108
TITLE V—CHILD WELFARE
SEC. 501. EXTENSION OF AUTHORITY TO APPROVE DEM-
ONSTRATION PROJECTS.
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is
amended by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 502. ELIMINATION OF LIMITATION ON NUMBER OF
WAIVERS.
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is
amended by striking ‘‘not more than 10’’.
SEC. 503. ELIMINATION OF LIMITATION ON NUMBER OF
STATES THAT MAY BE GRANTED WAIVERS TO
CONDUCT
DEMONSTRATION
PROJECTS
ON
SAME TOPIC.
Section 1130 (42 U.S.C. 1320a–9) is amended by
adding at the end the following:
‘‘(h) NO LIMIT ON NUMBER OF STATES THAT MAY
BE GRANTED WAIVERS TO CONDUCT SAME OR SIMILAR
DEMONSTRATION PROJECTS.—The Secretary shall not
refuse to grant a waiver to a State under this section on
the grounds that a purpose of the waiver or of the dem-
onstration project for which the waiver is necessary would
be the same as or similar to a purpose of another waiver
or project that is or may be conducted under this sec-
tion.’’.
109
SEC. 504. ELIMINATION OF LIMITATION ON NUMBER OF
WAIVERS THAT MAY BE GRANTED TO A SIN-
GLE STATE FOR DEMONSTRATION PROJECTS.
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following:
‘‘(i) NO LIMIT ON NUMBER OF WAIVERS GRANTED
TO, OR DEMONSTRATION PROJECTS THAT MAY BE CON-
DUCTED BY, A SINGLE STATE.—The Secretary shall not
impose any limit on the number of waivers that may be
granted to a State, or the number of demonstration
projects that a State may be authorized to conduct, under
this section.’’.
SEC. 505. STREAMLINED PROCESS FOR CONSIDERATION OF
AMENDMENTS TO AND EXTENSIONS OF DEM-
ONSTRATION
PROJECTS
REQUIRING
WAIV-
ERS.
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following:
‘‘(j) STREAMLINED PROCESS FOR CONSIDERATION
OF AMENDMENTS
AND EXTENSIONS.—The Secretary
shall develop a streamlined process for consideration of
amendments and extensions proposed by States to dem-
onstration projects conducted under this section.’’.
SEC. 506. AVAILABILITY OF REPORTS.
Section 1130 (42 U.S.C. 1320a–9) is further amend-
ed by adding at the end the following:
110
‘‘(k) AVAILABILITY
OF REPORTS.—The Secretary
shall make available to any State or other interested party
any report provided to the Secretary under subsection
(f)(2), and any evaluation or report made by the Secretary
with respect to a demonstration project conducted under
this section, with a focus on information that may promote
best practices and program improvements.’’.
SEC. 507. TECHNICAL CORRECTION.
Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is
amended
by
striking
‘‘422(b)(9)’’
and
inserting
‘‘422(b)(10)’’.
TITLE VI—SUPPLEMENTAL
SECURITY INCOME
SEC. 601. REVIEW OF STATE AGENCY BLINDNESS AND DIS-
ABILITY DETERMINATIONS.
Section 1633 (42 U.S.C. 1383b) is amended by add-
ing at the end the following:
‘‘(e)(1) The Commissioner of Social Security shall re-
view determinations, made by State agencies pursuant to
subsection (a) in connection with applications for benefits
under this title on the basis of blindness or disability, that
individuals who have attained 18 years of age are blind
or disabled as of a specified onset date. The Commissioner
of Social Security shall review such a determination before
any action is taken to implement the determination.
111
‘‘(2)(A) In carrying out paragraph (1), the Commis-
sioner of Social Security shall review—
‘‘(i) at least 20 percent of all determinations re-
ferred to in paragraph (1) that are made in fiscal
year 2003;
‘‘(ii) at least 40 percent of all such determina-
tions that are made in fiscal year 2004; and
‘‘(iii) at least 50 percent of all such determina-
tions that are made in fiscal year 2005 or thereafter.
‘‘(B) In carrying out subparagraph (A), the Commis-
sioner of Social Security shall, to the extent feasible, select
for review the determinations which the Commissioner of
Social Security identifies as being the most likely to be
incorrect.’’.
TITLE VII—STATE AND LOCAL
FLEXIBILITY
SEC.
701.
PROGRAM
COORDINATION
DEMONSTRATION
PROJECTS.
(a) PURPOSE.—The purpose of this section is to es-
tablish a program of demonstration projects in a State or
portion of a State to coordinate multiple public assistance,
workforce development, and other programs, for the pur-
pose of supporting working individuals and families, help-
ing families escape welfare dependency, promoting child
well-being, or helping build stronger families, using inno-
112
vative approaches to strengthen service systems and pro-
vide more coordinated and effective service delivery.
(b) DEFINITIONS.—In this section:
(1)
ADMINISTERING
SECRETARY.—The
term
‘‘administering Secretary’’ means, with respect to a
qualified program, the head of the Federal agency
responsible for administering the program.
(2) QUALIFIED PROGRAM.—The term ‘‘qualified
program’’ means—
(A) a program under part A of title IV of
the Social Security Act;
(B) the program under title XX of such
Act;
(C) activities funded under title I of the
Workforce Investment Act of 1998, except sub-
title C of such title;
(D) a demonstration project authorized
under section 505 of the Family Support Act of
1988;
(E) activities funded under the Wagner-
Peyser Act;
(F) activities funded under the Adult Edu-
cation and Family Literacy Act;
(G) activities funded under the Child Care
and Development Block Grant Act of 1990;
115
(5) COST NEUTRALITY.—Such information and
assurances as necessary to establish to the satisfac-
tion of the administering Secretary, in consultation
with the Director of the Office of Management and
Budget, that the proposed project is reasonably ex-
pected to meet the applicable cost neutrality require-
ments of subsection (d)(4).
(6) EVALUATION AND REPORTS.—An assurance
that the applicant will conduct ongoing and final
evaluations of the project, and make interim and
final reports to the administering Secretary, at such
times and in such manner as the administering Sec-
retary may require.
(7) PUBLIC HOUSING AGENCY PLAN.—In the
case of an application proposing a demonstration
project that includes activities referred to in sub-
section (b)(2)(H) of this section—
(A) a certification that the applicable an-
nual public housing agency plan of any agency
affected by the project that is approved under
section 5A of the United States Housing Act of
1937 (42 U.S.C. 1437c–1) by the Secretary in-
cludes the information specified in paragraphs
(1) through (4) of this subsection; and
116
(B)
any
resident
advisory
board
rec-
ommendations, and other information, relating
to
the
project
that,
pursuant
to
section
5A(e)(2) of the United States Housing Act of
1937 (42 U.S.C. 1437c–1(e)(2), is required to
be included in the public housing agency plan of
any public housing agency affected by the
project.
(8) OTHER INFORMATION AND ASSURANCES.—
Such other information and assurances as the ad-
ministering Secretary may require.
(d) APPROVAL OF APPLICATIONS.—
(1) IN GENERAL.—The administering Secretary
with respect to a qualified program that is identified
in an application submitted pursuant to subsection
(c) may approve the application and, except as pro-
vided in paragraph (2), waive any requirement appli-
cable to the program, to the extent consistent with
this section and necessary and appropriate for the
conduct of the demonstration project proposed in the
application, if the administering Secretary deter-
mines that the project—
(A) has a reasonable likelihood of achieving
the objectives of the programs to be included in
the project;
117
(B) may reasonably be expected to meet
the applicable cost neutrality requirements of
paragraph (4), as determined by the Director of
the Office of Management and Budget; and
(C) includes the coordination of 2 or more
qualified programs.
(2) PROVISIONS EXCLUDED FROM WAIVER AU-
THORITY.—A waiver shall not be granted under
paragraph (1)—
(A) with respect to any provision of law re-
lating to—
(i) civil rights or prohibition of dis-
crimination;
(ii) purposes or goals of any program;
(iii) maintenance of effort require-
ments;
(iv) health or safety;
(v) labor standards under the Fair
Labor Standards Act of 1938; or
(vi) environmental protection;
(B) with respect to section 241(a) of the
Adult Education and Family Literacy Act;
(C) in the case of a program under the
United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), with respect to any requirement
118
under section 5A of such Act (42 U.S.C.
1437c–1; relating to public housing agency
plans and resident advisory boards);
(D) in the case of a program under the
Workforce Investment Act, with respect to any
requirement the waiver of which would violate
section 189(i)(4)(A)(i) of such Act;
(E) in the case of the food stamp program
(as defined in section 3(h) of the Food Stamp
Act of 1977 (7 U.S.C. 2012(h)), with respect to
any requirement under—
(i) section 6 (if waiving a requirement
under such section would have the effect of
expanding eligibility for the program), 7(b)
or 16(c) of the Food Stamp Act of 1977
(7 U.S.C. 2011 et seq.); or
(ii) title IV of the Personal Responsi-
bility and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1601 et seq.);
(F) with respect to any requirement that a
State pass through to a sub-State entity part or
all of an amount paid to the State;
(G) if the waiver would waive any funding
restriction or limitation provided in an appro-
priations Act, or would have the effect of trans-
119
ferring appropriated funds from 1 appropria-
tions account to another; or
(H) except as otherwise provided by stat-
ute, if the waiver would waive any funding re-
striction applicable to a program authorized
under an Act which is not an appropriations
Act (but not including program requirements
such as application procedures, performance
standards, reporting requirements, or eligibility
standards), or would have the effect of transfer-
ring funds from a program for which there is
direct spending (as defined in section 250(c)(8)
of the Balanced Budget and Emergency Deficit
Control Act of 1985) to another program.
(3) AGREEMENT OF EACH ADMINISTERING SEC-
RETARY REQUIRED.—
(A) IN GENERAL.—An applicant may not
conduct a demonstration project under this sec-
tion unless each administering Secretary with
respect to any program proposed to be included
in the project has approved the application to
conduct the project.
(B) AGREEMENT WITH RESPECT TO FUND-
ING AND IMPLEMENTATION.—Before approving
an
application
to
conduct
a
demonstration
120
project under this section, an administering
Secretary shall have in place an agreement with
the applicant with respect to the payment of
funds and responsibilities required of the ad-
ministering
Secretary
with
respect
to
the
project.
(4) COST-NEUTRALITY REQUIREMENT.—
(A)
GENERAL
RULE.—Notwithstanding
any other provision of law (except subparagraph
(B)), the total of the amounts that may be paid
by the Federal Government for a fiscal year
with respect to the programs in the State in
which an entity conducting a demonstration
project under this section is located that are af-
fected by the project shall not exceed the esti-
mated total amount that the Federal Govern-
ment would have paid for the fiscal year with
respect to the programs if the project had not
been conducted, as determined by the Director
of the Office of Management and Budget.
(B) SPECIAL RULE.—If an applicant sub-
mits to the Director of the Office of Manage-
ment and Budget a request to apply the rules
of this subparagraph to the programs in the
State in which the applicant is located that are
121
affected by a demonstration project proposed in
an application submitted by the applicant pur-
suant to this section, during such period of not
more than 5 consecutive fiscal years in which
the project is in effect, and the Director deter-
mines, on the basis of supporting information
provided by the applicant, to grant the request,
then, notwithstanding any other provision of
law, the total of the amounts that may be paid
by the Federal Government for the period with
respect to the programs shall not exceed the es-
timated total amount that the Federal Govern-
ment would have paid for the period with re-
spect to the programs if the project had not
been conducted.
(5) 90-DAY APPROVAL DEADLINE.—
(A) IN
GENERAL.—If an administering
Secretary receives an application to conduct a
demonstration project under this section and
does not disapprove the application within 90
days after the receipt, then—
(i)
the
administering
Secretary
is
deemed to have approved the application
for such period as is requested in the ap-
122
plication, except to the extent inconsistent
with subsection (e); and
(ii) any waiver requested in the appli-
cation which applies to a qualified program
that is identified in the application and is
administered by the administering Sec-
retary is deemed to be granted, except to
the extent inconsistent with paragraph (2)
or (4) of this subsection.
(B) DEADLINE EXTENDED IF ADDITIONAL
INFORMATION IS SOUGHT.—The 90-day period
referred to in subparagraph (A) shall not in-
clude any period that begins with the date the
Secretary requests the applicant to provide ad-
ditional information with respect to the applica-
tion and ends with the date the additional in-
formation is provided.
(e)
DURATION
OF
PROJECTS.—A
demonstration
project under this section may be approved for a term of
not more than 5 years.
(f) REPORTS TO CONGRESS.—
(1)
REPORT
ON
DISPOSITION
OF
APPLICA-
TIONS.—Within 90 days after an administering Sec-
retary receives an application submitted pursuant to
this section, the administering Secretary shall sub-
123
mit to each Committee of the Congress which has
jurisdiction over a qualified program identified in
the application notice of the receipt, a description of
the decision of the administering Secretary with re-
spect to the application, and the reasons for approv-
ing or disapproving the application.
(2)
REPORTS
ON
PROJECTS.—Each
admin-
istering Secretary shall provide annually to the Con-
gress a report concerning demonstration projects ap-
proved under this section, including—
(A) the projects approved for each appli-
cant;
(B) the number of waivers granted under
this section, and the specific statutory provi-
sions waived;
(C) how well each project for which a waiv-
er is granted is improving or enhancing pro-
gram achievement from the standpoint of qual-
ity, cost-effectiveness, or both;
(D) how well each project for which a
waiver is granted is meeting the performance
objectives specified in subsection (c)(3)(B);
(E) how each project for which a waiver is
granted is conforming with the cost-neutrality
requirements of subsection (d)(4); and
124
(F) to the extent the administering Sec-
retary deems appropriate, recommendations for
modification of programs based on outcomes of
the projects.
(g) AMENDMENT TO UNITED STATES HOUSING ACT
OF 1937.—Section 5A(d) of the United States Housing
Act of 1937 (42 U.S.C. 1437c–1(d)) is amended—
(1) by redesignating paragraph (18) as para-
graph (19); and
(2) by inserting after paragraph (17) the fol-
lowing new paragraph:
‘‘(18) PROGRAM
COORDINATION
DEMONSTRA-
TION PROJECTS.—In the case of an agency that ad-
ministers
an
activity
referred
to
in
section
701(b)(2)(H) of the Personal Responsibility, Work,
and Family Promotion Act of 2002 that, during
such fiscal year, will be included in a demonstration
project under section 701 of such Act, the informa-
tion that is required to be included in the application
for the project pursuant to paragraphs (1) through
(4) of section 701(b) of such Act.’’.
SEC. 702. STATE FOOD ASSISTANCE BLOCK GRANT DEM-
ONSTRATION PROJECT.
The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)
is amended by adding at the end the following:
125
‘‘SEC. 28. STATE FOOD ASSISTANCE BLOCK GRANT DEM-
ONSTRATION PROJECT.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a program to make grants to States in accordance
with this section to provide—
‘‘(1) food assistance to needy individuals and
families residing in the State;
‘‘(2) funds to operate an employment and train-
ing program under subsection (g) for needy individ-
uals under the program; and
‘‘(3) funds for administrative costs incurred in
providing the assistance.
‘‘(b) ELECTION.—
‘‘(1) IN GENERAL.—A State may elect to par-
ticipate in the program established under subsection
(a).
‘‘(2)
ELECTION
REVOCABLE.—A
State
that
elects to participate in the program established
under subsection (a) may subsequently reverse the
election of the State only once thereafter. Following
the reversal, the State shall only be eligible to par-
ticipate in the food stamp program in accordance
with the other sections of this Act and shall not re-
ceive a block grant under this section.
‘‘(3) PROGRAM
EXCLUSIVE.—A State that is
participating in the program established under sub-
126
section (a) shall not be subject to, or receive any
benefit under, this Act except as provided in this
section.
‘‘(c) LEAD AGENCY.—
‘‘(1) DESIGNATION.—A State desiring to par-
ticipate in the program established under subsection
(a) shall designate, in an application submitted to
the Secretary under subsection (d)(1), an appro-
priate State agency that complies with paragraph
(2) to act as the lead agency for the State.
‘‘(2) DUTIES.—The lead agency shall—
‘‘(A) administer, either directly, through
other State agencies, or through local agencies,
the assistance received under this section by the
State;
‘‘(B) develop the State plan to be sub-
mitted to the Secretary under subsection (d)(1);
and
‘‘(C) coordinate the provision of food as-
sistance under this section with other Federal,
State, and local programs.
‘‘(d) APPLICATION AND PLAN.—
‘‘(1) APPLICATION.—To be eligible to receive
assistance under this section, a State shall prepare
and submit to the Secretary an application at such
127
time, in such manner, and containing such informa-
tion as the Secretary shall by regulation require,
including—
‘‘(A) an assurance that the State will com-
ply with the requirements of this section;
‘‘(B) a State plan that meets the require-
ments of paragraph (2); and
‘‘(C) an assurance that the State will com-
ply with the requirements of the State plan
under paragraph (2).
‘‘(2) REQUIREMENTS OF PLAN.—
‘‘(A) LEAD AGENCY.—The State plan shall
identify the lead agency.
‘‘(B) USE OF BLOCK GRANT FUNDS.—The
State plan shall provide that the State shall use
the amounts provided to the State for each fis-
cal year under this section—
‘‘(i)
to
provide
food
assistance
to
needy individuals and families residing in
the State, other than residents of institu-
tions who are ineligible for food stamps
under section 3(i);
‘‘(ii) to administer an employment
and training program under subsection (g)
for needy individuals under the program
128
and to provide reimbursements to needy
individuals and families as would be al-
lowed under section 16(h)(3); and
‘‘(iii) to pay administrative costs in-
curred in providing the assistance.
‘‘(C) ASSISTANCE FOR ENTIRE STATE.—
The State plan shall provide that benefits under
this section shall be available throughout the
entire State.
‘‘(D) NOTICE AND HEARINGS.—The State
plan shall provide that an individual or family
who applies for, or receives, assistance under
this section shall be provided with notice of, and
an opportunity for a hearing on, any action
under this section that adversely affects the in-
dividual or family.
‘‘(E) OTHER ASSISTANCE.—
‘‘(i) COORDINATION.—The State plan
may coordinate assistance received under
this section with assistance provided under
the State program funded under part A of
title IV of the Social Security Act (42
U.S.C. 601 et seq.).
‘‘(ii) PENALTIES.—If an individual or
family is penalized for violating part A of
129
title IV of the Act, the State plan may re-
duce the amount of assistance provided
under this section or otherwise penalize the
individual or family.
‘‘(F)
ELIGIBILITY
LIMITATIONS.—The
State plan shall describe the income and re-
source eligibility limitations that are established
for the receipt of assistance under this section.
‘‘(G) RECEIVING BENEFITS IN MORE THAN
1 JURISDICTION.—The State plan shall estab-
lish a system to verify and otherwise ensure
that no individual or family shall receive bene-
fits under this section in more than 1 jurisdic-
tion within the State.
‘‘(H) PRIVACY.—The State plan shall pro-
vide for safeguarding and restricting the use
and disclosure of information about any indi-
vidual or family receiving assistance under this
section.
‘‘(I)
OTHER
INFORMATION.—The
State
plan shall contain such other information as
may be required by the Secretary.
‘‘(3) APPROVAL OF APPLICATION AND PLAN.—
During fiscal years 2003 through 2007, the Sec-
retary may approve the applications and State plans
130
that satisfy the requirements of this section of not
more than 5 States for a term of not more than 5
years.
‘‘(e)
CONSTRUCTION
OF
FACILITIES.—No
funds
made available under this section shall be expended for
the purchase or improvement of land, or for the purchase,
construction, or permanent improvement of any building
or facility.
‘‘(f) BENEFITS FOR ALIENS.—No individual shall be
eligible to receive benefits under a State plan approved
under subsection (d)(3) if the individual is not eligible to
participate in the food stamp program under title IV of
the Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 (8 U.S.C. 1601 et seq.).
‘‘(g) EMPLOYMENT
AND TRAINING.—Each State
shall implement an employment and training program for
needy individuals under the program.
‘‘(h) ENFORCEMENT.—
‘‘(1) REVIEW
OF
COMPLIANCE
WITH
STATE
PLAN.—The Secretary shall review and monitor
State compliance with this section and the State
plan approved under subsection (d)(3).
‘‘(2) NONCOMPLIANCE.—
131
‘‘(A) IN GENERAL.—If the Secretary, after
reasonable notice to a State and opportunity for
a hearing, finds that—
‘‘(i) there has been a failure by the
State to comply substantially with any pro-
vision or requirement set forth in the State
plan approved under subsection (d)(3); or
‘‘(ii) in the operation of any program
or activity for which assistance is provided
under this section, there is a failure by the
State to comply substantially with any pro-
vision of this section, the Secretary shall
notify the State of the finding and that no
further payments will be made to the State
under this section (or, in the case of non-
compliance in the operation of a program
or activity, that no further payments to the
State will be made with respect to the pro-
gram or activity) until the Secretary is sat-
isfied that there is no longer any failure to
comply or that the noncompliance will be
promptly corrected.
‘‘(B) OTHER SANCTIONS.—In the case of a
finding of noncompliance made pursuant to
subparagraph (A), the Secretary may, in addi-
132
tion to, or in lieu of, imposing the sanctions de-
scribed in subparagraph (A), impose other ap-
propriate sanctions, including recoupment of
money improperly expended for purposes pro-
hibited or not authorized by this section and
disqualification from the receipt of financial as-
sistance under this section.
‘‘(C) NOTICE.—The notice required under
subparagraph (A) shall include a specific identi-
fication of any additional sanction being im-
posed under subparagraph (B).
‘‘(3) ISSUANCE OF REGULATIONS .—The Sec-
retary shall establish by regulation procedures for—
‘‘(A)
receiving,
processing,
and
deter-
mining the validity of complaints concerning
any failure of a State to comply with the State
plan or any requirement of this section; and
‘‘(B) imposing sanctions under this sec-
tion.
‘‘(i) PAYMENTS.—
‘‘(1) IN GENERAL.—For each fiscal year, the
Secretary shall pay to a State that has an applica-
tion approved by the Secretary under subsection
(d)(3) an amount that is equal to the allotment of
the State under subsection (l)(2) for the fiscal year.
133
‘‘(2) METHOD
OF
PAYMENT.—The Secretary
shall make payments to a State for a fiscal year
under this section by issuing 1 or more letters of
credit for the fiscal year, with necessary adjustments
on account of overpayments or underpayments, as
determined by the Secretary.
‘‘(3) SPENDING OF FUNDS BY STATE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), payments to a State from an
allotment under subsection (l)(2) for a fiscal
year may be expended by the State only in the
fiscal year.
‘‘(B) CARRYOVER.—The State may reserve
up to 10 percent of an allotment under sub-
section (l)(2) for a fiscal year to provide assist-
ance under this section in subsequent fiscal
years, except that the reserved funds may not
exceed 30 percent of the total allotment re-
ceived under this section for a fiscal year.
‘‘(4)
PROVISION
OF
FOOD
ASSISTANCE.—A
State may provide food assistance under this section
in any manner determined appropriate by the State
to provide food assistance to needy individuals and
families in the State, such as electronic benefits
transfer limited to food purchases, coupons limited
134
to food purchases, or direct provision of commod-
ities.
‘‘(5) DEFINITION
OF
FOOD
ASSISTANCE.—In
this section, the term ‘food assistance’ means assist-
ance that may be used only to obtain food, as de-
fined in section 3(g).
‘‘(j) AUDITS.—
‘‘(1) REQUIREMENT.—After the close of each
fiscal year, a State shall arrange for an audit of the
expenditures of the State during the program period
from amounts received under this section.
‘‘(2) INDEPENDENT AUDITOR.—An audit under
this section shall be conducted by an entity that is
independent of any agency administering activities
that receive assistance under this section and be in
accordance with generally accepted auditing prin-
ciples.
‘‘(3) PAYMENT ACCURACY.—Each annual audit
under this section shall include an audit of payment
accuracy under this section that shall be based on a
statistically valid sample of the caseload in the
State.
‘‘(4) SUBMISSION.—Not later than 30 days
after the completion of an audit under this section,
135
the State shall submit a copy of the audit to the leg-
islature of the State and to the Secretary.
‘‘(5) REPAYMENT
OF
AMOUNTS.—Each State
shall repay to the United States any amounts deter-
mined through an audit under this section to have
not been expended in accordance with this section or
to have not been expended in accordance with the
State plan, or the Secretary may offset the amounts
against any other amount paid to the State under
this section.
‘‘(k) NONDISCRIMINATION.—
‘‘(1) IN
GENERAL.—The Secretary shall not
provide
financial
assistance
for
any
program,
project, or activity under this section if any person
with responsibilities for the operation of the pro-
gram, project, or activity discriminates with respect
to the program, project, or activity because of race,
religion, color, national origin, sex, or disability.
‘‘(2) ENFORCEMENT.—The powers, remedies,
and procedures set forth in title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.) may
be used by the Secretary to enforce paragraph (1).
‘‘(l) ALLOTMENTS.—
‘‘(1) DEFINITION OF STATE.—In this section,
the term ’State’ means each of the 50 States, the
136
District of Columbia, Guam, and the Virgin Islands
of the United States.
‘‘(2) STATE ALLOTMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), from the amounts made
available under section 18 of this Act for each
fiscal year, the Secretary shall allot to each
State participating in the program established
under subsection (a) an amount that is equal to
the sum of—
‘‘(i) the greater of, as determined by
the Secretary—
‘‘(I) the total dollar value of all
benefits issued under the food stamp
program established under this Act by
the State during fiscal year 2002; or
‘‘(II) the average per fiscal year
of the total dollar value of all benefits
issued under the food stamp program
by the State during each of fiscal
years 2000 through 2002; and
‘‘(ii) the greater of, as determined by
the Secretary—
‘‘(I) the total amount received by
the State for administrative costs and
137
the employment and training program
under subsections (a) and (h), respec-
tively, of section 16 of this Act for fis-
cal year 2002; or
‘‘(II) the average per fiscal year
of the total amount received by the
State for administrative costs and the
employment
and
training
program
under subsections (a) and (h), respec-
tively, of section 16 of this Act for
each of fiscal years 2000 through
2002.
‘‘(B) INSUFFICIENT FUNDS.—If the Sec-
retary finds that the total amount of allotments
to which States would otherwise be entitled for
a fiscal year under subparagraph (A) will ex-
ceed the amount of funds that will be made
available to provide the allotments for the fiscal
year, the Secretary shall reduce the allotments
made to States under this subsection, on a pro
rata basis, to the extent necessary to allot
under this subsection a total amount that is
equal to the funds that will be made available.’’.
138
TITLE VIII—ABSTINENCE
EDUCATION
SEC. 801. EXTENSION OF ABSTINENCE EDUCATION FUND-
ING UNDER MATERNAL AND CHILD HEALTH
PROGRAM.
Section 510(d) (42 U.S.C. 710(d)) is amended by
striking ‘‘2002’’ and inserting ‘‘2007’’.
TITLE IX—TRANSITIONAL
MEDICAL ASSISTANCE
SEC. 901. ONE-YEAR REAUTHORIZATION OF TRANSITIONAL
MEDICAL ASSISTANCE.
(a)
IN
GENERAL.—Section
1925(f)
(42
U.S.C.
1396r–6(f)) is amended by striking ‘‘2002’’ and inserting
‘‘2003’’.
(b)
CONFORMING
AMENDMENT.—Section
1902(e)(1)(B) (42 U.S.C. 1396a(e)(1)(B)) is amended by
striking ‘‘2002’’ and inserting ‘‘2003’’.
SEC. 902. ADJUSTMENT TO PAYMENTS FOR MEDICAID AD-
MINISTRATIVE COSTS TO PREVENT DUPLICA-
TIVE PAYMENTS AND TO FUND A 1-YEAR EX-
TENSION
OF
TRANSITIONAL
MEDICAL
AS-
SISTANCE.
Section 1903 (42 U.S.C. 1396b) is amended—
139
(1) in subsection (a)(7), by striking ‘‘section
1919(g)(3)(B)’’ and inserting ‘‘subsection (x) and
section 1919(g)(3)(C)’’; and
(2) by adding at the end the following:
‘‘(x) ADJUSTMENTS TO PAYMENTS FOR ADMINISTRA-
TIVE COSTS TO FUND 1-YEAR EXTENSION OF TRANSI-
TIONAL MEDICAL ASSISTANCE.—
‘‘(1) REDUCTIONS IN PAYMENTS FOR ADMINIS-
TRATIVE COSTS.—Effective for each calendar quar-
ter in fiscal year 2003 and fiscal year 2004, the Sec-
retary shall reduce the amount paid under sub-
section (a)(7) to each State by an amount equal to
50 percent for fiscal year 2003, and 75 percent for
fiscal year 2004, of one-quarter of the annualized
amount determined for the medicaid program under
section 16(k)(2)(B) of the Food Stamp Act of 1977
(7 U.S.C. 2025(k)(2)(B)).
‘‘(2)
ALLOCATION
OF
ADMINISTRATIVE
COSTS.—None of the funds or expenditures de-
scribed in section 16(k)(5)(B) of the Food Stamp
Act of 1977 (7 U.S.C. 2025(k)(5)(B)) may be used
to pay for costs—
‘‘(A) eligible for reimbursement under sub-
section (a)(7) (or costs that would have been el-
140
igible for reimbursement but for this sub-
section); and
‘‘(B) allocated for reimbursement to the
program under this title under a plan submitted
by a State to the Secretary to allocate adminis-
trative costs for public assistance programs;
except that, for purposes of subparagraph (A), the
reference in clause (iii) of that section to ‘subsection
(a)’ is deemed a reference to subsection (a)(7) and
clause (iv)(II) of that section shall be applied as if
‘medicaid program’ were substituted for ‘food stamp
program’.’’.
TITLE X—EFFECTIVE DATE
SEC. 1001. 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 im-
posed by the amendments made by this Act, the effective
date of the amendments imposing the additional require-
ments shall be 3 months after the first day of the first
calendar quarter beginning after the close of the first reg-
141
ular session of the State legislature that begins after the
date of the enactment of this Act. For purposes of the
preceding sentence, in the case of a State that has a 2-
year legislative session, each year of the session shall be
considered to be a separate regular session of the State
legislature.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Work, Opportunity, and
Responsibility for Kids Act of 2002’’ or the ‘‘WORK Act
of 2002’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Findings.
TITLE I—FUNDING
Sec. 101. Reauthorization of State family assistance grants.
Sec. 102. Contingency fund.
Sec. 103. Child care.
Sec. 104. State option to assist legal immigrant families.
Sec. 105. Use of funds.
Sec. 106. Definition of assistance.
Sec. 107. Maintenance of effort.
Sec. 108. Funding for families assisted by a territory program.
Sec. 109. Repeal of Federal loan fund for State welfare programs.
Sec. 110. Social Services Block Grant.
Sec. 111. Technical corrections.
TITLE II—WORK
Sec. 201. Universal engagement.
Sec. 202. Work participation requirements.
TITLE III—FAMILY PROMOTION AND SUPPORT
Sec. 301. Healthy marriage promotion grants.
Sec. 302. Abstinence education.
Sec. 303. Teen pregnancy prevention resource center.
Sec. 304. Responsible fatherhood.
142
Sec. 305. Second chance homes.
TITLE IV—HEALTH COVERAGE
Sec. 401. 5-year extension and simplification of the transitional medical assist-
ance program (TMA).
Sec. 402. Optional coverage of legal immigrants under the medicaid program and
title XXI.
Sec. 403. Clarification of authority of States and local authorities to provide
health care to immigrants.
Sec. 404. Clarification of no verification requirement for nonprofit charitable or-
ganizations.
TITLE V—CHILD SUPPORT AND CHILD WELFARE
Sec. 501. Distribution of child support collected by States.
Sec. 502. Mandatory review and adjustment of child support orders for families
receiving TANF.
Sec. 503. Decrease in amount of child support arrearage triggering passport de-
nial.
Sec. 504. Use of tax refund intercept program to collect past-due child support
on behalf of children who are not minors.
Sec. 505. Financing review and administrative funding.
Sec. 506. Adoption of uniform State laws.
Sec. 507. Tribal child support enforcement programs.
Sec. 508. Report on undistributed child support payments.
Sec. 509. Use of new hire information to assist in administration of unemploy-
ment compensation programs.
Sec. 510. Annual report on performance of State child support programs.
Sec. 511. Extension of authority to approve demonstration projects.
Sec. 512. Prohibition of limit on number of demonstration projects or waivers
that may be granted to a single State.
TITLE VI—TRIBAL ISSUES
Sec. 601. Tribal TANF programs.
Sec. 602. Authority of Indian tribes to receive Federal funds for foster care and
adoption assistance.
TITLE VII—INNOVATION, FLEXIBILITY, AND ACCOUNTABILITY
Sec. 701. Data collection; performance measures.
Sec. 702. State plan.
Sec. 703. Research.
Sec. 704. Innovative business link partnership grants for employers and nonprofit
organizations.
Sec. 705. Grants to improve access to transportation.
Sec. 706. At-home infant care.
Sec. 707. Grants to conduct demonstration projects on housing with services for
families with multiple barriers to work.
Sec. 708. Transitional compliance for teen parents.
Sec. 709. TANF programs mandatory partners with one-stop employment train-
ing centers; State opt-out.
Sec. 710. Advanced planning document process for information management sys-
tems procurement approval.
Sec. 711. Waivers.
Sec. 712. Antidiscrimination.
143
TITLE VIII—OTHER PROVISIONS
Sec. 801. Review of State agency blindness and disability determinations.
Sec. 802. Customs user fees.
TITLE IX—EFFECTIVE DATE
Sec. 901. Effective date.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in
this Act an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision,
the amendment or repeal shall be considered to be made
to a section or other provision of the Social Security Act.
SEC. 4. FINDINGS.
Congress makes the following findings:
(1) The Personal Responsibility and Work Op-
portunity Reconciliation Act of 1996 (Public Law
104–193; 110 Stat. 2105) was a fundamental change
to reform the Federal welfare system to shift it from
an entitlement program into a transition program to
help families move from welfare to work and personal
responsibility.
(2) Since enactment of the 1996 welfare reform
law, welfare cash assistance caseloads have dropped
dramatically, by approximately 50 percent, and ap-
proximately 2⁄3 of welfare recipients who have left the
cash assistance rolls have left for work.
(3) Another sign of reform and progress is that
funding has shifted from providing monthly cash as-
144
sistance for parents to stay at home to over 1⁄2 of the
funding targeted to pay for work supports, such as
child care, transportation, job placement, limited job
training, and services to prevent welfare dependency.
(4) More investments in quality child care will
allow parents to enter and continue in the workforce
knowing that their children have access to safe, mean-
ingful child care, hopefully with emphasis on child
development and preparation to ensure that each
child gains the skills needed to enter school ready to
learn.
(5) While families are moving from welfare to
work, and employment rates are up, many families
struggle in low-wage jobs and have trouble getting
promised supports such as medicaid, child care, food
stamps, and other supports available under programs
intended to help families.
(6) Child poverty rates in the United States are
improving but they could be lower and they remain
high when compared to the rates of other developed
countries. More must be done to reduce child poverty
in our Nation.
(7) Many parents who remain on the welfare
caseloads face multiple barriers to employment and
145
therefore need a range of services to address their
needs and move from welfare to work.
(8) States should have plans for each family re-
ceiving assistance to guide the family to self-suffi-
ciency and to consider the well-being of the children
in the family. While work participation levels have
increased for recipients since 1996, those levels should
be higher.
(9) Children deserve to be raised in supportive
homes, preferably with 2 loving parents. It is crucial
to end policies that discriminate against serving 2-
parent families within the welfare system. It is also
important to support innovative programs to encour-
age full participation in child support and child
rearing by noncustodial parents.
(10) Welfare reform has been successful because it
has been a flexible partnership between the Federal
Government and the States, and retaining the part-
nership and flexibility will be important for future
progress.
(11) The State and local agencies responsible for
administering the temporary assistance to needy fam-
ilies program have had to assume many new and
more complex responsibilities which necessitates im-
proving and upgrading the skills and ability of the
146
workers at those agencies to ensure high quality serv-
ice delivery and meet all program goals, including re-
ducing high staff turnover rates for such agencies and
staff-to-participant ratios.
(12) Studies have indicated disparate racial
treatment in the implementation of the temporary as-
sistance to needy families program with respect to de-
termining eligibility for assistance under the pro-
gram, disseminating information, providing referral
for services, and imposing sanctions for noncompli-
ance with program requirements.
TITLE I—FUNDING
SEC. 101. REAUTHORIZATION OF STATE FAMILY ASSIST-
ANCE GRANTS.
Section 403(a)(1) is amended (42 U.S.C. 603(a)(1))—
(1) in subparagraph (A), by striking ‘‘1996’’ and
all that follows through ‘‘2002’’ and inserting ‘‘2003
through 2007’’;
(2) in subparagraph (B), by striking ‘‘As used’’
and inserting ‘‘Subject to subparagraph (E), as
used’’;
(3) by redesignating subparagraph (E) as sub-
paragraph (F);
(4) by inserting after subparagraph (D) the fol-
lowing:
147
‘‘(E) INCREASE
OF
GRANT
FOR
CERTAIN
STATES.—
‘‘(i) IN GENERAL.—With respect to a
State family assistance grant made for each
of fiscal years 2003 through 2007, in the
case of a State that meets the criteria de-
scribed in clause (ii) or (iii) (or both), the
amount of the State family assistance grant
determined under this paragraph for that
State for each such fiscal year shall be in-
creased by the applicable amount described
in clause (iv).
‘‘(ii) 
RECEIPT
OF
SUPPLEMENTAL
GRANT FOR FISCAL YEAR 2002.—For pur-
poses of clause (i), the criteria described in
this clause is that the State received a sup-
plemental grant under paragraph (3) for
fiscal year 2002 (as in effect with respect to
such fiscal year).
‘‘(iii) STATE
PER
CAPITA
INCOME
BELOW THE NATIONAL AVERAGE.—For pur-
poses of clause (i), the criteria described in
this clause is that, with respect to a State,
the average State per capita income for cal-
endar years 1998, 1999, and 2000, as pub-
181
SEC. 107. MAINTENANCE OF EFFORT.
(a) INCLUSION OF CHILD SUPPORT ARREARAGES DIS-
TRIBUTED TO FAMILIES NO LONGER RECEIVING ASSIST-
ANCE.—Section 
409(a)(7)(B)(i) 
(42 
U.S.C.
609(a)(7)(B)(i)) is amended—
(1) 
in 
subclause 
(I)(aa), 
by 
striking
‘‘457(a)(1)(B)’’ and inserting ‘‘457(a)(1)’’; and
(2) by adding at the end the following:
‘‘(V) 
PORTIONS
OF
CERTAIN
CHILD SUPPORT PAYMENTS COLLECTED
ON BEHALF OF AND DISTRIBUTED TO
FAMILIES NO LONGER RECEIVING AS-
SISTANCE.—Any amount paid by a
State pursuant to section 457(a)(2)(B),
but only to the extent that the State
properly elects under section 457(a)(6)
to have the payment considered a
qualified State expenditure.’’.
(b) REAUTHORIZATION.—Section 409(a)(7) (42 U.S.C.
609(a)(7)) is amended—
(1) in subparagraph (A) by striking ‘‘fiscal year
1998, 1999, 2000, 2001, 2002, or 2003’’ and inserting
‘‘fiscal year 2003, 2004, 2005, 2006, 2007 or 2008’’;
and
(2) in subparagraph (B)(ii)—
195
assistance under the State pro-
gram funded under this part or
individuals with barriers to em-
ployment.
‘‘(gg) At least 1 member shall
be a representative of non-super-
visory employees of the State or
local agency with responsibility
for the administration of the State
program funded under this part.
‘‘(I) CHAIR.—
‘‘(aa) IN GENERAL.—Subject
to item (bb), the chair of the advi-
sory review panel shall be ap-
pointed by the chief executive offi-
cer of the State.
‘‘(bb) 
LIMITATION.—The
chair shall not be a State em-
ployee.
‘‘(III) COORDINATION
WITH
EX-
ISTING PANELS.—A State shall coordi-
nate the establishment of an advisory
review panel with other advisory pan-
els established as of October 1, 2002,
that serve recipients of assistance