ‘‘(B) shall not be required to operate such 

2 programs on a statewide basis. 

3 ‘‘(2) GRANTS TO STATES OR INDIAN TRIBES.—

4 Each State or Indian tribe or tribal organization to 

5 which a grant is made under this section shall mon6 itor, evaluate, and report on such programs in ac7 cordance with regulations prescribed by the Sec8 retary.’’. 

9 SEC. 321. TIMING OF CORRECTIVE ACTION YEAR FOR STATE 

10 NONCOMPLIANCE WITH CHILD SUPPORT EN11 FORCEMENT PROGRAM REQUIREMENTS. 

12 (a) IN GENERAL.—Section 409(a)(8) (42 U.S.C. 

13 609(a)(8)) is amended—

14 (1) in subparagraph (A)—

15 (A) in the matter preceding clause (i)(I), by 

16 striking ‘‘in a fiscal year’’ and inserting ‘‘for a 

17 fiscal year’’; and 

18 (B) in clause (ii)—

19 (i) in the matter preceding subclause 

20 (I), by striking ‘‘that, with respect to the 

21 succeeding fiscal year—’’ and inserting 

22 ‘‘that, with respect to the period described 

23 in subparagraph (D)’’; and 

24 (ii) in the matter following subclause 

25 (II), by striking ‘‘the end of such succeeding 
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1 fiscal year’’ and inserting ‘‘the end of the 

2 period described in subparagraph (D)’’; and 

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

4 ‘‘(D) PERIOD DESCRIBED.—Subject to sub5 paragraph (E), for purposes of this paragraph, 

6 the period described in this subparagraph is the 

7 period that begins with the date on which the 

8 Secretary makes a finding described in subpara9 graph (A)(i) with respect to State performance 

10 in a fiscal year and ends on September 30 of the 

11 fiscal year following the fiscal year in which the 

12 Secretary makes such a finding. 

13 ‘‘(E) NO PENALTY IF STATE CORRECTS NON14 COMPLIANCE IN FINDING YEAR.—The Secretary 

15 shall not take a reduction described in subpara16 graph (A) with respect to a noncompliance de17 scribed in clause (i) of that subparagraph if the 

18 Secretary determines that the State has corrected 

19 the noncompliance in the fiscal year in which 

20 the Secretary makes the finding of the non21 compliance.’’. 

22 (b) EFFECTIVE DATE.—The amendments made by sub23 section (a) shall be effective with respect to determinations 

24 of State compliance for fiscal year 2002 and succeeding fis25 cal years. 
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1 (c) SPECIAL RULE FOR FISCAL YEAR 2001.—Notwith2 standing any other provision of law, the Secretary shall not 

3 take against amounts otherwise payable to a State, a reduc4 tion described in section 409(a)(8)(A) of the Social Security 

5 Act (42 U.S.C. 609(a)(8)(A)) with respect to a noncompli6 ance described in such section occurring in fiscal year 2001 

7 if the Secretary determines that the State has corrected such 

8 noncompliance in fiscal year 2002 or 2003. 

9 TITLE IV—CHILD WELFARE 

10 SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEM11 ONSTRATION PROJECTS. 

12 Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)), as 

13 amended by section 5 of the Welfare Reform Extension Act 

14 of 2003 (Public Law 108–040, 117 Stat. 837) is amended 

15 by striking ‘‘2003’’ and inserting ‘‘2008’’. 

16 SEC. 402. REMOVAL OF COMMONWEALTH OF PUERTO RICO 

17 FOSTER CARE FUNDS FROM LIMITATION ON 

18 PAYMENTS. 

19 Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amend20 ed by section 116(b)(2), is amended—

21 (1) by striking ‘‘Paragraph (1)’’ and inserting 

22 the following: 

23 ‘‘(A) IN GENERAL.—Paragraph (1)’’; 

24 (2) in subparagraph (A) (as added by paragraph 

25 (1)), by striking ‘‘or 418(a)(4)(B)’’ and inserting 
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1 ‘‘418(a)(4)(B), or, subject to clause (ii) of subpara2 graph (B), payments to Puerto Rico described in 

3 clause (i) of that subparagraph’’ before the period; 

4 and 

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

6 ‘‘(B) CERTAIN PAYMENTS TO PUERTO

7 RICO.—

8 ‘‘(i) PAYMENTS DESCRIBED.—For pur9 poses of subparagraph (A), payments de10 scribed in this subparagraph are payments 

11 made to Puerto Rico under part E of title 

12 IV with respect to the portion of foster care 

13 payments made to Puerto Rico for fiscal 

14 year 2005 or any fiscal year thereafter that 

15 exceed the total amount of such payments 

16 for fiscal year 2002. 

17 ‘‘(ii) LIMITATION.—The total amount 

18 of payments to Puerto Rico described in 

19 clause (i) that are disregarded under sub20 paragraph (A) may not exceed $6,250,000 

21 for each of fiscal years 2005 through 2008.’’. 

22 SEC. 403. TECHNICAL CORRECTION. 

23 Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is 

24 amended by striking ‘‘422(b)(9)’’ and inserting 

25 ‘‘422(b)(10)’’. 
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1 TITLE V—SUPPLEMENTAL 

2 SECURITY INCOME 

3 SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DIS4 ABILITY DETERMINATIONS. 

5 Section 1633 (42 U.S.C. 1383b) is amended by adding 

6 at the end the following: 

7 ‘‘(e)(1) The Commissioner of Social Security shall re8 view determinations, made by State agencies pursuant to 

9 subsection (a) in connection with applications for benefits 

10 under this title on the basis of blindness or disability, that 

11 individuals who have attained 18 years of age are blind 

12 or disabled as of a specified onset date. The Commissioner 

13 of Social Security shall review such a determination before 

14 any action is taken to implement the determination. 

15 ‘‘(2)(A) In carrying out paragraph (1), the Commis16 sioner of Social Security shall review—

17 ‘‘(i) at least 20 percent of all determinations re18 ferred to in paragraph (1) that are made in fiscal 

19 year 2004;

20 ‘‘(ii) at least 40 percent of all such determina21 tions that are made in fiscal year 2005; and 

22 ‘‘(iii) at least 50 percent of all such determina23 tions that are made in fiscal year 2006 or thereafter. 

24 ‘‘(B) In carrying out subparagraph (A), the Commis25 sioner of Social Security shall, to the extent feasible, select 
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1 for review the determinations which the Commissioner of 

2 Social Security identifies as being the most likely to be in3 correct.’’. 

4 TITLE VI—TRANSITIONAL 

5 MEDICAL ASSISTANCE 

6 SEC. 601. EXTENSION AND SIMPLIFICATION OF THE TRAN7 SITIONAL MEDICAL ASSISTANCE PROGRAM 

8 (TMA). 

9 (a) OPTION OF CONTINUOUS ELIGIBILITY FOR 12 

10 MONTHS; OPTION OF CONTINUING COVERAGE FOR UP TO

11 AN ADDITIONAL YEAR.—

12 (1) OPTION OF CONTINUOUS ELIGIBILITY FOR 12

13 MONTHS BY MAKING REPORTING REQUIREMENTS OP14 TIONAL.—Section 1925(b) (42 U.S.C. 1396r–6(b)) is 

15 amended—

16 (A) in paragraph (1), by inserting ‘‘, at the 

17 option of a State,’’ after ‘‘and which’’; 

18 (B) in paragraph (2)(A), by inserting 

19 ‘‘Subject to subparagraph (C):’’ after ‘‘(A) NO20 TICES.—’’; 

21 (C) in paragraph (2)(B), by inserting 

22 ‘‘Subject to subparagraph (C):’’ after ‘‘(B) RE23 PORTING REQUIREMENTS.—’’; 

24 (D) by adding at the end the following: 
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1 ‘‘(C) STATE OPTION TO WAIVE NOTICE AND

2 REPORTING REQUIREMENTS.—A State may 

3 waive some or all of the reporting requirements 

4 under clauses (i) and (ii) of subparagraph (B). 

5 Insofar as it waives such a reporting require6 ment, the State need not provide for a notice 

7 under subparagraph (A) relating to such require8 ment.’’; and 

9 (E) in paragraph (3)(A)(iii), by inserting 

10 ‘‘the State has not waived under paragraph 

11 (2)(C) the reporting requirement with respect to 

12 such month under paragraph (2)(B) and if’’ 

13 after ‘‘6-month period if’’. 

14 (2) STATE OPTION TO EXTEND ELIGIBILITY FOR

15 LOW-INCOME INDIVIDUALS FOR UP TO 12 ADDITIONAL

16 MONTHS.—Section 1925 (42 U.S.C. 1396r–6) is fur17 ther amended—

18 (A) by redesignating subsections (c) through 

19 (f) as subsections (d) through (g), respectively; 

20 and 

21 (B) by inserting after subsection (b) the fol22 lowing: 

23 ‘‘(c) STATE OPTION OF UP TO 12 MONTHS OF ADDI24 TIONAL ELIGIBILITY.—
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1 ‘‘(1) IN GENERAL.—Notwithstanding any other 

2 provision of this title, each State plan approved 

3 under this title may provide, at the option of the 

4 State, that the State shall offer to each family which 

5 received assistance during the entire 6-month period 

6 under subsection (b) and which meets the applicable 

7 requirement of paragraph (2), in the last month of 

8 the period the option of extending coverage under this 

9 subsection for the succeeding period not to exceed 12 

10 months. 

11 ‘‘(2) INCOME RESTRICTION.—The option under 

12 paragraph (1) shall not be made available to a family 

13 for a succeeding period unless the State determines 

14 that the family’s average gross monthly earnings (less 

15 such costs for such child care as is necessary for the 

16 employment of the caretaker relative) as of the end of 

17 the 6-month period under subsection (b) does not ex18 ceed 185 percent of the official poverty line (as de19 fined by the Office of Management and Budget, and 

20 revised annually in accordance with section 673(2) of 

21 the Omnibus Budget Reconciliation Act of 1981) ap22 plicable to a family of the size involved. 

23 ‘‘(3) APPLICATION OF EXTENSION RULES.—The 

24 provisions of paragraphs (2), (3), (4), and (5) of sub25 section (b) shall apply to the extension provided 
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1 under this subsection in the same manner as they 

2 apply to the extension provided under subsection 

3 (b)(1), except that for purposes of this subsection—

4 ‘‘(A) any reference to a 6-month period 

5 under subsection (b)(1) is deemed a reference to 

6 the extension period provided under paragraph 

7 (1) and any deadlines for any notices or report8 ing and the premium payment periods shall be 

9 modified to correspond to the appropriate cal10 endar quarters of coverage provided under this 

11 subsection; and 

12 ‘‘(B) any reference to a provision of sub13 section (a) or (b) is deemed a reference to the 

14 corresponding provision of subsection (b) or of 

15 this subsection, respectively.’’. 

16 (b) STATE OPTION TO WAIVE RECEIPT OF MEDICAID

17 FOR 3 OF PREVIOUS 6 MONTHS TO QUALIFY FOR TMA.—

18 Section 1925(a)(1) (42 U.S.C. 1396r–6(a)(1)) is amended 

19 by adding at the end the following: ‘‘A State may, at its 

20 option, also apply the previous sentence in the case of a 

21 family that was receiving such aid for fewer than 3 months, 

22 or that had applied for and was eligible for such aid for 

23 fewer than 3 months, during the 6 immediately preceding 

24 months described in such sentence.’’. 

25 (c) EXTENSION OF SUNSET FOR TMA.—
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1 (1) IN GENERAL.—Subsection (g) of section 1925 

2 (42 U.S.C. 1396r–6), as so redesignated under sub3 section (a)(2)(A), and as amended by section 7 of the 

4 Welfare Reform Extension Act of 2003, is further re5 designated as subsection (i) and is amended by strik6 ing ‘‘2003’’ and inserting ‘‘2008’’. 

7 (2) CONFORMING AMENDMENT.—Section 

8 1902(e)(1)(B) (42 U.S.C. 1396a(e)(1)(B)), as so 

9 amended, is amended by striking ‘‘September 30, 

10 2003’’ and inserting ‘‘the last date (if any) on which 

11 section 1925 applies under subsection (f) of that sec12 tion’’. 

13 (d) CMS REPORT ON ENROLLMENT AND PARTICIPA14 TION RATES UNDER TMA.—Section 1925 (42 U.S.C. 

15 1396r–6), as amended by subsections (a)(2)(A) and (c)(1), 

16 is amended by inserting after subsection (f) the following: 

17 ‘‘(g) ADDITIONAL PROVISIONS.—

18 ‘‘(1) COLLECTION AND REPORTING OF PARTICI19 PATION INFORMATION.—Each State shall—

20 ‘‘(A) collect and submit to the Secretary, in 

21 a format specified by the Secretary, information 

22 on average monthly enrollment and average 

23 monthly participation rates for adults and chil24 dren under this section; and 
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1 ‘‘(B) make such information publicly avail2 able. 

3 Such information shall be submitted under subpara4 graph (A) at the same time and frequency in which 

5 other enrollment information under this title is sub6 mitted to the Secretary. Using such information, the 

7 Secretary shall submit to Congress annual reports 

8 concerning such rates.’’. 

9 (e) COORDINATION OF WORK.—Section 1925(g) (42 

10 U.S.C. 1396r–6(g)), as added by subsection (d), is amended 

11 by adding at the end the following: 

12 ‘‘(2) COORDINATION WITH ADMINISTRATION FOR

13 CHILDREN AND FAMILIES.—The Administrator of the 

14 Centers for Medicare & Medicaid Services, in car15 rying out this section, shall work with the Assistant 

16 Secretary for the Administration for Children and 

17 Families to develop guidance or other technical assist18 ance for States regarding best practices in guaran19 teeing access to transitional medical assistance under 

20 this section.’’. 

21 (f) ELIMINATION OF TMA REQUIREMENT FOR STATES

22 THAT EXTEND COVERAGE TO CHILDREN AND PARENTS

23 THROUGH 185 PERCENT OF POVERTY.—
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1 (1) IN GENERAL.—Section 1925 (42 U.S.C. 

2 1396r–6) is amended by inserting after subsection (g), 

3 as added by subsection (d), the following: 

4 ‘‘(h) PROVISIONS OPTIONAL FOR STATES THAT EX5 TEND COVERAGE TO CHILDREN AND PARENTS THROUGH

6 185 PERCENT OF POVERTY.—A State may meet (but is not 

7 required to meet) the requirements of subsections (a) and 

8 (b) if it provides for medical assistance under section 1931 

9 to families (including both children and caretaker relatives) 

10 the average gross monthly earning of which (less such costs 

11 for such child care as is necessary for the employment of 

12 a caretaker relative) is at or below a level that is at least 

13 185 percent of the official poverty line (as defined by the 

14 Office of Management and Budget, and revised annually 

15 in accordance with section 673(2) of the Omnibus Budget 

16 Reconciliation Act of 1981) applicable to a family of the 

17 size involved.’’. 

18 (2) CONFORMING AMENDMENTS.—Section 1925 

19 (42 U.S.C. 1396r–6) is amended, in subsections (a)(1) 

20 and (b)(1), by inserting ‘‘, but subject to subsection 

21 (h),’’ after ‘‘Notwithstanding any other provision of 

22 this title,’’ each place it appears. 

23 (g) REQUIREMENT OF NOTICE FOR ALL FAMILIES

24 LOSING TANF.—Subsection (a)(2) of section 1925 (42 
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1 U.S.C. 1396r–6) is amended by adding at the end the fol2 lowing flush sentences: 

3 ‘‘Each State shall provide, to families whose aid 

4 under part A or E of title IV has terminated but 

5 whose eligibility for medical assistance under this 

6 title continues, written notice of their ongoing eligi7 bility for such medical assistance. If a State makes a 

8 determination that any member of a family whose aid 

9 under part A or E of title IV is being terminated is 

10 also no longer eligible for medical assistance under 

11 this title, the notice of such determination shall be 

12 supplemented by a 1-page notification form describ13 ing the different ways in which individuals and fami14 lies may qualify for such medical assistance and ex15 plaining that individuals and families do not have to 

16 be receiving aid under part A or E of title IV in 

17 order to qualify for such medical assistance. Such no18 tice shall further be supplemented by information on 

19 how to apply for child health assistance under the 

20 State children’s health insurance program under title 

21 XXI and how to apply for medical assistance under 

22 this title.’’. 

23 (h) EXTENDING USE OF OUTSTATIONED WORKERS TO

24 ACCEPT APPLICATIONS FOR TRANSITIONAL MEDICAL AS25 SISTANCE.—Section 1902(a)(55) (42 U.S.C. 1396a(a)(55)) 
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1 is amended by inserting ‘‘and under section 1931’’ after 

2 ‘‘(a)(10)(A)(ii)(IX)’’. 

3 (i) EFFECTIVE DATES.—

4 (1) IN GENERAL.—Except as provided in this 

5 subsection, the amendments made by this section shall 

6 apply to calendar quarters beginning on or after Oc7 tober 1, 2003, without regard to whether or not final 

8 regulations to carry out such amendments have been 

9 promulgated by such date. 

10 (2) NOTICE.—The amendment made by sub11 section (g) shall take effect 6 months after the date of 

12 enactment of this Act. 

13 (3) DELAY PERMITTED FOR STATE PLAN AMEND14 MENT.—In the case of a State plan for medical assist15 ance under title XIX of the Social Security Act which 

16 the Secretary of Health and Human Services deter17 mines requires State legislation (other than legisla18 tion appropriating funds) in order for the plan to 

19 meet the additional requirements imposed by the 

20 amendments made by this section, the State plan 

21 shall not be regarded as failing to comply with the re22 quirements of such title solely on the basis of its fail23 ure to meet these additional requirements before the 

24 first day of the first calendar quarter beginning after 

25 the close of the first regular session of the State legis-
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1 lature that begins after the date of enactment of this 

2 Act. For purposes of the previous sentence, in the case 

3 of a State that has a 2-year legislative session, each 

4 year of such session shall be deemed to be a separate 

5 regular session of the State legislature. 

6 SEC. 602. PROHIBITION AGAINST COVERING CHILDLESS 

7 ADULTS WITH SCHIP FUNDS. 

8 (a) PROHIBITION ON USE OF SCHIP FUNDS.—

9 (1) IN GENERAL.—Section 2107 (42 U.S.C. 

10 1397gg) is amended by adding at the end the fol11 lowing: 

12 ‘‘(f) LIMITATION ON WAIVER AUTHORITY.—Notwith13 standing subsection (e)(2)(A) and section 1115(a), the Sec14 retary may not approve a waiver, experimental, pilot, or 

15 demonstration project, or an amendment to such a project 

16 that has been approved as of the date of enactment of this 

17 subsection, that would allow funds made available under 

18 this title to be used to provide child health assistance or 

19 other health benefits coverage to childless adults. For pur20 poses of the preceding sentence, a caretaker relative (as such 

21 term is defined for purposes of carrying out section 1931) 

22 shall not be considered a childless adult.’’. 

23 (2) CONFORMING AMENDMENT.—Section 

24 2105(c)(1) (42 U.S.C. 1397ee(c)(1)) is amended by 

25 inserting before the period the following: ‘‘and may 
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1 not include coverage of childless adults. For purposes 

2 of the preceding sentence, a caretaker relative (as such 

3 term is defined for purposes of carrying out section 

4 1931) shall not be considered a childless adult.’’. 

5 (b) RULE OF CONSTRUCTION.—Nothing in this section 

6 or the amendments made by this section shall be construed 

7 to— 

8 (1) authorize the waiver of any provision of title 

9 XIX or XXI of the Social Security Act (42 U.S.C. 

10 1396 et seq., 1397aa et seq.) that is not otherwise au11 thorized to be waived under such titles or under title 

12 XI of such Act (42 U.S.C. 1301 et seq.) as of the date 

13 of enactment of this Act; or 

14 (2) imply congressional approval of any waiver, 

15 experimental, pilot, or demonstration project affecting 

16 the medicaid program under title XIX of the Social 

17 Security Act or the State children’s health insurance 

18 program under title XXI of such Act that has been 

19 approved as of such date of enactment. 

20 (c) EFFECTIVE DATE.—This section and the amend21 ments made by this section take effect on the date of enact22 ment of this Act and apply to proposals to conduct a waiv23 er, experimental, pilot, or demonstration project affecting 

24 the medicaid program under title XIX of the Social Secu25 rity Act or the State children’s health insurance program 
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1 under title XXI of such Act, and to any proposals to amend 

2 such projects, that are approved or extended on or after such 

3 date of enactment. 

4 TITLE VII—EFFECTIVE DATE 

5 SEC. 701. EFFECTIVE DATE. 

6 (a) IN GENERAL.—Subject to subsection (b) and except 

7 as otherwise provided, the amendments made by this Act 

8 take effect on the date of enactment of this Act. 

9 (b) EXCEPTION.—In the case of a State plan under 

10 part A or D of title IV of the Social Security Act which 

11 the Secretary determines requires State legislation in order 

12 for the plan to meet the additional requirements imposed 

13 by the amendments made by this Act, the effective date of 

14 the amendments imposing the additional requirements shall 

15 be 3 months after the first day of the first calendar quarter 

16 beginning after the close of the first regular session of the 

17 State legislature that begins after the date of enactment of 

18 this Act. For purposes of the preceding sentence, in the case 

19 of a State that has a 2-year legislative session, each year 

20 of the session shall be considered to be a separate regular 

21 session of the State legislature. 
Calendar No. 305

108TH CONGRESS 

1ST SESSION H. R. 4

[Report No. 108–162] 

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. 

OCTOBER 3, 2003

Reported with an amendment