Human Services determines requires State leg-
islation (other than legislation appropriating
funds) in order for the plan to meet the addi-
tional requirement imposed by the amendments
made by paragraph (2) of this subsection, the
State plan shall not be regarded as failing to
comply with the requirements of such section
454 solely on the basis of the failure of the plan
to meet such additional requirement before the
1st day of the 1st calendar quarter beginning
after the close of the 1st regular session of the
State legislature that begins after the date of
the enactment of this Act. For purposes of the
preceding sentence, in the case of a State that
has a 2-year legislative session, each year of
such session shall be deemed to be a separate
regular session of the State legislature.
SEC. 308. DECREASE IN AMOUNT OF CHILD SUPPORT AR-
REARAGE TRIGGERING PASSPORT DENIAL.
(a) IN
GENERAL.—Section 452(k) (42 U.S.C.
652(k)) is amended by striking ‘‘$5,000’’ and inserting
‘‘$2,500’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2003.
SEC. 309. 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. 310. 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—
(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. 311. IMPROVING FEDERAL DEBT COLLECTION PRAC-
TICES.
Section 3716(h)(3) of title 31, United States Code,
is amended to read as follows:
‘‘(3) In applying this subsection with respect to
any debt owed to a State, other than past due sup-
port being enforced by the State, subsection
(c)(3)(A) shall not apply.’’.
SEC. 312. 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 para-
graph for fiscal year 2002, whichever is greater,’’ before
‘‘which shall be available’’.
SEC. 313. 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’’.
TITLE IV—CHILD WELFARE
SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEM-
ONSTRATION PROJECTS.
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is
amended by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 402. ELIMINATION OF LIMITATION ON NUMBER OF
WAIVERS.
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is
amended by striking ‘‘not more than 10’’.
SEC. 403. ELIMINATION OF LIMITATION ON NUMBER OF
STATES THAT MAY BE GRANTED WAIVERS TO
CONDUCT DEMONSTRATION PROJECTS ON
SAME TOPIC.
Section 1130 (42 U.S.C. 1320a–9) is amended by
adding at the end the following:
‘‘(h) NO LIMIT ON NUMBER OF STATES THAT MAY
BE GRANTED WAIVERS TO CONDUCT SAME OR SIMILAR
DEMONSTRATION PROJECTS.—The Secretary shall not
refuse to grant a waiver to a State under this section on
the grounds that a purpose of the waiver or of the dem-
onstration project for which the waiver is necessary would
be the same as or similar to a purpose of another waiver
or project that is or may be conducted under this sec-
tion.’’.
SEC. 404. ELIMINATION OF LIMITATION ON NUMBER OF
WAIVERS THAT MAY BE GRANTED TO A SIN-
GLE STATE FOR DEMONSTRATION PROJECTS.
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following:
‘‘(i) NO LIMIT ON NUMBER OF WAIVERS GRANTED
TO, OR DEMONSTRATION PROJECTS THAT MAY BE CON-
DUCTED BY, A SINGLE STATE.—The Secretary shall not
impose any limit on the number of waivers that may be
granted to a State, or the number of demonstration
projects that a State may be authorized to conduct, under
this section.’’.
SEC. 405. STREAMLINED PROCESS FOR CONSIDERATION OF
AMENDMENTS TO AND EXTENSIONS OF DEM-
ONSTRATION PROJECTS REQUIRING WAIV-
ERS.
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following:
‘‘(j) STREAMLINED PROCESS FOR CONSIDERATION
OF AMENDMENTS
AND EXTENSIONS.—The Secretary
shall develop a streamlined process for consideration of
amendments and extensions proposed by States to dem-
onstration projects conducted under this section.’’.
SEC. 406. AVAILABILITY OF REPORTS.
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following:
‘‘(k) AVAILABILITY
OF REPORTS.—The Secretary
shall make available to any State or other interested party
any report provided to the Secretary under subsection
(f)(2), and any evaluation or report made by the Secretary
with respect to a demonstration project conducted under
this section, with a focus on information that may promote
best practices and program improvements.’’.
SEC. 407. TECHNICAL CORRECTION.
Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is
amended 
by 
striking 
‘‘422(b)(9)’’ 
and 
inserting
‘‘422(b)(10)’’.
TITLE V—SUPPLEMENTAL
SECURITY INCOME
SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DIS-
ABILITY DETERMINATIONS.
Section 1633 (42 U.S.C. 1383b) is amended by add-
ing at the end the following:
‘‘(e)(1) The Commissioner of Social Security shall re-
view determinations, made by State agencies pursuant to
subsection (a) in connection with applications for benefits
under this title on the basis of blindness or disability, that
individuals who have attained 18 years of age are blind
or disabled as of a specified onset date. The Commissioner
of Social Security shall review such a determination before
any action is taken to implement the determination.
‘‘(2)(A) In carrying out paragraph (1), the Commis-
sioner of Social Security shall review—
‘‘(i) at least 15 percent of all determinations re-
ferred to in paragraph (1) that are made in fiscal
year 2003;
‘‘(ii) at least 30 percent of all such determina-
tions that are made in fiscal year 2004; and
‘‘(iii) at least 50 percent of all such determina-
tions that are made in fiscal year 2005 or thereafter.
‘‘(B) In carrying out subparagraph (A), the Commis-
sioner of Social Security shall, to the extent feasible, select
for review the determinations which the Commissioner of
Social Security identifies as being the most likely to be
incorrect.’’.
TITLE VI—BROADENED WAIVER
AUTHORITY
SEC. 601. STATE PROGRAM DEMONSTRATION PROJECTS.
(a) PURPOSE.—The purpose of this section is to en-
able States to conduct demonstration projects involving in-
dividual programs, or integrating multiple public assist-
ance, employment security, and other programs, for the
purpose of supporting working families, helping families
escape welfare dependency, or helping parents build
stronger families, using innovative approaches to strength-
en service systems and provide more coordinated and ef-
fective service delivery.
(b) DEFINITIONS.—In this section:
(1) ADMINISTERING
SECRETARY.—The term
‘‘administering Secretary’’ means, with respect to a
program administered by a qualified agency, the
head of the agency.
(2) QUALIFIED AGENCY.—The term ‘‘qualified
agency’’ means—
(A) the Department of Health and Human
Services; or
(B) the Department of Labor.
(c) APPLICATION REQUIREMENTS.—A State desiring
to conduct a demonstration project under this section in-
volving 1 or more programs administered by 1 or more
qualified agencies shall submit to the administering Sec-
retary of each such program an application that contains
the following:
(1) PROGRAMS INCLUDED.—A statement identi-
fying each program to be included in the project,
and describing how the purposes of each such pro-
gram 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 
proposed 
project,
including—
(A) a description of how the project is ex-
pected to improve or enhance achievement of
the purposes of the program or programs in-
volved, 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 program or
programs involved.
(4) WAIVERS
REQUESTED.—A description of
the waivers requested of statutory and regulatory re-
quirements under the program or programs involved,
and a justification of the need for each waiver.
(5) COST NEUTRALITY.—Such information and
assurances as necessary to establish to the satisfac-
tion of each concerned administering Secretary that
the proposed project is reasonably expected to meet
the requirements of subsection (d)(3).
(6) EVALUATION AND REPORTS.—An assurance
that the State will conduct ongoing and final evalua-
tions of the project, and make interim and final re-
ports to each concerned administering Secretary, at
such times and in such manner as each such Sec-
retary may require.
(7) OTHER INFORMATION AND ASSURANCES.—
Such other information and assurances as each con-
cerned administering Secretary may require.
(d) APPROVAL OF STATE APPLICATIONS.—
(1) IN GENERAL.—The administering Secretary
with respect to a program that is identified in an ap-
plication submitted pursuant to subsection (c) and
that is proposed to be included in a demonstration
project to be conducted under this section may ap-
prove the project and waive any requirement applica-
ble to the program, to the extent consistent with this
section and necessary and appropriate for the con-
duct of the project, if the Secretary determines that
the project proposed in the application—
(A) has a reasonable likelihood of achieving
the objectives of the program or programs in-
volved; and
(B) may reasonably be expected to meet
the cost neutrality requirements of paragraph
(3).
(2) AGREEMENT OF EACH ADMINISTERING SEC-
RETARY
REQUIRED
FOR
PROPOSALS
INVOLVING
MORE THAN 1 QUALIFIED AGENCY.—
(A) IN GENERAL.—A State may not con-
duct a demonstration project under this section
unless each administering Secretary with re-
spect to any program proposed to be included
in the project has approved the application to
conduct the project.
(B) AGREEMENT WITH RESPECT TO FUND-
ING AND IMPLEMENTATION.—Before approving
a State proposal under this section, each ad-
ministering Secretary shall have in place an
agreement with respect to the payment of funds
and responsibilities required of the Secretary
with respect to the project.
(C) 90-DAY APPROVAL DEADLINE.—An ap-
plication to conduct a demonstration project
under this section is considered approved for
purposes of this section unless, within 90 days
after an administering Secretary with respect to
a program proposed to be included in the
project has received the application, the admin-
istering Secretary, in writing, notifies the State
that submitted the application that the applica-
tion is disapproved (and the reasons for dis-
approval) or that specified additional informa-
tion is needed.
(3) COST-NEUTRALITY REQUIREMENTS.—
(A) LIMIT ON TOTAL COSTS.—An applica-
tion to conduct a demonstration project under
this section shall not be approved unless it can
reasonably be expected that, for each fiscal year
in which the project is in effect, the total costs
of the project will not exceed the estimated
combined total Federal cost for the fiscal year
of the program or programs included in the
project if the program or programs had not
been included in the project.
(B) LIMIT ON FEDERAL PAYMENTS.—The
total amount of payments that may be made to
a State for a fiscal year with respect to a dem-
onstration project conducted under this section
that includes 1 or more programs in the juris-
diction of an administering Secretary shall not
exceed the estimated amount of the payments
that the Secretary would have made to the
State with respect to the program or programs
if not included in the project.
(4) PROGRAM
EXCLUDED.—Notwithstanding
any other provision of this section, the program of
grants to States for medical assistance under title
XIX of the Social Security Act may not be included
in a demonstration project under this section.
(e) DURATION
OF
PROJECTS.—A demonstration
project under this section may be approved for a term of
not more than 5 years, and may be renewed for 1 or more
additional terms of not more than 5 years.
(f) REPORTS
TO CONGRESS.—Each administering
Secretary shall provide annually to the Congress a report
concerning demonstration projects approved under this
section, including—
(1) the projects approved for each participating
State;
(2) the number of waivers granted under this
section, and the specific statutory provisions waived;
and
(3) recommendations for modification of pro-
grams based on outcomes of the projects.
TITLE VII—EFFECTIVE DATE
SEC. 701. EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise provided, the
amendments made by this Act shall take effect on October
1, 2002.
(b) EXTENSION OF EFFECTIVE DATE FOR STATE
LAW AMENDMENT.—In the case of a State plan under
this part which the Secretary determines requires State
legislation in order for the plan to meet the additional re-
quirements imposed by the amendments made by this Act,
the effective date of the amendments shall be 3 months
after the first day of the first calendar quarter beginning
after the close of the first regular session of the State leg-
islature that begins after the date of the enactment of this
Act. For purposes of the preceding sentence, in the case
of a State that has a 2-year legislative session, each year
of the session shall be considered to be a separate regular
session of the State legislature.
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