Improving Employment Outcomes of TANF Recipients Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improving Employment Outcomes of 
TANF Recipients Act''.

SEC. 2. IMPROVING ECONOMIC MOBILITY OF TANF RECIPIENTS.

    Section 403(a)(4) of the Social Security Act (42 U.S.C. 603(a)(4)) 
is amended to read as follows:
            ``(4) Improving economic mobility of tanf recipients.--
                    ``(A) Measuring state performance.--
                            ``(i) In general.--Each State, in 
                        consultation with the Secretary, shall collect 
                        and report information necessary to measure the 
                        level of performance of the State for each 
                        indicator described in clause (ii), for fiscal 
                        year 2018 and each fiscal year thereafter, and 
                        the Secretary shall use the information 
                        collected for fiscal year 2018 to establish the 
                        baseline level of performance of each State for 
                        each such indicator.
                            ``(ii) Indicators.--The indicators 
                        described in this clause, for a fiscal year, 
                        are the following:
                                    ``(I) The employment percentage for 
                                the fiscal year, which is equal to--
                                            ``(aa) the number of 
                                        families receiving assistance 
                                        under the State program funded 
                                        under this part or any other 
                                        State program funded with 
                                        qualified State expenditures 
                                        (as defined in section 
                                        409(a)(7)(B)(ii)) who, during a 
                                        quarter in the fiscal year, 
                                        exited from the program, and 
                                        who, during the 2nd quarter 
                                        after the exit, include an 
                                        adult in unsubsidized 
                                        employment; divided by
                                            ``(bb) the number of 
                                        families who received 
                                        assistance from the program in 
                                        the exit quarter referred to in 
                                        subclause (aa).
                                    ``(II) The retention percentage for 
                                the fiscal year, which is equal to--
                                            ``(aa) the number of 
                                        families receiving assistance 
                                        from the State program funded 
                                        under this part or any other 
                                        State program funded with 
                                        qualified State expenditures 
                                        (as defined in section 
                                        409(a)(7)(B)(ii)) who, during a 
                                        quarter in the fiscal year, 
                                        exited from the program, and 
                                        who, during the 4th quarter 
                                        after the exit, include an 
                                        adult in unsubsidized 
                                        employment; divided by
                                            ``(bb) the number of 
                                        families who received 
                                        assistance under the program in 
                                        the exit quarter referred to in 
                                        subclause (aa).
                                    ``(III) The advancement measure for 
                                the fiscal year, which is equal to the 
                                median earnings of the adults receiving 
                                assistance under the State program 
                                funded under this part or any other 
                                State program funded with qualified 
                                State expenditures (as defined in 
                                section 409(a)(7)(B)(ii)) who, during a 
                                quarter in the fiscal year, exited from 
                                the program, and who during the 2nd 
                                quarter after the exit, are in 
                                unsubsidized employment.
                            ``(iii) Agreement on requisite performance 
                        level for each indicator.--
                                    ``(I) Fiscal years 2019 and 2020.--
                                The State shall reach agreement with 
                                the Secretary on the requisite level of 
                                performance for each indicator 
                                described in clause (ii), for each of 
                                fiscal years 2019 and 2020. In 
                                establishing the requisite levels of 
                                performance, the State and the 
                                Secretary shall--
                                            ``(aa) take into account 
                                        how the levels involved compare 
                                        with the levels established for 
                                        other States;
                                            ``(bb) ensure the levels 
                                        involved are adjusted, using 
                                        the objective statistical model 
                                        referred to in clause (v), 
                                        based on--

                                                    ``(AA) the 
                                                differences among 
                                                States in actual 
                                                economic conditions, 
                                                including differences 
                                                in unemployment rates 
                                                and job losses or gains 
                                                in particular 
                                                industries; and

                                                    ``(BB) the 
                                                characteristics of 
                                                participants on entry 
                                                into the program, 
                                                including indicators of 
                                                prior work history, 
                                                lack of educational or 
                                                occupational skills 
                                                attainment, or other 
                                                factors that may affect 
                                                employment and 
                                                earnings; and

                                            ``(cc) take into account 
                                        the extent to which the levels 
                                        involved promote continuous 
                                        improvement in performance by 
                                        each State.
                                    ``(II) Fiscal year 2021.--The State 
                                shall reach agreement with the 
                                Secretary, before fiscal year 2021, on 
                                the requisite level of performance for 
                                each indicator described in clause 
                                (ii), for fiscal year 2021, which shall 
                                be established in accordance with 
                                subclause (I) of this clause.
                            ``(iv) Revisions based on economic 
                        conditions and individuals receiving assistance 
                        during the fiscal year.--The Secretary shall, 
                        in accordance with the objective statistical 
                        model referred to in clause (v), revise the 
                        requisite levels of performance for a fiscal 
                        year and a State to reflect the actual economic 
                        conditions and characteristics of participants 
                        during that fiscal year in the State.
                            ``(v) Statistical adjustment model.--The 
                        Secretary shall use an objective statistical 
                        model to make adjustments to the requisite 
                        levels of performance for actual economic 
                        conditions and characteristics of participants, 
                        and shall consult with the Secretary of Labor 
                        to develop a model that is the same as or 
                        similar to the model described in section 
                        116(b)(3)(viii) of the Workforce Innovation and 
                        Opportunity Act (29 U.S.C. 3141).
                    ``(B) Report on state performance.--
                            ``(i) In general.--Not later than October 
                        1, 2017, the Secretary shall develop a template 
                        which each State shall use to report on 
                        outcomes achieved under the State program 
                        funded under this part or any other State 
                        program funded with qualified State 
                        expenditures (as defined in section 
                        409(a)(7)(B)(i)).
                            ``(ii) Contents.--Each such report shall 
                        include--
                                    ``(I) the number of individuals who 
                                exited the program during the year, and 
                                their reasons for doing so, including a 
                                separate accounting of the number of 
                                work-eligible individuals (as so 
                                defined) who exited the program during 
                                the year and their reasons for doing 
                                so;
                                    ``(II) the characteristics of the 
                                individuals who exited the program 
                                during the year, including information 
                                on the length of time the individual 
                                received assistance under the program, 
                                the educational level of the 
                                individual, and the earnings of the 
                                individual in the 4 quarters preceding 
                                the exit; and
                                    ``(III) information specifying the 
                                levels of performance achieved on each 
                                indicator described in subparagraph 
                                (A)(ii).
                            ``(iii) Publication.--Not later than 
                        September 30 of fiscal year 2020 and of each 
                        succeeding fiscal year, the Secretary shall 
                        make available electronically to the public 
                        each report submitted under this subparagraph 
                        during the fiscal year.
                    ``(C) Regulations.--The Secretary, in consultation 
                with the Secretary of Labor, shall prescribe such 
                regulations as may be necessary to provide for the 
                measurement of State performance on the indicators 
                described in this paragraph.''.

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on October 1, 
2016.
            Amend the title so as to read: ``A bill to increase the 
        employment, job retention, and earnings of former TANF 
        recipients.''.

Summary: Improving Employment Outcomes of TANF Recipients Act  (Sec. 2) This bill amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to replace the current program of bonus grants for high performing states with a program requiring each state to collect and report information necessary to measure the state's level of performance for FY2018 and each ensuing fiscal year for each employment percentage, retention percentage, and earnings advancement measure for adults in unsubsidized employment after exiting the TANF program (indicators). The Department of Health and Human Services (HHS) shall use the information collected for FY2018 to establish the baseline level of performance of each state for each indicator. The state shall reach agreement with HHS: (1) on the requisite level of performance for each indicator for FY2019-FY2020; and (2) before FY2021 on the requisite level of performance for each indicator for that fiscal year.  HHS shall revise the requisite levels of performance for a fiscal year and a state to reflect the actual economic conditions and characteristics of participants. HHS shall use an objective statistical model to make such performance level adjustments, and shall consult with the Department of Labor to develop a statistical adjustment model similar to one described in the Workforce Innovation and Opportunity Act. HHS shall also develop a template which each state shall use to report on outcomes achieved under the new program or any other state program funded with qualified state expenditures.