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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Pathways to Independence Act of
2005''.

SEC. 2. STATE OPTION TO RECEIVE CREDIT FOR RECIPIENTS WHO ARE
DETERMINED BY APPROPRIATE AGENCIES WORKING IN
COORDINATION TO HAVE A DISABILITY AND TO BE IN NEED OF
SPECIALIZED ACTIVITIES.

(a) 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 receive credit for recipients
who are determined by appropriate agencies working in
coordination to have a disability and to be in need of
specialized activities.--
''(i) Initial 3-month period.--At the
option of the State, if the State agency
responsible for administering the State program
funded under this part determines that an
individual described in clause (iv) is not able
to meet the State's full work requirements, but
is engaged in activities prescribed by the
State, the State may deem the individual as
being engaged in work for purposes of
determining monthly participation rates under
paragraphs (1)(B)(i) and (2)(B) of subsection
(b) for not more than 3 months in any 24-month
period.
''(ii) Additional 3-month period.--A State
may extend the 3-month period under clause (i)
for an additional 3 months only if, during such
additional 3-month period, the individual
engages in rehabilitative services prescribed
by the State and a work activity described in
subsection (d) for such number of hours per
month as the State determines appropriate.
''(iii) Rules for credit in succeeding
months.--
''(I) In general.-- If the State
agency responsible for administering
the State program funded under this
part works in collaboration or has a
referral relationship with other
governmental or private agencies with
expertise in disability determinations
or appropriate services plans for
adults with disabilities (including
agencies that receive funds under this
part) and one of these entities
determines that an individual treated
as being engaged in work under clauses
(i) and (ii) continues to be unable to
meet the State's full work requirements
because of the individual's disability
and continuing need for rehabilitative
services after the conclusion of the
periods applicable under such clauses,
then for purposes of determining
monthly participation rates under
paragraphs (1)(B)(i) and (2)(B) of
subsection (b), the State may receive
credit in accordance with subclause
(II) for certain activities undertaken
with respect to the individual.
''(II) Credit for activities
undertaken through collaborative agency
process.--Subject to subclause (III),
if the State undertakes to provide
services for an individual to which
subclause (I) applies through a
collaborative process that includes
governmental or private agencies with
expertise in disability determinations
or appropriate services for adults with
disabilities, the State shall be
credited for purposes of the monthly
participation rates determined under
paragraphs (1)(B)(i) and (2)(B) of
subsection (b) with the lesser of--
''(aa) the sum of the
number of hours the individual
participates in an activity
described in paragraph (1),
(2), (3), (4), (5), (6), (7),
(8), or (12) of subsection (d)
for the month and the number of
hours that the individual
participates in rehabilitation
services under this clause for
the month; or
''(bb) twice the number of
hours the individual
participates in an activity
described in paragraph (1),
(2), (3), (4), (5), (6), (7),
(8), or (12) of subsection (d)
for the month.
''(III) Limitation.--A State shall
not receive credit under this clause
towards the monthly participation rates
under paragraphs (1)(B)(i) and (2)(B)
of subsection (b) unless the State
reviews the disability determination of
an individual to which subclause (I)
applies and the activities in which the
individual is participating not less
than every 6 months.
''(iv) Individual described.--For purposes
of this subparagraph, an individual described
in this clause is an individual who the State
has determined has a disability, including a
substance abuse problem, and would benefit from
participating in rehabilitative services while
combining such participation with other work
activities.
''(v) Definition of disability.--In this
subparagraph, the term 'disability' means a
physical or mental impairment, including
substance abuse, that--
''(I) constitutes or results in a
substantial impediment to employment;
or
''(II) substantially limits 1 or
more major life activities.''.
(b) Effective Date.--The amendment made by subsection (a) takes
effect on October 1, 2005.
Output:
Pathways to Independence Act of 2005 - Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to give States the option to receive credit for recipients who are determined by appropriate agencies to have a disability and to be in need of specialized activities.