Julia Carson Responsible Fatherhood and Healthy Families Act of 2017

To amend title IV of the Social Security Act to ensure funding for grants to promote responsible fatherhood and strengthen low-income families, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Julia Carson Responsible Fatherhood and Healthy Families Act of 2017 (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings. Title I—Promoting Responsible Fatherhood and Strengthening Low-Income Families Sec. 101. Healthy marriage promotion and responsible fatherhood programs. Sec. 102. Grants supporting healthy family partnerships for domestic violence intervention and preventions. Sec. 103. Procedures to address domestic violence. Sec. 104. Grants to States for family strengthening commissions. Title II—Temporary Assistance for Needy Families Sec. 201. TANF work participation improvements. Sec. 202. TANF Employment Fund. Sec. 203. Sense of Congress. Title III—Child support Sec. 301. Full family distribution and ban on recovery of Medicaid costs for births. Sec. 302. State assessments of barriers to employment and financial support of children. Sec. 303. Public reporting on consequences for nonpayment. Sec. 304. Early intervention to ensure regular payment of support and prevent overdue support. Sec. 305. Improved collection and distribution of child support. Sec. 306. Services and activities to support noncustodial parenting time. Title IV—Revenue provision Sec. 401. Increase in credit percentage under earned income tax credit for eligible individuals with no qualifying children. Title V—Supplemental nutrition assistance Sec. 501. Collection of child support under the supplemental nutrition assistance program. 2. Findings Congress makes the following findings: (1) Fathers play a significant and underappreciated role in the development of their children, with research demonstrating that a supportive and involved father strengthens a child’s emotional, physical, intellectual, and behavioral development. Children with positive relationships with fathers, even if they do not live in the same household, have stronger mental health, economic success, and academic achievement with lower rates of youth delinquency, school dropout, and teen pregnancy. (2) Economic stability also leads to positive outcomes for children, including stronger emotional well-being, physical health, and academic success. (3) Family patterns in the United States have resulted in fewer children living with their fathers. The October 2016 Child Trends report on family structure shows the proportion of all children who have not attained the age of 18 living with both parents has decreased over the past half century, from 85 percent in 1960 to 65 percent in 2015, with 23 percent of such children living with their mother only and 4 percent of such children living with their father only in 2015. (4) A 2015 United States Census analysis of children’s living arrangements and characteristics showed that a child in a father-absent home is more than 5 times more likely to live in poverty than a child in a married-couple family. (5) Father engagement does not depend on living in the same house as the child, with many nonresidential fathers being actively involved with their children and supportive of their children’s mothers. However, low-income fathers experience multiple challenges to contributing financially and emotionally to their children due to limited education and job skills, unstable employment opportunities, child support enforcement policies, incarceration, and strained relationships with the children’s mothers. Multiple approaches are needed to address these barriers to create opportunities for fathers to sustain their engagement and closeness with their children and families. (6) Federal programs should encourage responsible fatherhood and healthy families by increasing the upward economic mobility of custodial and noncustodial parents so that they can actively participate in financial support and child-rearing as well as maintain positive, healthy, and nonviolent relationships with their children and coparents, including improving compliance with child support obligations and cooperative parenting. I Promoting Responsible Fatherhood and Strengthening Low-Income Families 101. Healthy marriage promotion and responsible fatherhood programs (a) Voluntary participation (1) Assurance Section 403(a)(2)(A)(ii)(II) of the Social Security Act ( 42 U.S.C. 603(a)(2)(A)(ii)(II) (A) in item (aa), by striking and (B) in item (bb), by striking the period and inserting a semicolon; and (C) by adding at the end the following: (cc) if the entity is a State or an Indian tribe or tribal organization, to not condition the receipt of assistance under the program funded under this part, under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)), or under any other program funded under this title, on enrollment in any such programs or activities; and (dd) to permit any participant in a program or activity funded under this paragraph, including an individual whose participation is specified in the individual responsibility plan developed for the individual in accordance with section 408(b), to transfer to another such program or activity upon notification to the entity and the State agency responsible for administering the State program funded under this part. . (2) Prohibition Section 408(a) of such Act ( 42 U.S.C. 608(a) (13) Ban on conditioning receipt of TANF or certain other benefits on participation in a healthy marriage or responsible fatherhood program A State to which a grant is made under section 403 shall not condition the receipt of assistance under the State program funded under this part, under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)), or under any other program funded under this title, on participation in a healthy marriage promotion activity (as defined in section 403(a)(2)(A)(iii)) or in an activity promoting responsible fatherhood (as defined in section 403(a)(2)(C)(ii)). . (3) Penalty Section 409(a) of such Act ( 42 U.S.C. 609(a) (17) Penalty for conditioning receipt of TANF or certain other benefits on participation in a healthy marriage or responsible fatherhood program If the Secretary determines that a State has violated section 408(a)(13) during a fiscal year, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 5 percent of the State family assistance grant. . (b) Activities promoting responsible fatherhood Section 403(a)(2)(C)(ii) of such Act ( 42 U.S.C. 603(a)(2)(C)(ii) (1) in subclause (I), by striking marriage or sustain marriage healthy relationships and marriages or to sustain healthy relationships or marriages (2) in subclause (II), by inserting educating youth who are not yet parents about the economic, social, and family consequences of early parenting, helping participants in fatherhood programs work with their own children to break the cycle of early parenthood, child support payments, (3) in subclause (III), by striking fathers low-income fathers and other low-income noncustodial parents who are not eligible for assistance under the State program funded under this part (c) Reauthorization Section 403(a)(2)(D) of such Act ( 42 U.S.C. 603(a)(2)(D) (1) by striking fiscal years 2017 and 2018 fiscal years 2017 through 2023 (2) by striking fiscal year 2017 or 2018 any of fiscal years 2017 through 2023 (d) Effective date The amendments made by this section shall take effect on October 1, 2017. 102. Grants supporting healthy family partnerships for domestic violence intervention and preventions Section 403(a) of the Social Security Act ( 42 U.S.C. 603(a) (6) Grants supporting healthy family partnerships for domestic violence intervention and prevention (A) In general The Secretary shall award grants on a competitive basis to healthy family partnerships to develop and implement promising practices for— (i) assessing and providing services to individuals and families affected by domestic violence, including through caseworker training, the provision of technical assistance to community partners, and the implementation of safe visitation and exchange programs; or (ii) preventing domestic violence, particularly as a barrier to economic security, and fostering healthy relationships. (B) Education services In awarding grants under subparagraph (A), the Secretary shall ensure that 10 percent of the funds made available under such grants are used for high schools and other secondary educational institutions and institutions of higher education to provide education services on the value of healthy relationships, responsible parenting, and healthy marriages characterized by mutual respect and nonviolence, and the importance of building relationship skills such as communication, conflict resolution, and budgeting. (C) Application The respective entity and organization of a healthy family partnership entered into for purposes of receiving a grant under this paragraph shall submit a joint application to the Secretary, at such time and in such manner as the Secretary shall specify, containing— (i) a description of how the partnership intends to carry out the activities described in subparagraph (A); (ii) an assurance that funds made available under the grant shall be used to supplement, and not supplant, other funds used by the entity or organization to carry out programs, activities, or services described in subparagraph (A) or (B); and (iii) such other information as the Secretary may require. (D) General rules governing use of funds The rules of section 404, other than subsection (b) of that section, shall not apply to a grant made under this paragraph. (E) Definitions In this paragraph: (i) Domestic violence The term domestic violence (ii) Healthy family partnership The term healthy family partnership (I) an entity receiving funds under a grant made under paragraph (2) to promote healthy marriage or responsible fatherhood; and (II) an organization with demonstrated expertise working with survivors of domestic violence. (F) Appropriation Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 2017 through 2023, $25,000,000 to carry out this paragraph. . 103. Procedures to address domestic violence (a) In general Section 403(a)(2) of the Social Security Act ( 42 U.S.C. 603(a)(2) (1) by redesignating subparagraphs (D) and (E) as subparagraphs (F) and (G), respectively; and (2) by inserting after subparagraph (C) the following: (D) Requirements for receipt of funds An entity may not be awarded a grant under this paragraph unless the entity, as a condition of receiving funds under such a grant— (i) identifies in its application for the grant the domestic violence experts at the local, State, or national level with whom the entity will consult in the development and implementation of the programs and activities of the entity; (ii) on award of the grant, and in consultation with such domestic violence experts, develops a written protocol which describes— (I) how the entity will identify instances or risks of domestic violence; (II) the procedures for responding to such instances or risks, including making service referrals and providing protections and appropriate assistance for identified individuals and families; (III) how confidentiality issues will be addressed; and (IV) the domestic violence training that will be provided to ensure effective and consistent implementation of the protocol; and (iii) in an annual report to the Secretary, includes a description of the domestic violence protocols, and a description of any implementation issues identified with respect to domestic violence and how the issues were addressed. (E) Domestic violence defined In this paragraph, the term domestic violence . (b) Conforming amendments Section 403(a)(2) of such Act ( 42 U.S.C. 603(a)(2) (1) in subparagraph (A)(i)— (A) by striking and (E) (D), and (G) (B) by striking (D) (F) (2) in subparagraphs (B)(i) and (C)(i), by striking (D) (F) (c) Effective date The amendments made by this section shall apply with respect to fiscal years beginning after the date of the enactment of this Act. 104. Grants to States for family strengthening commissions Part D of title IV of the Social Security Act ( 42 U.S.C. 651 469C. Grants to States for family strengthening commissions (a) In general The Secretary of Health and Human Services shall make grants to States under this section to enable States to establish and support commissions to identify methods of expanding access to family strengthening services. (b) Eligible entities In this section, the term State 25 U.S.C. 450b (c) Application In order to be eligible for a grant under this section, a State shall submit an application to the Secretary at such time and in such manner as the Secretary may require. (d) Family strengthening services The commissions described in subsection (a) shall focus on providing family strengthening services that include— (1) family and relationship counseling; (2) relationship and parenting education; and (3) assistance with developing and implementing parenting time arrangements. (e) Families served The commissions described in subsection (a) shall focus on serving varying types of families, including— (1) families seeking to preserve a marriage or other adult relationship; (2) families seeking a divorce or separation and working to maintain coparenting and parent-child relationships; (3) families seeking to maintain or rebuild family relationships affected by incarceration; (4) families seeking to build a support system around a child who has experienced trauma, including— (A) witnessing violence; (B) experiencing sexual or physical abuse; or (C) having a parent who is experiencing challenges with mental health or substance abuse; and (5) families below 250 percent of poverty guidelines applicable to a family of the size involved. (f) Membership A State seeking a grant under this section shall demonstrate that a family strengthening commission funded by such grant will consist of relevant government and private actors, including— (1) State government agency officials from departments of health, human services, child support, education, youth services, or corrections; (2) local government agency officials from departments of health, human services, child support, education, youth services, or corrections; (3) access to Justice Commissions, bar associations, judicial associations, courts, or other representatives of the legal system; (4) associations of social workers, counselors, psychologists, and other mental health professionals; (5) associations of mediators and others who deliver alternative dispute resolution services; (6) healthy marriage and responsible fatherhood programs; (7) youth-serving programs; and (8) academics and researchers. (g) Duties A commission funded by a grant under this section shall— (1) identify the need for potential policy changes; (2) determine methods of leveraging existing resources and growing new resources; and (3) explore methods of improving service delivery, including the training of service providers. (h) Authorization of appropriations There are authorized to be appropriated to the Secretary of Health and Human Services to carry out this section $3,000,000 for each of fiscal years 2018 through 2020. . II Temporary Assistance for Needy Families 201. TANF work participation improvements (a) Elimination of Separate Work Requirements for 2-Parent Families (1) Work participation rate Section 407 of the Social Security Act 42 U.S.C. 607 (A) in subsection (a)— (i) beginning in the heading, by striking Participation Rate Requirements A State Participation Rate Requirements (ii) by striking paragraph (2); and (B) in subsection (b)— (i) in paragraph (1)(A), by striking subsection (a)(1) subsection (a) (ii) by striking paragraph (2) and redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively; (iii) in paragraph (3) (as so redesignated), by striking paragraphs (1)(B) and (2)(B) determining monthly participation rates under paragraph (1)(B) (iv) in paragraph (4) (as so redesignated), by striking rates rate (2) Minimum weekly hours requirement Section 407(c)(1) of the Social Security Act ( 42 U.S.C. 607(c)(1) (A) by striking General rules For purposes of General Rules. (B) by striking subparagraph (B). (3) Limitation on penalty imposition In applying section 409(a)(3) of the Social Security Act for each fiscal year beginning with fiscal year 2007 and ending with the fiscal year in which occurs the date of the enactment of this section, the Secretary of Health and Human Services shall disregard the requirement imposed by section 407(a)(2) of the Social Security Act. (b) Elimination of distinction between core and other work activities Section 407(c)(1) of such Act ( 42 U.S.C. 607(c)(1) not fewer than subsection (d), (c) Elimination of special work participation rule for teens attending secondary school Section 407(c)(2) of such Act ( 42 U.S.C. 607(c)(2) (d) Elimination of cap on treating vocational educational training as work participation Section 407(c)(2) of such Act ( 42 U.S.C. 607(c)(2) (e) Increase in months of educational vocational training that may be counted as work participation Section 407(d)(8) of such Act ( 42 U.S.C. 607(d)(8) 12 months 24 months (f) Effective date The amendments made by this section shall take effect on October 1 of the first fiscal year beginning after the date of the enactment of this Act and shall apply to the determination of minimum participation rates for months beginning on or after that date. 202. TANF Employment Fund (a) In general Section 403(b) of the Social Security Act ( 42 U.S.C. 603(b) (b) Employment Fund (1) Establishment There is hereby established in the Treasury of the United States a fund which shall be known as the Employment Fund for Needy Families (in this subsection referred to as the Fund (2) Deposits into Fund Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 2017 through 2023, $608,000,000 for payment to the Fund, which shall remain available until expended. (3) Grants (A) In general For each of fiscal years 2017 through 2023, the Secretary shall make grants, on a competitive basis, to qualifying entities as provided in this paragraph. (B) Qualifying entity For purposes of this paragraph, a qualifying entity for a fiscal year is a State, territory, Indian tribe, or tribal organization, operating a State program funded under this part (or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i))), that submits to the Secretary an application for a grant under this paragraph for the fiscal year, in such manner and at such time as the Secretary may require. (C) Allotment of funds (i) Technical assistance The Secretary shall reserve $10,000,000 out of the amounts made available under paragraph (2) for each fiscal year to provide technical assistance to qualifying entities receiving a grant under this paragraph for the fiscal year. (ii) Territories and Indian tribes The Secretary shall reserve, from the amount made available under paragraph (2) for a fiscal year that remains after applying clause (i), 3 percent for grants under this paragraph for the fiscal year to qualifying entities that are territories and 1 percent for grants under this paragraph for the fiscal year to qualifying entities that are Indian tribes or tribal organizations, to be allotted in a manner the Secretary determines to be appropriate. (iii) States (I) In general The amount of a grant under this paragraph payable for a fiscal year to a qualifying entity that is a State shall be the amount that bears the same ratio to the aggregate amount as the number of individuals residing in the State who have attained 18 years of age but have not attained 67 years of age who are not employed or underemployed (such as involuntarily working part-time), as determined by the Secretary, bears to the total number of such individuals residing in all qualifying entities that are States. (II) Aggregate amount For purposes of this clause, the term aggregate amount (iv) Unused funds (I) Reasonable limits on carrying over funds The Secretary shall set reasonable limits on the amount of funds a State receiving a grant under this paragraph may carry over for expenditure in fiscal years after the fiscal year for which the grant is awarded. (II) Redistribution of unused funds Any portion of the amount of a grant made to a State under clause (iii) that the Secretary determines will not be used by the State shall be redistributed among the States that the Secretary determines will not have such an unused amount, using the rules specified in clause (iii). Any amount so redistributed to a State is deemed part of the grant made to the State under the preceding provisions of this paragraph. (D) Use of funds (i) Employment programs (I) Subsidized employment A qualifying entity awarded a grant under this paragraph shall use the grant funds to conduct a subsidized employment program to assist recipients of TANF cash assistance and TANF-eligible individuals who are not recipients of cash assistance in obtaining paid employment. (II) Sectoral skills training A qualifying entity may use not more than 15 percent of funds awarded to the entity under this paragraph for a fiscal year to conduct a sectoral skills training program to provide sectoral skills training to recipients of TANF cash assistance and TANF-eligible individuals who are not recipients of cash assistance. (ii) Allowable expenses A qualifying entity may use funds awarded under this paragraph to carry out clause (i), including the following activities: (I) Administrative expenses. (II) Supportive services, including transportation and childcare, to enable individuals to participate in a program described in clause (i). (III) Wages and associated payroll costs for individuals participating in the subsidized employment program described in clause (i)(I). (iii) Eligibility for assistance (I) Requirement to use 75 percent of funds to assist recipients of TANF cash assistance A qualifying entity shall use not less than 75 percent of funds awarded to the entity under this paragraph to assist under the program described in clause (i)(I) (and, if the entity so elects, the program described in clause (i)(II)) recipients of TANF cash assistance and may use the remainder of the funds to assist TANF-eligible individuals who are not recipients of cash assistance. (II) Recipient of TANF cash assistance In this subparagraph, the term recipient of TANF cash assistance (aa) has attained 18 years of age and has not attained 67 years of age; and (bb) is not employed and is determined by the qualifying entity to have been unsuccessful at obtaining paid employment after participating in a job search program; and— (AA) is a member of a family that receives cash assistance under the State program funded under this part or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)); or (BB) is a noncustodial parent of a minor child residing with a family described in subitem (AA), in a case in which the parent is not considered by the State to be a member of the family. (III) TANF-eligible individual who is not a recipient of cash assistance In this subparagraph, the term TANF-eligible individual who is not a recipient of cash assistance (aa) has attained 18 years of age and has not attained 67 years of age; (bb) is not employed and is determined by the qualifying entity to have been unsuccessful at obtaining paid employment after participating in a job search program; (cc) is not an individual described in subitems (AA) or (BB) of subclause (II)(bb); and (dd) is a member of a family that includes a minor child residing with the family (including a noncustodial parent of the child) if the family has an income that is less than the poverty line (as defined in section 673(2) of the Omnibus Budget Reconciliation Act of 1981, including any revision required by such section, applicable to a family of the size involved). (E) Annual report (i) Subsidized employment For each fiscal year for which a qualifying entity receives a grant under this paragraph, the entity shall submit to the Secretary, within 6 months after the end of the fiscal year, a report on the subsidized employment program described in subparagraph (D)(i)(I), which shall— (I) describe the structure of the activities of the entity to use the grant funds to subsidize employment for individuals participating in the program (in this clause referred to as subsidized employees (II) for each month of the fiscal year, specify the number of individuals whose employment is subsidized with these funds and the percentage of such individuals whose employment is in an area that matches their previous training and work experience; (III) describe the qualifying entity’s policies in effect during the fiscal year— (aa) to ensure nondisplacement as required under paragraph (4)(A); and (bb) to implement grievance procedures as required in (4)(B), including information on the number of grievance claims filed in the preceding fiscal year and the aggregate results of those claims; (IV) describe requirements imposed on employers by the State as a condition of participating in the program; (V) describe the types of jobs in which subsidized employees are placed; (VI) provide demographic information for subsidized employees and for the target population the entity seeks to assist under the program; (VII) specify the average number of hours worked per week by a subsidized employee; (VIII) specify the average length of time for which a subsidized employee participates in the program; (IX) describe the employment outcomes for subsidized employees after participating in the program, including the number of individuals hired by an employer with which the individual was placed during the program and the number of individuals hired by other employers; (X) specify the percentage of subsidized employees who are in unsubsidized employment during the second quarter after the subsidy ended; (XI) specify the percentage of subsidized employees who are in unsubsidized employment during the fourth quarter after the subsidy ended; (XII) specify the median earnings of subsidized employees who are in unsubsidized employment during the second quarter after the subsidy ended; and (XIII) specify the number of subsidized employees who concurrently received other Federal or State means-tested benefits during their subsidized employment. (ii) Sectoral skills training If a qualifying entity elects to conduct a sectoral skills training program described in subparagraph (D)(i)(II), the report required under clause (i) of this subparagraph shall also include a description of— (I) the design of the program; (II) the industries in which individuals receiving assistance under the program (in this clause referred to as trainees (III) demographic information for trainees and for the target population the entity seeks to assist under the program; (IV) the total number of trainees participating in the program during the fiscal year; (V) the average number of hours per week for which a trainee receives training; (VI) the average length of time for which a trainee participates in the program; and (VII) the employment outcomes for trainees after participating in the program. (F) Evaluation The Secretary shall establish and implement a rigorous system for evaluating the success of subsidized employment programs and sectoral training programs conducted pursuant to this paragraph. (4) Limitations (A) Nondisplacement A State to which a grant is made under this subsection shall ensure that no participant in a subsidized job program funded in whole or in part under this subsection is employed or assigned to a job under the program— (i) when any other individual is on layoff from the same or any substantially equivalent job; or (ii) if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction of its workforce in order to fill the vacancy so created with a participant in such subsidized job program. (B) Grievance procedure A State with a program funded under this subsection shall establish and maintain a grievance procedure for resolving complaints of alleged violations of subparagraph (A). (C) No preemption Nothing in this paragraph shall preempt or supersede any provision of State or local law that provides greater protection for employees from displacement. (5) Definitions In this subsection: (A) Indian tribe; tribal organization The terms Indian tribe tribal organization 25 U.S.C. 450b (B) Sectoral skills training The term sectoral skills training (C) State The term State (D) Territories The term territories . (b) Program participants counted toward work participation rate Section 407(b) of such Act ( 42 U.S.C. 607(b) (5) State option to include subsidized employment and sectoral skills training participants If an individual who is not a recipient of assistance under the State program funded under this part (or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i))) participates in work activities for not less than the minimum average number of hours per week specified in the table in subsection (c)(1) of this section during a month as part of a State’s subsidized employment or sectoral skills training program funded under section 403(b), the State may count the individual as a family that includes an adult or a minor child head of household who is engaged in work for the month for purposes of paragraph (1)(B) of this subsection. . (c) State Plan Required To Include Description of Employment Programs Section 402(a)(1)(B) of such Act ( 42 U.S.C. 602(a)(1)(B) (vi) The document shall indicate whether the State intends to apply for a grant to conduct a subsidized employment program and, if the State so chooses, a sectoral skills training program, under section 403(b). If so, the document shall include a description of the program or programs the State intends to conduct using the grant funds and a description of how the program or programs will serve noncustodial parents of minor children. . (d) Grants exempted from territorial payment ceiling Section 1108(a)(2) of such Act ( 42 U.S.C. 1308(a)(2) 403(b), 403(a)(5), (e) Conforming Amendments To Retain Definition of a Needy State (1) Number of weeks for which job search counts as work Section 407(c)(2)(A) of such Act ( 42 U.S.C. 607(c)(2)(A) (A) in clause (i), by striking section 409(a)(7)(B)(i)) clause (iii) (B) by adding at the end the following: (iii) Needy State For purposes of clause (i), a State is a needy State for a month if— (I) the average rate of— (aa) total unemployment in such State (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published equals or exceeds 6.5 percent; and (bb) total unemployment in such State (seasonally adjusted) for the 3-month period equals or exceeds 110 percent of such average rate for either (or both) of the corresponding 3-month periods ending in the 2 preceding calendar years; or (II) as determined by the Secretary of Agriculture (in the discretion of the Secretary of Agriculture), the monthly average number of individuals (as of the last day of each month) participating in the supplemental nutrition assistance program in the State in the then most recently concluded 3-month period for which data are available exceeds by not less than 10 percent the lesser of— (aa) the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the supplemental nutrition assistance program in the corresponding 3-month period in fiscal year 1994 if the amendments made by titles IV and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout fiscal year 1994; or (bb) the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the supplemental nutrition assistance program in the corresponding 3-month period in fiscal year 1995 if the amendments made by titles IV and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout fiscal year 1995. . (2) Authority of Secretary to reduce work participation rate penalty due to circumstances that caused State to become needy State Section 409(a)(3)(C) of such Act ( 42 U.S.C. 609(a)(3)(C) section 403(b)(5) section 407(c)(2)(A)(iii) (f) Effective date The amendments made by this section shall apply with respect to fiscal years beginning after the date of the enactment of this Act. 203. Sense of Congress It is the sense of the Congress that a State to which a grant is made under section 403 of the Social Security Act should consider a noncustodial parent of a minor child, if the child is a recipient of assistance under a State program funded under part A of title IV of such Act (or under any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i) of such Act)), to be a member of the family of the child for purposes of providing assistance to the family, the child, and the noncustodial parent under the program. III Child support 301. Full family distribution and ban on recovery of Medicaid costs for births (a) Ban on recovery (1) In general Section 454 of the Social Security Act ( 42 U.S.C. 654 (A) by striking and (B) by striking the period at the end of paragraph (34) and inserting ; and (C) by inserting after paragraph (34) the following: (35) provide that, except as provided in section 1902(a)(25)(F)(ii), the State shall not use the State program operated under this part to collect any amount owed to the State by reason of costs incurred under the State plan approved under title XIX for the birth of a child for whom support rights have been assigned pursuant to section 1912. . (2) Rule of construction Nothing in section 454(35) of such Act, as added by paragraph (1), shall be construed as affecting the application of section 1902(a)(25) of such Act ( 42 U.S.C. 1396a(a)(25) (b) Clarification that ban on recovery does not apply with respect to insurance of a parent with an obligation To pay child support Clause (ii) of section 1902(a)(25)(F) of the Social Security Act ( 42 U.S.C. 1396a(a)(25)(F) only if such third-party liability is derived through insurance, seek (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section take effect on October 1, 2017. (2) Extension of effective date for state law amendment In the case of a State plan under title XIX of the Social Security Act which the Secretary of Health and Human Services determines requires State legislation in order for the plan to meet the additional requirements imposed by the amendments made by this section, the State plan shall not be regarded as failing to comply with the requirements of such title solely on the basis of its failure to meet these additional requirements before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of the session is considered to be a separate regular session of the State legislature. 302. State assessments of barriers to employment and financial support of children (a) State assessments and reports As a condition of the continued approval of a State plan under part D of title IV of the Social Security Act, each State with such an approved plan, acting through the appropriate State agencies, shall assess the State policies with respect to the issues described in subsection (b) that affect the ability of parents to pay child support, and shall submit a report to the Secretary of Health and Human Services on the results of the assessment not later than two years after the date of the enactment of this section. (b) Issues described The issues described in this subsection are the following: (1) The effect of State criminal laws and law enforcement practices on the employment acquisition, retention, and advancement prospects of an individual who is a parent of a minor child following arrest, conviction, or imprisonment, including— (A) any efforts, including counseling or employment support, to assist individuals released from custody with reentry to a community and successful reunification with their families; and (B) an assessment of any efforts to seal or expunge arrest and conviction records and any efforts to grant certificates or other acknowledgments of rehabilitation to parents returning from incarceration, and to examine State occupational licensing and certification procedures. (2) An assessment of State practices related to the collection of debts owed by individuals to the State, including criminal justice fees and fines and child support debt. (3) An assessment of State practices related to providing parents returning from incarceration with valid identification documents upon release from prison. (4) Identification of any other barriers to healthy family formation, family reunification, coparenting, or sustainable economic opportunity for custodial and noncustodial parents that are created or exacerbated by Federal or State laws, policies, or procedures, including an examination of the rules of Federal and State means-tested programs, the operation of the State workforce system, the availability of financial education services, and the availability of domestic violence services and child support procedures to help victims of domestic violence stay safe and obtain the child support they are owed. 303. Public reporting on consequences for nonpayment (a) Report to Congress Section 452(a)(10) of the Social Security Act ( 42 U.S.C. 652(a)(10) (1) in subparagraph (H), by striking and (2) by adding at the end the following: (J) the number of cases, by State, in which each of the following consequences for nonpayment of support was incurred by an obligor: (i) a loss of liberty due to a criminal conviction or finding of civil contempt; (ii) a suspension of a driver’s license; (iii) a suspension of a professional, occupational, or recreational license; (iv) withholding of a passport; or (v) late payment fees, interest charged (including the amount and rate of interest), and other financial sanctions; and . (b) State plan Section 454 of such Act ( 42 U.S.C. 654 (1) by striking and (2) by striking the period at the end of paragraph (35) and inserting ; and (3) by adding at the end the following: (36) provide that the State will maintain a full record of child support enforcement activities, including the consequences incurred by obligors as described in section 452(a)(10)(J). . (c) Collection and reporting of child support enforcement data Section 469 of such Act ( 42 U.S.C. 669 (e) Consequences for nonpayment The Secretary shall collect and maintain up-to-date statistics, by State, and on a fiscal year basis, on the number of cases in which each consequence for nonpayment of support described in section 452(a)(10)(J) was incurred by an obligor. . 304. Early intervention to ensure regular payment of support and prevent overdue support (a) Procedures To provide job services for noncustodial parents Section 466(a) of the Social Security Act ( 42 U.S.C. 666(a) (20) Procedures To intervene early To ensure regular payment of support and prevent overdue support (A) In general If the State elects to provide job services to noncustodial parents (as described in the State plan pursuant to section 454(37)), procedures— (i) under which the State shall prioritize early intervention efforts and make such services available on a voluntary basis prior to a determination that the individual owes overdue support as specified in paragraph (15); (ii) under which the State shall establish criteria for eligibility to receive such services, which shall restrict eligibility to noncustodial parents— (I) with respect to whom there is an open child support case under the State program funded under this part; (II) who are unemployed or underemployed; (III) who are not making regular child support payments; (IV) who do not receive assistance under a State program funded under part A (or under any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i))); (V) who do not participate in an employment and training program under section 6(d)(4) of the Food and Nutrition Act of 2008 (but who may receive supplemental nutrition assistance benefits under such Act); and (VI) who do not receive the same job services under the Workforce Innovation and Opportunity Act; (iii) under which the State agency administering a program under a State plan approved under this part shall provide, including through contract or cooperative agreement, job services that may include— (I) job search assistance; (II) job readiness training; (III) job development and job placement services; (IV) skills assessments to facilitate job placement; (V) job retention services; (VI) certificate programs and other skills training directly related to employment, which may include activities to improve literacy and basic skills, such as programs to complete high school or a General Education Development (GED) certificate, as long as such activities and programs are included in the State job services plan pursuant to section 454(37); (VII) long-term and short-term subsidized employment or public-private career pathway partnerships; (VIII) substance abuse treatment; (IX) mental health services; (X) occupational skills training, including college credit programs; and (XI) work supports, such as transportation assistance, uniforms, and tools; and (iv) under which the State shall ensure that participation in any such services is voluntary and shall inform potential participants that such participation is voluntary. (B) Definition An Indian tribe or tribal organization (as defined in subsections (e) and (l) of section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450b . (b) Performance tracking Section 452(a) of such Act ( 42 U.S.C. 652(a) (1) in paragraph (1), by striking and (2) in paragraph (11), by striking the period at the end and inserting ; and (3) by adding at the end the following: (12) (A) consult with States, Indian tribes, and tribal organizations (as defined in subsections (e) and (l) of section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450b (B) in carrying out section 466(a), collaborate with the Secretary of Labor and the Secretary of Agriculture to identify best practices and minimize duplication of services under employment and training programs for noncustodial parents administered by the Departments of Health and Human Services, Labor, and Agriculture. . (c) State plan Section 454 of such Act ( 42 U.S.C. 654 (1) in paragraph (35), by striking and (2) in paragraph (36), by striking the period at the end and inserting ; and (3) by inserting after paragraph (36) the following: (37) include— (A) a description of work activities in which the State requires noncustodial parents to participate pursuant to section 466(a)(15); (B) a description of any job services the State elects to provide to noncustodial parents, and criteria for eligibility to receive such services, under section 466(a)(20), or an explanation of why the State elects not to provide such services; (C) an explanation of how the State will coordinate job services and work activities provided under this title with the State workforce development system (as such term is defined in section 3(67) of the Workforce Innovation and Opportunity Act), local responsible fatherhood programs (including such programs funded by a grant awarded under section 403(a)(2)), local prisoner reentry programs, and other local employment and training programs; and (D) if applicable, a description of the State plan for implementing measures for tracking the successful performance of the State voluntary job services program consistent with section 452(a)(12)(A). . (d) Payments to States Section 455(a)(1)(A) of such Act ( 42 U.S.C. 655(a)(1)(A) including public and private non-Federal funds, (e) Effective date The amendments made by this section shall take effect on the date that is one year after the date of the enactment of this section. 305. Improved collection and distribution of child support (a) Distribution of child support (1) Full distribution of child support collected; reform of rules for distribution of child support collected on behalf of children in foster care (A) In general Section 457 of the Social Security Act ( 42 U.S.C. 657 (i) by amending subsection (a) to read as follows: (a) Full distribution of amounts collected on behalf of any family Subject to subsections (b) and (c), the entire amount of support collected by a State on behalf of any family receiving services pursuant to a plan approved under this part shall be paid to the family in accordance with this section. ; (ii) by amending subsection (b) to read as follows: (b) Continuation of assignments (1) In general Any rights to support obligations that are assigned to a State under this part on behalf of a family receiving assistance and in effect before the implementation date of this section may remain assigned after such date and distributed under the provisions and limitations of the Deficit Reduction Act of 2005. (2) Option to terminate assignments A State may choose to discontinue any assignment of a support obligation described in paragraph (1) and may treat amounts collected pursuant to the assignment as if the amounts had never been assigned and may distribute the amounts to the family in accordance with subsection (a). ; (iii) by striking subsections (c) and (d) and redesignating subsection (e) as subsection (c); and (iv) in subsection (c) (as so redesignated), by striking paragraph (1) and all that follows and inserting the following: (1) shall be used to provide supplemental services that serve the best interests of such child in a manner that best meets the future needs and educational, health, and employment interests of the child, or be deposited in— (A) an account of the type described in section 1631(a)(2)(F) of this Act; (B) an ABLE account established under section 529A (C) an individual development account established pursuant to Federal or State law; or (D) any other account in which benefits for the child may be conserved in a manner that the State determines, consistent with this paragraph, is in the best interests of the child; and (2) shall supplement and not supplant any other Federal funds or programs that may be available for the benefit of the child. . (B) Foster care state plan amendment Section 471(a)(17) of such Act ( 42 U.S.C. 671(a)(17) (i) by inserting and consistent with the child's case plan where appropriate (ii) by striking secure an assignment to the State of any rights to support establish paternity and establish, modify, and enforce child support obligations (C) Child support State plan amendment Section 454 of such Act ( 42 U.S.C. 654 (i) in paragraph (36), by striking and (ii) in paragraph (37), by striking the period and inserting ; and (iii) by inserting after paragraph (37) the following: (38) provide that a State shall pay all collected child support to the family in accordance with section 457. . (D) Support payments collected prior to effective date Section 454(5) of such Act ( 42 U.S.C. 654(5) such payments support payments collected entered into prior to the effective date of section 204 of the Julia Carson Responsible Fatherhood and Healthy Families Act of 2017 (2) Conforming amendments (A) Section 409(a)(7)(B)(i)(I)(aa) of such Act (42 U.S.C. 609(a)(7)(B)(i)(I)(aa)) is amended by striking 457(a)(1)(B) 457(a) (B) Section 454(34) of such Act ( 42 U.S.C. 654(34) 457(a)(2)(B) 457(b) (C) Section 456(a)(1) of such Act ( 42 U.S.C. 656(a)(1) and shall be distributed in accordance with section 457 local processes (D) Section 466(a)(3)(B) of such Act ( 42 U.S.C. 666(a)(3)(B) (i) by striking shall be distributed in accordance with section 457 in the case of overdue support assigned to a State pursuant to section 408(a)(3) or 471(a)(17), or, in any other case, (ii) by inserting or to the public agency responsible for supervising the placement of the child receiving foster care maintenance payments under section 472, which may use such payments in the manner the public agency determines will serve the best interest of the child, consistent with section 457(c) (b) Prohibition on conditioning receipt of TANF on assignment of support Section 408(a)(3) of the Social Security Act ( 42 U.S.C. 608(a)(3) (1) in the paragraph heading, by striking No assistance for families not Prohibition on conditioning assistance for families on (2) by inserting not shall (3) by inserting or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)) this part (4) by striking , not exceeding the total amount of assistance so paid to the family, (c) Requirement To disregard percentage of child support collected in determining amount and type of TANF assistance Section 408(a) of such Act ( 42 U.S.C. 608(a) (14) Requirement to disregard percentage of child support collected in determining amount and type of TANF assistance A State to which a grant is made under section 403 shall disregard at least the same percentage of amounts collected as support on behalf of a family as the percentage of earned income that the State disregards, in determining the amount or type of assistance provided to the family under the State program funded under this part or under a program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)). . (d) Restoration of Federal funding Effective on the date of enactment of this Act, section 7309 of the Deficit Reduction Act of 2005 ( Public Law 109–171 (e) Repeal of mandatory fee for child support collection Effective on the date of enactment of this Act, section 7310 of the Deficit Reduction Act of 2005 ( Public Law 109–171 (f) Study and report Not later than October 1, 2018, the Secretary of Health and Human Services shall study and submit a report to Congress regarding the following: (1) The effect of age eligibility restrictions for the earned income tax credit established under section 32 (A) the ability of young parents to pay child support; (B) compliance with child support orders; and (C) the relationship between young noncustodial parents and their children. (2) The impact of State earned income tax credit programs, especially such programs with targeted benefits for noncustodial parents, on— (A) the ability of noncustodial parents to pay child support; (B) compliance with child support orders; and (C) the relationship between noncustodial parents and their children. (3) The challenges faced by legal immigrants and individuals for whom English is not their primary language in fulfilling child support and other noncustodial parenting obligations. (g) Effective date (1) In general Except as otherwise provided in this section, the amendments made by this section shall take effect on October 1, 2018, and shall apply to payments under parts A and D of title IV of the Social Security Act for calendar quarters beginning on or after that date, without regard to whether regulations to implement the amendments are promulgated by such date. (2) State option to accelerate effective date Notwithstanding paragraph (1), a State may elect to have the amendments made by the preceding provisions of this section apply to the State and to amounts collected by the State (and to payments under such parts), on and after such date as the State may select that is not later than September 30, 2018. 306. Services and activities to support noncustodial parenting time (a) Report to Congress Section 452(a)(10) of the Social Security Act ( 42 U.S.C. 652(a)(10) (1) in subsection (J), by striking and (2) by adding at the end the following: (K) a summary of efforts by the State to provide early intervention services and activities that aim to improve the ability and willingness of noncustodial parents to support their children, including by— (i) supporting and improving paternity establishment, child support order establishment, and collections outcomes; and (ii) facilitating and assisting parents in accessing court processes to establish parenting time arrangements, assisting obligors with employment needs, or providing other allowable services or activities to carry out the State responsibilities under this part: and . (b) State plan Section 454 of such Act ( 42 U.S.C. 654 (1) in paragraph (37), by striking and (2) in paragraph (38), by striking the period at the end and inserting ; and (3) by adding at the end the following: (39) describe efforts by the State to provide early intervention services and activities that aim to improve the ability and willingness of noncustodial parents to support their children, including by— (A) supporting and improving paternity establishment, child support order establishment, and collections outcomes; and (B) facilitating and assisting parents in accessing court processes to establish parenting time arrangements, assisting obligors with employment needs, or providing other allowable services or activities to carry out the State responsibilities under this part. . (c) Determinations of cost-Effectiveness performance level Section 458(b)(6)(E) is amended— (1) by redesignating clause (ii) as clause (iii); and (2) by inserting after clause (i) the following: (ii) Exception for amount spent on early intervention services and activities For the purposes of subsection (i), the total amount expended during the fiscal year under the State plan shall be reduced by an amount equal to the amount expended by the State for the fiscal year on early intervention services and activities intended to improve the ability and willingness of noncustodial parents to support their children, including by— (I) improving paternity establishment, child support order establishment, and collections outcomes; and (II) offering parenting time arrangements, assisting obligors with employment needs, or providing other allowable services or activities to carry out the State responsibilities under this part, except that such reduced amount may not exceed 10 percent of such total amount expended during the fiscal year under the State plan. . (d) Allotments to States for access and visitation program grants Section 469B(c)(1) of such Act ( 42 U.S.C. 669b(c)(1) $10,000,000 $20,000,000 IV Revenue provision 401. Increase in credit percentage under earned income tax credit for eligible individuals with no qualifying children (a) In general The row in the table in section 32(b)(1) No qualifying children 20 7.65 . (b) Income phaseout for eligible individuals with no qualifying children The table in section 32(b)(2)(A) of such Code is amended by striking $5,280 $11,500 (c) Reduction of marriage penalty made permanent Section 32(b)(2)(B) of such Code is amended to read as follows: (B) Joint returns In the case of a joint return filed by an eligible individual and such individual’s spouse, the phaseout amount determined under subparagraph (A) shall be increased by $5,000. . (d) Increase in age range for eligible individuals with no qualifying child Section 32(c)(1)(A)(ii)(II) of such Code is amended— (1) by striking age 25 age 21 (2) by striking age 65 age 68 (e) Taxpayer eligible for credit for individuals with no qualifying children if qualifying children do not have valid Social Security numbers Section 32(c)(1)(F) of such Code is amended to read as follows: (F) Individuals who do not include TIN, etc., of any qualifying child In the case of any eligible individual who has one or more qualifying children, if— (i) no qualifying child of such individual is taken into account under subsection (b) by reason of paragraph (3)(D), and (ii) no child of such individual is taken into account for purposes of any other child tax benefit under this chapter, for purposes of the credit allowed under this section, such individual may be considered an eligible individual without a qualifying child. . (f) Expanding the EITC for certain former foster youth Section 32(c)(1) of such Code, as amended by subsection (e), is amended by adding at the end the following: (G) Foster youth (i) In general For purposes of subparagraph (A), the term eligible individual (ii) Qualified foster youth defined For purposes of clause (i), the term qualified foster youth (I) has attained age 18 but not attained age 21 before the close of the taxable year, and (II) on or after attaining the age of 14 was placed in a foster family home by an agency of a State or a political subdivision thereof or by a qualified foster care placement agency (as defined by section 131(b)(3)). . (g) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. V Supplemental nutrition assistance 501. Collection of child support under the supplemental nutrition assistance program (a) Encouragement of collection of child support Section 5 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2014 (1) in subsection (e)— (A) by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; (B) in paragraph (4)(B), by striking paragraph (6) paragraph (7) (C) by inserting after paragraph (4) the following: (5) Deduction for child support received (A) In general A household shall be allowed a deduction of 20 percent of all legally obligated child support payments received from an identified or putative parent of a child in the household if that parent is not a household member. (B) Order of determining deductions A deduction under this paragraph shall be determined before the computation of the excess shelter deduction under paragraph (7). ; and (2) in subsection (k)(4)(B), by striking subsection (e)(6) subsection (e)(7) (b) Simplified verification of child support payments Section 5(n) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2014(n) (1) in the subsection heading, by striking State options to simplify Simplified (2) by striking Regardless of whether (1) In general A household that is paying legally obligated child support through the program under part D of title IV of the Social Security Act ( 42 U.S.C. 651 (A) a deduction under subsection (e)(4); or (B) an exclusion under subsection (d)(6); for child support payments made. (2) State options Regardless of whether . (c) Inclusion of economic opportunities programs in definition of work program Section 6(o)(2) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015(o)(2) (1) in subparagraph (C), by striking or (2) in subparagraph (D), by striking the period at the end and inserting ; or (3) by adding at the end the following: (E) participate in and comply with the requirements of a State program to provide job services to noncustodial parents as provided in section 466(a)(20) of the Social Security Act; . (d) Effective date (1) In general This section and the amendments made by this section take effect on October 1, 2017. (2) Implementation A State shall implement the amendments made by subsections (a) and (b) for participating households at the 1st certification, or 1st recertification, of the household that occurs on or after October 1, 2017.

Summary: Julia Carson Responsible Fatherhood and Healthy Families Act of 2017 This bill addresses issues related to child support and low-income families, including by reauthorizing the Temporary Assistance for Needy Families (TANF) program and revising the earned income tax credit.