585
(i) intentionally and wrongfully withheld
from or misrepresented to the Food and Drug
Administration information concerning such
drug or device required to be submitted under
the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 301 et seq.) or section 351 of the Public
Health Service Act (42 U.S.C. 262) that is ma-
terial and relevant to the harm suffered by the
claimant, or
(ii) made an illegal payment to an official
or employee of the Food and Drug Administra-
tion for the purpose of securing or maintaining
approval of such drug or device.
(2) PACKAGING.—In a health care liability ac-
tion which is alleged to relate to the adequacy of the
packaging (or labeling relating to such packaging) of
a drug which is required to have tamper-resistant
packaging under regulations of the Secretary of
Health and Human Services (including labeling reg-
ulations related to such packaging), the manufac-
turer of the drug shall not be held liable for punitive
damages unless the drug is found by the court by
clear and convincing evidence to be substantially out
of compliance with such regulations.
(e) PERIODIC PAYMENTS FOR FUTURE LOSSES.—
586
(1) GENERAL RULE.—In any health care liabil-
ity action in which the damages awarded for future
economic and noneconomic loss exceed $50,000, a
person shall not be required to pay such damages in
a single, lump-sum payment, but shall be permitted
to make such payments periodically based on when
the damages are found likely to occur, with the
amount and schedule of such payments determined
by the court.
(2) FINALITY OF JUDGMENT.—The judgment
of the court awarding periodic payments under this
subsection may not, in the absence of fraud, be re-
opened at any time to contest, amend, or modify the
schedule or amount of the payments.
(3) 
LUMP-SUM
SETTLEMENTS.—This 
sub-
section shall not be construed to preclude a settle-
ment providing for a single, lump-sum payment.
(f) TREATMENT
OF COLLATERAL SOURCE PAY-
MENTS.—
(1) INTRODUCTION
INTO
EVIDENCE.—In any
health care liability action, any defendant may intro-
duce evidence of collateral source payments. If a de-
fendant elects to introduce such evidence, the claim-
ant may introduce evidence of any amount paid or
contributed or reasonably likely to be paid or con-
587
tributed in the future by or on behalf of the claim-
ant to secure the right to such collateral source pay-
ments.
(2) NO SUBROGATION.—No provider of collat-
eral source payments shall recover any amount
against the claimant or receive any lien or credit
against the claimant’s recovery or be equitably or le-
gally subrogated the right of the claimant in a
health care liability action. This subsection shall
apply to an action that is settled as well as an action
that is resolved by a fact finder.
SEC. 4813. ALTERNATIVE DISPUTE RESOLUTION.
Any ADR used to resolve a health care liability action
or claim shall contain provisions relating to statute of limi-
tations, non-economic damages, joint and several liability,
punitive damages, collateral source rule, and periodic pay-
ments which are identical to the provisions relating to
such matters in this subtitle.
588
TITLE V—COMMITTEE ON EDU-
CATION 
AND 
THE
WORKFORCE
Subtitle A—TANF Block Grant
SEC. 5001. WELFARE-TO-WORK GRANTS.
(a) GRANTS TO STATES.—Section 403(a) of the So-
cial Security Act (42 U.S.C. 603(a)) is amended by adding
at the end the following:
‘‘(5) WELFARE-TO-WORK GRANTS.—
‘‘(A) FORMULA GRANTS.—
‘‘(i) ENTITLEMENT.—A State shall be
entitled to receive from the Secretary a
grant for each fiscal year specified in sub-
paragraph (H) of this paragraph for which
the State is a welfare-to-work State, in an
amount that does not exceed the lesser
of—
‘‘(I) 2 times the total of the ex-
penditures by the State (excluding
qualified State expenditures (as de-
fined in section 409(a)(7)(B)(i)) and
expenditures 
described 
in 
section
409(a)(7)(B)(iv)) during the fiscal
year 
for 
activities 
described 
in
589
subpargraph (C)(i) of this paragraph;
or
‘‘(II) the allotment of the State
under clause (iii) of this subparagraph
for the fiscal year.
‘‘(ii) WELFARE-TO-WORK
STATE.—A
State shall be considered a welfare-to-work
State for a fiscal year for purposes of this
subparagraph if the Secretary, after con-
sultation (and the sharing of any plan or
amendment thereto submitted under this
clause) with the Secretary of Health and
Human Services and the Secretary of
Housing and Urban Development, deter-
mines that the State meets the following
requirements:
‘‘(I) The State has submitted to
the Secretary (in the form of an ad-
dendum to the State plan submitted
under section 402) a plan which—
‘‘(aa) describes how, consist-
ent with this subparagraph, the
State will use any funds provided
under this subparagraph during
the fiscal year;
590
‘‘(bb) specifies the formula
to be used pursuant to clause (vi)
to distribute funds in the State,
and describes the process by
which the formula was developed;
and
‘‘(cc) contains evidence that
the plan was developed through a
collaborative process that, at a
minimum, 
included 
sub-State
areas.
‘‘(II) The State has provided the
Secretary with an estimate of the
amount that the State intends to ex-
pend during the fiscal year (excluding
expenditures 
described 
in 
section
409(a)(7)(B)(iv)) for activities de-
scribed in subparagraph (C)(i) of this
paragraph.
‘‘(III) The State has agreed to
negotiate in good faith with the Sec-
retary of Health and Human Services
with respect to the substance of any
evaluation under section 413(j), and
591
to cooperate with the conduct of any
such evaluation.
‘‘(IV) The State is an eligible
State for the fiscal year.
‘‘(iii) ALLOTMENTS TO WELFARE-TO-
WORK STATES.—The allotment of a wel-
fare-to-work State for a fiscal year shall be
the available amount for the fiscal year
multiplied by the State percentage for the
fiscal year.
‘‘(iv) AVAILABLE AMOUNT.—As used
in clause (iii), the term ‘available amount’
means, for a fiscal year, 95 percent of—
‘‘(I) the amount specified in sub-
paragraph (H) for the fiscal year;
minus
‘‘(II) the total of the amounts re-
served pursuant to subparagraphs (F)
and (G) for the fiscal year.
‘‘(v) STATE
PERCENTAGE.—As
used in clause (iii), the term ‘State
percentage’ means, with respect to a
fiscal year, 1⁄2 of the sum of—
‘‘(aa) the percentage rep-
resented by the number of indi-
592
viduals in the State whose in-
come is less than the poverty line
divided by the number of such in-
dividuals in the United States;
and
‘‘(bb) the percentage rep-
resented by the number of indi-
viduals who are adult recipients
of assistance under the State
program funded under this part
divided by the number of individ-
uals in the United States who are
adult recipients of assistance
under any State program funded
under this part.
‘‘(vi) DISTRIBUTION OF FUNDS WITH-
IN STATES.—
‘‘(I) IN
GENERAL.—A State to
which a grant is made under this sub-
paragraph shall distribute not less
than 85 percent of the grant funds
among the service delivery areas in
the State, in accordance with a for-
mula which—
593
‘‘(aa) 
determines 
the
amount to be distributed for the
benefit of a service delivery area
in proportion to the number (if
any) by which the number of in-
dividuals residing in the service
delivery area with an income that
is less than the poverty line ex-
ceeds 5 percent of the population
of the service delivery area, rel-
ative to such number for the
other service delivery areas in the
State, and accords a weight of
not less than 50 percent to this
factor;
‘‘(bb) may determine the
amount to be distributed for the
benefit of a service delivery area
in proportion to the number of
adults residing in the service de-
livery area who are recipients of
assistance under the State pro-
gram funded under this part
(whether in effect before or after
the amendments made by section
594
103(a) of the Personal Respon-
sibility and Work Opportunity
Reconciliation Act first applied to
the State) for at least 30 months
(whether or not consecutive) rel-
ative to the number of such
adults residing in the other serv-
ice delivery areas in the State;
and
‘‘(cc) may determine the
amount to be distributed for the
benefit of a service delivery area
in proportion to the number of
unemployed individuals residing
in the service delivery area rel-
ative to the number of such indi-
viduals residing in the other serv-
ice delivery areas in the State.
‘‘(II) SPECIAL
RULE.—Notwith-
standing subclause (I), if the formula
used pursuant to subclause (I) would
result in the distribution of less than
$100,000 during a fiscal year for the
benefit of a service delivery area, then
in lieu of distributing such sum in ac-
595
cordance with the formula, such sum
shall be available for distribution
under subclause (III) during the fiscal
year.
‘‘(III) PROJECTS TO HELP LONG-
TERM
RECIPIENTS
OF
ASSISTANCE
INTO THE WORK FORCE.—The Gov-
ernor of a State to which a grant is
made under this subparagraph may
distribute not more than 15 percent of
the grant funds (plus any amount re-
quired to be distributed under this
subclause by reason of subclause (II))
to projects that appear likely to help
long-term 
recipients 
of 
assistance
under the State program funded
under this part (whether in effect be-
fore or after the amendments made by
section 103(a) of the Personal Re-
sponsibility and Work Opportunity
Reconciliation Act first applied to the
State) enter the work force.
‘‘(vii) ADMINISTRATION.—
‘‘(I) 
IN
GENERAL.—A 
grant
made under this subparagraph to a