214
cant physical or mental impairment or 
combination of impairments that re-
quire substantial ongoing care; 
‘‘(II) the adult recipient or minor 
child head of household providing such 
care is the most appropriate means, as 
determined by the State, by which such 
care can be provided to the child or 
adult dependent for care; 
‘‘(III) for each month in which 
this subparagraph applies to the adult 
recipient or minor child head of house-
hold, the adult recipient or minor child 
head of household is in compliance 
with the requirements of the family’s 
self-sufficiency plan; and 
‘‘(IV) the recipient is unable to 
participate fully in work activities, 
after consideration of whether there are 
supports accessible and available to the 
family for the care of the child or adult 
dependent for care. 
‘‘(ii) TOTAL NUMBER OF HOURS LIM-
ITED TO BEING COUNTED AS 1 FAMILY.—In 
no event may a family that includes a re-
215
cipient to which clause (i) applies be count-
ed as more than 1 family for purposes of 
determining monthly participation rates 
under subsection (b)(1)(B)(i). 
‘‘(iii) STATE REQUIREMENTS.—In the 
case of a recipient to which clause (i) ap-
plies, the State shall—
‘‘(I) conduct regular, periodic 
evaluations of the family of the adult 
recipient or minor child head of house-
hold; and 
‘‘(II) include as part of the fam-
ily’s self-sufficiency plan, regular up-
dates on what special needs of the child 
or the adult dependent for care, includ-
ing substantial ongoing care, could be 
accommodated either by individuals 
other than the adult recipient or minor 
child head of household outside of the 
home. 
‘‘(iv) RULE OF CONSTRUCTION.—Noth-
ing in this subparagraph shall be construed 
as prohibiting a State from including in a 
recipient’s self-sufficiency plan a require-
216
ment to engage in work activities described 
in subsection (d). 
‘‘(F) OPTIONAL MODIFICATION OF WORK RE-
QUIREMENTS
FOR
RECIPIENTS
RESIDING
IN 
AREAS OF INDIAN COUNTRY OR AN ALASKAN NA-
TIVE VILLAGE WITH HIGH JOBLESSNESS.—If a 
State has included in the State plan a descrip-
tion of the State’s policies in areas of Indian 
country or an Alaskan Native village described 
in section 408(a)(7)(D), the State may define the 
activities that the State will treat as being work 
activities described in subsection (d) that a re-
cipient who resides in such an area and who is 
participating in such activities in accordance 
with a self-sufficiency plan under section 408(b) 
may engage in for purposes of satisfying work 
requirements under the State program and for 
purposes of determining monthly participation 
rates under subsection (b)(1)(B)(i).’’. 
(2) CONFORMING AMENDMENT RELATING TO AU-
THORITY TO DEEM SINGLE PARENT OF A CHILD OR 
ADULT DEPENDENT FOR CARE WITH A PHYSICAL OR 
MENTAL IMPAIRMENT DEEMED TO BE MEETING ALL 
OR PART OF A FAMILY’S WORK PARTICIPATION RE-
QUIREMENTS
FOR
A
MONTH.—Section 402(a)(1)(B)
217
(42 U.S.C. 602(a)(1)(B)), as amended by section 
101(a)(1)(B), is amended by adding at the end the 
following: 
‘‘(vi) The document shall set forth the 
criteria for applying section 407(c)(6)(E) to 
an adult recipient or minor child head of 
household who is the only parent or care-
taker relative for a child or adult dependent 
for care.’’. 
SEC. 110. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUF-
FICIENCY PLAN REQUIREMENTS; OTHER PRO-
HIBITIONS AND REQUIREMENTS. 
(a) UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUF-
FICIENCY PLAN REQUIREMENTS.—
(1) MODIFICATION
OF
STATE
PLAN
REQUIRE-
MENTS.—Section 
402(a)(1)(A) 
(42 
U.S.C. 
602(a)(1)(A)) is amended by striking clauses (ii) and 
(iii) and inserting the following: 
‘‘(ii) Require a parent or caretaker re-
ceiving assistance under the program to en-
gage in work or alternative self-sufficiency 
activities (as defined by the State), con-
sistent with section 407(e)(2). 
‘‘(iii) Require families receiving assist-
ance under the program to engage in activi-
218
ties in accordance with family self-suffi-
ciency plans developed pursuant to section 
408(b).’’. 
(2) ESTABLISHMENT
OF
FAMILY
SELF-SUFFI-
CIENCY PLANS.—
(A) IN
GENERAL.—Section 408(b) (42 
U.S.C. 608(b)) is amended to read as follows: 
‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.—
‘‘(1) IN GENERAL.—A State to which a grant is 
made under section 403 shall—
‘‘(A) make an initial screening and assess-
ment, in the manner deemed appropriate by the 
State, of the skills, prior work experience, edu-
cation obtained, work readiness, barriers to 
work, and employability of each adult or minor 
child head of household recipient of assistance in 
the family who—
‘‘(i) has attained age 18; or 
‘‘(ii) has not completed high school or 
obtained a certificate of high school equiva-
lency and is not attending secondary school; 
‘‘(B) assess, in the manner deemed appro-
priate by the State, the work support and other 
assistance and family support services for which 
each family receiving assistance is eligible; and
219
‘‘(C) assess, in the manner deemed appro-
priate by the State, the well-being of the children 
in the family, and, where appropriate, activities 
or resources to improve the well-being of the chil-
dren. 
‘‘(2) CONTENTS OF PLANS.—The State shall, in 
the manner deemed appropriate by the State—
‘‘(A) establish for each family that includes 
an individual described in paragraph (1)(A), in 
consultation as the State deems appropriate with 
the individual, a self-sufficiency plan that—
‘‘(i) specifies activities described in the 
State plan submitted pursuant to section 
402, including work activities described in 
paragraph (1), (2), (3), (4), (5), (6), (7), 
(8), or (12) of section 407(d), as appro-
priate; 
‘‘(ii) is designed to assist the family in 
achieving their maximum degree of self-suf-
ficiency, and 
‘‘(iii) provides for the ongoing partici-
pation of the individual in the activities 
specified in the plan;
220
‘‘(B) requires, at a minimum, each such in-
dividual to participate in activities in accord-
ance with the self-sufficiency plan; 
‘‘(C) sets forth the appropriate supportive 
services the State intends to provide for the fam-
ily; 
‘‘(D) establishes for the family a plan that 
addresses the issue of child well-being and, when 
appropriate, adolescent well-being, and that may 
include services such as domestic violence coun-
seling, mental health referrals, and parenting 
courses; and 
‘‘(E) includes a section designed to assist 
the family by informing the family, in such 
manner as deemed appropriate by the State, of 
the work support and other assistance for which 
the family may be eligible including (but not 
limited to)—
‘‘(i) the food stamp program estab-
lished under the Food Stamp Act of 1977 (7 
U.S.C. 2011 et seq.); 
‘‘(ii) the medicaid program funded 
under title XIX; 
‘‘(iii) the State children’s health insur-
ance program funded under title XXI;
221
‘‘(iv) Federal or State funded child 
care, including child care funded under the 
Child Care Development Block Grant Act of 
1990 (42 U.S.C. 9858 et seq.) and funds 
made available under this title or title XX; 
‘‘(v) the earned income tax credit 
under section 32 of the Internal Revenue 
Code of 1986; 
‘‘(vi) the low-income home energy as-
sistance program established under the Low-
Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8621 et seq.); 
‘‘(vii) the special supplemental nutri-
tion program for women, infants, and chil-
dren established under section 17 of the 
Child Nutrition Act of 1966 (42 U.S.C. 
1786); 
‘‘(viii) programs conducted under the 
Workforce Investment Act of 1998 (29 
U.S.C. 2801 et seq.); and 
‘‘(ix) low-income housing assistance 
programs. 
‘‘(3) REVIEW.—
‘‘(A) REGULAR REVIEW.—A State to which 
a grant is made under section 403 shall—
222
‘‘(i) monitor the participation of each 
adult recipient or minor child head of 
household in the activities specified in the 
self-sufficiency plan, and regularly review 
the progress of the family toward self-suffi-
ciency; and 
‘‘(ii) upon such a review, revise the 
plan and activities required under the plan 
as the State deems appropriate in consulta-
tion with the family. 
‘‘(B) PRIOR TO THE IMPOSITION OF A SANC-
TION.—Prior to imposing a sanction against an 
adult recipient, minor child head of household, 
or a family for failure to comply with a require-
ment of the self-sufficiency plan or the State pro-
gram funded under this part, the State shall, to 
the extent determined appropriate by the State—
‘‘(i) review the self-sufficiency plan; 
and 
‘‘(ii) make a good faith effort (as de-
fined by the State) to consult with the fam-
ily. 
‘‘(4) STATE
DISCRETION.—A State shall have 
sole discretion, consistent with section 407, to define 
and design activities for families for purposes of this
223
subsection, to develop methods for monitoring and re-
viewing progress pursuant to this subsection, and to 
make modifications to the plan as the State deems 
appropriate to assist the individual in increasing 
their degree of self-sufficiency. 
‘‘(5) APPLICATION
TO
PARTIALLY-SANCTIONED 
FAMILIES.—The requirements of this subsection shall 
apply in the case of a family that includes an adult 
or minor child head of household recipient of assist-
ance who is subject to a partial sanction. 
‘‘(6) TIMING.—The State shall initiate screening 
and assessment and the establishment of a family self-
sufficiency plan in accordance with the requirements 
of this subsection— 
‘‘(A) in the case of a family that, as of the 
date of enactment of the Personal Responsibility 
and Individual Development for Everyone Act, is 
not receiving assistance from the State program 
funded under this part, not later than the later 
of—
‘‘(i) 1 year after such date of enact-
ment; or 
‘‘(ii) 60 days after the family first re-
ceives assistance on the basis of the most re-
cent application for assistance; and
224
‘‘(B) in the case of a family that, as of such 
date, is receiving assistance under the State pro-
gram funded under this part, not later than 1 
year after such date of enactment. 
‘‘(7) RULE
OF
INTERPRETATION.—Nothing in 
this subsection shall preclude a State from—
‘‘(A) requiring participation in work and 
any other activities the State deems appropriate 
for helping families achieve self-sufficiency and 
improving child well-being; or 
‘‘(B) using job search or other appropriate 
job readiness or work activities to assess the em-
ployability of individuals and to determine ap-
propriate future engagement activities.’’.
(B) PENALTY
FOR
FAILURE
TO
COMPLY 
WITH FAMILY SELF-SUFFICIENCY PLAN REQUIRE-
MENTS.—
(i) IN
GENERAL.—Section 409(a)(3) 
(42 U.S.C. 609(a)(3)) is amended—
(I) in the paragraph heading, by 
inserting ‘‘OR
COMPLY
WITH
FAMILY 
SELF-SUFFICIENCY
PLAN
REQUIRE-
MENTS’’ after ‘‘RATES’’; 
(II) in subparagraph (A), by in-
serting ‘‘or 408(b)’’ after ‘‘407(a)’’; and
225
(III) by striking subparagraph 
(C) and inserting the following: 
‘‘(C) PENALTY
BASED
ON
SEVERITY
OF 
FAILURE.—
‘‘(i) FAILURE
TO
SATISFY
MINIMUM 
PARTICIPATION RATE.—If, with respect to 
fiscal year 2005 or any fiscal year there-
after, the Secretary finds that a State has 
failed or is failing to substantially comply 
with the requirements of section 407(a) for 
that fiscal year, the Secretary shall impose 
reductions under subparagraph (A) with re-
spect to the immediately succeeding fiscal 
year based on the degree of substantial non-
compliance. In assessing the degree of sub-
stantial 
noncompliance 
under 
section 
407(a) for a fiscal year, the Secretary shall 
take into account factors such as—
‘‘(I) the degree to which the State 
missed the minimum participation 
rate for that fiscal year; 
‘‘(II) the change in the number of 
individuals who are engaged in work 
in the State since the prior fiscal year; 
and
226
‘‘(III) the number of consecutive 
fiscal years in which the State failed to 
reach the minimum participation rate. 
‘‘(ii) FAILURE TO COMPLY WITH SELF-
SUFFICIENCY
PLAN
REQUIREMENTS.—If, 
with respect to fiscal year 2005 or any fis-
cal year thereafter, the Secretary finds that 
a State has failed or is failing to substan-
tially comply with the requirements of sec-
tion 408(b) for that fiscal year, the Sec-
retary shall impose reductions under sub-
paragraph (A) with respect to the imme-
diately succeeding fiscal year based on the 
degree of substantial noncompliance. In as-
sessing the degree of substantial noncompli-
ance under section 408(b), the Secretary 
shall take into account factors such as—
‘‘(I) the number or percentage of 
families for which a self-sufficiency 
plan is not established in a timely 
fashion for that fiscal year; 
‘‘(II) the duration of the delays in 
establishing a self-sufficiency plan dur-
ing that fiscal year;
227
‘‘(III) whether the failures are iso-
lated and nonrecurring; and 
‘‘(IV) the existence of systems de-
signed to ensure that self-sufficiency 
plans are established for all families in 
a timely fashion and that families’ 
progress under such plans is mon-
itored. 
‘‘(iii) AUTHORITY
TO
REDUCE
THE 
PENALTY.—The Secretary may reduce the 
penalty that would otherwise apply under 
this paragraph if the substantial non-
compliance is due to circumstances that 
caused the State to meet the criteria of sub-
clause 
(I), 
(II), 
or 
(III) 
of 
section 
403(b)(3)(A)(iii) or to satisfy the applicable 
duration 
requirement 
of 
section 
403(b)(3)(B) during the fiscal year, or if the 
noncompliance is due to extraordinary cir-
cumstances such as a natural disaster or re-
gional recession. The Secretary shall pro-
vide a written report to Congress to justify 
any waiver or penalty reduction due to 
such extraordinary circumstances.’’.
228
(ii) EFFECTIVE
DATE.—The amend-
ments made by this subparagraph take ef-
fect on October 1, 2004. 
(3) GAO EVALUATION AND REPORT.—Not later 
than September 30, 2005, the Comptroller General of 
the United States shall submit a report to the Com-
mittee on Ways and Means of the House of Represent-
atives and the Committee on Finance of the Senate 
evaluating the implementation of the universal en-
gagement provisions under the temporary assistance 
to needy families program under part A of title IV 
of the Social Security Act (42 U.S.C. 601 et seq.), as 
added by the amendments made by this subsection. 
(4) RULES OF CONSTRUCTION.—Nothing in this 
subsection or the amendments made by this subsection 
shall be construed—
(A) as establishing a private right or cause 
of action against a State for failure to comply 
with the requirements imposed under this sub-
section or the amendments made by this sub-
section; or 
(B) as limiting claims that may be avail-
able under other Federal or State laws. 
(b) TRANSITIONAL
COMPLIANCE
FOR
TEEN
PAR-
ENTS.—
229
(1) IN GENERAL.—Section 408(a)(5) (42 U.S.C. 
608(a)(5)) is amended—
(A) in subparagraph (A)(i), by striking 
‘‘subparagraph (B)’’ and inserting ‘‘subpara-
graphs (B) and (C)’’; and 
(B) by adding at the end the following: 
‘‘(C) AUTHORITY TO PROVIDE TEMPORARY 
ASSISTANCE.—A State may use any part of a 
grant made under section 403 to provide assist-
ance to an individual described in clause (ii) of 
subparagraph (A) who would otherwise be pro-
hibited from receiving such assistance under 
clause (i) of that subparagraph, subparagraph 
(B), or section 408(a)(4) for not more than a 
single 60-day period in order to assist the indi-
vidual in meeting the requirement of clause (i) 
of subparagraph (A), subparagraph (B), or sec-
tion 408(a)(4) for receipt of such assistance.’’. 
(2) INCLUSION OF TRANSITIONAL LIVING YOUTH 
PROJECTS AS A FORM OF ADULT-SUPERVISED SET-
TING.—Clause (i) of section 408(a)(5)(A) (42 U.S.C. 
608(a)(5)(A)(i)), as amended by paragraph (1), is 
amended—
(A) by striking ‘‘do not reside in a place of’’ 
and inserting ‘‘do not reside in a—
230
‘‘(I) place of’’; 
(B) by striking the period and inserting ‘‘; 
or’’; and 
(C) by adding at the end the following: 
‘‘(II) transitional living youth 
project funded under a grant made 
under section 321 of the Runaway and 
Homeless Youth Act (42 U.S.C. 5714–
1).’’. 
SEC. 111. PENALTIES. 
Section 409(a)(7) (42 U.S.C. 609(a)(7)), as amended 
by section 3(g) of the Welfare Reform Extension Act of 2003 
(Public Law 108–040, 117 Stat. 837) is amended—
(1) in subparagraph (A) by striking ‘‘fiscal year 
1998, 1999, 2000, 2001, 2002, 2003, or 2004’’ and in-
serting ‘‘fiscal year 2004, 2005, 2006, 2007, 2008, or 
2009’’; and 
(2) in subparagraph (B)(ii)—
(A) by inserting ‘‘preceding’’ before ‘‘fiscal 
year’’; and 
(B) by striking ‘‘for fiscal years 1997 
through 2003,’’. 
SEC. 112. DATA COLLECTION AND REPORTING. 
(a) CONTENTS OF REPORT.—Section 411(a)(1)(A) (42 
U.S.C. 611(a)(1)(A)) is amended—
231
(1) in the matter preceding clause (i), by insert-
ing ‘‘and on families receiving assistance under State 
programs funded with other qualified State expendi-
tures (as defined in section 409(a)(7)(B)(i))’’ before 
the colon; 
(2) in clause (vii), by inserting ‘‘and minor par-
ent’’ after ‘‘of each adult’’; 
(3) in clause (viii), by striking ‘‘and educational 
level’’; 
(4) in clause (ix), by striking ‘‘, and if the latter 
2, the amount received’’; 
(5) in clause (x)—
(A) by striking ‘‘each type of’’; and 
(B) by inserting before the period ‘‘and, if 
applicable, the reason for receipt of the assistance 
for a total of more than 60 months’’; 
(6) in clause (xi), by striking subclauses (I) 
through (VII) and inserting the following: 
‘‘(I) Subsidized private sector em-
ployment. 
‘‘(II) Unsubsidized employment. 
‘‘(III) Public sector employment, 
supervised work experience, or super-
vised community service. 
‘‘(IV) On-the-job training.
232
‘‘(V) Job search and placement. 
‘‘(VI) Training. 
‘‘(VII) Education. 
‘‘(VIII) Other activities directed 
at the purposes of this part, as speci-
fied in the State plan submitted pursu-
ant to section 402.’’; 
(7) in clause (xii), by inserting ‘‘and progress to-
ward universal engagement’’ after ‘‘participation 
rates’’; 
(8) in clause (xiii), by striking ‘‘type and’’ before 
‘‘amount of assistance’’; 
(9) in clause (xvi), by striking subclause (II) 
and redesignating subclauses (III) through (V) as sub-
clauses (II) through (IV), respectively; and 
(10) by adding at the end the following: 
‘‘(xviii) The date the family first re-
ceived assistance from the State program on 
the basis of the most recent application for 
such assistance.
‘‘(xix) Whether a self-sufficiency plan 
is established for the family in accordance 
with section 408(b). 
‘‘(xx) With respect to any child in the 
family, the marital status of the parents at