[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4090 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4090

 To reauthorize and improve the program of block grants to States for 
    temporary assistance for needy families, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 9, 2002

    Mr. Herger (for himself, Mr. Shaw, Mr. Watkins of Oklahoma, Mr. 
 McCrery, Mr. English, Mr. Lewis of Kentucky, Ms. Dunn of Washington, 
   Mr. Portman, Mr. Brady of Texas, Mr. Camp, Mr. McInnis, and Mrs. 
   Johnson of Connecticut) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To reauthorize and improve the program of block grants to States for 
    temporary assistance for needy families, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Personal Responsibility, Work, and 
Family Promotion Act of 2002''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Findings.
                             TITLE I--TANF

Sec. 101. Purposes.
Sec. 102. Family assistance grants.
Sec. 103. Promotion of family formation and healthy marriage.
Sec. 104. Supplemental grant for population increases in certain 
                            States.
Sec. 105. Bonus to reward employment achievement.
Sec. 106. Contingency fund.
Sec. 107. Use of funds.
Sec. 108. Repeal of Federal loan for State welfare programs.
Sec. 109. Universal engagement and family self-sufficiency plan 
                            requirements.
Sec. 110. Work participation requirements.
Sec. 111. Maintenance of effort.
Sec. 112. Performance improvement.
Sec. 113. Data collection and reporting.
Sec. 114. Direct funding and administration by Indian tribes.
Sec. 115. Research, evaluations, and national studies.
Sec. 116. Study by the Census Bureau.
Sec. 117. Repeal of waiver continuation authority.
Sec. 118. Definition of assistance.
Sec. 119. Technical corrections.
Sec. 120. Fatherhood program.
                          TITLE II--CHILD CARE

Sec. 201. Entitlement funding.
                        TITLE III--CHILD SUPPORT

Sec. 301. Federal matching funds for limited pass through of child 
                            support payments to families receiving 
                            TANF.
Sec. 302. State option to pass through all child support payments to 
                            families that formerly received TANF.
Sec. 303. Mandatory review and adjustment of child support orders for 
                            families receiving TANF.
Sec. 304. Mandatory fee for successful child support collection for 
                            family that has never received TANF.
Sec. 305. Report on undistributed child support payments.
Sec. 306. Use of new hire information to assist in administration of 
                            unemployment compensation programs.
Sec. 307. Immigration provisions.
Sec. 308. Decrease in amount of child support arrearage triggering 
                            passport denial.
Sec. 309. Use of tax refund intercept program to collect past-due child 
                            support on behalf of children who are not 
                            minors.
Sec. 310. Garnishment of compensation paid to veterans for service-
                            connected disabilities in order to enforce 
                            child support obligations.
Sec. 311. Improving Federal debt collection practices.
Sec. 312. Maintenance of technical assistance funding.
Sec. 313. Maintenance of Federal Parent Locator Service funding.
                        TITLE IV--CHILD WELFARE

Sec. 401. Extension of authority to approve demonstration projects.
Sec. 402. Elimination of limitation on number of waivers.
Sec. 403. Elimination of limitation on number of States that may be 
                            granted waivers to conduct demonstration 
                            projects on same topic.
Sec. 404. Elimination of limitation on number of waivers that may be 
                            granted to a single State for demonstration 
                            projects.
Sec. 405. Streamlined process for consideration of amendments to and 
                            extensions of demonstration projects 
                            requiring waivers.
Sec. 406. Availability of reports.
Sec. 407. Technical correction.
                 TITLE V--SUPPLEMENTAL SECURITY INCOME

Sec. 501. Review of State agency blindness and disability 
                            determinations.
                  TITLE VI--BROADENED WAIVER AUTHORITY

Sec. 601. State program demonstration projects.
                       TITLE VII--EFFECTIVE DATE

Sec. 701. Effective date.

SEC. 3. REFERENCES.

    Except as otherwise expressly provided, wherever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the amendment or repeal shall be 
considered to be made to a section or other provision of the Social 
Security Act.

SEC. 4. FINDINGS.

    The Congress makes the following findings:
            (1) The Temporary Assistance for Needy Families (TANF) 
        Program established by the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (Public Law 104-193) has 
        succeeded in moving families from welfare to work and reducing 
        child poverty.
                    (A) There has been a dramatic increase in the 
                employment of current and former welfare recipients. 
                The percentage of working recipients reached an all-
                time high in fiscal years 1999 and 2000. In fiscal year 
                1999, 33 percent of adult recipients were working, 
                compared to less than 7 percent in fiscal year 1992, 
                and 11 percent in fiscal year 1996. All States met the 
                overall participation rate standard in fiscal year 
                2000, as did the District of Columbia and Puerto Rico.
                    (B) Earnings for welfare recipients remaining on 
                the rolls have also increased significantly, as have 
                earnings for female-headed households. The increases 
                have been particularly large for the bottom 2 income 
                quintiles, that is, those women who are most likely to 
                be former or present welfare recipients.
                    (C) Welfare dependency has plummeted. As of 
                September 2001, 2,103,000 families and 5,333,000 
                individuals were receiving assistance. Accordingly, the 
                number of families in the welfare caseload and the 
                number of individuals receiving cash assistance 
                declined 52 percent and 56 percent, respectively, since 
                the enactment of TANF. These declines have persisted 
                even as unemployment rates have increased: unemployment 
rates nationwide rose 25 percent, from 3.9 percent in September 2000 to 
4.9 percent in September 2001, while welfare caseloads continued to 
drop by 7 percent.
                    (D) The child poverty rate continued to decline 
                between 1996 and 2000, falling 21 percent from 20.5 to 
                16.2 percent. The 2000 child poverty rate is the lowest 
                since 1979. Child poverty rates for African-American 
                and Hispanic children have also fallen dramatically 
                during the past 6 years. African-American child poverty 
                is at the lowest rate on record and Hispanic child 
                poverty has had the largest 4-year decrease on record.
                    (E) Despite these gains, States have had mixed 
                success in fully engaging welfare recipients in work 
                activities. While all States have met the overall work 
                participation rates required by law, in 2000, in an 
                average month, only about \1/3\ of all families with an 
                adult participated in work activities that were 
                countable toward the State's participation rate. Eight 
                jurisdictions failed to meet the more rigorous 2-parent 
                work requirements, and about 20 States are not subject 
                to the 2-parent requirements, most because they moved 
                their 2-parent cases to separate State programs where 
                they are not subject to a penalty for failing the 2-
                parent rates.
            (2) As a Nation, we have made substantial progress in 
        reducing teen pregnancies and births, slowing increases in 
        nonmarital childbearing, and improving child support 
        collections and paternity establishment.
                    (A) The teen birth rate has fallen continuously 
                since 1991, down a dramatic 22 percent by 2000. During 
                the period of 1991-2000, teenage birth rates fell in 
                all States and the District of Columbia, Puerto Rico, 
                and the Virgin Islands. Declines also have spanned age, 
                racial, and ethnic groups. There has been success in 
                lowering the birth rate for both younger and older 
                teens. The birth rate for those 15-17 years of age is 
                down 29 percent since 1991, and the rate for those 18 
                and 19 is down 16 percent. Between 1991 and 2000, teen 
                birth rates declined for all women ages 15-19--white, 
                African American, American Indian, Asian or Pacific 
                Islander, and Hispanic women ages 15-19. The rate for 
                African American teens--until recently the highest--
                experienced the largest decline, down 31 percent from 
                1991 to 2000, to reach the lowest rate ever reported 
                for this group. Most births to teens are nonmarital; in 
                2000, about 73 percent of the births to teens aged 15-
                19 occurred outside of marriage.
                    (B) Nonmarital childbearing continued to increase 
                slightly in 2000, however not at the sharp rates of 
                increase seen in recent decades. The birth rate among 
                unmarried women in 2000 was 3.5 percent lower than its 
                peak reached in 1994, while the proportion of births 
                occurring outside of marriage has remained at 
                approximately 33 percent since 1998.
                    (C) The negative consequences of out-of-wedlock 
                birth on the mother, the child, the family, and society 
                are well documented. These include increased likelihood 
                of welfare dependency, increased risks of low birth 
                weight, poor cognitive development, child abuse and 
                neglect, and teen parenthood, and decreased likelihood 
                of having an intact marriage during adulthood.
                    (D) An estimated 23,900,000 children do not live 
                with their biological father. 16,000,000 children live 
                with their mother only. These facts are attributable 
                largely to declining marriage rates, increasing divorce 
                rates, and increasing rates of nonmarital births during 
                the latter part of the 20th century.
                    (E) There has been a dramatic rise in cohabitation 
                as marriages have declined. Only 40 percent of children 
                of cohabiting couples will see their parents marry. 
                Those who do marry experience a 50 percent higher 
                divorce rate. Children in single-parent households and 
                cohabiting households are at much higher risk of child 
                abuse than children in intact married and stepparent 
                families.
                    (F) Children who live apart from their biological 
                fathers, on average, are more likely to be poor, 
                experience educational, health, emotional, and 
                psychological problems, be victims of child abuse, 
                engage in criminal behavior, and become involved with 
                the juvenile justice system than their peers who live 
                with their married, biological mother and father. A 
                child living in a single-parent family is nearly 5 
                times as likely to be poor as a child living in a 
                married-couple family. In married-couple families, the 
                child poverty rate is 8.1 percent, in households headed 
                by a single mother, the poverty rate is 39.7 percent.
                    (G) Since the enactment of the Personal 
                Responsibility and Work Opportunity Reconciliation Act 
                of 1996, child support collections within the child 
                support enforcement system have grown every year, 
                increasing from $12,000,000,000 in fiscal year 1996 to 
                nearly $19,000,000,000 in fiscal year 2001. The number 
                of paternities established or acknowledged in fiscal 
                year 2002 reached an historic high of over 1,500,000--
                which includes a nearly 100 percent increase through 
                in-hospital acknowledgement programs to 688,510 in 2000 
                from 349,356 in 1996. Child support collections were 
                made in over 7,000,000 cases in fiscal year 2000, 
                significantly more than the almost 4,000,000 cases 
                having a collection in 1996.
            (3) The Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 gave States great flexibility in the 
        use of Federal funds to develop innovative programs to help 
        families leave welfare and begin employment and to encourage 
        the formation of 2-parent families.
                    (A) Total Federal and State TANF expenditures in 
                fiscal year 2000 were $24,000,000,000, up from 
                $22,600,000,000 for the previous year. This increased 
                spending is attributable to significant new investments 
                in supportive services in the TANF program, such as 
                child care and activities to support work.
                    (B) Since the welfare reform effort began there has 
                been a dramatic increase in work participation 
                (including employment, community service, and work 
                experience) among welfare recipients, as well as an 
                unprecedented reduction in the caseload because 
                recipients have left welfare for work.
                    (C) States are making policy choices and investment 
                decisions best suited to the needs of their citizens.
                            (i) To expand aid to working families, all 
                        States disregard a portion of a family's earned 
                        income when determining benefit levels.
                            (ii) Most States increased the limits on 
                        countable assets above the former Aid to 
                        Families with Dependent Children (AFDC) 
                        program. Every State has increased the vehicle 
asset level above the prior AFDC limit for a family's primary 
automobile.
                            (iii) States are experimenting with 
                        programs to promote marriage and father 
                        involvement. Over half the States have 
                        eliminated restrictions on 2-parent families. 
                        Many States use TANF, child support, or State 
                        funds to support community-based activities to 
                        help fathers become more involved in their 
                        children's lives or strengthen relationships 
                        between mothers and fathers.
            (4) Therefore, it is the sense of the Congress that 
        increasing success in moving families from welfare to work, as 
        well as in promoting healthy marriage and other means of 
        improving child well-being, are very important Government 
        interests and the policy contained in part A of title IV of the 
        Social Security Act (as amended by this Act) is intended to 
        serve these ends.

                             TITLE I--TANF

SEC. 101. PURPOSES.

    Section 401(a) (42 U.S.C. 601(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``increase'' and inserting ``improve child well-being by 
        increasing'';
            (2) in paragraph (1), by inserting ``and services'' after 
        ``assistance''; and
            (3) in paragraph (4), by striking ``two-parent families'' 
        and inserting ``healthy, 2-parent married families, and 
        encourage responsible fatherhood.''.

SEC. 102. FAMILY ASSISTANCE GRANTS.

    (a) Extension of Authority.--Section 403(a)(1)(A) (42 U.S.C. 
603(a)(1)(A)) is amended--
            (1) by striking ``1996, 1997, 1998, 1999, 2000, 2001, and 
        2002'' and inserting ``2003 through 2007''; and
            (2) by inserting ``payable to the State for the fiscal 
        year'' before the period.
    (b) State Family Assistance Grant.--Section 403(a)(1) (42 U.S.C. 
603(a)(1)) is amended by striking subparagraphs (B) through (E) and 
inserting the following:
                    ``(B) State family assistance grant.--The State 
                family assistance grant payable to a State for a fiscal 
                year shall be the amount that bears the same ratio to 
                the amount specified in subparagraph (C) of this 
                paragraph as the amount required to be paid to the 
                State under this paragraph for fiscal year 2002 
                (determined without regard to any reduction pursuant to 
                section 412(a)(1)) bears to the total amount required 
                to be paid under this paragraph for fiscal year 2002.
                    ``(C) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for each of fiscal 
                years 2003 through 2007 $16,566,542,000 for grants 
                under this paragraph.''.
    (c) Matching Grants for the Territories.--Section 1108(b)(2) (42 
U.S.C. 1308(b)(2)) is amended by striking ``1997 through ``2002'' and 
inserting ``2003 through 2007''.

SEC. 103. PROMOTION OF FAMILY FORMATION AND HEALTHY MARRIAGE.

    (a) State Plans.--Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is 
amended by adding at the end the following:
                            ``(vii) Encourage equitable treatment of 
                        married, 2-parent families under the program 
                        referred to in clause (i).''.
    (b) Healthy Marriage Promotion Grants; Repeal of Bonus for 
Reduction of Illegitimacy Ratio.--Section 403(a)(2) (42 U.S.C. 
603(a)(2)) is amended to read as follows:
            ``(2) Healthy marriage promotion grants.--
                    ``(A) Authority.--The Secretary shall award 
                competitive grants to States, territories, and tribal 
                organizations for not more than 50 percent of the cost 
                of developing and implementing innovative programs to 
                promote and support healthy, married, 2-parent families 
                and reduce out-of-wedlock births.
                    ``(B) Healthy marriage promotion activities.--Funds 
                provided under subparagraph (A) shall be used to 
                support any of the following programs or activities:
                            ``(i) Public advertising campaigns on the 
                        value of marriage and the skills needed to 
                        increase marital stability and health.
                            ``(ii) Education in high schools on the 
                        value of marriage, relationship skills, and 
                        budgeting.
                            ``(iii) Marriage education and marriage 
                        skills programs for non-married pregnant women 
                        and non-married expectant fathers.
                            ``(iv) Pre-marital education and marriage 
                        skills training for engaged couples and for 
                        couples interested in marriage.
                            ``(v) Marriage enhancement and marriage 
                        skills training programs for married couples.
                            ``(vi) Divorce reduction programs that 
                        teach relationship skills.
                            ``(vii) Marriage mentoring programs which 
                        use married couples as role models and mentors 
                        in at-risk communities.
                            ``(viii) Programs to reduce the 
                        disincentives to marriage in means-tested aid 
                        programs, if offered in conjunction with any 
                        activity described in this subparagraph.
                    ``(C) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for each of fiscal 
                years 2003 through 2007 $100,000,000 for grants under 
                this paragraph.''.
    (c) Counting of Spending on Non-Eligible Families to Prevent and 
Reduce Incidence of Out-of-Wedlock Births, Encourage Formation and 
Maintenance of Healthy, 2-Parent Married Families, or Encourage 
Responsible Fatherhood.--Section 409(a)(7)(B)(i) (42 U.S.C. 
609(a)(7)(B)(i)) is amended by adding at the end the following:
                                    ``(V) Counting of spending on non-
                                eligible families to prevent and reduce 
                                incidence of out-of-wedlock births, 
                                encourage formation and maintenance of 
                                healthy, 2-parent married families, or 
                                encourage responsible fatherhood.--The 
                                term `qualified State expenditures' 
                                includes the total expenditures by the 
                                State during the fiscal year under all 
                                State programs for a purpose described 
                                in paragraph (3) or (4) of section 
                                401(a).''.

SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN CERTAIN 
              STATES.

    Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is amended--
            (1) in clause (i), by striking ``fiscal year 2002'' and 
        inserting ``each of fiscal years 2002 through 2007'';
            (2) in clause (ii), by striking ``2002'' and inserting 
        ``2007''; and
            (3) in clause (iii), by striking ``fiscal year 2002'' and 
        inserting ``each of fiscal years 2002 through 2007''.

SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.

    (a) Reallocation of Funding.--Section 403(a)(4) (42 U.S.C. 
603(a)(4)) is amended--
            (1) in the paragraph heading, by striking ``high 
        performance states'' and inserting ``employment achievement'';
            (2) in subparagraph (D)(ii)--
                    (A) in subclause (I), by striking ``equals 
                $200,000,000'' and inserting ``(other than 2003) equals 
                $200,000,000, and for bonus year 2003 equals 
                $100,000,000''; and
                    (B) in subclause (II), by striking 
                ``$1,000,000,000'' and inserting ``$900,000,000''; and
            (3) in subparagraph (F), by striking ``$1,000,000,000'' and 
        inserting ``$900,000,000''.
    (b) Bonus to Reward Employment Achievement.--
            (1) In general.--Section 403(a)(4) (42 U.S.C. 603(a)(4)) is 
        amended by striking subparagraphs (A) through (F) and inserting 
        the following:
                    ``(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 employment achievement 
                        State for a bonus year, which shall be based on 
                        the performance of the State as determined 
                        under subparagraph (D)(i) for the fiscal year 
                        that immediately precedes the bonus year.
                            ``(ii) Limitation.--The amount payable 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 performance.--
                            ``(i) In general.--Subject to clause (ii), 
                        not later than October 1, 2003, the Secretary, 
                        in consultation with the National Governors 
                        Association and the American Public Human 
                        Services Association, shall develop a formula 
                        for measuring State performance in operating 
                        the State program funded under this part so as 
                        to achieve the goals of employment entry, job 
                        retention, and increased earnings from 
                        employment for families receiving 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 performance 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 performance.--For each 
                bonus year, the Secretary shall--
                            ``(i) use the formula developed under 
                        subparagraph (C) to determine the performance 
                        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--
                                    ``(I) the average annual total 
                                amount of grants to be made under this 
                                paragraph for each bonus year equals 
                                $100,000,000; and
                                    ``(II) the total amount of grants 
                                to be made under this paragraph for all 
                                bonus years equals $500,000,000.
                    ``(E) Definitions.--In this paragraph:
                            ``(i) Bonus year.--The term `bonus year' 
                        means each of fiscal years 2004 through 2008.
                            ``(ii) Employment achievement state.--The 
                        term `employment achievement State' means, with 
                        respect to a bonus year, an eligible State 
                        whose performance determined pursuant to 
                        subparagraph (D)(i) for the fiscal year 
                        preceding the bonus year equals or exceeds the 
                        performance standards prescribed under 
                        subparagraph (D)(ii) for such preceding fiscal 
                        year.
                    ``(F) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal years 
                2004 through 2008 $500,000,000 for grants under this 
                paragraph.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 2003.

SEC. 106. CONTINGENCY FUND.

    (a) Deposits Into Fund.--Section 403(b)(2) (42 U.S.C. 603(b)(2)) is 
amended--
            (1) by striking ``1997, 1998, 1999, 2000, 2001, and 2002'' 
        and inserting ``2003 through 2007''; and
            (2) by striking all that follows ``$2,000,000,000'' and 
        inserting a period.
    (b) Grants.--Section 403(b)(3)(C)(ii) (42 U.S.C. 603(b)(3)(C)(ii)) 
is amended by striking ``fiscal years 1997 through 2002'' and inserting 
``fiscal years 2003 through 2007''.
    (c) Definition of Needy State.--Clauses (i) and (ii) of section 
403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are amended by inserting after 
``1996'' the following: ``, and the Food Stamp Act of 1977 as in effect 
during the corresponding 3-month period in the fiscal year preceding 
such most recently concluded 3-month period,''.
    (d) Annual Reconciliation: Federal Matching of State Expenditures 
Above ``Maintenance of Effort'' Level.--Section 403(b)(6) (42 U.S.C. 
603(b)(6)) is amended--
            (1) in subparagraph (A)(ii)--
                    (A) by adding ``and'' at the end of subclause (I);
                    (B) by striking ``; and'' at the end of subclause 
                (II) and inserting a period; and
                    (C) by striking subclause (III);
            (2) in subparagraph (B)(i)(II), by striking all that 
        follows ``section 409(a)(7)(B)(iii))'' and inserting a period;
            (3) by amending subparagraph (B)(ii)(I) to read as follows:
                                    ``(I) the qualified State 
                                expenditures (as defined in section 
                                409(a)(7)(B)(i)) for the fiscal year; 
                                plus''; and
            (4) by striking subparagraph (C).
    (e) Consideration of Certain Child Care Expenditures in Determining 
State Compliance With Contingency Fund Maintenance of Effort 
Requirement.--Section 409(a)(10) (42 U.S.C. 609(a)(10)) is amended--
            (1) by striking ``(other than the expenditures described in 
        subclause (I)(bb) of that paragraph) under the State program 
        funded under this part''; and
            (2) by striking ``excluding any amount expended by the 
        State for child care under subsection (g) or (i) of section 402 
        (as in effect during fiscal year 1994) for fiscal year 1994,''.

SEC. 107. USE OF FUNDS.

    (a) General Rules.--Section 404(a)(2) (42 U.S.C. 604(a)(2)) is 
amended by striking ``in any manner that'' and inserting ``for any 
purposes or activities for which''.
    (b) Treatment of Interstate Immigrants.--
            (1) State plan provision.--Section 402(a)(1)(B) (42 U.S.C. 
        602(a)(1)(B)) is amended by striking clause (i) and 
        redesignating clauses (ii) through (iv) as clauses (i) through 
        (iii), respectively.
            (2) Use of funds.--Section 404 (42 U.S.C. 604) is amended 
        by striking subsection (c).
    (c) Increase in Amount Transferable to Child Care.--Section 
404(d)(1) (42 U.S.C. 604(d)(1)) is amended by striking ``30'' and 
inserting ``50''.
    (d) Increase in Amount Transferable to Title XX Programs.--Section 
404(d)(2)(B) (42 U.S.C. 604(d)(2)(B)) is amended to read as follows:
                    ``(B) Applicable percent.--For purposes of 
                subparagraph (A), the applicable percent is--
                            ``(i) 4.25 percent for fiscal year 2003;
                            ``(ii) 5 percent for fiscal year 2004;
                            ``(iii) 6 percent for fiscal year 2005;
                            ``(iv) 8 percent for fiscal year 2006; and
                            ``(v) 10 percent for fiscal year 2007 and 
                        each succeeding fiscal year.''.
    (e) Clarification of Authority of States To Use TANF Funds Carried 
Over From Prior Years to Provide TANF Benefits and Services.--Section 
404(e) (42 U.S.C. 604(e)) is amended to read as follows:
    ``(e) Authority To Carry Over or Reserve Certain Amounts for 
Benefits or Services or for Future Contingencies.--
            ``(1) Carryover.--A State or tribe may use a grant made to 
        the State or tribe under this part to provide, without fiscal 
        year limitation, any benefit or service that may be provided 
        under the State or tribal program funded under this part.
            ``(2) Contingency reserve.--A State or tribe may designate 
        any portion of a grant made to the State or tribe under this 
        part as a contingency reserve for future needs, and may use any 
        amount so designated to provide, without fiscal year 
        limitation, any benefit or service that may be provided under 
        the State or tribal program funded under this part. If a State 
        or tribe so designates a portion of such a grant, the State 
        shall, on an annual basis, include in its report under section 
        411(a) the amount so designated.''.

SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE PROGRAMS.

    (a) Repeal.--Section 406 (42 U.S.C. 606) is repealed.
    (b) Conforming Amendments.--
            (1) Section 409(a) (42 U.S.C. 609(a)) is amended by 
        striking paragraph (6).
            (2) Section 412 (42 U.S.C. 612) is amended by striking 
        subsection (f) and redesignating subsection (g) as subsection 
        (f).
            (3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 
        striking ``406,''.

SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUFFICIENCY PLAN 
              REQUIREMENTS.

    (a) Modification of State Plan Requirements.--Section 402(a)(1)(A) 
(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 
                        receiving assistance under the program to 
                        engage in work or alternative self-sufficiency 
                        activities (as defined by the State), 
                        consistent with section 407(e)(2).
                            ``(iii) Require families receiving 
                        assistance under the program to engage in 
                        activities in accordance with family self-
                        sufficiency plans developed pursuant to section 
                        408(b).''.
    (b) Establishment of Family Self-Sufficiency Plans.--
            (1) In general.--Section 408(b) (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) establish for each family receiving 
                assistance under the State program funded under this 
                part a self-sufficiency plan that specifies appropriate 
                activities described in the State plan submitted 
                pursuant to section 402, including direct work 
                activities as appropriate designed to assist the family 
                in achieving their maximum degree of self-sufficiency;
                    ``(B) require, at a minimum, each member of the 
                family who is a work-eligible individual (as defined in 
                section 407(b)(2)(C)) to participate in activities in 
                accordance with the self-sufficiency plan;
                    ``(C) monitor the participation of such family 
                members in the activities and the progress of the 
                family toward self-sufficiency;
                    ``(D) regularly review the self-sufficiency plan; 
                and
                    ``(E) revise the self-sufficiency plan as 
                appropriate.
            ``(2) Timing.--The State shall comply with paragraph (1) 
        with respect to a family--
                    ``(A) in the case of a family that, as of October 
                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 application for the assistance; or
                    ``(B) in the case of a family that, as of such 
                date, is receiving the assistance, not later than 12 
                months after the date of the enactment of this 
                subsection.''.
            (2) Penalty for failure to establish family self-
        sufficiency plan.--Section 409(a)(3) (42 U.S.C. 609(a)(3)) is 
        amended--
                    (A) in the paragraph heading, by inserting ``or 
                establish family self-sufficiency plan'' after 
                ``rates''; and
                    (B) in subparagraph (A), by inserting ``or 408(b)'' 
                after ``407(a)''.

SEC. 110. WORK PARTICIPATION REQUIREMENTS.

    (a) In General.--Section 407 (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; incorporation of 40-hour 
        work week standard.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the participation rate of a State for a month is--
                            ``(i) the total number of countable hours 
                        (as defined in subsection (c)) with respect 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 certain 
                        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 receives 
                                assistance from a State program funded 
                                under this part on the basis of the 
                                most recent application for such 
                                assistance; or
                                    ``(II) a family in which the 
                                youngest child has not attained 12 
                                months of age, except to the extent 
                                that the State, on a case-by-case 
                                basis, has elected to permit or require 
                                the family to engage in direct work 
                                activities or other activities 
                                specified by the State.
                            ``(iii) State option to include individuals 
                        receiving assistance under a tribal family 
                        assistance plan or tribal work program.--At the 
                        option of a State, the term `counted family' 
                        may include families in the State that are 
                        receiving assistance under a tribal family 
                        assistance plan approved under section 412 or 
                        under a tribal work program to which funds are 
                        provided under this part.
                    ``(C) Work-eligible individual defined.--In this 
                section, the term `work-eligible individual' means an 
                individual--
                            ``(i) who is married or a single head of 
                        household; and
                            ``(ii) whose needs are (or, but for 
                        sanctions under this part that have been in 
                        effect for more than 3 months (whether or not 
                        consecutive) in the preceding 12 months or 
                        under part D, would be) included in determining 
                        the amount of cash assistance to be provided to 
                        the family under the State program funded under 
                        this part.''.
    (b) Recalibration of Caseload Reduction Credit.--Section 
407(b)(3)(A)(ii) (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; or
                                    ``(III) if the fiscal year is 
                                fiscal year 2005, fiscal year 2001; or
                                    ``(IV) if the fiscal year is fiscal 
                                year 2006, fiscal year 2002; or
                                    ``(V) if the fiscal year is fiscal 
                                year 2007, fiscal year 2003.''.
    (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-eligible individual is engaged in a 
        direct work activity or other activity 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 24 hours of direct 
                work activities required.--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 16 hours of other 
                activities.--An average of not more than 16 hours per 
                week of other activities referred to in paragraph (1) 
                may be considered countable hours in a month with 
                respect to a family.
            ``(3) Special rules.--For purposes of paragraph (1):
                    ``(A) Participation in qualified activities.--
                            ``(i) In general.--If, with the approval of 
                        the State, the work-eligible individuals 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 an activity 
                        specified by the State, including a program 
                        meeting such standards and criteria as the 
                        State may specify, excluding a program that 
                        does not address a purpose specified in section 
                        401(a), but including a program that provides--
                                    ``(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
                                    ``(IV) job search or job readiness 
                                assistance.
                            ``(iii) Limitation.--Clause (i) may not be 
                        applied to a family for more than 3 consecutive 
                        months in any period of 24 consecutive months.
                    ``(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 attained 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; or
            ``(6) supervised community service.
    (d) Penalties Against Individuals.--Section 407(e) (42 U.S.C. 
607(e)) is amended--
            (1) in paragraph (1), in the matter that precedes 
        subparagraph (A)--
                    (A) by striking ``work'' and inserting 
                ``activities''; and
                    (B) by inserting ``and the family does not 
                otherwise engage in activities in accordance with the 
                self-sufficiency plan established for the family 
                pursuant to section 408(b) for the number of hours 
                required by the self-sufficiency plan,'' before ``the 
                State shall''; and
            (2) in paragraph (2)--
                    (A) in the matter that precedes subparagraph (A), 
                by striking ``work'' and inserting ``activities''; and
                    (B) in subparagraph (A), by striking ``work'' and 
                inserting ``activity''.
    (e) Conforming Amendments.--
            (1) Section 404(k)(1)(D) (42 U.S.C. 604(k)(1)(D)) is 
        amended by striking ``work activities (as defined in section 
        407(d)'' and inserting ``direct work activities''.
            (2) Section 407(b) (42 U.S.C. 607(b)) is amended by 
        striking paragraphs (4) and (5).
            (3) Section 407(f) (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) (42 U.S.C. 
        609(a)(14)) is amended by inserting ``or refusing to engage in 
        activities under a family self-sufficiency plan'' after 
        ``work''.

SEC. 111. MAINTENANCE OF EFFORT.

    (a) In General.--Section 409(a)(7) (42 U.S.C. 609(a)(7)) is 
amended--
            (1) in subparagraph (A) by striking ``fiscal year 1998, 
        1999, 2000, 2001, 2002, or 2003'' and inserting ``fiscal year 
        2003, 2004, 2005, 2006, 2007 or 2008''; and
            (2) in subparagraph (B)(ii)--
                    (A) by inserting ``preceding'' before ``fiscal 
                year''; and
                    (B) by striking ``for fiscal years 1997 through 
                2002,''.
    (b) State Spending on Promoting Healthy Marriage.--
            (1) In general.--Section 404 (42 U.S.C. 604) is amended by 
        adding at the end the following:
    ``(l) Marriage Promotion.--A State, territory, or tribal 
organization to which a grant is made under section 403(a)(2) may use a 
grant made to the State, territory, or tribal organization under any 
other provision of section 403 for marriage promotion activities, and 
the amount of any such grant so used shall be considered State funds 
for purposes of section 403(a)(2).''.
            (2) Federal tanf funds used for marriage promotion 
        disregarded for purposes of maintenance of effort 
        requirement.--Section 409(a)(7)(B)(i)(II) (42 U.S.C. 
        609(a)(7)(B)(i)(II)), as amended by section 103(c) of this Act, 
        is amended by adding at the end the following:
                                    ``(VI) Exclusion of federal tanf 
                                funds used for marriage promotion 
                                activities.--Such term does not include 
                                the amount of any grant made to the 
                                State under section 403 that is 
                                expended for a marriage promotion 
                                activity.''.

SEC. 112. PERFORMANCE IMPROVEMENT.

    (a) State Plans.--Section 402(a)(1) (42 U.S.C. 602(a)(1)) is 
amended--
            (1) in subparagraph (A)--
                    (A) by redesignating clauses (vi) and (vii) (as 
                added by section 103(a) of this Act) as clauses (vii) 
                and (viii); and
                    (B) by striking clause (v) and inserting the 
                following:
                            ``(v) Establish annual, specific numerical 
                        performance goals, measures, measurement 
                        methodology, and plans to improve outcomes with 
                        respect to each of the 4 program purposes 
                        described in section 401(a).
                            ``(vi) Describe any strategies the State 
                        may be undertaking to address--
                                    ``(I) employment retention and 
                                advancement for recipients of 
                                assistance under the program, including 
                                placement into high-demand jobs, 
                                consistent with the criteria used by 
                                the Secretary in establishing 
                                performance targets in regulations 
                                prescribed under section 403(a)(4)(B);
                                    ``(II) efforts to reduce teen 
                                pregnancy;
                                    ``(III) services for struggling and 
                                noncompliant families, and for clients 
                                with special problems; and
                                    ``(IV) program integration, 
                                including the extent to which 
                                employment and training services under 
                                the program are provided through the 
                                One-Stop Career Center System created 
                                under the Workforce Investment Act of 
                                1998, and the extent to which former 
                                recipients of such assistance have 
                                access to additional core, intensive, 
                                or training services funded through 
                                such Act.''; and
            (2) in subparagraph (B), by striking clause (iv) and 
        inserting the following:
                            ``(iv) The document shall describe 
                        strategies to engage faith-based organizations 
                        in the provision of services funded under this 
                        part and efforts related to section 104 of the 
                        Personal Responsibility and Work Opportunity 
                        Reconcilation Act of 1996.
                            ``(v) The document shall describe 
                        strategies to improve program management and 
                        performance.''.
    (b) Performance Measures.--Section 413 (42 U.S.C. 613) is amended 
by adding at the end the following:
    ``(k) Performance Improvement.--The Secretary, in consultation with 
the National Governors' Association and the American Public Human 
Services Association, shall develop uniform performance measures 
designed to assess the degree of effectiveness, and the degree of 
improvement, of State programs funded under this part in accomplishing 
the purposes of this part.''.
    (c) Annual Ranking of States.--Section 413(d)(1) (42 U.S.C. 
613(d)(1)) is amended by striking ``long-term private sector jobs'' and 
inserting ``private sector jobs, the success of the recipients in 
retaining employment, the ability of the recipients to increase their 
wages,''.

SEC. 113. DATA COLLECTION AND REPORTING.

    (a) Contents of Report.--Section 411(a)(1)(A) (42 U.S.C. 
611(a)(1)(A)) is amended--
            (1) in clause (vii), by inserting ``and minor parent'' 
        after ``of each adult'';
            (2) in clause (viii), by striking ``and educational 
        level'';
            (3) in clause (ix), by striking ``, and if the latter 2, 
        the amount received'';
            (4) in clause (x)--
                    (A) by striking ``each type of''; and
                    (B) by inserting before the period ``and, if 
                applicable, the reason for receipt of the assistance 
                for a total of more than 60 months'';
            (5) in clause (xi), by striking the subclauses and 
        inserting the following:
                                    ``(I) Subsidized private sector 
                                employment.
                                    ``(II) Unsubsidized employment.
                                    ``(III) Public sector employment, 
                                supervised work experience, or 
                                supervised community service.
                                    ``(IV) On-the-job training.
                                    ``(V) Job search and placement.
                                    ``(VI) Training.
                                    ``(VII) Education.
                                    ``(VIII) Other activities directed 
                                at the purposes of this part, as 
                                specified in the State plan submitted 
                                pursuant to section 402.'';
            (6) in clause (xii), by inserting ``and progress toward 
        universal engagement'' after ``participation rates'';
            (7) in clause (xiii), by striking ``type and'' before 
        ``amount of assistance'';
            (8) in clause (xvi), by striking subclause (II) and 
        redesignating subclauses (III) through (V) as subclauses (II) 
        through (IV), respectively; and
            (9) by adding at the end the following:
                            ``(xviii) The date the family first 
                        received assistance from the State program on 
                        the basis of the most recent application for 
                        such assistance.
                            ``(xix) Whether a self-sufficiency plan is 
                        established for the family in accordance with 
                        section 408(b).
                            ``(xx) With respect to any child in the 
                        family, the marital status of the parents or 
                        guardians of the child and whether the parents 
                        or guardians are living.''.
    (b) Use of Samples.--Section 411(a)(1)(B) (42 U.S.C. 611(a)(1)(B)) 
is amended--
            (1) in clause (i)--
                    (A) by striking ``a sample'' and inserting 
                ``samples''; and
                    (B) by inserting before the period ``, except that 
                the Secretary may designate core data elements that 
                must be reported on all families''; and
            (2) in clause (ii), by striking ``funded under this part'' 
        and inserting ``described in subparagraph (A)''.
    (c) Report on Families That Become Ineligible To Receive 
Assistance.--Section 411(a) (42 U.S.C. 611(a)) is amended--
            (1) by striking paragraph (5);
            (2) by redesignating paragraph (6) as paragraph (5); and
            (3) by inserting after paragraph (5) (as so redesignated) 
        the following:
            ``(6) Report on families that become ineligible to receive 
        assistance.--The report required by paragraph (1) for a fiscal 
        quarter shall include for each month in the quarter the number 
        of families and total number of individuals that, during the 
        month, became ineligible to receive assistance under the State 
        program funded under this part (broken down by the number of 
        families that become so ineligible due to earnings, changes in 
        family composition that result in increased earnings, 
        sanctions, time limits, or other specified reasons).''.
    (e) Regulations.--Section 411(a)(7) (42 U.S.C. 611(a)(7)) is 
amended--
            (1) by inserting ``and to collect the necessary data'' 
        before ``with respect to which reports'';
            (2) by striking ``subsection'' and inserting ``section''; 
        and
            (3) by striking ``in defining the data elements'' and all 
        that follows and inserting ``, the National Governors' 
        Association, the American Public Human Services Association, 
        the National Conference of State Legislators, and others in 
        defining the data elements.''.
    (f) Additional Reports by States.--Section 411 (42 U.S.C. 611) is 
amended--
            (1) by redesignating subsection (b) as subsection (e); and
            (2) by inserting after subsection (a) the following:
    ``(b) Annual Reports on Program Characteristics.--Not later than 90 
days after the end of each fiscal year, each eligible State shall 
submit to the Secretary a report on the characteristics of the State 
program funded under this part and other State programs funded with 
qualified State expenditures (as defined in section 409(a)(7)(B)(i)). 
The report shall include, with respect to each such program, the 
program name, a description of program activities, the program purpose, 
the program eligibility criteria, the sources of program funding, the 
number of program beneficiaries, sanction policies, and any program 
work requirements.
    ``(c) Monthly Reports on Caseload.--Not later than 3 months after 
the end of a calendar month that begins 1 year or more after the 
enactment of this subsection, each eligible State shall submit to the 
Secretary report on the number of families and total number of 
individuals receiving assistance in the calendar month under the State 
program funded under this part.
    ``(d) Annual Report on Performance Improvement.--Beginning with 
fiscal year 2004, not later than January 1 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 
performance goals and measures under the State program funded under 
this part with respect to each of the matters described in section 
402(a)(1)(A)(v).''.
    (g) Annual Reports to Congress by the Secretary.--Section 411(e), 
as so redesignated by subsection (f) of this section, is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``and each fiscal year thereafter'' and inserting ``and by July 
        1 of each fiscal year thereafter'';
            (2) in paragraph (2), by striking ``families applying for 
        assistance,'' and by striking the last comma; and
            (3) in paragraph (3), by inserting ``and other programs 
        funded with qualified State expenditures (as defined in section 
        409(a)(7)(B)(i))'' before the semicolon.

SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

    (a) Tribal Family Assistance Grant.--Section 412(a)(1) (42 U.S.C. 
612(a)(1)) is amended by striking ``1997, 1998, 1999, 2000, and 2001'' 
and inserting ``2003 through 2007''.
    (b) Grants for Indian Tribes That Received JOBS Funds.--Section 
412(a)(2) (42 U.S.C. 612(a)(2)) is amended by striking ``1997, 1998, 
1999, 2000, and 2001'' and inserting ``2003 through 2007''.

SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

    (a) Secretary's Fund for Research, Demonstrations, and Technical 
Assistance.--Section 413 (42 U.S.C. 613), as amended by section 112 of 
this Act, is further amended by adding at the end the following:
    ``(l) Funding for Research, Demonstrations, and Technical 
Assistance.--Out of any money in the Treasury of the United States not 
otherwise appropriated, there are appropriated $100,000,000 for each of 
fiscal years 2003 through 2007, which shall be available to the 
Secretary for the purpose of conducting and supporting research and 
demonstration projects by public or private entities, and providing 
technical assistance to States, Indian tribal organizations, and such 
other entities as the Secretary may specify that are receiving a grant 
under this part, which shall be expended primarily on activities 
described in section 403(a)(2)(B), and which shall be in addition to 
any other funds made available under this part.''.
    (b) Funding of Studies and Demonstrations.--Section 413(h) (42 
U.S.C. 613(h)) is amended by striking ``1997 through 2002'' and 
inserting ``2003 through 2007''.

SEC. 116. STUDY BY THE CENSUS BUREAU.

    Section 414(b) (42 U.S.C. 614(b)) is amended by striking ``1996,'' 
and all that follows through ``2002'' and inserting ``2003 through 
2007''.

SEC. 117. REPEAL OF WAIVER CONTINUATION AUTHORITY.

    Section 415 (42 U.S.C. 615) is repealed.

SEC. 118. DEFINITION OF ASSISTANCE.

    (a) In General.--Section 419 (42 U.S.C. 619) is amended by adding 
at the end the following:
            ``(6) Assistance.--
                    ``(A) In general.--The term `assistance' means 
                payment, by cash, voucher, or other means, to or for an 
                individual or family for the purpose of meeting a 
                subsistence need of the individual or family (including 
                food, clothing, shelter, and related items, but not 
                including costs of transportation or child care).
                    ``(B) Exception.--The term `assistance' does not 
                include a payment described in subparagraph (A) to or 
                for an individual or family on a short-term, 
                nonrecurring basis (as defined by the State in 
                accordance with regulations prescribed by the 
                Secretary).''.
    (b) Conforming Amendments.--
            (1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by 
        striking ``assistance'' and inserting ``aid''.
            (2) Section 404(f) (42 U.S.C. 604(f)) is amended by 
        striking ``assistance'' and inserting ``benefits or services''
            (3) Section 408(a)(5)(B)(i) (42 U.S.C. 608(a)(5)(B)(i)) is 
        amended in the heading by striking ``assistance'' and inserting 
        ``aid''.

SEC. 119. TECHNICAL CORRECTIONS.

    (a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is amended by inserting 
a comma after ``appropriate''.
    (b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. 611(a)(1)(A)(ii)(III)) 
is amended by striking the last close parenthesis.
    (c) Section 413(j)(2)(A) (42 U.S.C. 613(i)(2)(A)) is amended by 
striking ``section'' and inserting ``sections''.
    (d)(1) Section 413 (42 U.S.C. 613) is amended by striking 
subsection (g) and redesignating subsections (h) through (i) and 
subsections (k) and (l) (as added by sections 112(b) and 115(a) of this 
Act, respectively) as subsections (g) through (k), respectively.
    (2) Each of the following provisions is amended by striking 
``413(j)'' and inserting ``413(i)'':
            (A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C. 
        603(a)(5)(A)(ii)(III)).
            (B) Section 403(a)(5)(F) (42 U.S.C. 603(a)(5)(F)).
            (C) Section 403(a)(5)(G)(ii) (42 U.S.C. 603(a)(5)(G)(ii)).
            (D) Section 412(a)(3)(B)(iv) (42 U.S.C. 612(a)(3)(B)(iv)).

SEC. 120. FATHERHOOD PROGRAM.

    (a) Short Title.--This section may be cited as the ``Promotion and 
Support of Responsible Fatherhood and Healthy Marriage Act of 2002''.
    (b) Fatherhood Program.--Title IV (42 U.S.C. 601-619) is amended by 
inserting after part B the following:

                      ``PART C--FATHERHOOD PROGRAM

``SEC. 441. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds that there is substantial 
evidence strongly indicating the urgent need to promote and support 
involved, committed, and responsible fatherhood, and to encourage and 
support healthy marriages between parents raising children, including 
data demonstrating the following:
            ``(1) In approximately 90 percent of cases where a parent 
        is absent, that parent is the father.
            ``(2) By some estimates, 60 percent of children born in the 
        1990's will spend a significant portion of their childhood in a 
        home without a father.
            ``(3) Nearly 75 percent of children in single-parent homes 
        will experience poverty before they are 11 years old, compared 
        with only 20 percent of children in 2-parent families.
            ``(4) Low income is positively correlated with children's 
        difficulties with education, social adjustment, and 
        delinquency, and single-parent households constitute a 
        disproportionate share of low-income households.
            ``(5) Where families (whether intact or with a parent 
        absent) are living in poverty, a significant factor is the 
        father's lack of job skills.
            ``(6) Children raised in 2-parent married families, on 
        average, fare better as a group in key areas, including better 
        school performance, reduced rates of substance abuse, crime, 
        and delinquency, fewer health, emotional, and behavioral 
        problems, lower rates of teenage sexual activity, less risk of 
        abuse or neglect, and lower risk of teen suicide.
            ``(7) Committed and responsible fathering during infancy 
        and early childhood contributes to the development of emotional 
        security, curiosity, and math and verbal skills.
            ``(8) An estimated 24,000,000 children (33.5 percent) live 
        apart from their biological father.
            ``(9) A recent national survey indicates that of all 
        children under age 18 not living with their  biological father, 
29 percent had not seen their father even once in the last 12 months.
    ``(b) Purposes.--The purposes of this part are:
            ``(1) To provide for projects and activities by public 
        entities and by nonprofit community entities, including 
        religious organizations, designed to test promising approaches 
        to accomplishing the following objectives:
                    ``(A) Promoting responsible, caring, and effective 
                parenting through counseling, mentoring, and parenting 
                education, dissemination of educational materials and 
                information on parenting skills, encouragement of 
                positive father involvement, including the positive 
                involvement of nonresident fathers, and other methods.
                    ``(B) Enhancing the abilities and commitment of 
                unemployed or low-income fathers to provide material 
                support for their families and to avoid or leave 
                welfare programs by assisting them to take full 
                advantage of education, job training, and job search 
                programs, to improve work habits and work skills, to 
                secure career advancement by activities such as 
                outreach and information dissemination, coordination, 
                as appropriate, with employment services and job 
                training programs, including the One-Stop delivery 
                system established under title I of the Workforce 
                Investment Act of 1998, encouragement and support of 
                regular and timely payment of child support in 
                appropriate cases, and other methods.
                    ``(C) Improving fathers' ability to effectively 
                manage family business affairs by means such as 
                education, counseling, and mentoring in matters 
                including household management, budgeting, banking, and 
                handling of financial transactions, time management, 
                and home maintenance.
                    ``(D) Encouraging and supporting healthy marriages 
                and married fatherhood through such activities as 
                premarital education, including the use of premarital 
                inventories, marriage preparation programs, skills-
                based marriage education programs, marital therapy, 
                couples counseling, divorce education and reduction 
                programs, divorce mediation and counseling, 
                relationship skills enhancement programs, including 
                those designed to reduce child abuse and domestic 
                violence, and dissemination of information about the 
                benefits of marriage for both parents and children.
            ``(2) Through the projects and activities described in 
        paragraph (1), to improve outcomes for children with respect to 
        measures such as increased family income and economic security, 
        improved school performance, better health, improved emotional 
        and behavioral stability and social adjustment, and reduced 
        risk of delinquency, crime, substance abuse, child abuse and 
        neglect, teen sexual activity, and teen suicide.
            ``(3) To evaluate the effectiveness of various approaches 
        and to disseminate findings concerning outcomes and other 
        information in order to encourage and facilitate the 
        replication of effective approaches to accomplishing these 
        objectives.

``SEC. 442. DEFINITIONS.

    ``In this part, the terms `Indian tribe' and `tribal organization' 
have the meanings given them in subsections (e) and (l), respectively, 
of section 4 of the Indian Self-Determination and Education Assistance 
Act.

``SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.

    ``(a) In General.--The Secretary may make grants for fiscal years 
2003 through 2007 to public and nonprofit community entities, including 
religious organizations, and to Indian tribes and tribal organizations, 
for demonstration service projects and activities designed to test the 
effectiveness of various approaches to accomplish the objectives 
specified in section 441(b)(1).
    ``(b) Eligibility Criteria for Full Service Grants.--In order to be 
eligible for a grant under this section, except as specified in 
subsection (c), an entity shall submit an application to the Secretary 
containing the following:
            ``(1) Project description.--A statement including--
                    ``(A) a description of the project and how it will 
                be carried out, including the geographical area to be 
                covered and the number and characteristics of clients 
                to be served, and how it will address each of the 4 
                objectives specified in section 441(b)(1); and
                    ``(B) a description of the methods to be used by 
                the entity or its contractor to assess the extent to 
                which the project was successful in accomplishing its 
                specific objectives and the general objectives 
                specified in section 441(b)(1).
            ``(2) Experience and qualifications.--A demonstration of 
        ability to carry out the project, by means such as 
        demonstration of experience in successfully carrying out 
        projects of similar design and scope, and such other 
        information as the Secretary may find necessary to demonstrate 
        the entity's capacity to carry out the project, including the 
        entity's ability to provide the non-Federal share of project 
        resources.
            ``(3) Addressing child abuse and neglect and domestic 
        violence.--A description of how the entity will assess for the 
        presence of, and intervene to resolve, domestic violence and 
        child abuse and neglect, including how the entity will 
        coordinate with State and local child protective service and 
        domestic violence programs.
            ``(4) Addressing concerns relating to substance abuse and 
        sexual activity.--A commitment to make available to each 
        individual participating in the project education about 
        alcohol, tobacco, and other drugs, and about the health risks 
        associated with abusing such substances, and information about 
        diseases and conditions transmitted through substance abuse and 
        sexual contact, including HIV/AIDS, and to coordinate with 
        providers of services addressing such problems, as appropriate.
            ``(5) Coordination with specified programs.--An undertaking 
        to coordinate, as appropriate, with State and local entities 
        responsible for the programs under parts A, B, and D of this 
        title, including programs under title I of the Workforce 
        Investment Act of 1998 (including the One-Stop delivery 
        system), and such other programs as the Secretary may require.
            ``(6) Records, reports, and audits.--An agreement to 
        maintain such records, make such reports, and cooperate with 
        such reviews or audits as the Secretary may find necessary for 
        purposes of oversight of project activities and expenditures.
            ``(7) Self-initiated evaluation.--If the entity elects to 
        contract for independent evaluation of the project (part or all 
        of the cost of which may be paid for using grant funds), a 
        commitment to submit to the Secretary a copy of the evaluation 
        report within 30 days after completion of the report and not 
        more than 1 year after completion of the project.
            ``(8) Cooperation with secretary's oversight and 
        evaluation.--An agreement to cooperate with the Secretary's 
        evaluation of projects assisted under this section, by means 
        including random assignment of clients to service recipient and 
        control groups, if determined by the Secretary to be 
        appropriate, and affording the Secretary access to  the project 
and to project-related records and documents, staff, and clients.
    ``(c) Eligibility Criteria for Limited Purpose Grants.--In order to 
be eligible for a grant under this section in an amount under $25,000 
per fiscal year, an entity shall submit an application to the Secretary 
containing the following:
            ``(1) Project description.--A description of the project 
        and how it will be carried out, including the number and 
        characteristics of clients to be served, the proposed duration 
        of the project, and how it will address at least 1 of the 4 
        objectives specified in section 441(b)(1).
            ``(2) Qualifications.--Such information as the Secretary 
        may require as to the capacity of the entity to carry out the 
        project, including any previous experience with similar 
        activities.
            ``(3) Coordination with related programs.--As required by 
        the Secretary in appropriate cases, an undertaking to 
        coordinate and cooperate with State and local entities 
        responsible for specific programs relating to the objectives of 
        the project including, as appropriate, jobs programs and 
        programs serving children and families.
            ``(4) Records, reports, and audits.--An agreement to 
        maintain such records, make such reports, and cooperate with 
        such reviews or audits as the Secretary may find necessary for 
        purposes of oversight of project activities and expenditures.
            ``(5) Cooperation with secretary's oversight and 
        evaluation.--An agreement to cooperate with the Secretary's 
        evaluation of projects assisted under this section, by means 
        including affording the Secretary access to the project and to 
        project-related records and documents, staff, and clients.
    ``(d) Considerations in Awarding Grants.--
            ``(1) Diversity of projects.--In awarding grants under this 
        section, the Secretary shall seek to achieve a balance among 
        entities of differing sizes, entities in differing geographic 
        areas, entities in urban and in rural areas, and entities 
        employing differing methods of achieving the purposes of this 
        section.
            ``(2) Preference for projects serving low-income fathers.--
        In awarding grants under this section, the Secretary may give 
        preference to applications for projects in which a majority of 
        the clients to be served are low-income fathers.
    ``(e) Federal Share.--
            ``(1) In general.--Grants for a project under this section 
        for a fiscal year shall be available for a share of the cost of 
        such project in such fiscal year equal to--
                    ``(A) up to 80 percent (or up to 90 percent, if the 
                entity demonstrates to the Secretary's satisfaction 
                circumstances limiting the entity's ability to secure 
                non-Federal resources) in the case of a project under 
                subsection (b); and
                    ``(B) up to 100 percent, in the case of a project 
                under subsection (c).
            ``(2) Non-federal share.--The non-Federal share may be in 
        cash or in kind. In determining the amount of the non-Federal 
        share, the Secretary may attribute fair market value to goods, 
        services, and facilities contributed from non-Federal sources.

``SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION PROJECTS.

    ``(a) In General.--The Secretary may make grants under this section 
for fiscal years 2003 through 2007 to eligible entities (as specified 
in subsection (b)) for 2 multicity, multistate projects demonstrating 
approaches to achieving the objectives specified in section 441(b)(1). 
One of the projects shall test the use of married couples to deliver 
program services.
    ``(b) Eligible Entities.--An entity eligible for a grant under this 
section must be a national nonprofit fatherhood promotion organization 
that meets the following requirements:
            ``(1) Experience with fatherhood programs.--The 
        organization must have substantial experience in designing and 
        successfully conducting programs that meet the purposes 
        described in section 441.
            ``(2) Experience with multicity, multistate programs and 
        government coordination.--The organization must have experience 
        in simultaneously conducting such programs in more than 1 major 
        metropolitan area in more than 1 State and in coordinating such 
        programs, where appropriate, with State and local government 
        agencies and private, nonprofit agencies (including community-
        based and religious organizations), including State or local 
        agencies responsible for child support enforcement and 
        workforce development.
    ``(c) Application Requirements.--In order to be eligible for a 
grant under this section, an entity must submit to the Secretary an 
application that includes the following:
            ``(1) Qualifications.--
                    ``(A) Eligible entity.--A demonstration that the 
                entity meets the requirements of subsection (b).
                    ``(B) Other.--Such other information as the 
                Secretary may find necessary to demonstrate the 
                entity's capacity to carry out the project, including 
                the entity's ability to provide the non-Federal share 
                of project resources.
            ``(2) Project description.--A description of and 
        commitments concerning the project design, including the 
        following:
                    ``(A) In general.--A detailed description of the 
                proposed project design and how it will be carried out, 
                which shall--
                            ``(i) provide for the project to be 
                        conducted in at least 3 major metropolitan 
                        areas;
                            ``(ii) state how it will address each of 
                        the 4 objectives specified in section 
                        441(b)(1);
                            ``(iii) demonstrate that there is a 
                        sufficient number of potential clients to allow 
                        for the random selection of individuals to 
                        participate in the project and for comparisons 
                        with appropriate control groups composed of 
                        individuals who have not participated in such 
                        projects; and
                            ``(iv) demonstrate that the project is 
                        designed to direct a majority of project 
                        resources to activities serving low-income 
                        fathers (but the project need not make services 
                        available on a means-tested basis).
                    ``(B) Oversight, evaluation, and adjustment 
                component.--An agreement that the entity--
                            ``(i) in consultation with the evaluator 
                        selected pursuant to section 445, and as 
                        required by the Secretary, will modify the 
                        project design, initially and (if necessary) 
                        subsequently throughout the duration of the 
                        project, in order to facilitate ongoing and 
                        final oversight and evaluation of project 
                        operation and outcomes (by means including, to 
                        the maximum extent feasible, random assignment 
                        of clients to service recipient and control 
                        groups), and to provide  for mid-course 
adjustments in project design indicated by interim evaluations;
                            ``(ii) will submit to the Secretary revised 
                        descriptions of the project design as modified 
                        in accordance with clause (i); and
                            ``(iii) will cooperate fully with the 
                        Secretary's ongoing oversight and ongoing and 
                        final evaluation of the project, by means 
                        including affording the Secretary access to the 
                        project and to project-related records and 
                        documents, staff, and clients.
            ``(3) Addressing child abuse and neglect and domestic 
        violence.--A description of how the entity will assess for the 
        presence of, and intervene to resolve, domestic violence and 
        child abuse and neglect, including how the entity will 
        coordinate with State and local child protective service and 
        domestic violence programs.
            ``(4) Addressing concerns relating to substance abuse and 
        sexual activity.--A commitment to make available to each 
        individual participating in the project education about 
        alcohol, tobacco, and other drugs, and about the health risks 
        associated with abusing such substances, and information about 
        diseases and conditions transmitted through substance abuse and 
        sexual contact, including HIV/AIDS, and to coordinate with 
        providers of services addressing such problems, as appropriate.
            ``(5) Coordination with specified programs.--An undertaking 
        to coordinate, as appropriate, with State and local entities 
        responsible for the programs funded under parts A, B, and D of 
        this title, programs under title I of the Workforce Investment 
        Act of 1998 (including the One-Stop delivery system), and such 
        other programs as the Secretary may require.
            ``(6) Records, reports, and audits.--An agreement to 
        maintain such records, make such reports, and cooperate with 
        such reviews or audits (in addition to those required under the 
        preceding provisions of paragraph (2)) as the Secretary may 
        find necessary for purposes of oversight of project activities 
        and expenditures.
    ``(d) Federal Share.--
            ``(1) In general.--Grants for a project under this section 
        for a fiscal year shall be available for up to 80 percent of 
        the cost of such project in such fiscal year.
            ``(2) Non-federal share.--The non-Federal share may be in 
        cash or in kind. In determining the amount of the non-Federal 
        share, the Secretary may attribute fair market value to goods, 
        services, and facilities contributed from non-Federal sources.

``SEC. 445. EVALUATION.

    ``(a) In General.--The Secretary, directly or by contract or 
cooperative agreement, shall evaluate the effectiveness of service 
projects funded under sections 443 and 444 from the standpoint of the 
purposes specified in section 441(b)(1).
    ``(b) Evaluation Methodology.--Evaluations under this section 
shall--
            ``(1) include, to the maximum extent feasible, random 
        assignment of clients to service delivery and control groups 
        and other appropriate comparisons of groups of individuals 
        receiving and not receiving services;
            ``(2) describe and measure the effectiveness of the 
        projects in achieving their specific project goals; and
            ``(3) describe and assess, as appropriate, the impact of 
        such projects on marriage, parenting, domestic violence, child 
        abuse and neglect, money management, employment and earnings, 
        payment of child support, and child well-being, health, and 
        education.
    ``(c) Evaluation Reports.--The Secretary shall publish the 
following reports on the results of the evaluation:
            ``(1) An implementation evaluation report covering the 
        first 24 months of the activities under this part to be 
        completed by 36 months after initiation of such activities.
            ``(2) A final report on the evaluation to be completed by 
        September 30, 2010.

``SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.

    ``The Secretary is authorized, by grant, contract, or cooperative 
agreement, to carry out projects and activities of national 
significance relating to fatherhood promotion, including--
            ``(1) Collection and dissemination of information.--
        Assisting States, communities, and private entities, including 
        religious organizations, in efforts to promote and support 
        marriage and responsible fatherhood by collecting, evaluating, 
        developing, and making available (through the Internet and by 
        other means) to all interested parties information regarding 
        approaches to accomplishing the objectives specified in section 
        441(b)(1).
            ``(2) Media campaign.--Developing, promoting, and 
        distributing to interested States, local governments, public 
        agencies, and private nonprofit organizations, including 
        charitable and religious organizations, a media campaign that 
        promotes and encourages involved, committed, and responsible 
        fatherhood and married fatherhood.
            ``(3) Technical assistance.--Providing technical 
        assistance, including consultation and training, to public and 
        private entities, including community organizations and faith-
        based organizations, in the implementation of local fatherhood 
        promotion programs.
            ``(4) Research.--Conducting research related to the 
        purposes of this part.

``SEC. 447. NONDISCRIMINATION.

    ``The projects and activities assisted under this part shall be 
available on the same basis to all fathers and expectant fathers able 
to benefit from such projects and activities, including married and 
unmarried fathers and custodial and noncustodial fathers, with 
particular attention to low-income fathers, and to mothers and 
expectant mothers on the same basis as to fathers.

``SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RESERVATION FOR CERTAIN 
              PURPOSE.

    ``(a) Authorization.--There are authorized to be appropriated 
$20,000,000 for each of fiscal years 2003 through 2007 to carry out the 
provisions of this part.
    ``(b) Reservation.--Of the amount appropriated under this section 
for each fiscal year, not more than 15 percent shall be available for 
the costs of the multicity, multistate demonstration projects under 
section 444, evaluations under section 445, and projects of national 
significance under section 446.''.

                          TITLE II--CHILD CARE

SEC. 201. ENTITLEMENT FUNDING.

    Section 418(a)(3)(F) (42 U.S.C. 618(a)(3)(F)) is amended to read as 
follows:
                    ``(F) $2,717,000,000 for each of fiscal years 2002 
                through 2007.''.

                        TITLE III--CHILD SUPPORT

SEC. 301. FEDERAL MATCHING FUNDS FOR LIMITED PASS THROUGH OF CHILD 
              SUPPORT PAYMENTS TO FAMILIES RECEIVING TANF.

    (a) In General.--Section 457(a) (42 U.S.C. 657(a)) is amended--
            (1) in paragraph (1)(A), by inserting ``subject to 
        paragraph (7)'' before the semicolon; and
            (2) by adding at the end the following:
            ``(7) Federal matching funds for limited pass through of 
        child support payments to families receiving tanf.--
        Notwithstanding paragraph (1), a State shall not be required to 
        pay to the Federal Government the Federal share of an amount 
        collected during a month on behalf of a family that is a 
        recipient of assistance under the State program funded under 
        part A, to the extent that--
                    ``(A) the State distributes the amount to the 
                family;
                    ``(B) the total of the amounts so distributed to 
                the family during the month--
                            ``(i) exceeds the amount (if any) that, as 
                        of December 31, 2001, was required under State 
                        law to be distributed to a family under 
                        paragraph (1)(B); and
                            ``(ii) does not exceed the greater of--
                                    ``(I) $100; or
                                    ``(II) $50 plus the amount 
                                described in clause (i); and
                    ``(C) the amount is disregarded in determining the 
                amount and type of assistance provided to the family 
                under the State program funded under part A.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to amounts distributed on or after October 1, 2004.

SEC. 302. STATE OPTION TO PASS THROUGH ALL CHILD SUPPORT PAYMENTS TO 
              FAMILIES THAT FORMERLY RECEIVED TANF.

    (a) In General.--Section 457(a) (42 U.S.C. 657(a)), as amended by 
section 301 of this Act, is amended--
            (1) in paragraph (2)(B), in the matter preceding clause 
        (i), by inserting ``, except as provided in paragraph (8),'' 
        after ``shall''; and
            (2) by adding at the end the following:
            ``(8) State option to pass through all child support 
        payments to families that formerly received tanf.--In lieu of 
        applying paragraph (2) to any family described in paragraph 
        (2), a State may distribute to the family all of any amount so 
        collected during a month on behalf of the family.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to amounts distributed on or after October 1, 2004.

SEC. 303. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS FOR 
              FAMILIES RECEIVING TANF.

    (a) In General.--Section 466(a)(10)(A)(i) (42 U.S.C. 
666(a)(10)(A)(i)) is amended--
            (1) by striking ``parent, or,'' and inserting ``parent 
        or''; and
            (2) by striking ``upon the request of the State agency 
        under the State plan or of either parent,''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 304. MANDATORY FEE FOR SUCCESSFUL CHILD SUPPORT COLLECTION FOR 
              FAMILY THAT HAS NEVER RECEIVED TANF.

    (a) In General.--Section 454(6)(B) (42 U.S.C. 654(6)(B)) is 
amended--
            (1) by inserting ``(i) except as provided in clause (ii),'' 
        after ``(B)'';
            (2) by redesignating clauses (i) and (ii) as subclauses (I) 
        and (II), respectively; and
            (3) by adding at the end the following new clause:
            ``(ii) in the case of an individual who has never received 
        assistance under a State program funded under part A, the State 
        shall impose an annual fee of $25 for furnishing the services, 
        which shall be paid by the individual applying for the 
        services, or recovered from the absent parent, or paid by the 
        State out of its own funds (the payment of which from State 
        funds shall not be considered as an administrative cost of the 
        State for the operation of the plan, and shall be considered 
        income to the program);''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 305. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

    Not later than 6 months after the date of the enactment of this 
Act, the Secretary of Health and Human Services shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report on the procedures that the 
States use generally to locate custodial parents for whom child support 
has been collected but not yet distributed due to a change in address. 
The report shall include an estimate of the total amount of such 
undistributed child support and the average length of time it takes for 
such child support to be distributed. The Secretary shall include in 
the report recommendations as to whether additional procedures should 
be established at the State or Federal level to expedite the payment of 
undistributed child support.

SEC. 306. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF 
              UNEMPLOYMENT COMPENSATION PROGRAMS.

    (a) In General.--Section 453(j) (42 U.S.C. 653(j)) is amended by 
adding at the end the following:
            ``(7) Information comparisons and disclosure to assist in 
        administration of unemployment compensation programs.--
                    ``(A) In general.--If a State agency responsible 
                for the administration of an unemployment compensation 
                program under Federal or State law transmits to the 
                Secretary the name and social security account number 
                of an individual, the Secretary shall, if the 
                information in the National Directory of New Hires 
                indicates that the individual may be employed, disclose 
                to the State agency the name, address, and employer 
                identification number of any putative employer of the 
                individual, subject to this paragraph.
                    ``(B) Condition on disclosure.--The Secretary shall 
                make a disclosure under subparagraph (A) only to the 
                extent that the Secretary determines that the 
                disclosure would not interfere with the effective 
                operation of the program under this part.
                    ``(C) Use of information.--A State agency may use 
                information provided under this paragraph only for 
                purposes of administering a program referred to in 
                subparagraph (A).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 307. IMMIGRATION PROVISIONS.

    (a) Nonimmigrant Aliens Ineligible To Receive Visas and Excluded 
From Admission for Nonpayment of Child Support.--
            (1) In general.--Section 212(a)(10) of the Immigration and 
        Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at 
        the end the following:
                    ``(F) Nonpayment of child support.--
                            ``(i) In general.--Any nonimmigrant alien 
                        is inadmissible who is legally obligated under 
                        a judgment, decree, or order to pay child 
                        support (as defined in section 459(i) of the 
                        Social Security Act), and whose failure to pay 
                        such child support has resulted in an arrearage 
                        exceeding  $2,500, until child support payments 
under the judgment, decree, or order are satisfied or the nonimmigrant 
alien is in compliance with an approved payment agreement.
                            ``(ii) Waiver authorized.--The Attorney 
                        General may waive the application of clause (i) 
                        in the case of an alien, if the Attorney 
                        General--
                                    ``(I) has received a request for 
                                the waiver from the court or 
                                administrative agency having 
                                jurisdiction over the judgment, decree, 
                                or order obligating the alien to pay 
                                child support that is referred to in 
                                such clause; or
                                    ``(II) determines that there are 
                                prevailing humanitarian or public 
                                interest concerns.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect 180 days after the date of the enactment of 
        this Act.
    (b) Authorization To Serve Legal Process in Child Support Cases on 
Certain Arriving Aliens.--
            (1) In general.--Section 235(d) of the Immigration and 
        Nationality Act (8 U.S.C. 1225(d)) is amended by adding at the 
        end the following:
            ``(5) Authority to serve process in child support cases.--
                    ``(A) In general.--To the extent consistent with 
                State law, immigration officers are authorized to serve 
                on any alien who is an applicant for admission to the 
                United States legal process with respect to any action 
                to enforce or establish a legal obligation of an 
                individual to pay child support (as defined in section 
                459(i) of the Social Security Act).
                    ``(B) Definition.--For purposes of subparagraph 
                (A), the term `legal process' means any writ, order, 
                summons or other similar process, which is issued by--
                            ``(i) a court or an administrative agency 
                        of competent jurisdiction in any State, 
                        territory, or possession of the United States; 
                        or
                            ``(ii) an authorized official pursuant to 
                        an order of such a court or agency or pursuant 
                        to State or local law.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to aliens applying for admission to the United 
        States on or after 180 days after the date of the enactment of 
        this Act.
    (c) Authorization To Share Child Support Enforcement Information To 
Enforce Immigration and Naturalization Law.--
            (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
        652) is amended by adding at the end the following:
    ``(m) If the Secretary receives a certification by a State agency, 
in accordance with section 454(34), that an individual who is a 
nonimmigrant alien (as defined in section 101(a)(15) of the Immigration 
and Nationality Act) owes arrearages of child support in an amount 
exceeding $2,500, the Secretary may, at the request of the State 
agency, the Secretary of State, or the Attorney General, or on the 
Secretary's own initiative, provide such certification to the Secretary 
of State and the Attorney General information in order to enable them 
to carry out their responsibilities under sections 212(a)(10) and 
235(d) of such Act.''.
            (2) State agency responsibility.--Section 454 (42 U.S.C. 
        654) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (32);
                    (B) by striking the period at the end of paragraph 
                (33) and inserting ``; and''; and
                    (C) by inserting after paragraph (33) the 
                following:
            ``(34) provide that the State agency will have in effect a 
        procedure for certifying to the Secretary, in such format and 
        accompanied by such supporting documentation as the Secretary 
        may require, determinations that nonimmigrant aliens owe 
        arrearages of child support in an amount exceeding $2,500.''.
            (3) Effective date.--
                    (A) In general.--The amendments made by this 
                subsection shall take effect on October 1, 2004, and, 
                except as provided in subparagraph (B) of this 
                paragraph, the amendments made by paragraph (2) shall 
                apply to payments under part D of title IV of the 
                Social Security Act for calendar quarters beginning on 
                or after such date.
                    (B) Delay permitted if state legislation 
                required.--In the case of a State plan approved under 
                section 454 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 requirement imposed by the amendments made 
                by paragraph (2) of this subsection, the State plan 
                shall not be regarded as failing to comply with the 
                requirements of such section 454 solely on the basis of 
                the failure of the plan to meet such additional 
                requirement 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 
                preceding 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.

SEC. 308. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING 
              PASSPORT DENIAL.

    (a) In General.--Section 452(k) (42 U.S.C. 652(k)) is amended by 
striking ``$5,000'' and inserting ``$2,500''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 309. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD 
              SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

    (a) In General.--Section 464 (42 U.S.C. 664) is amended--
            (1) in subsection (a)(2)(A), by striking ``(as that term is 
        defined for purposes of this paragraph under subsection (c))''; 
        and
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) Except as provided in 
                        paragraph (2), as used in'' and inserting 
                        ``In''; and
                            (ii) by inserting ``(whether or not a 
                        minor)'' after ``a child'' each place it 
                        appears; and
                    (B) by striking paragraphs (2) and (3).
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 310. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
              CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT 
              OBLIGATIONS.

    (a) In General.--Section 459(h) (42 U.S.C. 659(h)) is amended--
            (1) in paragraph (1)(A)(ii)(V), by striking all that 
        follows ``Armed Forces'' and inserting a semicolon; and
            (2) by adding at the end the following:
            ``(3) Limitations with respect to compensation paid to 
        veterans for service-connected disabilities.--Notwithstanding 
        any other provision of this section:
                    ``(A) Compensation described in paragraph 
                (1)(A)(ii)(V) shall not be subject to withholding 
                pursuant to this section--
                            ``(i) for payment of alimony; or
                            ``(ii) for payment of child support if the 
                        individual is fewer than 60 days in arrears in 
                        payment of the support.
                    ``(B) Not more than 50 percent of any payment of 
                compensation described in paragraph (1)(A)(ii)(V) may 
                be withheld pursuant to this section.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 311. IMPROVING FEDERAL DEBT COLLECTION PRACTICES.

    Section 3716(h)(3) of title 31, United States Code, is amended to 
read as follows:
            ``(3) In applying this subsection with respect to any debt 
        owed to a State, other than past due support being enforced by 
        the State, subsection (c)(3)(A) shall not apply.''.

SEC. 312. MAINTENANCE OF TECHNICAL ASSISTANCE FUNDING.

    Section 452(j) (42 U.S.C. 652(j)) is amended by inserting ``, or 
the amount appropriated under this paragraph for fiscal year 2002, 
whichever is greater,'' before ``which shall be available''.

SEC. 313. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE FUNDING.

    Section 453(o) (42 U.S.C. 653(o)) is amended--
            (1) in the 1st sentence, by inserting ``, or the amount 
        appropriated under this paragraph for fiscal year 2002, 
        whichever is greater,'' before ``which shall be available''; 
        and
            (2) in the 2nd sentence, by striking ``for each of fiscal 
        years 1997 through 2001''.

                        TITLE IV--CHILD WELFARE

SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEMONSTRATION PROJECTS.

    Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 402. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS.

    Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by striking 
``not more than 10''.

SEC. 403. ELIMINATION OF LIMITATION ON NUMBER OF STATES THAT MAY BE 
              GRANTED WAIVERS TO CONDUCT DEMONSTRATION PROJECTS ON SAME 
              TOPIC.

    Section 1130 (42 U.S.C. 1320a-9) is amended by adding at the end 
the following:
    ``(h) No Limit on Number of States That May Be Granted Waivers To 
Conduct Same or Similar Demonstration Projects.--The Secretary shall 
not refuse to grant a waiver to a State under this section on the 
grounds that a purpose of the waiver or of the demonstration project 
for which the waiver is necessary would be the same as or similar to a 
purpose of another waiver or project that is or may be conducted under 
this section.''.

SEC. 404. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS THAT MAY BE 
              GRANTED TO A SINGLE STATE FOR DEMONSTRATION PROJECTS.

    Section 1130 (42 U.S.C. 1320a-9) is further amended by adding at 
the end the following:
    ``(i) No Limit on Number of Waivers Granted To, or Demonstration 
Projects That May Be Conducted By, a Single State.--The Secretary shall 
not impose any limit on the number of waivers that may be granted to a 
State, or the number of demonstration projects that a State may be 
authorized to conduct, under this section.''.

SEC. 405. STREAMLINED PROCESS FOR CONSIDERATION OF AMENDMENTS TO AND 
              EXTENSIONS OF DEMONSTRATION PROJECTS REQUIRING WAIVERS.

    Section 1130 (42 U.S.C. 1320a-9) is further amended by adding at 
the end the following:
    ``(j) Streamlined Process for Consideration of Amendments and 
Extensions.--The Secretary shall develop a streamlined process for 
consideration of amendments and extensions proposed by States to 
demonstration projects conducted under this section.''.

SEC. 406. AVAILABILITY OF REPORTS.

    Section 1130 (42 U.S.C. 1320a-9) is further amended by adding at 
the end the following:
    ``(k) Availability of Reports.--The Secretary shall make available 
to any State or other interested party any report provided to the 
Secretary under subsection (f)(2), and any evaluation or report made by 
the Secretary with respect to a demonstration project conducted under  
this section, with a focus on information that may promote best 
practices and program improvements.''.

SEC. 407. TECHNICAL CORRECTION.

    Section 1130(b)(1) (42 U.S.C. 1320a-9(b)(1)) is amended by striking 
``422(b)(9)'' and inserting ``422(b)(10)''.

                 TITLE V--SUPPLEMENTAL SECURITY INCOME

SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY 
              DETERMINATIONS.

    Section 1633 (42 U.S.C. 1383b) is amended by adding at the end the 
following:
    ``(e)(1) The Commissioner of Social Security shall review 
determinations, made by State agencies pursuant to subsection (a) in 
connection with applications for benefits under this title on the basis 
of blindness or disability, that individuals who have attained 18 years 
of age are blind or disabled as of a specified onset date. The 
Commissioner of Social Security shall review such a determination 
before any action is taken to implement the determination.
    ``(2)(A) In carrying out paragraph (1), the Commissioner of Social 
Security shall review--
            ``(i) at least 15 percent of all determinations referred to 
        in paragraph (1) that are made in fiscal year 2003;
            ``(ii) at least 30 percent of all such determinations that 
        are made in fiscal year 2004; and
            ``(iii) at least 50 percent of all such determinations that 
        are made in fiscal year 2005 or thereafter.
    ``(B) In carrying out subparagraph (A), the Commissioner of Social 
Security shall, to the extent feasible, select for review the 
determinations which the Commissioner of Social Security identifies as 
being the most likely to be incorrect.''.

                  TITLE VI--BROADENED WAIVER AUTHORITY

SEC. 601. STATE PROGRAM DEMONSTRATION PROJECTS.

    (a) Purpose.--The purpose of this section is to enable States to 
conduct demonstration projects involving individual programs, or 
integrating multiple public assistance, employment security, and other 
programs, for the purpose of supporting working families, helping 
families escape welfare dependency, or helping parents build stronger 
families, using innovative approaches to strengthen service systems and 
provide more coordinated and effective service delivery.
    (b) Definitions.--In this section:
            (1) Administering secretary.--The term ``administering 
        Secretary'' means, with respect to a program administered by a 
        qualified agency, the head of the agency.
            (2) Qualified agency.--The term ``qualified agency'' 
        means--
                    (A) the Department of Health and Human Services; or
                    (B) the Department of Labor.
    (c) Application Requirements.--A State desiring to conduct a 
demonstration project under this section involving 1 or more programs 
administered by 1 or more qualified agencies shall submit to the 
administering Secretary of each such program an application that 
contains the following:
            (1) Programs included.--A statement identifying each 
        program to be included in the project, and describing how the 
        purposes of each such program will be achieved by the project.
            (2) Population served.--A statement identifying the 
        population to be served by the project and specifying the 
        eligibility criteria to be used.
            (3) Description and justification.--A detailed description 
        of the proposed project, including--
                    (A) a description of how the project is expected to 
                improve or enhance achievement of the purposes of the 
                program or programs involved, from the standpoint of 
                quality, of cost-effectiveness, or of both; and
                    (B) a description of the performance objectives for 
                the project, including any proposed modifications to 
                the performance measures and reporting requirements 
                used in the program or programs involved.
            (4) Waivers requested.--A description of the waivers 
        requested of statutory and regulatory requirements under the 
        program or programs involved, and a justification of the need 
        for each waiver.
            (5) Cost neutrality.--Such information and assurances as 
        necessary to establish to the satisfaction of each concerned 
        administering Secretary that the proposed project is reasonably 
        expected to meet the requirements of subsection (d)(3).
            (6) Evaluation and reports.--An assurance that the State 
        will conduct ongoing and final evaluations of the project, and 
        make interim and final reports to each concerned administering 
        Secretary, at such times and in such manner as each such 
        Secretary may require.
            (7) Other information and assurances.--Such other 
        information and assurances as each concerned administering 
        Secretary may require.
    (d) Approval of State Applications.--
            (1) In general.--The administering Secretary with respect 
        to a program that is identified in an application submitted 
        pursuant to subsection (c) and that is proposed to be included 
        in a demonstration project to be conducted under this section 
        may approve the project and waive any requirement applicable to 
        the program, to the extent consistent with this section and 
        necessary and appropriate for the conduct of the project, if 
        the Secretary determines that the project proposed in the 
        application--
                    (A) has a reasonable likelihood of achieving the 
                objectives of the program or programs involved; and
                    (B) may reasonably be expected to meet the cost 
                neutrality requirements of paragraph (3).
            (2) Agreement of each administering secretary required for 
        proposals involving more than 1 qualified agency.--
                    (A) In general.--A State may not conduct a 
                demonstration project under this section unless each 
                administering Secretary with respect to any program 
                proposed to be included in the project has approved the 
                application to conduct the project.
                    (B) Agreement with respect to funding and 
                implementation.--Before approving a State proposal 
                under this section, each administering Secretary shall 
                have in place an agreement with respect to the payment 
                of funds and responsibilities required of the Secretary 
                with respect to the project.
                    (C) 90-day approval deadline.--An application to 
                conduct a demonstration project under this section is 
                considered approved for purposes of this section 
                unless, within 90 days after an administering Secretary 
                with respect to a program proposed to be included in 
                the project has received the application, the 
                administering Secretary, in writing, notifies the State 
                that submitted the application that the application is 
                disapproved (and the reasons for disapproval) or that 
                specified additional information is needed.
            (3) Cost-neutrality requirements.--
                    (A) Limit on total costs.--An application to 
                conduct a demonstration project under this section 
                shall not be approved unless it can reasonably be 
                expected that, for each fiscal year in which the 
                project is in effect, the total costs of the project 
                will not exceed the estimated combined total Federal 
                cost for the fiscal year of the program or programs 
                included in the project if the program or programs had 
                not been included in the project.
                    (B) Limit on federal payments.--The total amount of 
                payments that may be made to a State for a fiscal year 
                with respect to a demonstration project conducted under 
                this section that includes 1 or more programs in the 
                jurisdiction of an administering Secretary shall not 
                exceed the estimated amount of the payments that the 
                Secretary would have made to the State with respect to 
                the program or programs if not included in the project.
            (4) Program excluded.--Notwithstanding any other provision 
        of this section, the program of grants to States for medical 
        assistance under title XIX of the Social Security Act may not 
        be included in a demonstration project under this section.
    (e) Duration of Projects.--A demonstration project under this 
section may be approved for a term of not more than 5 years, and may be 
renewed for 1 or more additional terms of not more than 5 years.
    (f) Reports to Congress.--Each administering Secretary shall 
provide annually to the Congress a report concerning demonstration 
projects approved under this section, including--
            (1) the projects approved for each participating State;
            (2) the number of waivers granted under this section, and 
        the specific statutory provisions waived; and
            (3) recommendations for modification of programs based on 
        outcomes of the projects.

                       TITLE VII--EFFECTIVE DATE

SEC. 701. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided, the amendments made 
by this Act shall take effect on October 1, 2002.
    (b) Extension of Effective Date for State Law Amendment.--In the 
case of a State plan under this part which the Secretary determines 
requires State legislation in order for the plan to meet the additional 
requirements imposed by the amendments made by this Act, the effective 
date of the amendments shall be 3 months after the first day of the 
first calendar quarter beginning after the close of the first regular 
session of the State legislature that begins after the date of the 
enactment of this Act. For purposes of the preceding sentence, in the 
case of a State that has a 2-year legislative session, each year of the 
session shall be considered to be a separate regular session of the 
State legislature.
                                 <all>