I
107TH CONGRESS
2D SESSION
H. R. 4669
To provide for racial equity and fair treatment under the program of block
grants to States for temporary assistance for needy families.
IN THE HOUSE OF REPRESENTATIVES
MAY 7, 2002
Ms. EDDIE BERNICE JOHNSON of Texas (for herself, Ms. KILPATRICK, Mr.
OWENS, Ms. LEE, Mr. CONYERS, Mr. HILLIARD, Ms. MCKINNEY, Mr.
BLAGOJEVICH, Mr. RUSH, Mr. PAYNE, Ms. VELA´ZQUEZ, Mr. RANGEL,
Ms. WATERS, and Mr. CUMMINGS) introduced the following bill; which
was referred to the Committee on Ways and Means
A BILL
To provide for racial equity and fair treatment under the
program of block grants to States for temporary assist-
ance for needy families.
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 ‘‘Racial Equity and Fair
Treatment 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. Amendment of Social Security Act.
TITLE I—ENSURING EQUAL ACCESS
Sec. 101. Competitive grants to improve access to various benefit programs.
Sec. 102. Assessments for TANF recipients.
Sec. 103. Revision of work activities.
Sec. 104. Provision of interpretation and translation services.
TITLE II—STRENGTHENING FAIR TREATMENT AND
ANTIDISCRIMINATION PROTECTIONS
Subtitle A—Strengthening and Streamlining of Antidiscrimination Protections
Sec. 201. Requirement to establish expedited process for discrimination com-
plaints.
Sec. 202. Establishment of standardized, fair sanction process.
Sec. 203. Requirement to provide opportunity to appeal adverse decision.
Sec. 204. Notification of potential services and protections.
Sec. 204. Penalties against individuals for unjustified refusal to work; addi-
tional justifications.
Sec. 205. Requirement to provide information to individuals who are, or are at
risk of being, sanctioned.
Sec. 206. Nondiscrimination.
Sec. 207. Ban on diversion of potential applicants for assistance.
Subtitle B—Related Provisions
Sec. 211. Ban on penalizing entire family for misconduct of 1 family member.
Sec. 212. Eliminate double jeopardy for recipients with past drug offenses.
Sec. 213. 5-year time limit.
TITLE III—FAIRNESS FOR IMMIGRANTS
Sec. 301. Treatment of aliens under the TANF program.
Sec. 302. Treatment of aliens under the SSI program.
Sec. 303. Inclusion of participation in English-as-a-second-language program
among permissible work activities.
TITLE IV—ENCOURAGE RACIAL EQUALITY
Sec. 401. Racial performance measure as evaluation criterion in determining
high performance bonus.
Sec. 402. Ban on violating antidiscrimination law.
Sec. 403. Data collection and reporting.
Sec. 404. Access to welfare; welfare outcomes.
Sec. 405. Longitudinal studies of TANF recipients.
SEC. 3. AMENDMENT OF SOCIAL SECURITY ACT.
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.
TITLE I—ENSURING EQUAL
ACCESS
SEC. 101. COMPETITIVE GRANTS TO IMPROVE ACCESS TO
VARIOUS BENEFIT PROGRAMS.
(a) PURPOSES.—The purposes of this section are
to—
(1) inform low-income families with children
about programs available to families leaving welfare
and other programs to support low-income families
with children;
(2) provide incentives to States and counties to
improve and coordinate application and renewal pro-
cedures for low-income family with children support
programs; and
(3) track the extent to which low-income fami-
lies with children receive the benefits and services
for which they are eligible.
(b) DEFINITIONS.—In this section:
(1) LOCALITY.—The term ‘‘locality’’ means a
municipality that does not administer a program
funded under part A of title IV of the Social Secu-
rity Act (in this section referred to as ‘‘TANF’’).
(G) the earned income tax credit under
section 32 of the Internal Revenue Code of
1986;
(H) the low-income home energy assistance
program (LIHEAP) established under the Low-
Income Home Energy Assistance Act of 1981
(42 U.S.C 8621 et seq.);
(I) the special supplemental nutrition pro-
gram for women, infants, and children (WIC)
established under section 17 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786);
(J) programs under the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2801 et seq.); and
(K) any other Federal or State funded pro-
gram designed to provide family and work sup-
port to low-income families with children.
(3) NONPROFIT.—The term ‘‘nonprofit’’, as ap-
plied to a school, agency, organization, or institution
means a school, agency, organization, or institution
owned and operated by 1 or more nonprofit corpora-
tions or associations, no part of the net earnings of
which inures, or may lawfully inure, to the benefit
of any private shareholder or individual.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(5) STATE.—The term ‘‘State’’ means each of
the several States of the United States, the District
of Columbia, the Commonwealth of Puerto Rico,
American Samoa, Guam, and the United States Vir-
gin Islands.
(c) AUTHORIZATION OF GRANTS.—
(1) STATES AND COUNTIES.—
(A) IN
GENERAL.—The Secretary may
award grants to States and counties to pay the
Federal share of the costs involved in improving
the administration of low-income family with
children support programs, including simpli-
fying application, recertification, reporting, and
verification rules, and promoting participation
in such programs.
(B) FEDERAL SHARE.—The Federal share
shall be 80 percent.
(2) NONPROFITS AND LOCALITIES.—The Sec-
retary may award grants to nonprofits and localities
to promote participation in low-income family with
children support programs, and distribute informa-
tion about and develop service centers for low-in-
come family with children support programs.
(d) GRANT APPROVAL CRITERIA.—
(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of Agriculture, shall establish
criteria for approval of an application for a grant
under this section that include consideration of—
(A) the extent to which the proposal, if
funded, is likely to result in improved service
and higher participation rates in low-income
children’s support programs;
(B) an applicant’s ability to reach hard-to-
serve populations;
(C) the level of innovation in the appli-
cant’s grant proposal; and
(D) any partnerships between the public
and private sector in the applicant’s grant pro-
posal.
(2) SEPARATE
CRITERIA.—Separate criteria
shall be established for the grants authorized under
paragraphs (1) and (2) of subsection (c).
(e) USES OF FUNDS.—
(1) STATES AND COUNTIES.—
(A) 
IMPROVEMENTS
IN
PROGRAMS.—
Grants awarded to States and counties under
subsection (c)(1) shall be used to—
(i) simplify low-income family with
children support program application, re-
certification, reporting, and verification
rules;
(ii) create uniformity in eligibility cri-
teria for low-income family with children
support programs;
(iii) develop options for families to
apply for low-income family with children
support programs through the telephone,
mail, facsimile, Internet, or electronic mail,
and submit any recertifications or reports
required for such families through these
options;
(iv) co-locate eligibility workers for
various low-income family with children
support programs at strategically located
sites;
(v) develop or enhance one-stop serv-
ice centers for low-income family with chil-
dren support programs, including estab-
lishing evening and weekend hours at these
centers; and
(vi) improve training of staff in low-
income families with children support pro-
grams to enhance their ability to enroll eli-
gible applicants in low-income family with
children support programs, provide case
management, and refer eligible applicants
to other appropriate programs.
(B) CUSTOMER SURVEYS.—
(i) IN GENERAL.—A grant awarded to
a State or county under subsection (c)(1)
shall be used to carry out a customer sur-
vey.
(ii) MODEL SURVEYS.—The customer
survey under clause (i) of this subpara-
graph shall be modeled after a form devel-
oped by the Secretary under subsection
(g).
(iii) REPORTS
TO
SECRETARY.—Not
later than 1 year after a State or county
is awarded a grant under subsection (c)(1),
and annually thereafter, the State or coun-
ty shall submit a report to the Secretary
detailing the results of the customer survey
carried out under clause (i) of this sub-
paragraph.
(iv) REPORTS TO PUBLIC.—A State or
county receiving a grant under subsection
(c)(1) and the Secretary shall make the re-
port required under clause (iii) of this sub-
paragraph available to the public.
(v) PUBLIC
COMMENT.—A State or
county receiving a grant under subsection
(c)(1) shall accept public comments and
hold public hearings on the report made
available under clause (iv) of this subpara-
graph.
(C) TRACKING SYSTEMS.—
(i) IN GENERAL.—A grant awarded to
a State or county under subsection (c)(1)
shall be used to implement a tracking sys-
tem to determine the level of participation
in low-income family with children support
programs of the eligible population.
(ii) REPORTS.—Not later than 1 year
after a State or county is awarded a grant
under subsection (c)(1), and annually
thereafter, the State or county shall submit
a report to the Secretary detailing the ef-
fectiveness of the tracking system imple-
mented under clause (i) of this subpara-
graph.
(D) IN-PERSON INTERVIEWS.—A State or
county awarded a grant under subsection (c)(1)
(2) NONPROFITS
AND
LOCALITIES.—A grant
awarded to a nonprofit or locality under subsection
(c)(2) shall be used to—
(A) develop one-stop service centers for
low-income family with children support pro-
grams in cooperation with States and counties;
or
(B) provide information about and refer-
rals to low-income family with children support
programs through the dissemination of mate-
rials at strategic locations, including schools,
clinics, and shopping locations.
(f) APPLICATION.—
(1) IN GENERAL.—Each applicant desiring a
grant under paragraph (1) or (2) of subsection (c)
shall submit an application to the Secretary at such
time, in such manner, and accompanied by such in-
formation as the Secretary may reasonably require.
(2) STATES AND COUNTIES.—
(A) NON-FEDERAL SHARE.—Each State or
county applicant shall provide assurances that
the applicant will pay the non-Federal share of
the activities for which a grant is sought.
(B) PARTNERSHIPS.—Each State or coun-
ty applicant shall submit a memorandum of un-
derstanding demonstrating that the applicant
has entered into a partnership to coordinate its
efforts under the grant with the efforts of other
State and county agencies that have responsi-
bility for providing low-income families with as-
sistance or benefits.
(g) DUTIES OF THE SECRETARY.—
(1) SURVEY FORM.—The Secretary, in coopera-
tion with other relevant agencies, shall develop a
customer survey form to determine whether low-in-
come families—
(A) encounter any impediments in applying
for or renewing their participation in low-in-
come family with children support programs;
and
(B) are unaware of low-income family with
children support programs for which they are
eligible.
(2) REPORTS.—
(A) ANNUAL REPORTS.—Not later than 1
year after the date of enactment of this Act,
and annually thereafter, the Secretary shall
submit a report to Congress describing the uses
of grant funds awarded under this section.
(B) RESULTS OF TRACKING SYSTEMS AND
SURVEYS.—The Secretary shall submit a report
to Congress detailing the results of the tracking
systems implemented and customer surveys car-
ried out by States and counties under sub-
section (e) as the information becomes avail-
able.
(h) MISCELLANEOUS.—
(1) MATCHING
FUNDS.—Matching funds re-
quired from a State or county awarded a grant
under subsection (c)(1) of this section may—
(A) include in-kind services and expendi-
tures by municipalities and private entities; and
(B) be considered a qualified State expend-
iture for purposes of determining whether the
State has satisfied the maintenance of effort re-
quirements of the temporary assistance for
needy families program under section 409(a)(7)
of 
the 
Social 
Security 
Act 
(42 
U.S.C.
609(a)(7)).
(2) LIMITATION
ON
EXPENDITURES.—Subject
to paragraph (3) of this subsection, not more than
20 percent of a grant awarded under subsection (c)
shall be expended on customer surveys or tracking
systems.
(3) REVERSION OF FUNDS.—Any funds not ex-
pended by a grantee within 2 years after awarded a
grant shall be available for redistribution among
other grantees in such manner and amount as the
Secretary may determine, unless the Secretary ex-
tends by regulation the 2-year time period to expend
funds.
(4) 
NONAPPORTIONMENT.—Notwithstanding
any other provision of law, a State, county, locality,
or nonprofit awarded a grant under subsection (c) is
not required to apportion the costs of providing in-
formation about low-income family with children
support programs among all low-income family with
children support programs.
(5) ADMINISTRATIVE
COSTS
OF
THE
SEC-
RETARY.—Not more than 5 percent of the funds ap-
propriated to carry out this section shall be ex-
pended on administrative costs of the Secretary.
(i) LIMITATIONS ON AUTHORIZATION OF APPROPRIA-
TIONS.—There is authorized to be appropriated to carry
out this section not more than $300,000,000 for fiscal
years 2003 through 2007.
SEC. 102. ASSESSMENTS FOR TANF RECIPIENTS.
Section 408(b) (42 U.S.C. 608(b)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) ASSESSMENT.—The State agency respon-
sible for administering the State program funded
under this part shall, for each recipient of assistance
under the program who is a head of household,
make an initial assessment of the skills, prior work
experience, and circumstances related to the employ-
ability of the recipient, including physical or mental
impairments, proficiency in English, child care
needs, and whether the recipient is a victim of do-
mestic violence.’’; and
(2) by striking paragraph (4).
SEC. 103. REVISION OF WORK ACTIVITIES.
(a) IN
GENERAL.—Section 407(d) (42 U.S.C.
607(d)) is amended—
(1) by striking paragraph (4) and inserting the
following:
‘‘(4) transitional work experience leading to
jobs that provide an income of not less than 250
percent of the poverty line;’’;
(2) by striking paragraph (7) and inserting the
following:
‘‘(7) voluntary participation in a community
service program;’’;
(3) in paragraph (8), by striking ‘‘(not to ex-
ceed 12 months with respect to any individual)’’;
and
(4) by striking paragraphs (10) through (12)
and inserting the following:
‘‘(10) participation in a State or Federal work-
study program under part C of title IV of the High-
er Education Act of 1965;’’;
‘‘(11) education, including not more than 6
hours of home study per week, in the case of a re-
cipient who is enrolled—
‘‘(A) at an elementary or secondary school
(as defined in the Elementary and Secondary
Education Act of 1965);
‘‘(B) in a course of study leading to adult
literacy, English as a second language, or a cer-
tificate of high school equivalency; or
‘‘(C) at an institution of higher education
(as defined in section 102 of the Higher Edu-
cation Act of 1965), regardless of the content
of the course of study;
‘‘(12) the provision of appropriate care to a
child who has a disability or a serious health condi-
tion (as defined in section 101(11) of the Family
Medical Leave Act) or has not attained 6 years of
age, by a recipient who is a parent or caretaker rel-
ative of the child; and
‘‘(13) participation in treatment or an edu-
cational activity designed to address a mental health
problem, disability, substance abuse, or domestic or
sexual violence.’’.
(b) CONFORMING AMENDMENTS.—Section 407 (42
U.S.C. 607) is amended—
(1) in subsection (b), by striking paragraph (5);
and
(2) in subsection (c)—
(A) in each of subparagraphs (A) and
(B)(i) of paragraph (1), by striking ‘‘not fewer
than’’ and all that follows through ‘‘subsection
(d),’’;
(B) in paragraph (1)(B)(ii), by striking
‘‘not fewer than’’ and all that follows through
‘‘subsection (d)’’; and
(C) in paragraph (2), by striking subpara-
graph (D).
SEC. 104. PROVISION OF INTERPRETATION AND TRANS-
LATION SERVICES.
(a) IN GENERAL.—Section 408(a) (42 U.S.C. 608(a)
is amended by adding at the end the following:
‘‘(12) PROVISION
OF
INTERPRETATION
AND
TRANSLATION SERVICES.—A State to which a grant
is made under section 403(a) for a fiscal year shall
provide appropriate interpretation and translation
services at any office of the State program funded
under this part that is responsible for handling the
cases of 100 or more recipients of assistance under
the program who share a native language that is not
English.’’.
(b) PENALTY.—Section 409(a)(7)(B)(ii) (42 U.S.C.
609(a)(7)(B)(ii)) is amended by adding at the end the fol-
lowing: ‘‘The applicable percentage otherwise in effect
with respect to a State for a fiscal year shall be increased
by 5 percentage points if the Secretary determines that
in the preceding fiscal year the State failed to comply with
section 408(a)(12).’’.
TITLE II—STRENGTHENING FAIR
TREATMENT 
AND 
ANTI-
DISCRIMINATION 
PROTEC-
TIONS
Subtitle 
A—Strengthening 
and
Streamlining of Antidiscrimina-
tion Protections
SEC. 201. REQUIREMENT TO ESTABLISH EXPEDITED PROC-
ESS FOR DISCRIMINATION COMPLAINTS.
(a) IN GENERAL.—Section 408 (42 U.S.C. 608) is
further amended by adding at the end the following:
‘‘(13) REQUIREMENT
TO
ESTABLISH
EXPE-
DITED
PROCESS
FOR
DISCRIMINATION
COM-
PLAINTS.—
‘‘(A) INTAKE.—A State to which a grant is
made under section 403 shall establish 1 cen-
tral location at which a recipient of assistance
under the State program funded under this
part may file with the State and have adju-
dicated a complaint alleging discriminatory
treatment under the program.
‘‘(B) DEADLINES.—
‘‘(i) Within 30 days after a recipient
files a complaint pursuant to subparagraph
(A), the State shall notify the recipient
that the State has received the complaint.
‘‘(ii) Within 60 days after the State
receives a complaint filed pursuant to sub-
paragraph (A), the State shall begin to in-
vestigate the complaint.
‘‘(iii) Within 90 days after the State
receives a complaint filed pursuant to sub-
paragraph (A), the State shall adjudicate
the complaint.
‘‘(3) NO INTERRUPTION IN ASSISTANCE WHILE
COMPLAINT IS PENDING.—During the pendency of a
complaint filed pursuant to paragraph (1), assist-
ance to any recipient under a State program funded
under this part shall not be affected by reason of the
complaint.’’.
(b) PENALTY.—Section 409(a)(7)(B)(ii) (42 U.S.C.
609(a)(7)(B)(ii)) is amended by adding at the end the fol-
lowing: ‘‘The applicable percentage otherwise in effect
with respect to a State for a fiscal year shall be increased
by 5 percentage points if the Secretary determines that
in the preceding fiscal year the State failed to comply with
section 408(a)(13).’’.
SEC. 202. ESTABLISHMENT OF STANDARDIZED, FAIR SANC-
TION PROCESS.
(a) REQUIREMENT TO PROVIDE NOTICE OF RIGHTS
OF RECIPIENTS, AND TRAIN PROGRAM PERSONNEL IN
RESPECTING THE RIGHTS.—
(1) IN GENERAL.—Section 408(a) (42 U.S.C.
608(a)) is further amended by adding at the end the
following:
‘‘(14) REQUIREMENT TO PROVIDE NOTICE OF
RIGHTS OF RECIPIENTS, AND TRAIN PROGRAM PER-
SONNEL TO CARRY OUT PROGRAM CONSISTENT WITH
THE RIGHTS.—A State to which a grant is made
under section 403 shall—
‘‘(A) notify each recipient of assistance
under the program of the rights of recipients
under all laws applicable to the activities of the
State program funded under this part, and
shall provide the notice—
‘‘(i) to a recipient when the recipient
enters the program;
‘‘(ii) to all such recipients on a semi-
annual basis; and
‘‘(iii) orally and in writing, in the na-
tive language of the recipient and at a 6th
grade level, and if the native language is
not English, a culturally competent trans-
lation shall be provided; and
‘‘(B) train all program personnel on a reg-
ular basis in how to carry out the program con-
sistent with the rights.’’.
(2) PENALTY.—Section 409(a)(7)(B)(ii) (42
U.S.C. 609(a)(7)(B)(ii)) is amended by adding at
the end the following: ‘‘The applicable percentage
otherwise in effect with respect to a State for a fis-
cal year shall be increased by 5 percentage points if
the Secretary determines that in the preceding fiscal
year the State failed to comply with section
408(a)(14).’’.
(b) REVIEW AND CONCILIATION PROCESS.—
(1) REQUIREMENT.—Section 408(a) (42 U.S.C.
608(a)) is further amended by adding at the end the
following:
‘‘(15) REVIEW AND CONCILIATION PROCESS RE-
QUIREMENTS.—A State to which a grant is made
under section 403 shall not impose a sanction
against a person under the State program funded
under this part, unless the State—
‘‘(A) has attempted at least twice (using at
least 2 different methods) to notify the person
of the impending imposition of the sanction, the
reason for the proposed sanction, the amount of
the sanction, the length of time during which
the proposed sanction would be in effect, and
the steps required to come into compliance or to
show good cause for noncompliance;
‘‘(B) 
has 
afforded 
the 
person 
an
opportunity—
‘‘(i) to meet with the caseworker in-
volved or another individual who has au-
thority to determine whether to impose the
sanction; and
‘‘(ii) to explain why the person did not
comply with the requirement on the basis
of which the sanction is to be imposed;
‘‘(C) has considered and taken any such
explanation into account in determining to im-
pose the sanction;
‘‘(D) has specifically considered whether
certain conditions exist, such as a physical or
mental impairment, domestic violence, or lim-
ited proficiency in English, that contributed to
the noncompliance of the person; and
‘‘(E) in determining whether to impose the
sanction, has used screening tools developed in
consultation with individuals or groups with ex-
pertise in matters described in subparagraph
(D).’’.
(2) PENALTY.—Section 409(a) (42 U.S.C.
609(a)) is amended by adding at the end the fol-
lowing:
‘‘(15) PENALTY
FOR
FAILURE
OF
STATE
TO
USE REVIEW AND CONCILIATION PROCESS.—
‘‘(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)(15) 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
equal to 5 percent of the State family assist-
ance 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.’’.
SEC. 203. REQUIREMENT TO PROVIDE OPPORTUNITY TO
APPEAL ADVERSE DECISION.
(a) IN GENERAL.—Section 408(a) (42 U.S.C. 608(a)
is further amended by adding at the end the following:
‘‘(16) REQUIREMENT
TO
PROVIDE
OPPOR-
TUNITY TO APPEAL ADVERSE DECISION.—A State to
which a grant is made under section 403 shall pro-
vide an applicant or recipient of assistance under the
State program funded under this part with the op-
portunity to appeal any adverse decision made with
respect to the applicant or recipient under the pro-
gram.’’.
(b) PENALTY.—Section 409(a) (42 U.S.C. 608(a)) is
further amended by adding at the end the following:
‘‘(16) PENALTY FOR FAILURE TO PROVIDE OP-
PORTUNITY TO APPEAL ADVERSE DECISION.—If the
Secretary determines that a State to which a grant
is made under section 403 for a fiscal year has vio-
lated section 408(a)(16) during the fiscal year, the
Secretary shall reduce the grant payable to the State
under section 403(a)(1) for the immediately suc-
ceeding fiscal year by an amount equal to 5 percent
of the State family assistance grant.’’.
(c) REQUIREMENT TO PROVIDE RECIPIENTS PER-
FORMING A WORK ACTIVITY WITH A GRIEVANCE PROCE-
DURE.—
(1) IN GENERAL.—Section 408(a) (42 U.S.C.
608(a) is further amended by adding at the end the
following:
‘‘(17) REQUIREMENT TO PROVIDE RECIPIENTS
WITH A GRIEVANCE PROCEDURE.—A State to which
a grant is made under section 403 shall provide an
applicant or recipient of assistance under the State
program who is engaged in a work activity pursuant
to section 407 with the same grievance procedure
that is available to other workers at same site, or if
there is no such procedure available, shall establish
a system that provides for timely dispute resolution,
does not limit preexisting fair hearing rights, and al-
lows for an anonymous proceeding in appropriate
circumstances.’’.
(2) PENALTY.—Section 409(a)(7)(B)(ii) (42
U.S.C. 609(a)(7)(B)(ii)) is further amended by add-
ing at the end the following: ‘‘The applicable per-
centage otherwise in effect with respect to a State
for a fiscal year shall be increased by 5 percentage
points if the Secretary determines that in the pre-
ceding fiscal year the State failed to comply with
section 408(a)(17).’’.
SEC. 204. NOTIFICATION OF POTENTIAL SERVICES AND
PROTECTIONS.
(a) STATE PLAN REQUIRED TO DESCRIBE HOW
STATES WILL NOTIFY APPLICANTS AND RECIPIENTS OF
THEIR RIGHTS UNDER THE PROGRAM AND OF POTEN-
TIAL BENEFITS AND SERVICES AVAILABLE UNDER THE
PROGRAM.—Section 
402(a)(1)(B)(iii) 
(42 
U.S.C.
602(a)(1)(B)(iii)) is amended by inserting ‘‘and will notify
applicants and recipients of assistance under the program
of the rights of individuals under all laws applicable to
program activities and of all potential benefits and services
available under the program’’ before the period.
(b) REQUIREMENT TO PROVIDE NOTICE TO APPLI-
CANTS AND RECIPIENTS OF RIGHTS AND OF POTENTIAL
PROGRAM BENEFITS AND SERVICES, AND TRAIN PRO-
GRAM PERSONNEL IN RESPECTING THE RIGHTS.—
(1) IN GENERAL.—Section 408(a) (42 U.S.C.
608(a)) is further amended by adding at the end the
following:
‘‘(18) REQUIREMENT TO PROVIDE NOTICE TO
APPLICANTS AND RECIPIENTS OF RIGHTS AND OF
POTENTIAL PROGRAM BENEFITS AND SERVICES, AND
TRAIN
PROGRAM
PERSONNEL
TO
RESPECT
THE
RIGHTS.—A State to which a grant is made under
section 403 shall—
‘‘(A) notify each applicant for, and each
recipient of assistance under the program of the
rights of applicants and recipients under all
laws applicable to the activities of the State
program funded under this part (including the
right to claim good cause exceptions to program
requirements), and shall provide the notice—
‘‘(i) to a recipient when the recipient
enters the program;
‘‘(ii) to all such recipients on a semi-
annual basis; and
‘‘(iii) orally and in writing, in the na-
tive language of the recipient and at a 6th
grade level, and if the native language is
not English, a culturally competent trans-
lation shall be provided; and
‘‘(B) train all program personnel on a reg-
ular basis in how to carry out the program con-
sistent with the rights.’’.
(2) PENALTY.—Section 409(a)(7)(B)(ii) (42
U.S.C. 609(a)(7)(B)(ii)) is amended by adding at
the end the following: ‘‘The applicable percentage
otherwise in effect with respect to a State for a fis-
cal year shall be increased by 5 percentage points if
the Secretary determines that in the preceding fiscal
year the State failed to comply with section
408(a)(18).’’.
SEC. 204. PENALTIES AGAINST INDIVIDUALS FOR UNJUSTI-
FIED REFUSAL TO WORK; ADDITIONAL JUS-
TIFICATIONS.
(a) IN GENERAL.—Section 407(e) (42 U.S.C. 607(e))
is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, if an individual in a family
receiving assistance under the State program funded
under this part refuses to engage in work required
in accordance with this section, the State shall, sub-
ject to such good cause and other exceptions as the
State may establish, reduce the amount of assistance
otherwise payable to the family on a pro rata basis,
but to not less than the amount that would be pay-
able to a family with the same number of children
but with no adults, with respect to any period during
a month in which the individual so refuses.’’;
(2) in paragraph (2)—
(A) by striking ‘‘EXCEPTION’’ and insert-
ing ‘‘CHILD CARE EXCEPTION’’; and
(B) by striking ‘‘proves that the individual
has a demonstrated inability (as determined by
the State)’’ and inserting ‘‘certifies that the in-
dividual is unable’’; and
(3) by adding at the end the following:
‘‘(3) ADDITIONAL CHILD CARE EXCEPTIONS.—
Notwithstanding paragraph (1), a State may not re-
duce or terminate assistance under the State pro-
gram funded under this part based on a refusal of
an individual to engage in work required in accord-
ance with this section if the individual is a custodial
parent or caretaker relative caring for—
‘‘(A) a child who has a disability or a seri-
ous health condition (as defined in section
101(11) of the Family Medical Leave Act), and
the individual does not have meaningful access
to safe, appropriate, affordable, and quality
care for the child; or
‘‘(B) a child who has attained 6 years of
age, and the individual does not have meaning-
ful access to safe, appropriate, affordable, and
quality after-school or summer care for the
child.
‘‘(4) MENTAL HEALTH PROBLEM, DISABILITY,
SUBSTANCE ABUSE, OR DOMESTIC OR SEXUAL VIO-
LENCE
EXCEPTION.—Notwithstanding 
paragraph
(1), a State may not reduce or terminate assistance
under the State program funded under this part
based on the failure of any individual who has a
mental health problem, disability, or substance abuse
problem, or who is a victim of sexual or domestic vi-
olence to engage in work required in accordance with
this section if—
‘‘(A) the individual is in the process of
being screened or assessed for the mental
health problem, disability, substance abuse
problem, or sexual or domestic violence situa-
tion but the screening or assessment has not
been completed;
‘‘(B) the individual has not been offered
appropriate treatment, counseling, vocational
rehabilitation, job training, and other services
to address the problem or disability; or
‘‘(C) the individual cannot comply because
of the need to seek medical, legal, or other serv-
ices in relation to the mental health problem,
disability, or sexual or domestic violence situa-
tion.
‘‘(5) MINIMUM
WAGE
EXCEPTION.—Notwith-
standing paragraph (1), a State may not impose a
sanction under the State program funded under this
part on the basis of the refusal of an individual to
accept any employment (including any employment
offered under the program), if the wage rate for the
employment does not equal or exceed the greater
of—
‘‘(A) the minimum wage rate then in effect
under section 6 of the Fair Labor Standards
Act of 1938; or
‘‘(B) any minimum wage rate prescribed
by or under the law of the State.
‘‘(6) DISCRIMINATION EXCEPTION.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), a State may not reduce or terminate
assistance under the State program funded
under this part based on the failure of any indi-
vidual to engage in work required in accordance
with this section if the individual certifies in a
manner described in subparagraph (B) that the
individual has left or refused work based on dis-
crimination.
‘‘(B) CERTIFICATION.—An individual may
provide a certification required by subparagraph
(A) by sworn written statement or by providing
other documentation, including a police or court
record or documentation by a shelter worker, an
employee of a victim assistance program, an at-
torney, a member of the clergy, or a medical or
other professional from whom the individual has
sought assistance as a victim.’’.
(b) 
CONFORMING
AMENDMENTS.—Section
409(a)(11) (42 U.S.C 609(a)(11)) is amended—
(1) in the paragraph heading, by striking ‘‘WHO
CANNOT
OBTAIN
CHILD
CARE
FOR
CHILD
UNDER
AGE 6’’ and inserting ‘‘WITH JUSTIFIED REFUSAL TO
WORK’’; and
(2) 
in 
subparagraph 
(A), 
by 
striking
‘‘407(e)(2)’’ and inserting ‘‘407(e)’’.
SEC. 205. REQUIREMENT TO PROVIDE INFORMATION TO IN-
DIVIDUALS WHO ARE, OR ARE AT RISK OF
BEING, SANCTIONED.
(a) IN
GENERAL.—Section 408(a) (42 U.S.C.
608(a)) is further amended by adding at the end the fol-
lowing:
‘‘(19) STATE REQUIRED TO PROVIDE INFORMA-
TION TO INDIVIDUAL WHO HAS BEEN, OR IS AT RISK
OF BEING SANCTIONED.—A State to which a grant
is made under section 403 shall provide to any indi-
vidual who has been, or is at risk of being, sanc-
tioned under the State program funded under this
part for noncompliance with a program requirement,
orally and in writing, at not more than a 6th grade
level in the native language of the individual (and if
the native language is not English, a culturally com-
petent translation shall be provided), a notice—
‘‘(A) of the noncompliance, the existence of
good cause exceptions to the requirement, and
how to claim such an exception;
‘‘(B) that program requirements may be
waived for people dealing with a mental health,
disability, substance abuse, domestic violence,
or sexual assault issue;
‘‘(C) that an individual dealing with a
mental health, disability, substance abuse, do-
mestic violence, or sexual assault issue may re-
quest (or if the individual has left or been re-
moved from the program, may return to the
program and request) to be assessed under the
program for services to address those issues, in-
cluding appropriate treatment, counseling, voca-
tional rehabilitation, job training, or other serv-
ices; and
‘‘(D) that the State is required to keep any
such information strictly confidential.’’.
(b) PENALTY.—Section 409(a)(7)(B)(ii) (42 U.S.C.
609(a)(7)(B)(ii)) is further amended by adding at the end
the following: ‘‘The applicable percentage otherwise in ef-
fect with respect to a State for a fiscal year shall be in-
creased by 5 percentage points if the Secretary determines
that in the preceding fiscal year the State failed to comply
with section 408(a)(19).’’.
SEC. 206. NONDISCRIMINATION.
(a) RULE OF INTERPRETATION.—Section 408(d) (42
U.S.C. 608(d) is amended by adding at the end the fol-
lowing: ‘‘This part shall not be construed to supercede any
provision of Federal or State civil rights law.’’.
(b) REQUIREMENTS.—
(1) IN GENERAL.—Section 408(a) (42 U.S.C.
608(a) is amended by adding at the end the fol-
lowing:
‘‘(20) NONDISCRIMINATION.—A State to which
a grant is made under section 403 shall ensure equi-
table treatment of needy families in the State, and
shall not discriminate among families based on mar-
ital status or applicant or recipient status.’’.
(2) PENALTY.—Section 409(a)(7)(B)(ii) (42
U.S.C. 609(a)(7)(B)(ii)) is amended by adding at
the end the following: ‘‘The applicable percentage
otherwise in effect with respect to a State for a fis-
cal year shall be increased by 5 percentage points if
the Secretary determines that in the preceding fiscal
year the State failed to comply with section
408(a)(20).’’.
SEC. 207. BAN ON DIVERSION OF POTENTIAL APPLICANTS
FOR ASSISTANCE.
(a) IN
GENERAL.—Section 408(a) (42 U.S.C.
608(a)) is further amended by adding at the end the fol-
lowing:
‘‘(21) BAN ON DIVERSION OF POTENTIAL AP-
PLICANTS
FOR
ASSISTANCE.—A State may not
refuse to accept, at the time of application, an appli-
cation for assistance from the State program funded
under this part, or give an individual reason to be-
lieve that, at the time of application, the State will
not unconditionally accept such an application from
any individual.’’.
(b) PENALTY.—Section 409(a) (42 U.S.C. 608(a)) is
further amended by adding at the end the following:
‘‘(21) PENALTY FOR DIVERTING POTENTIAL AP-
PLICANT FOR ASSISTANCE.—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)(21) during the fiscal year, the Secretary
shall reduce the grant payable to the State under
section 403(a)(1) for the immediately succeeding fis-
cal year by an amount equal to 5 percent of the
State family assistance grant.’’.
Subtitle B—Related Provisions
SEC. 211. BAN ON PENALIZING ENTIRE FAMILY FOR MIS-
CONDUCT OF 1 FAMILY MEMBER.
(a) IN
GENERAL.—Section 408(a) (42 U.S.C.
608(a)) is further amended by adding at the end the fol-
lowing:
‘‘(22) BAN
ON
PENALIZING
ENTIRE
FAMILY
FOR MISCONDUCT OF 1 FAMILY MEMBER.—In impos-
ing a penalty under a State program funded under
this part for refusal of an individual in a family to
comply with a program requirement, the State may
reduce the amount of assistance otherwise payable to
the family on a pro rata basis with respect to any
period during a month in which the individual so re-
fuses, but may not reduce the amount of the assist-
ance to less than the amount that would be payable
to the family with the same number of children but
with no adults.’’.
(b) PENALTY.—Section 409(a)(7)(B)(ii) (42 U.S.C.
609(a)(7)(B)(ii)) is amended by adding at the end the fol-
lowing: ‘‘The applicable percentage otherwise in effect
with respect to a State for a fiscal year shall be increased
by 5 percentage points if the Secretary determines that
in the preceding fiscal year the State failed to comply with
section 408(a)(22).’’.
SEC. 212. ELIMINATE DOUBLE JEOPARDY FOR RECIPIENTS
WITH PAST DRUG OFFENSES.
Section 115 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (42 U.S.C. 862a)
is repealed.
SEC. 213. 5-YEAR TIME LIMIT.
(a) REMOVAL OF LIMITATIONS.—
(1) ELIMINATION OF LIMITATION ON HARDSHIP
EXCEPTION.—Section 
408(a)(7)(C) 
(42 
U.S.C.
608(a)(7)(C)) is amended by striking clause (ii) and
redesignating clause (iii) as clause (ii).
(2) 
COMPLIANCE
EXCEPTION.—Section
408(a)(7) (42 U.S.C. 608(a)(7)) is amended by add-
ing at the end the following:
‘‘(H) COMPLIANCE EXCEPTION.—In deter-
mining the number of months for which an in-
dividual has received assistance under the State
program funded under this part, the State shall
disregard any month throughout which the indi-
vidual is in compliance with all applicable re-
quirements of the State program.’’.
(b) UNIFORM DURATION OF ASSISTANCE.—Section
408(a)(7)(E) (42 U.S.C. 608(a)(7)(E)) is amended to
read as follows:
‘‘(E) REQUIREMENT TO PROVIDE ASSIST-
ANCE FOR 5 YEARS.—Notwithstanding section
407(e), a State to which a grant is made under
section 403 shall not impose a limitation of
fewer than 60 months on the period for which
a recipient is eligible for assistance under the
State program funded under this part.’’.
(c) PROTECTION
AGAINST
RECESSION.—Section
408(a)(7) (42 U.S.C. 608(a)(7)), as amended by sub-
section (a)(2) of this section, is amended by adding at the
end the following:
‘‘(I) SPECIAL RULES RELATING TO MONTH
IN WHICH UNEMPLOYMENT IS HIGH OR HAS IN-
CREASED SHARPLY OVER PRIOR 2 YEARS.—
‘‘(i) CLOCK STOPPED FOR CURRENT
RECIPIENTS.—In determining the number
of months for which an individual has re-
ceived assistance under the State program
funded under this part, the State shall dis-
regard any month that is a trigger month.
‘‘(ii) TREATMENT OF FORMER RECIPI-
ENTS WHO REACHED TIME LIMIT.—
‘‘(I) NOTICE; 
DETERMINATION
OF ELIGIBILITY.—On the occurrence
of a trigger month, the State shall—
‘‘(aa) issue a public notice
that a trigger month has oc-
curred; and
‘‘(bb) on request of an indi-
vidual who had become ineligible
for assistance under the State
program funded under this part
by reason of this paragraph, de-
termine the eligibility of the indi-
vidual for such assistance as if
the individual had received such
assistance for 59 months.
‘‘(II) ADDITIONAL MONTH OF AS-
SISTANCE FOR OTHERWISE ELIGIBLE
FORMER
RECIPIENTS.—If the indi-
vidual is so determined to be eligible
for such assistance, the State shall,
notwithstanding subparagraph (A),
provide such assistance to the indi-
vidual for any month that is a trigger
month, but shall not provide such as-
sistance to the individual for any
month that is not a trigger month.
‘‘(iii) TRIGGER MONTH.—In this sub-
paragraph, 
the 
term 
‘trigger 
month’
means, with respect to a State, any month
for which the unemployment rate of the
State—
‘‘(I) is at least 5.5 percent; or
‘‘(II) has increased by the lesser
of 50 percent, or 1.5 percentage
points, over the lesser of the average
rate of total unemployment in the
State (seasonally adjusted) for the
preceding fiscal year or the average
unemployment rate of the State for
the 2nd preceding fiscal year.’’.
TITLE III—FAIRNESS FOR
IMMIGRANTS
SEC. 301. TREATMENT OF ALIENS UNDER THE TANF PRO-
GRAM.
(a) ELIGIBILITY OF QUALIFIED ALIENS FOR BENE-
FITS.—
(1) ELIMINATION
OF
PROHIBITION.—Section
402(b)(3) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C.
1612(b)(3)) is amended by striking subparagraph
(A) and redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
(2) EXCEPTION TO 5-YEAR BAN FOR QUALIFIED
ALIENS.—Section 403(c)(2) of the Personal Respon-
sibility and Work Opportunity Reconciliation Act of
1996 (8 U.S.C. 1613(c)(2)) is amended by adding at
the end the following:
‘‘(L) Assistance under a State program
funded under the program of block grants to
States for temporary assistance for needy fami-
lies under part A of title IV of the Social Secu-
rity Act.’’.
(b) BENEFITS
NOT
SUBJECT
TO
REIMBURSE-
MENT.—Section 423(d) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (8 U.S.C.
1138a note) is amended by adding at the end the fol-
lowing:
‘‘(12) Benefits under part A of title IV of the
Social Security Act except for cash assistance pro-
vided to a sponsored alien who is subject to deeming
pursuant to section 408(h) of the Social Security
Act.’’.
(c) TREATMENT
OF
ALIENS.—Section 408 (42
U.S.C. 608) is amended by adding at the end the fol-
lowing:
‘‘(h) SPECIAL RULES RELATING TO THE TREAT-
MENT OF 213A ALIENS.—
‘‘(1) IN GENERAL.—In determining whether a
213A alien is eligible for cash assistance under a
State program funded under this part, and in deter-
mining the amount or types of such assistance to be
provided to the alien, the State shall apply the rules
of paragraphs (1), (2), (3), (5), and (6) of sub-
section (f) of this section by substituting ‘213A’ for
‘non-213A’ each place it appears, subject to section
421(e) of the Personal Responsibility and Work Op-
portunity Reconcilation Act of 1996, and subject to
section 421(f) of such Act (which shall be applied by
substituting ‘section 408(h) of the Social Security
Act’ for ‘subsection (a)’).
‘‘(2) 213A ALIEN
DEFINED.—An alien is a
213A alien for purposes of this subsection if the affi-
davit of support or similar agreement with respect to
the alien that was executed by the sponsor of the
alien’s entry into the United States was executed
pursuant to section 213A of the Immigration and
Nationality Act.’’.
(d) CONFORMING AMENDMENTS.—
(1) AMENDMENTS TO PRWORA.—Section 402 of
the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1612) is
amended—
(A) in subsection (b)(2)(A)(i) by striking
‘‘(3)(C)’’ and inserting ‘‘(3)(B)’’;
(B) in subsection (b)(2)(A)(ii) by striking
‘‘(C))’’ and inserting ‘‘(B))’’; and
(C) in subsection (b)(2)(E) by striking
‘‘(3)(C)’’ and inserting ‘‘(3)(B)’’.
(2) AMENDMENTS TO SSA.—
(A) Section 408 (42 U.S.C. 608) is amend-
ed by striking subsections (e) and (f) and by re-
designating subsection (g) as subsection (e).
(B) 
Section 
409(a)(7)(B)(i)(IV) 
(42
U.S.C. 609(a)(7)(B)(i)(IV)) is amended—
(I) by striking ‘‘part,’’ and inserting
‘‘part and’’; and
(II) by striking ‘‘, and families of
aliens lawfully present in the United States
that would be eligible for such assistance
but for the application of title IV of the
Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996’’.
SEC. 302. TREATMENT OF ALIENS UNDER THE SSI PRO-
GRAM.
(a) ELIGIBILITY OF QUALIFIED ALIENS FOR BENE-
FITS.—
(1) ELIMINATION
OF
PROHIBITION.—Section
402(a) of the Personal Responsibility and Work Op-
portunity Reconciliation Act of 1996 (8 U.S.C.
1612(a)) is amended—
(A) by striking paragraph (3)(A); and
(B) in paragraph (2) by striking subpara-
graphs (D)(i), (E), and (H).
(2) EXCEPTION
TO
5-YEAR
BAN.—Section
403(c)(2) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C.
1613(c)(2)) is amended by adding at the end the fol-
lowing:
‘‘(M) Assistance or benefits under the sup-
plemental security income program under title
XVI of the Social Security Act, including sup-
plementary payments pursuant to an agreement
for 
Federal 
administration 
under 
section
1616(a) of the Social Security Act and pay-
ments pursuant to an agreement entered into
under section 212(b) of Public Law 93–66
(commonly known as SSI).’’.
(b) BENEFITS
NOT
SUBJECT
TO
REIMBURSE-
MENT.—Section 423(d) of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (8 U.S.C.
1138a note) is further amended by adding at the end the
following:
‘‘(13) Assistance under the supplemental secu-
rity income program under title XVI of the Social
Security Act, except assistance provided to a spon-
sored alien who is subject to deeming pursuant to
section 1621 of the Social Security Act.’’.
(c) 
CONFORMING
AMENDMENTS.—Section
402(b)(2)(F) of the Personal Responsibility and Work Op-
portunity 
Reconciliation 
Act 
of 
1996 
(8 
U.S.C.
1612(b)(2)(F)) is amended by striking ‘‘program defined
in subsection (a)(3)(A) (relating to the supplemental secu-
rity income program)’’ and inserting ‘‘supplemental secu-
rity income program under title XVI of the Social Security
Act, including supplementary payments pursuant to an
agreement for Federal administration under section
1616(a) of the Social Security Act and payments pursuant
to an agreement entered into under section 212(b) of Pub-
lic Law 93–66’’.
(d) PERIOD FOR ATTRIBUTION OF SPONSOR’S IN-
COME AND RESOURCES.—Section 1621 (42 U.S.C. 1382j)
is amended in each of subsections (a), (c), (d), and (e),
by striking ‘‘3’’ and inserting ‘‘5’’.
SEC. 303. INCLUSION OF PARTICIPATION IN ENGLISH-AS-A-
SECOND-LANGUAGE PROGRAM AMONG PER-
MISSIBLE WORK ACTIVITIES.
Section 407(d) (42 U.S.C. 607(d)) is further
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(11);
(2) by striking the period at the end of para-
graph (12) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(14) participation in a program in which
English is taught as a second language.’’.
TITLE IV—ENCOURAGE RACIAL
EQUALITY
SEC. 401. RACIAL PERFORMANCE MEASURE AS EVALUA-
TION CRITERION IN DETERMINING HIGH
PERFORMANCE BONUS.
(a) ELIGIBILITY CONDITIONED ON PROVISION OF
DATA DISAGGREGATED BY RACE.—Section 403(a)(4)(A)
(42 U.S.C. 603(a)(4)(A)) is amended by inserting ‘‘, and
complies with the last sentence of section 411(a)(1)(A)
with respect to race’’.
(b) RACIAL PERFORMANCE MEASURE AS EVALUA-
TION
CRITERION.—Section 403(a)(4)(C) (42 U.S.C.
603(a)(4)(C)) is amended—
(1) by striking ‘‘Not later than 1 year after the
date of the enactment of the Personal Responsibility
and Work Opportunity Reconcilation Act of 1996,
the’’ and inserting the following:
‘‘(i) IN GENERAL.—The’’; and
(2) by adding at the end the following:
‘‘(ii) AREAS TO BE MEASURED.—The
formula shall, at a minimum, measure
State performance in each of the following
areas:
‘‘(I) Employment and wages.
‘‘(II) Educational access and
achievement.
‘‘(III) Child care, transportation
and other support service expendi-
tures.
‘‘(IV) Sanction rates.
‘‘(iii) CATEGORIES OF RECIPIENTS.—
The formula shall take into account State
performance in each area described in
clause (ii), with respect to each of the fol-
lowing categories of recipients of assistance
under the State program:
‘‘(I) White/non-Hispanic.
‘‘(II) Hispanic.
‘‘(III) African-American/black.
‘‘(IV) Native American.
‘‘(V) Asian-American/Pacific Is-
lander.
‘‘(iv) 
CHARACTERISTICS
OF
FOR-
MULA.—The formula shall be designed so
that—
‘‘(I) if the performance of a State
for a bonus year in an area described
in clause (ii) with respect to a cat-
egory of recipients set forth in clause
(iii) differs by 5 percentage points or
more from such performance for the
bonus year with respect to any other
category of recipients, then the State
shall be considered to have failed that
measure of State performance with re-
spect to the bonus year; and
‘‘(II) if a State fails 2 or more of
the measures of State performance
with respect to a bonus year, then the
State shall not be eligible for a grant
under this paragraph for the bonus
year.’’.
SEC. 402. BAN ON VIOLATING ANTIDISCRIMINATION LAW.
(a) IN GENERAL.—Section 408(a) (42 U.S.C. 608(a)
is further amended by adding at the end the following:
‘‘(23) BAN ON VIOLATING ANTIDISCRIMINATION
LAW.—A State to which a grant is made under sec-
tion 403(a) shall not violate an antidiscrimination
law (as defined by the Office of Civil Rights in the
Department of Health and Human Services) in car-
rying out the State program funded under this
part.’’.
(b) PENALTY.—Section 409(a)(7)(B)(ii) (42 U.S.C.
609(a)(7)(B)(ii)) is amended by adding at the end the fol-
lowing: ‘‘The applicable percentage otherwise in effect
with respect to a State for a fiscal year shall be increased
by 5 percentage points if the Office of Civil Rights in the
Department of Health and Human Services determines
that in the preceding fiscal year the State failed to comply
with section 408(a)(23).’’.
SEC. 403. DATA COLLECTION AND REPORTING.
(a) COLLECTION OF DATA ON RACE, ETHNICITY/NA-
TIONAL ORIGIN, GENDER, PRIMARY LANGUAGE, AND
EDUCATIONAL LEVEL.—Section 411(a)(1)(A) (42 U.S.C.
611(a)(1)(A)) is amended by adding at the end the fol-
lowing new sentence:
‘‘In complying with this paragraph, each eligible
State must ensure that the case record informa-
tion required by this subparagraph is reported
in a manner that permits analysis of the infor-
mation by race, ethnicity/national origin, pri-
mary language, gender, and educational level,
including analysis using a combination of these
factors.’’.
(b) COLLECTION
OF
DATA
ON
PRIMARY
LAN-
GUAGE.—Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A))
is amended by striking clauses (vii) and (viii) and insert-
ing the following:
‘‘(vii) The race, educational level, and
primary language of each adult in the fam-
ily.’’.
‘‘(viii) The race, educational level, and
primary language of each child in the fam-
ily.’’.
(c) COLLECTION OF DATA ON DIVERSION.—Section
411(a)(1) (42 U.S.C. 611(a)(1)) is amended by redesig-
nating subparagraph (B) as subparagraph (C) and insert-
ing after subparagraph (A) the following:
‘‘(B) DATA ON DIVERSION.—Each eligible
State shall collect on a monthly basis, and re-
port to the Secretary on a quarterly basis,
disaggregated case record information on the
number of individuals who apply for but do not
receive assistance, the reason such assistance
was not provided, and the overall percentage of
applications for assistance that are approved
compared to those that are disapproved. In
complying with the preceding sentence, the
State shall ensure that the case record informa-
tion is reported in a manner that permits anal-
ysis of such information by race, ethnicity/na-
tional origin, primary language, gender, and
educational level, including analysis using a
combination of these factors.’’.
(d) COLLECTION OF DATA ON PARTICIPATION IN
EMPLOYMENT, EDUCATION, 
AND
TRAINING.—Section
411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended—
(1) by striking clause (v) and inserting the fol-
lowing:
‘‘(v) The employment status, occupa-
tion (as defined by the current Federal
Standard Occupational Classification sys-
tem), and earnings of each employed adult
in the family.’’; and
(2) by striking clause (xi) and inserting the fol-
lowing:
‘‘(xi) If the adults participated in, and
the numbers of hours per week of partici-
pation in, the following activities, includ-
ing. to the extent such information is avail-
able, information on the specific type of
job, or education or training program.’’.
(e) COLLECTION OF DATA ON FAMILIES LEAVING
WELFARE.—
(1) 
CASE
CLOSURE
REASONS.—Section
411(a)(1) (42 U.S.C. 611(a)(1)), as amended by the
preceding proivisions of this Act, is amended by re-
designating subparagraph (C) as subparagraph (D)
and inserting after subparagraph (B) the following:
‘‘(C) DEVELOPMENT OF COMPREHENSIVE
LIST OF CASE CLOSURE REASONS.—
‘‘(i) The Secretary shall develop, in
consultation with States and policy ex-
perts, a comprehensive list of reasons why
individuals leave State programs funded
under this part. The full range of reasons
for case closures, including the following
reasons, shall be considered in making the
list as comprehensive as possible: lack of
access to specific programs or services such
as child care, transportation, or English as
a second language classes for clients with
limited English proficiency; clients’ medical
or health problems; clients’ family respon-
sibilities such as caring for a disabled fam-
ily member; changes in eligibility status; or
different administrative reasons. The list
shall be aimed at substantially reducing
the number of case closures under the pro-
grams for which a reason is not known.
Further, States shall undertake efforts to
improve their tracking of reasons for case
closures and shall report on such efforts in
the quarterly reports submitted pursuant
to this subsection.
‘‘(ii) The Secretary shall promulgate
for public comment regulations that list
the new case closure reasons to be used in
accordance with subparagraph (A)(xvi) no
later than December 2004. The regulations
also shall direct States to report on efforts
to improve State tracking of reasons for
case closures, including the identification
of additional reasons for case closures not
included on the list generated under this
subparagraph.
‘‘(iii) The Secretary, through con-
sultation and analysis of quarterly State
reports, shall review on an annual basis
whether the list of case closure reasons re-
quires modification. To the extent the Sec-
retary determines the need to modify the
list of case closure reasons, such changes
shall be published for notice and com-
ment.’’.
(2) INCLUSION
IN
QUARTERLY
STATE
RE-
PORTS.—Section 
411(a)(1)(A)(xvi) 
(42 
U.S.C.
611(a)(1)(A)(xvi)) is amended—
(A) by striking ‘‘or’’ at the end of sub-
clause (IV);
(B) by striking the period at the end and
inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(VI) a reason specified in the
list developed under subparagraph
(C).’’.
(3) SAMPLES.—Section 411(a)(1)(A)(xvi) (42
U.S.C. 611(a)(1)(A)(xvi)) is amended to read as fol-
lows:
‘‘(xvi) Whether the family left the pro-
gram, and if so, whether the family left
due to—
‘‘(I) employment;
‘‘(II) marriage;
‘‘(III) the prohibition set forth in
section 408(a)(7);
‘‘(IV) sanction;
‘‘(V) State policy; or
‘‘(VI) a reason specified in the
list 
developed 
under 
section
411(a)(1)(C).’’.
(f) IMPROVING DATA QUALITY.—Section 411(a)(1)
(42 U.S.C. 611(a)(1)) is amended by adding at the end
the following:
‘‘(D) QUALITY
OF
DATA.—Quarterly re-
ports submitted by each eligible State must de-
scribe what steps the State has taken to ensure
the accuracy of the data submitted pursuant to
this section.’’.
(g) UNIFORMITY OF DATA.—Section 411(a)(1) (42
U.S.C. 611(a)(1)), as amended by subsection (f) of this
section, is amended by adding at the end the following:
‘‘(E) 
UNIFORM
DATA.—The 
Secretary
shall report annually on the progress toward
the creation of a common data collection instru-
ment and common collection methods to ensure
that case record information is reported by
states in a standardized format, including a
timeline aimed at achieving this goal on or be-
fore September 30, 2006, with an assessment
of barriers and costs of implementation.’’.
(h) ANNUAL REPORTS BY THE SECRETARY.—Section
411(b)(2) (42 U.S.C. 611(b)(2)) is amended by inserting
‘‘, including the information submitted under section
411(a)(1)(A)(i) through (xvii) broken down by race, eth-
nicity/national origin, primary language, gender, and edu-
cational level’’ before the semicolon.
(i) GRANTS FOR ANALYSIS OF DATA THAT EXAM-
INES RACIAL, ETHNIC, OR GENDER DIFFERENCES IN THE
ADMINISTRATION OF STATE TANF PROGRAMS.—Section
411 (42 U.S.C. 611) is amended by adding at the end
the following:
‘‘(c) RESEARCH AND ANALYSIS OF DATA.—
‘‘(1) RESEARCH
GRANTS.—Grants shall be
made available to undertake research analyzing data
submitted by States to evaluate racial, ethnic, or
gender differences in the administration of the pro-
gram funded under this part, including differences
in programs or services offered, employment and
earnings, and reasons for leaving assistance.
‘‘(2) PUBLIC ACCESS TO DATA.—The Secretary
shall ensure that the data submitted by States pur-
suant to subsection (a) is made available to the pub-
lic for analysis by creating a public use database
that includes all case record information. The Sec-
retary shall take steps to ensure that any identifying
information about individual recipients of assistance
cannot be accessed and proper privacy safeguards
are established.’’.
SEC. 404. ACCESS TO WELFARE; WELFARE OUTCOMES.
Section 411 (42 U.S.C. 611) is amended by adding
at the end the following:
‘‘(c) ANNUAL REPORTS ON WELFARE ACCESS AND
OUTCOMES.—
‘‘(1) STATE REPORTS.—Not later than January
1 of each fiscal year, each eligible State shall collect
and report to the Secretary, with respect to the pre-
ceding fiscal year, the following information:
‘‘(A) The number of applications for as-
sistance from the State program funded under
this part, the percentage that are approved
versus those that are disapproved, and the rea-
sons for disapproval, broken down by race.
‘‘(B) A copy of all rules and policies gov-
erning the State program funded under this
part that are not required by Federal law, and
a summary of the rules and policies, including
the amounts and types of assistance provided
and the types of sanctions imposed under the
program.
‘‘(C) The types of occupations of, types of
job training received by, and types and levels of
educational attainment of recipients of assist-
ance from the State program funded under this
part, broken down by gender and race.
‘‘(D) The incidence of homelessness, of the
use of food pantries and soup kitchens, and of
the use of shelters among recipients of assist-
ance from the State program funded under this
part and among individuals to whom assistance
under the State programs funded under this
part has ended within the past 12 months. The
information described in this subparagraph may
be provided by submitting disaggregated case
record information on a sample of families.
‘‘(E) The number of individuals to whom
assistance under the State program funded
under this part has ended during the year, bro-
ken down by the reasons why the assistance has
ended (including employment, marriage, sanc-
tion, time limit, or State policy.
‘‘(F) The economic conditions of individ-
uals to whom assistance under the State pro-
grams funded under this part has ended, in-
cluding the types of occupations of, the dura-
tion of employment of, the income of, the bene-
fits provided to, the types of job training re-
ceived by, the types and levels of educational at-
tainment of, and the incidence of homelessness,
of the use of food pantries or soup kitchens,
and of the use of shelters among, such individ-
uals, broken down by gender and race.
‘‘(G) The effects of applying the 5-year
time limit to individuals who, in the absence of
the limit, would continue to be eligible for as-
sistance from the State program funded under
this part, including the economic and social cir-
cumstances of the individuals, including income,
employment, homelessness, use of food pantries
or soup kitchens, and change in child custody
arrangements.
‘‘(2) USE OF SAMPLING.—A State may comply
with this subsection by using a scientifically accept-
able sampling method approved by the Secretary.
‘‘(3) REPORT TO THE CONGRESS.—Not later
than June 1 of each fiscal year, the Secretary shall
prepare and submit to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate, publish in the
Federal Register, and make easily accessible to the
public through the Internet a compilation of the re-
ports submitted pursuant to paragraph (1) for the
preceding fiscal year.’’.
SEC. 405. LONGITUDINAL STUDIES OF TANF RECIPIENTS.
(a) LONGITUDINAL STUDIES OF TANF APPLICANTS
AND RECIPIENTS TO DETERMINE THE FACTORS THAT
CONTRIBUTE TO POSITIVE EMPLOYMENT AND FAMILY
OUTCOMES.—Section 413(d) (42 U.S.C. 613) is amended
to read as follows:
‘‘(d) LONGITUDINAL STUDIES
OF TANF APPLI-
CANTS AND RECIPIENTS TO DETERMINE THE FACTORS
THAT CONTRIBUTE
TO POSITIVE EMPLOYMENT
AND
FAMILY OUTCOMES.—
‘‘(1) IN GENERAL.—The Secretary, directly or
through grants, contracts, or interagency agree-
ments, shall conduct longitudinal studies in not less
than 30 States of a representative sample of families
that receive and applicants for assistance in a State
program funded under this part or under a program
funded with qualified State expenditures (as defined
in section 409(a)(7)(B)(i)). The studies shall follow
families that leave assistance, those that receive as-
sistance throughout the study period, and those di-
verted from assistance programs. The studies shall
gather information on family and adult demo-
graphics (including race, ethnicity/national origin,
primary language, gender, barriers to employment,
educational status of adults, prior work history,
prior history of welfare receipt), family income (in-
cluding earnings, unemployment compensation, and
child support), benefit receipt (including food
stamps, medicaid, earned income tax credits, hous-
ing assistance, and type and amount of child care
used), reasons for leaving or returning to assistance
programs, work participation status and activities
(including the scope and duration of work activities
and the types of industries and occupations for
which training is provided), sanction status (includ-
ing reasons for sanction), time limit status (includ-
ing months remaining on State and Federal time
limits), recipient views on program participation,
and measures of income change, poverty, extreme
poverty, food security, and use of food pantries and
soup kitchens, homelessness and the use of shelters,
and other measures of family well-being and hard-
ship over a 5-year period. The Secretary shall, to the
extent possible, ensure that the studies produce com-
parable results and information.
‘‘(2) REPORTS.—
‘‘(A) The Secretary shall publish, not later
than December 2005, interim findings from at
least 12 months of longitudinal data.
‘‘(B) The Secretary shall publish, not later
than December 2007, findings from at least 36
months of longitudinal data.’’.
(b) LONGITUDINAL STUDIES OF ECONOMIC WELL-
BEING OF CURRENT AND FORMER TANF FAMILIES.—
(1) ANNUAL REPORT TO CONGRESS.—Section
411(b) (42 U.S.C. 611(b)) is amended—
(A) in paragraph (2), by striking ‘‘finan-
cial characteristics’’ and inserting ‘‘financial
characteristics (including types of sanctions or
other grant reductions)’’ and by striking the
semicolon at the end and adding ‘‘, broken
down by race, ethnicity/national origin, primary
language, gender, education level, and, for
closed TANF cases, reason the case was
closed;’’;
(B) in paragraph (3), by striking ‘‘and’’ at
the end;
(C) in paragraph (4), by striking the pe-
riod and inserting ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(5) the economic well-being of children and
families receiving assistance under the State pro-
grams funded under this part and of children and
families that have ceased to receive such assistance,
using longitudinal matched data gathered from fed-
erally supported programs, and including State by
State data that details the distribution of earnings
and stability of employment of such families and (to
the extent feasible) describes, with respect to such
families, the distribution of income from known
sources (including employer-reported wages, assist-
ance under the State program funded under this
part, and benefits under the food stamp program),
the ratio of such families’ income to the poverty line,
and the extent to which such families receive or re-
ceived noncash benefits and child care assistance.
Such information shall be broken down by race, eth-
nicity/national origin, primary language, gender,
education level, whether the TANF case remains
open, and, for closed TANF cases, reason the case
was closed.’’.
(2) 
CONFORMING
AMENDMENTS.—Section
411(a) (42 U.S.C. 611(a)) is amended by redesig-
nating paragraph (7) as paragraph (8) inserting
after paragraph (6) the following:
‘‘(7) REPORT
ON
ECONOMIC
WELL-BEING
OF
CURRENT
AND
FORMER
RECIPIENTS.—The report
required by paragraph (1) for a fiscal quarter shall
include for that quarter such information as the Sec-
retary may specify in order for the Secretary to in-
clude in the annual reports to Congress required
under subsection (b) the information described in
subsection (b)(5).’’.
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