II
Calendar No. 518
107TH CONGRESS
2D SESSION
H.R. 4737
[Report No. 107–221]
IN THE SENATE OF THE UNITED STATES
MAY 16 (legislative day, MAY 9), 2002
Received; read twice and referred to the Committee on Finance
JULY 25, 2002
Reported by Mr. BAUCUS, with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
AN ACT
To reauthorize and improve the program of block grants
to States for temporary assistance for needy families,
improve access to quality child care, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Personal Responsi-
bility, Work, and Family Promotion Act of 2002’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Findings.
TITLE I—TANF
Sec. 101. Purposes.
Sec. 102. Family assistance grants.
Sec. 103. Promotion of family formation and healthy marriage.
Sec. 104. Supplemental grant for population increases in certain States.
Sec. 105. Bonus to reward employment achievement.
Sec. 106. Contingency fund.
Sec. 107. Use of funds.
Sec. 108. Repeal of Federal loan for State welfare programs.
Sec. 109. Universal engagement and family self-sufficiency plan requirements.
Sec. 110. Work participation requirements.
Sec. 111. Maintenance of effort.
Sec. 112. Performance improvement.
Sec. 113. Data collection and reporting.
Sec. 114. Direct funding and administration by Indian tribes.
Sec. 115. Research, evaluations, and national studies.
Sec. 116. Studies by the Census Bureau and the General Accounting Office.
Sec. 117. Definition of assistance.
Sec. 118. Technical corrections.
Sec. 119. Fatherhood program.
Sec. 120. State option to make TANF programs mandatory partners with one-
stop employment training centers.
Sec. 121. Sense of the Congress.
TITLE II—CHILD CARE
Sec. 201. Short title.
Sec. 202. Goals.
Sec. 203. Authorization of appropriations.
Sec. 204. Application and plan.
Sec. 205. Activities to improve the quality of child care.
Sec. 206. Report by Secretary.
Sec. 207. Definitions.
Sec. 208. Entitlement funding.
TITLE III—TAXPAYER PROTECTIONS
Sec. 301. Exclusion from gross income for interest on overpayments of income
tax by individuals.
Sec. 302. Deposits made to suspend running of interest on potential underpay-
ments.
Sec. 303. Partial payment of tax liability in installment agreements.
TITLE IV—CHILD SUPPORT
Sec. 401. Federal matching funds for limited pass through of child support
payments to families receiving TANF.
Sec. 402. State option to pass through all child support payments to families
that formerly received TANF.
Sec. 403. Mandatory review and adjustment of child support orders for families
receiving TANF.
Sec. 404. Mandatory fee for successful child support collection for family that
has never received TANF.
Sec. 405. Report on undistributed child support payments.
Sec. 406. Use of new hire information to assist in administration of unemploy-
ment compensation programs.
Sec. 407. Decrease in amount of child support arrearage triggering passport
denial.
Sec. 408. Use of tax refund intercept program to collect past-due child support
on behalf of children who are not minors.
Sec. 409. Garnishment of compensation paid to veterans for service-connected
disabilities in order to enforce child support obligations.
Sec. 410. Improving Federal debt collection practices.
Sec. 411. Maintenance of technical assistance funding.
Sec. 412. Maintenance of Federal Parent Locator Service funding.
TITLE V—CHILD WELFARE
Sec. 501. Extension of authority to approve demonstration projects.
Sec. 502. Elimination of limitation on number of waivers.
Sec. 503. Elimination of limitation on number of States that may be granted
waivers to conduct demonstration projects on same topic.
Sec. 504. Elimination of limitation on number of waivers that may be granted
to a single State for demonstration projects.
Sec. 505. Streamlined process for consideration of amendments to and exten-
sions of demonstration projects requiring waivers.
Sec. 506. Availability of reports.
Sec. 507. Technical correction.
TITLE VI—SUPPLEMENTAL SECURITY INCOME
Sec. 601. Review of State agency blindness and disability determinations.
TITLE VII—STATE AND LOCAL FLEXIBILITY
Sec. 701. Program coordination demonstration projects.
Sec. 702. State food assistance block grant demonstration project.
TITLE VIII—ABSTINENCE EDUCATION
Sec. 801. Extension of abstinence education funding under maternal and child
health program.
TITLE IX—TRANSITIONAL MEDICAL ASSISTANCE
Sec. 901. One-year reauthorization of transitional medical assistance.
Sec. 902. Adjustment to payments for medicaid administrative costs to prevent
duplicative payments and to fund a 1-year extension of transi-
tional medical assistance.
TITLE X—EFFECTIVE DATE
Sec. 1001. Effective date.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the amendment or repeal shall be considered to be
made to a section or other provision of the Social Security
Act.
SEC. 4. FINDINGS.
The Congress makes the following findings:
(1) The Temporary Assistance for Needy Fami-
lies (TANF) Program established by the Personal
Responsibility and Work Opportunity Reconciliation
Act of 1996 (Public Law 104–193) has succeeded in
moving families from welfare to work and reducing
child poverty.
(A) There has been a dramatic increase in
the employment of current and former welfare
recipients. The percentage of working recipients
reached an all-time high in fiscal years 1999
and 2000. In fiscal year 1999, 33 percent of
adult recipients were working, compared to less
than 7 percent in fiscal year 1992, and 11 per-
cent in fiscal year 1996. All States met the
overall participation rate standard in fiscal year
2000, as did the District of Columbia and
Puerto Rico.
(B) Earnings for welfare recipients re-
maining on the rolls have also increased signifi-
cantly,
as
have
earnings
for
female-headed
households. The increases have been particu-
larly large for the bottom 2 income quintiles,
that is, those women who are most likely to be
former or present welfare recipients.
(C) Welfare dependency has plummeted.
As of September 2001, 2,103,000 families and
5,333,000 individuals were receiving assistance.
Accordingly, the number of families in the wel-
fare caseload and the number of individuals re-
ceiving cash assistance declined 52 percent and
56 percent, respectively, since the enactment of
TANF. These declines have persisted even as
unemployment rates have increased: unemploy-
ment rates nationwide rose 25 percent, from
3.9 percent in September 2000 to 4.9 percent
in September 2001, while welfare caseloads con-
tinued to drop by 7 percent.
(D) The child poverty rate continued to de-
cline between 1996 and 2000, falling 21 percent
from 20.5 to 16.2 percent. The 2000 child pov-
erty rate is the lowest since 1979. Child poverty
rates for African-American and Hispanic chil-
dren have also fallen dramatically during the
past 6 years. African-American child poverty is
at the lowest rate on record and Hispanic child
poverty has had the largest 4-year decrease on
record.
(E) Despite these gains, States have had
mixed success in fully engaging welfare recipi-
ents in work activities. While all States have
met the overall work participation rates re-
quired by law, in 2000, in an average month,
only about 1⁄3 of all families with an adult par-
ticipated in work activities that were countable
toward the State’s participation rate. Eight ju-
risdictions failed to meet the more rigorous 2-
parent work requirements, and about 20 States
are not subject to the 2-parent requirements,
most because they moved their 2-parent cases
to separate State programs where they are not
subject to a penalty for failing the 2-parent
rates.
(2) As a Nation, we have made substantial
progress in reducing teen pregnancies and births,
slowing increases in nonmarital childbearing, and
improving child support collections and paternity es-
tablishment.
(A) The teen birth rate has fallen continu-
ously since 1991, down a dramatic 22 percent
by 2000. During the period of 1991–2000,
teenage birth rates fell in all States and the
District of Columbia, Puerto Rico, and the Vir-
gin Islands. Declines also have spanned age, ra-
cial, and ethnic groups. There has been success
in lowering the birth rate for both younger and
older teens. The birth rate for those 15–17
years of age is down 29 percent since 1991, and
the rate for those 18 and 19 is down 16 per-
cent. Between 1991 and 2000, teen birth rates
declined for all women ages 15–19—white, Afri-
can American, American Indian, Asian or Pa-
cific Islander, and Hispanic women ages 15–19.
The rate for African American teens—until re-
cently the highest—experienced the largest de-
cline, down 31 percent from 1991 to 2000, to
reach the lowest rate ever reported for this
group. Most births to teens are nonmarital; in
2000, about 73 percent of the births to teens
aged 15–19 occurred outside of marriage.
(B) Nonmarital childbearing continued to
increase slightly in 2000, however not at the
sharp rates of increase seen in recent decades.
The birth rate among unmarried women in
2000 was 3.5 percent lower than its peak
reached in 1994, while the proportion of births
occurring outside of marriage has remained at
approximately 33 percent since 1998.
(C) The negative consequences of out-of-
wedlock birth on the mother, the child, the fam-
ily, and society are well documented. These in-
clude increased likelihood of welfare depend-
ency, increased risks of low birth weight, poor
cognitive development, child abuse and neglect,
and teen parenthood, and decreased likelihood
of having an intact marriage during adulthood.
(D) An estimated 23,900,000 children do
not live with their biological father. 16,000,000
children live with their mother only. These facts
are attributable largely to declining marriage
rates, increasing divorce rates, and increasing
rates of nonmarital births during the latter part
of the 20th century.
(E) There has been a dramatic rise in co-
habitation as marriages have declined. Only 40
percent of children of cohabiting couples will
see their parents marry. Those who do marry
experience a 50 percent higher divorce rate.
Children in single-parent households and cohab-
iting households are at much higher risk of
child abuse than children in intact married and
stepparent families.
(F) Children who live apart from their bio-
logical fathers, on average, are more likely to be
poor, experience educational, health, emotional,
and psychological problems, be victims of child
abuse, engage in criminal behavior, and become
involved with the juvenile justice system than
their peers who live with their married, biologi-
cal mother and father. A child living in a single-
parent family is nearly 5 times as likely to be
poor as a child living in a married-couple fam-
ily. In married-couple families, the child poverty
rate is 8.1 percent, in households headed by a
single mother, the poverty rate is 39.7 percent.
(G) Since the enactment of the Personal
Responsibility and Work Opportunity Reconcili-
ation Act of 1996, child support collections
within the child support enforcement system
have
grown
every
year,
increasing
from
$12,000,000,000 in fiscal year 1996 to nearly
$19,000,000,000 in fiscal year 2001. The num-
ber of paternities established or acknowledged
in fiscal year 2002 reached an historic high of
over 1,500,000—which includes a nearly 100
percent increase through in-hospital acknowl-
edgement programs to 688,510 in 2000 from
349,356 in 1996. Child support collections were
made in over 7,000,000 cases in fiscal year
2000,
significantly
more
than
the
almost
4,000,000 cases having a collection in 1996.
(3) The Personal Responsibility and Work Op-
portunity Reconciliation Act of 1996 gave States
great flexibility in the use of Federal funds to de-
velop innovative programs to help families leave wel-
fare and begin employment and to encourage the
formation of 2-parent families.
(A) Total Federal and State TANF ex-
penditures
in
fiscal
year
2000
were
$24,000,000,000, up from $22,600,000,000 for
the previous year. This increased spending is
attributable to significant new investments in
supportive services in the TANF program, such
as child care and activities to support work.
(B) Since the welfare reform effort began
there has been a dramatic increase in work par-
ticipation (including employment, community
service, and work experience) among welfare re-
cipients, as well as an unprecedented reduction
in the caseload because recipients have left wel-
fare for work.
(C) States are making policy choices and
investment decisions best suited to the needs of
their citizens.
(i) To expand aid to working families,
all States disregard a portion of a family’s
earned income when determining benefit
levels.
(ii) Most States increased the limits
on countable assets above the former Aid
to
Families
with
Dependent
Children
(AFDC) program. Every State has in-
creased the vehicle asset level above the
prior AFDC limit for a family’s primary
automobile.
(iii) States are experimenting with
programs to promote marriage and father
involvement. Over half the States have
eliminated restrictions on 2-parent fami-
lies. Many States use TANF, child sup-
port, or State funds to support community-
based activities to help fathers become
more involved in their children’s lives or
strengthen relationships between mothers
and fathers.
(4) Therefore, it is the sense of the Congress
that increasing success in moving families from wel-
fare to work, as well as in promoting healthy mar-
riage and other means of improving child well-being,
are very important Government interests and the
policy contained in part A of title IV of the Social
Security Act (as amended by this Act) is intended
to serve these ends.
TITLE I—TANF
SEC. 101. PURPOSES.
Section 401(a) (42 U.S.C. 601(a)) is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘increase’’ and inserting ‘‘improve child
well-being by increasing’’;
(2) in paragraph (1), by inserting ‘‘and serv-
ices’’ after ‘‘assistance’’;
(3) in paragraph (2), by striking ‘‘parents on
government benefits’’ and inserting ‘‘families on gov-
ernment benefits and reduce poverty’’; and
(4) in paragraph (4), by striking ‘‘two-parent
families’’ and inserting ‘‘healthy, 2-parent married
families, and encourage responsible fatherhood’’.
SEC. 102. FAMILY ASSISTANCE GRANTS.
(a)
EXTENSION
OF
AUTHORITY.—Section
403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is amended—
(1) by striking ‘‘1996, 1997, 1998, 1999, 2000,
2001, and 2002’’ and inserting ‘‘2003 through
2007’’; and
(2) by inserting ‘‘payable to the State for the
fiscal year’’ before the period.
(b) STATE FAMILY ASSISTANCE GRANT.—Section
403(a)(1) (42 U.S.C. 603(a)(1)) is amended by striking
subparagraphs (B) through (E) and inserting the fol-
lowing:
‘‘(B)
STATE
FAMILY
ASSISTANCE
GRANT.—The
State
family
assistance
grant
payable to a State for a fiscal year shall be the
amount
that
bears
the
same
ratio
to
the
amount specified in subparagraph (C) of this
paragraph as the amount required to be paid to
the State under this paragraph for fiscal year
2002 (determined without regard to any reduc-
tion pursuant to section 412(a)(1)) bears to the
total amount required to be paid under this
paragraph for fiscal year 2002.
‘‘(C) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
each
of
fiscal
years
2003
through
2007
$16,566,542,000 for grants under this para-
graph.’’.
(c) MATCHING GRANTS FOR THE TERRITORIES.—
Section 1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by
striking ‘‘1997 through 2002’’ and inserting ‘‘2003
through 2007’’.
SEC.
103.
PROMOTION
OF
FAMILY
FORMATION
AND
HEALTHY MARRIAGE.
(a) STATE PLANS.—Section 402(a)(1)(A) (42 U.S.C.
602(a)(1)(A)) is amended by adding at the end the fol-
lowing:
‘‘(vii) Encourage equitable treatment
of married, 2-parent families under the
program referred to in clause (i).’’.
(b) HEALTHY MARRIAGE PROMOTION GRANTS; RE-
PEAL
OF BONUS
FOR REDUCTION
OF ILLEGITIMACY
RATIO.—Section
403(a)(2)
(42
U.S.C.
603(a)(2))
is
amended to read as follows:
‘‘(2)
HEALTHY
MARRIAGE
PROMOTION
GRANTS.—
‘‘(A)
AUTHORITY.—The
Secretary
shall
award competitive grants to States, territories,
and tribal organizations for not more than 50
percent of the cost of developing and imple-
menting innovative programs to promote and
support healthy, married, 2-parent families.
‘‘(B) HEALTHY MARRIAGE PROMOTION AC-
TIVITIES.—Funds provided under subparagraph
(A) shall be used to support any of the fol-
lowing programs or activities:
‘‘(i) Public advertising campaigns on
the value of marriage and the skills needed
to increase marital stability and health.
‘‘(ii) Education in high schools on the
value of marriage, relationship skills, and
budgeting.
‘‘(iii) Marriage education, marriage
skills, and relationship skills programs,
that may include parenting skills, financial
management, conflict resolution, and job
and career advancement, for non-married
pregnant women and non-married expect-
ant fathers.
‘‘(iv) Pre-marital education and mar-
riage skills training for engaged couples
and for couples interested in marriage.
‘‘(v) Marriage enhancement and mar-
riage skills training programs for married
couples.
‘‘(vi) Divorce reduction programs that
teach relationship skills.
‘‘(vii) Marriage mentoring programs
which use married couples as role models
and mentors in at-risk communities.
‘‘(viii) Programs to reduce the dis-
incentives to marriage in means-tested aid
programs, if offered in conjunction with
any activity described in this subpara-
graph.
‘‘(C) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
each
of
fiscal
years
2003
through
2007
$100,000,000
for
grants
under
this
para-
graph.’’.
(c) COUNTING
OF SPENDING
ON NON-ELIGIBLE
FAMILIES
TO PREVENT
AND REDUCE INCIDENCE
OF
OUT-OF-WEDLOCK
BIRTHS,
ENCOURAGE
FORMATION
AND MAINTENANCE OF HEALTHY, 2-PARENT MARRIED
FAMILIES,
OR
ENCOURAGE
RESPONSIBLE
FATHER-
HOOD.—Section
409(a)(7)(B)(i)
(42
U.S.C.
609(a)(7)(B)(i)) is amended by adding at the end the fol-
lowing:
‘‘(V)
COUNTING
OF
SPENDING
ON NON-ELIGIBLE FAMILIES TO PRE-
VENT
AND
REDUCE
INCIDENCE
OF
OUT-OF-WEDLOCK
BIRTHS,
ENCOUR-
AGE FORMATION AND MAINTENANCE
OF
HEALTHY,
2-PARENT
MARRIED
FAMILIES,
OR
ENCOURAGE
RESPON-
SIBLE
FATHERHOOD.—The
term
‘qualified State expenditures’ includes
the total expenditures by the State
during the fiscal year under all State
programs for a purpose described in
paragraph
(3)
or
(4)
of
section
401(a).’’.
SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION IN-
CREASES IN CERTAIN STATES.
Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is
amended—
(1) in the subparagraph heading, by striking
‘‘OF GRANTS FOR FISCAL YEAR 2002’’;
(2) in clause (i), by striking ‘‘fiscal year 2002’’
and inserting ‘‘each of fiscal years 2002 through
2006’’;
(3) in clause (ii), by striking ‘‘2002’’ and in-
serting ‘‘2006’’; and
(4) in clause (iii), by striking ‘‘fiscal year
2002’’ and inserting ‘‘each of fiscal years 2002
through 2006’’.
SEC.
105.
BONUS
TO
REWARD
EMPLOYMENT
ACHIEVE-
MENT.
(a) REALLOCATION OF FUNDING.—Section 403(a)(4)
(42 U.S.C. 603(a)(4)) is amended—
(1)
in
the
paragraph
heading,
by
striking
‘‘HIGH PERFORMANCE STATES’’ and inserting ‘‘EM-
PLOYMENT ACHIEVEMENT’’;
(2) in subparagraph (D)(ii)—
(A) in subclause (I), by striking ‘‘equals
$200,000,000’’
and
inserting
‘‘(other
than
2003) equals $200,000,000, and for bonus year
2003 equals $100,000,000’’; and
(B)
in
subclause
(II),
by
striking
‘‘$1,000,000,000’’
and
inserting
‘‘$900,000,000’’; and
(3)
in
subparagraph
(F),
by
striking
‘‘$1,000,000,000’’ and inserting ‘‘$900,000,000’’.
(b) BONUS
TO REWARD EMPLOYMENT ACHIEVE-
MENT.—
(1)
IN
GENERAL.—Section
403(a)(4)
(42
U.S.C. 603(a)(4)) is amended by striking subpara-
graphs (A) through (F) and inserting the following:
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant pursuant to this paragraph to
each State for each bonus year for which the
State is an employment achievement State.
‘‘(B) AMOUNT OF GRANT.—
‘‘(i) IN GENERAL.—Subject to clause
(ii) of this subparagraph, the Secretary
shall determine the amount of the grant
payable under this paragraph to an em-
ployment achievement State for a bonus
year, which shall be based on the perform-
ance of the State as determined under sub-
paragraph (D)(i) for the fiscal year that
immediately precedes the bonus year.
‘‘(ii) LIMITATION.—The amount pay-
able to a State under this paragraph for a
bonus year shall not exceed 5 percent of
the State family assistance grant.
‘‘(C) FORMULA
FOR
MEASURING
STATE
PERFORMANCE.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), not later than October 1, 2003, the
Secretary, in consultation with the States,
shall
develop
a
formula
for
measuring
State performance in operating the State
program funded under this part so as to
achieve the goals of employment entry, job
retention, and increased earnings from em-
ployment for families receiving assistance
under the program, as measured on an ab-
solute basis and on the basis of improve-
ment in State performance.
‘‘(ii) SPECIAL RULE FOR BONUS YEAR
2004.—For the purposes of awarding a
bonus under this paragraph for bonus year
2004, the Secretary may measure the per-
formance of a State in fiscal year 2003
using the job entry rate, job retention rate,
and earnings gain rate components of the
formula
developed
under
section
403(a)(4)(C) as in effect immediately be-
fore the effective date of this paragraph.
‘‘(D)
DETERMINATION
OF
STATE
PER-
FORMANCE.—For each bonus year, the Sec-
retary shall—
‘‘(i) use the formula developed under
subparagraph (C) to determine the per-
formance of each eligible State for the fis-
cal year that precedes the bonus year; and
‘‘(ii) prescribe performance standards
in such a manner so as to ensure that—
‘‘(I)
the
average
annual
total
amount of grants to be made under
this paragraph for each bonus year
equals $100,000,000; and
‘‘(II) the total amount of grants
to be made under this paragraph for
all bonus years equals $500,000,000.
‘‘(E) DEFINITIONS.—In this paragraph:
‘‘(i) BONUS YEAR.—The term ‘bonus
year’ means each of fiscal years 2004
through 2008.
‘‘(ii)
EMPLOYMENT
ACHIEVEMENT
STATE.—The term ‘employment achieve-
ment State’ means, with respect to a bonus
year, an eligible State whose performance
determined
pursuant
to
subparagraph
(D)(i) for the fiscal year preceding the
bonus year equals or exceeds the perform-
ance standards prescribed under subpara-
graph (D)(ii) for such preceding fiscal
year.
‘‘(F) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 2004 through 2008 $500,000,000
for grants under this paragraph.
‘‘(G)
GRANTS
FOR
TRIBAL
ORGANIZA-
TIONS.—This paragraph shall apply with re-
spect to tribal organizations in the same man-
ner in which this paragraph applies with re-
spect to States. In determining the criteria
under which to make grants to tribal organiza-
tions under this paragraph, the Secretary shall
consult with tribal organizations.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on October 1,
2003.
SEC. 106. CONTINGENCY FUND.
(a) DEPOSITS INTO FUND.—Section 403(b)(2) (42
U.S.C. 603(b)(2)) is amended—
(1) by striking ‘‘1997, 1998, 1999, 2000, 2001,
and 2002’’ and inserting ‘‘2003 through 2007’’; and
(2)
by
striking
all
that
follows
‘‘$2,000,000,000’’ and inserting a period.
(b) GRANTS.—Section 403(b)(3)(C)(ii) (42 U.S.C.
603(b)(3)(C)(ii)) is amended by striking ‘‘fiscal years
1997 through 2002’’ and inserting ‘‘fiscal years 2003
through 2007’’.
(c) DEFINITION OF NEEDY STATE.—Clauses (i) and
(ii) of section 403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are
amended by inserting after ‘‘1996’’ the following: ‘‘, and
the Food Stamp Act of 1977 as in effect during the cor-
responding 3-month period in the fiscal year preceding
such most recently concluded 3-month period,’’.
(d) ANNUAL RECONCILIATION: FEDERAL MATCHING
OF STATE EXPENDITURES ABOVE ‘‘MAINTENANCE OF
EFFORT’’
LEVEL.—Section
403(b)(6)
(42
U.S.C.
603(b)(6)) is amended—
(1) in subparagraph (A)(ii)—
(A) by adding ‘‘and’’ at the end of sub-
clause (I);
(B) by striking ‘‘; and’’ at the end of sub-
clause (II) and inserting a period; and
(C) by striking subclause (III);
(2) in subparagraph (B)(i)(II), by striking all
that follows ‘‘section 409(a)(7)(B)(iii))’’ and insert-
ing a period;
(3) by amending subparagraph (B)(ii)(I) to
read as follows:
‘‘(I) the qualified State expendi-
tures
(as
defined
in
section
409(a)(7)(B)(i)) for the fiscal year;
plus’’; and
(4) by striking subparagraph (C).
(e) CONSIDERATION OF CERTAIN CHILD CARE EX-
PENDITURES
IN
DETERMINING
STATE
COMPLIANCE
WITH CONTINGENCY FUND MAINTENANCE OF EFFORT
REQUIREMENT.—Section
409(a)(10)
(42
U.S.C.
609(a)(10)) is amended—
(1) by striking ‘‘(other than the expenditures
described in subclause (I)(bb) of that paragraph))
under the State program funded under this part’’
and inserting a close parenthesis; and
(2) by striking ‘‘excluding any amount ex-
pended by the State for child care under subsection
(g) or (i) of section 402 (as in effect during fiscal
year 1994) for fiscal year 1994,’’.
SEC. 107. USE OF FUNDS.
(a) GENERAL RULES.—Section 404(a)(2) (42 U.S.C.
604(a)(2)) is amended by striking ‘‘in any manner that’’
and inserting ‘‘for any purposes or activities for which’’.
(b) TREATMENT OF INTERSTATE IMMIGRANTS.—
(1)
STATE
PLAN
PROVISION.—Section
402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended
by striking clause (i) and redesignating clauses (ii)
through (iv) as clauses (i) through (iii), respectively.
(2) USE OF FUNDS.—Section 404 (42 U.S.C.
604) is amended by striking subsection (c).
(c) INCREASE IN AMOUNT TRANSFERABLE TO CHILD
CARE.—Section
404(d)(1)
(42
U.S.C.
604(d)(1))
is
amended by striking ‘‘30’’ and inserting ‘‘50’’.
(d) INCREASE IN AMOUNT TRANSFERABLE TO TITLE
XX
PROGRAMS.—Section
404(d)(2)(B)
(42
U.S.C.
604(d)(2)(B)) is amended to read as follows:
‘‘(B)
APPLICABLE
PERCENT.—For
pur-
poses of subparagraph (A), the applicable per-
cent is 10 percent for fiscal year 2003 and each
succeeding fiscal year.’’.
(e) CLARIFICATION OF AUTHORITY OF STATES TO
USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS
TO PROVIDE TANF BENEFITS AND SERVICES.—Section
404(e) (42 U.S.C. 604(e)) is amended to read as follows:
‘‘(e) AUTHORITY TO CARRYOVER OR RESERVE CER-
TAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FU-
TURE CONTINGENCIES.—
‘‘(1) CARRYOVER.—A State or tribe may use a
grant made to the State or tribe under this part for
any fiscal year to provide, without fiscal year limita-
tion, any benefit or service that may be provided
under the State or tribal program funded under this
part.
‘‘(2) CONTINGENCY RESERVE.—A State or tribe
may designate any portion of a grant made to the
State or tribe under this part as a contingency re-
serve for future needs, and may use any amount so
designated to provide, without fiscal year limitation,
any benefit or service that may be provided under
the State or tribal program funded under this part.
If a State or tribe so designates a portion of such
a grant, the State shall, on an annual basis, include
in its report under section 411(a) the amount so
designated.’’.
SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE
PROGRAMS.
(a) REPEAL.—Section 406 (42 U.S.C. 606) is re-
pealed.
(b) CONFORMING AMENDMENTS.—
(1)
Section
409(a)
(42
U.S.C.
609(a))
is
amended by striking paragraph (6).
(2) Section 412 (42 U.S.C. 612) is amended by
striking subsection (f) and redesignating subsections
(g) through (i) as subsections (f) through (h), re-
spectively.
(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2))
is amended by striking ‘‘406,’’.
SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF-
SUFFICIENCY PLAN REQUIREMENTS.
(a)
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
engage in work or alternative self-suffi-
ciency activities (as defined by the State),
consistent with section 407(e)(2).
‘‘(iii) Require families receiving assist-
ance under the program to engage in ac-
tivities in accordance with family self-suffi-
ciency plans developed pursuant to section
408(b).’’.
(b) ESTABLISHMENT OF FAMILY SELF-SUFFICIENCY
PLANS.—
(1) 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) assess, in the manner deemed appro-
priate by the State, of the skills, prior work ex-
perience, and employability of each work-eligible
individual (as defined in section 407(b)(2)(C))
receiving assistance under the State program
funded under this part;
‘‘(B) establish for each family that in-
cludes such an individual, in consultation as the
State deems appropriate with the individual, a
self-sufficiency plan that specifies appropriate
activities described in the State plan submitted
pursuant to section 402, including direct work
activities as appropriate designed to assist the
family in achieving their maximum degree of
self-sufficiency, and that provides for the ongo-
ing participation of the individual in the activi-
ties;
‘‘(C) require, at a minimum, each such in-
dividual to participate in activities in accord-
ance with the self-sufficiency plan;
‘‘(D) monitor the participation of each
such individual in the activities specified in the
self sufficiency plan, and regularly review the
progress of the family toward self-sufficiency;
‘‘(E) upon such a review, revise the self-
sufficiency plan and activities as the State
deems appropriate.
‘‘(2) TIMING.—The State shall comply with
paragraph (1) with respect to a family—
‘‘(A) in the case of a family that, as of Oc-
tober 1, 2002, is not receiving assistance from
the State program funded under this part, not
later than 60 days after the family first receives
assistance on the basis of the most recent appli-
cation for the assistance; or
‘‘(B) in the case of a family that, as of
such date, is receiving the assistance, not later
than 12 months after the date of enactment of
this subsection.
‘‘(3) STATE DISCRETION.—A State shall have
sole discretion, consistent with section 407, to define
and design activities for families for purposes of this
subsection, to develop methods for monitoring and
reviewing progress pursuant to this subsection, and
to make modifications to the plan as the State
deems appropriate to assist the individual in increas-
ing their degree of self-sufficiency.
‘‘(4) RULE OF INTERPRETATION.—Nothing in
this part shall preclude a State from requiring par-
ticipation in work and any other activities the State
deems appropriate for helping families achieve self-
sufficiency and improving child well-being.’’.
(2) PENALTY
FOR
FAILURE
TO
ESTABLISH
FAMILY
SELF-SUFFICIENCY
PLAN.—Section
409(a)(3) (42 U.S.C. 609(a)(3)) is amended—
(A) in the paragraph heading, by inserting
‘‘OR
ESTABLISH
FAMILY
SELF-SUFFICIENCY
PLAN’’ after ‘‘RATES’’; and
(B) in subparagraph (A), by inserting ‘‘or
408(b)’’ after ‘‘407(a)’’.
SEC. 110. WORK PARTICIPATION REQUIREMENTS.
(a) IN GENERAL.—Section 407 (42 U.S.C. 607) is
amended by striking all that precedes subsection (b)(3)
and inserting the following:
‘‘SEC. 407. WORK PARTICIPATION REQUIREMENTS.
‘‘(a)
PARTICIPATION
RATE
REQUIREMENTS.—A
State to which a grant is made under section 403 for a
fiscal year shall achieve a minimum participation rate
equal to not less than—
‘‘(1) 50 percent for fiscal year 2003;
‘‘(2) 55 percent for fiscal year 2004;
‘‘(3) 60 percent for fiscal year 2005;
‘‘(4) 65 percent for fiscal year 2006; and
‘‘(5) 70 percent for fiscal year 2007 and each
succeeding fiscal year.
‘‘(b) CALCULATION OF PARTICIPATION RATES.—
‘‘(1) AVERAGE MONTHLY RATE.—For purposes
of subsection (a), the participation rate of a State
for a fiscal year is the average of the participation
rates of the State for each month in the fiscal year.
‘‘(2) MONTHLY PARTICIPATION RATES; INCOR-
PORATION OF 40-HOUR WORK WEEK STANDARD.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the participation rate of a State for
a month is—
‘‘(i) the total number of countable
hours (as defined in subsection (c)) with
respect to the counted families for the
State for the month; divided by
‘‘(ii) 160 multiplied by the number of
counted families for the State for the
month.
‘‘(B) COUNTED FAMILIES DEFINED.—
‘‘(i) IN GENERAL.—In subparagraph
(A), the term ‘counted family’ means, with
respect to a State and a month, a family
that includes a work-eligible individual and
that receives assistance in the month under
the State program funded under this part,
subject to clause (ii).
‘‘(ii)
STATE
OPTION
TO
EXCLUDE
CERTAIN
FAMILIES.—At the option of a
State, the term ‘counted family’ shall not
include—
‘‘(I) a family in the first month
for which the family receives assist-
ance from a State program funded
under this part on the basis of the
most recent application for such as-
sistance; or
‘‘(II) on a case-by-case basis, a
family in which the youngest child has
not attained 12 months of age.
‘‘(iii) STATE OPTION TO INCLUDE IN-
DIVIDUALS RECEIVING ASSISTANCE UNDER
A
TRIBAL
FAMILY
ASSISTANCE
PLAN
OR
TRIBAL WORK PROGRAM.—At the option of
a State, the term ‘counted family’ may in-
clude families in the State that are receiv-
ing assistance under a tribal family assist-
ance plan approved under section 412 or
under a tribal work program to which
funds are provided under this part.
‘‘(C)
WORK-ELIGIBLE
INDIVIDUAL
DE-
FINED.—In this section, the term ‘work-eligible
individual’ means an individual—
‘‘(i) who is married or a single head
of household; and
‘‘(ii) whose needs are (or, but for
sanctions under this part that have been in
effect for more than 3 months (whether or
not
consecutive)
in
the
preceding
months or under part D, would be) in-
cluded in determining the amount of cash
assistance to be provided to the family
under the State program funded under this
part.’’.
(b)
RECALIBRATION
OF
CASELOAD
REDUCTION
CREDIT.—Section
407(b)(3)(A)(ii)
(42
U.S.C.
607(b)(3)(A)(ii)) is amended to read as follows:
‘‘(ii) the average monthly number of
families that received assistance under the
State program funded under this part
during—
‘‘(I) if the fiscal year is fiscal
year 2003, fiscal year 1996;
‘‘(II) if the fiscal year is fiscal
year 2004, fiscal year 1998;
‘‘(III) if the fiscal year is fiscal
year 2005, fiscal year 2001; or
‘‘(IV) if the fiscal year is fiscal
year 2006 or any succeeding fiscal
year, the then 4th preceding fiscal
year.’’.
(c) SUPERACHIEVER CREDIT.—Section 407(b) (42
U.S.C. 607(b)) is amended by striking paragraphs (4) and
(5) and inserting the following:
‘‘(4) SUPERACHIEVER CREDIT.—
‘‘(A)
IN
GENERAL.—The
participation
rate, determined under paragraphs (1) and (2)
of this subsection, of a superachiever State for
a fiscal year shall be increased by the lesser
of—
‘‘(i) the amount (if any) of the super-
achiever credit applicable to the State; or
‘‘(ii) the number of percentage points
(if any) by which the minimum participa-
tion rate required by subsection (a) for the
fiscal year exceeds 50 percent.
‘‘(B) SUPERACHIEVER
STATE.—For pur-
poses of subparagraph (A), a State is a super-
achiever State if the State caseload for fiscal
year 2001 has declined by at least 60 percent
from the State caseload for fiscal year 1995.
‘‘(C) AMOUNT
OF
CREDIT.—The super-
achiever credit applicable to a State is the num-
ber of percentage points (if any) by which the
decline referred to in subparagraph (B) exceeds
60 percent.
‘‘(D) DEFINITIONS.—In this paragraph:
‘‘(i) STATE
CASELOAD
FOR
FISCAL
YEAR 2001.—The term ‘State caseload for
fiscal
year
2001’
means
the
average
monthly number of families that received
assistance during fiscal year 2001 under
the State program funded under this part.
‘‘(ii) STATE
CASELOAD
FOR
FISCAL
YEAR 1995.—The term ‘State caseload for
fiscal
year
1995’
means
the
average
monthly number of families that received
aid under the State plan approved under
part A (as in effect on September 30,
1995) during fiscal year 1995.’’.
(d) COUNTABLE HOURS.—Section 407 of such Act
(42 U.S.C. 607) is amended by striking subsections (c)
and (d) and inserting the following:
‘‘(c) COUNTABLE HOURS.—
‘‘(1) DEFINITION.—In subsection (b)(2), the
term ‘countable hours’ means, with respect to a fam-
ily for a month, the total number of hours in the
month in which any member of the family who is a
work-eligible individual is engaged in a direct work
activity or other activities specified by the State (ex-
cluding an activity that does not address a purpose
specified in section 401(a)), subject to the other pro-
visions of this subsection.
‘‘(2) LIMITATIONS.—Subject to such regula-
tions as the Secretary may prescribe:
‘‘(A) MINIMUM WEEKLY AVERAGE OF 24
HOURS
OF
DIRECT
WORK
ACTIVITIES
RE-
QUIRED.—If the work-eligible individuals in a
family are engaged in a direct work activity for
an average total of fewer than 24 hours per
week in a month, then the number of countable
hours with respect to the family for the month
shall be zero.
‘‘(B) MAXIMUM WEEKLY AVERAGE OF 16
HOURS OF OTHER ACTIVITIES.—An average of
not more than 16 hours per week of activities
specified by the State (subject to the exclusion
described in paragraph (1)) may be considered
countable hours in a month with respect to a
family.
‘‘(3) SPECIAL RULES.—For purposes of para-
graph (1):
‘‘(A) PARTICIPATION
IN
QUALIFIED
AC-
TIVITIES.—
‘‘(i) IN GENERAL.—If, with the ap-
proval of the State, the work-eligible indi-
viduals in a family are engaged in 1 or
more qualified activities for an average
total of at least 24 hours per week in a
month, then all such engagement in the
month shall be considered engagement in a
direct work activity, subject to clause (iii).
‘‘(ii)
QUALIFIED
ACTIVITY
DE-
FINED.—The
term
‘qualified
activity’
means an activity specified by the State
(subject to the exclusion described in para-
graph (1)) that meets such standards and
criteria
as
the
State
may
specify,
including—
‘‘(I) substance abuse counseling
or treatment;
‘‘(II)
rehabilitation
treatment
and services;
‘‘(III) work-related education or
training directed at enabling the fam-
ily member to work;
‘‘(IV) job search or job readiness
assistance; and
‘‘(V) any other activity that ad-
dresses a purpose specified in section
401(a).
‘‘(iii) LIMITATION.—
‘‘(I)
IN
GENERAL.—Except
as
provided in subclause (II), clause (i)
shall not apply to a family for more
than 3 months in any period of 24
consecutive months.
‘‘(II) SPECIAL RULE APPLICABLE
TO
EDUCATION
AND
TRAINING.—A
State may, on a case-by-case basis,
apply clause (i) to a work-eligible indi-
vidual so that participation by the in-
dividual in education or training, if
needed to permit the individual to
complete
a
certificate
program
or
other work-related education or train-
ing directed at enabling the individual
to fill a known job need in a local
area, may be considered countable
hours with respect to the family of the
individual for not more than 4 months
in
any
period
of
consecutive
months.
‘‘(B)
SCHOOL
ATTENDANCE
BY
TEEN
HEAD
OF
HOUSEHOLD.—The
work-eligible
members of a family shall be considered to be
engaged in a direct work activity for an average
of 40 hours per week in a month if the family
includes an individual who is married, or is a
single head of household, who has not attained
20 years of age, and the individual—
‘‘(i) maintains satisfactory attendance
at secondary school or the equivalent in
the month; or
‘‘(ii) participates in education directly
related to employment for an average of at
least 20 hours per week in the month.
‘‘(d) DIRECT WORK ACTIVITY.—In this section, the
term ‘direct work activity’ means—
‘‘(1) unsubsidized employment;
‘‘(2) subsidized private sector employment;
‘‘(3) subsidized public sector employment;
‘‘(4) on-the-job training;
‘‘(5) supervised work experience; or
‘‘(6) supervised community service.’’.
(e)
PENALTIES
AGAINST
INDIVIDUALS.—Section
407(e)(1) (42 U.S.C. 607(e)(1)) is amended to read as
follows:
‘‘(1) REDUCTION OR TERMINATION OF ASSIST-
ANCE.—
‘‘(A) IN GENERAL.—Except as provided in
paragraph (2), if an individual in a family re-
ceiving assistance under a State program fund-
ed under this part fails to engage in activities
required in accordance with this section, or
other activities required by the State under the
program, and the family does not otherwise en-
gage in activities in accordance with the self-
sufficiency plan established for the family pur-
suant to section 408(b), the State shall—
‘‘(i) if the failure is partial or persists
for not more than 1 month—
‘‘(I) reduce the amount of assist-
ance otherwise payable to the family
pro rata (or more, at the option of the
State) with respect to any period dur-
ing a month in which the failure oc-
curs; or
‘‘(II) terminate all assistance to
the family, subject to such good cause
exceptions as the State may establish;
or
‘‘(ii) if the failure is total and persists
for at least 2 consecutive months, termi-
nate all cash payments to the family in-
cluding qualified State expenditures (as de-
fined in section 409(a)(7)(B)(i)) for at
least 1 month and thereafter until the
State determines that the individual has
resumed full participation in the activities,
subject to such good cause exceptions as
the State may establish.
‘‘(B) SPECIAL RULE.—In the event of a
conflict between a requirement of clause (i)(II)
or (ii) of subparagraph (A) and a requirement
of a State constitution, or of a State statute
that, before 1966, obligated local government to
provide assistance to needy parents and chil-
dren, the State constitutional or statutory re-
quirement shall control.’’.
(f) CONFORMING AMENDMENTS.—
(1) Section 407(f) (42 U.S.C. 607(f)) is amend-
ed in each of paragraphs (1) and (2) by striking
‘‘work activity described in subsection (d)’’ and in-
serting ‘‘direct work activity’’.
(2) The heading of section 409(a)(14) (42
U.S.C. 609(a)(14)) is amended by inserting ‘‘OR RE-
FUSING TO ENGAGE IN ACTIVITIES UNDER A FAMILY
SELF-SUFFICIENCY PLAN’’ after ‘‘WORK’’.
SEC. 111. MAINTENANCE OF EFFORT.
(a) IN GENERAL.—Section 409(a)(7) (42 U.S.C.
609(a)(7)) is amended—
(1) in subparagraph (A) by striking ‘‘fiscal year
1998, 1999, 2000, 2001, 2002, or 2003’’ and insert-
ing ‘‘fiscal year 2003, 2004, 2005, 2006, 2007 or
2008’’; and
(2) in subparagraph (B)(ii)—
(A) by inserting ‘‘preceding’’ before ‘‘fiscal
year’’; and
(B) by striking ‘‘for fiscal years 1997
through 2002,’’.
(b) STATE SPENDING
ON PROMOTING HEALTHY
MARRIAGE.—
(1) IN GENERAL.—Section 404 (42 U.S.C. 604)
is amended by adding at the end the following:
‘‘(l) MARRIAGE PROMOTION.—A State, territory, or
tribal organization to which a grant is made under section
403(a)(2) may use a grant made to the State, territory,
or tribal organization under any other provision of section
403 for marriage promotion activities, and the amount of
any such grant so used shall be considered State funds
for purposes of section 403(a)(2).’’.
(2) FEDERAL
TANF
FUNDS
USED
FOR
MAR-
RIAGE PROMOTION DISREGARDED FOR PURPOSES OF
MAINTENANCE OF EFFORT REQUIREMENT.—Section
409(a)(7)(B)(i)
(42
U.S.C.
609(a)(7)(B)(i)),
as
amended by section 103(c) of this Act, is amended
by adding at the end the following:
‘‘(VI) EXCLUSION
OF
FEDERAL
TANF
FUNDS
USED
FOR
MARRIAGE
PROMOTION
ACTIVITIES.—Such term
does not include the amount of any
grant made to the State under section
403 that is expended for a marriage
promotion activity.’’.
SEC. 112. PERFORMANCE IMPROVEMENT.
(a)
STATE
PLANS.—Section
402(a)
(42
U.S.C.
602(a)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by redesignating clause (vi) and
clause (vii) (as added by section 103(a) of
this Act) as clauses (vii) and (viii), respec-
tively; and
(ii) by striking clause (v) and insert-
ing the following:
‘‘(v) The document shall—
‘‘(I) describe how the State will
pursue ending dependence of needy
families on government benefits and
reducing poverty by promoting job
preparation and work;
‘‘(II) describe how the State will
encourage the formation and mainte-
nance of healthy 2-parent married
families, encourage responsible father-
hood, and prevent and reduce the inci-
dence of out-of-wedlock pregnancies;
‘‘(III) include specific, numerical,
and measurable performance objec-
tives for accomplishing subclauses (I)
and (II), and with respect to sub-
clause
(I),
include
objectives
con-
sistent with the criteria used by the
Secretary in establishing performance
targets under section 403(a)(4)(B) if
available; and
‘‘(IV) describe the methodology
that the State will use to measure
State performance in relation to each
such objective.
‘‘(vi) Describe any strategies and pro-
grams the State may be undertaking to
address—
‘‘(I) employment retention and
advancement for recipients of assist-
ance under the program, including
placement into high-demand jobs, and
whether the jobs are identified using
labor market information;
‘‘(II) efforts to reduce teen preg-
nancy;
‘‘(III) services for struggling and
noncompliant families, and for clients
with special problems; and
‘‘(IV) program integration, in-
cluding the extent to which employ-
ment and training services under the
program
are
provided
through
the
One-Stop
delivery
system
created
under the Workforce Investment Act
of 1998, and the extent to which
former recipients of such assistance
have access to additional core, inten-
sive,
or
training
services
funded
through such Act.’’; and
(B)
in
subparagraph
(B),
by
striking
clause
(iii)
(as
so
redesignated
by
section
107(b)(1) of this Act) and inserting the fol-
lowing:
‘‘(iii)
The
document
shall
describe
strategies and programs the State is un-
dertaking to engage religious organizations
in the provision of services funded under
this part and efforts related to section 104
of the Personal Responsibility and Work
Opportunity Reconcilation Act of 1996.
‘‘(iv)
The
document
shall
describe
strategies to improve program manage-
ment and performance.’’; and
(2) in paragraph (4), by inserting ‘‘and tribal’’
after ‘‘that local’’.
(b) CONSULTATION WITH STATE REGARDING PLAN
AND DESIGN OF TRIBAL PROGRAMS.—Section 412(b)(1)
(42 U.S.C. 612(b)(1)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(G) provides an assurance that the State
in which the tribe is located has been consulted
regarding the plan and its design.’’.
(c) PERFORMANCE MEASURES.—Section 413 (42
U.S.C. 613) is amended by adding at the end the fol-
lowing:
‘‘(k) PERFORMANCE IMPROVEMENT.—The Secretary,
in consultation with the States, shall develop uniform per-
formance measures designed to assess the degree of effec-
tiveness, and the degree of improvement, of State pro-
grams funded under this part in accomplishing the pur-
poses of this part.’’.
(d)
ANNUAL
RANKING
OF
STATES.—Section
413(d)(1) (42 U.S.C. 613(d)(1)) is amended by striking
‘‘long-term private sector jobs’’ and inserting ‘‘private sec-
tor jobs, the success of the recipients in retaining employ-
ment, the ability of the recipients to increase their wages’’.
SEC. 113. DATA COLLECTION AND REPORTING.
(a) CONTENTS OF REPORT.— Section 411(a)(1)(A)
(42 U.S.C. 611(a)(1)(A)) is amended—
(1) in clause (vii), by inserting ‘‘and minor par-
ent’’ after ‘‘of each adult’’;
(2) in clause (viii), by striking ‘‘and educational
level’’;
(3) in clause (ix), by striking ‘‘, and if the lat-
ter 2, the amount received’’;
(4) 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 assist-
ance for a total of more than 60 months’’;
(5) in clause (xi), by striking the subclauses
and inserting the following:
‘‘(I)
Subsidized
private
sector
employment.
‘‘(II) Unsubsidized employment.
‘‘(III) Public sector employment,
supervised work experience, or super-
vised community service.
‘‘(IV) On-the-job training.
‘‘(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 pur-
suant to section 402.’’;
(6) in clause (xii), by inserting ‘‘and progress
toward universal engagement’’ after ‘‘participation
rates’’;
(7) in clause (xiii), by striking ‘‘type and’’ be-
fore ‘‘amount of assistance’’;
(8) in clause (xvi), by striking subclause (II)
and redesignating subclauses (III) through (V) as
subclauses (II) through (IV), respectively; and
(9) 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
the birth of the child, and if the parents
were not then married, whether the pater-
nity of the child has been established.’’.
(b) USE OF SAMPLES.—Section 411(a)(1)(B) (42
U.S.C. 611(a)(1)(B)) is amended—
(1) in clause (i)—
(A) by striking ‘‘a sample’’ and inserting
‘‘samples’’; and
(B) by inserting before the period ‘‘, except
that the Secretary may designate core data ele-
ments that must be reported on all families’’;
and
(2) in clause (ii), by striking ‘‘funded under this
part’’ and inserting ‘‘described in subparagraph
(A)’’.
(c) REPORT ON FAMILIES THAT BECOME INELI-
GIBLE TO RECEIVE ASSISTANCE.—Section 411(a) (42
U.S.C. 611(a)) is amended—
(1) by striking paragraph (5);
(2) by redesignating paragraph (6) as para-
graph (5); and
(3) by inserting after paragraph (5) (as so re-
designated) the following:
‘‘(6) REPORT ON FAMILIES THAT BECOME IN-
ELIGIBLE TO RECEIVE ASSISTANCE.—The report re-
quired by paragraph (1) for a fiscal quarter shall in-
clude for each month in the quarter the number of
families and total number of individuals that, during
the month, became ineligible to receive assistance
under the State program funded under this part
(broken down by the number of families that become
so ineligible due to earnings, changes in family com-
position that result in increased earnings, sanctions,
time limits, or other specified reasons).’’.
(d) REGULATIONS.—Section 411(a)(7) (42 U.S.C.
611(a)(7)) is amended—
(1) by inserting ‘‘and to collect the necessary
data’’ before ‘‘with respect to which reports’’;
(2) by striking ‘‘subsection’’ and inserting ‘‘sec-
tion’’; and
(3) by striking ‘‘in defining the data elements’’
and all that follows and inserting ‘‘, the National
Governors’ Association, the American Public Human
Services Association, the National Conference of
State Legislatures, and others in defining the data
elements.’’.
(e) ADDITIONAL REPORTS BY STATES.—Section 411
(42 U.S.C. 611) is amended—
(1) by redesignating subsection (b) as sub-
section (e); and
(2) by inserting after subsection (a) the fol-
lowing:
‘‘(b) ANNUAL REPORTS ON PROGRAM CHARACTERIS-
TICS.—Not later than 90 days after the end of fiscal year
2004 and each succeeding fiscal year, each eligible State
shall submit to the Secretary a report on the characteris-
tics of the State program funded under this part and other
State programs funded with qualified State expenditures
(as defined in section 409(a)(7)(B)(i)). The report shall
include, with respect to each such program, the program
name, a description of program activities, the program
purpose, the program eligibility criteria, the sources of
program funding, the number of program beneficiaries,
sanction policies, and any program work requirements.
‘‘(c) MONTHLY REPORTS ON CASELOAD.—Not later
than 3 months after the end of a calendar month that
begins 1 year or more after the enactment of this sub-
section, each eligible State shall submit to the Secretary
report on the number of families and total number of indi-
viduals receiving assistance in the calendar month under
the State program funded under this part.
‘‘(d) ANNUAL REPORT ON PERFORMANCE IMPROVE-
MENT.—Beginning with fiscal year 2004, not later than
January 1 of each fiscal year, each eligible State shall sub-
mit to the Secretary a report on achievement and improve-
ment during the preceding fiscal year under the numerical
performance goals and measures under the State program
funded under this part with respect to each of the matters
described in section 402(a)(1)(A)(v).’’.
(f) ANNUAL REPORTS TO CONGRESS BY THE SEC-
RETARY.—Section 411(e), as so redesignated by sub-
section (e) of this section, is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘and each fiscal year thereafter’’ and insert-
ing ‘‘and by July 1 of each fiscal year thereafter’’;
(2) in paragraph (2), by striking ‘‘families ap-
plying for assistance,’’ and by striking the last
comma; and
(3) in paragraph (3), by inserting ‘‘and other
programs funded with qualified State expenditures
(as defined in section 409(a)(7)(B)(i))’’ before the
semicolon.
(g) INCREASED ANALYSIS OF STATE SINGLE AUDIT
REPORTS.—Section 411 (42 U.S.C. 611) is amended by
adding at the end the following:
‘‘(f) INCREASED ANALYSIS OF STATE SINGLE AUDIT
REPORTS.—
‘‘(1) IN GENERAL.—Within 3 months after a
State submits to the Secretary a report pursuant to
section 7502(a)(1)(A) of title 31, United States
Code, the Secretary shall analyze the report for the
purpose of identifying the extent and nature of prob-
lems related to the oversight by the State of non-
governmental entities with respect to contracts en-
tered into by such entities with the State program
funded under this part, and determining what addi-
tional actions may be appropriate to help prevent
and correct the problems.
‘‘(2) INCLUSION OF PROGRAM OVERSIGHT SEC-
TION IN ANNUAL REPORT TO THE CONGRESS.—The
Secretary shall include in each report under sub-
section (a) a section on oversight of State programs
funded under this part, including findings on the ex-
tent and nature of the problems referred to in para-
graph (1), actions taken to resolve the problems, and
to the extent the Secretary deems appropriate make
recommendations on changes needed to resolve the
problems.’’.
SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY IN-
DIAN TRIBES.
(a) TRIBAL FAMILY ASSISTANCE GRANT.—Section
412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by
striking ‘‘1997, 1998, 1999, 2000, 2001, and 2002’’ and
inserting ‘‘2003 through 2007’’.
(b) GRANTS FOR INDIAN TRIBES THAT RECEIVED
JOBS
FUNDS.—Section
412(a)(2)(A)
(42
U.S.C.
612(a)(2)(A)) is amended by striking ‘‘1997, 1998, 1999,
2000, 2001, and 2002’’ and inserting ‘‘2003 through
2007’’.
SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
(a)
SECRETARY’S
FUND
FOR
RESEARCH,
DEM-
ONSTRATIONS,
AND TECHNICAL ASSISTANCE.—Section
413 (42 U.S.C. 613), as amended by section 112(c) of
this Act, is further amended by adding at the end the fol-
lowing:
‘‘(l) FUNDING FOR RESEARCH, DEMONSTRATIONS,
AND TECHNICAL ASSISTANCE.—
‘‘(1) IN GENERAL.—Out of any money in the
Treasury of the United States not otherwise appro-
priated, there are appropriated $102,000,000 for
each of fiscal years 2003 through 2007, which shall
be available to the Secretary for the purpose of con-
ducting and supporting research and demonstration
projects by public or private entities, and providing
technical assistance to States, Indian tribal organi-
zations, and such other entities as the Secretary
may specify that are receiving a grant under this
part, which shall be expended primarily on activities
described in section 403(a)(2)(B), and which shall
be in addition to any other funds made available
under this part.
‘‘(2)
SET
ASIDE
FOR
DEMONSTRATION
PROJECTS
FOR
COORDINATION
OF
PROVISION
OF
CHILD WELFARE AND TANF SERVICES TO TRIBAL
FAMILIES AT RISK OF CHILD ABUSE OR NEGLECT.—
‘‘(A) IN GENERAL.—Of the amounts made
available under paragraph (1) for a fiscal year,
$2,000,000 shall be awarded on a competitive
basis to fund demonstration projects designed
to test the effectiveness of tribal governments
or tribal consortia in coordinating the provision
to tribal families at risk of child abuse or ne-
glect of child welfare services and services
under tribal programs funded under this part.
‘‘(B) USE OF FUNDS.—A grant made to
such a project shall be used—
‘‘(i) to improve case management for
families eligible for assistance from such a
tribal program;
‘‘(ii) for supportive services and as-
sistance to tribal children in out-of-home
placements and the tribal families caring
for such children, including families who
adopt such children; and
‘‘(iii) for prevention services and as-
sistance to tribal families at risk of child
abuse and neglect.
‘‘(C) REPORTS.—The Secretary may re-
quire a recipient of funds awarded under this
paragraph to provide the Secretary with such
information as the Secretary deems relevant to
enable the Secretary to facilitate and oversee
the administration of any project for which
funds are provided under this paragraph.’’.
(b) FUNDING OF STUDIES AND DEMONSTRATIONS.—
Section 413(h)(1) (42 U.S.C. 613(h)(1)) is amended in
the matter preceding subparagraph (A) by striking ‘‘1997
through 2002’’ and inserting ‘‘2003 through 2007’’.
(c) REPORT ON ENFORCEMENT OF CERTAIN AFFIDA-
VITS OF SUPPORT AND SPONSOR DEEMING.—Not later
than March 31, 2004, the Secretary of Health and Human
Services, in consultation with the Attorney General, shall
submit to the Congress a report on the enforcement of
affidavits of support and sponsor deeming as required by
section 421, 422, and 432 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996.
(d) REPORT ON COORDINATION.—Not later than 6
months after the date of the enactment of this Act, the
Secretary of Health and Human Services and the Sec-
retary of Labor shall jointly submit a report to the Con-
gress describing common or conflicting data elements,
definitions, performance measures, and reporting require-
ments in the Workforce Investment Act of 1998 and part
A of title IV of the Social Security Act, and, to the degree
each Secretary deems appropriate, at the discretion of ei-
ther Secretary, any other program administered by the re-
spective Secretary, to allow greater coordination between
the welfare and workforce development systems.
SEC. 116. STUDIES BY THE CENSUS BUREAU AND THE GEN-
ERAL ACCOUNTING OFFICE.
(a) CENSUS BUREAU STUDY.—
(1) IN GENERAL.—Section 414(a) (42 U.S.C.
614(a)) is amended to read as follows:
‘‘(a) IN GENERAL.—The Bureau of the Census shall
implement a new longitudinal survey of program dynam-
ics, developed in consultation with the Secretary and made
available to interested parties, to allow for the assessment
of the outcomes of continued welfare reform on the eco-
nomic and child well-being of low-income families with
children, including those who received assistance or serv-
ices from a State program funded under this part, and,
to the extent possible, shall provide State representative
samples. The content of the survey should include such
information as may be necessary to examine the issues of
out-of-wedlock childbearing, marriage, welfare dependency
and compliance with work requirements, the beginning
and ending of spells of assistance, work, earnings and em-
ployment stability, and the well-being of children.’’.
(2)
APPROPRIATION.—Section
414(b)
(42
U.S.C. 614(b)) is amended by striking ‘‘1996,’’ and
all that follows through ‘‘2002’’ and inserting ‘‘2003
through 2007’’.
(b) GAO STUDY.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct a study to determine
the combined effect of the phase-out rates for Fed-
eral programs and policies which provide support to
low-income families and individuals as they move
from welfare to work, at all earning levels up to
$35,000 per year, for at least 5 States including
Wisconsin and California, and any potential dis-
incentives the combined phase-out rates create for
families to achieve independence or to marry.
(2) REPORT.—Not later than 1 year after the
date of the enactment of this subsection, the Comp-
troller General shall submit a report to Congress
containing the results of the study conducted under
this section and, as appropriate, any recommenda-
tions consistent with the results.
SEC. 117. DEFINITION OF ASSISTANCE.
(a) IN GENERAL.—Section 419 (42 U.S.C. 619) is
amended by adding at the end the following:
‘‘(6) ASSISTANCE.—
‘‘(A) IN GENERAL.—The term ‘assistance’
means payment, by cash, voucher, or other
means, to or for an individual or family for the
purpose of meeting a subsistence need of the in-
dividual or family (including food, clothing,
shelter, and related items, but not including
costs of transportation or child care).
‘‘(B) EXCEPTION.—The term ‘assistance’
does not include a payment described in sub-
paragraph (A) to or for an individual or family
on a short-term, nonrecurring basis (as defined
by the State in accordance with regulations pre-
scribed by the Secretary).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is
amended by striking ‘‘assistance’’ and inserting
‘‘aid’’.
(2) Section 404(f) (42 U.S.C. 604(f)) is amend-
ed by striking ‘‘assistance’’ and inserting ‘‘benefits
or services’’.
(3)
Section
408(a)(5)(B)(i)
(42
U.S.C.
608(a)(5)(B)(i)) is amended in the heading by strik-
ing ‘‘ASSISTANCE’’ and inserting ‘‘AID’’.
(4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is
amended by striking ‘‘assistance’’ and inserting
‘‘aid’’.
SEC. 118. TECHNICAL CORRECTIONS.
(a)
Section
409(c)(2)
(42
U.S.C.
609(c)(2))
is
amended by inserting a comma after ‘‘appropriate’’.
(b)
Section
411(a)(1)(A)(ii)(III)
(42
U.S.C.
611(a)(1)(A)(ii)(III)) is amended by striking the last close
parenthesis.
(c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is
amended by striking ‘‘section’’ and inserting ‘‘sections’’.
(d)(1) Section 413 (42 U.S.C. 613) is amended by
striking subsection (g) and redesignating subsections (h)
through (j) and subsections (k) and (l) (as added by sec-
tions 112(c) and 115(a) of this Act, respectively) as sub-
sections (g) through (k), respectively.
(2) Each of the following provisions is amended by
striking ‘‘413(j)’’ and inserting ‘‘413(i)’’:
(A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C.
603(a)(5)(A)(ii)(III)).
(B)
Section
403(a)(5)(F)
(42
U.S.C.
603(a)(5)(F)).
(C)
Section
403(a)(5)(G)(ii)
(42
U.S.C.
603(a)(5)(G)(ii)).
(D)
Section
412(a)(3)(B)(iv)
(42
U.S.C.
612(a)(3)(B)(iv)).
SEC. 119. FATHERHOOD PROGRAM.
(a) SHORT TITLE.—This section may be cited as the
‘‘Promotion and Support of Responsible Fatherhood and
Healthy Marriage Act of 2002’’.
(b) FATHERHOOD PROGRAM.—
(1) IN GENERAL.—Title I of the Personal Re-
sponsibility and Work Opportunity Reconciliation
Act of 1996 (Public Law 104–193) is amended by
adding at the end the following:
‘‘SEC. 117. FATHERHOOD PROGRAM.
‘‘(a) IN GENERAL.—Title IV (42 U.S.C. 601–679b)
is amended by inserting after part B the following:
‘PART C—FATHERHOOD PROGRAM
‘SEC. 441. FINDINGS AND PURPOSES.
‘(a) FINDINGS.—The Congress finds that there is
substantial evidence strongly indicating the urgent need
to promote and support involved, committed, and respon-
sible fatherhood, and to encourage and support healthy
marriages between parents raising children, including data
demonstrating the following:
‘(1) In approximately 90 percent of cases where
a parent is absent, that parent is the father.
‘(2) By some estimates, 60 percent of children
born in the 1990’s will spend a significant portion
of their childhood in a home without a father.
‘(3) Nearly 75 percent of children in single-par-
ent homes will experience poverty before they are 11
years old, compared with only 20 percent of children
in 2-parent families.
‘(4) Low income is positively correlated with
children’s difficulties with education, social adjust-
ment, and delinquency, and single-parent households
constitute a disproportionate share of low-income
households.
‘(5) Where families (whether intact or with a
parent absent) are living in poverty, a significant
factor is the father’s lack of job skills.
‘(6) Children raised in 2-parent married fami-
lies, on average, fare better as a group in key areas,
including better school performance, reduced rates of
substance
abuse,
crime,
and
delinquency,
fewer
health, emotional, and behavioral problems, lower
rates of teenage sexual activity, less risk of abuse or
neglect, and lower risk of teen suicide.
‘(7) Committed and responsible fathering dur-
ing infancy and early childhood contributes to the
development of emotional security, curiosity, and
math and verbal skills.
‘(8) An estimated 24,000,000 children (33.5
percent) live apart from their biological father.
‘(9) A recent national survey indicates that of
all children under age 18 not living with their bio-
logical father, 29 percent had not seen their father
even once in the last 12 months.
‘(b) PURPOSES.—The purposes of this part are:
‘(1) To provide for projects and activities by
public entities and by nonprofit community entities,
including religious organizations, designed to test
promising approaches to accomplishing the following
objectives:
‘(A) Promoting responsible, caring, and ef-
fective
parenting
through
counseling,
men-
toring, and parenting education, dissemination
of educational materials and information on
parenting skills, encouragement of positive fa-
ther involvement, including the positive involve-
ment of nonresident fathers, and other meth-
ods.
‘(B) Enhancing the abilities and commit-
ment of unemployed or low-income fathers to
provide material support for their families and
to avoid or leave welfare programs by assisting
them to take full advantage of education, job
training, and job search programs, to improve
work habits and work skills, to secure career
advancement by activities such as outreach and
information dissemination, coordination, as ap-
propriate, with employment services and job
training programs, including the One-Stop de-
livery system established under title I of the
Workforce Investment Act of 1998, encourage-
ment and support of timely payment of current
child support and regular payment toward past
due child support obligations in appropriate
cases, and other methods.
‘(C) Improving fathers’ ability to effec-
tively manage family business affairs by means
such as education, counseling, and mentoring in
matters
including
household
management,
budgeting, banking, and handling of financial
transactions,
time
management,
and
home
maintenance.
‘(D) Encouraging and supporting healthy
marriages and married fatherhood through such
activities as premarital education, including the
use of premarital inventories, marriage prepara-
tion programs, skills-based marriage education
programs, marital therapy, couples counseling,
divorce education and reduction programs, di-
vorce mediation and counseling, relationship
skills enhancement programs, including those
designed to reduce child abuse and domestic vi-
olence, and dissemination of information about
the benefits of marriage for both parents and
children.
‘(2) Through the projects and activities de-
scribed in paragraph (1), to improve outcomes for
children with respect to measures such as increased
family
income
and
economic
security,
improved
school performance, better health, improved emo-
tional and behavioral stability and social adjustment,
and reduced risk of delinquency, crime, substance
abuse, child abuse and neglect, teen sexual activity,
and teen suicide.
‘(3) To evaluate the effectiveness of various ap-
proaches and to disseminate findings concerning out-
comes and other information in order to encourage
and facilitate the replication of effective approaches
to accomplishing these objectives.
‘SEC. 442. DEFINITIONS.
‘In this part, the terms ‘‘Indian tribe’’ and ‘‘tribal
organization’’ have the meanings given them in sub-
sections (e) and (l), respectively, of section 4 of the Indian
Self-Determination and Education Assistance Act.
‘SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.
‘(a) IN GENERAL.—The Secretary may make grants
for fiscal years 2003 through 2007 to public and nonprofit
community entities, including religious organizations, and
to Indian tribes and tribal organizations, for demonstra-
tion service projects and activities designed to test the ef-
fectiveness of various approaches to accomplish the objec-
tives specified in section 441(b)(1).
‘(b) ELIGIBILITY CRITERIA
FOR FULL SERVICE
GRANTS.—In order to be eligible for a grant under this
section, except as specified in subsection (c), an entity
shall submit an application to the Secretary containing the
following:
‘(1)
PROJECT
DESCRIPTION.—A
statement
including—
‘(A) a description of the project and how
it will be carried out, including the geographical
area to be covered and the number and charac-
teristics of clients to be served, and how it will
address each of the 4 objectives specified in sec-
tion 441(b)(1); and
‘(B) a description of the methods to be
used by the entity or its contractor to assess
the extent to which the project was successful
in accomplishing its specific objectives and the
general objectives specified in section 441(b)(1).
‘(2)
EXPERIENCE
AND
QUALIFICATIONS.—A
demonstration of ability to carry out the project, by
means such as demonstration of experience in suc-
cessfully carrying out projects of similar design and
scope, and such other information as the Secretary
may find necessary to demonstrate the entity’s ca-
pacity to carry out the project, including the entity’s
ability to provide the non-Federal share of project
resources.
‘(3) ADDRESSING CHILD ABUSE AND NEGLECT
AND
DOMESTIC
VIOLENCE.—A description of how
the entity will assess for the presence of, and inter-
vene to resolve, domestic violence and child abuse
and neglect, including how the entity will coordinate
with State and local child protective service and do-
mestic violence programs.
‘(4)
ADDRESSING
CONCERNS
RELATING
TO
SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A com-
mitment to make available to each individual partici-
pating in the project education about alcohol, to-
bacco, and other drugs, and about the health risks
associated with abusing such substances, and infor-
mation about diseases and conditions transmitted
through substance abuse and sexual contact, includ-
ing HIV/AIDS, and to coordinate with providers of
services addressing such problems, as appropriate.
‘(5)
COORDINATION
WITH
SPECIFIED
PRO-
GRAMS.—An undertaking to coordinate, as appro-
priate, with State and local entities responsible for
the programs under parts A, B, and D of this title,
including programs under title I of the Workforce
Investment Act of 1998 (including the One-Stop de-
livery system), and such other programs as the Sec-
retary may require.
‘(6) RECORDS,
REPORTS,
AND
AUDITS.—An
agreement to maintain such records, make such re-
ports, and cooperate with such reviews or audits as
the Secretary may find necessary for purposes of
oversight of project activities and expenditures.
‘(7) SELF-INITIATED EVALUATION.—If the enti-
ty elects to contract for independent evaluation of
the project (part or all of the cost of which may be
paid for using grant funds), a commitment to sub-
mit to the Secretary a copy of the evaluation report
within 30 days after completion of the report and
not more than 1 year after completion of the project.
‘(8) COOPERATION WITH SECRETARY’S OVER-
SIGHT AND EVALUATION.—An agreement to cooper-
ate with the Secretary’s evaluation of projects as-
sisted under this section, by means including ran-
dom assignment of clients to service recipient and
control groups, if determined by the Secretary to be
appropriate, and affording the Secretary access to
the project and to project-related records and docu-
ments, staff, and clients.
‘(c) ELIGIBILITY CRITERIA FOR LIMITED PURPOSE
GRANTS.—In order to be eligible for a grant under this
section in an amount under $25,000 per fiscal year, an
entity shall submit an application to the Secretary con-
taining the following:
‘(1) PROJECT DESCRIPTION.—A description of
the project and how it will be carried out, including
the number and characteristics of clients to be
served, the proposed duration of the project, and
how it will address at least 1 of the 4 objectives
specified in section 441(b)(1).
‘(2)
QUALIFICATIONS.—Such
information
as
the Secretary may require as to the capacity of the
entity to carry out the project, including any pre-
vious experience with similar activities.
‘(3)
COORDINATION
WITH
RELATED
PRO-
GRAMS.—As required by the Secretary in appro-
priate cases, an undertaking to coordinate and co-
operate with State and local entities responsible for
specific programs relating to the objectives of the
project including, as appropriate, jobs programs and
programs serving children and families.
‘(4) RECORDS,
REPORTS,
AND
AUDITS.—An
agreement to maintain such records, make such re-
ports, and cooperate with such reviews or audits as
the Secretary may find necessary for purposes of
oversight of project activities and expenditures.
‘(5) COOPERATION WITH SECRETARY’S OVER-
SIGHT AND EVALUATION.—An agreement to cooper-
ate with the Secretary’s evaluation of projects as-
sisted under this section, by means including afford-
ing the Secretary access to the project and to
project-related records and documents, staff, and cli-
ents.
‘(d) CONSIDERATIONS IN AWARDING GRANTS.—
‘(1) DIVERSITY
OF
PROJECTS.—In awarding
grants under this section, the Secretary shall seek to
achieve a balance among entities of differing sizes,
entities in differing geographic areas, entities in
urban and in rural areas, and entities employing dif-
fering methods of achieving the purposes of this sec-
tion, including working with the State agency re-
sponsible for the administration of part D to help fa-
thers satisfy child support arrearage obligations.
‘(2)
PREFERENCE
FOR
PROJECTS
SERVING
LOW-INCOME FATHERS.—In awarding grants under
this section, the Secretary may give preference to
applications for projects in which a majority of the
clients to be served are low-income fathers.
‘(e) FEDERAL SHARE.—
‘(1) IN GENERAL.—Grants for a project under
this section for a fiscal year shall be available for a
share of the cost of such project in such fiscal year
equal to—
‘(A) up to 80 percent (or up to 90 percent,
if the entity demonstrates to the Secretary’s
satisfaction circumstances limiting the entity’s
ability to secure non-Federal resources) in the
case of a project under subsection (b); and
‘(B) up to 100 percent, in the case of a
project under subsection (c).
‘(2) NON-FEDERAL
SHARE.—The non-Federal
share may be in cash or in kind. In determining the
amount of the non-Federal share, the Secretary may
attribute fair market value to goods, services, and
facilities contributed from non-Federal sources.
‘SEC.
444.
MULTICITY,
MULTISTATE
DEMONSTRATION
PROJECTS.
‘(a) IN GENERAL.—The Secretary may make grants
under this section for fiscal years 2003 through 2007 to
eligible entities (as specified in subsection (b)) for 2
multicity, multistate projects demonstrating approaches to
achieving the objectives specified in section 441(b)(1). One
of the projects shall test the use of married couples to
deliver program services.
‘(b) ELIGIBLE ENTITIES.—An entity eligible for a
grant under this section must be a national nonprofit fa-
therhood promotion organization that meets the following
requirements:
‘(1)
EXPERIENCE
WITH
FATHERHOOD
PRO-
GRAMS.—The organization must have substantial ex-
perience in designing and successfully conducting
programs that meet the purposes described in sec-
tion 441.
‘(2)
EXPERIENCE
WITH
MULTICITY,
MULTISTATE PROGRAMS AND GOVERNMENT COORDI-
NATION.—The organization must have experience in
simultaneously conducting such programs in more
than 1 major metropolitan area in more than 1
State and in coordinating such programs, where ap-
propriate, with State and local government agencies
and private, nonprofit agencies (including commu-
nity-based and religious organizations), including
State or local agencies responsible for child support
enforcement and workforce development.
‘(c) APPLICATION REQUIREMENTS.—In order to be
eligible for a grant under this section, an entity must sub-
mit to the Secretary an application that includes the fol-
lowing:
‘(1) QUALIFICATIONS.—
‘(A) ELIGIBLE ENTITY.—A demonstration
that the entity meets the requirements of sub-
section (b).
‘(B) OTHER.—Such other information as
the Secretary may find necessary to dem-
onstrate the entity’s capacity to carry out the
project, including the entity’s ability to provide
the non-Federal share of project resources.
‘(2) PROJECT DESCRIPTION.—A description of
and commitments concerning the project design, in-
cluding the following:
‘(A) IN GENERAL.—A detailed description
of the proposed project design and how it will
be carried out, which shall—
‘(i) provide for the project to be con-
ducted in at least 3 major metropolitan
areas;
‘(ii) state how it will address each of
the
objectives
specified
in
section
441(b)(1);
‘(iii) demonstrate that there is a suffi-
cient number of potential clients to allow
for the random selection of individuals to
participate in the project and for compari-
sons with appropriate control groups com-
posed of individuals who have not partici-
pated in such projects; and
‘(iv) demonstrate that the project is
designed to direct a majority of project re-
sources to activities serving low-income fa-
thers (but the project need not make serv-
ices available on a means-tested basis).
‘(B) OVERSIGHT,
EVALUATION,
AND
AD-
JUSTMENT
COMPONENT.—An agreement that
the entity—
‘(i) in consultation with the evaluator
selected pursuant to section 445, and as
required by the Secretary, will modify the
project design, initially and (if necessary)
subsequently throughout the duration of
the project, in order to facilitate ongoing
and
final
oversight
and
evaluation
of
project operation and outcomes (by means
including, to the maximum extent feasible,
random assignment of clients to service re-
cipient and control groups), and to provide
for mid-course adjustments in project de-
sign indicated by interim evaluations;
‘(ii) will submit to the Secretary re-
vised descriptions of the project design as
modified in accordance with clause (i); and
‘(iii) will cooperate fully with the Sec-
retary’s ongoing oversight and ongoing and
final evaluation of the project, by means
including affording the Secretary access to
the project and to project-related records
and documents, staff, and clients.
‘(3) ADDRESSING CHILD ABUSE AND NEGLECT
AND
DOMESTIC
VIOLENCE.—A description of how
the entity will assess for the presence of, and inter-
vene to resolve, domestic violence and child abuse
and neglect, including how the entity will coordinate
with State and local child protective service and do-
mestic violence programs.
‘(4)
ADDRESSING
CONCERNS
RELATING
TO
SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A com-
mitment to make available to each individual partici-
pating in the project education about alcohol, to-
bacco, and other drugs, and about the health risks
associated with abusing such substances, and infor-
mation about diseases and conditions transmitted
through substance abuse and sexual contact, includ-
ing HIV/AIDS, and to coordinate with providers of
services addressing such problems, as appropriate.
‘(5)
COORDINATION
WITH
SPECIFIED
PRO-
GRAMS.—An undertaking to coordinate, as appro-
priate, with State and local entities responsible for
the programs funded under parts A, B, and D of
this title, programs under title I of the Workforce
Investment Act of 1998 (including the One-Stop de-
livery system), and such other programs as the Sec-
retary may require.
‘(6) RECORDS,
REPORTS,
AND
AUDITS.—An
agreement to maintain such records, make such re-
ports, and cooperate with such reviews or audits (in
addition to those required under the preceding provi-
sions of paragraph (2)) as the Secretary may find
necessary for purposes of oversight of project activi-
ties and expenditures.
‘(d) FEDERAL SHARE.—
‘(1) IN GENERAL.—Grants for a project under
this section for a fiscal year shall be available for up
to 80 percent of the cost of such project in such fis-
cal year.
‘(2) NON-FEDERAL
SHARE.—The non-Federal
share may be in cash or in kind. In determining the
amount of the non-Federal share, the Secretary may
attribute fair market value to goods, services, and
facilities contributed from non-Federal sources.
‘SEC. 445. EVALUATION.
‘(a) IN GENERAL.—The Secretary, directly or by con-
tract or cooperative agreement, shall evaluate the effec-
tiveness of service projects funded under sections 443 and
444 from the standpoint of the purposes specified in sec-
tion 441(b)(1).
‘(b)
EVALUATION
METHODOLOGY.—Evaluations
under this section shall—
‘(1) include, to the maximum extent feasible,
random assignment of clients to service delivery and
control groups and other appropriate comparisons of
groups of individuals receiving and not receiving
services;
‘(2) describe and measure the effectiveness of
the projects in achieving their specific project goals;
and
‘(3) describe and assess, as appropriate, the im-
pact of such projects on marriage, parenting, domes-
tic violence, child abuse and neglect, money manage-
ment, employment and earnings, payment of child
support, and child well-being, health, and education.
‘(c) EVALUATION REPORTS.—The Secretary shall
publish the following reports on the results of the evalua-
tion:
‘(1) An implementation evaluation report cov-
ering the first 24 months of the activities under this
part to be completed by 36 months after initiation
of such activities.
‘(2) A final report on the evaluation to be com-
pleted by September 30, 2010.
‘SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.
‘The Secretary is authorized, by grant, contract, or
cooperative agreement, to carry out projects and activities
of national significance relating to fatherhood promotion,
including—
‘(1) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—Assisting
States,
communities,
and
private entities, including religious organizations, in
efforts to promote and support marriage and respon-
sible fatherhood by collecting, evaluating, developing,
and making available (through the Internet and by
other means) to all interested parties information re-
garding approaches to accomplishing the objectives
specified in section 441(b)(1).
‘(2) MEDIA CAMPAIGN.—Developing, promoting,
and distributing to interested States, local govern-
ments, public agencies, and private nonprofit organi-
zations, including charitable and religious organiza-
tions, a media campaign that promotes and encour-
ages involved, committed, and responsible fatherhood
and married fatherhood.
‘(3) TECHNICAL ASSISTANCE.—Providing tech-
nical assistance, including consultation and training,
to public and private entities, including community
organizations and faith-based organizations, in the
implementation of local fatherhood promotion pro-
grams.
‘(4) RESEARCH.—Conducting research related
to the purposes of this part.
‘SEC. 447. NONDISCRIMINATION.
‘The projects and activities assisted under this part
shall be available on the same basis to all fathers and ex-
pectant fathers able to benefit from such projects and ac-
tivities, including married and unmarried fathers and cus-
todial and noncustodial fathers, with particular attention
to low-income fathers, and to mothers and expectant
mothers on the same basis as to fathers.
‘SEC.
448.
AUTHORIZATION
OF
APPROPRIATIONS;
RES-
ERVATION FOR CERTAIN PURPOSE.
‘(a) AUTHORIZATION.—There are authorized to be
appropriated $20,000,000 for each of fiscal years 2003
through 2007 to carry out the provisions of this part.
‘(b) RESERVATION.—Of the amount appropriated
under this section for each fiscal year, not more than 15
percent shall be available for the costs of the multicity,
multicounty, multistate demonstration projects under sec-
tion 444, evaluations under section 445, and projects of
national significance under section 446.’.
‘‘(b) INAPPLICABILITY OF EFFECTIVE DATE PROVI-
SIONS.—Section 116 shall not apply to the amendment
made by subsection (a) of this section.’’.
(2) CLERICAL AMENDMENT.—Section 2 of such
Act is amended in the table of contents by inserting
after the item relating to section 116 the following
new item:
‘‘Sec. 117. Fatherhood program.’’.
SEC. 120. STATE OPTION TO MAKE TANF PROGRAMS MAN-
DATORY PARTNERS WITH ONE-STOP EMPLOY-
MENT TRAINING CENTERS.
Section 408 of the Social Security Act (42 U.S.C.
608) is amended by adding at the end the following:
‘‘(h) STATE OPTION TO MAKE TANF PROGRAMS
MANDATORY PARTNERS WITH ONE-STOP EMPLOYMENT
TRAINING CENTERS.—For purposes of section 121(b) of
the Workforce Investment Act of 1998, a State program
funded under part A of title IV of the Social Security Act
shall be considered a program referred to in paragraph
(1)(B) of such section, unless, after the date of the enact-
ment of this subsection, the Governor of the State notifies
the Secretaries of Health and Human Services and Labor
in writing of the decision of the Governor not to make
the State program a mandatory partner.’’.
SEC. 121. SENSE OF THE CONGRESS.
It is the sense of the Congress that a State welfare-
to-work program should include a mentoring program.
TITLE II—CHILD CARE
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Caring for Children
Act of 2002’’.
SEC. 202. GOALS.
(a) GOALS.—Section 658A(b) of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9801
note) is amended—
(1) in paragraph (3) by striking ‘‘encourage’’
and inserting ‘‘assist’’,
(2) by amending paragraph (4) to read as fol-
lows:
‘‘(4) to assist State to provide child care to low-
income parents;’’,
(3) by redesignating paragraph (5) as para-
graph (7), and
(4) by inserting after paragraph (4) the fol-
lowing:
‘‘(5) to encourage States to improve the quality
of child care available to families;
‘‘(6) to promote school readiness by encour-
aging the exposure of young children in child care to
nurturing environments and developmentally-appro-
priate activities, including activities to foster early
cognitive and literacy development; and’’.
(b)
CONFORMING
AMENDMENT.—Section
658E(c)(3)(B) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858c(c)(3)(B)) is amended
by striking ‘‘through (5)’’ and inserting ‘‘through (7)’’.
SEC. 203. AUTHORIZATION OF APPROPRIATIONS.
Section 658B of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858) is amended—
(1) by striking ‘‘is’’ and inserting ‘‘are’’, and
(2) by striking ‘‘$1,000,000,000 for each of the
fiscal years 1996 through 2002’’ and inserting
‘‘$2,300,000,000
for
fiscal
year
2003,
$2,500,000,000
for
fiscal
year
2004,
$2,700,000,000
for
fiscal
year
2005,
$2,900,000,000
for
fiscal
year
2006,
and
$3,100,000,000 for fiscal year 2007’’.
SEC. 204. APPLICATION AND PLAN.
Section 658E(c)(2) of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C. 9858C(c)(2))
is amended—
(1) by amending subparagraph (D) to read as
follows:
‘‘(D) CONSUMER AND CHILD CARE PRO-
VIDER EDUCATION INFORMATION.—Certify that
the State will collect and disseminate, through
resource and referral services and other means
as determined by the State, to parents of eligi-
ble children, child care providers, and the gen-
eral public, information regarding—
‘‘(i) the promotion of informed child
care choices, including information about
the quality and availability of child care
services;
‘‘(ii) research and best practices on
children’s development, including early cog-
nitive development;
‘‘(iii) the availability of assistance to
obtain child care services; and
‘‘(iv) other programs for which fami-
lies that receive child care services for
which
financial
assistance
is
provided
under this subchapter may be eligible, in-
cluding the food stamp program, the WIC
program under section 17 of the Child Nu-
trition Act of 1966, the child and adult
care food program under section 17 of the
Richard B. Russell National School Lunch
Act, and the medicaid and CHIP programs
under titles XIX and XXI of the Social Se-
curity Act.’’, and
(2) by inserting after subparagraph (H) the fol-
lowing:
‘‘(I) COORDINATION WITH OTHER EARLY
CHILD CARE SERVICES AND EARLY CHILDHOOD
EDUCATION PROGRAMS.—Demonstrate how the
State is coordinating child care services pro-
vided under this subchapter with Head Start,
Early Reading First, Even Start, Ready-To-
Learn Television, State pre-kindergarten pro-
grams, and other early childhood education pro-
grams to expand accessibility to and continuity
of care and early education without displacing
services provided by the current early care and
education delivery system.
‘‘(J)
PUBLIC-PRIVATE
PARTNERSHIPS.—
Demonstrate how the State encourages partner-
ships with private and other public entities to
leverage existing service delivery systems of
early childhood education and increase the sup-
ply and quality of child care services.
‘‘(K) CHILD CARE SERVICE QUALITY.—
‘‘(i) CERTIFICATION.—For each fiscal
year after fiscal year 2003, certify that
during the then preceding fiscal year the
State was in compliance with section 658G
and describe how funds were used to com-
ply with such section during such pre-
ceding fiscal year.
‘‘(ii) STRATEGY.—For each fiscal year
after fiscal year 2003, contain an outline
of the strategy the State will implement
during such fiscal year for which the State
plan is submitted, to address the quality of
child care services in child care settings
that provide services for which assistance
is made available under this subchapter,
and include in such strategy—
‘‘(I) a statement specifying how
the State will address the activities
described in paragraphs (1), (2), and
(3) of section 658G;
‘‘(II) a description of quantifi-
able, objective measures for evaluating
the quality of child care services sepa-
rately with respect to the activities
listed in each of such paragraphs that
the State will use to evaluate its
progress in improving the quality of
such child care services;
‘‘(III) a list of State-developed
child care service quality targets for
such fiscal year quantified on the
basis of such measures; and
‘‘(IV) for each fiscal year after
fiscal year 2003, a report on the
progress made to achieve such targets
during the then preceding fiscal year.
‘‘(iii)
RULE
OF
CONSTRUCTION.—
Nothing in this subparagraph shall be con-
strued to require that the State apply
measures for evaluating quality to specific
types of child care providers.
‘‘(L) ACCESS TO CARE FOR CERTAIN POPU-
LATIONS.—Demonstrate how the State is ad-
dressing the child care needs of parents eligible
for child care services for which financial assist-
ance is provided under this subchapter who
have children with special needs, work nontradi-
tional hours, or require child care services for
infants or toddlers.’’.
SEC. 205. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD
CARE.
Section 658G of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858e) is amended
to read as follows:
‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF
CHILD CARE SERVICES.
‘‘A State that receives funds to carry out this sub-
chapter for a fiscal year, shall use not less than 6 percent
of the amount of such funds for activities provided
through resource and referral services or other means,
that are designed to improve the quality of child care serv-
ices for which financial assistance is made available under
this subchapter. Such activities include—
‘‘(1) programs that provide training, education,
and other professional development activities to en-
hance the skills of the child care workforce, includ-
ing training opportunities for caregivers in informal
care settings;
‘‘(2) activities within child care settings to en-
hance early learning for young children, to promote
early literacy, and to foster school readiness;
‘‘(3) initiatives to increase the retention and
compensation
of
child
care
providers,
including
tiered reimbursement rates for providers that meet
quality standards as defined by the State; or
‘‘(4) other activities deemed by the State to im-
prove the quality of child care services provided in
such State.’’.
SEC. 206. REPORT BY SECRETARY.
Section 658L of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858j) is amended
to read as follows:
‘‘SEC. 658L. REPORT BY SECRETARY.
‘‘(a) REPORT REQUIRED.—Not later than October 1,
2004, and biennially thereafter, the Secretary shall pre-
pare and submit to the Committee on Education and the
Workforce of the House of Representatives and the Com-
mittee on Health, Education, Labor and Pensions of the
Senate a report that contains the following:
‘‘(1) A summary and analysis of the data and
information provided to the Secretary in the State
reports submitted under section 658K.
‘‘(2) Aggregated statistics on the supply of, de-
mand for, and quality of child care, early education,
and non-school-hours programs.
‘‘(3) An assessment, and where appropriate,
recommendations for the Congress concerning ef-
forts that should be undertaken to improve the ac-
cess of the public to quality and affordable child care
in the United States.
‘‘(b) COLLECTION OF INFORMATION.—The Secretary
may utilize the national child care data system available
through resource and referral organizations at the local,
State, and national level to collect the information re-
quired by subsection (a)(2).
SEC. 207. DEFINITIONS.
Section 658P(4)(B) of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C. 9858N(4)(B))
is amended by striking ‘‘85 percent of the State median
income’’ and inserting ‘‘income levels as established by the
State, prioritized by need,’’.
SEC. 208. ENTITLEMENT FUNDING.
Section
418(a)(3)
(42
U.S.C.
618(a)(3))
is
amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(G) $2,917,000,000 for each of fiscal
years 2003 through 2007.’’.
TITLE III—TAXPAYER
PROTECTIONS
SEC. 301. EXCLUSION FROM GROSS INCOME FOR INTEREST
ON OVERPAYMENTS OF INCOME TAX BY INDI-
VIDUALS.
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically excluded from gross income) is amended
by inserting after section 139 the following new section:
‘‘SEC. 139A. EXCLUSION FROM GROSS INCOME FOR INTER-
EST ON OVERPAYMENTS OF INCOME TAX BY
INDIVIDUALS.
‘‘(a) IN GENERAL.—In the case of an individual,
gross income shall not include interest paid under section
6611 on any overpayment of tax imposed by this subtitle.
‘‘(b) EXCEPTION.—Subsection (a) shall not apply in
the case of a failure to claim items resulting in the over-
payment on the original return if the Secretary determines
that the principal purpose of such failure is to take advan-
tage of subsection (a).
‘‘(c) SPECIAL RULE FOR DETERMINING MODIFIED
ADJUSTED GROSS INCOME.—For purposes of this title,
interest not included in gross income under subsection (a)
shall not be treated as interest which is exempt from tax
for purposes of sections 32(i)(2)(B) and 6012(d) or any
computation in which interest exempt from tax under this
title is added to adjusted gross income.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for part III of subchapter B of chapter 1 of such Code
is amended by inserting after the item relating to section
139 the following new item:
‘‘Sec. 139A. Exclusion from gross income for interest on over-
payments of income tax by individuals.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to interest received after December
31, 2006.
SEC. 302. DEPOSITS MADE TO SUSPEND RUNNING OF IN-
TEREST ON POTENTIAL UNDERPAYMENTS.
(a) IN GENERAL.—Subchapter A of chapter 67 of the
Internal Revenue Code of 1986 (relating to interest on un-
derpayments) is amended by adding at the end the fol-
lowing new section:
‘‘SEC. 6603. DEPOSITS MADE TO SUSPEND RUNNING OF IN-
TEREST
ON
POTENTIAL
UNDERPAYMENTS,
ETC.
‘‘(a) AUTHORITY TO MAKE DEPOSITS OTHER THAN
AS PAYMENT OF TAX.—A taxpayer may make a cash de-
posit with the Secretary which may be used by the Sec-
retary to pay any tax imposed under subtitle A or B or
chapter 41, 42, 43, or 44 which has not been assessed
at the time of the deposit. Such a deposit shall be made
in such manner as the Secretary shall prescribe.
‘‘(b) NO INTEREST IMPOSED.—To the extent that
such deposit is used by the Secretary to pay tax, for pur-
poses of section 6601 (relating to interest on underpay-
ments), the tax shall be treated as paid when the deposit
is made.
‘‘(c) RETURN OF DEPOSIT.—Except in a case where
the Secretary determines that collection of tax is in jeop-
ardy, the Secretary shall return to the taxpayer any
amount of the deposit (to the extent not used for a pay-
ment of tax) which the taxpayer requests in writing.
‘‘(d) PAYMENT OF INTEREST.—
‘‘(1) IN
GENERAL.—For purposes of section
6611 (relating to interest on overpayments), a de-
posit which is returned to a taxpayer shall be treated
as a payment of tax for any period to the extent
(and only to the extent) attributable to a disputable
tax for such period. Under regulations prescribed by
the Secretary, rules similar to the rules of section
6611(b)(2) shall apply.
‘‘(2) DISPUTABLE TAX.—
‘‘(A) IN GENERAL.—For purposes of this
section, the term ‘disputable tax’ means the
amount of tax specified at the time of the de-
posit as the taxpayer’s reasonable estimate of
the maximum amount of any tax attributable to
disputable items.
‘‘(B) SAFE
HARBOR
BASED
ON
30-DAY
LETTER.—In the case of a taxpayer who has
been issued a 30-day letter, the maximum
amount of tax under subparagraph (A) shall
not be less than the amount of the proposed de-
ficiency specified in such letter.
‘‘(3) OTHER
DEFINITIONS.—For purposes of
paragraph (2)—
‘‘(A) DISPUTABLE ITEM.—The term ‘dis-
putable item’ means any item of income, gain,
loss, deduction, or credit if the taxpayer—
‘‘(i) has a reasonable basis for its
treatment of such item, and
‘‘(ii) reasonably believes that the Sec-
retary also has a reasonable basis for dis-
allowing the taxpayer’s treatment of such
item.
‘‘(B) 30-DAY LETTER.—The term ‘30-day
letter’ means the first letter of proposed defi-
ciency which allows the taxpayer an opportunity
for administrative review in the Internal Rev-
enue Service Office of Appeals.
‘‘(4) RATE OF INTEREST.—The rate of interest
allowable under this subsection shall be the Federal
short-term rate determined under section 6621(b),
compounded daily.
‘‘(e) USE OF DEPOSITS.—
‘‘(1) PAYMENT OF TAX.—Except as otherwise
provided by the taxpayer, deposits shall be treated
as used for the payment of tax in the order depos-
ited.
‘‘(2) RETURNS
OF
DEPOSITS.—Deposits shall
be treated as returned to the taxpayer on a last-in,
first-out basis.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter A of chapter 67 of such Code is amended
by adding at the end the following new item:
‘‘Sec. 6603. Deposits made to suspend running of interest on po-
tential underpayments, etc.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to deposits made after the
date of the enactment of this Act.
(2)
COORDINATION
WITH
DEPOSITS
MADE
UNDER REVENUE PROCEDURE 84–58.—In the case of
an amount held by the Secretary of the Treasury or
his delegate on the date of the enactment of this Act
as a deposit in the nature of a cash bond deposit
pursuant to Revenue Procedure 84–58, the date that
the taxpayer identifies such amount as a deposit
made pursuant to section 6603 of the Internal Rev-
enue Code (as added by this Act) shall be treated as
the date such amount is deposited for purposes of
such section 6603.
SEC. 303. PARTIAL PAYMENT OF TAX LIABILITY IN IN-
STALLMENT AGREEMENTS.
(a) IN GENERAL.—
(1) Section 6159(a) of the Internal Revenue
Code of 1986 (relating to authorization of agree-
ments) is amended—
(A) by striking ‘‘satisfy liability for pay-
ment of’’ and inserting ‘‘make payment on’’,
and
(B) by inserting ‘‘full or partial’’ after ‘‘fa-
cilitate’’.
(2) Section 6159(c) of such Code (relating to
Secretary required to enter into installment agree-
ments in certain cases) is amended in the matter
preceding paragraph (1) by inserting ‘‘full’’ before
‘‘payment’’.
(b) REQUIREMENT TO REVIEW PARTIAL PAYMENT
AGREEMENTS EVERY TWO YEARS.—Section 6159 of such
Code is amended by redesignating subsections (d) and (e)
as subsections (e) and (f), respectively, and inserting after
subsection (c) the following new subsection:
‘‘(d) SECRETARY REQUIRED TO REVIEW INSTALL-
MENT AGREEMENTS FOR PARTIAL COLLECTION EVERY
TWO YEARS.—In the case of an agreement entered into
by the Secretary under subsection (a) for partial collection
of a tax liability, the Secretary shall review the agreement
at least once every 2 years.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to agreements entered into on or
after the date of the enactment of this Act.
TITLE IV—CHILD SUPPORT
SEC. 401. FEDERAL MATCHING FUNDS FOR LIMITED PASS
THROUGH OF CHILD SUPPORT PAYMENTS TO
FAMILIES RECEIVING TANF.
(a)
IN
GENERAL.—Section
457(a)
(42
U.S.C.
657(a)) is amended—
(1) in paragraph (1)(A), by inserting ‘‘subject
to paragraph (7)’’ before the semicolon; and
(2) by adding at the end the following:
‘‘(7) FEDERAL MATCHING FUNDS FOR LIMITED
PASS THROUGH OF CHILD SUPPORT PAYMENTS TO
FAMILIES RECEIVING TANF.—Notwithstanding para-
graph (1), a State shall not be required to pay to
the Federal Government the Federal share of an
amount collected during a month on behalf of a fam-
ily that is a recipient of assistance under the State
program funded under part A, to the extent that—
‘‘(A) the State distributes the amount to
the family;
‘‘(B) the total of the amounts so distrib-
uted to the family during the month—
‘‘(i) exceeds the amount (if any) that,
as of December 31, 2001, was required
under State law to be distributed to a fam-
ily under paragraph (1)(B); and
‘‘(ii) does not exceed the greater of—
‘‘(I) $100; or
‘‘(II) $50 plus the amount de-
scribed in clause (i); and
‘‘(C) the amount is disregarded in deter-
mining the amount and type of assistance pro-
vided to the family under the State program
funded under part A.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to amounts distributed on or
after October 1, 2004.
100
SEC. 402. STATE OPTION TO PASS THROUGH ALL CHILD
SUPPORT
PAYMENTS
TO
FAMILIES
THAT
FORMERLY RECEIVED TANF.
(a)
IN
GENERAL.—Section
457(a)
(42
U.S.C.
657(a)), as amended by section 401(a) of this Act, is
amended—
(1) in paragraph (2)(B), in the matter pre-
ceding clause (i), by inserting ‘‘, except as provided
in paragraph (8),’’ after ‘‘shall’’; and
(2) by adding at the end the following:
‘‘(8) STATE
OPTION
TO
PASS
THROUGH
ALL
CHILD SUPPORT PAYMENTS TO FAMILIES THAT FOR-
MERLY RECEIVED TANF.—In lieu of applying para-
graph (2) to any family described in paragraph (2),
a State may distribute to the family any amount col-
lected during a month on behalf of the family.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to amounts distributed on or
after October 1, 2004.
SEC.
403.
MANDATORY
REVIEW
AND
ADJUSTMENT
OF
CHILD SUPPORT ORDERS FOR FAMILIES RE-
CEIVING TANF.
(a)
IN
GENERAL.—Section
466(a)(10)(A)(i)
(42
U.S.C. 666(a)(10)(A)(i)) is amended—
(1) by striking ‘‘parent, or,’’ and inserting
‘‘parent or’’; and
101
(2) by striking ‘‘upon the request of the State
agency under the State plan or of either parent,’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2004.
SEC. 404. MANDATORY FEE FOR SUCCESSFUL CHILD SUP-
PORT COLLECTION FOR FAMILY THAT HAS
NEVER RECEIVED TANF.
(a) IN GENERAL.—Section 454(6)(B) (42 U.S.C.
654(6)(B)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(B)’’;
(2) by redesignating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively;
(3) by adding ‘‘and’’ after the semicolon; and
(4) by adding after and below the end the fol-
lowing new clause:
‘‘(ii) in the case of an individual who has
never received assistance under a State pro-
gram funded under part A and for whom the
State has collected at least $500 of support, the
State shall impose an annual fee of $25 for
each case in which services are furnished, which
shall be retained by the State from support col-
lected on behalf of the individual (but not from
the 1st $500 so collected), paid by the indi-
vidual applying for the services, recovered from
102
the absent parent, or paid by the State out of
its own funds (the payment of which from State
funds shall not be considered as an administra-
tive cost of the State for the operation of the
plan, and shall be considered income to the pro-
gram);’’.
(b) CONFORMING AMENDMENT.—Section 457(a)(3)
(42 U.S.C. 657(a)(3)) is amended to read as follows:
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the State
shall distribute to the family the portion of the
amount so collected that remains after withholding
any fee pursuant to section 454(6)(B)(ii).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2003.
SEC. 405. REPORT ON UNDISTRIBUTED CHILD SUPPORT
PAYMENTS.
Not later than 6 months after the date of the enact-
ment 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 distrib-
uted. The report shall include an estimate of the total
103
amount of such undistributed child support and the aver-
age length of time it takes for such child support to be
distributed. To the extent the Secretary deems appro-
priate, the Secretary shall include in the report rec-
ommendations as to whether additional procedures should
be established at the State or Federal level to expedite
the payment of undistributed child support.
SEC. 406. USE OF NEW HIRE INFORMATION TO ASSIST IN
ADMINISTRATION OF UNEMPLOYMENT COM-
PENSATION PROGRAMS.
(a) IN GENERAL.—Section 453(j) (42 U.S.C. 653(j))
is amended by adding at the end the following:
‘‘(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-
104
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).’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2003.
SEC. 407. DECREASE IN AMOUNT OF CHILD SUPPORT AR-
REARAGE TRIGGERING PASSPORT DENIAL.
(a) IN GENERAL.—Section 452(k)(1) (42 U.S.C.
652(k)(1)) is amended by striking ‘‘$5,000’’ and inserting
‘‘$2,500’’.
(b) CONFORMING AMENDMENT.—Section 454(31)
(42 U.S.C. 654(31)) is amended by striking ‘‘$5,000’’ and
inserting ‘‘$2,500’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2003.
105
SEC. 408. USE OF TAX REFUND INTERCEPT PROGRAM TO
COLLECT PAST-DUE CHILD SUPPORT ON BE-
HALF OF CHILDREN WHO ARE NOT MINORS.
(a) IN GENERAL.—Section 464 (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).
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 2004.
SEC. 409. GARNISHMENT OF COMPENSATION PAID TO VET-
ERANS FOR SERVICE-CONNECTED DISABIL-
ITIES IN ORDER TO ENFORCE CHILD SUP-
PORT OBLIGATIONS.
(a)
IN
GENERAL.—Section
459(h)
(42
U.S.C.
659(h)) is amended—
106
(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.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 2004.
SEC. 410. IMPROVING FEDERAL DEBT COLLECTION PRAC-
TICES.
Section 3716(h)(3) of title 31, United States Code,
is amended to read as follows:
107
‘‘(3) In applying this subsection with respect to any
debt owed to a State, other than past due support being
enforced by the State, subsection (c)(3)(A) shall not apply.
Subsection (c)(3)(A) shall apply with respect to past due
support being enforced by the State notwithstanding any
other
provision
of
law,
including
sections
207
and
1631(d)(1) of the Social Security Act (42 U.S.C. 407 and
1383(d)(1)), section 413(b) of Public law 91–173 (30
U.S.C. 923(b)), and section 14 of the Act of August 29,
1935 (45 U.S.C. 231m).’’.
SEC.
411.
MAINTENANCE
OF
TECHNICAL
ASSISTANCE
FUNDING.
Section 452(j) (42 U.S.C. 652(j)) is amended by in-
serting ‘‘or the amount appropriated under this paragraph
for fiscal year 2002, whichever is greater,’’ before ‘‘which
shall be available’’.
SEC. 412. MAINTENANCE OF FEDERAL PARENT LOCATOR
SERVICE FUNDING.
Section 453(o) (42 U.S.C. 653(o)) is amended—
(1) in the 1st sentence, by inserting ‘‘or the
amount appropriated under this paragraph for fiscal
year 2002, whichever is greater,’’ before ‘‘which
shall be available’’; and
(2) in the 2nd sentence, by striking ‘‘for each
of fiscal years 1997 through 2001’’.
113
(H) activities funded under the United
States Housing Act of 1937 (42 U.S.C. 1437 et
seq.), except that such term shall not include—
(i) any program for rental assistance
under section 8 of such Act (42 U.S.C.
1437f); and
(ii) the program under section 7 of
such Act (42 U.S.C. 1437e) for desig-
nating public housing for occupancy by
certain populations;
(I) activities funded under title I, II, III,
or IV of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11301 et seq.); or
(J) the food stamp program as defined in
section 3(h) of the Food Stamp Act of 1977 (7
U.S.C. 2012(h)).
(c) APPLICATION REQUIREMENTS.—The head of a
State entity or of a sub-State entity administering 2 or
more qualified programs proposed to be included in a dem-
onstration project under this section shall (or, if the
project is proposed to include qualified programs adminis-
tered by 2 or more such entities, the heads of the admin-
istering entities (each of whom shall be considered an ap-
plicant for purposes of this section) shall jointly) submit
114
to the administering Secretary of each such program an
application that contains the following:
(1) PROGRAMS INCLUDED.—A statement identi-
fying each qualified program to be included in the
project, and describing how the purposes of each
such program will be achieved by the project.
(2) POPULATION SERVED.—A statement identi-
fying the population to be served by the project and
specifying the eligibility criteria to be used.
(3) DESCRIPTION AND JUSTIFICATION.—A de-
tailed description of the project, including—
(A) a description of how the project is ex-
pected to improve or enhance achievement of
the purposes of the programs to be included in
the project, from the standpoint of quality, of
cost-effectiveness, or of both; and
(B) a description of the performance objec-
tives for the project, including any proposed
modifications to the performance measures and
reporting requirements used in the programs.
(4) WAIVERS
REQUESTED.—A description of
the statutory and regulatory requirements with re-
spect to which a waiver is requested in order to
carry out the project, and a justification of the need
for each such waiver.