325
‘‘(1) ESTABLISHMENT
OF
NATIONAL
GOAL.—
There is hereby established a national goal of reduc-
ing teen pregnancy by 1⁄3 by December 31, 2007.
‘‘(2) ANNUAL ASSESSMENT OF PROGRESS.—Be-
ginning on January 1, 2003, and annually thereafter,
the Secretary shall issue an annual assessment of the
progress toward achieving the national goal estab-
lished under paragraph (1), that includes State-level
data on teen pregnancies and an assessment of the
progress of each State in achieving such goal.’’.
SEC. 702. STATE PLAN.
Section 402 (42 U.S.C. 602) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by striking ‘‘27-month’’ and inserting ‘‘24-
month’’;
(B) in paragraph (1)(A)—
(i) in the matter preceding clause (i),
by striking ‘‘intends to’’ and inserting
‘‘shall’’;
(ii) in clause (i), by inserting ‘‘cash’’
before ‘‘assistance’’;
(iii) by striking clause (ii) and insert-
ing the following:
326
‘‘(ii) Require a parent or caretaker re-
ceiving assistance under the program to en-
gage in work or work readiness activities
designed to move families receiving assist-
ance into self-sufficiency, consistent with
section 407(e)(2). Such activities may be de-
termined by the State, and shall include, as
appropriate, efforts eliminating barriers to
work such as physical or mental disabil-
ities, substance abuse, adult illiteracy, do-
mestic violence, and lack of affordable hous-
ing.’’;
(iv) in clause (iii), by inserting ‘‘and
individual responsibility plans developed
pursuant to section 408(b)’’ after ‘‘407’’;
(v) by striking clauses (v) and (vi);
(vi) by redesignating clause (iv) as
clause (viii); and
(vii) by inserting after clause (iii), the
following:
‘‘(iv) Establish the process for pro-
viding recipients with individual responsi-
bility plans consistent with section 408(b),
including a description of the screening and
assessment procedures the State employs.
327
‘‘(v) Ensure that training and re-
sources are made available to the State
agency administering the program so that
each family receiving assistance under the
program receives the support for which the
families are eligible, including training re-
lated to civil rights and anti-discrimination
laws.
‘‘(vi) Ensure the availability of a sta-
ble and professional workforce in the ad-
ministration of the State program funded
under this part.
‘‘(vii) Ensure equitable access to bene-
fits and services provided under the pro-
gram for each member of an Indian tribe or
tribal organization, who is domiciled in the
State and is not eligible for assistance
under a tribal family assistance plan ap-
proved under section 412.’’;
(C) in paragraph (1)(B)—
(i) by striking clause (i) and inserting
the following:
‘‘(i) With respect to each program that
will be funded under this part, or with
qualified State expenditures claimed by the
328
State to meet the requirements of section
409(a)(7), over the 24-month period for
which the plan is being submitted—
‘‘(I) the name of the program;
‘‘(II) the goals of the program;
‘‘(III) a description of the benefits
and services provided in the program;
‘‘(IV) a description of principal
eligibility rules (financial and non-
financial) 
and 
populations 
served
under the program; and
‘‘(V) if the program provides
assistance—
‘‘(aa) a description of appli-
cable work-related requirements
and the State’s definition of each
work activity in section 407(d);
‘‘(bb) a description of time
limit policies (if applicable), in-
cluding the length of time allowed,
the policies concerning exemptions
and extensions, and the policies
concerning aid after the time
limit; and
329
‘‘(cc) a description of sanc-
tion policies and procedures (if
applicable), including the dura-
tion of the sanctions, policies con-
cerning good cause for failure to
comply, and procedures to assist
families with barriers in com-
plying with requirements.’’;
(ii) in clause (iii), by inserting ‘‘, and
information regarding any complaints re-
ceived by the State concerning fair and eq-
uitable treatment related to civil rights or
labor laws and a description of the proce-
dures used by the State to respond to such
complaints’’ before the period; and
(iii) by adding at the end the fol-
lowing:
‘‘(v) In the case of a State that pro-
vides sub-State areas with significant pol-
icy-making authority, the document shall
include a summary of policies for each sub-
State area with such authority.’’; and
(D) as amended by section 103(b), by add-
ing at the end the following:
330
‘‘(9) CERTIFICATION OF CONSULTATION ON PRO-
VISION OF TRANSPORTATION AID.—In the case of a
State that provides transportation aid under the
State program, a certification by the chief executive
officer of the State that State and local transportation
agencies and planning bodies have been consulted in
the development of the plan.
‘‘(10) CERTIFICATION OF CONSULTATION ON PRO-
VISION OF HOUSING AID.—In the case of a State that
provides housing aid under the State program, a cer-
tification by the chief executive officer of the State
that State housing agencies and authorities have been
consulted in the development of the plan and that
such consultations have addressed potential coopera-
tion between agencies administering the State pro-
gram funded under this part and housing agencies
and groups in meeting the housing needs of families
receiving assistance under the State program funded
under this part and assisting such families in achiev-
ing self-sufficiency.’’; and
(2) by striking subsection (c) and inserting the
following:
‘‘(c) STANDARD FORMAT.—
‘‘(1) STANDARD STATE PLAN FORMAT.—The Sec-
retary shall, after notice and public comment, develop
331
a proposed Standard State Plan Form to be used by
States to submit the plan required under this section.
Such form shall be finalized by the Secretary for use
by the State not later than February 1, 2003.
‘‘(2) REQUIREMENT
FOR
COMPLETED
PLAN
USING
STANDARD
STATE
PLAN
FORMAT
BY
FISCAL
YEAR 2004.—Notwithstanding any other provision of
law, each State shall submit a complete State plan,
using the Standard State Plan Form developed under
paragraph (1), not later than October 1, 2003.
‘‘(d) HOUSING DATA.—
‘‘(1) IN GENERAL.—Effective October 1, 2003 (or
as soon thereafter as is practicable), the Secretary
and the Secretary of Housing and Urban Develop-
ment jointly shall make available to each State State-
level data from the 2000 decennial census concerning
the housing problems of families receiving assistance
under the State program funded under this part.
‘‘(2) UPDATE.—The Secretary and the the Sec-
retary of Housing and Urban Development biennially
shall make available to each State updated data re-
garding such problems, to the extent such data is
available.
‘‘(e) PUBLIC AVAILABILITY.—
332
‘‘(1) NOTICE AND COMMENT.—Prior to submit-
ting a State plan or an amendment of such plan
based on a change in policy to the Secretary under
this section, the State shall—
‘‘(A) make the proposed State plan or
amendment available to the public through an
appropriate State maintained Internet website
and through other means as the State determines
appropriate;
‘‘(B) allow for a reasonable public comment
period of not less than 45 days; and
‘‘(C) make comments received concerning
such plan or amendment or, at the discretion of
the State, a summary of the comments received
available to the public through such website and
through other means as the State determines ap-
propriate.
‘‘(2) PUBLIC AVAILABILITY OF STATE PLAN.—A
State shall ensure that the State plan, that is in effect
for any fiscal year, is available to the public through
an appropriate State maintained Internet website
and through other means as the State determines ap-
propriate.
‘‘(f) NO CAUSE OF ACTION.—Nothing in this section
shall be construed as establishing a cause of action against
333
a State based solely on a State’s failure to submit a State
plan or an amendment to such plan in accordance with
the requirements of this section or on a State’s failure to
comply with the contents of the State plan.’’.
SEC. 703. RESEARCH.
(a) INDICATORS OF CHILD WELL-BEING.—Section 413
(42 U.S.C. 613), as amended by section 303, is amended
by adding at the end the following:
‘‘(l) INDICATORS OF CHILD WELL-BEING.—
‘‘(1) IN
GENERAL.—The Secretary, through
grants, contracts, or interagency agreements shall de-
velop comprehensive indicators to assess child well-
being in each State.
‘‘(2) REQUIREMENTS.—
‘‘(A) IN
GENERAL.—The indicators devel-
oped under paragraph (1) shall include measures
related to the following:
‘‘(i) Education.
‘‘(ii) Social and emotional develop-
ment.
‘‘(iii) Health and safety.
‘‘(iv) Family well-being, such as fam-
ily structure, income, employment, child
care arrangements, and family relation-
ships.
334
‘‘(B) OTHER
REQUIREMENTS.—The data
collected with respect to the indicators developed
under paragraph (1) shall be—
‘‘(i) statistically representative at the
State level;
‘‘(ii) consistent across States;
‘‘(iii) collected on an annual basis for
at least the 5 years preceding the year of
collection;
‘‘(iv) expressed in terms of rates or
percentages;
‘‘(v) statistically representative at the
national level;
‘‘(vi) measured with reliability;
‘‘(vii) current; and
‘‘(viii) over-sampled, with respect to
low-income children and families.
‘‘(C) CONSULTATION.—In developing the in-
dicators required under paragraph (1) and the
means to collect the data required with respect to
the indicators, the Secretary shall consult and
collaborate with the Federal Interagency Forum
on Child and Family Statistics.
‘‘(3) ADVISORY PANEL.—
335
‘‘(A) ESTABLISHMENT.—The Secretary shall
establish an advisory panel to make rec-
ommendations regarding the appropriate meas-
ures and statistical tools necessary for making
the assessment required under paragraph (1)
based on the indicators developed under that
paragraph and the data collected with respect to
the indicators.
‘‘(B) MEMBERSHIP.—
‘‘(i) IN GENERAL.—The advisory panel
established under subparagraph (A) shall
consist of the following:
‘‘(I) One member appointed by
the Secretary of Health and Human
Services.
‘‘(II) One member appointed by
the Chairman of the Committee on
Ways and Means of the House of Rep-
resentatives.
‘‘(III) One member appointed by
the Ranking Member of the Committee
on Ways and Means of the House of
Representatives.
336
‘‘(IV) One member appointed by
the Chairman of the Committee on Fi-
nance of the Senate.
‘‘(V) One member appointed by
the Ranking Member of the Committee
on Finance of the Senate.
‘‘(VI) One member appointed by
the Chairman of the National Gov-
ernors Association, or the Chairman’s
designee.
‘‘(VII) One member appointed by
the President of the National Con-
ference of State Legislatures or the
President’s designee.
‘‘(VIII) One member appointed by
the Director of the National Academy
of Sciences, or the Director’s designee.
‘‘(ii) DEADLINE.—The members of the
advisory panel shall be appointed not later
than 2 months after the date of enactment
of the Work, Opportunity, and Responsi-
bility for Kids Act of 2002.
‘‘(C) MEETINGS.—The advisory panel estab-
lished under subparagraph (A) shall meet—
337
‘‘(i) at least 3 times during the first
year after the date of enactment of the
Work, Opportunity, and Responsibility for
Kids Act of 2002; and
‘‘(ii) annually thereafter for the 3 suc-
ceeding years.
‘‘(4) FUNDING.—Of the amount appropriated
under section 403(a)(1)(F) for each of fiscal years
2003 through 2007, $15,000,000 shall be reserved for
the purpose of carrying out this subsection.’’.
(b) FUNDING OF STUDIES AND RESEARCH.—Section
413(h) (42 U.S.C. 613(h)) is amended—
(1) in paragraph (1)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘Out of’’ and all that follows
through ‘‘2002’’ and inserting ‘‘Of the amount
appropriated under section 403(a)(1)(F) for each
of fiscal years 2003 through 2007, $20,000,000
shall be reserved’’; and
(B) by striking subparagraph (D) and in-
serting the following:
‘‘(D) the cost of conducting the studies de-
scribed in paragraphs (4) through (6).’’;
(2) in paragraph (2), by striking ‘‘year’’ and all
that follows and inserting ‘‘year—
338
‘‘(A) not less than 25 percent shall be allo-
cated to carry out the purpose described in para-
graph (1)(A);
‘‘(B) not less than 25 percent shall be allo-
cated to carry out the purpose described in para-
graph (1)(B);
‘‘(C) not less than 25 percent shall be allo-
cated to carry out the purpose described in para-
graph (1)(C); and
‘‘(D) not less than 25 percent shall be allo-
cated to carry out the purpose described in para-
graph (1)(D).’’; and
(3) by adding at the end the following:
‘‘(4) LONGITUDINAL
STUDIES
OF
APPLICANTS
AND RECIPIENTS TO DETERMINE THE FACTORS THAT
CONTRIBUTE TO POSITIVE EMPLOYMENT AND FAMILY
OUTCOMES.—
‘‘(A) IN GENERAL.—The Secretary, directly
or through grants, contracts, or interagency
agreements, shall conduct longitudinal studies in
at least 5 and not more than 10 States (or sub-
State areas, provided that none of such areas are
located in the same State) of a representative
sample of families that receive, and applicants
for, assistance in a State program funded under
339
this part or under a program funded with quali-
fied State expenditures (as defined in section
409(a)(7)(B)(i)).
‘‘(B) GENERAL REQUIREMENTS.—The stud-
ies conducted under this paragraph shall follow
families that leave assistance, those that receive
assistance throughout the study period, and those
diverted from assistance programs. The studies
shall gather information on—
‘‘(i) family and adult demographics
(including race, ethnicity, household com-
position, marital status, primary language,
barriers to employment, educational status
of adults, prior work history, and prior his-
tory of welfare receipt);
‘‘(ii) family income (including earn-
ings, unemployment compensation, and
child support);
‘‘(iii) benefit receipt (including benefits
under the food stamp program, the med-
icaid program under title XIX, the State
children’s health insurance program under
title XXI, child care assistance, supple-
mental security income benefits under title
340
XVI, earned income tax credits, and hous-
ing assistance);
‘‘(iv) reasons for leaving or returning
to assistance programs;
‘‘(v) work participation status and ac-
tivities, including the scope and duration of
work activities;
‘‘(vi) sanction status (including rea-
sons for sanction);
‘‘(vii) time limit status (including
months remaining on Federal and State
time limits);
‘‘(viii) recipient views on program
participation; and
‘‘(ix) other measures of family well-
being over the period studied.
‘‘(C) COMPARABILITY.—The Secretary shall
ensure to the extent possible that the studies con-
ducted under this paragraph produce comparable
results and information.
‘‘(D) GEOGRAPHIC DIVERSITY.—The studies
conducted under this paragraph shall be con-
ducted in States or sub-State areas that have sig-
nificant areas of low population density and in
341
States or sub-State areas with areas of high pop-
ulation density.
‘‘(E) 
REPORTS.—The 
Secretary 
shall
publish—
‘‘(i) not later than December 31, 2005,
interim findings from at least 12 months of
longitudinal data collected under studies
conducted under this paragraph; and
‘‘(ii) not later than December 31, 2006,
findings from at least 24 months of longitu-
dinal data collected under studies conducted
under this paragraph.
‘‘(5) STUDY OF EFFECTS OF SANCTIONS.—
‘‘(A) IN GENERAL.—The Secretary, directly
or through grants, contracts, or interagency
agreements, shall conduct a random assignment
study comparing the effects of full-family sanc-
tions, partial sanctions, and other policies for
increasing engagement in work activities re-
quired under the State programs funded under
this part.
‘‘(B) REQUIRED INFORMATION.—The study
conducted under this paragraph shall include in-
formation with respect to participants in the
study on demographic characteristics, work par-
342
ticipation rates, employment and earnings, du-
ration and amount of payments of assistance
under the State program funded under this part,
factors affecting program compliance, incidences
of hardship, family income, and the well-being of
children.
‘‘(C) REPORT.—Not later than December
31, 2006, the Secretary shall submit to Congress
the results of the study conducted under this
paragraph.
‘‘(6) STUDY OF TEEN PARENT RECIPIENTS.—
‘‘(A) IN GENERAL.—The Secretary, directly
or through grants, contracts, or interagency
agreements, shall conduct a study of a represent-
ative sample of teen parents who are recipients
of assistance under State programs funded under
this part to determine—
‘‘(i) whether Federal and State data on
the number of such recipients is accurate,
including an examination of the extent to
which such recipients are members of a
family that is not reflected in the data;
‘‘(ii) what assessment procedures are
utilized with such recipients and whether
such procedures would detect a housing or
343
an educational barrier, such as a learning
disability; and
‘‘(iii) the services and eligibility re-
quirements for such recipients.
‘‘(B) REPORT.—Not later than December
31, 2006, the Secretary shall submit to Congress
the results of the study conducted under this
paragraph.’’.
(c) RESEARCH ON TRIBAL WELFARE PROGRAMS AND
POVERTY AMONG INDIANS.—Section 413 (42 U.S.C. 613),
as amended by subsection (a), is amended by adding at the
end the following:
‘‘(m) TRIBAL WELFARE PROGRAMS AND EFFORTS TO
REDUCE POVERTY AMONG INDIANS.—
‘‘(1) IN GENERAL.—The Secretary, directly or
through grants, contracts, or interagency agreements,
shall conduct research to improve the effectiveness of
tribal family assistance programs conducted under
section 412 and other tribal welfare programs and on
efforts to reduce poverty among Indians.
‘‘(2) PRIORITY
FOR
CERTAIN
APPLICATIONS.—
With respect to applications for grants under para-
graph (1), the Secretary shall give priority to appli-
cations to conduct research in cooperation with tribal
344
governments or tribally controlled colleges or univer-
sities.
‘‘(3) FUNDING.—Of the amount appropriated
under section 403(a)(1)(F) for fiscal year 2003,
$2,000,000 shall be reserved for the purpose of car-
rying out this subsection.’’.
SEC. 704. INNOVATIVE BUSINESS LINK PARTNERSHIP
GRANTS FOR EMPLOYERS AND NONPROFIT
ORGANIZATIONS.
Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended
to read as follows:
‘‘(4) INNOVATIVE BUSINESS LINK PARTNERSHIP
GRANTS.—
‘‘(A) IN GENERAL.—The Secretary and the
Secretary of Labor (in this paragraph referred to
as the ‘‘Secretaries’’) jointly shall award grants
in accordance with this paragraph for projects
proposed by eligible applicants based on the fol-
lowing:
‘‘(i) The potential effectiveness of the
proposed project in carrying out the activi-
ties described in subparagraph (E).
‘‘(ii) Evidence of the ability of the eli-
gible applicant to leverage private, State,
and local resources.
345
‘‘(iii) Evidence of the ability of the eli-
gible applicant to coordinate with other or-
ganizations at the State and local level.
‘‘(B) DEFINITION
OF
ELIGIBLE
APPLI-
CANT.—
‘‘(i) IN GENERAL.—In this paragraph,
the term ‘eligible applicant’ means a non-
profit organization, a local workforce in-
vestment board established under section
117 of the Workforce Investment Act of 1998
(29 U.S.C. 2832), a State, a political sub-
division of a State, or an Indian tribe.
‘‘(ii) GRANTS TO PROMOTE BUSINESS
LINKAGES.—
‘‘(I) ADDITIONAL ELIGIBLE APPLI-
CANT.—Only for purposes of grants to
carry out the activities described in
subparagraph (E)(i), the term ‘eligible
applicant’ includes an employer.
‘‘(II) 
ADDITIONAL
REQUIRE-
MENT.—In order to qualify as an eligi-
ble applicant for purposes of subpara-
graph (E)(i), the applicant must pro-
vide evidence that the application has
been developed by and will be imple-
346
mented by a local or regional consor-
tium that includes, at minimum, em-
ployers or employer associations, and
education and training providers, in
consultation with local labor organiza-
tions and social service providers that
work with low-income families or indi-
viduals with disabilities.
‘‘(C) REQUIREMENTS.—
‘‘(i) 
IN
GENERAL.—In 
awarding
grants under this paragraph, the Secretaries
shall—
‘‘(I) consider the needs of rural
areas and cities with large concentra-
tions of residents with an income that
is less than 150 percent of the poverty
line; and
‘‘(II) ensure that—
‘‘(aa) all of the funds made
available under this paragraph
(other than funds reserved for use
by the Secretaries under subpara-
graph (J)) shall be used for activi-
ties described in subparagraph
(E);
347
‘‘(bb) not less than 40 per-
cent of the funds made available
under this paragraph (other than
funds so reserved) shall be used for
activities described in subpara-
graph (E)(i); and
‘‘(cc) not less than 40 percent
of the funds made available under
this paragraph (other than funds
so reserved) shall be used for the
activities described in subpara-
graph (E)(ii).
‘‘(ii) 
CONTINUATION
OF
AVAIL-
ABILITY.—If any portion of the funds re-
quired to be used for activities referred to in
item (bb) or (cc) of clause (i)(II) are not
awarded in a fiscal year, such portion shall
continue to be available in the subsequent
fiscal year for the same activity, in addi-
tion to other amounts that may be available
for such activities for that subsequent fiscal
year.
‘‘(D) 
DETERMINATION
OF
GRANT
AMOUNT.—
348
‘‘(i) IN
GENERAL.—Subject to clause
(ii), in determining the amount of a grant
to be awarded under this paragraph for a
project proposed by an eligible applicant,
the Secretaries shall provide the eligible ap-
plicant with an amount sufficient to ensure
that the project has a reasonable oppor-
tunity 
to 
be 
successful, 
taking 
into
account—
‘‘(I) the number and characteris-
tics of the individuals to be served by
the project;
‘‘(II) the level of unemployment in
the area to be served by the project;
‘‘(III) the job opportunities and
job growth in such area;
‘‘(IV) the poverty rate for such
area; and
‘‘(V) such other factors as the Sec-
retary deems appropriate in such area.
‘‘(ii) MAXIMUM AWARD FOR GRANTS TO
PROMOTE BUSINESS LINKAGES OR PROVIDE
TRANSITIONAL JOBS PROGRAMS.—
‘‘(I) IN GENERAL.—In the case of
a grant to carry out activities de-
349
scribed in clause (i) or (ii) of subpara-
graph 
(E), 
an 
eligible 
applicant
awarded a grant under this paragraph
may not receive more than $10,000,000
per fiscal year under the grant.
‘‘(II) RULE OF CONSTRUCTION.—
Nothing in subclause (I) shall be con-
strued as precluding an otherwise eligi-
ble applicant from receiving separate
grants to carry out activities described
in clause (i) or (ii) of subparagraph
(E).
‘‘(iii) GRANT PERIOD.—The period in
which a grant awarded under this para-
graph may be used shall be specified for a
period of not less than 36 months and not
more than 60 months.
‘‘(E) ALLOWABLE ACTIVITIES.—An eligible
applicant awarded a grant under this paragraph
shall use funds provided under the grant to do
the following:
‘‘(i) PROMOTE BUSINESS LINKAGES.—
‘‘(I) IN
GENERAL.—To promote
business linkages in which funds shall
350
be used to fund new or expanded pro-
grams that are designed to—
‘‘(aa) substantially increase
the wages of eligible individuals
(as defined in subparagraph (F)),
whether employed or unemployed,
who have limited English pro-
ficiency or other barriers to em-
ployment by creating or upgrad-
ing job and related skills in part-
nership with employers, especially
by providing supports and serv-
ices at or near work sites; and
‘‘(bb) identify and strengthen
career pathways by expanding
and linking work and training
opportunities for such individuals
in collaboration with employers.
‘‘(II) CONSIDERATION OF IN-KIND,
IN-CASH RESOURCES.—In determining
which programs to fund under this
clause, an eligible applicant awarded a
grant under this paragraph shall con-
sider the ability of a consortium to
provide funds in-kind or in-cash (in-
351
cluding employer-provided, paid re-
lease time) to help support the pro-
grams for which funding is sought.
‘‘(III) PRIORITY.—In determining
which programs to fund under this
clause, an eligible applicant awarded a
grant under this paragraph shall give
priority to programs that include edu-
cation or training for which partici-
pants receive credit toward a recog-
nized credential, such as an occupa-
tional certificate or license.
‘‘(IV) USE OF FUNDS.—
‘‘(aa) IN
GENERAL.—Funds
provided to a program under this
clause may be used for a com-
prehensive set of employment and
training benefits and services, in-
cluding 
job 
development, 
job
matching, workplace supports and
accommodations, curricula devel-
opment, wage subsidies, retention
services, and such other benefits or
services as the program deems
352
necessary to achieve the overall
objectives of this clause.
‘‘(bb) PROVISION
OF
SERV-
ICES.—So long as a program is
principally designed to assist eli-
gible individuals, (as defined in
subparagraph (F)), funds may be
provided to a program under this
clause that also serves low-earning
employees of 1 or more employers
even if such individuals are not
within the definition of eligible
individual (as so defined).
‘‘(ii) 
PROVIDE
FOR
TRANSITIONAL
JOBS PROGRAMS.—
‘‘(I) IN GENERAL.—To provide for
wage-paying transitional jobs pro-
grams which combine time-limited em-
ployment in the public or nonprofit
private sector that is subsidized with
public funds with skill development
and activities to remove barriers to
employment, pursuant to an individ-
ualized plan (or, in the case of an eli-
gible individual described in subpara-
353
graph (F)(i), an individual responsi-
bility plan developed for an individual
under section 408(b)). Such programs
also shall provide job development and
placement assistance to individual
participants to help them move from
subsidized employment in transitional
jobs into unsubsidized employment, as
well as retention services after the
transition to unsubsidized employment.
‘‘(II) ELIGIBLE PARTICIPANTS.—
The Secretary shall ensure that indi-
viduals who participate in transitional
jobs programs funded under a grant
made under this paragraph shall be in-
dividuals who have been unemployed
because of limited skills, experience, or
other barriers to employment, and who
are eligible individuals (as defined in
subparagraph (F)), provided that so
long as a program is designed to, and
principally serves, eligible individuals
(as so defined), a limited number of in-
dividuals who are unemployed because
of limited skills, experience, or other
354
barriers to employment, and who have
an income below 100 percent of the
Federal poverty line but who do not
satisfy the definition of eligible indi-
vidual (as so defined) may be served in
the program to the extent the Secre-
taries determine that the inclusion of
such individuals in the program is ap-
propriate.
‘‘(III) USE
OF
FUNDS.—Funds
provided to a program under this
clause may only be used in accordance
with the following:
‘‘(aa) To create subsidized
transitional jobs in which work
shall be performed directly for the
program operator or at other pub-
lic and non profit organizations
(in this subclause referred to as
‘worksite employers’) in the com-
munity, and in which 100 percent
of the wages shall be subsidized,
except as described in item (gg)
regarding placements in the pri-
vate, for profit sector.
355
‘‘(bb) Participants shall be
paid at the rate paid to unsub-
sidized employees of the worksite
employer who perform comparable
work at the worksite where the in-
dividual is placed. If no other em-
ployees perform the same or com-
parable work then wages shall be
set, at a minimum, at 50 percent
of the Lower Living Standard In-
come Level (commonly referred to
as the ‘LLSIL’), as determined
under section 101(24) of the
Workforce Investment Act of 1998
(29 U.S.C. 2801(24)), for a family
of 3 based on 35 hours per week.
‘‘(cc) Transitional jobs shall
be limited to not less than 6
months and not more than 24
months, however, nothing shall
preclude a participant from mov-
ing into unsubsidized employment
at a point prior to the maximum
duration of the transitional job
placement. Participants shall be
356
paid wages based on a workweek
of not less than 30 hours per week
or more than 40 hours per week,
except that a parent of a child
under the age of 6, a child who is
disabled, or a child with other
special needs, or an individual
who for other reasons cannot suc-
cessfully participate for 30 to 40
hours per week, may be allowed to
participate 
for 
more 
limited
hours, but not less than 20 hours
per week. In any work week, 50
percent to 80 percent of hours
shall be spent in the transitional
job and 20 percent to 50 percent
of hours shall be spent in edu-
cation or training, or other serv-
ices designed to reduce or elimi-
nate any barriers.
‘‘(dd) 
Program 
operators
shall provide case management
services and ensure access to ap-
propriate 
education, 
training,
and other services, including job
357
accommodation, work supports,
and supported employment, as
appropriate and consistent with
an individual plan that is based
on the individual’s strengths, re-
sources, priorities, concerns, abili-
ties, capabilities, career interests,
and informed choice and that is
developed with each participant.
The goal of each participant’s
plan shall focus on preparation
for unsubsidized jobs in demand
in the local economy which offer
the potential for advancement and
growth. Services shall also include
job placement assistance and re-
tention services, which may in-
clude coaching and work place
supports, for 12 months after
entry into unsubsidized place-
ment. Participants shall also re-
ceive support services such as sub-
sidized child care and transpor-
tation, on the same basis as those
services are made available to re-
358
cipients of assistance under the
State program funded under this
part who are engaged in work-re-
lated activities.
‘‘(ee) Providers shall work
with individual recipients to de-
termine eligibility for other em-
ployment-related supports which
may include (but are not limited
to) supported employment, other
vocational rehabilitation services,
and programs or services avail-
able under the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2801
et seq.), or the ticket to work and
self-sufficiency 
program 
estab-
lished under section 1148, and, to
the extent possible, shall provide
transitional employment in col-
laboration with entities providing,
or arranging for the provision of,
such other supports.
‘‘(ff) Not more than 20 per-
cent of the placements for a grant-
ee shall be with a private for-prof-
359
it company, except that such 20
percent limit may be waived by
the Secretary for programs in
rural areas when the grantee can
demonstrate 
insufficient 
public
and non-profit worksites. When a
placement is made at a private
for-profit company, the company
shall pay 50 percent of program
costs (including wages) for each
participant, and the company
shall agree, in writing, to hire
each participant into an unsub-
sidized position at the completion
of the agreed upon subsidized
placement, or sooner, provided
that the participant’s job perform-
ance has been satisfactory. Not
more than 5 percent of the work-
force of a private for-profit com-
pany may be composed of transi-
tional jobs participants.
‘‘(IV) DEFINITION
OF
TRANSI-
TIONAL
JOBS
PROGRAM.—In 
this
clause, the term ‘transitional jobs pro-
360
gram’ means a program that is in-
tended to serve current and former re-
cipients of assistance under a State or
tribal program funded under this part
and other low-income individuals who
have been unable to secure employment
through job search or other employ-
ment-related services because of limited
skills, experience, or other barriers to
employment.
‘‘(iii) CAPITALIZATION.—To develop
capitalization procedures for the delivery of
self-sustainable social services.
‘‘(iv) 
ADMINISTRATIVE
EXPENDI-
TURES.—Not more than 5 percent of the
funds awarded to an eligible applicant
under this paragraph may be used for ad-
ministrative expenditures incurred in car-
rying out the activities described in clause
(i), (ii), or (iii) or for expenditures related
to carrying out the assessments and reports
required under subparagraph (H).
‘‘(F) 
DEFINITION
OF
ELIGIBLE
INDI-
VIDUAL.—In this paragraph, the term ‘eligible
individual’ means—
361
‘‘(i) an individual who is a parent
who is a recipient of assistance under a
State or tribal program funded under this
part;
‘‘(ii) an individual who is a parent
who has ceased to receive assistance under
such a State or tribal program;
‘‘(iii) an individual who is at risk of
receiving assistance under a State or tribal
program funded under this part;
‘‘(iv) an individual with a disability;
or
‘‘(v) a noncustodial parent who is un-
employed, or is having difficulty in paying
child support obligations, including such a
parent who is a former criminal offender.
‘‘(G) APPLICATION.—Each eligible appli-
cant desiring a grant under this paragraph shall
submit an application to the Secretaries at such
time, in such manner, and accompanied by such
information as the Secretaries may require.
‘‘(H) ASSESSMENTS
AND
REPORTS
BY
GRANTEES.—
‘‘(i) IN GENERAL.—An eligible appli-
cant that receives a grant under this para-
362
graph shall assess and report on the out-
comes of programs funded under the grant,
including the identity of each program op-
erator, demographic information about each
participant, including education level, lit-
eracy level, prior work experience and iden-
tified barriers to employment, the nature of
education, training, or other services re-
ceived by the participant, the reason for the
participant’s leaving the program, and out-
comes related to the placement of the partic-
ipant in an unsubsidized job, including 1-
year employment retention, wage at place-
ment, benefits, and earnings progression, as
specified by the Secretaries.
‘‘(ii) 
ASSISTANCE.—The 
Secretaries
shall—
‘‘(I) assist grantees in conducting
the assessment required under clause
(i) by making available where prac-
ticable low-cost means of tracking the
labor market outcomes of participants;
and
‘‘(II) encourage States to provide
such assistance.
363
‘‘(I) APPLICATION
TO
REQUIREMENTS
OF
THE STATE PROGRAM.—
‘‘(i) WORK
PARTICIPATION
REQUIRE-
MENTS.—With respect to any month in
which a recipient of assistance under a
State or tribal program funded under this
part who satisfactorily participates in a
business linkage or transitional jobs pro-
gram described in subparagraph (E) that is
paid for with funds made available under a
grant made under this paragraph, such
participation shall be considered to satisfy
the work participation requirements of sec-
tion 407 and be included for purposes of de-
termining 
monthly 
participation 
rates
under subsection (b)(1)(B)(i) of that section.
‘‘(ii) PARTICIPATION NOT CONSIDERED
ASSISTANCE.—A benefit or service provided
with funds made available under a grant
made under this paragraph shall not be
considered assistance for any purpose under
a State or tribal program funded under this
part.
‘‘(J) 
ASSESSMENTS
BY
THE
SECRE-
TARIES.—
364
‘‘(i) RESERVATION OF FUNDS.—Of the
amount appropriated under subparagraph
(L) for each of fiscal years 2003 and 2004,
$3,000,000 of such amount for each such fis-
cal year is reserved for use by the Secre-
taries to prepare an interim and final re-
port summarizing and synthesizing out-
comes and lessons learned from the pro-
grams funded through grants awarded
under this paragraph.
‘‘(ii) INTERIM
AND
FINAL
ASSESS-
MENTS.—With respect to the reports pre-
pared under clause (i), the Secretaries shall
submit—
‘‘(I) the interim report not later
than 4 years after the date of enact-
ment of the Work, Opportunity, and
Responsibility for Kids Act of 2002;
and
‘‘(II) the final report not later
than 6 years after such date of enact-
ment.
‘‘(K) EVALUATIONS.—
‘‘(i) RESERVATION OF FUNDS.—Of the
amount appropriated under subparagraph
365
(L) for a fiscal year, an amount equal to
1.5 percent of such amount for each such
fiscal year shall be reserved for use by the
Secretaries to conduct evaluations in ac-
cordance with the requirements of clause
(ii).
‘‘(ii) 
REQUIREMENTS.—The
Secretaries—
‘‘(I) shall develop a plan to evalu-
ate the extent to which programs fund-
ed under grants made under this para-
graph have been effective in promoting
sustained, unsubsidized employment
for each group of eligible participants,
and in improving the skills and wages
of participants in comparison to the
participants’ skills and wages prior to
participation in the programs;
‘‘(II) may evaluate the use of such
a grant by a grantee, as the Secretaries
deem appropriate, in accordance with
an agreement entered into with the
grantee after good-faith negotiations;
and
366
‘‘(III) shall include, as appro-
priate, the following outcome measures
in the evaluation plan developed under
subclause (I):
‘‘(aa) Placements in unsub-
sidized employment.
‘‘(bb) Retention in unsub-
sidized employment 6 months and
12 months after initial placement.
‘‘(cc) Earnings of individuals
at the time of placement in un-
subsidized employment.
‘‘(dd) Earnings of individ-
uals 12 months after placement in
unsubsidized employment.
‘‘(ee) The extent to which un-
subsidized job placements include
access to affordable employer-
sponsored health insurance and
paid leave benefits.
‘‘(ff) Comparison of pre- and
post-program wage rates of par-
ticipants.
367
‘‘(gg) Comparison of pre-
and post-program skill levels of
participants.
‘‘(hh) Wage growth and em-
ployment retention in relation to
occupations and industries at ini-
tial placement in unsubsidized
employment and over the first 12
months after initial placement.
‘‘(ii) Recipient of cash assist-
ance under the State program
funded under this part.
‘‘(jj) 
Average 
expenditures
per participant.
‘‘(iii) REPORTS
TO
CONGRESS.—The
Secretaries shall submit to Congress the fol-
lowing reports on the evaluations of pro-
grams funded under grants made under this
paragraph:
‘‘(I) INTERIM
REPORT.—An in-
terim report not later than 4 years
after the date of enactment of the Work,
Opportunity, and Responsibility for
Kids Act of 2002.
368
‘‘(II) FINAL REPORT.—A final re-
port not later than 6 years after such
date of enactment.
‘‘(L) APPROPRIATION.—
‘‘(i) IN GENERAL.—Out of any money
in the Treasury of the United States not
otherwise appropriated, there is appro-
priated for grants under this section,
$200,000,000 for each of fiscal years 2003
through 2007.
‘‘(ii) AVAILABILITY.—Amounts appro-
priated under clause (i) for a fiscal year
shall remain available for obligation for 5
fiscal years after the fiscal year in which
the amount is appropriated.’’.
SEC. 705. GRANTS TO IMPROVE ACCESS TO TRANSPOR-
TATION.
(a) IN GENERAL.—Section 403(a) (42 U.S.C. 603(a)),
as amended by section 304, is further amended by adding
at the end the following:
‘‘(8) GRANT TO IMPROVE ACCESS TO TRANSPOR-
TATION.—
‘‘(A) PURPOSES.—The purposes of this
paragraph are to—
369
‘‘(i) assist low-income families with
children obtain dependable, affordable auto-
mobiles to improve their employment oppor-
tunities and access to training; and
‘‘(ii) provide incentives to States, In-
dian tribes, local governments, and non-
profit entities to develop and administer
programs that provide assistance with auto-
mobile ownership for low-income families.
‘‘(B) DEFINITIONS.—In this paragraph:
‘‘(i) LOCALITY.—The term ‘locality’
means a municipality that does not admin-
ister a State program funded under this
part.
‘‘(ii) LOW-INCOME FAMILY WITH CHIL-
DREN.—The term ‘low-income family with
children’ means a household that is eligible
for benefits or services funded under the
State program funded under this part or
under a program funded with qualified
State expenditures (as defined in section
409(a)(7)(B)(i)).
‘‘(iii) NONPROFIT ENTITY.—The term
‘nonprofit entity’ means a school, local
agency, organization, or institution owned
370
and operated by 1 or more nonprofit cor-
porations or associations, no part of the net
earnings of which inures, or may lawfully
inure, to the benefit of any private share-
holder or individual.
‘‘(C) AUTHORITY TO AWARD GRANTS.—The
Secretary may award grants to States, Indian
tribes, counties, localities, and nonprofit entities
to promote improving access to dependable, af-
fordable automobiles by low-income families with
children.
‘‘(D) GRANT
APPROVAL
CRITERIA.—The
Secretary shall establish criteria for approval of
an application for a grant under this paragraph
that include consideration of—
‘‘(i) the extent to which the proposal, if
funded, is likely to improve access to train-
ing and employment opportunities and
child care services by low-income families
with children by means of car ownership;
‘‘(ii) the level of innovation in the ap-
plicant’s grant proposal; and
‘‘(iii) any partnerships between the
public and private sector in the applicant’s
grant proposal.
371
‘‘(E) USE OF FUNDS.—
‘‘(i) IN GENERAL.—A grant awarded
under this paragraph shall be used to ad-
minister programs that assist low-income
families with children with dependable
automobile ownership, and maintenance of,
or insurance for, the purchased automobile.
‘‘(ii) SUPPLEMENT
NOT
SUPPLANT.—
Funds provided to a State, Indian tribe,
county, or locality under a grant awarded
under this paragraph shall be used to sup-
plement and not supplant other State, coun-
ty, or local public funds expended for car
ownership programs.
‘‘(F) APPLICATION.—Each applicant desir-
ing a grant under this paragraph shall submit
an application to the Secretary at such time, in
such manner, and accompanied by such informa-
tion as the Secretary may reasonably require.
‘‘(G) REVERSION
OF
FUNDS.—Any funds
not expended by a grantee within 3 years after
the date the grant is awarded under this para-
graph shall be available for redistribution among
other grantees in such manner and amount as
the Secretary may determine, unless the Sec-
372
retary extends by regulation the time period to
expend such funds.
‘‘(H) 
LIMITATION
ON
ADMINISTRATIVE
COSTS OF THE SECRETARY.—Not more than an
amount equal to 5 percent of the funds appro-
priated to make grants under this paragraph for
a fiscal year shall be expended for administrative
costs of the Secretary in carrying out this para-
graph.
‘‘(I) EVALUATION.—The Secretary shall, by
grant, contract, or interagency agreement, con-
duct an evaluation of the programs administered
with grants awarded under this paragraph.
‘‘(J) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to the Secretary to make grants under this para-
graph, $15,000,000 for each of fiscal years 2003
through 2007.’’.
(b) IMPROVING USE OF TANF FUNDS FOR CAR OWN-
ERSHIP MATCHING FUNDS.—Section 404(h)(2)(B) of the
Social Security Act (42 U.S.C. 608(h)(2)(B)) is amended
by adding at the end the following:
‘‘(iv) 
AUTOMOBILE
PURCHASE
OR
MAINTENANCE.—At the option of the State,
373
costs with respect to the purchase or main-
tenance of an automobile.’’.
SEC. 706. AT-HOME INFANT CARE.
Section 413 (42 U.S.C. 613), as amended by section
703(c), is amended by adding at the end the following:
‘‘(n) DEMONSTRATION PROJECTS FOR AT HOME IN-
FANT CARE.—
‘‘(1) AUTHORITY TO AWARD GRANTS.—
‘‘(A) IN
GENERAL.—The Secretary shall
award grants to not less than 5 and not more
than 10 States to enable such States to carry out
demonstration projects to provide at-home infant
care benefits to eligible low-income families.
‘‘(B) INDIAN
TRIBES.—An Indian tribe
may submit an application for a grant under
this subsection. If awarded a grant, the Indian
tribe shall conduct a demonstration project to
provide at-home infant care benefits to eligible
low-income families in the same manner, and to
the same extent as a State, except that the Sec-
retary may modify the requirements of this sub-
section as appropriate with respect to the Indian
tribe. For purposes of subparagraph (A), any
grant awarded to an Indian tribe shall not count
toward the number of grants awarded to States.
374
‘‘(2) FAMILY ELIGIBILITY.—
‘‘(A) IN GENERAL.—To be eligible to par-
ticipate in a program of at-home infant care
under a demonstration project established under
paragraph (1), a family shall—
‘‘(i) have an income that does not ex-
ceed 
the 
limits 
specified 
in 
section
658P(3)(B) of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C.
9858n(3)(B));
‘‘(ii) include a child under the age of
2;
‘‘(iii) include a parent (as defined in
section 658P(8) of the Child Care and De-
velopment Block Grant Act of 1990 (42
U.S.C. 9858n(8))), who meets the State’s re-
quirements for having had a recent work
history prior to application for at-home in-
fant care benefits; and
‘‘(iv) meet such other eligibility re-
quirements as the State may establish.
‘‘(B) 2-PARENT FAMILIES.—A State selected
to participate in a demonstration project of at-
home infant care under this section shall permit
2-parent families to participate in the project
375
but may not limit participation in the project to
such families.
‘‘(3) AMOUNT OF ASSISTANCE.—The amount of
at-home infant care benefits provided to an eligible
family under this subsection for a month of benefit re-
ceipt shall not exceed the payment rate applicable to
eligible child care providers for infant care under the
State’s payment rate schedule, according to the provi-
sions of section 658E(c)(4)(A) of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C.
9858c(c)(4)(A)).
‘‘(4) SUBMISSION OF APPLICATIONS.—An eligible
low-income parent may submit an application for at-
home infant care benefits under a demonstration
project established under this subsection at any time
prior to the date on which the child attains age 2.
‘‘(5) REQUIRED CERTIFICATIONS.—A State se-
lected to participate in a demonstration project of at-
home infant care under this section shall provide cer-
tifications to the Secretary that—
‘‘(A) during the period of the demonstration
project, the State shall not reduce expenditures
for child care services below the levels in effect in
the fiscal year preceding the fiscal year in which
the State begins to participate in the project;
376
‘‘(B) the State, in operating the demonstra-
tion project, shall not give priority or preference
to parents seeking to participate in the program
of At-Home Infant Care over other eligible par-
ents on a waiting list for child care assistance
in the State;
‘‘(C) the State shall—
‘‘(i) provide parents applying to re-
ceive at-home infant care benefits with in-
formation on the range of options for child
care available to the parents;
‘‘(ii) ensure that approved applicants
for at-home infant care are permitted to
choose between receipt of at-home infant
care benefits and receipt of a certificate that
may be used with an eligible child care pro-
vider for child care needed for employment;
and
‘‘(iii) provide that a family receiving
an at-home infant care benefit may ex-
change the benefit for a child care voucher
for employment at any time during the
family’s participation in the program;
‘‘(D) the State shall develop or update and
implement a plan to improve the quality of in-
377
fant care, and shall use up to 10 percent of the
funds received under the demonstration project
for efforts to improve the quality of infant care
in the State;
‘‘(E) the State shall ensure that voluntary
employment services are offered to program par-
ticipants after the completion of participation in
the program to assist the participants in return-
ing to unsubsidized employment; and
‘‘(F) the State shall cooperate with informa-
tion collection and evaluation activity conducted
by the Secretary.
‘‘(6) TANF ASSISTANCE.—The receipt of an at-
home infant care benefit funded under this subsection
shall not be considered assistance under the State pro-
gram funded under this part for any purpose.
‘‘(7) BENEFIT NOT TREATED AS INCOME.—Not-
withstanding any other provision of law, the value of
an at-home infant care benefit funded under this sub-
section shall not be treated as income for purposes of
any Federal or federally-assisted program that bases
eligibility, or the amount of benefits or services pro-
vided, on need.
‘‘(8) APPLICATION FOR PARTICIPATION AND SE-
LECTION OF STATES.—
378
‘‘(A) APPLICATIONS.—Not later than 90
days after the date of enactment of the Work,
Opportunity, and Responsibility for Kids Act of
2002, the Secretary shall publish a notice of op-
portunity to participate, specifying the contents
of an application for participation in the At-
Home Infant Care demonstration project funded
under this subsection. The notice shall include a
timeframe for States to submit an application to
participate, and shall provide that all such ap-
plications are to be submitted not later than 270
days after such date of enactment.
‘‘(B) SELECTION.—
‘‘(i) IN GENERAL.—The Secretary shall
review the applications and select the par-
ticipating States not later than 1 year after
such date of enactment.
‘‘(ii) CRITERIA.—In selecting States to
participate in the demonstration project
funded under this subsection, the Secretary
shall—
‘‘(I) seek to ensure geographic di-
versity; and
‘‘(II) give priority to States—
379
‘‘(aa) 
whose 
applications
demonstrate a strong commitment
to improving the quality of infant
care and the choice available to
parents of infants;
‘‘(bb) with experience rel-
evant to the operation of at-home
infant care programs; and
‘‘(cc) in which there are de-
monstrable shortages of infant
care.
‘‘(9) EVALUATION AND REPORT TO CONGRESS.—
‘‘(A) IN
GENERAL.—The Secretary shall
conduct an evaluation of the demonstration
projects conducted under this subsection and sub-
mit a report to Congress on such evaluation not
later than 4 years after the date of enactment of
the Work, Opportunity, and Responsibility for
Kids Act of 2002.
‘‘(B) REQUIREMENTS.—The evaluation re-
quired under this paragraph shall expressly ad-
dress the following:
‘‘(i) Implementation experiences of the
States participating in the project in devel-
oping and operating programs of at-home
380
infant care, including design issues and
issues in coordinating at-home infant care
benefits with benefits provided or funded
under the Child Care and Development
Block Grant in the State.
‘‘(ii) The characteristics of families
seeking to participate and participating in
the programs of at-home infant care funded
under this subsection.
‘‘(iii) The length of participation by
families in such programs and the reasons
for the families ceasing to participate in the
programs.
‘‘(iv) The prior and subsequent em-
ployment of participating families and the
effect of program participation on subse-
quent employment participation of the fam-
ilies.
‘‘(v) The costs and benefits of the pro-
grams of at-home infant care.
‘‘(vi) The effectiveness of State or tribal
efforts to improve the quality of infant care
during the period in which the demonstra-
tion project is conducted in the State.
381
‘‘(C) RESERVATION
OF
FUNDS.—Of the
amount appropriated under paragraph (10) for
a fiscal year, $750,000 shall be reserved with re-
spect to each such fiscal year for purposes of con-
ducting the evaluation required under this para-
graph.
‘‘(10) APPROPRIATIONS.—Out of any money in
the Treasury of the United States not otherwise ap-
propriated, there is appropriated to carry out this
subsection, $30,000,000 for each of fiscal years 2003
through 2007.’’.
SEC. 
707. 
GRANTS 
TO 
CONDUCT 
DEMONSTRATION
PROJECTS ON HOUSING WITH SERVICES FOR
FAMILIES 
WITH 
MULTIPLE 
BARRIERS 
TO
WORK.
Section 413 (42 U.S.C. 603(a)), as amended by section
706, is further amended by adding at the end the following:
‘‘(o) INTERAGENCY DEMONSTRATION
ON HOUSING
WITH SERVICES.—
‘‘(1) IN GENERAL.—The Secretary and the Sec-
retary of Housing and Urban Development (in this
subsection referred to as the ‘Secretaries’) jointly shall
award grants for the conduct and evaluation of dem-
onstrations of different models to provide housing
with services to promote the employment of individ-
382
uals who have multiple barriers to work, including
lack of adequate housing, and who are—
‘‘(A) parents or caretaker relatives who are
eligible for a benefit or service under the State
program funded under this part; or
‘‘(B) non-custodial parents of children who
are eligible for a benefit or service under such
State program.
‘‘(2) REQUIREMENTS.—
‘‘(A) ELIGIBLE RECIPIENTS.—Grants shall
be awarded under this subsection on a competi-
tive basis to States and organizations which have
exempt status under section 501(c)(3) of the In-
ternal Revenue Code of 1986, including commu-
nity and faith-based organizations.
‘‘(B) LOCATION.—In awarding such grants,
the Secretaries shall ensure that demonstrations
are conducted in metropolitan and nonmetro-
politan areas.
‘‘(C) USE OF FUNDS.—
‘‘(i) IN
GENERAL.—Funds provided
under a grant awarded under this sub-
section shall be used for the cost of imple-
mentation and evaluation of the demonstra-
tions conducted with such funds.
383
‘‘(ii) LIMITATION
ON
BENEFITS
OR
SERVICES
TO
NONCUSTODIAL
PARENTS.—
Not more than 10 percent of the total
amount of grant funds awarded to a State
or organization under this subsection may
be used to provide benefits or services to
noncustodial parents.
‘‘(D) NOT
CONSIDERED
ASSISTANCE.—A
benefit or service provided with funds made
available under a grant awarded under this sub-
section shall not for any purpose, be considered
assistance under the State program funded under
this part.
‘‘(E) DURATION; AVAILABILITY OF FUNDS.—
Funds provided under a grant awarded under
this subsection shall remain available for a pe-
riod of 3 years after the date on which the grant
is made.
‘‘(3) EVALUATION.—Not later than December 31,
2006, the Secretaries shall publish an evaluation of
the demonstrations conducted under grants made
under this subsection.
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to make grants
384
under this subsection, $50,000,000 for fiscal year
2004.’’.
SEC. 708. TRANSITIONAL COMPLIANCE FOR TEEN PARENTS.
(a) IN
GENERAL.—Section 408(a)(5) (42 U.S.C.
608(a)(5)) is amended—
(1) in subparagraph (A)(i), by striking ‘‘sub-
paragraph (B)’’ and inserting ‘‘subparagraphs (B)
and (C)’’; and
(2) by adding at the end the following:
‘‘(C) AUTHORITY TO PROVIDE TEMPORARY
ASSISTANCE.—A State may use any part of a
grant made under section 403 to provide assist-
ance to an individual described in clause (ii) of
subparagraph (A) who would otherwise be pro-
hibited from receiving such assistance under
clause (i) of that subparagraph, subparagraph
(B), or under section 408(a)(4) for not more
than 60 days in order to assist the individual in
meeting the requirement of clause (i) of subpara-
graph (A), subparagraph (B), or under section
408(a)(4) for receipt of such assistance.’’.
(b) INCLUSION
OF
TRANSITIONAL
LIVING
YOUTH
PROJECTS AS A FORM OF ADULT-SUPERVISED SETTING.—
Section 408(a)(5)(A) (42 U.S.C. 608(a)(5)(A)), as amended
by subsection (a), is further amended—
385
(1) by striking ‘‘do not reside in a’’ and insert-
ing ‘‘do not reside—
‘‘(I) in a’’;
(2) by striking the period and inserting ‘‘; or’’;
and
(3) by adding at the end the following:
‘‘(II) in a transitional living
youth project funded under a grant
made under section 321 of the Run-
away and Homeless Youth Act (42
U.S.C. 5714–1).’’.
SEC. 709. TANF PROGRAMS MANDATORY PARTNERS WITH
ONE-STOP EMPLOYMENT TRAINING CENTERS;
STATE OPT-OUT.
Section 408 (42 U.S.C. 608) is amended by adding
at the end the following:
‘‘(h) MANDATORY PARTNERS WITH ONE-STOP EM-
PLOYMENT
TRAINING
CENTERS
UNLESS
STATE
OPT-
OUT.—For purposes of section 121(b) of the Workforce In-
vestment Act of 1998, a State program funded under this
part shall be considered a program referred to in paragraph
(1)(B) of such section, unless, after the date of enactment
of this subsection, the Governor of the State notifies the Sec-
retary of Health and Human Services and the Secretary
386
of Labor in writing of the decision of the Governor not to
make the State program a mandatory partner.’’.
SEC. 710. ADVANCED PLANNING DOCUMENT PROCESS FOR
INFORMATION MANAGEMENT SYSTEMS PRO-
CUREMENT APPROVAL.
Not later than 1 year after the date of enactment of
this Act, the Secretary of Health and Human Services, the
Secretary of Agriculture, the Secretary of Labor, the Sec-
retary of Education, the Director of the Office of Manage-
ment and Budget, and the chief administering officer of any
other Federal agency with responsibility for administering
a federally funded social services program, in consultation
with representatives of the National Governors Association,
the American Public Human Services Association, and the
National Conference of State Legislatures, jointly shall re-
view and submit to Congress a report containing rec-
ommendations for improving the Federal laws (including
regulations and guidelines) applicable to the approval of
human service information systems. The report shall—
(1) review the advanced planning document
process for information management systems procure-
ment approval, in connection with the information
management systems required for States to efficiently
and effectively operate the social services programs;
387
(2) consider the merits of developing a single
Federal approval process for multiprogram informa-
tion system procurement and administration;
(3) include recommendations for improving the
current Federal cost allocation requirements; and
(4) consider the merits of allowing State procure-
ment standards that meet or exceed Federal standards
to be sufficient for purposes of Federal approval.
SEC. 711. WAIVERS.
(a) CONTINUATION OF PREWELFARE REFORM WAIV-
ERS.—Section 415 (42 U.S.C. 615) is amended by adding
at the end the following new subsection:
‘‘(e) CONTINUATION OF WAIVERS APPROVED OR SUB-
MITTED BEFORE DATE OF ENACTMENT OF WELFARE RE-
FORM.—
‘‘(1) IN GENERAL.—Notwithstanding subsection
(a) but subject to paragraph (2), with respect to any
State that is operating under a waiver described in
that subsection which would otherwise expire on a
date that occurs during the period that begins on Oc-
tober 1, 2002, and ends on September 30, 2007, the
State may elect to continue to operate under that
waiver, on the same terms and conditions as applied
to the waiver on the day before such date, through
September 30, 2007.
388
‘‘(2) NO EFFECT ON APPLICATION OF UNIVERSAL
ENGAGEMENT AND INDIVIDUAL RESPONSIBILITY PLAN
REQUIREMENTS.—Notwithstanding 
paragraph 
(1),
the continuation of a waiver under paragraph (1)
shall not affect the applicability of section 408(b) (as
amended by the Work, Opportunity, and Responsi-
bility for Kids Act of 2002) to the State.’’.
(b) APPROVAL OF WAIVERS TO DUPLICATE INNOVA-
TIVE PROGRAMS.—Section 415 (42 U.S.C. 615), as amend-
ed by subsection (a), is further amended by adding at the
end the following:
‘‘(f) REQUIREMENT TO APPROVE WAIVERS TO DUPLI-
CATE INNOVATIVE PROGRAMS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, if a State submits an application
for a waiver of 1 or more requirements of this part
that contains terms that are similar or identical to
the terms of a waiver eligible to be continued under
subsection (e), and the application satisfies the re-
quirements of paragraph (2), the Secretary—
‘‘(A) shall approve the application for a pe-
riod of at least 2 years, but not more than 4
years, unless the Secretary determines that ap-
proval would be inconsistent with the purposes of
this part set forth in section 401;
389
‘‘(B) at the end of the waiver period, shall
review documentation of the effectiveness of the
waiver provided by the State; and
‘‘(C) if such documentation adequately dem-
onstrates that the program as implemented
under the waiver has been effective, may renew
the waiver for such period as the Secretary deter-
mines appropriate, but not later than September
30, 2007.
‘‘(2) APPLICATION REQUIREMENTS.—An applica-
tion for a waiver described in paragraph (1) shall—
‘‘(A) describe relevant State caseload char-
acteristics and labor market conditions;
‘‘(B) specify how the waiver is likely to re-
sult in improved employment outcomes, im-
proved child well-being, or both;
‘‘(C) describe the State’s proposed approach
for evaluation of the program under the waiver;
and
‘‘(D) include an agreement to conduct an
independent evaluation of the waiver and to sub-
mit the results of the evaluation to the Sec-
retary.’’.
(c) CONFORMING AMENDMENT.—Section 415(b)(1) (42
U.S.C. 615(b)(1)) is amended by inserting ‘‘, extended
390
under subsection (e), or approved under subsection (f)’’ after
‘‘(a)’’.
SEC. 712. ANTIDISCRIMINATION.
(a) NONDISPLACEMENT IN WORK ACTIVITIES.—Sec-
tion 407(f) (42 U.S.C. 607(f)) is amended to read as follows:
‘‘(f) NONDISPLACEMENT.—
‘‘(1) IN GENERAL.—An adult in a family receiv-
ing assistance under a State program funded under
this part, in order to engage in a work activity, shall
not displace any employee or position (including par-
tial displacement, such as a reduction in the hours of
nonovertime work, wages, or employment benefits), fill
any unfilled vacancy, or perform work when any in-
dividual is on layoff from the same or substantially
equivalent job.
‘‘(2) PROHIBITIONS.—A work activity engaged
in under a program operated with funds provided
under this part shall not impair any existing con-
tract for services, be inconsistent with any existing
law, regulation, or collective bargaining agreement, or
infringe upon the recall rights or promotional oppor-
tunities of any worker.
‘‘(3) NO
SUPPLANTING
OF
OTHER
HIRES.—A
work activity engaged in under a program operated
with funds provided under this part shall be in addi-
391
tion to any activity that otherwise would be available
and shall not supplant the hiring of an employed
worker not funded under such program.
‘‘(4) ENFORCING
ANTIDISPLACEMENT
PROTEC-
TIONS.—
‘‘(A) IN GENERAL.—The State shall estab-
lish and maintain an impartial grievance proce-
dure, which shall include the opportunity for a
hearing, to resolve any complaints alleging viola-
tions of the requirements of paragraphs (1), (2),
or (3) within 60 days of receipt of the complaint
and, if a decision is adverse to the party who
filed such grievance or no decision has been
reached, provide for the completion of an arbi-
tration procedure within 75 days of receipt of
the complaint or the adverse decision or conclu-
sion of the 60-day period, whichever is earlier.
‘‘(B) REMEDIES.—Remedies for a violation
of the requirements of paragraph (1), (2), or (3)
shall include termination or suspension of pay-
ments, prohibition of the placement of the partic-
ipant, reinstatement of an employee, and other
relief to make an aggrieved employee whole.
‘‘(C) LIMITATION
ON
PLACEMENT.—If a
grievance is filed regarding a proposed place-
392
ment of a participant, such placement shall not
be made unless such placement is consistent with
the resolution of the grievance pursuant to this
paragraph.
‘‘(D) NONPREEMPTION OF STATE LAW.—The
provisions of this paragraph shall not be con-
strued to preempt any provision of State law
that affords greater protections to employees or
to other participants engaged in work activities
under a program funded under this part than is
afforded by the provisions of this paragraph.
‘‘(E) NON-EXCLUSIVE
PROCEDURES.—The
grievance procedures specified in this paragraph
are not exclusive, and an aggrieved employee or
participant in a program funded under a grant
made under this part may pursue other remedies
or procedures available under applicable con-
tracts, collective bargaining agreements, or Fed-
eral, State, or local laws.
(b) APPLICATION OF WORKPLACE LAWS TO TANF RE-
CIPIENTS.—Section 408 (42 U.S.C. 608), as amended by
section 709, is further amended by adding at the end the
following:
‘‘(i) APPLICATION OF WORKPLACE LAWS.—
393
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, workplace laws, including (but not
limited to) the Fair Labor Standards Act of 1938 (29
U.S.C. 201 et seq.), the Occupational Safety and
Health Act of 1970 (29 U.S.C. 651 et seq.), title VII
of the Civil Rights Act of 1964 (42 U.S.C. 2000e et
seq.), the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.), and title IX of the Education
Amendments of 1972 (20 U.S.C. 1681 et seq.) shall
apply to an individual who is a recipient of assist-
ance under the State program funded under this part
in the same manner as such laws apply to other
workers. The fact that such an individual is partici-
pating in, or seeking to participate in work activities
under the State program funded under this part in
satisfaction of the work activity requirements of the
program, shall not deprive the individual of the pro-
tection of any Federal, State, or local workplace
law.’’.
(c) NEUTRALITY.—Section 408(i) of the Social Secu-
rity Act (42 U.S.C. 608(h)), as added by subsection (b), is
amended by adding at the end the following:
‘‘(2) NEUTRALITY.—No funds provided under
this part shall be used to assist, promote, or deter or-
ganizing for the purpose of collective bargaining.’’.
394
(d) STUDY REGARDING COMPLIANCE WITH NON-
DISCRIMINATION PROVISIONS.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct a study to
determine—
(A) the extent to which States have com-
plied with the requirement of section 408(d) of
the Social Security Act (42 U.S.C. 608(d)) that
the provisions of law referred to in that section
apply to any program or activity which receives
funds provided under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.); and
(B) recommendations for improving such
compliance.
(2) REPORT.—Not later than 1 year after the
date of enactment of this Act, the Comptroller General
shall submit a report to Congress on the study con-
ducted under paragraph (1).
(e) BAN ON IMPOSITION OF STRICTER ELIGIBILITY
CRITERIA FOR 2-PARENT FAMILIES.—
(1) PROHIBITION.—Section 408(a) (42 U.S.C.
608(a)) is amended by adding at the end the fol-
lowing:
‘‘(12) BAN ON IMPOSITION OF STRICTER ELIGI-
BILITY CRITERIA FOR 2-PARENT FAMILIES.—In deter-
395
mining the eligibility of a 2-parent family for any
benefit or service funded under this part or funded
with non-Federal funds counting toward the State’s
qualified State expenditures under section 409(a)(7),
the State shall not impose a requirement that does not
apply in determining the eligibility of a 1-parent
family for such assistance.’’.
(2) 
PENALTY.—Section 
409(a) 
(42 
U.S.C.
609(a)), as amended by section 109, is amended by
inserting after paragraph (5), the following:
‘‘(6) PENALTY
FOR
IMPOSITION
OF
STRICTER
ELIGIBILITY CRITERIA FOR 2-PARENT FAMILIES.—
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State to which a grant is made
under section 403 for a fiscal year has violated
section 408(a)(12) during the fiscal year, the
Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the imme-
diately succeeding fiscal year by an amount up
to 5 percent of the State family assistance grant.
‘‘(B) PENALTY
BASED
ON
SEVERITY
OF
FAILURE.—The Secretary shall impose reduc-
tions under subparagraph (A) with respect to a
fiscal year based on the degree of noncompli-
ance.’’.
396
(3) ASSURANCE OF EQUAL TREATMENT.—Section
402(a) (42 U.S.C. 602(a)), as amended by section
702(3), is amended by adding at the end the fol-
lowing:
‘‘(11) CERTIFICATION OF EQUAL TREATMENT OF
2-PARENT FAMILIES.—The chief executive officer of the
State shall submit to the Secretary a certification
that in conducting the State program funded under
this part, the State does not have rules or procedures
that discriminate against 2-parent families.’’.
TITLE VIII—OTHER PROVISIONS
SEC. 801. REVIEW OF STATE AGENCY BLINDNESS AND DIS-
ABILITY DETERMINATIONS.
Section 1633 of the Social Security Act (42 U.S.C.
1383b) is amended by adding 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—
397
‘‘(i) at least 25 percent of all determinations re-
ferred to in paragraph (1) that are made in fiscal
year 2003; and
‘‘(ii) at least 50 percent of all such determina-
tions that are made in fiscal year 2004 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 in-
correct.’’.
SEC. 802. CUSTOMS USER FEES.
Section 13031(j)(3) of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is
amended by striking ‘‘September 30, 2003’’ and inserting
‘‘February 28, 2005’’.
TITLE IX—EFFECTIVE DATE
SEC. 901. EFFECTIVE DATE.
(a) IN GENERAL.—Except as otherwise provided, the
amendments made by this Act shall take effect on October
1, 2002.
(b) EXCEPTION.—In the case of a State plan under
part A or D of title IV of the Social Security Act which
the Secretary determines requires State legislation in order
for the plan to meet the additional requirements imposed
by the amendments made by this Act, the effective date of
398
the amendments imposing the additional requirements 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 legislature that begins after the date of 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.