SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Children First Act of 2002''.

SEC. 2. EXCLUSION OF CHILD CARE FROM DETERMINATION OF 5-YEAR 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) Limitation on meaning of `assistance' for 
                families receiving child care.--For purposes of 
                subparagraph (A), any funds provided under this part 
                that are used to provide child care for a family during 
                a month under the State program funded under this part 
                shall not be considered assistance under the 
                program.''.

SEC. 3. INCREASE IN FUNDING FOR CHILD CARE.

    (a) Increase in Funding.--Section 418(a)(3) of the Social Security 
Act (42 U.S.C. 618(a)(3)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(G) $3,967,000,000 for fiscal year 2003;
                    ``(H) $4,467,000,000 for fiscal year 2004;
                    ``(I) $4,967,000,000 for fiscal year 2005;
                    ``(J) $5,467,000,000 for fiscal year 2006; and
                    ``(K) $5,967,000,000 for fiscal year 2007.''.
    (b) Increase in Set Aside for Child Care Quality.--Section 658G of 
the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858e) is amended by striking ``4 percent'' and inserting ``12 
percent''.

SEC. 4. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS CARRIED 
              OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS AND 
              SERVICES.

    Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is 
amended--
            (1) in the subsection heading, by striking ``Assistance'' 
        and inserting ``benefits or services''; and
            (2) after the heading, by striking ``assistance'' and 
        inserting ``any benefit or service that may be provided''.

SEC. 5. APPLICABILITY OF STATE OR LOCAL HEALTH AND SAFETY STANDARDS TO 
              OTHER TANF CHILD CARE SPENDING.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)) is 
amended by adding at the end the following:
            ``(8) Certification of procedures to ensure that child care 
        providers comply with applicable state or local health and 
        safety standards.--A certification by the chief executive 
        officer of the State that procedures are in effect to ensure 
        that any child care provider in the State that provides 
        services for which assistance is provided under the State 
        program funded under this part complies with all applicable 
        State or local health and safety requirements as described in 
        section 658E(c)(2)(F) of the Child Care and Development Block 
        Grant Act of 1990.''.

SEC. 6. AVAILABILITY OF CHILD CARE FOR PARENTS REQUIRED TO WORK.

    Section 407(e)(2) of the Social Security Act (42 U.S.C. 607(e)(2)) 
is amended--
            (1) by inserting ``or other individual with custody'' after 
        ``parent''; and
            (2) by striking ``6'' and inserting ``13''.

SEC. 7. APPLICATION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 
              1990 REPORTING RULES TO TANF FUNDS EXPENDED FOR CHILD 
              CARE.

    (a) In General.--Section 411(a) of the Social Security Act (42 
U.S.C. 611(a)) is amended--
            (1) by redesignating paragraph (7) as paragraph (8); and
            (2) by inserting after paragraph (6), the following:
            ``(7) Application of child care and development block grant 
        act of 1990 reporting rules to funds expended for child care.--
        Any funds provided under this part that are expended for child 
        care, whether or not transferred to the Child Care and 
        Development Block Grant Act of 1990, shall be subject to the 
        individual and case data reporting requirements imposed under 
        that Act and need not be included in the report required by 
        paragraph (1) for a fiscal quarter.''.
    (b) Conforming Amendment.--Section 411(a)(1)(A)(ix) of such Act (42 
U.S.C. 611(a)(1)(A)(ix)) is amended by striking ``food stamps, or 
subsidized child care, and if the latter 2,'' and inserting ``or food 
stamps, and if the latter,''.

SEC. 8. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this Act shall take effect on October 1, 2002, and 
shall apply to payments under part A of title IV of the Social Security 
Act for calendar quarters beginning on or after such date, without 
regard to whether regulations to implement the amendments are 
promulgated by such date.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan under section 402(a) of the Social Security Act which the 
Secretary of Health and Human Services determines requires State 
legislation (other than legislation appropriating funds) in order for 
the plan to meet the additional requirements imposed by the amendments 
made by this Act, the State plan shall not be regarded as failing to 
comply with the requirements of such section 402(a) solely on the basis 
of the failure of the plan to meet such additional requirements before 
the 1st day of the 1st calendar quarter beginning after the close of 
the 1st regular session of the State legislature that begins after the 
date of the enactment of this Act. For purposes of the previous 
sentence, in the case of a State that has a 2-year legislative session, 
each year of such session shall be deemed to be a separate regular 
session of the State legislature.
Output: Children First Act of 2002 - Amends part A (Temporary Assistance for Needy Families) (TANF) of the Social Security Act (SSA) to: (1) exclude child care assistance from the determination of the five year limit on assistance under TANF; (2) increase funding for child care; and (3) require State TANF plans to include a certification of procedures to ensure that child care providers comply with applicable State or local health and safety standards.Raises from six years to 13 years the age of a child whose single custodial parent may refuse to engage in required work without incurring a reduction or termination of TANF under the State program.Subjects to the individual and case data reporting requirements of the Child Care and Development Block Grant Act of 1990 any TANF funds expended for child care, whether or not transferred to that Act, and exempts such funds from SSA reporting requirements.Amends the Child Care and Development Block Grant Act of 1990 to increase the set-aside for child care quality.