699
HR 1990 IH
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, the amount of the
employment-related expenses incurred during
any taxable year which may be taken into ac-
count under subsection (a) shall not exceed—
‘‘(i) in the case of an individual who
is not married at the close of such year,
such individual’s earned income for such
year, or
‘‘(ii) in the case of an individual who
is married at the close of such year, the
lesser of such individual’s earned income or
the earned income of his spouse for such
year.
‘‘(B) SPECIAL RULE FOR SPOUSE WHO IS
A
STUDENT
OR
INCAPABLE
OF
CARING
FOR
HIMSELF.—In the case of a spouse who is a
student or a qualified individual described in
subsection (d)(3), for purposes of subparagraph
(A), such spouse shall be deemed for each
month during which such spouse is a full-time
student at an educational institution, or is such
a qualifying individual, to be gainfully employed
and to have earned income of not less than—
700
HR 1990 IH
‘‘(i) $200 if paragraph (2)(A)(i) ap-
plies for the taxable year, or
‘‘(ii) $400 if paragraph (2)(A)(ii) ap-
plies for the taxable year.
In the case of any husband and wife, this sub-
paragraph shall apply with respect to only one
spouse for any one month.
‘‘(c) RESPITE CARE EXPENSES.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘respite care ex-
penses’ means expenses paid (whether or not to en-
able the taxpayer to be gainfully employed) for—
‘‘(A) the care of a qualifying individual—
‘‘(i) who has attained the age of 13,
or
‘‘(ii) who is under the age of 13 but
has a physical or mental impairment which
results in the individual being incapable of
caring for himself,
during any period when such individual regu-
larly spends at least 8 hours each day in the
taxpayer’s household, or
‘‘(B) the care (for not more than 14 days
during the calendar year) of a qualifying indi-
vidual described in subparagraph (A) during
701
HR 1990 IH
any period during which the individual does not
regularly spend at least 8 hours each day in the
taxpayer’s household.
‘‘(2) DOLLAR LIMIT.—The amount of the res-
pite care expenses incurred during any taxable year
which may be taken into account under subsection
(a) shall not exceed—
‘‘(A) $1,200 if such expenses are incurred
with respect to only 1 qualifying individual for
the taxable year, or
‘‘(B) $2,400 if such expenses are incurred
for 2 or more qualifying individuals for such
taxable year.
‘‘(d) QUALIFYING INDIVIDUAL.—For purposes of this
section, the term ‘qualifying individual’ means—
‘‘(1) a dependent of the taxpayer who is under
the age of 13 and with respect to whom the taxpayer
is entitled to a deduction under section 151(c),
‘‘(2) a dependent of the taxpayer who is phys-
ically or mentally incapable of caring for himself, or
‘‘(3) the spouse of the taxpayer, if he is phys-
ically or mentally incapable of caring for himself.
‘‘(e) 
SPECIAL
RULES.—For 
purposes 
of 
this
section—
702
HR 1990 IH
‘‘(1) MAINTAINING
HOUSEHOLD.—An indi-
vidual shall be treated as maintaining a household
for any period only if over half the cost of maintain-
ing the household for such period is furnished by
such individual (or, if such individual is married
during such period, is furnished by such individual
and his spouse).
‘‘(2) MARRIED COUPLES MUST FILE JOINT RE-
TURN.—If the taxpayer is married at the close of
the taxable year, the credit shall be allowed under
subsection (a) only if the taxpayer and his spouse
file a joint return for the taxable year.
‘‘(3) MARITAL STATUS.—An individual legally
separated from his spouse under a decree of divorce
or of separate maintenance shall not be considered
as married.
‘‘(4) CERTAIN
MARRIED
INDIVIDUALS
LIVING
APART.—If—
‘‘(A) an individual who is married and who
files a separate return—
‘‘(i) maintains as his home a house-
hold that constitutes for more than one-
half of the taxable year the principal place
of abode of a qualifying individual, and
703
HR 1990 IH
‘‘(ii) furnishes over half the cost of
maintaining such household during the
taxable year, and
‘‘(B) during the last 6 months of such tax-
able year such individual’s spouse is not a mem-
ber of such household,
such individual shall not be considered as married.
‘‘(5) SPECIAL DEPENDENCY TEST IN CASE OF
DIVORCED PARENTS, ETC.—If—
‘‘(A) paragraph (2) or (4) of section
152(e) applies to any child with respect to any
calendar year, and
‘‘(B) such child is under the age of 13 or
is physically or mentally incapable of caring for
himself,
in the case of any taxable year beginning in such
calendar year, such child shall be treated as a quali-
fying individual with respect to the custodial parent
(within the meaning of section 152(e)(1)), and shall
not be treated as a qualifying individual with respect
to the noncustodial parent.
‘‘(6) PAYMENTS TO RELATED INDIVIDUALS.—
No credit shall be allowed under subsection (a) for
any amount paid by the taxpayer to an individual—
704
HR 1990 IH
‘‘(A) with respect to whom, for the taxable
year, a deduction under section 151(c) (relating
to deduction for personal exemptions for de-
pendents) is allowable either to the taxpayer or
his spouse, or
‘‘(B) who is a child of the taxpayer (within
the meaning of section 151(c)(3)) who has not
attained the age of 19 at the close of the tax-
able year.
For purposes of this paragraph, the term ‘taxable
year’ means the taxable year of the taxpayer in
which the service is performed.
‘‘(7) STUDENT.—The term ‘student’ means an
individual who during each of 5 calendar months
during the taxable year is a full-time student at an
educational organization.
‘‘(8) EDUCATIONAL ORGANIZATION.—The term
‘educational organization’ means an educational or-
ganization described in section 170(b)(1)(A)(ii).
‘‘(9) IDENTIFYING
INFORMATION
REQUIRED
WITH RESPECT TO SERVICE PROVIDER.—No credit
shall be allowed under subsection (a) for any amount
paid to any person unless—
705
HR 1990 IH
‘‘(A) the name, address, and taxpayer
identification number of such person are in-
cluded on the return claiming the credit, or
‘‘(B) if such person is an organization de-
scribed in section 501(c)(3) and exempt from
tax under section 501(a), the name and address
of such person are included on the return
claiming the credit.
In the case of a failure to provide the information
required under the preceding sentence, the preceding
sentence shall not apply if it is shown that the tax-
payer exercised due diligence in attempting to pro-
vide the information so required.
‘‘(f) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary to carry out the pur-
poses of this section.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 21 of such Code is repealed.
(2) Section 23(f)(1) of such Code and section
129(a)(2)(C) of such Code are each amended by
striking ‘‘section 21(e)’’ and inserting ‘‘section
36(e)’’.
(3) Section 129(b)(2) of such Code is amended
by striking ‘‘section 21(d)(2)’’ and inserting ‘‘section
36(b)(3)(B)’’.
706
HR 1990 IH
(4) Section 129(e)(1) of such Code is amended
by striking ‘‘under section 21(b)(2) (relating to ex-
penses for household and dependent care services
necessary for gainful employment)’’ and inserting
‘‘or respite care services under section 36 (relating
to dependent care services)’’.
(5) Section 213(e) of such Code is amended by
striking ‘‘section 21’’ and inserting ‘‘section 36’’.
(6) Section 6213(g)(2)(H) of such Code is
amended by striking ‘‘section 21 (related to expenses
for household and dependent care services necessary
for gainful employment)’’ and inserting ‘‘section 36
(relating to dependent care services)’’.
(c) TECHNICAL AMENDMENTS.—(1) The table of sec-
tions for subpart C of part IV of subchapter A of chapter
1 of such Code is amended by striking the item relating
to section 36 and inserting the following:
‘‘Sec. 36. Dependent care services.
‘‘Sec. 37. Overpayments of tax.’’.
(2) The table of sections for subpart A of such part
IV is amended by striking the item relating to section 21.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
707
HR 1990 IH
TITLE V—FAIR START—SUPPORT
TO PROMOTE WORK AND RE-
DUCE POVERTY
Subtitle A—Gateways Grant
Program
SEC. 5001. GATEWAYS GRANT PROGRAM.
(a) PURPOSES.—The purposes of this section are
to—
(1) inform low-income families with children
about programs available to families leaving welfare
and other programs to support low-income families
with children;
(2) provide incentives to States and counties to
improve and coordinate application and renewal pro-
cedures for low-income family with children support
programs; and
(3) track the extent to which low-income fami-
lies with children receive the benefits and services
for which they are eligible.
(b) DEFINITIONS.—In this section:
(1) LOCALITY.—The term locality means a mu-
nicipality that does not administer a temporary as-
sistance for needy families program funded under
part A of title IV of the Social Security Act (42
708
HR 1990 IH
U.S.C. 601 et seq.) (in this section referred to as
‘‘TANF’’).
(2) LOW-INCOME FAMILY WITH CHILDREN SUP-
PORT PROGRAM.—The term ‘‘low-income family with
children support program’’ means a program de-
signed to provide low-income families with assistance
or benefits to enable the family to become self-suffi-
cient and includes—
(A) TANF;
(B) the food stamp program established
under the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.) (in this section referred to as
‘‘food stamps’’);
(C) the medicaid program funded under
title XIX of the Social Security Act (42 U.S.C.
1396 et seq.);
(D) the State children’s health insurance
program (SCHIP) funded under title XXI of
the Social Security Act (42 U.S.C. 1397aa et
seq.);
(E) the child care program funded under
the Child Care Development Block Grant Act of
1990 (42 U.S.C. 9858 et seq.);
709
HR 1990 IH
(F) the child support program funded
under part D of title IV of the Social Security
Act (42 U.S.C. 651 et seq.);
(G) the earned income tax credit under
section 32 of the Internal Revenue Code of
1986;
(H) the low-income home energy assistance
program (LIHEAP) established under the Low-
Income Home Energy Assistance Act of 1981
(42 U.S.C 8621 et seq.);
(I) the special supplemental nutrition pro-
gram for women, infants, and children (WIC)
established under section 17 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786);
(J) programs under the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2801 et seq.); and
(K) any other Federal or State funded pro-
gram designed to provide family and work sup-
port to low-income families with children.
(3) NONPROFIT.—The term ‘‘nonprofit’’, as ap-
plied to a school, agency, organization, or institution
means a school, agency, organization, or institution
owned and operated by 1 or more nonprofit corpora-
tions or associations, no part of the net earnings of
710
HR 1990 IH
which inures, or may lawfully inure, to the benefit
of any private shareholder or individual.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(5) STATE.—The term ‘‘State’’ means each of
the several States of the United States, the District
of Columbia, the Commonwealth of Puerto Rico,
American Samoa, Guam, and the United States Vir-
gin Islands.
(c) AUTHORIZATION OF GRANTS.—
(1) STATES AND COUNTIES.—
(A) IN GENERAL.—The Secretary is au-
thorized to award grants to States and counties
to pay the Federal share of the costs involved
in improving the administration of low-income
family with children support programs, includ-
ing simplifying application, recertification, re-
porting, and verification rules.
(B) FEDERAL SHARE.—The Federal share
shall be 80 percent.
(2) NONPROFITS AND LOCALITIES.—The Sec-
retary is authorized to award grants to nonprofits
and localities to distribute information about and de-
velop service centers for low-income family with chil-
dren support programs.
711
HR 1990 IH
(d) GRANT APPROVAL CRITERIA.—
(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of Agriculture, shall establish
criteria for approval of an application for a grant
under this section that include consideration of—
(A) an applicant’s record of serving low-in-
come populations;
(B) an applicant’s ability to reach hard-to-
serve populations;
(C) the level of innovation in the appli-
cant’s grant proposal; and
(D) any partnerships between the public
and private sector in the applicant’s grant pro-
posal.
(2) SEPARATE
CRITERIA.—Separate criteria
shall be established for the grants authorized under
paragraphs (1) and (2) of subsection (c).
(e) USES OF FUNDS.—
(1) STATES AND COUNTIES.—
(A) 
IMPROVEMENTS
IN
PROGRAMS.—
Grants awarded to States and counties under
subsection (c)(1) shall be used to—
(i) simplify low-income family with
children support program application, re-
712
HR 1990 IH
certification, reporting, and verification
rules;
(ii) create uniformity in eligibility cri-
teria for low-income family with children
support programs;
(iii) develop options for families to
apply for low-income family with children
support programs through the telephone,
mail, facsimile, Internet, or electronic mail,
and submit any recertifications or reports
required for such families through these
options;
(iv) co-locate eligibility workers for
various low-income family with children
support programs at strategically located
sites; and
(v) develop or enhance one-stop serv-
ice centers for low-income family with chil-
dren support programs, including estab-
lishing evening and weekend hours at these
centers.
(B) CUSTOMER SURVEYS.—
(i) IN GENERAL.—A grant awarded to
a State or county under subsection (c)(1)
713
HR 1990 IH
shall be used to carry out a customer sur-
vey.
(ii) MODEL SURVEYS.—The customer
survey under clause (i) shall be modeled
after a form developed by the Secretary
under subsection (g).
(iii) REPORTS
TO
SECRETARY.—Not
later than 1 year after a State or county
is awarded a grant under subsection (c)(1),
and annually thereafter, the State or coun-
ty shall submit a report to the Secretary
detailing the results of the customer survey
carried out under clause (i).
(iv) REPORTS TO PUBLIC.—A State or
county receiving a grant under subsection
(c)(1) and the Secretary shall make the re-
port required under clause (iii) available to
the public.
(v) PUBLIC
COMMENT.—A State or
county receiving a grant under subsection
(c)(1) shall accept public comments and
hold public hearings on the report made
available under clause (iv).
(C) TRACKING SYSTEMS.—
714
HR 1990 IH
(i) IN GENERAL.—A grant awarded to
a State or county under subsection (c)(1)
shall be used to implement a tracking sys-
tem to determine the level of participation
in low-income family with children support
programs of the eligible population.
(ii) REPORTS.—Not later than 1 year
after a State or county is awarded a grant
under subsection (c)(1), and annually
thereafter, the State or county shall submit
a report to the Secretary detailing the ef-
fectiveness of the tracking system imple-
mented under clause (i).
(D) REPORTING.—A State or county
awarded a grant under subsection (c)(1) shall
adopt the most favorable options available
under Federal law to reduce or eliminate re-
quirements for low-income families receiving as-
sistance under TANF or food stamps to report
changes in income, residence, or employment,
including such requirements as they relate to
the determination of State expenditures to meet
TANF maintenance of effort requirements.
715
HR 1990 IH
(E) IN-PERSON INTERVIEWS.—A State or
county awarded a grant under subsection
(c)(1)—
(i) may expend funds made available
under the grant to provide for reporting
and recertification procedures through the
telephone, mail, facsimile, Internet, or elec-
tronic mail; and
(ii) shall adopt the most favorable op-
tions available under Federal law to reduce
or eliminate requirements for in-person
interviews for redeterminations of eligi-
bility for TANF or food stamps.
(F) 
SHARING
DOCUMENTATION
AND
VERIFICATION INFORMATION.—A grant award-
ed to a State or county under subsection (c)(1)
shall be used to develop procedures by which—
(i) a low-income family is relieved of
the requirement to present documentation
to establish eligibility for various low-in-
come family with children support pro-
grams where information concerning the
family’s income exists in State databases
and the family is provided adequate oppor-
716
HR 1990 IH
tunity to review, correct, and contest such
information;
(ii) a low-income family is given the
option to present the same documentation
to establish eligibility for various low-in-
come family with children support pro-
grams; and
(iii) verification of the documentation
presented under clause (ii) is shared
among agencies with responsibility for the
administration of low-income family with
children support programs.
(G) 
JURISDICTION-WIDE
IMPLEMENTA-
TION.—
(i) IN GENERAL.—A grant awarded to
a State or county under subsection (c)(1)
shall be used for activities throughout the
jurisdiction.
(ii) EXCEPTION.—A State or county
awarded a grant under subsection (c)(1)
may use grant funds to develop one-stop
service centers and telephone, mail, fac-
simile, Internet, or electronic mail applica-
tion and renewal procedures for low-income
family with children support programs
717
HR 1990 IH
without regard to the requirements of
clause (i).
(H) SUPPLEMENT NOT SUPPLANT.—Funds
provided to a State or county under a grant
awarded under subsection (c)(1) shall be used
to supplement and not supplant other State or
county public funds expended to provide sup-
port services for low-income families.
(2) NONPROFITS
AND
LOCALITIES.—A grant
awarded to a nonprofit or locality under subsection
(c)(2) shall be used to—
(A) develop one-stop service centers for
low-income family with children support pro-
grams in cooperation with States and counties;
and
(B) provide information about and refer-
rals to low-income family with children support
programs through the dissemination of mate-
rials at strategic locations, including schools,
clinics, and shopping locations.
(f) APPLICATION.—
(1) IN GENERAL.—Each applicant desiring a
grant under paragraph (1) or (2) of subsection (c)
shall submit an application to the Secretary at such
718
HR 1990 IH
time, in such manner, and accompanied by such in-
formation as the Secretary may reasonably require.
(2) STATES AND COUNTIES.—
(A) NON-FEDERAL SHARE.—Each State or
county applicant shall provide assurances that
the applicant will pay the non-Federal share of
the activities for which a grant is sought.
(B) CERTIFICATION PERIODS.—
(i) IN GENERAL.—In order to receive
a grant under subsection (c)(1), each State
or county applicant shall provide assur-
ances that the applicant will establish cer-
tification periods of at least 1 year for
TANF and food stamps.
(ii) 
EXCEPTION.—The 
certification
period under clause (i) may be extended to
2 years for households in which all mem-
bers of the household are elderly or dis-
abled.
(C) PARTNERSHIPS.—Each State or coun-
ty applicant shall submit a memorandum of un-
derstanding demonstrating that the applicant
has entered into a partnership to coordinate its
efforts under the grant with the efforts of other
State and county agencies that have responsi-
719
HR 1990 IH
bility for providing low-income families with as-
sistance or benefits.
(g) DUTIES OF THE SECRETARY.—
(1) SURVEY FORM.—The Secretary, in coopera-
tion with other relevant agencies, shall develop a
customer survey form to determine whether low-in-
come families—
(A) encounter any impediments in applying
for or renewing their participation in low-in-
come family with children support programs;
and
(B) are unaware of low-income family with
children support programs for which they are
eligible.
(2) REPORTS.—
(A) ANNUAL REPORTS.—Not later than 1
year after the date of enactment of this Act,
and annually thereafter, the Secretary shall
submit a report to Congress describing the uses
of grant funds awarded under this section.
(B) RESULTS OF TRACKING SYSTEMS AND
SURVEYS.—The Secretary shall submit a report
to Congress detailing the results of the tracking
systems implemented and customer surveys car-
ried out by States and counties under sub-
720
HR 1990 IH
section (e) as the information becomes avail-
able.
(h) MISCELLANEOUS.—
(1) MATCHING FUNDS.—
(A) IN
GENERAL.—Matching funds re-
quired from a State or county awarded a grant
under subsection (c)(1) may—
(i) include in-kind services and ex-
penditures by municipalities and private
entities; and
(ii) be considered a qualified State ex-
penditure for purposes of determining
whether the State has satisfied the mainte-
nance of effort requirements of the tem-
porary assistance for needy families pro-
gram under section 409(a)(7) of the Social
Security Act (42 U.S.C. 609(a)(7)).
(B) CONFORMING
AMENDMENT.—Section
409(a)(7)(B)(iv) of the Social Security Act (42
U.S.C. 609(a)(7)(B)(iv)) is amended by striking
‘‘title.’’ and inserting ‘‘title, and also includes
State funds which are expended as a condition
of receiving Federal funds under a grant made
under section 5001 of the Leave No Child Be-
hind Act.’’.
721
HR 1990 IH
(2) LIMITATION ON EXPENDITURES.—
(A) IN GENERAL.—Subject to paragraph
3—
(i) not more than 20 percent of a
grant awarded under subsection (c) shall
be expended on customer surveys or track-
ing systems; and
(ii) except as provided in subpara-
graph (B), not more than 15 percent of a
grant awarded under subsection (c) shall
be expended on administrative costs.
(B) AUTOMATION EXCEPTION.—The limi-
tation on administrative expenditures under
subparagraph (A)(ii) shall not apply to expendi-
tures for the acquisition, implementation, or
maintenance of information technology, comput-
erization, or other automated data processing to
accomplish the purposes of a grant awarded
under subsection (c).
(3) REVERSION OF FUNDS.—Any funds not ex-
pended by a grantee within 2 years after awarded a
grant shall be available for redistribution among
other grantees in such manner and amount as the
Secretary may determine, unless the Secretary ex-
722
HR 1990 IH
tends by regulation the 2-year time period to expend
funds.
(4) 
NONAPPORTIONMENT.—Notwithstanding
any other provision of law, a State, county, locality,
or nonprofit awarded a grant under subsection (c) is
not required to apportion the costs of providing in-
formation about low-income family with children
support programs among all low-income family with
children support programs.
(5) ADMINISTRATIVE
COSTS
OF
THE
SEC-
RETARY.—Not more than 5 percent of the funds ap-
propriated to carry out this section shall be ex-
pended on administrative costs of the Secretary.
(i) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$500,000,000 for the period of fiscal years 2002 through
2006.
Subtitle B—Support From Both
Parents
CHAPTER 1—CHILD SUPPORT
DISTRIBUTION
SEC. 5101. SHORT TITLE.
This subtitle may be cited as the ‘‘Child Support Dis-
tribution Act of 2001’’.
723
HR 1990 IH
Subchapter A—Distribution of Child Support
SEC. 5111. DISTRIBUTION OF CHILD SUPPORT COLLECTED
BY STATES ON BEHALF OF CHILDREN RE-
CEIVING CERTAIN WELFARE BENEFITS.
(a) MODIFICATION OF RULE REQUIRING ASSIGN-
MENT OF SUPPORT RIGHTS AS A CONDITION OF RECEIV-
ING TANF.—Section 408(a)(3) of the Social Security Act
(42 U.S.C. 608(a)(3)) is amended to read as follows:
‘‘(3) NO ASSISTANCE FOR FAMILIES NOT AS-
SIGNING
CERTAIN
SUPPORT
RIGHTS
TO
THE
STATE.—A State to which a grant is made under
section 403 shall require, as a condition of providing
assistance to a family under the State program
funded under this part, that a member of the family
assign to the State any rights the family member
may have (on behalf of the family member or of any
other person for whom the family member has ap-
plied for or is receiving such assistance) to support
from any other person, not exceeding the total
amount of assistance so provided to the family,
which accrues during the period that the family re-
ceives assistance under the program.’’.
(b) INCREASING CHILD SUPPORT PAYMENTS
TO
FAMILIES AND SIMPLIFYING CHILD SUPPORT DISTRIBU-
TION RULES.—
724
HR 1990 IH
(1) DISTRIBUTION RULES.—
(A) IN GENERAL.—Section 457(a) of such
Act (42 U.S.C. 657(a)) is amended to read as
follows:
‘‘(a) IN GENERAL.—Subject to subsections (e) and
(f), the amounts collected on behalf of a family as support
by a State pursuant to a plan approved under this part
shall be distributed as follows:
‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the
case of a family receiving assistance from the State,
the State shall—
‘‘(A) pay to the Federal Government the
Federal share of the amount collected, subject
to paragraph (3)(A);
‘‘(B) retain, or pay to the family, the State
share of the amount collected, subject to para-
graph (3)(B); and
‘‘(C) pay to the family any remaining
amount.
‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS-
SISTANCE.—In the case of a family that formerly re-
ceived assistance from the State:
‘‘(A) CURRENT SUPPORT.—To the extent
that the amount collected does not exceed the
725
HR 1990 IH
current support amount, the State shall pay the
amount to the family.
‘‘(B) ARREARAGES.—To the extent that
the amount collected exceeds the current sup-
port amount, the State—
‘‘(i) shall first pay to the family the
excess amount, to the extent necessary to
satisfy support arrearages not assigned
pursuant to section 408(a)(3);
‘‘(ii) if the amount collected exceeds
the amount required to be paid to the fam-
ily under clause (i), shall—
‘‘(I) pay to the Federal Govern-
ment, the Federal share of the excess
amount described in this clause, sub-
ject to paragraph (3)(A); and
‘‘(II) retain, or pay to the family,
the State share of the excess amount
described in this clause, subject to
paragraph (3)(B); and
‘‘(iii) shall pay to the family any re-
maining amount.
‘‘(3) LIMITATIONS.—
‘‘(A) FEDERAL
REIMBURSEMENTS.—The
total of the amounts paid by the State to the
726
HR 1990 IH
Federal Government under paragraphs (1) and
(2) of this subsection with respect to a family
shall not exceed the Federal share of the
amount assigned with respect to the family pur-
suant to section 408(a)(3).
‘‘(B) 
STATE
REIMBURSEMENTS.—The
total of the amounts retained by the State
under paragraphs (1) and (2) of this subsection
with respect to a family shall not exceed the
State share of the amount assigned with respect
to the family pursuant to section 408(a)(3).
‘‘(4) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the State
shall pay the amount collected to the family.
‘‘(5) 
FAMILIES
UNDER
CERTAIN
AGREE-
MENTS.—Notwithstanding paragraphs (1) through
(4), in the case of an amount collected for a family
in accordance with a cooperative agreement under
section 454(33), the State shall distribute the
amount collected pursuant to the terms of the agree-
ment.
‘‘(6) STATE FINANCING OPTIONS.—To the ex-
tent that the State share of the amount payable to
a family for a month pursuant to paragraph (2)(B)
of this subsection exceeds the amount that the State
727
HR 1990 IH
estimates (under procedures approved by the Sec-
retary) would have been payable to the family for
the month pursuant to former section 457(a)(2) (as
in effect for the State immediately before the date
this subsection first applies to the State) if such
former section had remained in effect, the State may
elect to use the grant made to the State under sec-
tion 403(a) to pay the amount, or to have the pay-
ment considered a qualified State expenditure for
purposes of section 409(a)(7), but not both.
‘‘(7) STATE OPTION TO PASS THROUGH ADDI-
TIONAL SUPPORT WITH FEDERAL FINANCIAL PAR-
TICIPATION.—
‘‘(A) 
IN
GENERAL.—Notwithstanding
paragraphs (1) and (2), a State shall not be re-
quired to pay to the Federal Government the
Federal share of an amount collected on behalf
of a family that is not a recipient of assistance
under the State program funded under part A,
to the extent that the State pays the amount to
the family.
‘‘(B) RECIPIENTS
OF
TANF
FOR
LESS
THAN 5 YEARS.—
‘‘(i) IN
GENERAL.—Notwithstanding
paragraphs (1) and (2), a State shall not
728
HR 1990 IH
be required to pay to the Federal Govern-
ment the Federal share of an amount col-
lected on behalf of a family that is a recipi-
ent of assistance under the State program
funded under part A and that has received
the assistance for not more than 5 years
after the date of enactment of this para-
graph, to the extent that—
‘‘(I) the State pays the amount
to the family; and
‘‘(II) subject to clause (ii), the
amount is disregarded in determining
the amount and type of the assistance
provided to the family.
‘‘(ii) LIMITATION.—Of the amount
disregarded as described in clause (i)(II),
the maximum amount that may be taken
into account for purposes of clause (i) shall
not exceed $400 per month, except that, in
the case of a family that includes 2 or
more children, the State may elect to in-
crease the maximum amount to not more
than $600 per month.’’.
(B) APPROVAL
OF
ESTIMATION
PROCE-
DURES.—Not later than October 1, 2001, the
729
HR 1990 IH
Secretary of Health and Human Services, in
consultation with the States (as defined for
purposes of part D of title IV of the Social Se-
curity Act), shall establish the procedures to be
used to make the estimate described in section
457(a)(6) of such Act.
(2) CURRENT
SUPPORT
AMOUNT
DEFINED.—
Section 457(c) of such Act (42 U.S.C. 657(c)) is
amended by adding at the end the following:
‘‘(5) CURRENT SUPPORT AMOUNT.—The term
‘current support amount’ means, with respect to
amounts collected as support on behalf of a family,
the amount designated as the monthly support obli-
gation of the noncustodial parent in the order re-
quiring the support.’’.
(c) BAN ON RECOVERY OF MEDICAID COSTS FOR
CERTAIN BIRTHS.—Section 454 of such Act (42 U.S.C.
654) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(32);
(2) by striking the period at the end of para-
graph (33) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (33) the fol-
lowing:
730
HR 1990 IH
‘‘(34) provide that the State shall not use the
State program operated under this part to collect
any amount owed to the State by reason of costs in-
curred under the State plan approved under title
XIX for the birth of a child for whom support rights
have been assigned pursuant to section 408(a)(3),
471(a)(17), or 1912.’’.
(d) STATE OPTION TO DISCONTINUE CERTAIN SUP-
PORT ASSIGNMENTS.—Section 457(b) of such Act (42
U.S.C. 657(b)) is amended by striking ‘‘shall’’ and insert-
ing ‘‘may’’.
(e) CONFORMING AMENDMENTS.—
(1) 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)’’ and inserting ‘‘457(a)(1)’’.
(2) Section 404(a) of such Act (42 U.S.C.
604(a)) is amended—
(A) by striking ‘‘or’’ at the end of para-
graph (1);
(B) by striking the period at the end of
paragraph (2) and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(3) to fund payment of an amount pursuant to
clause (i) or (ii) of section 457(a)(2)(B), but only to
the extent that the State properly elects under sec-
731
HR 1990 IH
tion 457(a)(6) to use the grant to fund the pay-
ment.’’.
(3) Section 409(a)(7)(B)(i) of such Act (42
U.S.C. 609(a)(7)(B)(i)) is amended by adding at the
end the following:
‘‘(V) 
PORTIONS
OF
CERTAIN
CHILD
SUPPORT
PAYMENTS
COL-
LECTED ON BEHALF OF AND DISTRIB-
UTED TO FAMILIES NO LONGER RE-
CEIVING
ASSISTANCE.—Any amount
paid by a State pursuant to clause (i)
or (ii) of section 457(a)(2)(B), but
only to the extent that the State prop-
erly elects under section 457(a)(6) to
have the payment considered a quali-
fied State expenditure.’’.
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on October 1, 2006,
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 such date, and with-
out regard to whether regulations to implement such
amendments (in the case of State programs operated
under such part D) are promulgated by such date.
732
HR 1990 IH
(2) STATE OPTION TO ACCELERATE EFFECTIVE
DATE.—In addition, a State may elect to have the
amendments made by this section apply to the State
and to amounts collected by the State, on and after
such date as the State may select that is after the
date of enactment of this Act and before October 1,
2006.
Subchapter B—Review and Adjustment of
Child Support Orders
SEC. 5116. MANDATORY REVIEW AND MODIFICATION OF
CHILD SUPPORT ORDERS FOR TANF RECIPI-
ENTS.
(a) 
REVIEW
EVERY
YEARS.—Section
466(a)(10)(A)(i) of the Social Security Act (42 U.S.C.
666(a)(10)(A)(i)) is amended in the matter preceding sub-
clause (I)—
(1) by striking ‘‘or,’’ and inserting ‘‘or’’; and
(2) by striking ‘‘upon the request of the State
agency under the State plan or of either parent,’’.
(b) REVIEW UPON LEAVING TANF.—
(1) NOTICE
OF
CERTAIN
FAMILIES
LEAVING
TANF.—Section 402(a) of such Act (42 U.S.C.
602(a)) is amended by adding at the end the fol-
lowing:
733
HR 1990 IH
‘‘(8) CERTIFICATION
THAT
THE
CHILD
SUP-
PORT ENFORCEMENT PROGRAM WILL BE PROVIDED
NOTICE OF CERTAIN FAMILIES LEAVING TANF PRO-
GRAM.—A certification by the chief executive officer
of the State that the State has established proce-
dures to ensure that the State agency administering
the child support enforcement program under the
State plan approved under part D will be provided
notice of the impending discontinuation of assistance
to an individual under the State program funded
under this part if the individual has custody of a
child whose other parent is alive and not living at
home with the child.’’.
(2) REVIEW.—Section 466(a)(10) of such Act
(42 U.S.C. 666(a)(10)) is amended—
(A) in the paragraph heading, by striking
‘‘UPON REQUEST’’;
(B) in subparagraph (C), by striking ‘‘this
paragraph’’ and inserting ‘‘subparagraph (A) or
(B)’’; and
(C) by adding at the end the following:
‘‘(D) REVIEW UPON LEAVING TANF.—On
receipt of a notice issued pursuant to section
402(a)(8), the State child support enforcement
agency shall—
734
HR 1990 IH
‘‘(i) examine the case file involved;
‘‘(ii) determine what actions (if any)
are needed to locate any noncustodial par-
ent, establish paternity or a support order,
or enforce a support order in the case;
‘‘(iii) immediately take the actions;
and
‘‘(iv) if there is a support order in the
case which the State has not reviewed dur-
ing the 1-year period ending with receipt
of the notice, notwithstanding subpara-
graph (B), review and, if appropriate, ad-
just the order in accordance with subpara-
graph (A).’’.
Subchapter C—Demonstrations of Expanded
Information and Enforcement
SEC. 5121. GUIDELINES FOR INVOLVEMENT OF PUBLIC
NON-IV–D CHILD SUPPORT ENFORCEMENT
AGENCIES IN CHILD SUPPORT ENFORCE-
MENT.
(a) IN GENERAL.—Not later than October 1, 2002,
the Secretary, in consultation with States, local govern-
ments, and individuals or companies knowledgeable about
involving public non-IV–D child support enforcement
agencies in child support enforcement, shall develop rec-
735
HR 1990 IH
ommendations which address the participation of public
non-IV–D child support enforcement agencies in the es-
tablishment and enforcement of child support obligations.
The matters addressed by the recommendations shall in-
clude substantive and procedural rules which should be
followed with respect to privacy safeguards, data security,
due process rights, administrative compatibility with Fed-
eral and State automated systems, eligibility requirements
(such as registration, licensing, and posting of bonds) for
access to information and use of enforcement mechanisms,
recovery of costs by charging fees, penalties for violations
of the rules, treatment of collections for purposes of sec-
tion 458 of such Act, and avoidance of duplication of ef-
fort.
(b) DEFINITIONS.—In this title:
(1) CHILD
SUPPORT.—The term ‘‘child sup-
port’’ has the meaning given in section 459(i)(2) of
the Social Security Act.
(2) PUBLIC
NON-IV–D
CHILD
SUPPORT
EN-
FORCEMENT AGENCY.—The term ‘‘public non-IV–D
child support enforcement agency’’ means an agency,
of a political subdivision of a State, which is prin-
cipally responsible for the operation of a child sup-
port registry or for the establishment or enforcement
of an obligation to pay child support other than pur-
736
HR 1990 IH
suant to the State plan approved under part D of
title IV of such Act, or a clerk of court office of a
political subdivision of a State.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(4) STATE.—The term ‘‘State’’ shall have the
meaning given in section 1101(a)(1) of the Social
Security Act for purposes of part D of title IV of
such Act.
SEC. 5122. DEMONSTRATIONS INVOLVING ESTABLISHMENT
AND ENFORCEMENT OF CHILD SUPPORT OB-
LIGATIONS BY PUBLIC NON-IV–D CHILD SUP-
PORT ENFORCEMENT AGENCIES.
(a) PURPOSE.—The purpose of this section is to de-
termine the extent to which public non-IV–D child support
enforcement agencies may contribute effectively to the es-
tablishment and enforcement of child support obligations.
(b) APPLICATIONS.—
(1) CONSIDERATION.—The Secretary shall con-
sider all applications received from States desiring to
conduct demonstration projects under this section.
(2) PREFERENCES.—In considering which ap-
plications to approve under this section, the Sec-
retary shall give preference to applications submitted
737
HR 1990 IH
by States that had a public non-IV–D child support
enforcement agency as of January 1, 2001.
(3) APPROVAL.—
(A) TIMING; LIMITATION ON NUMBER OF
PROJECTS.—On July 1, 2003, the Secretary
may approve not more than 10 applications for
projects providing for the participation of a
public non-IV–D child support enforcement
agency in the establishment and enforcement of
child support obligations, and, if the Secretary
receives at least 5 such applications that meet
such requirements as the Secretary may estab-
lish, shall approve not less than 5 such applica-
tions.
(B) REQUIREMENTS.—The Secretary may
not approve an application for a project
unless—
(i) the applicant and the Secretary
have entered into a written agreement
which addresses at a minimum, privacy
safeguards, data security, due process
rights, automated systems, liability, over-
sight, and fees, and the applicant has
made a commitment to conduct the project
in accordance with the written agreement
738
HR 1990 IH
and such other requirements as the Sec-
retary may establish;
(ii) the project includes a research
plan (but such plan shall not be required
to use random assignment) that is focused
on assessing the costs and benefits of the
project; and
(iii) the project appears likely to con-
tribute significantly to the achievement of
the purpose of this title.
(c) DEMONSTRATION AUTHORITY.—On approval of
an application submitted by a State under this section—
(1) the State agency responsible for admin-
istering the State plan under part D of title IV of
the Social Security Act may, subject to the privacy
safeguards of section 454(26) of such Act, provide
to any public non-IV–D child support enforcement
agency participating in the demonstration project all
information in the State Directory of New Hires and
any information obtained through information com-
parisons under section 453(j)(3) of such Act about
an individual with respect to whom the public non-
IV–D agency is seeking to establish or enforce a
child support obligation, if the public non-IV–D
agency meets such requirements as the State may
739
HR 1990 IH
establish and has entered into an agreement with
the State under which the public non-IV–D agency
has made a binding commitment to carry out estab-
lishment and enforcement activities with respect to
the child support obligation subject to the same data
security, privacy protection, and due process require-
ments applicable to the State agency and in accord-
ance with procedures approved by the head of the
State agency;
(2) the State agency may charge and collect
fees from any such public non-IV–D agency to re-
cover costs incurred by the State agency in providing
information and services to the public non-IV–D
agency under the demonstration project;
(3) if a public non-IV–D child support enforce-
ment agency has agreed to collect past-due support
(as defined in section 464(c) of such Act) owed by
a named individual, and the State agency has sub-
mitted a notice to the Secretary of the Treasury
pursuant to section 464 of such Act on behalf of the
public non-IV–D agency, then the Secretary of the
Treasury shall consider the State agency to have
agreed to collect such support for purposes of such
section 464, and the State agency may collect from
the public non-IV–D agency any fee which the State
740
HR 1990 IH
is required to pay for the cost of applying the offset
procedure in the case;
(4) for so long as a public non-IV–D child sup-
port enforcement agency is participating in the dem-
onstration project, the public non-IV–D agency shall
be considered part of the State agency for purposes
of section 469A of such Act; and
(5) for so long as a public non-IV–D child sup-
port enforcement agency is participating in the dem-
onstration project, the public non-IV–D agency shall
be considered part of the State agency for purposes
of section 303(e) of such Act but only with respect
to any child support obligation that the public non-
IV–D agency has agreed to collect.
(d) WAIVER AUTHORITY.—The Secretary may waive
or vary the applicability of any provision of sections
303(e), 454(31), 464, 466(a)(7), 466(a)(17), and 469A
of the Social Security Act to the extent necessary to enable
the conduct of demonstration projects under this section,
subject to the preservation of the data security, privacy
protection, and due process requirements of part D of title
IV of such Act.
(e) FEDERAL AUDIT.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct an audit of the dem-
741
HR 1990 IH
onstration projects conducted under this section for
the purpose of examining and evaluating the manner
in which information and enforcement tools are used
by the public non-IV–D child support enforcement
agencies participating in the projects.
(2) REPORT TO CONGRESS.—
(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall submit to Con-
gress a report on the audit required by para-
graph (1).
(B) TIMING.—The report required by sub-
paragraph (A) shall be so submitted not later
than October 1, 2005.
(f) SECRETARIAL REPORT TO CONGRESS.—
(1) IN GENERAL.—The Secretary shall submit
to Congress a report on the demonstration projects
conducted under this section, which shall include the
results of any research or evaluation conducted pur-
suant to this title, and shall include policy rec-
ommendations regarding the establishment and en-
forcement of child support obligations by the agen-
cies involved.
(2) TIMING.—The report required by paragraph
(1) shall be so submitted not later than October 1,
2006.
742
HR 1990 IH
SEC. 5123. GAO REPORT TO CONGRESS ON PRIVATE CHILD
SUPPORT ENFORCEMENT AGENCIES.
(a) IN GENERAL.—Not later than October 1, 2002,
the Comptroller General of the United States shall submit
to Congress a report on the activities of private child sup-
port enforcement agencies that shall be designed to help
Congress determine whether the agencies are providing a
needed service in a fair manner using accepted debt collec-
tion practices and at a reasonable fee.
(b) MATTERS TO BE ADDRESSED.—Among the mat-
ters addressed by the report required by subsection (a)
shall be the following:
(1) The number of private child support en-
forcement agencies.
(2) The types of debt collection activities con-
ducted by the private agencies.
(3) The fees charged by the private agencies.
(4) The methods used by the private agencies
to collect fees from custodial parents.
(5) The nature and degree of cooperation the
private agencies receive from State agencies respon-
sible for administering State plans under part D of
title IV of the Social Security Act.
(6) The extent to which the conduct of the pri-
vate agencies is subject to Federal or State regula-
743
HR 1990 IH
tion, and if so, the extent to which the regulations
are effectively enforced.
(7) The amount of child support owed but un-
collected and changes in this amount in recent years.
(8) The average period of time required for the
completion of successful enforcement actions yielding
collections of past-due child support by both the
child support enforcement programs operated pursu-
ant to State plans approved under part D of title IV
of the Social Security Act and, to the extent known,
by private child support enforcement agencies.
(9) The types of Federal and State child sup-
port enforcement remedies and resources currently
available to private child support enforcement agen-
cies, and the types of such remedies and resources
now restricted to use by State agencies admin-
istering State plans referred to in paragraph (8).
(c) PRIVATE CHILD SUPPORT ENFORCEMENT AGEN-
CY DEFINED.—In this section, the term ‘‘private child
support enforcement agency’’ means a person or any other
nonpublic entity which seeks to establish or enforce an ob-
ligation to pay child support (as defined in section
459(i)(2) of the Social Security Act).
744
HR 1990 IH
SEC. 5124. EFFECTIVE DATE.
This title shall take effect on the date of enactment
of this Act.
Subchapter D—Expanded Enforcement
SEC. 5126. DECREASE IN AMOUNT OF CHILD SUPPORT AR-
REARAGE TRIGGERING PASSPORT DENIAL.
Section 452(k) of the Social Security Act (42 U.S.C.
652(k)) is amended by striking ‘‘$5,000’’ and inserting
‘‘$2,500’’.
SEC. 5127. USE OF TAX REFUND INTERCEPT PROGRAM TO
COLLECT PAST-DUE CHILD SUPPORT ON BE-
HALF OF CHILDREN WHO ARE NOT MINORS.
Section 464 of the Social Security Act (42 U.S.C.
664) is amended—
(1) in subsection (a)(2)(A), by striking ‘‘(as
that term is defined for purposes of this paragraph
under subsection (c))’’; and
(2) in subsection (c)—
(A) in paragraph (1)—
(i) by striking ‘‘(1) Except as pro-
vided in paragraph (2), as used in’’ and in-
serting ‘‘In’’; and
(ii) by inserting ‘‘(whether or not a
minor)’’ after ‘‘a child’’ each place it ap-
pears; and
(B) by striking paragraphs (2) and (3).
745
HR 1990 IH
SEC. 5128. GARNISHMENT OF COMPENSATION PAID TO VET-
ERANS FOR SERVICE-CONNECTED DISABIL-
ITIES IN ORDER TO ENFORCE CHILD SUP-
PORT OBLIGATIONS.
Section 459(h) of the Social Security Act (42 U.S.C.
659(h)) is amended—
(1) in paragraph (1)(A)(ii)(V), by striking all
that follows ‘‘Armed Forces’’ and inserting a semi-
colon; and
(2) by adding at the end the following:
‘‘(3) LIMITATIONS
WITH
RESPECT
TO
COM-
PENSATION PAID TO VETERANS FOR SERVICE-CON-
NECTED DISABILITIES.—Notwithstanding any other
provision of this section:
‘‘(A) Compensation described in paragraph
(1)(A)(ii)(V) shall not be subject to withholding
pursuant to this section—
‘‘(i) for payment of alimony; or
‘‘(ii) for payment of child support if
the individual is fewer than 60 days in ar-
rears in payment of the support.
‘‘(B) Not more than 50 percent of any
payment of compensation described in para-
graph (1)(A)(ii)(V) may be withheld pursuant
to this section.’’.
746
HR 1990 IH
Subchapter E—Miscellaneous
SEC. 5131. REPORT ON UNDISTRIBUTED CHILD SUPPORT
PAYMENTS.
Not later than 6 months after the date of enactment
of this Act, the Secretary of Health and Human Services
shall submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate a report on the procedures that the States
use generally to locate custodial parents for whom child
support has been collected but not yet distributed due to
a change in address. The report shall include an estimate
of the total amount of such undistributed child support
and the average length of time it takes for such child sup-
port to be distributed. The Secretary shall include in the
report recommendations as to whether additional proce-
dures should be established at the Federal or State level
to expedite the payment of undistributed child support.
SEC. 5132. USE OF NEW HIRE INFORMATION TO ASSIST IN
ADMINISTRATION OF UNEMPLOYMENT COM-
PENSATION PROGRAMS.
(a) IN GENERAL.—Section 453(j) of the Social Secu-
rity Act (42 U.S.C. 653(j)) is amended by adding at the
end the following:
747
HR 1990 IH
‘‘(7) INFORMATION COMPARISONS AND DISCLO-
SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY-
MENT COMPENSATION PROGRAMS.—
‘‘(A) IN GENERAL.—If a State agency re-
sponsible for the administration of an unem-
ployment compensation program under Federal
or State law transmits to the Secretary the
name and social security account number of an
individual, the Secretary shall, if the informa-
tion in the National Directory of New Hires in-
dicates that the individual may be employed,
disclose to the State agency the name, address,
and employer identification number of any pu-
tative employer of the individual, subject to this
paragraph.
‘‘(B) CONDITION
ON
DISCLOSURE.—The
Secretary shall make a disclosure under sub-
paragraph (A) only to the extent that the Sec-
retary determines that the disclosure would not
interfere with the effective operation of the pro-
gram under this part.
‘‘(C) USE
OF
INFORMATION.—A State
agency may use information provided under this
paragraph only for purposes of administering a
program referred to in subparagraph (A).’’.
748
HR 1990 IH
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2001.
SEC. 5133. IMMIGRATION PROVISIONS.
(a) NONIMMIGRANT ALIENS INELIGIBLE TO RE-
CEIVE VISAS
AND EXCLUDED FROM ADMISSION
FOR
NONPAYMENT OF CHILD SUPPORT.—
(1) IN GENERAL.—Section 212(a)(10) of the
Immigration 
and 
Nationality 
Act 
(8 
U.S.C.
1182(a)(10)) is amended by adding at the end the
following:
‘‘(F) NONPAYMENT OF CHILD SUPPORT.—
‘‘(i) 
IN
GENERAL.—Any 
non-
immigrant alien is inadmissible who is le-
gally obligated under a judgment, decree,
or order to pay child support (as defined in
section 459(i) of the Social Security Act),
and whose failure to pay such child sup-
port has resulted in an arrearage exceeding
$2,500, until child support payments
under the judgment, decree, or order are
satisfied or the nonimmigrant alien is in
compliance with an approved payment
agreement.
‘‘(ii) WAIVER AUTHORIZED.—The At-
torney General may waive the application
749
HR 1990 IH
of clause (i) in the case of an alien, if the
Attorney General—
‘‘(I) has received a request for
the waiver from the court or adminis-
trative agency having jurisdiction over
the judgment, decree, or order obli-
gating the alien to pay child support
that is referred to in such clause; or
‘‘(II) determines that there are
prevailing humanitarian or public in-
terest concerns.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall take effect 180 days after
the date of enactment of this Act.
(b) AUTHORIZATION TO SERVE LEGAL PROCESS IN
CHILD
SUPPORT
CASES
ON
CERTAIN
ARRIVING
ALIENS.—
(1) IN GENERAL.—Section 235(d) of the Immi-
gration and Nationality Act (8 U.S.C. 1225(d)) is
amended by adding at the end the following:
‘‘(5) AUTHORITY TO SERVE PROCESS IN CHILD
SUPPORT CASES.—
‘‘(A) IN
GENERAL.—To the extent con-
sistent with State law, immigration officers are
authorized to serve on any alien who is an ap-
750
HR 1990 IH
plicant for admission to the United States legal
process with respect to any action to enforce or
establish a legal obligation of an individual to
pay child support (as defined in section 459(i)
of the Social Security Act).
‘‘(B) DEFINITION.—For purposes of sub-
paragraph (A), the term ‘legal process’ means
any writ, order, summons, or other similar
process, which is issued by—
‘‘(i) a court or an administrative
agency of competent jurisdiction in any
State, territory, or possession of the
United States; or
‘‘(ii) an authorized official pursuant to
an order of such a court or agency or pur-
suant to State or local law.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply to aliens applying for
admission to the United States on or after 180 days
after the date of enactment of this Act.
(c) AUTHORIZATION TO SHARE CHILD SUPPORT EN-
FORCEMENT INFORMATION TO ENFORCE IMMIGRATION
AND NATURALIZATION LAW.—
751
HR 1990 IH
(1) SECRETARIAL
RESPONSIBILITY.—Section
452 of the Social Security Act (42 U.S.C. 652) is
amended by adding at the end the following:
‘‘(m) If the Secretary receives a certification by a
State agency, in accordance with section 454(35), that an
individual who is a nonimmigrant alien (as defined in sec-
tion 101(a)(15) of the Immigration and Nationality Act)
owes arrearages of child support in an amount exceeding
$2,500, the Secretary may, at the request of the State
agency, the Secretary of State, or the Attorney General,
or on the Secretary’s own initiative, provide such certifi-
cation to the Secretary of State and the Attorney General
information in order to enable them to carry out their re-
sponsibilities under sections 212(a)(10) and 235(d) of
such Act.’’.
(2) STATE AGENCY RESPONSIBILITY.—Section
454 of the Social Security Act (42 U.S.C. 654), as
amended by section 5111(c) of this Act, is
amended—
(A) by striking ‘‘and’’ at the end of para-
graph (33);
(B) by striking the period at the end of
paragraph (34) and inserting ‘‘; and’’; and
(C) by inserting after paragraph (34) the
following:
752
HR 1990 IH
‘‘(35) provide that the State agency will have in
effect a procedure for certifying to the Secretary, in
such format and accompanied by such supporting
documentation as the Secretary may require, deter-
minations that nonimmigrant aliens owe arrearages
of child support in an amount exceeding $2,500.’’.
SEC. 5134. CORRECTION OF ERRORS IN CONFORMING
AMENDMENTS IN THE WELFARE-TO-WORK
AND CHILD SUPPORT AMENDMENTS OF 1999.
The amendments made by section 2402 of Public
Law 106–246 shall take effect as if included in the enact-
ment of section 806 of H.R. 3424 of the 106th Congress
by section 1000(a)(4) of Public Law 106–113.
SEC. 5135. INCREASE IN PAYMENT RATE TO STATES FOR
EXPENDITURES FOR SHORT-TERM TRAINING
OF STAFF OF CERTAIN CHILD WELFARE
AGENCIES.
Section 474(a)(3)(B) of the Social Security Act (42
U.S.C. 674(a)(3)(B)) is amended by inserting ‘‘, or State-
licensed or State-approved child welfare agencies providing
services,’’ after ‘‘child care institutions’’.
SEC. 5136. EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise provided in
this subtitle and in subsection (b) of this section, this sub-
title and the amendments made by this subtitle shall take
753
HR 1990 IH
effect on October 1, 2002, and shall apply to payments
under part D of title IV of the Social Security Act for
calendar quarters beginning on or after such date, and
without regard to whether regulations to implement such
amendments are promulgated by such date.
(b) DELAY PERMITTED IF STATE LEGISLATION RE-
QUIRED.—In the case of a State plan approved under sec-
tion 454 of the Social Security Act which requires State
legislation (other than legislation appropriating funds) in
order for the plan to meet the additional requirements im-
posed by the amendments made by this Act, the State plan
shall not be regarded as failing to comply with the addi-
tional requirements solely on the basis of the failure of
the plan to meet the 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 such ses-
sion shall be deemed to be a separate regular session of
the State legislature.
754
HR 1990 IH
CHAPTER 2—CHILD SUPPORT
DEMONSTRATION PROGRAMS
SEC. 5141. SHORT TITLE.
This chapter may be cited as the ‘‘Child Support As-
surance Act of 2001’’.
SEC. 5142. PURPOSES.
The purposes of this chapter are to enable partici-
pating States to establish, expand, or improve child sup-
port assurance systems in order to improve the economic
circumstances of children who do not receive a minimum
level of child support in a given month from the noncusto-
dial parents of such children, to strengthen the establish-
ment and enforcement of child support awards, and to
promote work by custodial and noncustodial parents.
SEC. 5143. DEFINITIONS.
In this chapter:
(1) CHILD.—The term ‘‘child’’ means an indi-
vidual who is of such an age, disability, or edu-
cational status as to be eligible for child support as
provided for by law.
(2) ELIGIBLE
CHILD.—The term ‘‘eligible
child’’ means a child who—
(A) is not currently receiving cash assist-
ance under the State program funded under
755
HR 1990 IH
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.);
(B) meets the eligibility requirements es-
tablished by the State for participation in a
project administered under this section; and
(C) is the subject of a support order, as
defined in section 453(p) of the Social Security
Act (42 U.S.C. 653(p)), or for which good
cause exists, as determined by the appropriate
State agency under section 454(29)(A) of such
Act (42 U.S.C. 654(29)(A)), for not having or
pursuing a support order.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
SEC. 5144. ESTABLISHMENT OF CHILD SUPPORT ASSUR-
ANCE DEMONSTRATION PROJECTS.
(a) DEMONSTRATIONS AUTHORIZED.—The Secretary
shall make grants to not less than 3 and not more than
5 States to conduct demonstration projects for the pur-
pose of establishing, expanding, or improving a system of
an assured minimum child support payment to an eligible
child in accordance with this section.
(b) APPLICATION AND SELECTION.—
(1) APPLICATION REQUIREMENTS.—An applica-
tion for a grant under this section shall be sub-
756
HR 1990 IH
mitted by the chief executive officer of a State and
shall—
(A) contain a description of the proposed
child support assurance project to be estab-
lished, expanded, or improved using amounts
provided under this section, including the level
of the assured minimum child support payment
to be provided and the agencies that will be in-
volved;
(B) specify whether the project will be car-
ried out throughout the State or in limited
areas of the State;
(C) specify the level of income, if any, at
which a recipient or applicant will be ineligible
for an assured minimum child support payment
under the project;
(D) estimate the number of children who
will be eligible for assured minimum child sup-
port payments under the project;
(E) contain a description of the work re-
quirements, if any, for custodial parents whose
children are participating in the project;
(F) contain a commitment by the State to
carry out the project during a period of not less
757
HR 1990 IH
than 3 and not more than 5 consecutive fiscal
years beginning with fiscal year 2002; and
(G) contain such other information as the
Secretary may require by regulation.
(2) SELECTION CRITERIA.—The Secretary shall
consider—
(A) geographic diversity in the selection of
States to conduct demonstration projects under
this section; and
(B) any other criteria that the Secretary
determines will contribute to the achievement of
the purposes of this title.
(c) USE OF FUNDS.—
(1) GRANT FUNDS.—A State shall use amounts
provided under a grant awarded under this section
to carry out a child support assurance project that
is designed to provide a minimum monthly child sup-
port payment for each eligible child participating in
the project to the extent that such minimum child
support is not paid in a month by the noncustodial
parent.
(2) TANF FUNDS.—
(A) IN GENERAL.—A State selected to con-
duct a demonstration project under this title
may use, in addition to the amounts provided
758
HR 1990 IH
under a grant awarded under this section,
funds provided under a State family assistance
grant under section 403(a)(1) of the Social Se-
curity Act (42 U.S.C. 603(a)(1)) for the pur-
pose described in paragraph (1).
(B) AUTHORITY
TO
INCLUDE
AMOUNTS
USED FOR PURPOSES OF TANF MAINTENANCE
OF
EFFORT
REQUIREMENTS.—Section
409(a)(7)(B)(i)(I) of the Social Security Act
(42 U.S.C. 609(a)(7)(B)(i)(I)) is amended by
adding at the end the following:
‘‘(ff) Notwithstanding clause
(iv), funds provided under a
State family assistance grant,
under section 403(a)(1) that are
used to establish, expand, or im-
prove a system of assured min-
imum child support payments to
eligible children (regardless of
whether such children reside with
an eligible family, as defined in
subclause (IV)) in accordance
with the Leave No Child Behind
Act of 2001.’’.
759
HR 1990 IH
(d) TREATMENT OF CHILD SUPPORT PAYMENT.—
Any assured minimum child support payment received by
an individual under this title shall be considered child sup-
port for purposes of determining the treatment of such
payment under—
(1) the Internal Revenue Code of 1986; and
(2) any eligibility requirements for any means-
tested program of assistance.
(e) DURATION.—A demonstration project conducted
under this section shall commence on October 1, 2003,
and shall be conducted for not less than 3 and not more
than 5 consecutive fiscal years, except that the Secretary
may terminate a project before the end of such period if
the Secretary determines that the State conducting the
project is not in compliance with the terms of the applica-
tion approved by the Secretary under this section.
(f) EVALUATIONS AND REPORTS.—
(1) STATE EVALUATIONS.—
(A) IN
GENERAL.—Each State admin-
istering a demonstration project under this sec-
tion shall—
(i) provide for evaluation of the
project, meeting such conditions and
standards as the Secretary may require;
and
760
HR 1990 IH
(ii) submit to the Secretary reports, at
the times and in the formats as the Sec-
retary may require, and containing any in-
formation (in addition to the information
required under subparagraph (B)) as the
Secretary may require.
(B) REQUIRED
INFORMATION.—A report
submitted under subparagraph (A)(ii) shall in-
clude information on and analysis of the effect
of the project with respect to—
(i) the amount of child support col-
lected for project recipients;
(ii) the economic circumstances and
work efforts of custodial parents;
(iii) the work efforts of noncustodial
parents;
(iv) the rate of compliance by non-
custodial parents with support orders;
(v) project recipients’ need for assist-
ance under means-tested assistance pro-
grams other than the project administered
under this section; and
(vi) any other matters that the Sec-
retary may specify.
761
HR 1990 IH
(C) 
METHODOLOGY.—Information 
re-
quired under this paragraph shall be collected
through the use of scientifically acceptable sam-
pling methods.
(2) REPORTS
TO
CONGRESS.—The Secretary
shall, on the basis of reports received from States
administering projects under this section, submit in-
terim reports and, not later than 6 months after the
conclusion of all projects administered under this
section, a final report to Congress. A report sub-
mitted under this paragraph shall contain an assess-
ment of the effectiveness of the State projects ad-
ministered under this section and any recommenda-
tions for legislative action that the Secretary con-
siders appropriate.
(g) FUNDING.—There shall be available to the Sec-
retary, from amounts made available to carry out part D
of title IV of the Social Security Act, for purposes of car-
rying out demonstration projects under this section,
amounts not to exceed—
(1) $27,000,000 for fiscal year 2004;
(2) $55,000,000 for fiscal year 2005; and
(3) $70,000,000 for each of fiscal years 2006
through 2008.
762
HR 1990 IH
Subtitle C—Fair Wages and
Unemployment Insurance
CHAPTER 1—FAIR MINIMUM WAGE
SEC. 5201. SHORT TITLE.
This chapter may be cited as the ‘‘Fair Minimum
Wage Act of 2001’’.
SEC. 5202. MINIMUM WAGE.
(a) IN GENERAL.—Section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended
to read as follows:
‘‘(1) except as otherwise provided in this sec-
tion, not less than—
‘‘(A) $5.75 an hour beginning 30 days
after the date of enactment of the Fair Min-
imum Wage Act of 2001;
‘‘(B) $6.25 an hour during the year begin-
ning January 1, 2002; and
‘‘(C) $6.65 an hour beginning January 1,
2003;’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect 30 days after the date of
enactment of this Act.
763
HR 1990 IH
SEC. 5203. APPLICABILITY OF MINIMUM WAGE TO THE
COMMONWEALTH OF THE NORTHERN MAR-
IANA ISLANDS.
(a) IN GENERAL.—Section 6 of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206) shall apply to the
Commonwealth of the Northern Mariana Islands.
(b) TRANSITION.—Notwithstanding subsection (a),
the minimum wage applicable to the Commonwealth of the
Northern Mariana Islands under section 6(a)(1) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1))
shall be—
(1) $3.55 an hour beginning 30 days after the
date of enactment of this Act; and
(2) increased by $0.50 an hour (or such lesser
amount as may be necessary to equal the minimum
wage under section 6(a)(1) of such Act), beginning
6 months after the date of enactment of this Act
and every 6 months thereafter until the minimum
wage applicable to the Commonwealth of the North-
ern Mariana Islands under this subsection is equal
to the minimum wage set forth in such section.
764
HR 1990 IH
CHAPTER 2—LIVABLE WAGES FOR EM-
PLOYEES 
UNDER 
FEDERAL 
CON-
TRACTS
SEC. 5211. SHORT TITLE.
This chapter may be cited as the ‘‘Federal Living
Wage Responsibility Act’’.
SEC. 5212. FINDINGS.
The Congress finds the following:
(1) American workers are working harder to
make ends meet.
(2) The wages of many working Americans
have not kept pace with the cost of providing for
their families.
(3) The Federal Government provides billions of
dollars in subsidies to businesses each year through
both spending programs and the Internal Revenue
Code of 1986.
(4) Recipients of Federal contracts have bene-
fited greatly from the provision of taxpayers’ dollars.
(5) The Congressional Budget Office concluded
that the Federal Government spends more than $30
billion a year on spending and credit programs.
(6) Congress must ensure that Federal dollars
are used responsibly to improve the economic secu-
rity and well-being of Americans across the country.
765
HR 1990 IH
SEC. 5213. POVERTY LEVEL WAGE.
(a) REQUIREMENT.—
(1) GENERAL
RULE.—Except as provided in
paragraph (2), any employer under a Federal con-
tract for an amount exceeding $10,000 or a sub-
contract under a Federal contract for such an
amount shall, except as provided in subsection (b),
pay each of the employer’s employees working on or
hired 
in 
conjunction 
with 
such 
contract 
or
subcontract—
(A) an hourly wage necessary for such em-
ployee to earn, while working 40 hours a week
on a full-time basis, the amount of the Federal
poverty level for a family of 4 (as published in
the Federal Register by the Department of
Health and Human Services under the author-
ity of section 673(2) of the Omnibus Budget
Reconciliation Act of 1981), or
(B) $8.20 an hour,
whichever is greater.
(2) EXCEPTION.—An employer which is—
(A) a small business concern as defined
under section 3 of the Small Business Act (15
U.S.C. 632), or
(B) a nonprofit organization exempt from
Federal income tax under section 501(c) of the
766
HR 1990 IH
Internal Revenue Code of 1986 if the ratio of
the total compensation of its chief executive of-
ficer to the compensation of the full-time equiv-
alent of its lowest paid employee is not greater
than 25 to 1,
shall not be required to pay the wage prescribed by
paragraph (1).
(3) SCOPE.—An employer may not avoid the re-
quirement of paragraph (1) by laying off or other-
wise terminating the employment of an employee
with the intention of replacing such employee with
an employee who, under subsection (b), is not eligi-
ble for the subsection (a) wage.
(b) EXCEPTION.—An employee who is participating
in—
(1) an apprenticeship program, or
(2) any other training program which does not
exceed 6 months in duration and which is offered to
an employee while employed in productive work that
provides training, technical and other related skills,
and personal skills that are essential to the full and
adequate performance of the employee’s employ-
ment,
is not eligible for the wage prescribed by subsection (a).
767
HR 1990 IH
(c) CONTRACT REQUIREMENT.—Any contract be-
tween the Federal Government and any contractor and
any contract between such contractor with a subcontractor
to carry out work for the Federal Government shall re-
quire the contractor or subcontractor to pay the wage pre-
scribed by subsection (a)(1).
(d) ENFORCEMENT.—
(1) SUSPENSION.—If an employer does not pay
the wage required by subsection (a) the Federal con-
tract or subcontract under which such employer was
employing employees shall be suspended.
(2) INELIGIBILITY.—An employer described in
paragraph (1) shall not be eligible for any Federal
contract or subcontract for a period of 5 years be-
ginning on the date the employer does not pay the
required wage.
(3) RESTITUTION.—An employer who does not
pay the wage required by subsection (a) shall be lia-
ble to the United States in an amount equal to the
unpaid wages and in addition an equal amount as
liquidated damages. The Secretary of Labor shall
pay to the employees who were not paid such wage
the amount recovered by the United States under
this paragraph.
768
HR 1990 IH
SEC. 5214. EFFECTIVE DATE.
This chapter shall take effect with respect to Federal
contracts entered into, renewed, or extended after 90 days
after the date of enactment of this Act.
CHAPTER 3—UNEMPLOYMENT
INSURANCE
SEC. 5221. PARITY FOR PART-TIME WORKERS, FAIR COUNT-
ING OF WAGES, AND USE OF IMPROVED
TECHNOLOGY 
FOR 
MAKING 
WAGE 
DATA
AVAILABLE.
(a) IN GENERAL.—Subsection (a) of section 3304 of
the Internal Revenue Code of 1986 (relating to approval
of State unemployment compensation laws) is amended—
(1) in paragraph (18), by striking ‘‘and’’ at the
end;
(2) by redesignating paragraph (19) as para-
graph (21); and
(3) by inserting after paragraph (18) the fol-
lowing new paragraphs:
‘‘(19) compensation shall not be denied to an
individual solely because such individual is seeking
only part-time work, if—
‘‘(A) such individual otherwise qualifies for
unemployment compensation; and
‘‘(B) the part-time work sought by such in-
dividual generally requires seeking suitable and
769
HR 1990 IH
comparable part-time work under provisions of
State law reasonably implementing this provi-
sion;
‘‘(20) with respect to each individual who was
initially determined ineligible for compensation
under provisions of State law relating to base period
wages and employment, eligibility for compensation
is determined by using wage and employment infor-
mation received by the State agency from any em-
ployer for the most recently completed calendar
quarter, except that nothing in this paragraph shall
be construed as prohibiting a State from using any
additional wage and employment information consid-
ered by such State for monetary eligibility; and’’.
(b) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in sub-
section (b), the amendments made by this title shall
apply to compensation paid for weeks of unemploy-
ment beginning after June 30, 2002.
(2) AMENDMENT RELATING TO USE OF RECENT
WAGES.—Section 3304(a)(20) of the Internal Rev-
enue Code of 1986, as added by subsection (a)(3),
shall apply to compensation paid for weeks of unem-
ployment beginning after December 31, 2002.
770
HR 1990 IH
SEC. 5222. ENSURING UNEMPLOYMENT COMPENSATION
FOR INDIVIDUALS THAT ARE SEPARATED
FROM EMPLOYMENT DUE TO DOMESTIC VIO-
LENCE.
(a) UNEMPLOYMENT COMPENSATION.—Section 3304
of the Internal Revenue Code of 1986 (relating to approval
of State unemployment compensation laws), as amended
by section 5221, is amended—
(1) in subsection (a)—
(A) in paragraph (20), by striking ‘‘and’’
at the end;
(B) by redesignating paragraph (21) as
paragraph (22); and
(C) by inserting after paragraph (20) the
following new paragraph:
‘‘(21) compensation is to be paid where an indi-
vidual is separated from employment due to cir-
cumstances directly resulting from domestic violence;
and’’; and
(2) by adding at the end the following new sub-
section:
‘‘(g) CONSTRUCTION.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a)(21), an employee’s separation from employment
shall be treated as due to circumstances directly re-
771
HR 1990 IH
sulting from domestic violence if the separation re-
sulted from—
‘‘(A) the employee’s reasonable fear of fu-
ture domestic violence at or en route to or from
the employee’s place of employment;
‘‘(B) the employee’s wish to relocate to an-
other geographic area in order to avoid future
domestic violence against the employee or the
employee’s family;
‘‘(C) the employee’s need to recover from
traumatic stress resulting from the employee’s
experience of domestic violence;
‘‘(D) the employer’s denial of the employ-
ee’s request for the temporary leave from em-
ployment to address domestic violence and its
effects; or
‘‘(E) any other circumstance in which do-
mestic violence causes the employee to reason-
ably believe that termination of employment is
necessary for the future safety of the employee
or the employee’s family.
‘‘(2) REASONABLE
EFFORTS
TO
RETAIN
EM-
PLOYMENT.—For purposes of subsection (a)(21), if
State law requires the employee to have made rea-
sonable efforts to retain employment as a condition
772
HR 1990 IH
for receiving unemployment compensation, such re-
quirement shall be met if the employee—
‘‘(A) sought protection from, or assistance
in responding to, domestic violence, including
calling the police or seeking legal, social work,
medical, clergy, or other assistance;
‘‘(B) sought safety, including refuge in a
shelter or temporary or permanent relocation,
whether or not the employee actually obtained
such refuge or accomplished such relocation; or
‘‘(C) reasonably believed that options such
as taking a leave of absence, transferring jobs,
or receiving an alternative work schedule would
not be sufficient to guarantee the employee or
the employee’s family’s safety.
‘‘(3) ACTIVE SEARCH FOR EMPLOYMENT.—For
purposes of subsection (a)(21), if State law requires
the employee to actively search for employment after
separation from employment as a condition for re-
ceiving unemployment compensation, such require-
ment shall be treated as met where the employee is
temporarily unable to actively search for employment
because the employee is engaged in seeking safety or
relief for the employee or the employee’s family from
domestic violence, including—
773
HR 1990 IH
‘‘(A) going into hiding or relocating or at-
tempting to do so, including activities associ-
ated with such hiding or relocation, such as
seeking to obtain sufficient shelter, food, school-
ing for children, or other necessities of life for
the employee or the employee’s family;
‘‘(B) actively pursuing legal protection or
remedies, including meeting with the police,
going to court to make inquiries or file papers,
meeting with attorneys, or attending court pro-
ceedings; or
‘‘(C) participating in psychological, social,
or religious counseling or support activities to
assist the employee in ending domestic violence.
‘‘(4) PROVISION
OF
INFORMATION
TO
MEET
CERTAIN REQUIREMENTS.—In determining if an em-
ployee meets the requirements of paragraphs (1),
(2), and (3), the unemployment agency of the State
in which an employee is requesting unemployment
compensation by reason of subsection (a)(21) may
require the employee to provide—
‘‘(A) documentation of the domestic vio-
lence, such as—
‘‘(i) police or court records; or
774
HR 1990 IH
‘‘(ii) documentation from a shelter
worker or an employee of a domestic vio-
lence program, an attorney, a clergy mem-
ber, or a medical or other professional
from whom the employee has sought as-
sistance in addressing domestic violence
and its effects; or
‘‘(B) other corroborating evidence, such
as—
‘‘(i) a statement from any other indi-
vidual with knowledge of the circumstances
which provide the basis for the claim; or
‘‘(ii) physical evidence of domestic vio-
lence, such as photographs or torn or
bloody clothes.
All evidence of domestic violence experienced by an
employee, including an employee’s statement, any
corroborating evidence, and the fact that an em-
ployee has applied for, or inquired about, unemploy-
ment compensation available by reason of subsection
(a)(21) shall be retained in the strictest confidence
by such State unemployment agency, except to the
extent consented to by the employee where disclosure
is necessary to protect the employee’s safety.
775
HR 1990 IH
‘‘(5) EFFECT OF CLAIMS.—Claims filed for un-
employment compensation solely by reason of sub-
section (a)(21) shall be disregarded in determining
an employer’s State unemployment taxes based on
unemployment experience.’’.
(b) SOCIAL SECURITY PERSONNEL TRAINING.—Sec-
tion 303(a) of the Social Security Act (42 U.S.C. 503(a))
is amended—
(1) by redesignating paragraphs (4) through
(10) as paragraphs (5) through (11), respectively;
and
(2) by inserting after paragraph (3) the fol-
lowing new paragraph:
‘‘(4) Such methods of administration as will en-
sure that claims reviewers and hearing personnel are
adequately trained in—
‘‘(A) the nature and dynamics of claims
for unemployment compensation based on do-
mestic violence under section 3304(a)(20) of
the Internal Revenue Code of 1986; and
‘‘(B) methods of ascertaining and keeping
confidential information about possible experi-
ences of domestic violence to ensure that—
‘‘(i) requests for unemployment com-
pensation based on domestic violence are
776
HR 1990 IH
reliably screened, identified, and adju-
dicated; and
‘‘(ii) complete confidentiality is pro-
vided for the employee’s claim and sub-
mitted evidence; and’’.
(c) FUNDING FOR IMPROVED TECHNOLOGY TO AS-
SIST IN DETERMINING BENEFIT ELIGIBILITY.—Section
901(c) of the Social Security Act (42 U.S.C. 1101(c)) is
amended by adding at the end the following new para-
graph:
‘‘(6) In addition to amounts provided under para-
graph (1)(A)(i), there is hereby appropriated out of the
employment security administration account $60,000,000
for fiscal year 2001 (which shall remain available for obli-
gation to the States through fiscal year 2003) for the pur-
pose of assisting States in funding technology and other
costs that accelerate access to wage and employment infor-
mation in order to determine eligibility for unemployment
compensation.’’.
(d) DEFINITIONS.—Section 3306 of the Internal Rev-
enue Code of 1986 (relating to definitions) is amended by
adding at the end the following new subsection:
‘‘(u) DOMESTIC VIOLENCE.—For purposes of this
chapter, the term ‘domestic violence’ has the meaning
given such term in section 2003(1) of title I of the Omni-
777
HR 1990 IH
bus Crime Control and Safe Streets Act of 1968 (42
U.S.C. 3796gg–2).’’.
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this
section shall take effect on November 1, 2001.
(2) FUNDING FOR IMPROVED TECHNOLOGY TO
ASSIST
IN
DETERMINING
BENEFIT
ELIGIBILITY.—
The amendment made by subsection (c) shall take
effect on the date of enactment of this Act.
(3) EXCEPTION.—In the case of any State the
legislature of which has not been in session for at
least 30 calendar days (whether or not successive)
between the date of enactment of this Act and No-
vember 1, 2001, the amendments made by this sec-
tion shall take effect 30 calendar days after the first
day on which such legislature is in session on or
after November 1, 2001.
SEC. 5223. LOSS OF CHILD CARE AS GOOD CAUSE FOR
LEAVING EMPLOYMENT.
(a) IN GENERAL.—Subsection (a) of section 3304 of
the Internal Revenue Code of 1986 (relating to approval
of State unemployment compensation laws), as amended
by section 5222, is amended—
778
HR 1990 IH
(1) in paragraph (21), by striking ‘‘and’’ at the
end;
(2) by redesignating paragraph (22) as para-
graph (23); and
(3) by inserting after paragraph (21) the fol-
lowing new paragraph:
‘‘(22) if any individual leaves employment be-
cause of loss of adequate child care for a dependent
child under the age of 12, for purposes of deter-
mining such individual’s eligibility for compensation
for any subsequent week for which such individual
meets the State law requirements relating to avail-
ability for work and active search for work—
‘‘(A) such individual shall be treated as
having left such employment for good cause,
and
‘‘(B) any failure to return to such employ-
ment or to otherwise meet such State law re-
quirements, while the lack of such child care
continues, shall be disregarded; and’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by subsection (a)
shall take effect on November 1, 2001.
779
HR 1990 IH
(2) EXCEPTION.—In the case of any State the
legislature of which has not been in session for at
least 30 calendar days (whether or not successive)
between the date of enactment of this Act and No-
vember 1, 2001, the amendments made by sub-
section (a) shall take effect 30 calendar days after
the first day on which such legislature is in session
on or after November 1, 2001.
Subtitle D—Jobs for Low-Income
Parents
SEC. 5301. DISREGARD OF MONTHS ENGAGED IN WORK
FOR PURPOSES OF 5-YEAR TANF ASSISTANCE
LIMIT.
Section 408(a)(7) of the Social Security Act (42
U.S.C. 608(a)(7)) is amended—
(1) by redesignating subparagraphs (E), (F),
and (G) as subparagraphs (G), (H), and (I), respec-
tively; and
(2) by inserting after subparagraph (D), the
following:
‘‘(E) DISREGARD OF MONTHS OF ASSIST-
ANCE RECEIVED BY ADULT WHILE ENGAGED IN
WORK.—In determining the number of months
for which an adult has received assistance
under a State or tribal program funded under
780
HR 1990 IH
this part, the State or tribe shall disregard any
month during which the adult is engaged in a
work activity described in paragraph (1), (2),
(3), (4), (5), (6), (7), (8), or (12) of section
407(d) in accordance with the requirements of
section 407(c).’’.
SEC. 5302. STRENGTHENING TANF EDUCATION AND TRAIN-
ING REQUIREMENTS.
(a) IN GENERAL.—Section 407(c) of the Social Secu-
rity Act (42 U.S.C. 607(c)) is amended—
(1) in paragraph (1)(A), by striking ‘‘not fewer
than 20 hours per week of which are attributable to
an activity described in paragraph (1), (2), (3), (4),
(5), (6), (7), (8), or (12) of subsection (d),’’; and
(2) in paragraph (2)(D)—
(A) by striking ‘‘30 percent’’ and inserting
‘‘50 percent’’;
(B) by striking ‘‘For purposes of’’ and in-
serting the following:
‘‘(i) IN GENERAL.—For purposes of’’;
and
(C) by adding at the end the following:
‘‘(ii) WAIVER.—The Secretary may
waive the requirements of clause (i) with
respect to an individual if a State dem-
781
HR 1990 IH
onstrates that the vocational educational
training or education described in subpara-
graph (C) that the individual is engaged in
is part of the individual’s individual re-
sponsibility plan developed under section
408(b) and is designed to ensure that the
individual has a better chance of sus-
taining stable employment.’’.
(b) ELIMINATION OF 12-MONTH LIMIT ON VOCA-
TIONAL EDUCATIONAL TRAINING; INCLUSION OF POST-
SECONDARY EDUCATION.—Section 407(d) of the Social
Security Act (42 U.S.C. 607(d)) is amended—
(1) in paragraph (8), by striking ‘‘(not to ex-
ceed 12 months with respect to any individual)’’;
(2) in paragraph (11), by striking ‘‘and’’ at the
end;
(3) by redesignating paragraph (12) as para-
graph (13); and
(4) by inserting after paragraph (11), the fol-
lowing:
‘‘(12) post-secondary education related to em-
ployment; and’’.
782
HR 1990 IH
SEC. 5303. ADDITION OF POVERTY REDUCTION BONUS TO
TANF.
Section 403(a) of the Social Security Act (42 U.S.C.
603(a)), is amended by adding at the end the following:
‘‘(6) BONUS TO REWARD STATES THAT REDUCE
POVERTY.—
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant pursuant to this paragraph to
each State for each fiscal year beginning with
fiscal year 2003 for which the State is a quali-
fied poverty reduction State, as determined
under subparagraph (C).
‘‘(B) AMOUNT OF GRANT.—With respect
to a fiscal year, each State that the Secretary
determines is a qualified poverty reduction
State for that fiscal year shall receive a grant
in an amount equal to the ratio of the amount
appropriated under subparagraph (D) for that
fiscal year to the total number of all such
States for that fiscal year.
‘‘(C) DETERMINATION OF QUALIFIED POV-
ERTY
REDUCTION
STATES.—For purposes of
subparagraph (A), a State shall be considered a
qualified poverty reduction State for a fiscal
year if the State satisfies the following:
783
HR 1990 IH
‘‘(i) PROVISION OF CERTAIN ASSIST-
ANCE.—The State demonstrates to the
Secretary that the State program funded
under this part provides in each local polit-
ical subdivision of the State for at least 3
of the following:
‘‘(I) A work expense or transpor-
tation allowance for any low-income
family that is not receiving assistance
under the State program.
‘‘(II) The use of income dis-
regards sufficient to allow a family to
remain eligible for at least partial as-
sistance under the State program
until the sum of the family’s earned
income and cash assistance exceed the
poverty line applicable to such family.
‘‘(III) On-the-job training or
work/study programs in occupations
likely to provide a livable wage. For
purposes of this subclause, the term
‘livable wage’ means such hourly wage
as is necessary for an employee to
earn, while working 40 hours a week
on a full-year basis, an amount equal
784
HR 1990 IH
to the amount of the Federal poverty
level for a family of 4 for that year
(as published in the Federal Register
by the Department of Health and
Human Services under the authority
of section 673(2) of the Omnibus
Budget Reconciliation Act of 1981).
‘‘(IV) Temporary subsidized em-
ployment that provides at least the
minimum wage applicable under sec-
tion 6 of the Fair Labor Standards
Act for parents or caregivers who are
unable to find other employment.
‘‘(V) Non-recurrent assistance to
help pay for the repair of a vehicle or
appliance, past-due rent, a utility or
fuel bill, vehicle licensing or insurance
costs, or for other purposes deemed
necessary by the State to enable eligi-
ble families with children to maintain
stable work and living situations.
‘‘(VI) A minimum monthly child
support payment paid by the State to
a low-income family with at least 1
child support order if the noncustodial
785
HR 1990 IH
parent does not pay the minimum
payment required under the order.
‘‘(VII) With respect to families
that have assigned to the State in ac-
cordance with section 408(a)(3) any
child support rights a family member
may have (on behalf of the family
member or of any other person for
whom the family member has applied
for or is receiving such assistance), a
pass through of child support collec-
tions to the family, with at least $100
per month of the pass-through pay-
ment disregarded for purposes of cal-
culating assistance for the family
under the State program funded
under this part.
‘‘(VIII) 
An 
increase 
in 
the
State’s minimum wage to at least
$6.15 per hour or a State minimum
wage indexed to inflation.
‘‘(ii) DEMONSTRATION OF IMPROVED
OUTCOMES
FOR
CURRENT
AND
FORMER
RECIPIENTS OF ASSISTANCE.—
786
HR 1990 IH
‘‘(I) IN GENERAL.—With respect
to a fiscal year, the State is one of the
10 States with the greatest year-to-
year decline or, in the absence of 10
such States, the least year-to-year in-
crease, in the child poverty rate ad-
justed by the severity of poverty. For
purposes of this subclause, the child
poverty rate adjusted by the severity
of poverty shall be determined with
respect to a State for a fiscal year by
multiplying the State’s percentage of
children with family income below the
poverty line for that fiscal year by the
average difference per poor child in
the State between the child’s family
income and the poverty line.
‘‘(II) DETERMINATION
OF
IN-
COME.—For purposes of subclause
(I), the Secretary shall, to the extent
feasible, consider the following in cal-
culating a family’s income:
‘‘(aa) Cash income, such as
earnings, child support received
787
HR 1990 IH
by the family, and government
cash payments.
‘‘(bb) 
Benefits 
received
under the Food Stamp Act of
1977.
‘‘(cc) Federal, State, or local
income taxes paid by the family
for the preceding taxable year
and the refundable portion of any
tax credits received.
‘‘(D) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there is appropriated for fis-
cal year 2003 and each fiscal year thereafter,
$200,000,000 to make the grants required
under this paragraph.’’.
SEC. 5304. PARTICIPATION IN WORKFORCE INVESTMENT
BOARDS.
(a) STATE WORKFORCE INVESTMENT BOARDS.—
Section 111(b)(1)(C) of the Workforce Investment Act of
1998 (29 U.S.C. 2821(b)(1)(C)) is amended—
(1) by redesignating clause (vii) as clause (viii);
(2) in clause (vi), by striking ‘‘and’’ at the end;
and
(3) by inserting after clause (vi) the following:
788
HR 1990 IH
‘‘(vii) a representative of a lead State
agency with responsibility for the State
program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et
seq.); and’’.
(b) LOCAL WORKFORCE INVESTMENT BOARDS.—
Section 117(b)(2)(A) of the Workforce Investment Act of
1998 (29 U.S.C. 2832(b)(2)(A)) is amended—
(1) in clause (v), by striking ‘‘and’’ at the end;
and
(2) by adding at the end the following:
‘‘(vii) a representative of the local
agency, if any, with responsibility for the
program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et
seq.); and’’.
SEC. 5305. CLARIFICATION OF TANF PURPOSE.
Section 401(a) of the Social Security Act (42 U.S.C.
601(a)) is amended—
(1) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(2) by inserting after paragraph (2), the fol-
lowing:
‘‘(3) reduce poverty among families with chil-
dren;’’.
789
HR 1990 IH
SEC. 5306. EFFECTIVE DATE.
The amendments made by this subtitle take effect on
October 1, 2001.
Subtitle E—Incentives to Serve
Families
SEC. 5401. DEVELOPMENT OF MODEL CASEWORKER TRAIN-
ING MATERIALS.
(a) DEVELOPMENT OF MODEL CASEWORKER TRAIN-
ING MATERIALS.—The Secretary of Health and Human
Services shall develop model training materials (including
guidebooks and other resources) for caseworkers assigned
to administer the provision of assistance to a family under
the State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.). The model
training materials shall be designed to train the case-
workers to improve the access of the family to other serv-
ices and benefits that the family, or individuals within the
family, may be eligible for, including—
(1) benefits under the food stamp program, as
defined in section 3(h) of the Food Stamp Act of
1977 (7 U.S.C. 2012(h));
(2) medical assistance under the medicaid pro-
gram under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.);
790
HR 1990 IH
(3) child health assistance under the State chil-
dren’s health insurance program under title XXI of
the Social Security Act (42 U.S.C. 1397aa et seq.);
(4) the special supplemental nutrition program
for women, infants, and children (WIC) under sec-
tion 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786);
(5) child care assistance;
(6) transportation assistance;
(7) education or training assistance;
(8) job placement activities;
(9) the earned income tax credit under section
32 of the Internal Revenue Code of 1986; and
(10) services to treat or alleviate substance
abuse, mental illness, or family violence.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary of Health
and Human Services to carry out this section such sums
as may be necessary for fiscal year 2002 and each fiscal
year thereafter.
791
HR 1990 IH
SEC. 5402. EXCEPTION TO LIMIT ON TANF ADMINISTRATIVE
EXPENDITURES FOR CASEWORKER BONUSES
AND OTHER STATE INITIATIVES TO ELIMI-
NATE BARRIERS TO WORK.
Section 404(b)(2) of the Social Security Act (42
U.S.C. 604(b)(2)) is amended—
(1) in the heading, by striking ‘‘EXCEPTION’’;
and inserting ‘‘EXCEPTIONS’’;
(2) by striking ‘‘Paragraph (1)’’ and inserting
the following:
‘‘(A) INFORMATION
TECHNOLOGY
AND
COMPUTERIZATION.—Paragraph (1)’’; and
(3) by adding at the end the following:
‘‘(B) CASEWORKER BONUSES AND OTHER
STATE
INITIATIVES
TO
ELIMINATE
BARRIERS
TO WORK.—
‘‘(i) IN
GENERAL.—Paragraph (1)
shall not apply to the use of a grant to
provide a cash bonus to a caseworker for
a family receiving assistance under the
State program funded under this part
based on the number of such families that
the State determines the caseworker as-
sists achieve a goal described in clause (ii),
or for expenditures incurred for other
State initiatives designed to eliminate bar-
792
HR 1990 IH
riers to work for families receiving assist-
ance under the State program funded
under this part.
‘‘(ii) CASEWORKER GOALS.—For pur-
poses of clause (i), the goals described in
this clause are the following:
‘‘(I) Obtain employment that
provides wages and benefits that en-
able the family to have income that
exceeds the poverty line applicable to
a family of the size involved.
‘‘(II) Obtain supportive services
and benefits for which the family is el-
igible.
‘‘(III) With respect to an indi-
vidual within a family, overcome a
barrier to the individual’s employ-
ment, including a barrier resulting
from a lack of transportation or child
care, a life crisis due to family vio-
lence, substance abuse, or a mental or
physical disability.
‘‘(IV) With respect to an indi-
vidual within a family, retain employ-
ment for at least 6 months.’’.
793
HR 1990 IH
SEC. 5403. STRENGTHENING OF TANF INDIVIDUAL RESPON-
SIBILITY PLANS.
Section 408(b) of the Social Security Act (42 U.S.C.
608(b)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i),
by striking ‘‘may’’ and inserting ‘‘shall’’;
and
(ii) in clause (i), by striking ‘‘imme-
diately into private sector employment’’
and inserting ‘‘into a job leading to stable
employment with earnings above the pov-
erty line applicable to a family of the size
involved (based on 35 hours of work per
week) and health care benefits for the em-
ployee and the employee’s dependents’’;
and
(B) in subparagraph (B)—
(i) in the matter preceding clause (i),
by striking ‘‘may’’ and inserting ‘‘shall’’;
(ii) in clause (i), by striking ‘‘(or, at
the option of the State, 180 days)’’;
(iii) in clause (ii), by striking ‘‘(or, at
the option of the State, 90 days)’’; and
794
HR 1990 IH
(2) by striking paragraph (4) and inserting the
following:
‘‘(4) PENALTY FOR NONCOMPLIANCE BY THE
STATE.—In addition to any other penalties that may
be imposed against a State for failure to comply
with the requirements of this part, the Secretary
may reduce the grant payable to a State under sec-
tion 403(a)(1) if the Secretary determines that the
State has failed, without good cause, to comply with
the requirements of this subsection.’’.
SEC. 5404. EFFECTIVE DATE.
The amendments made by this subtitle take effect on
October 1, 2001.
Subtitle F—Addressing Work
Barriers
SEC. 5501. FUNDING FOR ACCESS TO JOBS PROGRAM.
Section 3037 of the Transportation Equity Act for
the 21st Century (49 U.S.C. 5309 note) is amended in
subsection (l)(1)—
(1) in subparagraph (A), by striking clauses
(iv) and (v) and inserting the following:
‘‘(iv) $150,000,000 for fiscal year
2002;
‘‘(v) $170,000,000 for fiscal year
2003;
795
HR 1990 IH
‘‘(vi) $190,000,000 for fiscal year
2004;
‘‘(vii) $200,000,000 for fiscal year
2005; and
‘‘(viii) $225,000,000 for fiscal year
2006.’’;
(2) in subparagraph (B), by striking clauses
(iv) and (v) and inserting the following:
‘‘(iv) $50,000,000 for each of fiscal
years 2002 through 2006.’’; and
(3) in subparagraph (C)—
(A) by inserting ‘‘and’’ after the semicolon
in clause (ii);
(B) by striking ‘‘; and’’ in clause (iii) and
inserting a period; and
(C) by striking clause (iv).
SEC. 5502. REQUIREMENT TO IDENTIFY AND PROVIDE
SERVICES TO ADDRESS BARRIERS TO EM-
PLOYMENT OF TANF RECIPIENTS.
(a) REQUIREMENT TO IDENTIFY AS PART OF INDI-
VIDUAL RESPONSIBILITY PLAN.—Section 408(b) of the
Social Security Act (42 U.S.C. 608(b)), as amended by
section 5403, is amended—
(1) in paragraph (1), by striking ‘‘who—’’ and
all that follows and inserting ‘‘has attained 18 years
796
HR 1990 IH
of age, using caseworkers who are trained to utilize
assessment methods approved by the State to iden-
tify recipients with severe barriers to employment,
such as being subjected to domestic violence, having
mental health, substance or alcohol abuse problems,
homelessness, a physical or mental disability, or illit-
eracy problems.’’; and
(2) in paragraph (2)(A)(iv), by inserting ‘‘over-
come any severe barriers to employment identified
by the State under paragraph (1), and to’’ after
‘‘will be able to’’.
(b) EXEMPTION FROM WORK REQUIREMENT IF
STATE FAILS TO PROVIDE SERVICES.—Section 407(e) of
the Social Security Act (42 U.S.C. 607(e)) is amended—
(1) in paragraph (1), by striking ‘‘paragraph
(2)’’ and inserting ‘‘paragraphs (2) and (3)’’;
(2) in paragraph (2), in the heading, by strik-
ing ‘‘EXCEPTION’’; and inserting ‘‘SINGLE CUSTO-
DIAL PARENT WITH A YOUNG CHILD’’; and
(3) by adding at the end the following:
‘‘(3) INDIVIDUAL WITH A SEVERE BARRIER TO
EMPLOYMENT TO WHOM THE STATE FAILS TO PRO-
VIDE SERVICES.—Notwithstanding paragraph (1), a
State may not reduce assistance under the State
program funded under this part based on a refusal
797
HR 1990 IH
of an individual to engage in work required in ac-
cordance with this section if, as part of the assess-
ment required under section 408(b)(1), the indi-
vidual has been identified as having a severe barrier
to employment and the State fails to provide services
necessary to overcome the barrier.’’.
SEC. 5503. STATE OPTION TO ESTABLISH EXCEPTIONS
FROM TIME LIMIT FOR RECEIPT OF TANF AS-
SISTANCE BASED ON SEVERE BARRIERS TO
EMPLOYMENT.
Section 408(a)(7)(C) of the Social Security Act (42
U.S.C. 608(a)(7)(C)) is amended—
(1) in clause (ii), by striking ‘‘The average’’
and inserting ‘‘Subject to clause (iv), the average’’;
and
(2) by adding at the end the following:
‘‘(iv) STATE OPTION FOR EXCEPTIONS
BASED ON SEVERE BARRIERS TO EMPLOY-
MENT.—At State option, the limit de-
scribed in clause (ii) shall not apply with
respect to each category of exception based
on severe barriers to employment as the
State may determine.’’.
798
HR 1990 IH
SEC. 5504. EFFECTIVE DATE.
The amendments made by this subtitle take effect on
October 1, 2001.
Subtitle G—Protection for Families
in Need
SEC. 5601. EARN-BACK OF MONTHS OF TANF ASSISTANCE.
Section 408(a)(7) of the Social Security Act (42
U.S.C. 608(a)(7)), as amended by section 5301, is amend-
ed by inserting after subparagraph (E) the following:
‘‘(F) EARN-BACK OF MONTHS OF ASSIST-
ANCE.—In determining the number of months
for which an adult has received assistance
under a State or tribal program funded under
this part, the State or tribe shall disregard 1
month for every 3 months that the adult is en-
gaged in a work activity defined in paragraph
(1), (2), or (3) of section 407(d) in accordance
with the requirements of section 407(c) and
during which the individual is not receiving as-
sistance under the State program funded under
this part.’’.
SEC. 5602. ESTABLISHMENT OF A FAIR CONCILIATION
PROCESS FOR FAMILIES UNDER TANF.
Section 408 of the Social Security Act (42 U.S.C.
608) is amended by adding at the end the following:
‘‘(h) FAIR CONCILIATION PROCEDURES.—
799
HR 1990 IH
‘‘(1) IN GENERAL.—Any case closed under the
State program funded under this part shall be sub-
ject to a customer service review in accordance with
the requirements of this subsection to ensure that a
case is not erroneously terminated and to give a
family another opportunity to participate in the pro-
gram.
‘‘(2) REQUIREMENTS.—
‘‘(A) INITIAL REVIEW.—A customer service
reviewer shall examine the case record for each
case closed to determine—
‘‘(i) whether the caseworker respon-
sible for the case has attempted to make
personal contact with the parent or care-
giver before recommending closure of the
case; and
‘‘(ii) whether sufficient documentation
exists in the case record to establish both
a factual and policy basis for closure of the
case, including documentation of written
notice of the closure to the parent or care-
giver.
‘‘(B) RETURN
TO
CASEWORKER.—Any
case in which a customer service reviewer deter-
mines that no personal contact has been at-
800
HR 1990 IH
tempted before closure of the case, or that in-
sufficient documentation exists, shall be re-
turned to the caseworker for the provision of
such attempted contact or documentation.
‘‘(C) ADDITIONAL ATTEMPTED PERSONAL
CONTACT.—If a case is not returned to a case-
worker under subparagraph (A), the customer
service reviewer shall attempt to make personal
contact with the parent or caregiver involved,
including, if 3 attempts are required, an at-
tempt outside of normal business hours. A case
shall be closed after 3 unsuccessful attempts.
‘‘(D) DETERMINATION
OF
GOOD
CAUSE
FOR EXCEPTION TO CLOSURE.—
‘‘(i) IN GENERAL.—With respect to a
case in which a caseworker or a customer
service reviewer has made personal contact
with the parent or caregiver, the customer
service reviewer shall determine whether
barriers to participation in the program
exist, whether there are grounds for ex-
emption from the time limits or any other
program requirements, or whether there
was an error in the application of the facts
or policy.
801
HR 1990 IH
‘‘(ii) MODIFICATION
OF
INDIVIDUAL
RESPONSIBILITY
PLAN.—If a customer
service reviewer determines under clause
(i) that a case should not be closed, the
customer service reviewer shall work with
the parent or caregiver to modify the par-
ent’s or caregiver’s individual responsibility
plan developed under subsection (b) as ap-
propriate, including with respect to the
provision of any additional services needed
to assist the individual in becoming work-
ready.
‘‘(E) PLAN FOR COMPLIANCE.—If a cus-
tomer service reviewer determines that subpara-
graph (D) does not apply and a parent or care-
giver is not subject to the time limit for receipt
of assistance under subsection (a)(7), the re-
viewer shall ask the parent or caregiver if the
parent or caregiver is now willing to comply
with program requirements, and establish a
plan with the parent or caregiver for compli-
ance. If the parent or caregiver does not comply
with such plan, the case shall be closed without
regard to the preceding subparagraphs of this
paragraph.
802
HR 1990 IH
‘‘(F) WRITTEN NOTICE.—With respect to
a case closed by a customer service reviewer
under this subsection, the reviewer shall send
the family involved a final written notice of the
case closure that informs the family of—
‘‘(i) the specific factual basis of the
closure;
‘‘(ii) the steps that the family can
take to maintain eligibility for assistance
under the State program; and
‘‘(iii) the procedure for appealing the
closure decision.’’.
SEC. 5603. EFFECTIVE DATE.
The amendments made by this subtitle take effect on
October 1, 2001.
Subtitle H—TANF Reauthorization
SEC. 5701. REAUTHORIZATION OF TANF STATE FAMILY AS-
SISTANCE GRANTS.
Section 403(a)(1) of the Social Security Act (42
U.S.C. 603(a)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘fiscal
years 1996, 1997, 1998, 1999, 2000, 2001, and
2002’’ and inserting ‘‘the fiscal years during the pe-
riod beginning with fiscal year 1996 and ending with
fiscal year 2007’’; and
803
HR 1990 IH
(2) in subparagraph (E), by striking ‘‘fiscal
years 1996, 1997, 1998, 1999, 2000, 2001, and
2002’’ and inserting ‘‘each of the fiscal years during
the period beginning with fiscal year 1996 and end-
ing with fiscal year 2007’’.
SEC. 5702. PROHIBITION ON SUPPLANTATION OF TANF
FUNDS.
Section 408(a) of the Social Security Act (42 U.S.C.
608(a)) is amended by adding at the end the following
new paragraph:
‘‘(12) SUPPLEMENT
NOT
SUPPLANT.—Funds
made available under this part shall be used to sup-
plement, not supplant, other Federal, State, or local
funds that are used for existing services and activi-
ties that promote the purposes of this part.’’.
TITLE VI—FAIR START
Subtitle A—Child and Adult Care
Food Program
SEC. 6001. PARTICIPATION OF FOR-PROFIT CARE CENTERS
IN CHILD AND ADULT CARE FOOD PROGRAM.
Section 17(a)(2)(B) of the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1766(a)(2)(B)) is
amended—
(1) by striking ‘‘if—’’ and all that follows
through ‘‘2001, at’’ and inserting ‘‘if at’’; and
804
HR 1990 IH
(2) by striking ‘‘meals; or’’ and all that follows
and inserting ‘‘meals;’’.
SEC. 6002. CATEGORICAL ELIGIBILITY REQUIREMENTS.
Section 17(f)(3)(A)(ii) of the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1766(f)(3)(A)(ii)) is
amended by adding at the end the following:
‘‘(V) 
CATEGORICAL
ELIGI-
BILITY.—In making a determination
of income eligibility under subclauses
(I)(cc) and (II), a family or group day
care home sponsoring organization
may consider a provider participating
in or subsidized under, or a provider
with a child participating in or sub-
sidized under, a federally or State
supported child care or other benefit
program with an income eligibility
limit that does not exceed the eligi-
bility standard for free or reduced
price meals under section 9 to be a
provider whose household meets the
income eligibility guidelines under sec-
tion 9.’’.
805
HR 1990 IH
SEC. 6003. INCREASE IN ADMINISTRATIVE REIMBURSE-
MENT RATES.
Section 17(f)(3) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by
striking subparagraph (B) and inserting the following:
‘‘(B) REIMBURSEMENT FOR ADMINISTRA-
TIVE EXPENSES.—
‘‘(i) IN GENERAL.—Family or group
day care home sponsoring organizations
shall also receive reimbursement for ad-
ministrative expenses in amounts not ex-
ceeding the maximum allowable levels pre-
scribed by the Secretary.
‘‘(ii) ADJUSTMENT.—The maximum
allowable levels prescribed under clause (i)
shall be—
‘‘(I) adjusted July 1 of each year
to reflect changes for the 12-month
period ending in the preceding June,
in the Consumer Price Index for All
Urban Consumers published by the
Bureau of Labor Statistics of the De-
partment of Labor, rounded to the
nearest lower dollar increment; and
‘‘(II) in addition to the adjust-
ments required under subclause (I),
806
HR 1990 IH
increased by $2.00 for each level de-
scribed in clause (i).’’.
SEC. 6004. PROGRAM FOR AT-RISK SCHOOL CHILDREN.
Section 17(r) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(r)) is amended—
(1) in paragraph (1)(B)—
(A) by inserting ‘‘(i)’’ after ‘‘(B)’’;
(B) by striking ‘‘in a geographical area’’
and all that follows through the period and in-
serting the following: ‘‘in a geographical area—
‘‘(I) that is served by a school in
which at least 50 percent of the children
are eligible for free or reduced price school
meals under this Act or the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et seq.);
or
‘‘(II) in which poor economic condi-
tions exist, as determined by the Secretary
based on—
‘‘(aa) information provided from
the local department of welfare, zon-
ing commission, or census tracts; or
‘‘(bb) information from other ap-
propriate sources; or’’; and
(C) by adding at the end the following:
807
HR 1990 IH
‘‘(ii) is enrolled in a program authorized
under this subsection operated at a site not de-
scribed in clause (i).’’;
(2) in paragraph (4), by striking subparagraphs
(B) and (C) and inserting the following:
‘‘(B) RATES.—
‘‘(i) MEALS.—A meal shall be reim-
bursed under this subsection—
‘‘(I) for children participating in
a program at a site described in para-
graph (1)(B)(i), at the rate estab-
lished for free meals under subsection
(c); and
‘‘(II) for children enrolled in a
program under paragraph 1(B)(ii), at
the applicable rate for meals estab-
lished under subsection (c).
‘‘(ii) SUPPLEMENTS.—A supplement
shall 
be 
reimbursed 
under 
this
subsection—
‘‘(I) for children participating in
a program at a site described in para-
graph (1)(B)(i), at the rate estab-
lished for a free supplement under
subsection (c)(3); and
808
HR 1990 IH
‘‘(II) for children enrolled in a
program under paragraph 1(B)(ii), at
the applicable rate for supplements es-
tablished under subsection (c)(3).
‘‘(C) NO CHARGE.—In the case of at-risk
school child participating in a program at a site
described in paragraph (1)(B)(i), a meal or
supplement provided under this subsection to
the child shall be served without charge.’’; and
(3) by striking paragraph (5).
Subtitle B—Food Stamp Program
SEC. 6101. RESTORATION OF FOOD STAMP BENEFITS FOR
QUALIFIED ALIENS.
(a) LIMITED ELIGIBILITY
OF QUALIFIED ALIENS
FOR CERTAIN FEDERAL PROGRAMS.—
(1) IN GENERAL.—Section 402(a) of the Per-
sonal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 (8 U.S.C. 1612(a)) is
amended—
(A) in paragraph (2)—
(i) in subparagraph (A), by striking
‘‘Federal programs’’ and inserting ‘‘Fed-
eral program’’;
(ii) in subparagraph (D)—
(I) by striking clause (ii); and
809
HR 1990 IH
(II) in clause (i)—
(aa) 
by 
striking 
‘‘(i)
SSI.—’’ and all that follows
through ‘‘paragraph (3)(A)’’ and
inserting the following:
‘‘(i) IN
GENERAL.—With respect to
the specified Federal program described in
paragraph (3)’’;
(bb) by redesignating sub-
clauses (II) through (IV) as
clauses (ii) through (iv) and in-
denting appropriately;
(cc) by striking ‘‘subclause
(I)’’ each place it appears and in-
serting ‘‘clause (i)’’; and
(dd) in clause (iv) (as redes-
ignated by item (bb)), by striking
‘‘this clause’’ and inserting ‘‘this
subparagraph’’;
(iii) in subparagraph (E), by striking
‘‘paragraph (3)(A) (relating to the supple-
mental security income program)’’ and in-
serting ‘‘paragraph (3)’’;
(iv) in subparagraph (F);
810
HR 1990 IH
(I) by striking ‘‘Federal pro-
grams’’ and inserting ‘‘Federal pro-
gram’’;
(II) in clause (ii)(I)—
(aa) by striking ‘‘(I) in the
case of the specified Federal pro-
gram described in paragraph
(3)(A),’’; and
(bb) by striking ‘‘; and’’ and
inserting a period; and
(III) by striking subclause (II);
(v) in subparagraph (G), by striking
‘‘Federal programs’’ and inserting ‘‘Fed-
eral program’’;
(vi) in subparagraph (H), by striking
‘‘paragraph (3)(A) (relating to the supple-
mental security income program)’’ and in-
serting ‘‘paragraph (3)’’; and
(vii) by striking subparagraphs (I),
(J), and (K); and
(B) in paragraph (3)—
(i) by striking ‘‘means any’’ and all
that follows through ‘‘The supplemental’’
and inserting ‘‘means the supplemental’’;
and
811
HR 1990 IH
(ii) by striking subparagraph (B).
(2) 
CONFORMING
AMENDMENT.—Section
402(b)(2)(F) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1612(b)(2)(F)) is amended by striking ‘‘sub-
section (a)(3)(A)’’ and inserting ‘‘subsection (a)(3)’’.
(b) FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED
ALIENS
FOR FEDERAL MEANS-TESTED PUBLIC BEN-
EFIT.—Section 403 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (8 U.S.C.
1613) is amended—
(1) in subsection (c)(2), by adding at the end
the following:
‘‘(L) Assistance or benefits under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.).’’;
and
(2) in subsection (d)—
(A) by striking ‘‘not apply’’ and all that
follows through ‘‘(1) an individual’’ and insert-
ing ‘‘not apply to an individual’’; and
(B) by striking ‘‘; or’’ and all that follows
through ‘‘402(a)(3)(B)’’.
(c) AUTHORITY FOR STATES TO PROVIDE FOR AT-
TRIBUTION OF SPONSOR’S INCOME AND RESOURCES TO
THE QUALIFIED ALIEN WITH RESPECT TO STATE PRO-
812
HR 1990 IH
GRAMS.—Section 422(b) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1632(b)) is amended by adding at the end the fol-
lowing:
‘‘(8) Programs comparable to assistance or ben-
efits under the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.).’’.
(d) REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF
SUPPORT.—Section 423(d) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1183a note; Public Law 104–193) is amended by
adding at the end the following:
‘‘(12) Benefits under the Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.), if a sponsor is unable
to make the reimbursement because the sponsor ex-
periences hardship (including bankruptcy, disability,
and indigence) or if the sponsor experiences severe
circumstances beyond the control of the sponsor, as
determined by the Secretary of Agriculture.’’.
(e) DERIVATIVE ELIGIBILITY FOR BENEFITS.—Sec-
tion 436 of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996 (8 U.S.C. 1646) is re-
pealed.
(f) EFFECTIVE DATE.—
813
HR 1990 IH
(1) IN GENERAL.—Except as provided in para-
graph (2), this section and the amendments made by
this section take effect on April 1, 2002.
(2) EXCEPTIONS.—The amendments made by
subsections (a) through (d) shall—
(A) not apply to a certification period that
begins not later than April 1, 2002, and ends
not later than October 1, 2002, unless the
State agency (as defined in section 3 of the
Food Stamp Act of 1977 (7 U.S.C. 2012))
elects to make such amendments applicable be-
fore the ends of the period, but not before April
1, 2002; and
(B) apply on October 1, 2002 to a certifi-
cation period that begins not later than April 1,
2002, and ends after October 1, 2002, unless
the State agency elects to make the amend-
ments applicable to the certification period on a
date before October 1, 2002, but not before
April 1, 2002.
SEC. 6102. CONFORMING FOOD STAMP AND MEDICAID IN-
COME 
DEFINITIONS; 
SIMPLIFIED 
INCOME
CALCULATIONS.
Section 5(d) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)) is amended—
814
HR 1990 IH
(1) in paragraph (3)—
(A) by striking ‘‘and (C)’’ and inserting
‘‘(C)’’; and
(B) by adding at the end the following: ‘‘
and (D) to the extent that any other edu-
cational loans on which payment is deferred,
grants, scholarships, fellowships, veterans’ edu-
cational benefits, and the like are excluded
under Title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).’’;
(2) by striking ‘‘ and (15)’’ and inserting
‘‘(15)’’; and
(3) by inserting before the period at the end the
following: ‘‘(16) any State complementary assistance
program payments that are excluded under sub-
sections (a) and (b) of section 1931 of the Social Se-
curity Act (42 U.S.C. 1396u–1(a),(b)), and (17) at
the option of the State agency, any type of income
that the State agency does not consider when deter-
mining eligibility for cash assistance under a pro-
gram funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) or medical as-
sistance under section 1931 of the Social Security
Act (41 U.S.C. 1396u–1): Provided, That this para-
graph shall not authorize a State agency to exclude
815
HR 1990 IH
earned income, benefits under titles II, IV, or XVI
of the Social Security Act (42 U.S.C. 401 et seq.),
or other types of income that the Secretary considers
necessary for the equitable determinations of eligi-
bility and benefit levels’’.
SEC. 6103. PREVENTION OF HUNGER AMONG FAMILIES
WITH CHILDREN.
(a) STANDARD DEDUCTION.—Section 5(e) of the
Food Stamp Act of 1977 (7 U.S.C. 2014(e)) is amended
by striking paragraph (1) and inserting the following:
‘‘(1) STANDARD DEDUCTION.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall allow a standard
deduction for each household in the 48 contig-
uous States and the District of Columbia, Alas-
ka, Hawaii, Guam, and the Virgin Islands of
the United States that is equal to the applicable
percentage established under subparagraph (C)
of the income standard of eligibility under sub-
section (c)(1).
‘‘(B) LIMITATIONS.—The standard deduc-
tion for each household in the 48 contiguous
States and the District of Columbia, Alaska,
Hawaii, Guam, and the Virgin Islands of the
816
HR 1990 IH
United States under subparagraph (A) shall not
be—
‘‘(i) less than $134, $229, $189,
$269, and $118, respectively; or
‘‘(ii) more than the applicable percent-
age specified in subparagraph (C) of the
income standard of eligibility established
under section (c)(1) for a household of 6
members.
‘‘(C) APPLICABLE PERCENTAGE.—The ap-
plicable percentage referred to in subpara-
graphs (A) and (B) shall be—
‘‘(i) for fiscal year 2002, 8 percent;
‘‘(ii) for fiscal year 2003, 8.5 percent;
‘‘(iii) for fiscal year 2004, 9 percent;
‘‘(iv) for fiscal year 2005, 9.5 percent;
and
‘‘(v) for fiscal year 2006 and each
subsequent fiscal year, 10 percent.’’.
(b) APPLICATION DATE.—The amendments made by
this section shall apply on the later of—
(1) July 1, 2002; or
(2) at the option of a State agency of a State
(as those terms are defined in section 3 of the Food
817
HR 1990 IH
Stamp Act of 1977 (7 U.S.C. 2012)), October 1,
2002.
SEC. 6104. ENCOURAGEMENT OF COLLECTION OF CHILD
SUPPORT.
(a) IN GENERAL.—Section 5(e)(2) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(e)(2)) is amended—
(1) by inserting ‘‘AND CHILD SUPPORT’’ after
‘‘INCOME’’;
(2) in subparagraph (A)—
(A) by striking ‘‘DEFINITION OF’’ and all
that follows through ‘‘not include’’ and insert-
ing the following: ‘‘LIMITATION
ON
DEDUC-
TION.—A deduction under this paragraph shall
not apply to’’;
(B) in clause (i), by striking ‘‘or’’;
(C) in clause (ii), by striking the period at
the end and inserting ‘‘; or’’; and
(D) by adding at the end the following:
‘‘(iii) child support received to the ex-
tent of any reduction in public assistance
to the household as a result of receiving
the support.’’; and
(3) in subparagraph (B)—
(A) by striking ‘‘with earned income’’; and
818
HR 1990 IH
(B) by striking ‘‘to compensate’’ and all
that follows through the period and inserting
the following: ‘‘and child support received from
an identified or putative parent of a child in the
household if that parent is not a household
member.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section take effect on—
(1) July 1, 2002; or
(2) at the option of a State agency of a State
(as those terms are defined in section 3 of the Food
Stamp Act of 1977 (7 U.S.C. 2012)), October 1,
2002.
SEC. 6105. ELIMINATION OF EXCESS SHELTER EXPENSE DE-
DUCTION CAP FOR FAMILIES WITH HIGH
SHELTER COSTS.
Section 5(e)(7) of the Food Stamp Act of 1977 (7
U.S.C. 2014(e)(7)) is amended—
(1) by striking subparagraph (B); and
(2) by redesignating subparagraph (C) as sub-
paragraph (B).
SEC. 6106. PERIODIC REDETERMINATION OF ELIGIBILITY.
(a) IN GENERAL.—Section 11(e) of the Food Stamp
Act of 1977 (7 U.S.C. 2020(e)) is amended by striking
paragraph (4) and inserting the following:
819
HR 1990 IH
‘‘(4)(A) that the State agency shall periodically
require the household to cooperate in a redetermina-
tion of eligibility under procedures consistent with
paragraph (2); and
‘‘(B) that, in carrying out subparagraph (A), a
State agency—
‘‘(i) shall require a redetermination of eli-
gibility at least once—
‘‘(I) every 12 months; or
‘‘(II) every 24 months, if—
‘‘(aa) the State agency has con-
tact with the household at least once
every 12 months; and
‘‘(bb) all adult household mem-
bers are elderly or disabled;
‘‘(ii) except as provided in clause (iii), shall
continue to provide benefits to households dur-
ing the redetermination process; and
‘‘(iii) shall not provide further allotments
to any household that the State agency deter-
mines has refused to cooperate in the redeter-
mination of eligibility;’’.
(b) CONFORMING AMENDMENTS—
820
HR 1990 IH
(1) Section 3 of the Food Stamp Act of 1977
(7 U.S.C. 2012) is amended by striking subsection
(c).
(2) Section 5 of the Food Stamp Act of 1977
(7 U.S.C. 2014) is amended—
(A) in subsection (d)(2), by striking ‘‘in
the certification period’’; and
(B) in subsection (e)—
(i) in paragraph (6)(B)(ii)(III), by
striking ‘‘has been anticipated for the cer-
tification period’’ and inserting ‘‘was an-
ticipated when the household applied for
benefits or at the most recent redetermina-
tion of eligibility’’; and
(ii) in paragraph (7)(C)(iii)(II), by
striking ‘‘the end of a certification period’’
and inserting ‘‘each redetermination of eli-
gibility’’.
(3) Section 6(c)(1)(C)(iv) of the Food Stamp
Act of 1977 (7 U.S.C.2015(c)(1)(C)(iv)) is amended
by striking ‘‘certification period’’ each place it ap-
pears and inserting ‘‘interval between required rede-
terminations of eligibility’’.
(4) Section 8(c) of the Food Stamp Act of 1977
(7 U.S.C. 2017) is amended—
821
HR 1990 IH
(A) in paragraph (1), by striking ‘‘within
a certification period’’; and
(B) in paragraph (2), by striking ‘‘expira-
tion of’’ and all that follows through ‘‘certifi-
cation period,’’ and inserting ‘‘termination of
benefits to a household,’’.
(5) Section 11(e) of the Food Stamp Act of
1977 (7 U.S.C. 2020(e) is amended—
(A) in paragraph (10)—
(i) by striking ‘‘within the household’s
certification period’’; and
(ii) by striking ‘‘until such time’’ and
all that follows through ‘‘occurs earlier’’;
and
(B) in paragraph (16), by striking ‘‘recer-
tification’’ and inserting ‘‘redetermination of
the eligibility of’’.
SEC. 6107. TRANSITIONAL BENEFITS OPTION.
(a) IN GENERAL.—Section 11 of the Food Stamp Act
of 1977 (7 U.S.C. 2020) is amended by adding at the end
the following:
‘‘(s) TRANSITIONAL BENEFITS OPTION.—
‘‘(1) IN GENERAL.—A State may provide tran-
sitional food stamp benefits to a household that is
no longer eligible to receive cash assistance under a
822
HR 1990 IH
State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
‘‘(2) TRANSITIONAL BENEFITS PERIOD.—Under
paragraph (1), a household may continue to receive
food stamp benefits for a period of not more than
6 months after the date on which cash assistance is
terminated.
‘‘(3) AMOUNT.—During the transitional bene-
fits period under paragraph (2), a household shall
receive an amount equal to the allotment received in
the month immediately preceding the date on which
cash assistance is terminated, adjusted for—
‘‘(A) the change in household income as a
result of the termination of cash assistance; and
‘‘(B) any changes in circumstances that
may result in an increase in the food stamp al-
lotment of the household and that the house-
hold elects to report (as verified in accordance
with standards established by the Secretary).
‘‘(4) DETERMINATION
OF
FUTURE
ELIGI-
BILITY.—In the final month of the transitional bene-
fits period under paragraph (2), the State agency
may—
‘‘(A) require a household to cooperate in a
redetermination of eligibility to receive uninter-
823
HR 1990 IH
rupted benefits after the transitional benefits
period; and
‘‘(B) renew eligibility for a new certifi-
cation period for the household without regard
to whether the previous certification period has
expired.
‘‘(5) LIMITATION.—A household sanctioned
under section 6 shall not be eligible for transitional
benefits under this subsection.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 11(e)(4)(B) of the Food Stamp Act
of 1977 (7 U.S.C. 2020(e)(4)(B)) (as amended by
section 6106(a)) is amended—
(A) in clause (ii), by striking ‘‘and’’ at the
end;
(B) in clause (iii), by inserting ‘‘and’’ after
the semicolon; and
(C) by adding at the end the following:
‘‘(iv) may extend the intervals under
clause (i) to the end of a transitional bene-
fits period established by a State under
section 11(s);’’.
(2) Section 6(c) of the Food Stamp Act of 1977
(7 U.S.C. 2015(c)) is amended by striking ‘‘No
household’’ and inserting ‘‘Except in a case in which
824
HR 1990 IH
a household is receiving transitional benefits during
the transitional benefits period under subsection (s),
no household’’.
SEC. 6108. IMPROVING STATE INCENTIVES TO SERVE
WORKING FAMILIES.
(a) TARGETED QUALITY CONTROL SYSTEM.—Sec-
tion 16(c) of the Food Stamp Act of 1977 (7 U.S.C.
2025(c)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (B), by striking
‘‘and’’ at the end;
(B) by striking subparagraph (C) and in-
serting the following:
‘‘(C) except as provided in subparagraph
(D), for any fiscal year in which the Secretary
determines that a 95-percent statistical prob-
ability exists that the payment error rate of a
State agency exceeds the national performance
measure for payment error rates under para-
graph (6) by more than 1 percentage point,
other than for good cause shown, the State
agency shall pay to the Secretary an amount, to
be determined by the Secretary based on an in-
vestigation and finding that the State adminis-
tration of the program under this Act was seri-
825
HR 1990 IH
ously negligent, that reflects the extent of neg-
ligence, not to exceed 5 percent of the amount
provided the State agency under subsection (a);
and’’; and
(C) by adding at the end the following:
‘‘(D) if, in any 3 consecutive fiscal years,
the Secretary determines that a 95-percent sta-
tistical probability exists that the payment error
rate of a State agency exceeds the national per-
formance measure for payment error rates
under paragraph (6) by more than 1 percentage
point, other than for good cause shown, the
agency shall pay to the Secretary an amount
equal to the product of—
‘‘(i) the value of all allotments issued
by the State agency in the fiscal year;
times
‘‘(ii) the lesser of—
‘‘(I) the ratio of—
‘‘(aa) the amount by which
the payment error rate of the
State agency for the fiscal year
exceeds by more than 1 percent-
age point the national perform-
826
HR 1990 IH
ance measure for the fiscal year;
bears to
‘‘(bb) 10 percent, or
‘‘(II) 1; times
‘‘(iii) the amount by which the pay-
ment error rate of the State agency for the
fiscal year exceeds by more than 1 percent-
age point the national performance meas-
ure for the fiscal year.’’;
(2) in paragraph (2)(A), by inserting before the
semicolon the following: ‘‘, as adjusted downward to
eliminate any increases that may result from the
State agency serving a higher percentage of
households—
‘‘(i) with earned income than—
‘‘(I) the State agency served in fiscal
year 1992; or
‘‘(II) the national average for the cur-
rent year; and
‘‘(ii) containing 1 or more members who
are not United States citizens than—
‘‘(I) the State agency served in fiscal
year 1998; or
‘‘(II) the national average for the cur-
rent year’’;
827
HR 1990 IH
(3) in paragraph (4), by striking the first sen-
tence and inserting the following: ‘‘The Secretary
may require a State agency to report any factors
that the Secretary considers necessary to determine
a State agency’s payment error rate, enhanced ad-
ministrative funding, claim for payment error, or
performance under the measures under paragraph
(10).’’;
(4) in paragraph (5), by striking the first sen-
tence and inserting the following: ‘‘To facilitate the
implementation of this subsection each State agency
shall expeditiously submit to the Secretary data re-
garding its operations in each fiscal year sufficient
for the Secretary to comply with paragraph (10) and
to establish the payment error rate for the State
agency for such fiscal year and determine the
amount of either incentive payments under para-
graph (1)(A) or claims under subparagraph (C) or
(D) of paragraph (1).’’; and
(5) by inserting at the end the following:
‘‘(10)(A) ADDITIONAL
PERFORMANCE
MEAS-
URES.—In addition to the performance measures
under paragraph (1), the Secretary shall measure—
‘‘(i) compliance with the deadlines under
paragraphs (3) and (9) of section 11(e);
828
HR 1990 IH
‘‘(ii) the percentage of negative eligibility
decisions that are made in error; and
‘‘(iii) the number of households that
have—
‘‘(I) incomes less than 130 percent of
the poverty rate;
‘‘(II) annual earnings equal to at least
1000 times the Federal minimum hourly
rate under the Fair Labor Standards Act
of 1938 (29 U.S.C. 201 et seq.); and
‘‘(III) children under age 18;
that receive food stamps in the State as a per-
centage of the number of the low-income work-
ing households with children in the State.
‘‘(B) BONUS PAYMENTS.—For each fiscal year,
with respect to each of the performance measures in
subparagraph (A), the Secretary shall make excel-
lence bonus payments of $1,000,000 to—
‘‘(i) each of the 5 States with the highest
performance; and
‘‘(ii) each of the 5 States with the perform-
ance that has most improved during the fiscal
year.
‘‘(C) INVESTIGATION.—
829
HR 1990 IH
‘‘(1) IN GENERAL.—For any fiscal year in
which the Secretary determines that a 95-per-
cent statistical probability exists that the per-
formance of a State agency with respect to any
of the performance measures in subparagraph
(A) is substantially worse than a level the Sec-
retary determines reasonable, the Secretary
shall investigate the State agency.
‘‘(2) CORRECTIVE
ACTION.—If the Sec-
retary determines that the administration by
the State agency has been deficient, the Sec-
retary shall require the State agency to take
prompt corrective action.’’.
(b) APPLICATION DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to all fiscal years beginning on or after
October 1, 1999.
(2) ADDITIONAL PERFORMANCE MEASURES.—
The amendments made by subsection (a)(5) shall
apply to all fiscal years beginning on or after Octo-
ber 1, 2001.
830
HR 1990 IH
SEC. 6109. AUTHORIZATION OF APPROPRIATIONS FOR AD-
DITIONAL 
COMMODITIES 
UNDER 
EMER-
GENCY FOOD ASSISTANCE PROGRAM.
Section 214 of the Emergency Food Assistance Act
of 1983 (7 U.S.C. 7515) is amended by adding at the end
the following:
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—In addition to any other
funds that are made available to carry out this sec-
tion, there are authorized to be appropriated to pur-
chase and make available additional commodities
under this section $20,000,000 for each of fiscal
years 2002 through 2006.
‘‘(2) DIRECT
EXPENSES.—Not less than 50
percent of the amount made available under para-
graph (1) shall be used to pay direct expenses (as
defined in section 204(a)(2)) incurred by emergency
feeding organizations to distribute additional com-
modities to needy persons.’’.
TITLE VII—FAIR START
HOUSING
Subtitle A—Section 8 Vouchers
SEC. 7001. RENTAL ASSISTANCE VOUCHER PROGRAM.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development (referred to in this subtitle as the
‘‘Secretary’’) shall provide 1,000,000 incremental housing
831
HR 1990 IH
vouchers for rental assistance under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o))
during the 10 year period following the date of enactment
of this Act.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as necessary
to carry out this section.
SEC. 7002. VOUCHER SUCCESS FUND.
(a) VOUCHER SUCCESS FUND.—
(1) ESTABLISHMENT.—There is established the
Voucher Success Fund (referred to in this section as
the ‘‘Fund’’).
(2) PURPOSES.—The purposes of the Fund
are—
(A) to address barriers that individuals en-
counter in successfully utilizing voucher rental
assistance provided under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C.
1437f(o)); and
(B) to help improve the operation of that
voucher rental assistance program.
(3) USES OF ASSISTANCE.—The Secretary shall
provide assistance from the Fund to States on a
competitive basis, which assistance shall be used—
832
HR 1990 IH
(A) by communities that are determined by
an appropriate State agency of the State to be
experiencing problems in utilizing voucher rent-
al assistance provided under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C.
1437f(o)), including—
(i) difficult market conditions;
(i) low rates of success for families at-
tempting to use voucher rental assistance
provided under that section;
(iii) concentrations of assisted families
in high poverty neighborhoods; and
(iv) other program difficulties; and
(B) for activities that include—
(i) technical assistance to local public
housing authorities or communities to im-
prove the success of the voucher rental as-
sistance program under section 8(o) of the
United States Housing Act (42 U.S.C.
1437f(o));
(ii) assistance for families in using
that assistance, including mobility coun-
seling, assistance with security deposits,
transportation, and other activities in-
tended to increase the likelihood that fami-
833
HR 1990 IH
lies will succeed in leasing units or leasing
units outside of areas of concentrated pov-
erty; and
(iii) outreach to landlords and com-
munity groups to encourage participation
in that voucher rental assistance program.
(4) MONITORING
SYSTEMS.—The Secretary
may use not more than 1 percent of any amount
made available to the Fund under this section to es-
tablish monitoring systems for the Fund.
(5) REPORT.—Not later than 12 months after
the date of enactment of this Act, the Secretary
shall—
(A) conduct a detailed evaluation of the ef-
fect of providing assistance under this section;
and
(B) submit a report to Congress regarding
the evaluation conducted under subparagraph
(A).
(6) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to the Fund,
$50,000,000 for each of fiscal years 2002 through
2011 to carry out the provisions of this section.
834
HR 1990 IH
Subtitle B—National Affordable
Housing Trust Fund
SEC. 7101. PURPOSES.
The purposes of this subtitle are—
(1) to fill the growing gap in the national abil-
ity to build affordable housing by using profits gen-
erated by Federal housing programs to fund addi-
tional housing activities, and not supplant existing
housing appropriations;
(2) to enable rental housing to be built for
those families with the greatest need in areas with
the greatest opportunities in mixed-income settings;
and
(3) to promote homeownership for low-income
families.
SEC. 7102. NATIONAL AFFORDABLE HOUSING TRUST FUND.
(a) ESTABLISHMENT OF TRUST FUND.—There is es-
tablished in the Treasury of the United States a trust fund
to be known as the ‘‘National Affordable Housing Trust
Fund’’ (referred to in this subtitle as the ‘‘Trust Fund’’)
for the purpose of promoting the development of afford-
able housing.
(b) DEPOSITS TO THE TRUST FUND.—For fiscal
year 2002 and each fiscal year thereafter, there is author-
835
HR 1990 IH
ized to be appropriated to the Trust Fund an amount
equal to the sum of—
(1) any revenue generated by the Mutual Mort-
gage Insurance Fund of the Federal Housing Ad-
ministration in excess of the amount necessary for
the Mutual Mortgage Insurance Fund to maintain a
capital ratio of 3 percent for the preceding fiscal
year; and
(2) any revenue generated by the Government
National Mortgage Association in excess of the
amount necessary to pay the administrative costs
and expenses necessary to ensure the safety and
soundness of the Government National Mortgage As-
sociation for the preceding fiscal year, as determined
by the Secretary of Housing and Urban Develop-
ment.
(c) EXPENDITURES FROM THE TRUST FUND.—For
fiscal year 2002 and each fiscal year thereafter, amounts
appropriated to the Trust Fund shall be available to the
Secretary of Housing and Urban Development for use in
accordance with section 7103.
SEC. 7103. ADMINISTRATION OF NATIONAL AFFORDABLE
HOUSING TRUST FUND.
(a) DEFINITIONS.—In this section:
836
HR 1990 IH
(1) AFFORDABLE HOUSING.—The term ‘‘afford-
able housing’’ means housing for rental that bears
rents not greater than the lesser of—
(A) the existing fair market rent for com-
parable units in the area, as established by the
Secretary under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f); or
(B) a rent that does not exceed 30 percent
of the adjusted income of a family whose in-
come equals 65 percent of the median income
for the area, as determined by the Secretary,
with an adjustment for the number of bedrooms
in the unit, except that the Secretary may es-
tablish income ceilings that are higher or lower
than 65 percent of the median for the area if
the Secretary finds that such variations are
necessary because of prevailing levels of con-
struction costs or fair market rents, or unusu-
ally high or low family incomes.
(2) CONTINUED ASSISTANCE RENTAL SUBSIDY
PROGRAM.—The term ‘‘continued assistance rental
subsidy program’’ means a program under which—
(A) project-based assistance is provided,
for not more than 3 years, to a family in an af-
fordable housing unit developed with assistance
837
HR 1990 IH
made available under subsection (c) or (d) in a
project that partners with a public housing
agency, which agency agrees—
(i) to provide the assisted family with
a priority for the receipt of a voucher
under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o))
if the family chooses to move after the ini-
tial year of occupancy; and
(ii) to refer eligible voucher holders to
the property when a vacancy occurs; and
(B) after 3 years, subject to appropria-
tions, continued assistance is provided under
section 8(o) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o)), notwithstanding
any provision to the contrary in that section,
if—
(i) the program is administered to
provide families with the option of contin-
ued assistance with tenant-based vouchers
if such a family chooses to move after the
initial year of occupancy; and
(ii) the public housing agency agrees
to refer eligible voucher holders to the
property when a vacancy occurs.
838
HR 1990 IH
(3) ELIGIBLE
ACTIVITY.—The term ‘‘eligible
activity’’ means an activity that relates to the devel-
opment of affordable housing, including—
(A) the construction of new housing;
(B) the acquisition of real property;
(C) site preparation and improvement, in-
cluding demolition;
(D) substantial rehabilitation of existing
housing; and
(E) rental subsidy for not more than 3
years under a continued assistance rental sub-
sidy program.
(4) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ includes any public or private nonprofit or for-
profit entity, unit of local government, regional plan-
ning entity, and any other entity engaged in the de-
velopment of affordable housing, as determined by
the Secretary.
(5) ELIGIBLE INTERMEDIARY.—The term ‘‘eli-
gible intermediary’’ means—
(A) a nonprofit community development
corporation;
(B) a community development financial in-
stitution (as defined in section 103 of the Com-
839
HR 1990 IH
munity Development Banking and Financial In-
stitutions Act of 1994 (12 U.S.C. 4702));
(C) a State or local trust fund;
(D) any entity eligible for assistance under
section 4 of the HUD Demonstration Act of
1993 (42 U.S.C. 9816 note);
(E) a national, regional, or statewide non-
profit organization; and
(F) any other appropriate nonprofit entity,
as determined by the Secretary.
(6) EXTREMELY LOW-INCOME FAMILIES.—The
term ‘‘extremely low-income families’’ means very
low-income families (as defined in section 3(b) of the
United States Housing Act of 1937 (42 U.S.C.
1437a(b)) whose incomes do not exceed 30 percent
of the median family income for the area, as deter-
mined by the Secretary with adjustments for smaller
and larger families, except that the Secretary may
establish income ceilings that are higher or lower
than 30 percent of the median for the area if the
Secretary finds that such variations are necessary
because of unusually high or low family incomes.
(7) LOW-INCOME FAMILIES.—The term ‘‘low-in-
come families’’ has the same meaning as in section
840
HR 1990 IH
3(b) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)).
(8) 
NON-FEDERAL
SOURCES.—Non-Federal
sources include—
(A) 50 percent of funds allocable to tax
credits allocated under section 42 of the Inter-
nal Revenue Code of 1986;
(B) 50 percent of revenue from mortgage
revenue bonds issued under section 143 of that
Code; and
(C) 50 percent of proceeds from the sale of
tax exempt bonds.
(9) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
(10) STATE.—The term ‘‘State’’ has the same
meaning as in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)).
(b) ALLOCATION TO STATES AND ELIGIBLE INTER-
MEDIARIES.—For fiscal year 2002 and each fiscal year
thereafter, of the total amount made available to the Sec-
retary from the Trust Fund under section 7102(c)—
(1) 75 percent shall be used by the Secretary
to award grants to States in accordance with sub-
section (c); and
841
HR 1990 IH
(2) 25 percent shall be used by the Secretary
to award grants to eligible intermediaries in accord-
ance with subsection (d).
(c) GRANTS TO STATES.—
(1) IN GENERAL.—Subject to paragraph (2),
from the amount made available for each fiscal year
under subsection (b)(1), the Secretary shall award
grants to States, in accordance with an allocation
formula established by the Secretary, based on the
pro rata share of each State of the total need among
all States for an increased supply of affordable hous-
ing, as determined on the basis of—
(A) the number and percentage of families
in the State that live in substandard housing;
(B) the number and percentage of families
in the State that pay more than 50 percent of
their annual income for housing costs;
(C) the number and percentage of persons
living at or below the poverty level in the State;
(D) the cost of developing or carrying out
substantial rehabilitation of housing in the
State;
(E) the age of the multifamily housing
stock in the State; and
842
HR 1990 IH
(F) such other factors as the Secretary de-
termines to be appropriate.
(2) GRANT AMOUNT.—The amount of a grant
award to a State under this subsection shall be equal
to the lesser of—
(A) 4 times the amount of assistance pro-
vided by the State from non-Federal sources;
and
(B) the allocation determined in accord-
ance with paragraph (1).
(3) AWARD OF STATE ALLOCATION TO CERTAIN
ENTITIES.—
(A) IN GENERAL.—If the amount provided
by a State from non-Federal sources is less
than 25 percent of the amount that would be
awarded to the State under this subsection
based on the allocation formula described in
paragraph (1), then not later than 60 days
after the date on which the Secretary deter-
mines that the State is not eligible for the full
allocation determined under paragraph (1), the
Secretary shall publish a notice regarding the
availability of the funds for which the State is
ineligible.
843
HR 1990 IH
(B) APPLICATIONS.—Not later than 9
months after the date of publication of a notice
of funding availability under subparagraph (A),
a nonprofit or public entity (or a consortium
thereof, which may include units of local gov-
ernment working together on a regional basis)
may submit to the Secretary an application for
the available assistance or a portion of the
available assistance, which application shall
include—
(i) a certification that the applicant
will provide assistance in an amount equal
to 25 percent of the amount of assistance
made available to the applicant under this
paragraph; and
(ii) an allocation plan that meets the
requirements of paragraph (4)(B) for use
or distribution in the State of any assist-
ance made available to the applicant under
this paragraph and the assistance provided
by the applicant for purposes of clause (i).
(C) AWARD
OF
ASSISTANCE.—The Sec-
retary shall award the amount that is not
awarded to a State by operation of paragraph
(2) to 1 or more applicants that meet the re-
844
HR 1990 IH
quirements of subparagraph (B) of this para-
graph that are selected by the Secretary based
on selection criteria, established by regulation
of the Secretary.
(4) DISTRIBUTION TO ELIGIBLE ENTITIES.—
(A) IN GENERAL.—Of the amount that a
State receives under a grant award under this
subsection and the assistance provided by the
State from non-Federal sources for purposes of
paragraph (2)(A) to eligible entities for the pur-
pose of assisting those entities in carrying out
eligible activities in the State, the State shall
distribute—
(i) 75 percent to eligible entities for
eligible activities relating to the develop-
ment of affordable housing for rental by
extremely low-income families in the State;
and
(ii) 25 percent to eligible entities for
eligible activities relating to the develop-
ment of affordable housing for rental by
low-income families in the State, or for
homeownership assistance for low-income
families in the State.
845
HR 1990 IH
(B) ALLOCATION PLAN.—Each State shall,
after giving notice to the public, an opportunity
for public comment, and consideration of public
comments received, establish an allocation plan
for the distribution of assistance under this
paragraph, which plan shall be submitted to the
Secretary and shall be made available to the
public by the State, and which shall include—
(i) application requirements for eligi-
ble entities seeking to receive assistance
under this paragraph, including a require-
ment that each application include—
(I) a certification by the appli-
cant that any housing developed with
assistance under this paragraph will
remain affordable for extremely low-
income families or low-income fami-
lies, as applicable, for not less than 40
years;
(II) a certification by the appli-
cant that the tenant contribution to-
wards rent for a family that resides in
a unit developed with assistance under
this paragraph will not exceed 30 per-
846
HR 1990 IH
cent of the adjusted income of that
family; and
(III) a certification by the appli-
cant that the owner of a project in
which any housing developed with as-
sistance under this paragraph is lo-
cated will make a percentage of units
in the project available to families as-
sisted under the voucher program
under section 8(o) of the United
States Housing Act of 1937 (42
U.S.C. 1437f(o)) on the same basis as
other families eligible for the housing
(except that only the expected share
of rent of the voucher holder shall be
considered), which percentage shall
not be less than the percentage of the
total cost of developing or rehabili-
tating the project that is funded with
assistance under this paragraph; and
(ii) factors for consideration in select-
ing among applicants that meet the appli-
cation requirements under clause (i), which
factors shall give preference to applicants
based on—
847
HR 1990 IH
(I) the amount of assistance for
the eligible activities leveraged by the
applicant from private and other non-
Federal sources, including assistance
made available under section 8 of the
United States Housing Act of 1937
(42 U.S.C. 1437f) that is devoted to
the project in which the housing to be
developed with assistance under this
paragraph is located;
(II) the extent of local assistance
that will be provided in carrying out
the eligible activities, including—
(aa) 
financial 
assistance;
and
(bb) the extent to which the
applicant has worked with the
unit of local government in which
the housing will be located to ad-
dress issues of siting and exclu-
sionary zoning or other policies
that are barriers to affordable
housing;
848
HR 1990 IH
(III) the degree to which the de-
velopment in which the housing will
be located is mixed-income;
(IV) whether the housing will be
located in a census tract in which the
poverty rate is less than 20 percent;
(V) whether the housing will be
located in a community undergoing
revitalization;
(VI) the extent of employment
and other opportunities for low-in-
come families in the area in which the
housing will be located; and
(VII) the extent to which the ap-
plicant demonstrates the ability to
maintain units as affordable for ex-
tremely low-income or low-income
families, as applicable, through the
use of assistance made available under
this paragraph, assistance leveraged
from non-Federal sources, assistance
made available under section 8 of the
United States Housing Act of 1937
(42 U.S.C. 1437f), State or local as-
sistance, programs to increase tenant
849
HR 1990 IH
income, cross-subsidization, and any
other resources.
(C) FORMS OF ASSISTANCE.—
(i) IN GENERAL.—Assistance distrib-
uted under this paragraph may be in the
form of capital grants, non-interest bearing
or low-interest loans or advances, deferred
payment loans, guarantees, and any other
forms of assistance approved by the Sec-
retary.
(ii) REPAYMENTS.—If a State awards
assistance under this paragraph in the
form of a loan or other mechanism by
which funds are later repaid to the State,
any repayments received by the State shall
be distributed by the State in accordance
with the allocation plan described in sub-
paragraph (B) during the following fiscal
year.
(D) COORDINATION WITH OTHER ASSIST-
ANCE.—In distributing assistance under this
paragraph, each State shall, to the maximum
extent practicable, coordinate the distribution
with the provision of other affordable housing
assistance by the State, including—
850
HR 1990 IH
(i) housing credit dollar amounts allo-
cated by the State under section 42(h) of
the Internal Revenue Code of 1986;
(ii) assistance made available under
the HOME Investment Partnerships Act
(42 U.S.C. 12721 et seq.) or the commu-
nity development block grant program; and
(iii) private activity bonds.
(d) NATIONAL COMPETITION.—
(1) IN
GENERAL.—From the amount made
available for each fiscal year under subsection
(b)(2), the Secretary shall award grants on a com-
petitive basis to eligible intermediaries, which grants
shall be used in accordance with paragraph (3) of
this subsection.
(2) APPLICATION REQUIREMENTS AND SELEC-
TION CRITERIA.—The Secretary, by regulation, shall
establish application requirements and selection cri-
teria for the award of competitive grants to eligible
intermediaries under this subsection, which criteria
shall include—
(A) the ability of the eligible intermediary
to meet housing needs of low-income families on
a national or regional scope;
851
HR 1990 IH
(B) the capacity of the eligible inter-
mediary to use the grant award in accordance
with paragraph (3), based on the past perform-
ance and management of the applicant; and
(C) the extent to which the eligible inter-
mediary has leveraged funding from private and
other non-Federal sources for the eligible activi-
ties.
(3) USE OF GRANT AWARD.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), of the amount of a grant
made available under this subsection, an eligible
intermediary shall ensure that—
(i) 75 percent shall be used for eligi-
ble activities relating to the development of
affordable housing for rental by extremely
low-income families; and
(ii) 25 percent shall be used for eligi-
ble activities relating to the development of
affordable housing for rental by low-income
families, or for homeownership assistance
for low-income families.
(B) EXCEPTION.—
(i) IN
GENERAL.—If a grant made
available under this subsection is used for
852
HR 1990 IH
a project described in clause (ii), an eligi-
ble intermediary may use that amount for
eligible activities relating to the develop-
ment of housing for rental by families
whose incomes are less than 60 percent of
the area median income, and for home-
ownership activities for families whose in-
comes are less than 80 percent of area me-
dian income.
(ii) PROJECT
CONTRIBUTING
TO
A
CONCERTED
COMMUNITY
REVITALIZATION
PLAN.—A project is described in this
clause if—
(I) it is located in a community
undergoing 
concerted 
revitalization
and is contributing to a community
revitalization plan; and
(II) it is located in a census tract
in which—
(aa) the median household
income is less than 60 percent of
the area median income; or
(bb) the rate of poverty is
greater than 20 percent.
853
HR 1990 IH
(C) PLAN
OF
USE.—Each eligible inter-
mediary that receives a grant under this sub-
section shall establish a plan for the use or dis-
tribution of the amount made available under
the grant, which plan shall be submitted to the
Secretary and shall include information relating
to the manner in which the eligible intermediary
will either use or distribute that amount,
including—
(i) a certification that assistance
under this subsection will be used to sup-
plement assistance leveraged from private
and other non-Federal sources, including
assistance made available under section 8
of the United States Housing Act of 1937
(42 U.S.C. 1437f) that is devoted to the
project in which the housing to be devel-
oped is located;
(ii) a certification that local assistance
will be provided in carrying out the eligible
activities, which may include—
(I) financial assistance; and
(II) a good faith effort to work
with the unit of local government in
which the housing will be located to
854
HR 1990 IH
address issues of siting and exclu-
sionary zoning or other policies that
are barriers to affordable housing;
(iii) a certification that any housing
developed with assistance under this sub-
section will remain affordable for extremely
low-income families or low-income families,
as applicable, for not less than 40 years;
(iv) a certification that any housing
developed by the applicant with assistance
under this subsection will be located—
(I) in a mixed-income develop-
ment in a census tract having a pov-
erty rate of not more than 20 percent,
and near employment and other op-
portunities for low-income families; or
(II) in a community undergoing
revitalization;
(v) a certification that the tenant con-
tribution toward rent for a family residing
in a unit developed with assistance under
this paragraph will not exceed 30 percent
of the adjusted income of that family; and
(vi) a certification by the applicant
that the owner of a project in which any
855
HR 1990 IH
housing developed with assistance under
this subsection is located will make a per-
centage of units in the project available to
families assisted under the voucher pro-
gram under section 8(o) of the United
States Housing Act of 1937 (42 U.S.C.
1437f(o)) on the same basis as other fami-
lies eligible for the housing (except that
only the expected share of rent of the
voucher holder shall be considered), which
percentage shall not be less than the per-
centage of the total cost of developing or
rehabilitating the project that is funded
with assistance under this subsection.
(D) FORMS OF ASSISTANCE.—
(i) IN
GENERAL.—An eligible inter-
mediary may distribute the amount made
available under a grant under this sub-
section in the form of capital grants, non-
interest bearing or low-interest loans or
advances, deferred payment loans, guaran-
tees, and other forms of assistance.
(ii) 
REPAYMENTS.—If 
an 
eligible
intermediary awards assistance under this
subsection in the form of a loan or other
856
HR 1990 IH
mechanism by which funds are later repaid
to the eligible intermediary, any repay-
ments received by the eligible intermediary
shall be distributed by the eligible inter-
mediary in accordance with the plan of use
described in subparagraph (C) during the
following fiscal year.
SEC. 7104. REGULATIONS.
Not later than 6 months after the date of enactment
of this Act, the Secretary of Housing and Urban Develop-
ment shall promulgate regulations to carry out this sub-
title.
Subtitle C—Housing Preservation
Matching Grants
SEC. 7201. SHORT TITLE.
This subtitle may be cited as the ‘‘Housing Preserva-
tion Matching Grant Act of 2001’’.
SEC. 7202. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) more than 55,300 affordable housing dwell-
ing units in the United States have been lost
through termination of low income affordability re-
quirements, which usually involves the prepayment
of the outstanding principal balance under the mort-
gage on the project in which such units are located;
857
HR 1990 IH
(2) more than 265,000 affordable housing
dwelling units in the United States are at risk of
prepayment;
(3) the loss of the privately owned, federally as-
sisted affordable housing, which is occurring during
a period when rents for unassisted housing are in-
creasing and few units of additional affordable hous-
ing are being developed, will cause unacceptable
harm on current tenants of affordable housing and
will precipitate a national crisis in the supply of
housing for low-income households;
(4) the demand for affordable housing far ex-
ceeds the supply of affordable housing, as evidenced
by studies in 1998 that found that—
(A) 5,300,000 households (one-seventh of
all renters in the Nation) have worst-case hous-
ing needs; and
(B) the number of families with at least
one full-time worker and having worst-case
housing needs increased from 1991 to 1995 by
265,000 to almost 1,400,000 (a 24 percent in-
crease);
(5) the shortage of affordable housing in the
United States reached a record high in 1995, when
the number of low-income households exceeded the
858
HR 1990 IH
number of low-cost rental dwelling units by
4,400,000;
(6) between 1990 and 1995, the shortage of af-
fordable housing in the United States increased by
1,000,000 dwelling units, as the supply of low-cost
units decreased by 100,000 and the number of low-
income renter households increased by 900,000;
(7) there are nearly 2 low-income renters in the
United States for every low-cost rental dwelling unit;
(8) 2 of every 3 low-income renters receive no
housing assistance, and approximately 2,000,000
low-income households remain on waiting lists for
affordable housing;
(9) the shortage of affordable housing dwelling
units results in low-income households that are not
able to acquire low-cost rental units paying large
proportions of their incomes for rent; and
(10) in 1995, 82 percent of low-income renter
households were paying more than 30 percent of
their incomes for rent and utilities.
(b) PURPOSES.—The purposes of this subtitle are—
(1) to promote the preservation of affordable
housing units by providing matching grants to
States that have developed and funded programs for
the preservation of privately owned housing that is
859
HR 1990 IH
affordable to low-income families and persons and
was produced for such purpose with Federal assist-
ance;
(2) to minimize the involuntary displacement of
tenants who are currently residing in such housing,
many of whom are elderly or disabled persons; and
(3) to continue the partnerships among the
Federal Government, State and local governments,
and the private sector in operating and assisting
housing that is affordable to low-income Americans.
SEC. 7203. DEFINITIONS.
For purposes of this subtitle, the following definitions
shall apply:
(1) LOW-INCOME
AFFORDABILITY
RESTRIC-
TION.—The term ‘‘low-income affordability restric-
tion’’ means, with respect to a housing project, any
limitation imposed by regulation or regulatory agree-
ment on rents for tenants of the project, rent con-
tributions for tenants of the project, or income-eligi-
bility for occupancy in the project.
(2) PROJECT-BASED
ASSISTANCE.—The term
‘‘project-based assistance’’ has the same meaning as
in section 16(c) of the United States Housing Act
of 1937 (42 U.S.C. 1437n(c)), except that the term
860
HR 1990 IH
includes assistance under any successor program to
any program referred to in that section.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
(4) STATE.—The term ‘‘State’’ means each of
the several States of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, and
any other territory or possession of the United
States.
SEC. 7204. AUTHORITY.
The Secretary shall, to the extent that amounts are
made available pursuant to section 7211, make grants
under this subtitle to States for low-income housing pres-
ervation.
SEC. 7205. APPLICATIONS.
(a) IN GENERAL.—Each State that seeks a grant
under this subtitle shall submit an application to the Sec-
retary (through an appropriate State agency) at such
time, in such manner, and accompanied by such informa-
tion as the Secretary may reasonably require.
(b) CONTENTS.—Each application submitted pursu-
ant to subsection (a) shall contain any information and
certifications necessary for the Secretary to determine
861
HR 1990 IH
whether the State is eligible to receive a grant under this
subtitle.
SEC. 7206. USE OF GRANTS.
(a) IN GENERAL.—Amounts from grants made under
this subtitle may be used by States only for assistance for
acquisition, preservation incentives, operating costs, and
capital expenditures for a housing project that meets the
requirements of subsection (b), (c), or (d).
(b) PROJECTS WITH HUD-INSURED MORTGAGES.—
A project meets the requirements of this subsection only
if—
(1) the project is financed by a loan or mort-
gage that is—
(A) insured or held by the Secretary under
section 221(d)(3) of the National Housing Act
(12 U.S.C. 1715l(d)(3)) and the project is re-
ceiving loan management assistance under sec-
tion 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f) due to a conversion
from section 101 of the Housing and Urban
Development Act of 1965 (12 U.S.C. 1701s);
(B) insured or held by the Secretary and
bears interest at a rate determined under the
proviso of section 221(d)(5) of the National
Housing Act (12 U.S.C. 1715l(d)(5));
862
HR 1990 IH
(C) insured, assisted, or held by the Sec-
retary or a State or State agency under section
236 of the National Housing Act (12 U.S.C.
1715z–1); or
(D) held by the Secretary and formerly in-
sured under a program referred to in subpara-
graph (A), (B), or (C);
(2) with respect to the mortgage referred to in
paragraph (1), the project is subject to an uncondi-
tional waiver of—
(A) all rights to any prepayment of the
mortgage; and
(B) all rights to any voluntary termination
of the mortgage insurance contract for the
mortgage; and
(3) the owner of the project has entered into
binding commitments (applicable to any subsequent
owner) to extend all low-income affordability restric-
tions for the project, including any such restrictions
imposed because of any contract for project-based
assistance for the project.
(c) PROJECTS WITH SECTION 8 PROJECT-BASED AS-
SISTANCE.—A project meets the requirements of this sub-
section only if—
863
HR 1990 IH
(1) the project is subject to a contract for
project-based assistance; and
(2) the owner of the project has entered into
binding commitments (applicable to any subsequent
owner)—
(A) to extend the project-based assistance
for the maximum period allowable under law
(subject to the availability of amounts for such
purpose); and
(B) to extend any low-income affordability
restrictions applicable to the project in connec-
tion with the project-based assistance.
(d) PROJECTS
PURCHASED
BY
RESIDENTS.—A
project meets the requirements of this subsection only if
the project—
(1) is or was eligible low-income housing (as de-
fined in section 229 of the Low-Income Housing
Preservation and Resident Homeownership Act of
1990 (12 U.S.C. 4119); and
(2) has been purchased by a resident council for
the housing, or is approved by the Secretary for
such purchase, for conversion to homeownership
housing under a resident homeownership program
meeting the requirements of section 226 of the Low-
864
HR 1990 IH
Income Housing Preservation and Resident Home-
ownership Act of 1990 (12 U.S.C. 4116).
(e) 
COMBINATION
OF
ASSISTANCE.—Notwith-
standing subsection (a), any project that is otherwise eligi-
ble for assistance with grant amounts provided under this
subtitle because the project meets the requirements under
subsection (b) or (c), and that also meets the requirements
under paragraph (1) of the other of such subsections, shall
be eligible for assistance under this subtitle only if the
project complies with all of the requirements under such
other subsection.
SEC. 7207. GRANT AMOUNT LIMITATION.
The Secretary shall limit the portion of the aggregate
amount of grants under this subtitle made available for
any fiscal year that may be provided to a single State
based upon the proportion of the need of that State (as
determined by the Secretary) for assistance under this
subtitle to the aggregate need among all States approved
for assistance under this subtitle for that fiscal year.
SEC. 7208. MATCHING REQUIREMENTS.
(a) IN GENERAL.—The Secretary may not make a
grant under this subtitle to any State for any fiscal year
in an amount that exceeds twice the amount that the State
certifies, as the Secretary shall require, that the State will
contribute for such fiscal year, or has contributed since
865
HR 1990 IH
January 1, 2001, from non-Federal sources for the pur-
poses under section 7206(a).
(b) TREATMENT OF PREVIOUS CONTRIBUTIONS.—
Any portion of amounts contributed after January 1,
2001, that are counted for the purpose of meeting the re-
quirement under subsection (a) for a fiscal year may not
be counted for such purpose for any subsequent fiscal
year.
(c) TREATMENT OF TAX CREDITS.—Tax credits pro-
vided under section 42 of the Internal Revenue Code of
1986, and proceeds from the sale of tax-exempt bonds by
any State or local government entity shall not be consid-
ered non-Federal sources for purposes of this section.
SEC. 7209. TREATMENT OF SUBSIDY LAYERING REQUIRE-
MENTS.
Neither section 7208 nor any other provision of this
subtitle may be construed to prevent the use of tax credits
provided under section 42 of the Internal Revenue Code
of 1986, in connection with housing assisted with grant
amounts provided under this subtitle, to the extent that
such use is in accordance with section 102(d) of the De-
partment of Housing and Urban Development Reform Act
of 1989 (42 U.S.C. 3545(d)) and section 911 of the Hous-
ing and Community Development Act of 1992 (42 U.S.C.
3545 note).
866
HR 1990 IH
SEC. 7210. REGULATIONS.
The Secretary may issue regulations to carry out this
subtitle.
SEC. 7211. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grants
under this subtitle such sums as are necessary for each
of fiscal years 2002 through 2006.
TITLE VIII—SAFE START
Subtitle A—Promotion of
Permanency for Children
SEC. 8001. REIMBURSEMENT FOR PREVENTIVE, PROTEC-
TIVE, CRISIS, PERMANENCY, INDEPENDENT
LIVING, AND POST-PERMANENCY SERVICES
AND ACTIVITIES.
(a) IN GENERAL.—Part E of title IV of the Social
Security Act (42 U.S.C. 670 et seq.) is amended by insert-
ing after section 474 the following:
‘‘SEC. 474A. PAYMENTS FOR PREVENTIVE, PROTECTIVE,
CRISIS, PERMANENCY, INDEPENDENT LIV-
ING, AND POST-PERMANENCY SERVICES AND
ACTIVITIES.
‘‘(a) IN GENERAL.—In addition to any other pay-
ments made to a State under this title, for each quarter
beginning after September 30, 2001, the Secretary shall
pay each State which has a plan approved under this part
and that opts to receive payments under this section, a
867
HR 1990 IH
payment, subject to subsection (e), equal to the Federal
medical assistance percentage of the costs of providing the
services and activities described in subsection (b) in order
to ensure that the timelines set forth in section 475(5),
as added by the Adoption and Safe Families Act of 1997,
can be honored and the goals of safety and permanence
for children will be realized.
‘‘(b) SERVICES AND ACTIVITIES DESCRIBED.—The
services and activities described in this subsection are as
follows:
‘‘(1) PREVENTIVE, PROTECTIVE, AND
CRISIS
SERVICES.—
‘‘(A) IN GENERAL.—Preventive, protective,
and crisis services for children and parents who
come to the attention of the State or a local
agency and whose cases are referred for assess-
ment or investigation because of a concern
about the risk of abuse or neglect.
‘‘(B) REQUIREMENTS.—In the case of
services 
other 
than 
investigation 
and
assessment—
‘‘(i) the agency and the parents must
have agreed to the provision of such serv-
ices in the case plan for the family; and
868
HR 1990 IH
‘‘(ii) funding for such services under
this part shall be provided for not more
than 18 months within a 48 month period,
consistent with the exception provided in
subsection (c).
‘‘(2) 
PERMANENCY
SERVICES.—Permanency
services for children and parents to help ensure that
when a child is placed in foster care, prompt deci-
sions can be made about the appropriate perma-
nency plan for the child, but only if the agency and
the parents have agreed to the provision of such
services to the parents in the case plan for the fam-
ily and funding for such services under this part
(other than foster care maintenance payments under
section 472) will be provided for not more than 18
months within a 48 month period, consistent with
the exception provided in subsection (c).
‘‘(3) POST-PERMANENCY SERVICES.—
‘‘(A) 
IN
GENERAL.—Post-permanency
services for children and their parents or other
caregivers when children have been in foster
care funded under this part and are returned to
their birth families, are in adoptive families, or
are placed permanently with a legal guardian or
a fit and willing relative, if the agency and the
869
HR 1990 IH
child’s caregivers have agreed to the provision
of such services in the case plan for the family,
but only to the extent that—
‘‘(i) with respect to such services for
children returned to their birth families,
such services are provided for not more
than 18 months within a 48 month period,
consistent with the exception provided in
subsection (c); and
‘‘(ii) with respect to such services for
children who are adopted from foster care
or placed permanently with a legal guard-
ian or a fit and willing relative, such serv-
ices are provided on an as-needed basis
consistent with the child and family service
plan.
‘‘(4) APPLICATION
TO
CERTAIN
CHIL-
DREN.—With respect to the services described
in paragraph (1), (2), or (3) that are provided
to children who have come to the attention of
the State or a local agency before the date of
enactment of the Leave No Child Behind Act of
2001, the 18-month time limit for such services
for such children shall commence on a date de-
870
HR 1990 IH
termined by the State that is not more than
180 days after such date of enactment.
‘‘(5) INDEPENDENT
LIVING
SERVICES.—Inde-
pendent living services to help children who are like-
ly to remain in foster care until attaining 18 years
of age and children who are former foster care re-
cipients who have not attained 21 years of age make
the transition to self-sufficiency by providing services
such as assistance in obtaining a high school di-
ploma, a General Equivalency Diploma, or post-sec-
ondary education or training, career exploration, vo-
cational training, job placement and retention, train-
ing in daily living skills, budgeting and financial
management skills, substance abuse prevention, pre-
ventive health activities, financial, housing, coun-
seling, personal or emotional support (through inter-
action with dedicated adults), and other appropriate
support services.
‘‘(c) SAFETY EXCEPTION.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
beginning with fiscal year 2003, a State may exempt
up to the number of children and parents receiving
any of the services described in subsection (b) that
equals 20 percent of the number of such children
and parents who received such services during the
871
HR 1990 IH
preceding fiscal year, from the time limits specified
for such services in such subsection in order to help
ensure that children will be served safely and appro-
priately in accordance with their individual needs.
‘‘(2) BIENNIAL REVIEW.—
‘‘(A) EXCEPTED CASES.—A State shall bi-
ennially review the cases excepted under para-
graph (1), in accordance with guidelines devel-
oped by the Secretary, to ensure the continued
appropriateness of the exceptions and to deter-
mine the circumstances under which such ex-
ceptions have been made, and shall report the
findings of the review to the Secretary. Such re-
port shall include a recommendation, if nec-
essary, that the Secretary allow the State to ad-
just the maximum percentage for such excep-
tions to address changed circumstances. A
State may proceed in accordance with the rec-
ommendation unless the Secretary disapproves
the recommendation within 60 days of the re-
ceipt of the recommendation.
‘‘(B) FOSTER CARE CHILDREN.—In addi-
tion to the review required under subparagraph
(A), a State shall biennially review, in accord-
ance with guidelines developed by the Secretary,
872
HR 1990 IH
the cases of children who have remained in fos-
ter care and for which foster care maintenance
payments (as defined in section 474(4)) have
been made for more than 18 months and sub-
mit a report on such review to the Secretary.
Such report shall describe, with respect to each
such child, the child’s age, special needs (if
any), type of placement, and the length of time
that the child has been in foster care.
‘‘(C) REPORT.—Not later than January 1,
2006, and January 1 of every other year there-
after, the Secretary shall submit a report to
Congress on the reviews and recommendations
required under subparagraphs (A) and (B) for
the preceding fiscal year. Such report shall in-
clude a summary of the Secretary’s findings on
the appropriateness of the safety exceptions and
the States’ progress in meeting the needs of the
children who receive services or foster care for
more than 18 months.
‘‘(d) NO PAYMENT FOR SERVICES REIMBURSABLE
UNDER TITLE XIX.—No payments may be made under
this section for any services described in subsection (b)
that the State is reimbursed for under title XIX.
873
HR 1990 IH
‘‘(e) MAINTENANCE OF EFFORT.—A State may not
receive payments under this section unless, for fiscal year
2002 and each fiscal year thereafter, the total State and
local expenditures for services and activities described in
subsection (b) for that fiscal year equals or exceeds the
total of such expenditures for fiscal year 2001.’’.
(b) STATE PLAN AMENDMENT.—Section 471(a) of
such Act (42 U.S.C. 671(a)) is amended—
(1) in paragraph (23)(B), by striking ‘‘and’’ at
the end;
(2) in paragraph (24), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(25) provides that the State shall describe—
‘‘(A) prior to the beginning of a fiscal year,
the types of preventive, protective, crisis, per-
manency, independent living, and post-perma-
nency services that the State expects to be
made available under the plan during that fiscal
year;
‘‘(B) the populations expected to be pro-
vided such services during the fiscal year;
‘‘(C) notwithstanding paragraph (3), the
geographic areas in the State in which the serv-
874
HR 1990 IH
ices are likely to be available during the fiscal
year;
‘‘(D) the role of public and nonprofit pri-
vate agencies and community-based organiza-
tions referred to in section 432(b)(1) in the
planning and decisionmaking regarding which
such services would be provided during the fis-
cal year and how the services to be provided
would promote safety and permanence for chil-
dren; and
‘‘(E) prior to the beginning of the third
fiscal year of implementation of such services,
and prior to the beginning of each fiscal year
thereafter, what the State proposes to do to re-
duce the length of time families need to receive
services from the State agency.’’.
SEC. 8002. CHILD AND FAMILY SERVICE PLAN AND CASE
REVIEWS.
(a) IN GENERAL.—Section 471(a)(16) of the Social
Security Act (42 U.S.C. 671(a)(16)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(16)’’;
(2) by adding ‘‘and’’ after the semicolon; and
(3) by adding at the end the following:
‘‘(B)(i) provides for the development of a child
and family service plan and for case reviews by a cit-
875
HR 1990 IH
izen review board or an administrative review body
no less frequently than once every 6 months for each
child and family member receiving preventive, pro-
tective, crisis, permanency, independent living, or
post-permanency services; and
‘‘(ii) provides that each child and family service
plan developed under clause (i) shall describe the
steps taken to assure the safety of the child, provide
the services that are needed and, where applicable,
have been agreed to by the agency and the parent,
the extent of progress that has been made toward
meeting the service needs of the child and the fam-
ily, and the continuing necessity for and appro-
priateness of the services being provided with respect
to—
‘‘(I) each child, parent, or caregiver who
comes to the attention of the State agency and
whose case is referred for assessment or inves-
tigation because of a concern about the risk of
abuse or neglect, and who receives preventive,
protective, crisis, permanency, independent liv-
ing, or post-permanency services under this
part; and
‘‘(II) each child, parent, or caregiver who
receives post-permanency services under this
876
HR 1990 IH
part when a child is returned to the birth fam-
ily, placed in an adoptive family, or placed per-
manently with a legal guardian or a fit and
willing relative.’’
(b) EFFECTIVE DATE.—The amendments made by
this section take effect on October 1, 2001.
SEC. 8003. KINSHIP GUARDIANSHIP ASSISTANCE PAY-
MENTS FOR CHILDREN.
(a) IN GENERAL.—Part E of title IV of the Social
Security Act (42 U.S.C. 670 et seq.) is amended by insert-
ing after section 472 the following:
‘‘SEC. 472A. KINSHIP GUARDIANSHIP ASSISTANCE PAY-
MENTS FOR CHILDREN.
‘‘(a) IN GENERAL.—Each State with a plan approved
under this part may, at State option, enter into kinship
guardianship assistance agreements to provide kinship
guardianship assistance payments on behalf of children to
grandparents and other relatives who have assumed legal
guardianship (as defined in section 475(7)) of the children
for whom they have cared as foster parents and for whom
they have committed to care for on a permanent basis.
‘‘(b) KINSHIP GUARDIANSHIP ASSISTANCE AGREE-
MENT.—
‘‘(1) IN
GENERAL.—In order to receive pay-
ments under this section, a State shall—
877
HR 1990 IH
‘‘(A) negotiate and enter into a written,
binding, kinship guardianship assistance agree-
ment with the prospective relative guardian of
a child that meets the requirements of this sub-
section; and
‘‘(B) 
provide 
the 
prospective 
relative
guardian with a copy of the agreement.
‘‘(2) MINIMUM
REQUIREMENTS.—The agree-
ment shall specify, at a minimum—
‘‘(A) the amount of, and manner in which,
each kinship guardianship assistance payment
will be provided under the agreement;
‘‘(B) the additional services and assistance
that the child and relative guardian will be eli-
gible for under the agreement;
‘‘(C) the procedure by which the relative
guardian may apply for additional services as
needed, provided the agency and relative guard-
ian agree on the additional services as specified
in the case plan; and
‘‘(D) subject to paragraph (3), that the
State will pay the total cost of nonrecurring ex-
penses associated with obtaining legal guardian-
ship of the child.
878
HR 1990 IH
‘‘(2) INTERSTATE
APPLICATION.—The agree-
ment shall provide—
‘‘(A) that the agreement shall remain in
effect without regard to the State residency of
the kinship guardian; and
‘‘(B) for the protection of the interests of
the child in any case where the kinship guard-
ian and the child move to another State while
the agreement is in effect.
‘‘(3) NO
AFFECT
ON
FEDERAL
REIMBURSE-
MENT.—Nothing in paragraph (1)(D) shall be con-
strued as affecting the ability of the State to obtain
reimbursement from the Federal Government for
costs described in that paragraph.
‘‘(c) KINSHIP
GUARDIANSHIP
ASSISTANCE
PAY-
MENT.—
‘‘(1) IN GENERAL.—The kinship guardianship
assistance payment shall be based on consideration
of the needs of the relative guardian and of the child
and shall be at least equal to the amount of the fos-
ter care maintenance payment for which the child
would have been eligible if the child remained in fos-
ter care. The payment may be readjusted periodi-
cally based on relevant changes in such needs.
‘‘(2) LIMITATION.—
879
HR 1990 IH
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), no kinship guardianship as-
sistance payment may be made to a relative
guardian for any child who has attained age 18.
‘‘(B) EXCEPTIONS.—A kinship guardian-
ship assistance payment may be made to a rel-
ative guardian with respect to a child who—
‘‘(i) is a full-time student in a sec-
ondary school or in the equivalent level of
a vocational or technical training program
and has not attained age 19; or
‘‘(ii) with respect to a child who the
State determines has a mental or physical
disability that warrants the continuation of
assistance to age 21.
‘‘(d) CHILD’S ELIGIBILITY FOR A KINSHIP GUARD-
IANSHIP ASSISTANCE PAYMENT.—
‘‘(1) IN GENERAL.—A child is eligible for a kin-
ship guardianship assistance payment under this
section if the State agency determines the following:
‘‘(A) The child has been—
‘‘(i) removed from his or her home
pursuant to a voluntary placement agree-
ment or as a result of a judicial determina-
tion to the effect that continuation in the
880
HR 1990 IH
home would be contrary to the welfare of
the child; and
‘‘(ii) under the care of the State agen-
cy for the 12-month period ending on the
date of such agency determination.
‘‘(B) Being returned home or adopted are
not appropriate permanency options for the
child.
‘‘(C) The child demonstrates a strong at-
tachment to the prospective relative guardian
and the relative guardian has a strong commit-
ment to caring permanently for the child.
‘‘(D) With respect to a child who has at-
tained age 14, the child has been consulted re-
garding the kinship guardianship arrangement.
‘‘(2) TREATMENT OF SIBLINGS.—With respect
to a child who is described in paragraph (1) whose
sibling or siblings are not so described—
‘‘(A) the child and any sibling of the child
may be placed in the same kinship guardianship
arrangement if the State agency and the rel-
ative agree on the appropriateness of the ar-
rangement for the siblings; and
881
HR 1990 IH
‘‘(B) kinship guardianship assistance pay-
ments may be paid for the child and each sib-
ling so placed.’’.
(b) CONFORMING AMENDMENTS.—
(1) 
STATE
PLAN
REQUIREMENT.—Section
471(a)(20) of such Act (42 U.S.C. 671(a)(20) is
amended by striking ‘‘before the foster or adoptive
parent may be finally approved for placement of a
child on whose behalf foster care maintenance pay-
ments or adoption assistance payments’’ and insert-
ing ‘‘or relative guardian before the foster or adop-
tive parent or relative guardian may be finally ap-
proved for placement of a child on whose behalf fos-
ter care maintenance payments, adoption assistance
payments, or kinship guardianship assistance pay-
ments’’.
(2) DEFINITIONS.—Section 475(1) of such Act
(42 U.S.C. 675(1)) is amended by adding at the end
the following:
‘‘(F) In the case of a child with respect to
whom the permanency plan is placement with a
relative and receipt of kinship guardianship as-
sistance payments under section 472A, a de-
scription of—
882
HR 1990 IH
‘‘(i) the steps that the agency has
taken to determine that it is not appro-
priate for the child to be returned home or
adopted;
‘‘(ii) the reasons why a permanent
placement with a fit and willing relative
through a kinship guardianship assistance
arrangement is in the child’s best interests;
‘‘(iii) the ways in which the child
meets the eligibility requirements for a kin-
ship guardianship assistance payment;
‘‘(iv) the efforts the agency has made
to discuss adoption by the child’s relative
foster parent as a more permanent alter-
native to legal guardianship and, in the
case of a relative foster parent who has
chosen not to pursue adoption, documenta-
tion of the reasons why; and
‘‘(v) the efforts made by the State
agency to secure the consent of the child’s
parent or parents to the kinship guardian-
ship assistance arrangement, or the rea-
sons why such efforts were not made.’’.
883
HR 1990 IH
SEC. 8004. ELIMINATION OF FINANCIAL ELIGIBILITY RE-
QUIREMENT FOR FOSTER CARE MAINTE-
NANCE AND ADOPTION ASSISTANCE PAY-
MENTS.
(a) FOSTER CARE MAINTENANCE PAYMENTS.—Sec-
tion 472(a) of the Social Security Act (42 U.S.C. 672(a))
is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘would have met the requirements of sec-
tion 406(a) (as so in effect) or of section 407 (as
such sections were in effect on July 16, 1996) but
for his removal from the home of a relative (speci-
fied in section 406(a)),’’ and inserting ‘‘has been re-
moved from his or her home’’;
(2) in paragraph (2), by adding ‘‘and’’ at the
end;
(3) in paragraph (3), by striking ‘‘; and’’ and
inserting a period;
(4) by striking paragraph (4); and
(5) by striking the last 2 sentences of that sec-
tion.
(b) ADOPTION
ASSISTANCE
PAYMENTS.—Section
473(a)(2) of the Social Security Act (42 U.S.C. 673(a)(2))
is amended—
(1) in subparagraph (A)(i)—
884
HR 1990 IH
(A) by striking ‘‘met the requirements of
section 406(a) or section 407 (as such sections
were in effect on July 16, 1996) or would have
met such requirements except for his removal
from the home of a relative (specified in section
406(a) (as so in effect))’’ and inserting ‘‘has
been removed from his or her home’’; and
(B) by striking ‘‘(or 403 (as such section
was in effect on July 16, 1996))’’;
(2) in subparagraph (A)(iii), by adding ‘‘and’’
at the end;
(3) by striking subparagraph (B);
(4) by redesignating subparagraph (C) as sub-
paragraph (B); and
(5) by striking ‘‘The last sentence of section
472(a)’’ and all that follows and inserting ‘‘Any
child who meets the requirements of subparagraph
(B), who was determined eligible for adoption assist-
ance payments under this part with respect to a
prior adoption, who is available for adoption because
the prior adoption has been dissolved and the paren-
tal rights of the adoptive parents have been termi-
nated or because the child’s adoptive parents have
died, and who fails to meet the requirements of sub-
paragraph (A) but would meet such requirements if
885
HR 1990 IH
the child were treated as if the child were in the
same circumstances the child was in the last time
the child was determined eligible for adoption assist-
ance payments under this part and the prior adop-
tion were treated as never having occurred, shall be
treated as meeting the requirements of this para-
graph for purposes of paragraph (1)(B)(ii).’’.
SEC. 8005. ESTABLISHMENT OF UNIFORM FEDERAL MATCH-
ING RATE.
(a) IN GENERAL.—Section 474(a) of the Social Secu-
rity Act (42 U.S.C. 674(a)) is amended—
(1) in the matter preceding paragraph (1)—
(A) by striking ‘‘of—’’ and inserting ‘‘of
the following:’’;
(B) by striking ‘‘(1) an amount’’ and all
that follows through the end of paragraph (3)
and inserting the following:
‘‘(1) The Federal medical assistance percentage
(as defined in section 1905(b)) of each of the fol-
lowing:
‘‘(A) The total amount expended during
such quarter as foster care maintenance pay-
ments under section 472 for children in foster
family homes or child-care institutions.
886
HR 1990 IH
‘‘(B) The total amount expended during
such quarter as kinship guardianship assistance
payments under section 472A for children with
a kinship guardianship assistance agreement.
‘‘(C) The total amount expended during
such quarter as adoption assistance payments
under section 473 pursuant to adoption assist-
ance agreements.
‘‘(D) Subject to paragraph (3), the total
amount expended during such quarter for pre-
ventive, protective, crisis, permanency, inde-
pendent living, and post-permanency services
and activities under section 474A.
‘‘(E) The total amounts expended during
such quarter as found necessary by the Sec-
retary for the provision of child placement serv-
ices and for the proper and efficient administra-
tion of the State plan.
‘‘(F) The total amounts expended during
such quarter as found necessary by the Sec-
retary for the training of—
‘‘(i) personnel employed or preparing for
employment by the State agency or by the local
agency administering the plan in the political
subdivision (including short- and long-term
887
HR 1990 IH
training at educational institutions through
grants to such institutions or by direct financial
assistance to students enrolled in such institu-
tions);
‘‘(ii) current or prospective foster or adop-
tive parents and the members of the staff of
State-licensed or State-approved child care in-
stitutions providing care to foster and adopted
children receiving assistance under this part, in
ways that increase the ability of such current
or prospective parents, staff members, and in-
stitutions to provide support and assistance to
foster and adopted children, whether incurred
directly by the State or by contract but only
for such expenditures (including travel and per
diem expenses) that are incurred for short-term
training;
‘‘(iii) the staff of private State licensed or
State approved child welfare agencies that pro-
vide preventive, crisis, protective permanency,
post-permanency, and independent living serv-
ices or care to foster and adopted children and
children with relative guardians who are eligible
for assistance under this part (including joint
training and cross training of such staff);
888
HR 1990 IH
‘‘(iv) court staff, including judges, judicial
personnel, law enforcement personnel, agency
attorneys, attorneys representing parents in
proceedings conducted by or under the super-
vision of an abuse or neglect court, attorneys
representing children in such proceedings,
guardian ad litems, volunteers who participate
in court-appointed special advocate (CASA)
programs, and citizen review board members
when under court auspices to keep children safe
and provide permanent families for children,
but only to the extent that any training offered
to judges or any judicial personnel is offered by,
or under contract with, the State or local agen-
cy in collaboration with the judicial conference
or other appropriate judicial governing body op-
erating in the State; and
‘‘(v) staff employed by State, local, or pri-
vate nonprofit substance abuse prevention and
treatment agencies, mental health providers, do-
mestic violence prevention and treatment pro-
viders, health agencies, child care agencies,
schools, and community service agencies that
are collaborating with the State or local agency
administering the State plan under this part to
889
HR 1990 IH
keep children safe and provide permanent fami-
lies for children, including adoptive families.
‘‘(G) The total amounts expended during
such quarter as found necessary by the Sec-
retary for the planning, design, development,
installation, or operation of statewide mecha-
nized data collection and information retrieval
systems (including expenditures for hardware
components for such systems) but only to the
extent that such systems—
‘‘(i) meet the requirements imposed
by regulations promulgated pursuant to
section 479(b)(2);
‘‘(ii) to the extent practicable, are ca-
pable of interfacing with the State data
collection system that collects information
relating to child abuse and neglect; and
‘‘(iii) are determined by the Secretary
to be likely to provide more efficient, eco-
nomical, and effective administration of
the programs carried out under a State
plan approved under part B or this part.’’;
(2) in paragraph (4)—
(A) by striking ‘‘the lesser’’ and inserting
‘‘The lesser’’; and
890
HR 1990 IH
(B) by redesignating such paragraph as
paragraph (2); and
(3) by adding at the end the following new
paragraph:
‘‘(3) With respect to a State that elects to pro-
vide preventive, protective, crisis, permanency, inde-
pendent living, and post-permanency services and ac-
tivities under section 474A, that begins the process
for accreditation of the State agency administering
the program under this part within 3 years after the
date of enactment of the Leave No Child Behind Act
of 2001, and that has such State agency accredited
by a nationally recognized accrediting agency ap-
proved by the Secretary to provide such accredita-
tion, the Federal medical assistance percentage for
the State shall be increased by 1 percentage point a
year for each of the 4 consecutive years in which the
agency is so accredited for purposes of making the
payments described in paragraph (1)(D), beginning
with the first fiscal year quarter that begins after
the State submits to the Secretary evidence of such
accreditation.’’.
(b) CONFORMING AMENDMENTS.—
891
HR 1990 IH
(1) Section 473(a)(6)(B) of such Act (42
U.S.C. 673(a)(6)(B)) is amended by striking
‘‘474(a)(3)(E)’’ and inserting ‘‘474(a)(1)(E)’’.
(2) Section 477(h) of such Act (42 U.S.C.
677(h)) is amended by striking ‘‘474(a)(4)’’ and in-
serting ‘‘474(a)(2)’’.
SEC. 8006. ELIMINATION OF DISINCENTIVE FOR FOSTER
PARENTS TO ADOPT CHILDREN WITH SPE-
CIAL NEEDS WHO HAVE BEEN IN THEIR FOS-
TER CARE.
The last sentence of section 473(a)(3) of the Social
Security Act (42 U.S.C 673(a)(3)) is amended to read as
follows: ‘‘However, an adoptive parent shall be eligible to
receive an adoption assistance payment under clause (ii)
of paragraph (1)(B) that is at least equal to the foster
care maintenance payment which would have been paid
during the period if the child with respect to whom the
adoption assistance payment is made had been in a foster
family home.’’.
SEC. 8007. EXTENSION OF ADOPTION ASSISTANCE PAY-
MENTS.
Section 473(a)(4) of the Social Security Act (42
U.S.C. 673(a)(4)) is amended by striking ‘‘(or,’’ and in-
serting ‘‘(or, in the case of a child who is a full-time stu-
dent in a secondary school or in the equivalent educational
892
HR 1990 IH
level of a vocational or technical training program, the age
of nineteen, or’’.
SEC. 8008. REIMBURSEMENT FOR ROOM AND BOARD IN
FOSTER FAMILY HOMES, CHILD CARE INSTI-
TUTIONS, OR SUPERVISED LIVING ARRANGE-
MENTS FOR YOUNG PEOPLE AGING OUT OF
FOSTER CARE.
Section 472 of the Social Security Act (42 U.S.C.
672) is amended by adding at the end the following:
‘‘(i)(1) Notwithstanding any other provision of this
part, a State may make foster care maintenance payments
(as defined in section 475(4)) under this section on behalf
of eligible individuals described in paragraph (2) for reim-
bursement of room and board expenses incurred for such
individuals in a foster family home, child care institution,
or other supervised living arrangement as approved by the
State agency, in order to assist such individuals to leave
foster care and transition to self-sufficiency.
‘‘(2) An eligible individual described in this para-
graph is an individual who—
‘‘(A) was in foster care on the date that the in-
dividual attained age 17 and had been in foster care
for at least 1 year prior to that date;
‘‘(B) has not attained age 22;
893
HR 1990 IH
‘‘(C) is in the process of completing secondary
education, enrolled in an institution that provides
postsecondary education or vocational training, or is
employed for at least 80 hours per month;
‘‘(D) is participating in independent living ac-
tivities of the type that may be supported under the
John H. Chafee Foster Care Independence Program
under section 477; and
‘‘(E) has a case plan that includes a specific
plan for how the individual will achieve independent
living and that provides for the individual to reside
in a setting that promotes personal responsibility
and encourages self-sufficiency.
‘‘(3)(A) A State may not receive payments under sec-
tion 474(a)(1)(A) for expenditures under this subsection
unless with respect to fiscal year 2002 and each fiscal year
thereafter, the total Federal, State, and local expenditures
for reimbursements described in paragraph (1) in the
State (or for related independent living services) equals
or exceeds the total of such expenditures for fiscal year
2001.
‘‘(B) The amount of total Federal, State, and local
expenditures required under subparagraph (A) to be main-
tained for a fiscal year may be reduced appropriately if
the total Federal expenditures for that fiscal year are less
894
HR 1990 IH
than such the amount of such expenditures for fiscal year
2001.
‘‘(4) With respect to a fiscal year, a State that makes
foster care maintenance payments under this subsection
shall submit to the Secretary an annual report that in-
cludes the following:
‘‘(A) The number of eligible individuals de-
scribed in paragraph (2) who received foster care
maintenance payments under this subsection and the
nature of the settings in which such individuals were
housed.
‘‘(B) A description of the steps being under-
taken in the State to promote housing opportunities
for individuals transitioning from foster care after
attaining age 18 and for individuals that have al-
ready transitioned out of foster care as a result of
age.
‘‘(C) Recommendations regarding the types of
Federal assistance that would assist the State to
better meet the housing need of the individuals de-
scribed in subparagraph (B).’’.
895
HR 1990 IH
SEC. 8009. FUNDING FOR VOUCHERS TO ASSIST YOUNG
PEOPLE AGING OUT OF FOSTER CARE MAKE
THE TRANSITION TO SELF-SUFFICIENCY.
Section 477 of the Social Security Act (42 U.S.C.
677) is amended by adding at the end the following:
‘‘(i) VOUCHERS TO ASSIST
THE TRANSITION
TO
SELF-SUFFICIENCY.—
‘‘(1) GRANTS TO STATES.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this part, and in addition to
payments made to a State under section
474(a)(2), the Secretary shall make grants to
States for vouchers to help eligible individuals
described in paragraph (2) make the transition
to self-sufficiency.
‘‘(B) APPLICATION.—A State that desires
to receive a grant under this subsection shall
submit an application to the Secretary at such
time, and in such form and manner as the Sec-
retary shall require.
‘‘(C) COMPETITIVE
GRANTS.—The Sec-
retary shall award grants to States under this
subsection on a competitive basis, based on cri-
teria established by the Secretary.
896
HR 1990 IH
‘‘(2) ELIGIBLE INDIVIDUALS DESCRIBED.—An
eligible individual described in this paragraph is an
individual who—
‘‘(A) is described in section 472(i)(2); or
‘‘(B) has been adopted from foster care, or
placed with a relative with a kinship guardian-
ship assistance agreement, on or after the indi-
vidual’s 16th birthday and has not yet attained
age 22.
‘‘(3) VOUCHER
REQUIREMENTS.—A State re-
ceiving a grant under this subsection shall use the
funds provided under the grant to provide a voucher
of up to $5000 per year for the costs incurred by
an eligible individual described in paragraph (2) who
applies for the voucher of obtaining—
‘‘(A) a General Equivalency Diploma (and
related supports provided to assist an eligible
individual in obtaining such a degree);
‘‘(B) a post-secondary education; or
‘‘(C) vocational training.
‘‘(4) MATCHING REQUIREMENT.—A State may
not receive a grant under this subsection unless the
State agrees to provide $1 for every $3 awarded
under the grant.