IB
Union Calendar No. 267
107TH CONGRESS
2D SESSION
H. R. 4092
[Report No. 107–452, Part I]
To enhance the opportunities of needy families to achieve self-sufficiency
and access quality child care, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 9, 2002
Mr. MCKEON (for himself, Mr. BOEHNER, Mr. PETRI, Mr. HOEKSTRA, Mr.
GREENWOOD, Mr. UPTON, Mr. TANCREDO, Mr. DEMINT, Mr. ISAKSON,
Mr. KELLER, and Mr. CULBERSON) introduced the following bill; which
was referred to the Committee on Education and the Workforce, and in
addition to the Committee on Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
MAY 10, 2002
Additional sponsors: Mr. PAYNE, Mr. GILMAN, Mr. ROHRABACHER, Mr.
WOLF, Ms. ROS-LEHTINEN, Mr. PITTS, Mr. TANCREDO, Mr. DINGELL,
Mr. 
DIAZ-BALART, 
Mr. 
HILLIARD, 
Mr. 
BLUMENAUER, 
Mrs.
NAPOLITANO, Mrs. CLAYTON, Mr. MEEKS of New York, Mr. BERMAN,
Mr. SANDERS, Mr. KING, Mr. MCHUGH, Ms. HART, Ms. EDDIE BERNICE
JOHNSON of Texas, Ms. MCKINNEY, Mr. HOEFFEL, Mr. ISSA, Mr. ROE-
MER, Mr. HYDE, Mr. LANTOS, Mr. HOUGHTON, Mr. BEREUTER, Mr.
WAXMAN, Mr. CLEMENT, Mr. ISAKSON, Mr. HALL of Ohio, Ms. LEE, Ms.
ROYBAL-ALLARD, Mr. MCNULTY, Mr. MICA, Mr. YOUNG of Alaska, Mr.
WALSH, Mr. CASTLE, Ms. MILLENDER-MCDONALD, Mrs. DAVIS of Cali-
fornia, Mr. GREENWOOD, Mrs. MORELLA, Mr. MORAN of Virginia, Ms.
BROWN of Florida, Mrs. MEEK of Florida, Mr. SMITH of Washington,
Ms. ESHOO, Mr. KIRK, Mr. NETHERCUTT, Mr. WEXLER, Ms. WOOLSEY,
Mr. CAMP, Mr. WILSON of South Carolina, Ms. DUNN, Mr. BISHOP, Mr.
TOM DAVIS of Virginia, Mr. SHAYS, Mr. SHAW, Mr. SCHAFFER, Mr. JEF-
FERSON, Ms. SLAUGHTER, Mr. BENTSEN, Mr. OBERSTAR, Mr. UDALL of
Colorado, Mr. MCDERMOTT, Mr. THOMPSON of Mississippi, Mr. DICKS,
Mr. KILDEE, Mr. LUTHER, Mr. PRICE
of North Carolina, Mr.
RODRIGUEZ, Ms. CARSON of Indiana, Mr. PASTOR, Mr. RANGEL, Mrs.
MINK
of Hawaii, Mr. FILNER, Mr. BROWN
of Ohio, and Mr.
FALEOMAVAEGA
MAY 10, 2002
Reported from the Committee on Education and the Workforce with an
amendment
[Strike out all after the enacting clause and insert the part printed in italic]
MAY 10, 2002
Referral to the Committee on Ways and Means extended for a period not later
than May 10, 2002
MAY 10, 2002
The Committee on Ways and Means discharged; committed to the Committee
of the Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on April 9, 2002]
A BILL
To enhance the opportunities of needy families to achieve
self-sufficiency and access quality child care, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Working Toward Independence Act of 2002’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title.
TITLE I—TANF PROGRAM
Sec. 101. Work participation requirements.
Sec. 102. Universal engagement policy.
Sec. 103. Work-related performance objectives.
Sec. 104. Bonus to reward employment achievement.
Sec. 105. Report on integration.
Sec. 106. GAO study.
Sec. 107. Purpose of work participation requirements.
Sec. 108. State TANF programs made mandatory partners with one-stop employ-
ment training centers.
Sec. 109. Longitudinal study of TANF applicants and recipients to determine the
factors that contribute to the ability of people to comply with
TANF work requirements.
TITLE II—AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT
BLOCK GRANT ACT OF 1990
Sec. 201. Short title.
Sec. 202. Goals.
Sec. 203. Authorization of appropriations.
Sec. 204. Application and plan.
Sec. 205. Activities to improve the quality of child care.
Sec. 206. Definitions.
TITLE III—BROADENED WAIVER AUTHORITY
Sec. 301. State program demonstration projects.
TITLE VII—EFFECTIVE DATE
Sec. 401. Effective date.
TITLE I—TANF PROGRAM
SEC. 101. WORK PARTICIPATION REQUIREMENTS.
(a) IN GENERAL.—Section 407 of the Social Security
Act (42 U.S.C. 607) is amended by striking all that precedes
subsection (b)(3) and inserting the following:
‘‘SEC. 407. WORK PARTICIPATION REQUIREMENTS.
‘‘(a) PARTICIPATION RATE REQUIREMENTS.—A State
to which a grant is made under section 403 for a fiscal
year shall achieve a minimum participation rate equal to
not less than—
‘‘(1) 50 percent for fiscal year 2003;
‘‘(2) 55 percent for fiscal year 2004;
‘‘(3) 60 percent for fiscal year 2005;
‘‘(4) 65 percent for fiscal year 2006; and
‘‘(5) 70 percent for fiscal year 2007 and each
succeeding fiscal year.
‘‘(b) CALCULATION OF PARTICIPATION RATES.—
‘‘(1) AVERAGE MONTHLY RATE.—For purposes of
subsection (a), the participation rate of a State for a
fiscal year is the average of the participation rates of
the State for each month in the fiscal year.
‘‘(2) MONTHLY PARTICIPATION RATES; INCORPO-
RATION OF 40-HOUR WORK WEEK STANDARD.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the participation rate of a State for
a month is—
‘‘(i) the total number of countable
hours (as defined in subsection (c)) with re-
spect to the counted families for the State
for the month; divided by
‘‘(ii) 160 multiplied by the number of
counted families for the State for the month.
‘‘(B) COUNTED FAMILIES DEFINED.—
‘‘(i) IN
GENERAL.—In subparagraph
(A), the term ‘counted family’ means, with
respect to a State and a month, a family
that includes a work-eligible individual and
that receives assistance in the month under
the State program funded under this part,
subject to clause (ii).
‘‘(ii) STATE OPTION TO EXCLUDE CER-
TAIN FAMILIES.—At the option of a State,
the 
term 
‘counted 
family’ 
shall 
not
include—
‘‘(I) a family in the first month
for which the family is a recipient of
assistance under the State program; or
‘‘(II) on a case-by-case basis, a
family in which the youngest child has
not attained 12 months of age.
‘‘(iii) STATE OPTION TO INCLUDE INDI-
VIDUALS RECEIVING ASSISTANCE UNDER A
TRIBAL FAMILY ASSISTANCE PLAN OR TRIB-
AL
WORK
PROGRAM.—At the option of a
State, the term ‘counted family’ may in-
clude families in the State that are receiv-
ing assistance under a tribal family assist-
ance plan approved under section 412 or
under a tribal work program to which
funds are provided under this part.
‘‘(C) 
WORK-ELIGIBLE
INDIVIDUAL
DE-
FINED.—In this section, the term ‘work-eligible
individual’ means an individual—
‘‘(i) who is married, or is a single head
of household; and
‘‘(ii) whose needs are (or, but for sanc-
tions under this part that have been in ef-
fect for more than 3 months (whether or not
consecutive) in the preceding 12 months or
under part D, would be) included in deter-
mining the amount of cash assistance to be
provided to the family under the State pro-
gram funded under this part.’’.
(b) REVISION OF CASELOAD REDUCTION CREDIT.—
Section 
407(b)(3)(A)(ii) 
of 
such 
Act 
(42 
U.S.C.
607(b)(3)(A)(ii)) is amended to read as follows:
‘‘(ii) the average monthly number of
families that received assistance under the
State program funded under this part
during—
‘‘(I) if the fiscal year is fiscal
year 2003, fiscal year 1996;
‘‘(II) if the fiscal year is fiscal
year 2004, fiscal year 1998;
‘‘(III) if the fiscal year is fiscal
year 2005, fiscal year 2001; or
‘‘(IV) if the fiscal year is fiscal
year 2006 or any succeeding fiscal
year, the then 4th preceding fiscal
year.’’.
(c) COUNTABLE HOURS.—Section 407 of such Act (42
U.S.C. 607) is amended by striking subsections (c) and (d)
and inserting the following:
‘‘(c) COUNTABLE HOURS.—
‘‘(1) DEFINITION.—In subsection (b)(2), the term
‘countable hours’ means, with respect to a family for
a month, the total number of hours in the month in
which any member of the family who is a work-eligi-
ble individual is engaged in a direct work activity or
other activities specified by the State, subject to the
other provisions of this subsection.
‘‘(2) LIMITATIONS.—Subject to such regulations
as the Secretary may prescribe:
‘‘(A) MINIMUM
WEEKLY
AVERAGE
OF
HOURS
OF
DIRECT
WORK
ACTIVITIES
RE-
QUIRED.—If the work-eligible individuals in a
family are engaged in a direct work activity for
an average total of fewer than 24 hours per week
in a month, then the number of countable hours
with respect to the family for the month shall be
zero.
‘‘(B) MAXIMUM
WEEKLY
AVERAGE
OF
HOURS OF OTHER ACTIVITIES.—An average of
not more than 16 hours per week of activities
specified by the State that are not direct work
activities may be considered countable hours in
a month with respect to a family.
‘‘(3) SPECIAL
RULES.—For purposes of para-
graph (1):
‘‘(A) PARTICIPATION IN QUALIFIED ACTIVI-
TIES.—
‘‘(i) IN
GENERAL.—If, with the ap-
proval of the State, the work-eligible indi-
viduals in a family are engaged in 1 or
more qualified activities for an average
total of at least 24 hours per week in a
month, then all such engagement in the
month shall be considered engagement in a
direct work activity, subject to clause (iii).
‘‘(ii) QUALIFIED ACTIVITY DEFINED.—
The term ‘qualified activity’ means—
‘‘(I) substance abuse counseling or
treatment;
‘‘(II) rehabilitation treatment and
services;
‘‘(III) work-related education or
training directed effectively at enabling
the family member to work; or
‘‘(B) SCHOOL ATTENDANCE BY TEEN HEAD
OF HOUSEHOLD.—A family shall be considered
to be engaged in a direct work activity for an
average of 40 hours per week in a month if the
family includes an individual who is married or
is a single head of household who has not at-
tained 20 years of age, and the individual—
‘‘(i) maintains satisfactory attendance
at secondary school or the equivalent in the
month; or
‘‘(ii) participates in education directly
related to employment for an average of at
least 20 hours per week in the month.
‘‘(d) DIRECT WORK ACTIVITIES.—In this section, the
term ‘direct work activities’ means—
‘‘(1) unsubsidized employment;
‘‘(2) subsidized private sector employment;
‘‘(3) subsidized public sector employment;
‘‘(4) on-the-job training;
‘‘(5) supervised work experience, including entre-
preneurship or micro-enterprise activities; or
‘‘(6) supervised community service.’’.
(d) 
PENALTIES
AGAINST
INDIVIDUALS.—Section
407(e)(1) (42 U.S.C. 607(e)(1)) is amended to read as fol-
lows:
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if an individual in a family receiving as-
sistance under a State program funded under this
part fails to engage in activities required in accord-
ance with this section, or other activities required by
the State under the program, and the family does not
otherwise engage in activities in accordance with the
self-sufficiency plan established for the family pursu-
ant to section 408(b), the State shall—
‘‘(A) if the failure is partial or persists for
not more than 1 month—
‘‘(i) reduce the amount of assistance
otherwise payable to the family pro rata (or
more, at the option of the State) with re-
spect to any period during a month in
which the failure occurs; or
‘‘(ii) terminate all assistance to the
family, subject to such good cause exceptions
as the State may establish; or
‘‘(B) if the failure is total and persists for
at least 2 consecutive months, terminate the pay-
ment to the family, under all State programs, of
any cash benefit that is a qualified State expend-
iture (as defined in section 409(a)(7)(B)(i)) for
at least 1 month and thereafter until the State
determines that the individual is in full compli-
ance with all requirements imposed under the
State program funded under this part, subject to
such good cause exceptions as the State may es-
tablish.’’.
(e) CONFORMING AMENDMENTS.—
(1) Section 404(k)(1)(D) of such Act (42 U.S.C.
604(k)(1)(D)) is amended by striking ‘‘work activi-
ties’’ and inserting ‘‘direct work activities’’.
(2) Section 407(b) of such Act (42 U.S.C. 607(b))
is amended by striking paragraphs (4) and (5).
(3) Section 407(f) of such Act (42 U.S.C. 607(f))
is amended in each of paragraphs (1) and (2) by
striking ‘‘work activity described in subsection (d)’’
and inserting ‘‘direct work activity’’.
(4) The heading of section 409(a)(14) of such Act
(42 U.S.C. 609(a)(14)) is amended by inserting ‘‘OR
REFUSING TO ENGAGE IN ACTIVITIES UNDER A FAM-
ILY SELF-SUFFICIENCY PLAN’’ after ‘‘WORK’’.
(f) SENSE OF THE CONGRESS.—It is the sense of the
Congress that a State welfare-to-work program should in-
clude a mentorship program.
SEC. 102. UNIVERSAL ENGAGEMENT POLICY.
(a) MODIFICATION OF STATE PLAN REQUIREMENTS.—
Section 402(a)(1)(A) of the Social Security Act (42 U.S.C.
602(a)(1)(A)) is amended by striking clauses (ii) and (iii)
and inserting the following:
‘‘(ii) Require a parent or caretaker re-
ceiving assistance under the program to en-
gage in work and alternative self-sufficiency
activities (as defined by the State), con-
sistent with section 407(e)(2).
‘‘(iii) Require families receiving assist-
ance under the program to engage in activi-
ties in accordance with family self-suffi-
ciency plans developed pursuant to section
408(b).’’.
(b) ESTABLISHMENT OF FAMILY SELF-SUFFICIENCY
PLANS.—Section 408(b) of such Act (42 U.S.C. 608(b)) is
amended to read as follows:
‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.—
‘‘(1) IN GENERAL.—A State to which a grant is
made under section 403 shall—
‘‘(A) assess, in the manner deemed appro-
priate by the State, the employability, skills, job
readiness, barriers to employment, and any ad-
ditional factors hindering the achievement of
self-sufficiency of each work-eligible individual
(as defined in section 407(b)(2)(C)), including
whether a member of a family receiving assist-
ance under the State program funded under this
part has been a victim of domestic or sexual vio-
lence, and may refer any such family member
for services as deemed appropriate by the State;
‘‘(B) establish for each family receiving as-
sistance under the State program funded under
this part, in consultation with each work-eligible
individual (as so defined), a self-sufficiency plan
that specifies appropriate activities described in
the State plan submitted pursuant to section
402, including direct work activities as appro-
priate designed to assist the family in achieving
their maximum degree of self-sufficiency;
‘‘(C) require, at a minimum, each member
of the family who is a work eligible individual
(as so defined) to participate in activities in ac-
cordance with the employment or other goals es-
tablished in the self-sufficiency plan;
‘‘(D) provide a description of the services,
programs, and supports that are determined ap-
propriate by the State to meet employment or
other goals;
‘‘(E) set forth the obligations of the recipi-
ent;
‘‘(F) monitor the participation of such fam-
ily members in the planned activities and the
progress of the family toward self-sufficiency;
‘‘(G) regularly review the effectiveness of the
self-sufficiency plan and the activities in which
the individuals are engaged; and
‘‘(H) upon such a review, revise the self-suf-
ficiency plan and activities as the State deems
appropriate.
Nothing in this part shall preclude a State from re-
quiring participation in work and any other activi-
ties the State deems appropriate for helping families
achieve self-sufficiency and improving child well-
being.
‘‘(2) TIMING.—The State shall comply with
paragraph (1) with respect to a family—
‘‘(A) in the case of a family that, as of Oc-
tober 1, 2002, is not receiving assistance from
the State program funded under this part, not
later than 60 days after the family first receives
assistance on the basis of the most recent appli-
cation for the assistance; or
‘‘(B) in the case of a family that, as of such
date, is receiving the assistance, not later than
180 days after October 1, 2002.
‘‘(3) STATE
DISCRETION.—A State shall have
sole discretion, consistent with section 407, to define
and design activities for families for purposes of this
subsection, and to develop methods for monitoring
and reviewing progress pursuant to this subsection.
‘‘(4) CONDITION.—A State may use funds pro-
vided under this part to provide free or reduced price
transportation on any bus or van which is used under
the State program funded under this part.’’.
(c) PENALTY FOR FAILURE TO ESTABLISH FAMILY
SELF-SUFFICIENCY PLAN.—Section 409(a)(3) of such Act
(42 U.S.C. 609(a)(3)) is amended—
(1) in the paragraph heading, by inserting ‘‘OR
ESTABLISH
FAMILY
SELF-SUFFICIENCY
PLAN’’ after
‘‘RATES’’; and
(2) in subparagraph (A), by inserting ‘‘or
408(b)’’ after ‘‘407(a)’’.
SEC. 103. WORK-RELATED PERFORMANCE OBJECTIVES.
(a) STATE PLAN MODIFICATIONS.—Section 402(a)(1)
of the Social Security Act (42 U.S.C. 602(a)(1)) is
amended—
(1) in subparagraph (A), by adding at the end
the following:
‘‘(vii) The document shall—
‘‘(I) describe how the State will
pursue ending dependence of needy
parents on government benefits by pro-
moting job preparation and work;
‘‘(II) include specific numerical
and measurable performance objectives
for accomplishing the purpose so de-
scribed, which shall include objectives
consistent with the criteria used by the
Secretary in establishing performance
targets under section 403(a)(4)(B) if
available; and
‘‘(III) describe the methodology
that the State will use to measure
State performance in relation to each
such objective.
‘‘(viii) The document shall describe
any strategies and programs the State may
be undertaking to address—
‘‘(I) employment retention and
advancement for recipients of assist-
ance under the State program funded
under this part, including placement
into high-demand jobs identified using
labor market information available
through the One-Stop delivery system
created under the Workforce Investment
Act of 1998;
‘‘(II) services for struggling and
noncompliant families and clients with
special problems; and
‘‘(III) program integration, in-
cluding the extent to which TANF em-
ployment and training services are
provided through the One-Stop delivery
system created under the Workforce In-
vestment Act of 1998, and the extent to
which former recipients of such assist-
ance have access to additional core, in-
tensive, or training services funded
through such Act.’’; and
(2) in subparagraph (B), by striking clause (iv).
(b) REPORT ON ANNUAL ACHIEVEMENT OF PERFORM-
ANCE GOALS.—Section 411 of such Act (42 U.S.C. 611) is
amended by adding at the end the following:
‘‘(c) ANNUAL REPORT ON ACHIEVEMENT OF PERFORM-
ANCE GOALS.—Beginning with fiscal year 2004, not later
than 3 months after the end of each fiscal year, each eligible
State shall submit to the Secretary a report on achievement
and improvement during the preceding fiscal year under
the 
numerical 
objectives 
referred 
to 
in 
section
402(a)(1)(A)(vii), using the measurement methodology de-
scribed in such section.’’.
(c) ANNUAL RANKING OF STATES.—Section 413(d)(1)
of such Act (42 U.S.C. 613(d)(1)) is amended by striking
‘‘long-term private sector jobs,’’ and inserting ‘‘private sec-
tor jobs, the success of the recipients in retaining employ-
ment, the ability of the recipients to increase their wages,’’.
(d) PERFORMANCE IMPROVEMENT.—Section 413 of
such Act (42 U.S.C. 613) is amended by adding at the end
the following:
‘‘(k) PERFORMANCE IMPROVEMENT.—The Secretary,
in consultation with States, shall develop uniform perform-
ance measures designed to assess the degree of effectiveness,
and the degree of improvement, of State programs funded
under this part in accomplishing the work-related purposes
of this part.’’.
SEC. 104. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.
(a) IN GENERAL.—Section 403(a)(4) of the Social Se-
curity Act (42 U.S.C. 603(a)(4)) is amended to read as fol-
lows:
‘‘(4) BONUS TO REWARD EMPLOYMENT ACHIEVE-
MENT.—
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant pursuant to this paragraph to
each State for each bonus year for which the
State is an employment achievement State.
‘‘(B) AMOUNT OF GRANT.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii) of this subparagraph, the Secretary
shall determine the amount of the grant
payable under this paragraph to an em-
ployment achievement State for a bonus
year, which shall be based on the perform-
ance of the State as determined under sub-
paragraph (D)(i) for the fiscal year that
immediately precedes the bonus year.
‘‘(ii) LIMITATION.—The amount pay-
able to a State under this paragraph for a
bonus year shall not exceed 5 percent of the
State family assistance grant.
‘‘(C) FORMULA FOR MEASURING STATE PER-
FORMANCE.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), not later than October 1, 2003, the Sec-
retary, in consultation with States and the
Secretary of Labor, shall develop a formula
for measuring State performance in oper-
ating the State program funded under this
part so as to achieve the goals of employ-
ment entry, job retention, and increased
earnings from employment for families re-
ceiving assistance under the program, as
measured on an absolute basis and on the
basis of improvement in State performance.
‘‘(ii) SPECIAL RULE FOR BONUS YEAR
2004.—For the purposes of awarding a
bonus under this paragraph for bonus year
2004, the Secretary may measure the per-
formance of a State in fiscal year 2003
using the job entry rate, job retention rate,
and earnings gain rate components of the
formula 
developed 
under 
section
403(a)(4)(C) as in effect immediately before
the effective date of this paragraph.
‘‘(D) DETERMINATION OF STATE PERFORM-
ANCE.—For each bonus year, the Secretary
shall—
‘‘(i) use the formula developed under
subparagraph (C) to determine the perform-
ance of each eligible State for the fiscal year
that precedes the bonus year; and
‘‘(ii) prescribe performance standards
in such a manner so as to ensure that—