‘‘(I) the average annual total
amount of grants to be made under
this paragraph for each bonus year
equals $100,000,000; and
‘‘(II) the total amount of grants to
be made under this paragraph for all
bonus years equals $500,000,000.
‘‘(E) DEFINITIONS.—In this paragraph:
‘‘(i) BONUS
YEAR.—The term ‘bonus
year’ means each of fiscal years 2004
through 2008.
‘‘(ii) 
EMPLOYMENT
ACHIEVEMENT
STATE.—The term ‘employment achievement
State’ means, with respect to a bonus year,
an eligible State whose performance deter-
mined pursuant to subparagraph (D)(i) for
the fiscal year preceding the bonus year
equals or exceeds the performance standards
prescribed under subparagraph (D)(ii) for
such preceding fiscal year.
‘‘(F) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 2004 through 2008 $500,000,000 for
grants under this paragraph.
‘‘(G) SENSE OF THE CONGRESS.—It is the
sense of the Congress that in developing the
bonus to reward employment achievement under
this paragraph, the Secretary and States should
consult with the Secretary of Labor so that meas-
ures for employment achievement under State
programs funded under this part are consistent
with the core indicators of performance which
States report under subclauses (I) through (III)
of section 136(b)(2)(A)(i) of the Workforce In-
vestment Act of 1998.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2003.
SEC. 105. REPORT ON INTEGRATION.
Not later than 6 months after the date of the enactment
of this Act, the Secretary of Health and Human Services
and the Secretary of Labor shall jointly submit a report
to the Congress describing changes needed to the definitions,
performance measures, and reporting requirements in the
Workforce Investment Act of 1998 and part A of title IV
of the Social Security Act, and, at the discretion of either
Secretary, any other program administered by the respec-
tive Secretary, to allow greater integration between the wel-
fare and workforce development systems.
SEC. 106. GAO STUDY.
(a) IN GENERAL.—The Comptroller General of the
United States shall conduct a study to determine the com-
bined effect of the phase-out rates for Federal programs and
policies which provide support to low-income families and
individuals as they move from welfare to work, including
those funded under title I of the Workforce Investment Act
of 1998, the Child Care and Development Block Grant Act
of 1990, the special supplemental nutrition program for
women, infants, and children under section 17 of the Child
Nutrition Act of 1966, the Richard B. Russell National
School Lunch Act, the Head Start Act, and the Low-Income
Home Energy Assistance Act of 1981, at all earning levels
up to $35,000 per year for at least 5 States, including Wis-
consin and California, and any potential disincentives the
combined phase-out rates create for families to achieve inde-
pendence.
(b) REPORT.—Not later than 1 year after the date of
the enactment of this section, the Comptroller General shall
submit a report to Congress containing the results of the
study conducted under this section and, as appropriate, any
recommendations consistent with the results.
SEC. 107. PURPOSE OF WORK PARTICIPATION REQUIRE-
MENTS.
(a) IN GENERAL.—Section 407 of the Social Security
Act (42 U.S.C. 607), as amended by section 101 of this Act,
is amended—
(1) by redesignating subsections (a) through (i)
as subsections (b) through (j), respectively, and insert-
ing before subsection (b) (as so redesignated) the fol-
lowing:
‘‘(a) PURPOSE.—The purpose of this section is to end
dependence of needy families on government benefits, reduce
poverty, and help achieve long-term income security by pro-
moting job preparation and work.’’; and
(2) in subsection (c) (as so redesignated)—
(A) in paragraph (1), by striking ‘‘(a)’’ and
inserting ‘‘(b)’’; and
(B) in paragraph (2)(A)(i), by striking
‘‘(c)’’ and inserting ‘‘(d)’’; and
(3) in paragraph (1) of subsection (d) (as so re-
designated), strike ‘‘(b)(2)’’ and insert ‘‘(c)(2)’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 402(a)(1)(A)(ii) of such Act (42
U.S.C. 602(a)(1)(A)(ii)) is amended by striking
‘‘407(e)(2)’’ and inserting ‘‘407(f)(2)’’.
(2) Section 404(k)(1)(D) of such Act (42 U.S.C.
604(k)(1)(D)) is amended by striking ‘‘407(d)’’ and
inserting ‘‘407(e)’’.
(3) Section 408(b)(1)(A) of such Act (42 U.S.C.
608(b)(1)(A)), as amended by section 102(b) of this
Act, is amended by striking ‘‘407(b)(2)(C)’’ and in-
serting ‘‘407(c)(2)(C)’’.
(4) Section 409(a) of such Act (42 U.S.C.
609(a)) is amended in each of paragraphs (3)(A) and
(7)(B)(ii), by striking ‘‘407(a)’’ and inserting
‘‘407(b)’’.
(5) Section 409(a)(11)(A) of such Act (42 U.S.C.
609(a)(11)(A)) is amended by striking ‘‘407(e)(2)’’
and inserting ‘‘407(f)(2)’’.
(6) Section 409(a)(14)(A) of such Act (42 U.S.C.
609(a)(14)(A)) is amended by striking ‘‘407(e)’’ and
inserting ‘‘407(f)’’.
(7) Section 411(a)(4) of such Act (42 U.S.C.
611(a)(4)) is amended by striking ‘‘407(d)’’ and in-
serting ‘‘407(e)’’.
(8) Section 411(b) of such Act (42 U.S.C. 611(b))
is amended by striking ‘‘407(a)’’ and inserting
‘‘407(b)’’.
(9) Section 412(c)(3) of such Act (42 U.S.C.
612(c)(3)) is amended by striking ‘‘407(e)’’ and in-
serting ‘‘407(f)’’.
(10) Section 412(g)(2) of such Act (42 U.S.C.
612(g)(2)) is amended by striking ‘‘407(a)’’ and in-
serting ‘‘407(b)’’.
(11) Section 466(a)(15)(B) of such Act (42
U.S.C. 666(a)(15)(B)) is amended by striking
‘‘407(d)’’ and inserting ‘‘407(e)’’.
SEC. 108. STATE TANF PROGRAMS MADE MANDATORY PART-
NERS WITH ONE-STOP EMPLOYMENT TRAIN-
ING CENTERS.
Section 408 of the Social Security Act (42 U.S.C. 608)
is amended by adding at the end the following:
‘‘(h) STATE TANF PROGRAMS MADE MANDATORY
PARTNERS WITH ONE-STOP EMPLOYMENT TRAINING CEN-
TERS.—For purposes of section 121(b) of the Workforce In-
vestment Act of 1998, a State program funded under part
A of title IV of the Social Security Act shall be considered
a program referred to in paragraph (1)(B) of such section.’’.
SEC. 109. LONGITUDINAL STUDY OF TANF APPLICANTS AND
RECIPIENTS TO DETERMINE THE FACTORS
THAT CONTRIBUTE TO THE ABILITY OF PEO-
PLE TO COMPLY WITH TANF WORK REQUIRE-
MENTS.
Section 413 of the Social Security Act (42 U.S.C. 613),
as amended by section 103(d) of this Act, is amended by
adding at the end the following:
‘‘(l) LONGITUDINAL STUDY OF TANF APPLICANTS AND
RECIPIENTS TO DETERMINE THE FACTORS THAT CON-
TRIBUTE TO THE ABILITY OF PEOPLE TO COMPLY WITH
TANF WORK REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary, through grant
or contract, shall conduct a longitudinal study of a
representative sample of families that receive, and
families that apply for, assistance from a State pro-
gram funded under this part or under a program
funded with qualified State expenditures (as defined
in section 409(a)(7)(B)(i)).
‘‘(2) REQUIREMENTS.—The study conducted
under this subsection shall follow families that leave
such a program, those that receive assistance through-
out the study period, and those diverted from such a
program. The study shall gather information on—
‘‘(A) family and adult demographics;
‘‘(B) family income and child support; and
‘‘(C) factors that contribute to the ability of
people to comply with work requirements and
achieve long-term self-sufficiency.’’.
TITLE II—AMENDMENTS TO THE
CHILD CARE AND DEVELOP-
MENT BLOCK GRANT ACT OF
1990
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Caring for Children
Act of 2002’’.
SEC. 202. GOALS.
(a) GOALS.—Section 658A(b) of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9801 note)
is amended—
(1) in paragraph (3) by striking ‘‘encourage’’
and inserting ‘‘assist’’,
(2) by amending paragraph (4) to read as fol-
lows:
‘‘(4) to assist State to provide child care to low-
income parents;’’,
(3) by redesignating paragraph (5) as para-
graph (7), and
(4) by inserting after paragraph (4) the fol-
lowing:
‘‘(5) to encourage States to improve the quality
of child care available to families;
‘‘(6) to promote school readiness by encouraging
the exposure of young children in child care to nur-
turing environments and developmentally-appropriate
activities, including activities to foster early cognitive
and literacy development; and’’.
(b) 
CONFORMING
AMENDMENT.—Section
658E(c)(3)(B) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858c(c)(3)(B)) is amended
by striking ‘‘through (5)’’ and inserting ‘‘through (7)’’.
SEC. 203. AUTHORIZATION OF APPROPRIATIONS.
Section 658B of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858) is amended—
(1) by striking ‘‘is’’ and inserting ‘‘are’’, and
(2) by striking ‘‘$1,000,000,000 for each of the
fiscal years 1996 through 2002’’ and inserting
‘‘$2,300,000,000 for fiscal year 2003 and such sums
as may be necessary for fiscal years 2004, 2005, 2006,
and 2007’’.
SEC. 204. APPLICATION AND PLAN.
Section 658E(c)(2) of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858C(c)(2)) is
amended—
(1) by amending subparagraph (D) to read as
follows:
‘‘(D) CONSUMER
AND
CHILD
CARE
PRO-
VIDER
EDUCATION
INFORMATION.—Certify that
the State will collect and disseminate, through
resource and referral services and other means as
determined by the State, to parents of eligible
children, child care providers, and the general
public, information regarding—
‘‘(i) the promotion of informed child
care choices, including information about
the quality and availability of child care
services;
‘‘(ii) research and best practices on
children’s development, including early cog-
nitive development;
‘‘(iii) the availability of assistance to
obtain child care services; and
‘‘(iv) other programs for which families
that receive child care services for which fi-
nancial assistance is provided under this
subchapter may be eligible, including the
food stamp program, the WIC program
under section 17 of the Child Nutrition Act
of 1966, the child and adult care food pro-
gram under section 17 of the Richard B.
Russell National School Lunch Act, and the
medicaid and CHIP programs under titles
XIX and XXI of the Social Security Act.’’,
and
(2) by inserting after subparagraph (H) the fol-
lowing:
‘‘(I) COORDINATION
WITH
OTHER
EARLY
CHILD CARE SERVICES AND EARLY CHILDHOOD
EDUCATION
PROGRAMS.—Demonstrate how the
State is coordinating child care services provided
under this subchapter with Head Start, Early
Reading First, Even Start, State pre-kinder-
garten programs, and other early childhood edu-
cation programs to expand accessibility to and
continuity of care and early education without
displacing services provided by the current early
care and education delivery system.
‘‘(J) 
PUBLIC-PRIVATE
PARTNERSHIPS.—
Demonstrate how the State encourages partner-
ships with private and other public entities to le-
verage existing service delivery systems of early
childhood education and increase the supply and
quality of child care services.
‘‘(K) CHILD CARE SERVICE QUALITY.—