A bill to amend part A of title IV of the Social Security Act to give States the option to create a program that allows individuals receiving temporary assistance to needy families to obtain post-secondary or longer duration vocational education.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pathways to Self-Sufficiency Act of 
2002''.

SEC. 2. AUTHORITY TO ESTABLISH UNDERGRADUATE POST-SECONDARY OR 
              VOCATIONAL EDUCATIONAL PROGRAM UNDER TANF.

    (a) State Option.--Section 404 of the Social Security Act (42 
U.S.C. 604) is amended by adding at the end the following new 
subsection:
    ``(l) Authority To Establish Undergraduate Post-Secondary or 
Vocational Educational Program.--
            ``(1) In general.--Subject to paragraph (2), a State to 
        which a grant is made under section 403 may use the grant to 
        establish a program under which an eligible participant (as 
        defined in paragraph (3)) may be provided support services 
        described in paragraph (5).
            ``(2) No federal funds for tuition.--A State may not use 
        Federal funds provided under a grant made under section 403 to 
        pay tuition for an eligible participant.
            ``(3) Definition of eligible participant.--
                    ``(A) In general.--In this subsection, the term 
                `eligible participant' means an individual who receives 
                assistance under the State program funded under this 
                part and satisfies the following requirements:
                            ``(i) The individual is enrolled in a 
                        postsecondary 2- or 4-year degree program or in 
                        a vocational educational training program.
                            ``(ii) During the first 24 months that the 
                        individual participates in the program, the 
                        individual engages in a combination of 
                        educational activities in connection with a 
                        course of study, training, study time, 
                        employment, or work experience for an average 
                        of not less than 24 hours per week.
                            ``(iii) After the first 24 months of the 
                        individual's participation in the program, the 
                        individual--
                                    ``(I) works not less than an 
                                average of 15 hours per week (in 
                                addition to school and study time); or
                                    ``(II) engages in a combination of 
                                educational activities in connection 
                                with a course of study, training, study 
                                time, employment, or work experience 
                                for an average of not less than 30 
                                hours per week.
                            ``(iv) During the period the individual 
                        participates in the program, the individual 
                        maintains satisfactory academic progress, as 
                        defined by the institution operating the 
                        undergraduate post-secondary or vocational 
                        educational program in which the individual is 
                        enrolled.
                    ``(B) Determination of hours.--For purposes of 
                determining hours per week under clause (ii) or (iii) 
                of subparagraph (A), a State may not count study time 
                of less than 1 hour for every hour of class time or 
                more than 2 hours for every hour of class time.
            ``(4) Required time periods for completion of degree or 
        vocational educational training program.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                individual participating in a program established under 
                this subsection shall be required to complete the 
                requirements of a degree or vocational educational 
                training program within the normal time frame for full 
                time students seeking the particular degree or 
                completing the vocational educational training program.
                    ``(B) Exception.--For good cause, the State may 
                allow an individual to complete their degree 
requirements or vocational educational training program within a period 
not to exceed 1\1/2\ times the normal time frame established under 
subparagraph (A) (unless further modification is required by the 
Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), or 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794)) and may 
modify the requirements applicable to an individual participating in 
the program. For purposes of the preceding sentence, good cause 
includes the case of an individual with 1 or more significant barriers 
to normal participation, as determined by the State, such as the need 
to care for a family member with special needs.
            ``(5) Support services described.--For purposes of 
        paragraph (1), the support services described in this paragraph 
        include any or all of the following during the period the 
        eligible participant is in the program established under this 
        subsection:
                    ``(A) Child care.
                    ``(B) Transportation services.
                    ``(C) Payment for books and supplies.
                    ``(D) Other services provided under policies 
                determined by the State to ensure coordination and lack 
                of duplication with other programs available to provide 
                support services.''.
    (b) State Option To Include Participants As Engaged in Work.--
            (1) In general.--Section 407(c)(2) of the Social Security 
        Act (42 U.S.C. 607(c)(2)) is amended by adding at the end the 
        following:
                    ``(E) State option to include participants as 
                engaged in work.--
                            ``(i) In general.--Subject to clause (ii), 
                        in the case of a State that elects to establish 
                        an undergraduate post-secondary or vocational 
                        education program under section 404(l), the 
                        State may include, for purposes of determining 
                        monthly participation rates under paragraphs 
                        (1)(B)(i) and (2)(B) of subsection (b), all 
                        families that include an individual 
                        participating in the program during the month 
                        as being engaged in work for the month, so long 
                        as each such individual is in compliance with 
                        the requirements of that program.
                            ``(ii) Limitation.--With respect to a 
                        month, the number of families counted as being 
                        engaged in work under clause (i) may not exceed 
                        the amount equal to 10 percent of the number of 
                        families receiving assistance under the State 
                        program funded under this part for the 
                        month.''.
            (2) Conforming amendments.--
                    (A) Section 407(c)(2)(D) of the Social Security Act 
                (42 U.S.C. 607(c)(2)(D)) is amended--
                            (i) in the heading, by inserting 
                        ``certain'' after ``participation in''; and
                            (ii) by inserting ``(determined without 
                        regard to individuals participating in a 
                        program referred to in subparagraph (E)(i))'' 
                        after ``training''.
                    (B) Section 407(d)(8) of the Social Security Act 
                (42 U.S.C. 607(d)(8)) is amended by inserting ``other 
                than an individual participating in a program that 
                meets the requirements of section 404(l)'' after 
                ``individual''.
    (c) State Option To Credit Months of Participation For Purposes of 
5-Year Assistance Limit.--Section 408(a)(7) of the Social Security Act 
(42 U.S.C. 608(a)(7)) is amended by adding at the end the following:
                    ``(H) Credit for months participating in a pathways 
                to self-sufficiency program.--In determining the number 
                of months for which an adult has received assistance 
                under a State program funded under this part, the State 
                may disregard any month during which the adult is a 
                participant in a program that meets the requirements of 
                section 404(l).''.
    (d) Effective Date.--The amendments made by this section take 
effect on October 1, 2002.

Summary: Pathways to Self-Sufficiency Act of 2002 - Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to give States that receive a TANF grant the option to: (1) use the grant to establish a program, including an undergraduate post-secondary or vocational education program, under which an eligible participant may be provided certain support services although the State may not use Federal TANF grant funds to pay the participant's tuition; and (2) credit months of program participation for disregard in calculation of the five year TANF assistance limitation.