[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4092 Reported in House (RH)]

                                                 Union Calendar No. 267
107th CONGRESS
  2d Session
                                H. R. 4092

                      [Report No. 107-452, Part I]

    To enhance the opportunities of needy families to achieve self-
   sufficiency and access quality child care, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 9, 2002

  Mr. McKeon (for himself, Mr. Boehner, Mr. Petri, Mr. Hoekstra, Mr. 
   Greenwood, Mr. Upton, Mr. Tancredo, Mr. DeMint, Mr. Isakson, Mr. 
  Keller, and Mr. Culberson) introduced the following bill; which was 
   referred to the Committee on Education and the Workforce, and in 
    addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

                              May 10, 2002

Additional sponsors: Mr. Payne, Mr. Gilman, Mr. Rohrabacher, Mr. Wolf, 
   Ms. Ros-Lehtinen, Mr. Pitts, Mr. Tancredo, Mr. Dingell, Mr. Diaz-
 Balart, Mr. Hilliard, Mr. Blumenauer, Mrs. Napolitano, Mrs. Clayton, 
 Mr. Meeks of New York, Mr. Berman, Mr. Sanders, Mr. King, Mr. McHugh, 
    Ms. Hart, Ms. Eddie Bernice Johnson of Texas, Ms. McKinney, Mr. 
Hoeffel, Mr. Issa, Mr. Roemer, Mr. Hyde, Mr. Lantos, Mr. Houghton, Mr. 
 Bereuter, Mr. Waxman, Mr. Clement, Mr. Isakson, Mr. Hall of Ohio, Ms. 
Lee, Ms. Roybal-Allard, Mr. McNulty, Mr. Mica, Mr. Young of Alaska, Mr. 
 Walsh, Mr. Castle, Ms. Millender-McDonald, Mrs. Davis of California, 
   Mr. Greenwood, Mrs. Morella, Mr. Moran of Virginia, Ms. Brown of 
Florida, Mrs. Meek of Florida, Mr. Smith of Washington, Ms. Eshoo, Mr. 
Kirk, Mr. Nethercutt, Mr. Wexler, Ms. Woolsey, Mr. Camp, Mr. Wilson of 
 South Carolina, Ms. Dunn, Mr. Bishop, Mr. Tom Davis of Virginia, Mr. 
   Shays, Mr. Shaw, Mr. Schaffer, Mr. Jefferson, Ms. Slaughter, Mr. 
   Bentsen, Mr. Oberstar, Mr. Udall of Colorado, Mr. McDermott, Mr. 
 Thompson of Mississippi, Mr. Dicks, Mr. Kildee, Mr. Luther, Mr. Price 
 of North Carolina, Mr. Rodriguez, Ms. Carson of Indiana, Mr. Pastor, 
Mr. Rangel, Mrs. Mink of Hawaii, Mr. Filner, Mr. Brown of Ohio, and Mr. 
                              Faleomavaega

                              May 10, 2002

  Reported from the Committee on Education and the Workforce with an 
                               amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                              May 10, 2002

 Referral to the Committee on Ways and Means extended for a period not 
                        later than May 10, 2002

                              May 10, 2002

The Committee on Ways and Means discharged; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed
 [For text of introduced bill, see copy of bill as introduced on April 
                                9, 2002]

_______________________________________________________________________

                                 A BILL


 
    To enhance the opportunities of needy families to achieve self-
   sufficiency and access quality child care, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Working Toward 
Independence Act of 2002''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title.

                         TITLE I--TANF PROGRAM

Sec. 101. Work participation requirements.
Sec. 102. Universal engagement policy.
Sec. 103. Work-related performance objectives.
Sec. 104. Bonus to reward employment achievement.
Sec. 105. Report on integration.
Sec. 106. GAO study.
Sec. 107. Purpose of work participation requirements.
Sec. 108. State TANF programs made mandatory partners with one-stop 
                            employment training centers.
Sec. 109. Longitudinal study of TANF applicants and recipients to 
                            determine the factors that contribute to 
                            the ability of people to comply with TANF 
                            work requirements.

TITLE II--AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT 
                                OF 1990

Sec. 201. Short title.
Sec. 202. Goals.
Sec. 203. Authorization of appropriations.
Sec. 204. Application and plan.
Sec. 205. Activities to improve the quality of child care.
Sec. 206. Definitions.

                 TITLE III--BROADENED WAIVER AUTHORITY

Sec. 301. State program demonstration projects.

                       TITLE VII--EFFECTIVE DATE

Sec. 401. Effective date.

                         TITLE I--TANF PROGRAM

SEC. 101. WORK PARTICIPATION REQUIREMENTS.

    (a) In General.--Section 407 of the Social Security Act (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 is a recipient of 
                                assistance under the State program; or
                                    ``(II) on a case-by-case basis, a 
                                family in which the youngest child has 
                                not attained 12 months of age.
                            ``(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 is 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) Revision of Caseload Reduction Credit.--Section 
407(b)(3)(A)(ii) of such Act (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;
                                    ``(III) if the fiscal year is 
                                fiscal year 2005, fiscal year 2001; or
                                    ``(IV) if the fiscal year is fiscal 
                                year 2006 or any succeeding fiscal 
                                year, the then 4th preceding fiscal 
                                year.''.
    (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 activities 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 activities specified by the State that are not 
                direct work activities 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--
                                    ``(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.--
                                    ``(I) General rule.--Except as 
                                provided in subclause (II), clause (i) 
                                may not be applied to a family for more 
                                than 3 months in any period of 24 
                                consecutive months.
                                    ``(II) Special rule applicable to 
                                education and training.--A State may, 
                                on a case-by-case basis, apply clause 
                                (i) to a work-eligible individual so 
                                that participation by the individual in 
                                education or training, if needed to 
                                permit the individual to complete a 
                                certificate program or other work-
related education or training directed effectively at enabling the 
individual to fill a known job need in a local area, may be considered 
countable hours with respect to the family of the individual for not 
more than 4 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, including 
        entrepreneurship or micro-enterprise activities; or
            ``(6) supervised community service.''.
    (d) Penalties Against Individuals.--Section 407(e)(1) (42 U.S.C. 
607(e)(1)) is amended to read as follows:
            ``(1) In general.--Except as provided in paragraph (2), if 
        an individual in a family receiving assistance under a State 
        program funded under this part fails to engage in activities 
        required in accordance with this section, or other activities 
        required by the State under the program, 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), the State shall--
                    ``(A) if the failure is partial or persists for not 
                more than 1 month--
                            ``(i) reduce the amount of assistance 
                        otherwise payable to the family pro rata (or 
                        more, at the option of the State) with respect 
                        to any period during a month in which the 
                        failure occurs; or
                            ``(ii) terminate all assistance to the 
                        family, subject to such good cause exceptions 
                        as the State may establish; or
                    ``(B) if the failure is total and persists for at 
                least 2 consecutive months, terminate the payment to 
                the family, under all State programs, of any cash 
                benefit that is a qualified State expenditure (as 
                defined in section 409(a)(7)(B)(i)) for at least 1 
                month and thereafter until the State determines that 
                the individual is in full compliance with all 
                requirements imposed under the State program funded 
                under this part, subject to such good cause exceptions 
                as the State may establish.''.
    (e) Conforming Amendments.--
            (1) Section 404(k)(1)(D) of such Act (42 U.S.C. 
        604(k)(1)(D)) is amended by striking ``work activities'' and 
        inserting ``direct work activities''.
            (2) Section 407(b) of such Act (42 U.S.C. 607(b)) is 
        amended by striking paragraphs (4) and (5).
            (3) Section 407(f) of such Act (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) of such Act (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''.
    (f) Sense of the Congress.--It is the sense of the Congress that a 
State welfare-to-work program should include a mentorship program.

SEC. 102. UNIVERSAL ENGAGEMENT POLICY.

    (a) Modification of State Plan Requirements.--Section 402(a)(1)(A) 
of the Social Security Act (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 and 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.--Section 408(b) 
of such Act (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) assess, in the manner deemed appropriate by 
                the State, the employability, skills, job readiness, 
                barriers to employment, and any additional factors 
                hindering the achievement of self-sufficiency of each 
                work-eligible individual (as defined in section 
                407(b)(2)(C)), including whether a member of a family 
                receiving assistance under the State program funded 
                under this part has been a victim of domestic or sexual 
                violence, and may refer any such family member for 
                services as deemed appropriate by the State;
                    ``(B) establish for each family receiving 
                assistance under the State program funded under this 
                part, in consultation with each work-eligible 
                individual (as so defined), 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;
                    ``(C) require, at a minimum, each member of the 
                family who is a work eligible individual (as so 
defined) to participate in activities in accordance with the employment 
or other goals established in the self-sufficiency plan;
                    ``(D) provide a description of the services, 
                programs, and supports that are determined appropriate 
                by the State to meet employment or other goals;
                    ``(E) set forth the obligations of the recipient;
                    ``(F) monitor the participation of such family 
                members in the planned activities and the progress of 
                the family toward self-sufficiency;
                    ``(G) regularly review the effectiveness of the 
                self-sufficiency plan and the activities in which the 
                individuals are engaged; and
                    ``(H) upon such a review, revise the self-
                sufficiency plan and activities as the State deems 
                appropriate.
        Nothing in this part shall preclude a State from requiring 
        participation in work and any other activities the State deems 
        appropriate for helping families achieve self-sufficiency and 
        improving child well-being.
            ``(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 180 
                days after October 1, 2002.
            ``(3) State discretion.--A State shall have sole 
        discretion, consistent with section 407, to define and design 
        activities for families for purposes of this subsection, and to 
        develop methods for monitoring and reviewing progress pursuant 
        to this subsection.
            ``(4) Condition.--A State may use funds provided under this 
        part to provide free or reduced price transportation on any bus 
        or van which is used under the State program funded under this 
        part.''.
    (c) Penalty for Failure To Establish Family Self-Sufficiency 
Plan.--Section 409(a)(3) of such Act (42 U.S.C. 609(a)(3)) is amended--
            (1) in the paragraph heading, by inserting ``or establish 
        family self-sufficiency plan'' after ``rates''; and
            (2) in subparagraph (A), by inserting ``or 408(b)'' after 
        ``407(a)''.

SEC. 103. WORK-RELATED PERFORMANCE OBJECTIVES.

    (a) State Plan Modifications.--Section 402(a)(1) of the Social 
Security Act (42 U.S.C. 602(a)(1)) is amended--
            (1) in subparagraph (A), by adding at the end the 
        following:
                            ``(vii) The document shall--
                                    ``(I) describe how the State will 
                                pursue ending dependence of needy 
                                parents on government benefits by 
                                promoting job preparation and work;
                                    ``(II) include specific numerical 
                                and measurable performance objectives 
                                for accomplishing the purpose so 
                                described, which shall include 
                                objectives consistent with the criteria 
                                used by the Secretary in establishing 
                                performance targets under section 
                                403(a)(4)(B) if available; and
                                    ``(III) describe the methodology 
                                that the State will use to measure 
                                State performance in relation to each 
                                such objective.
                            ``(viii) The document shall describe any 
                        strategies and programs the State may be 
                        undertaking to address--
                                    ``(I) employment retention and 
                                advancement for recipients of 
                                assistance under the State program 
                                funded under this part, including 
                                placement into high-demand jobs 
                                identified using labor market 
                                information available through the One-
                                Stop delivery system created under the 
                                Workforce Investment Act of 1998;
                                    ``(II) services for struggling and 
                                noncompliant families and clients with 
                                special problems; and
                                    ``(III) program integration, 
                                including the extent to which TANF 
                                employment and training services are 
                                provided through the One-Stop delivery 
                                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).
    (b) Report on Annual Achievement of Performance Goals.--Section 411 
of such Act (42 U.S.C. 611) is amended by adding at the end the 
following:
    ``(c) Annual Report on Achievement of Performance Goals.--Beginning 
with fiscal year 2004, not later than 3 months after the end 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 objectives referred to in section 402(a)(1)(A)(vii), 
using the measurement methodology described in such section.''.
    (c) Annual Ranking of States.--Section 413(d)(1) of such Act (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,''.
    (d) Performance Improvement.--Section 413 of such Act (42 U.S.C. 
613) is amended by adding at the end the following:
    ``(k) Performance Improvement.--The Secretary, in consultation with 
States, 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 work-related 
purposes of this part.''.

SEC. 104. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.

    (a) In General.--Section 403(a)(4) of the Social Security Act (42 
U.S.C. 603(a)(4)) is amended to read as follows:
            ``(4) Bonus to reward employment achievement.--
                    ``(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 States and the Secretary 
                        of Labor, 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.
                    ``(G) Sense of the congress.--It is the sense of 
                the Congress that in developing the bonus to reward 
                employment achievement under this paragraph, the 
                Secretary and States should consult with the Secretary 
                of Labor so that measures for employment achievement 
                under State programs funded under this part are 
                consistent with the core indicators of performance 
                which States report under subclauses (I) through (III) 
                of section 136(b)(2)(A)(i) of the Workforce Investment 
                Act of 1998.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 105. REPORT ON INTEGRATION.

    Not later than 6 months after the date of the enactment of this 
Act, the Secretary of Health and Human Services and the Secretary of 
Labor shall jointly submit a report to the Congress describing changes 
needed to the definitions, performance measures, and reporting 
requirements in the Workforce Investment Act of 1998 and part A of 
title IV of the Social Security Act, and, at the discretion of either 
Secretary, any other program administered by the respective Secretary, 
to allow greater integration between the welfare and workforce 
development systems.

SEC. 106. GAO STUDY.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to determine the combined effect of the phase-out rates 
for Federal programs and policies which provide support to low-income 
families and individuals as they move from welfare to work, including 
those funded under title I of the Workforce Investment Act of 1998, the 
Child Care and Development Block Grant Act of 1990, the special 
supplemental nutrition program for women, infants, and children under 
section 17 of the Child Nutrition Act of 1966, the Richard B. Russell 
National School Lunch Act, the Head Start Act, and the Low-Income Home 
Energy Assistance Act of 1981, at all earning levels up to $35,000 per 
year for at least 5 States, including Wisconsin and California, and any 
potential disincentives the combined phase-out rates create for 
families to achieve independence.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this section, the Comptroller General shall submit a report to 
Congress containing the results of the study conducted under this 
section and, as appropriate, any recommendations consistent with the 
results.

SEC. 107. PURPOSE OF WORK PARTICIPATION REQUIREMENTS.

    (a) In General.--Section 407 of the Social Security Act (42 U.S.C. 
607), as amended by section 101 of this Act, is amended--
            (1) by redesignating subsections (a) through (i) as 
        subsections (b) through (j), respectively, and inserting before 
        subsection (b) (as so redesignated) the following:
    ``(a) Purpose.--The purpose of this section is to end dependence of 
needy families on government benefits, reduce poverty, and help achieve 
long-term income security by promoting job preparation and work.''; and
            (2) in subsection (c) (as so redesignated)--
                    (A) in paragraph (1), by striking ``(a)'' and 
                inserting ``(b)''; and
                    (B) in paragraph (2)(A)(i), by striking ``(c)'' and 
                inserting ``(d)''; and
            (3) in paragraph (1) of subsection (d) (as so 
        redesignated), strike ``(b)(2)'' and insert ``(c)(2)''.
    (b) Conforming Amendments.--
            (1) Section 402(a)(1)(A)(ii) of such Act (42 U.S.C. 
        602(a)(1)(A)(ii)) is amended by striking ``407(e)(2)'' and 
        inserting ``407(f)(2)''.
            (2) Section 404(k)(1)(D) of such Act (42 U.S.C. 
        604(k)(1)(D)) is amended by striking ``407(d)'' and inserting 
        ``407(e)''.
            (3) Section 408(b)(1)(A) of such Act (42 U.S.C. 
        608(b)(1)(A)), as amended by section 102(b) of this Act, is 
        amended by striking ``407(b)(2)(C)'' and inserting 
        ``407(c)(2)(C)''.
            (4) Section 409(a) of such Act (42 U.S.C. 609(a)) is 
        amended in each of paragraphs (3)(A) and (7)(B)(ii), by 
        striking ``407(a)'' and inserting ``407(b)''.
            (5) Section 409(a)(11)(A) of such Act (42 U.S.C. 
        609(a)(11)(A)) is amended by striking ``407(e)(2)'' and 
        inserting ``407(f)(2)''.
            (6) Section 409(a)(14)(A) of such Act (42 U.S.C. 
        609(a)(14)(A)) is amended by striking ``407(e)'' and inserting 
        ``407(f)''.
            (7) Section 411(a)(4) of such Act (42 U.S.C. 611(a)(4)) is 
        amended by striking ``407(d)'' and inserting ``407(e)''.
            (8) Section 411(b) of such Act (42 U.S.C. 611(b)) is 
        amended by striking ``407(a)'' and inserting ``407(b)''.
            (9) Section 412(c)(3) of such Act (42 U.S.C. 612(c)(3)) is 
        amended by striking ``407(e)'' and inserting ``407(f)''.
            (10) Section 412(g)(2) of such Act (42 U.S.C. 612(g)(2)) is 
        amended by striking ``407(a)'' and inserting ``407(b)''.
            (11) Section 466(a)(15)(B) of such Act (42 U.S.C. 
        666(a)(15)(B)) is amended by striking ``407(d)'' and inserting 
        ``407(e)''.

SEC. 108. STATE TANF PROGRAMS MADE MANDATORY PARTNERS WITH ONE-STOP 
              EMPLOYMENT TRAINING CENTERS.

    Section 408 of the Social Security Act (42 U.S.C. 608) is amended 
by adding at the end the following:
    ``(h) State TANF Programs Made Mandatory Partners With One-Stop 
Employment Training Centers.--For purposes of section 121(b) of the 
Workforce Investment Act of 1998, a State program funded under part A 
of title IV of the Social Security Act shall be considered a program 
referred to in paragraph (1)(B) of such section.''.

SEC. 109. LONGITUDINAL STUDY OF TANF APPLICANTS AND RECIPIENTS TO 
              DETERMINE THE FACTORS THAT CONTRIBUTE TO THE ABILITY OF 
              PEOPLE TO COMPLY WITH TANF WORK REQUIREMENTS.

    Section 413 of the Social Security Act (42 U.S.C. 613), as amended 
by section 103(d) of this Act, is amended by adding at the end the 
following:
    ``(l) Longitudinal Study of TANF Applicants and Recipients To 
Determine the Factors That Contribute to the Ability of People To 
Comply With TANF Work Requirements.--
            ``(1) In general.--The Secretary, through grant or 
        contract, shall conduct a longitudinal study of a 
        representative sample of families that receive, and families 
        that apply for, assistance from a State program funded under 
        this part or under a program funded with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i)).
            ``(2) Requirements.--The study conducted under this 
        subsection shall follow families that leave such a program, 
        those that receive assistance throughout the study period, and 
        those diverted from such a program. The study shall gather 
        information on--
                    ``(A) family and adult demographics;
                    ``(B) family income and child support; and
                    ``(C) factors that contribute to the ability of 
                people to comply with work requirements and achieve 
                long-term self-sufficiency.''.

TITLE II--AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT 
                                OF 1990

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Caring for Children Act of 2002''.

SEC. 202. GOALS.

    (a) Goals.--Section 658A(b) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9801 note) is amended--
            (1) in paragraph (3) by striking ``encourage'' and 
        inserting ``assist'',
            (2) by amending paragraph (4) to read as follows:
            ``(4) to assist State to provide child care to low-income 
        parents;'',
            (3) by redesignating paragraph (5) as paragraph (7), and
            (4) by inserting after paragraph (4) the following:
            ``(5) to encourage States to improve the quality of child 
        care available to families;
            ``(6) to promote school readiness by encouraging the 
        exposure of young children in child care to nurturing 
        environments and developmentally-appropriate activities, 
        including activities to foster early cognitive and literacy 
        development; and''.
    (b) Conforming Amendment.--Section 658E(c)(3)(B) of the Child Care 
and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(3)(B)) is 
amended by striking ``through (5)'' and inserting ``through (7)''.

SEC. 203. AUTHORIZATION OF APPROPRIATIONS.

    Section 658B of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858) is amended--
            (1) by striking ``is'' and inserting ``are'', and
            (2) by striking ``$1,000,000,000 for each of the fiscal 
        years 1996 through 2002'' and inserting ``$2,300,000,000 for 
        fiscal year 2003 and such sums as may be necessary for fiscal 
        years 2004, 2005, 2006, and 2007''.

SEC. 204. APPLICATION AND PLAN.

    Section 658E(c)(2) of the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858C(c)(2)) is amended--
            (1) by amending subparagraph (D) to read as follows:
                    ``(D) Consumer and child care provider education 
                information.--Certify that the State will collect and 
                disseminate, through resource and referral services and 
                other means as determined by the State, to parents of 
                eligible children, child care providers, and the 
                general public, information regarding--
                            ``(i) the promotion of informed child care 
                        choices, including information about the 
                        quality and availability of child care 
                        services;
                            ``(ii) research and best practices on 
                        children's development, including early 
                        cognitive development;
                            ``(iii) the availability of assistance to 
                        obtain child care services; and
                            ``(iv) other programs for which families 
                        that receive child care services for which 
                        financial assistance is provided under this 
                        subchapter may be eligible, including the food 
                        stamp program, the WIC program under section 17 
                        of the Child Nutrition Act of 1966, the child 
                        and adult care food program under section 17 of 
                        the Richard B. Russell National School Lunch 
                        Act, and the medicaid and CHIP programs under 
                        titles XIX and XXI of the Social Security 
                        Act.'', and
            (2) by inserting after subparagraph (H) the following:
                    ``(I) Coordination with other early child care 
                services and early childhood education programs.--
                Demonstrate how the State is coordinating child care 
                services provided under this subchapter with Head 
                Start, Early Reading First, Even Start, State pre-
                kindergarten programs, and other early childhood 
                education programs to expand accessibility to and 
                continuity of care and early education without 
                displacing services provided by the current early care 
                and education delivery system.
                    ``(J) Public-private partnerships.--Demonstrate how 
                the State encourages partnerships with private and 
                other public entities to leverage existing service 
                delivery systems of early childhood education and 
                increase the supply and quality of child care services.
                    ``(K) Child care service quality.--
                            ``(i) Certification.--For each fiscal year 
                        after fiscal year 2003, certify that during the 
                        then preceding fiscal year the State was in 
                        compliance with section 658G and describe how 
                        funds were used to comply with such section 
                        during such preceding fiscal year.
                            ``(ii) Strategy.--For each fiscal year 
                        after fiscal year 2003, contain an outline of 
                        the strategy the State will implement during 
                        such fiscal year for which the State plan is 
                        submitted, to address the quality of child care 
                        services in child care settings that provide 
                        services for which assistance is made available 
                        under this subchapter, and include in such 
                        strategy--
                                    ``(I) a statement specifying how 
                                the State will address the activities 
                                described in paragraphs (1), (2), and 
                                (3) of section 658G;
                                    ``(II) a description of 
                                quantifiable, objective measures for 
                                evaluating the quality of child care 
                                services separately with respect to the 
                                activities listed in each of such 
                                paragraphs that the State will use to 
                                evaluate its progress in improving the 
                                quality of such child care services;
                                    ``(III) a list of State-developed 
                                child care service quality targets for 
                                such fiscal year quantified on the 
                                basis of such measures; and
                                    ``(IV) for each fiscal year after 
                                fiscal year 2003, a report on the 
                                progress made to achieve such targets 
                                during the then preceding fiscal year.
                            ``(iii) Rule of construction.--Nothing in 
                        this subparagraph shall be construed to require 
                        that the State apply measures for evaluating 
                        quality to specific types of child care 
                        providers.
                    ``(L) Access to care for certain populations.--
                Demonstrate how the State is addressing the child care 
                needs of parents eligible for child care services for 
                which financial assistance is provided under this 
                subchapter who have children with special needs, work 
                nontraditional hours, or require child care services 
                for infants or toddlers.''.

SEC. 205. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

    Section 658G of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858e) is amended to read as follows:

``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE SERVICES.

    ``A State that receives funds to carry out this subchapter for a 
fiscal year, shall use not less than 6 percent of the amount of such 
funds for activities provided through resource and referral services or 
other means, that are designed to improve the quality of child care 
services for which financial assistance is made available under this 
subchapter. Such activities include--
            ``(1) programs that provide training, education, and other 
        professional development activities to enhance the skills of 
        the child care workforce, including training opportunities for 
        caregivers in informal care settings;
            ``(2) activities within child care settings to enhance 
        early learning for young children, to promote early literacy, 
        and to foster school readiness;
            ``(3) initiatives to increase the retention and 
        compensation of child care providers, including tiered 
        reimbursement rates for providers that meet quality standards 
        as defined by the State; or
            ``(4) other activities deemed by the State to improve the 
        quality of child care services provided in such State.''.

SEC. 206. DEFINITIONS.

    Section 658P(4)(B) of the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858N(4)(B)) is amended by striking ``85 percent 
of the State median income'' and inserting ``income levels as 
established by the State, prioritized by need,''.

                 TITLE III--BROADENED WAIVER AUTHORITY

SEC. 301. PROGRAM INTEGRATION DEMONSTRATION PROJECTS.

    (a) Purpose.--The purpose of this section is to establish a program 
of demonstration projects in a State or portion of a State to integrate 
multiple public assistance, workforce development, and other programs, 
for the purpose of supporting working individuals and families, helping 
families escape welfare dependency, promoting child well-being, or 
helping 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 qualified program, the 
        head of the Federal agency responsible for administering the 
        program.
            (2) Qualified program.--The term ``qualified program'' 
        means--
                    (A) a demonstration project authorized under 
                section 505 of the Family Support Act of 1988;
                    (B) activities funded under the Wagner-Peyser Act;
                    (C) activities funded under the Adult Education and 
                Family Literacy Act; or
                    (D) activities funded under the Child Care and 
                Development Block Grant Act of 1990;
    (c) Application Requirements.--The head of a State or sub-State 
entity administering 2 or more qualified programs proposed to be 
included in a demonstration project under this section shall (or, if 
the project is proposed to include qualified programs administered by 2 
or more such entities, the heads of the administering entities (each of 
whom shall be considered an applicant for purposes of this section) 
shall jointly) submit to the administering Secretary of each such 
program an application that contains the following:
            (1) Programs included.--A statement identifying each 
        qualified 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 project, including--
                    (A) a description of how the project is expected to 
                improve or enhance achievement of the purposes of the 
                programs to be included in the project, 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 programs.
            (4) Waivers requested.--A description of the statutory and 
        regulatory requirements with respect to which a waiver is 
        requested in order to carry out the project, and a 
        justification of the need for each such waiver.
            (5) Cost neutrality.--Such information and assurances as 
        necessary to establish to the satisfaction of the administering 
        Secretary, in consultation with the Director of the Office of 
        Management and Budget, that the proposed project is reasonably 
        expected to meet the applicable cost neutrality requirements of 
        subsection (d)(4).
            (6) Evaluation and reports.--An assurance that the 
        applicant will conduct ongoing and final evaluations of the 
        project, and make interim and final reports to the 
        administering Secretary, at such times and in such manner as 
        the administering Secretary may require.
            (7) Other information and assurances.--Such other 
        information and assurances as the administering Secretary may 
        require.
    (d) Approval of Applications.--
            (1) In general.--The administering Secretary with respect 
        to a qualified program that is identified in an application 
        submitted pursuant to subsection (c) may approve the 
        application and, except as provided in paragraph (2), waive any 
        requirement applicable to the program, to the extent consistent 
        with this section and necessary and appropriate for the conduct 
        of the demonstration project proposed in the application, if 
        the administering Secretary determines that the project--
                    (A) has a reasonable likelihood of achieving the 
                objectives of the programs to be included in the 
                project;
                    (B) may reasonably be expected to meet the 
                applicable cost neutrality requirements of paragraph 
                (4), as determined by the Director of the Office of 
                Management and Budget; and
                    (C) integrates 2 or more qualified programs.
            (2) Provisions excluded from waiver authority.--A waiver 
        shall not be granted under paragraph (1) of this subsection 
        with respect to--
                    (A) any provision of law relating to--
                            (i) civil rights or prohibition of 
                        discrimination;
                            (ii) purposes or goals of any program;
                            (iii) maintenance of effort requirements;
                            (iv) health or safety;
                            (v) labor standards under the Fair Labor 
                        Standards Act of 1938; or
                            (vi) environmental protection;
                    (B) section 241(a) of the Adult Education and 
                Family Literacy Act; or
                    (C) any requirement that a State pass through to a 
                sub-State entity part or all of an amount paid to the 
                State.
            (3) Agreement of each administering secretary required.--
                    (A) In general.--An applicant 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 an application to 
                conduct a demonstration project under this section, an 
                administering Secretary shall have in place an 
                agreement with the applicant with respect to the 
                payment of funds and responsibilities required of the 
                administering Secretary with respect to the project.
            (4) Cost-neutrality requirements.--
                    (A) General rule.--Notwithstanding any other 
                provision of law (except subparagraph (B)), the total 
                of the amounts that may be paid by the Federal 
                Government for a fiscal year with respect to the 
                programs affected by a demonstration project conducted 
                under this section shall not exceed the estimated total 
                amount that the Federal Government would have paid for 
                the fiscal year with respect to the programs if the 
                project had not been conducted, as determined by the 
                Director of the Office of Management and Budget.
                    (B) Special rule.--If an applicant submits to the 
                Director of the Office of Management and Budget a 
                request to apply the rules of this subparagraph to the 
                programs affected by a demonstration project proposed 
                in the application submitted pursuant to this section, 
                during such period of not more than 5 consecutive 
                fiscal years in which the project is in effect, and the 
                Director determines, on the basis of supporting 
                information provided by the applicant, to grant the 
                request, then, notwithstanding any other provision of 
                law, the total of the amounts that may be paid by the 
                Federal Government for the period with respect to the 
                programs shall not exceed the estimated total amount 
                that the Federal Government would have paid for the 
                period with respect to the programs if the project had 
                not been conducted.
    (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 applicant;
            (2) the number of waivers granted under this section, and 
        the specific statutory provisions waived; and
            (3) how well each project for which a waiver is granted is 
        improving or enhancing program achievement from the standpoint 
        of quality, cost-effectiveness, or both;
            (4) how well each project for which a waiver is granted is 
        meeting the performance objectives specified in subsection 
        (c)(3)(B);
            (5) how each project for which a waiver is granted is 
        conforming with the cost-neutrality requirements of subsection 
        (d)(4); and
            (6) to the extent the administering Secretary deems 
        appropriate, recommendations for modification of programs based 
        on outcomes of the projects.

                        TITLE IV--EFFECTIVE DATE

SEC. 401. 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 part A of title IV of the Social Security 
Act 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 
imposing the additional requirements 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.




                                                 Union Calendar No. 267

107th CONGRESS

  2d Session

                               H. R. 4092

                      [Report No. 107-452, Part I]

_______________________________________________________________________

                                 A BILL

    To enhance the opportunities of needy families to achieve self-
   sufficiency and access quality child care, and for other purposes.

_______________________________________________________________________

                              May 10, 2002

  Reported from the Committee on Education and the Workforce with an 
                               amendment

                              May 10, 2002

 Referral to the Committee on Ways and Means extended for a period not 
                        later than May 10, 2002

                              May 10, 2002

The Committee on Ways and Means discharged; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed