[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2524 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2524

 To amend part A of title IV of the Social Security Act to reauthorize 
   the temporary assistance to needy families program, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 15 (legislative day, May 9), 2002

   Mr. Bayh (for himself, Mr. Carper, Mr. Graham, Mrs. Clinton, Mr. 
 Lieberman, Mr. Miller, Mrs. Carnahan, Mr. Nelson of Nebraska, and Mr. 
Nelson of Florida) introduced the following bill; which was read twice 
                and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend part A of title IV of the Social Security Act to reauthorize 
   the temporary assistance to needy families program, 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; AMENDMENTS TO SOCIAL 
              SECURITY ACT.

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

Sec. 1. Short title; table of contents; amendments to Social Security 
                            Act.
Sec. 2. Findings.
                        TITLE I--REQUIRING WORK

Sec. 101. Increase in work participation rates.
Sec. 102. Elimination of separate work participation rate for 2-parent 
                            families.
Sec. 103. Credits for purposes of determining monthly work 
                            participation rates.
Sec. 104. Child support collection credit.
Sec. 105. Phaseout of caseload reduction credit.
Sec. 106. Removal of recipients who qualify for supplemental security 
                            income benefits from work participation 
                            rate calculation for entire year.
Sec. 107. 40-hour work week.
Sec. 108. Increase in mandatory funding for child care.
Sec. 109. State option for participation requirement exemption for 
                            individuals overcoming barriers to work.
Sec. 110. Competitive grants for public-private partnerships for 
                            educational opportunities for career 
                            advancement; State option to establish 
                            parents as scholars program.
Sec. 111. Transitional jobs programs.
Sec. 112. Ensuring TANF funds are not used to displace public 
                            employees; application of workplace laws to 
                            welfare recipients.
                    TITLE II--STRENGTHENING FAMILIES

                   Subtitle A--Responsible Fatherhood

Sec. 201. Block grants to States to encourage media campaigns.
Sec. 202. Responsible fatherhood block grant.
Sec. 203. National clearinghouse for responsible fatherhood programs.
Sec. 204. Policy reviews and demonstration projects to coordinate 
                            services for low-income, noncustodial 
                            parents.
        Subtitle B--Additional Provisions To Strengthen Families

Sec. 211. Ban on imposition of stricter eligibility criteria for 2-
                            parent families.
Sec. 212. Noncustodial parent employment grant program.
              Subtitle C--Teen Pregnancy Prevention Grants

Sec. 221. Teen pregnancy prevention grants.
Sec. 222. Teen pregnancy prevention resource center.
Sec. 223. Establishing national goals to prevent teen pregnancy.
        Subtitle D--Child Support Distribution to Families First

                Chapter 1--Distribution of Child Support

Sec. 231. Distribution of child support collected by States on behalf 
                            of children receiving certain welfare 
                            benefits.
   Chapter 2--Demonstrations of Expanded Information and Enforcement

Sec. 241. Guidelines for involvement of public non-IV-D child support 
                            enforcement agencies in child support 
                            enforcement.
Sec. 242. Demonstrations involving establishment and enforcement of 
                            child support obligations by public non-IV-
                            D child support enforcement agencies.
Sec. 243. GAO report to Congress on private child support enforcement 
                            agencies.
Sec. 244. Effective date.
                    Chapter 3--Expanded Enforcement

Sec. 251. Decrease in amount of child support arrearage triggering 
                            passport denial.
Sec. 252. Use of tax refund intercept program to collect past-due child 
                            support on behalf of children who are not 
                            minors.
Sec. 253. Garnishment of compensation paid to veterans for service-
                            connected disabilities in order to enforce 
                            child support obligations.
                        Chapter 4--Miscellaneous

Sec. 261. Report on undistributed child support payments.
Sec. 262. Use of new hire information to assist in administration of 
                            unemployment compensation programs.
Sec. 263. Immigration provisions.
Sec. 264. Increase in payment rate to States for expenditures for 
                            short-term training of staff of certain 
                            child welfare agencies.
Sec. 265. Correction of errors in conforming amendments in the welfare-
                            to-work and child support amendments of 
                            1999.
Sec. 266. Technical correction to changed dates for abstinence 
                            evaluation.
             TITLE III--PROVIDING FLEXIBILITY AND RESOURCES

                    Subtitle A--Resources Under TANF

Sec. 301. Reauthorization of State family assistance grants.
Sec. 302. Contingency fund.
Sec. 303. Reauthorization of supplemental grants for population 
                            increases.
Sec. 304. Grants to States for administrative costs of implementing 
                            increased work requirements and to enhance 
                            State capabilities and caseworker training.
Sec. 305. Credit for State expenditures to carry out the purposes of 
                            TANF.
Sec. 306. Reauthorization of grants for Indian tribes and penalty for 
                            failure to maintain historic State effort.
Sec. 307. Clarification of authority of States to use TANF funds 
                            carried over from prior years to provide 
                            TANF benefits and services.
Sec. 308. Promoting work and responsibility among all families with 
                            children.
Sec. 309. Data collection and reporting.
Sec. 310. Definition of assistance.
Sec. 311. Authority to use TANF funds for housing benefits.
               Subtitle B--Resources Under Other Programs

Sec. 321. Restoration of funding for the Social Services Block Grant.
Sec. 322. One-year extension and revision and simplification of the 
                            transitional medical assistance program 
                            (TMA).
Sec. 323. Optional coverage of legal immigrants under the medicaid 
                            program and title XXI.
Sec. 324. Pathway to self-sufficiency grants to improve coordination of 
                            assistance for low-income families.
Sec. 325. GAO study on impact of ban on SSI benefits for legal 
                            immigrants.
                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.
    (c) Amendments to Social Security Act.--Except as otherwise 
specifically provided, whenever in this Act an amendment is expressed 
in terms of an amendment to or repeal of a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act (42 U.S.C. 301 et seq.).

SEC. 2. FINDINGS.

    (a) In General.--Congress makes the following findings regarding 
the reauthorization of the temporary assistance to needy families 
program under part A of title IV of the Social Security Act (42 U.S.C. 
601 et seq.):
            (1) The Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2105) 
        was a fundamental change to reform the Federal welfare system 
        to shift it from an entitlement program into a transition 
        program to help families move from welfare to work and personal 
        responsibility.
            (2) Since enactment of the 1996 welfare reform law, welfare 
        cash assistance caseloads have dropped dramatically, by more 
        than 50 percent, and approximately \2/3\ of welfare recipients 
        who have left the cash assistance rolls have left for work.
            (3) More investments in quality child care will allow 
        parents to enter and continue in the workforce knowing that 
        their children have access to safe, meaningful child care, 
        hopefully with emphasis on child development and preparation to 
        ensure that each child gains the skills needed to enter school 
        ready to learn.
            (4) Child poverty rates are improving, but more must be 
        done to reduce poverty in the 2,000,000 families who are still 
        struggling.
            (5) Children deserve to be raised in supportive homes, 
        preferably with 2 loving parents. It is crucial to end policies 
        that discriminate against serving 2-parent families within the 
        welfare system. It is also important to support innovative 
        programs to encourage full participation in child support and 
        child rearing by noncustodial parents.
    (b) Responsible Fatherhood.--Congress makes the following findings 
regarding responsible fatherhood:
            (1) Nearly 24,000,000 children in the United States, or 36 
        percent of all such children, live apart from their biological 
        father.
            (2) Sixty percent of couples who divorce have at least 1 
        child.
            (3) The number of children living with only a mother 
        increased from just over 5,000,000 in 1960, to 20,000,000 in 
        2001, and between 1981 and 1991 the percentage of children 
        living with only 1 parent increased from 19 percent to 27 
        percent.
            (4) Forty percent of children who live in households 
        without a father have not seen their father in at least 1 year 
        and 50 percent of such children have never visited their 
        father's home.
            (5) The most important factor in a child's upbringing is 
        whether the child is brought up in a loving, healthy, 
        supportive environment.
            (6) Children who live without contact with their biological 
        father are, in comparison to children who have such contact--
                    (A) 5 times more likely to live in poverty;
                    (B) more likely to bring weapons and drugs into the 
                classroom;
                    (C) twice as likely to commit crime;
                    (D) twice as likely to drop out of school;
                    (E) twice as likely to be abused;
                    (F) more likely to commit suicide;
                    (G) more than twice as likely to abuse alcohol or 
                drugs; and
                    (H) more likely to become pregnant as teenagers.
            (7) Violent criminals are overwhelmingly males who grew up 
        without fathers.
            (8) Between 20 and 30 percent of families in poverty are 
        headed by women who have suffered domestic violence during the 
        past year and between 40 and 60 percent of women with children 
        receiving welfare were abused sometime during their life.
            (9) Responsible fatherhood includes active participation in 
        financial support and child care, as well as the formation and 
        maintenance of a positive, healthy, and nonviolent relationship 
        between father and child and a cooperative relationship between 
        parents.
            (10) States should be encouraged to implement programs that 
        provide support for responsible fatherhood, promote marriage, 
        and increase the incidence of marriage, and should not be 
        restricted from implementing such programs.
            (11) Fatherhood programs should promote and provide support 
        services for--
                    (A) loving and healthy relationships between 
                parents and children; and
                    (B) cooperative parenting.
            (12) There is a social need to reconnect children and 
        fathers.
            (13) The promotion of responsible fatherhood and 
        encouragement of married 2-parent families should not--
                    (A) denigrate the standing or parenting efforts of 
                single mothers or other caregivers;
                    (B) lessen the protection of children from abusive 
                parents; or
                    (C) compromise the safety or health of the 
                custodial parent;
        but should increase the chance that children will have 2 caring 
        parents to help them grow up healthy and secure.
            (14) The promotion of responsible fatherhood must always 
        recognize and promote the values of nonviolence.
            (15) For the future of the United States and the future of 
        our children, Congress, States, and local communities should 
        assist parents to become more actively involved in their 
        children's lives.
            (16) Child support is an important means by which a parent 
        can take financial responsibility for a child and emotional 
        support is an important means by which a parent can take social 
        responsibility for a child.
    (c) Teen Pregnancy Prevention.--Congress makes the following 
findings regarding the prevention of teen pregnancy:
            (1) The United States is making significant progress in 
        reducing teen births, with national teen birth rates declining 
        22 percent since 1991.
            (2) Despite declining national rates, teen birth rates went 
        up in 11 States between 1999 and 2000, and the national teen 
        birth rate for Hispanic teens who are 15 to 19 years old also 
        increased between 1999 and 2000.
            (3) In the United States 4 out of 10 girls get pregnant at 
        least once by age 20, nearly 1,000,000 girls each year. There 
        are nearly 500,000 teen births each year.
            (4) Although teen pregnancy and birth rates are declining, 
        the United States still has the highest rates of teen pregnancy 
        and birth in the industrialized world, nearly twice as high as 
        the next highest nation, Great Britain.
            (5) Some 52 percent of all mothers on welfare had their 
        first child as a teenager, according to the most recent data 
        available. Almost \1/2\ of all teen mothers and over \3/4\ of 
        unmarried teen mothers began receiving welfare within 5 years 
        of the birth of their first child.
            (6) At present, 79 percent of births to teen mothers are 
        out-of-wedlock and nearly \1/2\ of all non-marital first births 
        occur to teens.
            (7) Children of teen mothers are more likely to be born 
        prematurely and at low birth weight, to perform poorly in 
        school, and to suffer abuse and neglect than children born to 
        older women. Girls born to teen mothers are 22 percent more 
        likely to become teen mothers, and sons of teen mothers are 
        more likely to end up in jail.
            (8) Teen mothers are likely to have a second birth 
        relatively soon, about \1/4\ of teenage mothers have a second 
        child within 24 months of the first birth, which can further 
        impede the teen mother's ability to finish school or keep a job 
        and to escape poverty.
            (9) Teen pregnancy and childbearing costs United States 
        taxpayers at least $7,000,000,000 per year.
            (10) Teen marriages are twice as likely to fail as 
        marriages where the woman is at least 25 years old.
            (11) Many of the fathers of children born to teen mothers 
        are older. Half of those young men who impregnate a minor teen 
        (under age 18) are 3 or more years older than the young woman. 
        Eight of 10 teen fathers do not marry the mothers of their 
        first children and these absent fathers pay less than $800 
        annually in child support, often because they are quite poor 
        themselves.
            (12) Over 90 percent of both adults and teens believe it is 
        important that teens be given a strong message from society 
        that they should abstain from sex until they are at least out 
        of high school. A substantial majority of both adults and teens 
        also believe that, while teens should not be sexually active, 
        those that are should have access to contraception.
            (13) A synthesis of research on the effectiveness of media 
        campaigns in the United States suggests that these campaigns 
        may reduce risky health behaviors by as much as 5 to 10 percent 
        at a very low cost.
            (14) There is rigorous evaluation research about a variety 
        of programs that are effective in delaying the onset of sex, 
        improving contraceptive use, or preventing pregnancy among 
        adolescents.
            (15) Between 1995 and 2010, the number of girls who are 15 
        to 19 years old is estimated to increase by 2,200,000. If 
        current fertility rates remain the same, there would be a 26 
        percent increase in the number of pregnancies and births among 
        teenagers between 1995 and 2010.

                        TITLE I--REQUIRING WORK

SEC. 101. INCREASE IN WORK PARTICIPATION RATES.

    Section 407(a) (42 U.S.C. 607(a)) is amended--
            (1) by striking ``A State'' and inserting ``Subject to 
        paragraphs (2) and (3), a State'';
            (2) in the table set forth in paragraph (1)--
                    (A) in the item relating to fiscal year 2002--
                            (i) by striking ``or thereafter'' and 
                        inserting ``or 2003''; and
                            (ii) by striking the period; and
                    (B) by adding at the end the following:

                        ``2004.......................             55   
                         2005........................             60   
                         2006........................             65   
                         2007 or thereafter..........          70.'';  

        and
            (3) by striking paragraph (2) and inserting the following:
            ``(2) Cap on annual increase of minimum participation rate 
        for certain states.--In the case of a State for which the 
        minimum participation rate otherwise required by this section 
        for fiscal year 2002 was reduced, as of the date of enactment 
        of the Work and Family Act of 2002, by regulations or 
        otherwise, paragraph (3) shall not apply and the minimum 
        participation rate for such State with respect to fiscal year 
        2003 or any fiscal year thereafter shall equal the lessor of--
                    ``(A) the rate specified in the table set forth in 
                paragraph (1) for such fiscal year; or
                    ``(B) the minimum participation rate applicable to 
                the State under this section for the preceding fiscal 
                year increased by 20 percentage points.
            ``(3) Moratorium on increases in participation rates if 
        reduction in mandatory funding for child care.--In the case of 
        a State to which paragraph (2) does not apply, with respect to 
        fiscal year 2003 or any fiscal year thereafter, if the amount 
        appropriated for that fiscal year under subsection (a)(3) of 
        section 418 for making grants under that section to provide 
        child care assistance is less than the amount required to be 
        appropriated for such fiscal year as of the date of enactment 
        of the Work and Family Act of 2002--
                    ``(A) the minimum participation rate otherwise 
                applicable under this section for the preceding fiscal 
                year shall continue to apply to such State for that 
                fiscal year and any succeeding fiscal year until the 
                amount appropriated for the fiscal year under 
                subsection (a)(3) of section 418 is at least equal to 
                the amount required to be so appropriated for that 
                fiscal year (as of such date of enactment); and
                    ``(B) the minimum participation rate for any fiscal 
                year described in subparagraph (A) for which the amount 
                appropriated under subsection (a)(3) of section 418 is 
                restored to an amount that is at least equal to the 
                amount required to be so appropriated for such fiscal 
                year (as of such date of enactment) shall, 
                notwithstanding the rate that would otherwise apply to 
                the State under this section (after the application of 
                such paragraphs), be the minimum participation rate for 
                the preceding fiscal year increased by 5 percentage 
                points.''.

SEC. 102. ELIMINATION OF SEPARATE WORK PARTICIPATION RATE FOR 2-PARENT 
              FAMILIES.

    Section 407(b) (42 U.S.C. 607(b)) is amended--
            (1) in paragraph (1)(A), by striking ``subsection (a)(1)'' 
        and inserting ``subsection (a)'';
            (2) by striking paragraph (2);
            (3) in paragraph (4), by striking ``paragraphs (1)(B) and 
        (2)(B)'' and inserting ``paragraph (1)(B)'';
            (4) in paragraph (5), by striking ``rates'' and inserting 
        ``rate''; and
            (5) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (2), (3), and (4), respectively.

SEC. 103. CREDITS FOR PURPOSES OF DETERMINING MONTHLY WORK 
              PARTICIPATION RATES.

    (a) Credit for Employment of Former Recipients.--Section 407(b)(1) 
(42 U.S.C. 607(b)(1)) is amended by adding at the end the following:
                    ``(C) Credit for employment of former recipients.--
                            ``(i) In general.--Subject to clause (ii), 
                        for purposes of subparagraph (B)(i), a State 
                        may count an individual who has ceased to 
                        receive assistance under the State program 
                        funded under this part and who has earnings 
                        from employment with respect to a month as a 
                        family engaged in work for that month, not to 
                        exceed 12 consecutive months from the date that 
                        the individual first received such earnings.
                            ``(ii) Limitation.--A State may not count 
                        an individual described in clause (i) as 
                        engaged in work for a month under this 
                        subparagraph if the State counts that 
                        individual under subparagraph (E) as being 
                        engaged in work for such month.
                            ``(iii) Data collection.--The State agency 
                        responsible for administering the State 
                        Directory of New Hires established under 
                        section 453A, shall provide the State agency 
                        responsible for administering the State program 
                        funded under this part with access to such 
                        directory for purposes of collecting 
                        information necessary for the State to obtain 
                        credit for the employment of individuals under 
                        clause (i).''.
    (b) Credit for Both Parents Meeting Work Requirements.--Section 
407(b)(1) (42 U.S.C. 607(b)(1)), as amended by subsection (a), is 
amended by adding at the end the following:
                    ``(D) Credit for both parents meeting work 
                requirements.--For purposes of subparagraph (B)(i), a 
                State may count a family that includes 2 parents that 
                each are engaged in work for the month as 2 separate 
                families.''.
    (c) Credit for Former Recipients With Higher Earnings.--Section 
407(b)(1) (42 U.S.C. 607(b)(1)), as amended by subsections (a) and (b), 
is amended by adding at the end the following:
                    ``(E) Credit for former recipients with higher 
                earnings.--
                            ``(i) In general.--Subject to clause (ii), 
                        for purposes of subparagraph (B)(i), a State 
                        may count a family that includes an individual 
                        who has ceased to receive assistance under the 
                        State program funded under this part and who 
                        has earnings from employment with respect to a 
                        month that are equal to at least 50 percent of 
                        the average wage in the State (determined on 
                        the basis of State unemployment data) as 1\1/2\ 
                        families.
                            ``(ii) Limitations.--A State may not count 
                        an individual described in clause (i) as 
                        engaged in work for a month under this 
                        subparagraph--
                                    ``(I) if the State counts that 
                                individual under subparagraph (C) as 
                                being engaged in work for such month; 
                                or
                                    ``(II) for more than 12 consecutive 
                                months from the date that the 
                                individual first received earnings 
                                described in clause (i).''.
    (d) Partial Credit for Certain Individuals.--Section 407(b)(1) (42 
U.S.C. 607(b)(1)), as amended by subsections (a), (b), and (c), is 
amended by adding at the end the following:
                    ``(G) Partial credit for certain recipients.--
                            ``(i) In general.--Subject to clause (ii), 
                        for purposes of subparagraph (B)(i), with 
                        respect to a month, a State may include a 
                        family that includes an individual described in 
                        any of the following categories as \1/2\ of a 
                        family engaged in work for that month:
                                    ``(I) Noncustodial parents 
                                receiving employment services.--A 
                                noncustodial parent who receives 
                                employment services under any State 
                                program, who has a child who receives 
                                assistance under the State program 
                                funded under this part (or who received 
                                such assistance not more than 2 years 
                                earlier), and who has an agreement to 
                                comply with such parent's child support 
                                obligations upon receiving such 
                                services, not to exceed 12 consecutive 
                                months from the date that the 
                                individual first receives such 
                                services.
                                    ``(II) Recipients working part-time 
                                and addressing barriers to work.--A 
                                recipient who is engaged for a month in 
                                a core work activity described in 
                                subsection (c)(1)(C)(i) for at least 15 
                                hours per week and engaged for such 
                                month in a self-sufficiency work 
                                activity described in subsection 
                                (c)(1)(C)(ii) for at least an 
                                additional 15 hours per week.
                                    ``(III) Recipients of substantial 
                                child care or transportation 
                                assistance.--A recipient of substantial 
                                child care or transportation assistance 
                                (as defined by the Secretary, in 
                                consultation with directors of State 
                                programs funded under this part, which 
                                definition shall specify for each type 
                                of assistance a threshold which is a 
                                dollar value or length of time over 
                                which the assistance is received, and 
                                shall take account of large one-time 
                                transition payments).
                                    ``(IV) Recipients engaged in higher 
                                education.--A recipient who is engaged 
                                for a month in higher education 
                                activities for at least 20 hours per 
                                week.
                            ``(ii) Limitation.--Not more than 30 
                        percent of the number of individuals in all 
                        families in a State who are subject to work 
                        requirements under the State program may 
                        consist of families described and counted under 
                        clause (i).
                            ``(iii) Rule of construction.--Nothing in 
                        clause (i)(III) shall be construed as making a 
                        recipient described in that clause subject to 
                        any work requirements imposed under the State 
                        program funded under this part.''.

SEC. 104. CHILD SUPPORT COLLECTION CREDIT.

    Section 407(a) (42 U.S.C. 607(a)), as amended by section 101, is 
amended by adding at the end the following:
            ``(3) Child support collection credit.--Beginning with 
        fiscal year 2003, the minimum participation rate otherwise 
        applicable to a State under this subsection for a fiscal year 
        shall be reduced by the number of percentage points by which 
        the percentage of cases with child support collections for 
        children in families receiving assistance or formerly received 
        assistance under the State program funded under this part for 
        the preceding fiscal year increased over the percentage of such 
        cases with child support collections for the second preceding 
        fiscal year.''.

SEC. 105. PHASEOUT OF CASELOAD REDUCTION CREDIT.

    Section 407(b)(3) (42 U.S.C. 607(b)(3)), as redesignated by section 
102(5), is amended by adding at the end the following:
                    ``(C) Elimination of credit beginning with fiscal 
                year 2006.--The minimum participation rate required 
                under this section shall not be reduced due to caseload 
                reductions (including under the regulations required by 
                subparagraph (A)) by more than--
                            ``(i) 50 percent, in the case of fiscal 
                        year 2004;
                            ``(ii) 25 percent, in the case of fiscal 
                        year 2005; and
                            ``(iii) 0 percent in the case of fiscal 
                        year 2006 and each fiscal year thereafter.''.

SEC. 106. REMOVAL OF RECIPIENTS WHO QUALIFY FOR SUPPLEMENTAL SECURITY 
              INCOME BENEFITS FROM WORK PARTICIPATION RATE CALCULATION 
              FOR ENTIRE YEAR.

    Section 407(b)(1)(B)(ii) (42 U.S.C. 607(b)(1)(B)(ii)) is amended--
            (1) in subclause (I), by inserting ``who has not become 
        eligible for supplemental security income benefits under title 
        XVI during the fiscal year'' before the semicolon; and
            (2) in subclause (II), by inserting ``, and that do not 
        include an adult or minor child head of household who has 
        become eligible for supplemental security income benefits under 
        title XVI during the fiscal year'' before the period.

SEC. 107. 40-HOUR WORK WEEK.

    (a) Core and Self-Sufficiency Hours.--Section 407(c)(1) (42 U.S.C. 
607(c)(1)) is amended to read as follows:
            ``(1) Core and self-sufficiency hours.--
                    ``(A) Minimum requirements applicable to all 
                recipients.--Subject to subparagraph (D), for purposes 
                of subsection (b)(1)(B)(i), a recipient is engaged in 
                work for a month in a fiscal year if the recipient is 
                participating in core work activities for at least 20 
                hours per week and in self-sufficiency activities for 
                at least an additional 20 hours per week (as 
                administered and certified by the State).
                    ``(B) Credit for recipients exceeding core work 
                activities requirements but not meeting self-
                sufficiency activities requirements.--Subject to 
                subparagraph (D), for purposes of subsection 
                (b)(1)(B)(i), with respect to a month--
                            ``(i) if a family includes a recipient who 
                        is engaged in core work activities for at least 
                        24 hours per week for the month but not engaged 
in self-sufficiency activities for the month, the State shall count the 
family as 60 percent of a family being engaged in work for the month;
                            ``(ii) if a family includes a recipient who 
                        is engaged in core work activities for at least 
                        24 hours per week and in self-sufficiency 
                        activities for at least 1 but less than 5 hours 
                        per week for the month, the State shall count 
                        the family as 70 percent of a family being 
                        engaged in work for the month;
                            ``(iii) if a family includes a recipient 
                        who is engaged in core work activities for at 
                        least 24 hours per week and in self-sufficiency 
                        activities for at least 5 but less than 9 hours 
                        per week for the month, the State shall count 
                        the family as 80 percent of a family being 
                        engaged in work for the month;
                            ``(iv) if a family includes a recipient who 
                        is engaged in core work activities for at least 
                        24 hours per week and in self-sufficiency 
                        activities for at least 9 but less than 13 
                        hours per week for the month, the State shall 
                        count the family as 90 percent of a family 
                        being engaged in work for the month;
                            ``(v) if a family includes a recipient who 
                        is engaged in core work activities for at least 
                        24 hours per week and in self-sufficiency 
                        activities for at least 13 but less than 16 
                        hours per week for the month, the State shall 
                        count the family as a family being engaged in 
                        work for the month; and
                            ``(vi) if a family includes a recipient who 
                        is engaged in core work activities for at least 
                        24 hours per week and in self-sufficiency 
                        activities for at least 16 hours per week for 
                        the month, the State shall count the family as 
                        1\1/4\ families being engaged in work for the 
                        month.
                    ``(C) Definitions.--In this section:
                            ``(i) Core work activities.--The term `core 
                        work activities' means 1 or more activities 
                        described in paragraphs (1) through (9) of 
                        subsection (d).
                            ``(ii) Self-sufficiency activities.--The 
                        term `self-sufficiency activities' means 1 or 
                        more activities described in paragraphs (1) 
                        through (13) of subsection (d).
                    ``(D) Limitation on applicability.--With respect to 
                fiscal year 2003 or any fiscal year thereafter, if the 
                amount appropriated for that fiscal year under 
                subsection (a)(3) of section 418 for making grants 
                under that section to provide child care assistance is 
                less than the amount required to be appropriated for 
                such fiscal year as of the date of enactment of the 
                Work and Family Act of 2002, this paragraph shall be 
                applied without regard to the amendments made by 
                section 107(a) of the Work and Family Act of 2002, and 
                shall continue to be so applied until the amount 
                appropriated for the fiscal year under subsection 
                (a)(3) of section 418 is at least equal to the amount 
                required to be so appropriated for that fiscal year, as 
                of such date of enactment.''.
    (b) Work Activities.--
            (1) Modifications of limitations on activities.--Section 
        407(d) (42 U.S.C. 607(d)) is amended--
                    (A) in paragraph (11), by striking ``and'' at the 
                end;
                    (B) in paragraph (12), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(13) any activity that the State--
                    ``(A) determines is reasonably related to--
                            ``(i) providing assistance to needy 
                        families so that children may be cared for in 
                        their own homes or in the homes of relatives;
                            ``(ii) ending the dependence of needy 
                        parents on government benefits by promoting job 
                        preparation, work, and marriage;
                            ``(iii) preventing and reducing the 
                        incidence of out-of-wedlock pregnancies and 
                        establishing annual numerical goals for 
                        preventing and reducing the incidence of these 
                        pregnancies; or
                            ``(iv) encouraging the formation and 
                        maintenance of 2-parent families; or
                    ``(B) certifies as achieving 1 or more purposes 
                described in subparagraph (A), such as (but not limited 
                to) language acquisition skills, including 
                participation in an English as a second language 
                program, education and training (including 
                postsecondary education), substance abuse treatment, 
                the receipt of mental health services, or the 
                acquisition of child development and parenting 
                skills.''.
            (2) Recipients considered to be full-time employees by 
        their employer.--Section 407(c)(2) (42 U.S.C. 607(c)(2)) is 
        amended by adding at the end the following:
                    ``(E) Recipients considered to be full-time 
                employees by their employer.--For purposes of 
                determining monthly participation rates under 
                subsection (b)(1)(B)(i), a recipient whose private 
                sector employer certifies that the recipient's hours of 
                work satisfy the employer's requirements applicable to 
                the employer's other employees for being a full-time 
                employee, and that the recipient is considered to be a 
                full-time employee of the employer, is deemed to be 
                engaged in work for a month.''.
            (3) Single parent or relative with child under age 6.--
        Section 407(c)(2)(B) (42 U.S.C. 607(c)(2)(B)) is amended--
                    (A) in the subparagraph heading, by striking ``in 
                work'' each place it appears and inserting ``in core 
                work activities''; and
                    (B) by striking ``in work'' and inserting ``in core 
                work activities''.
            (4) Elimination of recipients completing secondary school 
        from limit on number of tanf recipients participating in 
        vocational educational training; option to permit up to half of 
        vocational educational training caseload to continue for up to 
        24 months.--
                    (A) In general.--Section 407(c)(2)(D) (42 U.S.C. 
                607(c)(2)(D)) is amended to read as follows:
                    ``(D) Limitation on number of persons who may be 
                treated as engaged in work by reason of participation 
                in vocational educational activities.--
                            ``(i) In general.--For purposes of 
                        determining monthly participation rates under 
                        subsection (b)(1)(B)(i), not more than 30 
                        percent of the number of individuals in all 
                        families in a State who are treated as engaged 
                        in work for a month may consist of individuals 
                        who are determined to be engaged in work for 
                        the month by reason of participation in 
                        vocational educational training.
                            ``(ii) Option to permit \1/2\ of certain 
                        individuals participating in vocational 
                        educational activities to continue training for 
                        up to 24 months.--Notwithstanding subsection 
                        (d)(8), a State may--
                                    ``(I) permit not more than \1/2\ of 
                                the number of individuals in all 
                                families in a State who are treated as 
                                engaged in work for the month under 
                                clause (i) by reason of participation 
                                in vocational educational training to 
                                participate in such training for up to 
                                24 months if the State certifies that 
                                each such individual is pursuing a 
                                certificate or degree that is likely to 
                                result if the individual is allowed to 
                                participate in such training; and
                                    ``(II) treat such individuals as 
                                being engaged in work for a month for 
                                purposes of subsection (b)(1)(B)(i).''.
                    (B) Conforming amendments.--
                            (i) Section 407(c)(2)(C)(ii) (42 U.S.C. 
                        607(c)(2)(C)(ii) is amended by inserting 
                        ``including vocational educational training'' 
                        after ``employment''.
                            (ii) Section 407(d)(8) (42 U.S.C. 
                        607(d)(8)) is amended by striking ``not'' and 
                        inserting ``subject to subsection 
                        (c)(2)(D)(ii), not''.

SEC. 108. INCREASE IN MANDATORY FUNDING FOR CHILD CARE.

    Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(G) $3,717,000,000 for fiscal year 2003;
                    ``(H) $4,117,000,000 for fiscal year 2004;
                    ``(I) $4,417,000,000 for fiscal year 2005;
                    ``(J) $4,617,000,000 for fiscal year 2006; and
                    ``(K) $4,717,000,000 for fiscal year 2007.''.

SEC. 109. STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMPTION FOR 
              INDIVIDUALS OVERCOMING BARRIERS TO WORK.

    (a) In General.--Section 407(b) (42 U.S.C. 607(b)), as amended by 
section 102, is amended by adding at the end the following:
            ``(5) State option for participation requirement exemption 
        for individuals overcoming barriers to work.--A State may, at 
        its option, not require an individual who is addressing a 
        barrier to work such as substance abuse, a mental health 
        disorder, depression, having experienced domestic violence (as 
        defined in section 402(a)(7)(B)), or being in need of 
        significant job training, to engage in work, and may disregard 
        such an individual in determining the participation rate under 
        subsection (a), for not more than 3 months during any 24-month 
        period.''.
    (b) Conforming Amendment.--Paragraph (4) of section 407(b) (42 
U.S.C. 607(b)), as redesignated by section 102(5), is amended in the 
paragraph heading by striking ``exemptions'' and inserting ``exemption 
for single custodial parent with an infant''.

SEC. 110. COMPETITIVE GRANTS FOR PUBLIC-PRIVATE PARTNERSHIPS FOR 
              EDUCATIONAL OPPORTUNITIES FOR CAREER ADVANCEMENT; STATE 
              OPTION TO ESTABLISH PARENTS AS SCHOLARS PROGRAM.

    (a) Competitive Grants for Public-Private Partnerships for 
Educational Opportunities for Career Advancement.--
            (1) Authority to award grants.--
                    (A) In general.--The Secretary of Health and Human 
                Services and the Secretary of Labor (in this subsection 
                referred to as the ``Secretaries'') jointly shall award 
                grants in accordance with the requirements of this 
                subsection for each fiscal year for which an amount is 
                appropriated to carry out this subsection for projects 
                proposed by eligible applicants to encourage the 
                formation of public-private partnerships to provide 
                educational opportunities for individuals who receive 
                assistance under the temporary assistance to needy 
                families program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.) and for 
                individuals who have ceased to receive assistance under 
                that program.
                    (B) Criteria.--The Secretaries shall award grants 
                under this subsection based on the following:
                            (i) The potential effectiveness of the 
                        proposed project in carrying out the activities 
                        described in paragraph (5).
                            (ii) Evidence of the ability of the 
                        eligible applicant to leverage private, State, 
                        and local resources to carry out such 
                        activities.
                            (iii) Evidence of the ability of the 
                        eligible applicant to coordinate with other 
                        organizations at the State and local level in 
                        carrying out such activities.
            (2) Definition of eligible applicant.--In this subsection, 
        the term ``eligible applicant'' means--
                    (A) a public educational institution;
                    (B) an employer; or
                    (C) a local or regional consortium that includes 
                employers or employer associations, education and 
                training providers, local chambers of commerce, or 
                providers of social services.
            (3) Application.--Each eligible applicant desiring a grant 
        under this subsection shall submit an application to the 
        Secretaries at such time, in such manner, and that includes--
                    (A) evidence, including letters of support, 
                demonstrating that the applicant will work with the 
                State in carrying out the activities described in 
                paragraph (5); and
                    (B) such other information as the Secretaries may 
                reasonably require.
            (4) Determination of amount of grants; availability of 
        funds.--
                    (A) In general.--In determining the appropriate 
                amount of a grant to be awarded under this subsection, 
                the Secretaries shall provide an eligible applicant 
                with an approved application an amount sufficient to 
                ensure that the project has a reasonable opportunity to 
                be successful, taking into account--
                            (i) the number and characteristics of the 
                        individuals to be served by the project;
                            (ii) the job opportunities and job growth 
                        in the area to be served by the project;
                            (iii) the poverty rate for such area; and
                            (iv) such other factors as the Secretaries 
                        deem appropriate.
                    (B) Maximum amount.--No eligible applicant shall 
                receive a grant of more than $5,000,000 per year.
                    (C) Availability of funds.--Funds provided under a 
                grant awarded under this subsection for a fiscal year 
                shall remain available for use by the eligible 
                applicant through the end of the succeeding fiscal 
                year.
            (5) Use of funds.--An eligible applicant awarded a grant 
        under this subsection shall enter into an agreement with the 
        State or local agency responsible for administering the 
        temporary assistance to needy families program in the area 
        where the eligible applicant is located to provide individuals 
        described in paragraph (1) with--
                    (A) educational credits or opportunities based upon 
                the length of the individual's employment;
                    (B) educational credits or opportunities based upon 
                the individual's commitment to becoming employed; or
                    (C) education and training opportunities for career 
                advancement.
            (6) Reports.--
                    (A) Project reports.--Each eligible applicant 
                awarded a grant under this subsection shall submit to 
                the Secretaries such information and data regarding the 
                recipients participating in the project funded under 
                such grant and outcomes for such recipients as the 
                Secretaries may require.
                    (B) Report to congress.--The Secretaries shall 
                submit annual reports to Congress on the information 
                and data submitted under subparagraph (A).
    (b) Grants To Establish Parents as Scholars Programs.--
            (1) In general.--The Secretary of Health and Human Services 
        may award grants to States to establish a parents as scholars 
        program under which an eligible participant may be provided 
        support services described in paragraph (4) based on the 
        participant's need in order to complete the program.
            (2) Definition of eligible participant.--
                    (A) In general.--In this subsection, the term 
                ``eligible participant'' means an individual who 
                receives assistance under the State program funded 
                under part A of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.) and satisfies the following 
                requirements:
                            (i) The individual is enrolled as a full-
                        time student in a postsecondary 2- or 4-year 
                        degree program.
                            (ii) The individual does not have a 
                        marketable bachelor's degree.
                            (iii) The individual does not have the 
                        skills necessary to earn at least 85 percent of 
                        the median wage for the State or locality in 
                        which the individual resides.
                            (iv) The individual is--
                                    (I) pursuing a degree that will 
                                improve the individual's ability to 
                                support the individual's family, 
                                considering the local labor market and 
                                employment opportunities; and
                                    (II) demonstrating an ability to 
                                succeed in the educational program that 
                                has been chosen.
                            (v) The individual participates in a 
                        combination of education, training, study or 
                        worksite experience for an average of not less 
                        than 20 hours per week (including time spent 
                        studying at 150 percent of time spent in 
                        class).
                            (vi) After the first 24 months of 
                        participation in the program, the individual--
                                    (I) works not less than 15 hours 
                                per week (in addition to school and 
                                study time); or
                                    (II) engages in a combination of 
                                class hours, study hours (including 
                                time spent studying at 150 percent of 
                                time spent in class) and work for a 
                                total of not less than 40 hours per 
                                week.
                            (vii) During the period the individual 
                        participates in the program, the individual--
                                    (I) maintains not less than a 2.0 
                                grade point average;
                                    (II) attends classes as scheduled;
                                    (III) reports to the individual's 
                                caseworker for the program any changes 
                                that might affect the individual's 
                                participation;
                                    (IV) provides the individual's 
                                caseworker with a copy of any financial 
                                aid award letters; and
                                    (V) provides the individual's 
                                caseworker with the individual's 
                                semester grades as requested.
                    (B) Definition of full-time student.--
                            (i) In general.--For purposes of 
                        subparagraph (A)(i), an individual shall be 
                        considered a full-time student if such 
                        individual is taking courses having the number 
                        of hours needed under the requirements of the 
                        educational institution in which the individual 
                        is enrolled, to complete the requirements of a 
                        degree within the usual timeframe of 2 or 4 
                        years, as applicable.
                            (ii) Exception.--The State may, for good 
                        cause, modify the number of hours required 
                        under clause (i) to allow additional time, not 
                        to exceed 150 percent of the usual timeframe 
                        required for completion of a 2- or 4-year 
                        degree, for an individual to complete a degree 
                        and be considered a full-time student under a 
                        program established with a grant made under 
                        this subsection.
            (3) Modification of eligible participant requirements.--A 
        State may, for good cause, modify the requirements for an 
        eligible participant set forth in paragraph (2)(A).
            (4) Support services described.--For purposes of paragraph 
        (1), the support services described in this paragraph include 1 
        or more of the following during the period the eligible 
        participant is in the program established with a grant made 
        under this subsection:
                    (A) Child care for children under age 13 or for 
                children who are physically or mentally incapable of 
                caring for themselves.
                    (B) Transportation services, including--
                            (i) mileage at a set rate per mile or 
                        reimbursement for public or private 
                        transportation;
                            (ii) payment for automotive repairs, not to 
                        exceed $500 per academic year on a vehicle 
                        registered to the eligible participant; and
                            (iii) reimbursement for vehicle liability 
                        insurance, not to exceed $300, for the eligible 
                        participant's vehicle.
                    (C) Payment for books and supplies to the extent 
                that such items are not covered by grants and loans, 
                not to exceed $750 per academic year.
                    (D) Such other expenses, not to exceed $500, that 
                the State determines are necessary for the eligible 
                participant to complete the program established under 
                this subsection and that are not covered by any other 
                available support services program.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $25,000,000 for each of fiscal years 2003 through 2007, 
        to carry out the grant program established under subsection 
        (a); and
            (2) $25,000,000 for each of fiscal years 2003 through 2007, 
        to carry out the grant program established under subsection 
        (b).

SEC. 111. TRANSITIONAL JOBS PROGRAMS.

    Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end 
the following:
            ``(6) Transitional jobs grants.--
                    ``(A) Purpose.--The purpose of this paragraph is to 
                provide funding so that States and localities can 
                create and expand transitional jobs programs that--
                            ``(i) combine time-limited employment that 
                        is subsidized with public funds, with skill 
                        development and barrier removal activities, 
                        pursuant to an individualized plan;
                            ``(ii) provide job development and 
                        placement assistance to individual program 
                        participants to help them move from subsidized 
                        employment in transitional jobs into 
                        unsubsidized employment, as well as retention 
                        services after the transition to unsubsidized 
                        employment; and
                            ``(iii) serve recipients of assistance 
                        under the State program funded under this part 
                        and other low-income individuals who have been 
                        unable to secure employment through job search 
                        or other employment-related services because of 
                        limited skills, experience, or other barriers 
                        to employment.
                    ``(B) Limitations on use of funds.--
                            ``(i) Allowable activities.--An entity to 
                        which funds are provided under this paragraph 
                        shall use the funds to operate transitional 
                        jobs programs consistent with the following:
                                    ``(I) An entity which secures a 
                                grant to operate a transitional jobs 
                                program (in this subparagraph referred 
                                to as a `program operator'), under this 
                                paragraph shall place eligible 
                                individuals in temporary, publicly 
                                subsidized jobs. Individuals placed in 
                                such jobs shall perform work directly 
                                for the program operator, or at other 
                                public and nonprofit organizations (in 
                                this subparagraph referred to as 
                                `worksite employers') within the 
                                community. Funds provided under this 
                                paragraph shall be used to subsidize 
                                100 percent of the wages paid to 
                                program participants as well as 
                                employer-paid payroll costs for such 
                                participants.
                                    ``(II) Transitional jobs programs 
                                shall provide paid employment for not 
                                less than 30, nor more than 40 hours 
                                per week, except that a parent with a 
                                child under the age of 6, a child who 
                                is disabled, or a child with other 
                                special needs, or an individual who for 
                                other reasons cannot successfully 
                                participate for 30 to 40 hours per 
                                week, may, at State discretion, be 
                                allowed to participate for more limited 
                                hours, but not less than 20 hours per 
                                week.
                                    ``(III) Program operators shall 
                                provide case management services and 
                                ensure that appropriate education, 
                                training, and other services are 
                                available to program participants 
                                consistent with an individual plan 
                                developed for each such participant.
                                    ``(IV) Program operators shall 
                                provide job placement assistance to 
                                help program participants obtain 
                                unsubsidized employment, and shall 
                                provide retention services for 12 
                                months after entry into unsubsidized 
                                employment.
                                    ``(V) In any work week in which a 
                                program participant is employed at 
                                least 30 hours, not less than 20 
                                percent, nor more than 50 percent of 
                                scheduled hours shall involve 
                                participation in education or training 
                                activities designed to improve the 
                                participant's employability and 
                                potential earnings, or other services 
                                designed to reduce or eliminate any 
                                barriers that may impede the 
                                participant's ability to secure 
                                unsubsidized employment.
                                    ``(VI) The maximum duration of any 
                                placement in a transitional jobs 
                                program shall not be less than 6 
                                months, nor more than 24 months. 
                                Nothing in this subclause shall be 
                                construed to bar a program participant 
                                from moving into unsubsidized 
                                employment at a point prior to the 
                                maximum duration of the program. States 
                                may approve programs of varying 
                                durations consistent with this 
                                subclause.
                                    ``(VII) Program participants shall 
                                be paid at the rate paid to 
                                unsubsidized employees of the worksite 
                                employer (or program operator where 
                                work is performed directly for the 
                                program operator) who perform 
                                comparable work at the worksite where 
                                the individual is placed. If no other 
                                employees perform the same or 
                                comparable work then wages shall be 
                                set, at a minimum, at 50 percent of the 
                                Lower Living Standard Income Level (in 
                                this subparagraph referred to as the 
                                `LLSIL'), as specified in section 
                                101(24) of the Workforce Investment Act 
                                of 1998, for a family of 3 based on 35 
                                hours per week.
                                    ``(VIII) Program participants shall 
                                receive supervision from the worksite 
                                employer or program operator consistent 
                                with the goal of addressing the limited 
                                work experience and skills of program 
                                participants.
                            ``(ii) Consultation.--An application 
                        submitted by an entity seeking to become a 
                        program operator shall include an assurance by 
                        the applicant that the transitional jobs 
                        program carried out by the applicant shall--
                                    ``(I) provide in the design, 
                                recruitment, and operation of the 
                                program for broad-based input from the 
                                community served and potential 
                                participants in the program and 
                                community-based agencies with a 
                                demonstrated record of experience in 
                                providing services, prospective 
                                worksite employers, local labor 
                                organizations representing employees of 
                                prospective worksite employers, if 
                                these entities exist in the area to be 
                                served by the program, and employers, 
                                and membership-based groups that 
                                represent low-income individuals; and
                                    ``(II) prior to the placement of 
                                program participants, consult with the 
                                appropriate local labor organization, 
                                if any, representing employees in the 
                                area who are engaged in the same or 
                                similar work as that proposed to be 
                                carried out by such program.
                            ``(iii) Eligibility for other work 
                        supports.--Program participants shall be 
                        eligible for subsidized child care, 
                        transportation assistance, and other needed 
                        support services on the same basis as other 
                        recipients of cash assistance under the State 
                        program funded under this part.
                            ``(iv) Wages not considered assistance.--
                        Wages paid to program participants shall not be 
                        considered to be assistance for purposes of 
                        section 408(a)(7).
                            ``(v) Private sector placements.--Not more 
                        than 50 percent of the total number of such 
                        participants in transitional jobs in a State at 
                        any time may be placed at worksite employers 
                        which are private, for-profit entities.
                    ``(C) General eligibility.--
                            ``(i) In general.--Not less than \2/3\ of 
                        the participants in a transitional jobs program 
                        funded under a grant made under this paragraph 
                        during a fiscal year shall be individuals who 
                        are, at the time they enter the program--
                                    ``(I) receiving assistance under 
                                the State program funded under this 
                                part;
                                    ``(II) not receiving assistance 
                                under the State program funded under 
                                this part, but who are unemployed, and 
                                who were recipients of such assistance 
                                within the immediately preceding 12-
                                month period;
                                    ``(III) custodial parents of a 
                                minor child who meet the financial 
                                eligibility criteria for assistance 
                                under the State program funded under 
                                this part; or
                                    ``(IV) noncustodial parents with 
                                income below 150 percent of the poverty 
                                line (as defined in section 673(2) of 
                                the Omnibus Budget Reconciliation Act 
                                of 1981, including any revision 
                                required by such section, applicable to 
                                a family of the size involved).
                            ``(ii) Limitation.--Not more than \1/3\ of 
                        all participants in a transitional jobs program 
funded under this paragraph during a fiscal year shall be individuals 
who have attained at least age 18 with an income below 150 percent of 
the poverty line (as defined in section 673(2) of the Omnibus Budget 
Reconciliation Act of 1981, including any revision required by such 
section, applicable to a family of the size involved) who are not 
eligible under clause (i). An individual who is an ex-offender shall be 
eligible to participate in a transitional jobs program funded under 
this paragraph.
                            ``(iii) Methodology.--The Secretary may use 
                        any reasonable methodology in calculating 
                        whether program participants satisfying the 
                        requirements of clause (i), constitute \2/3\ or 
                        more of all participants, and whether program 
                        participants satisfying the requirements of 
                        clause (ii) constitute not more than \1/3\ of 
                        all such participants in a fiscal year.
                            ``(iv) Authority to provide work-related 
                        services to individuals who have reached the 5-
                        year limit.--A program operator under this 
                        paragraph may use the funds to provide 
                        transitional job program participation to 
                        individuals who, but for section 408(a)(7), 
                        would be eligible for assistance under the 
                        program funded under this part of the State in 
                        which the program operator is located.
                    ``(D) Relationship to other provisions of this 
                part.--
                            ``(i) Rules governing use of funds.--The 
                        provisions of section 404 (other than 
                        subsection (f) thereof) shall not apply to a 
                        grant made under this paragraph.
                            ``(ii) Administration.--Section 416 shall 
                        not apply to the programs under this paragraph.
                            ``(iii) Prohibition against use of grant 
                        funds for any other fund matching 
                        requirement.--An entity to which funds are 
                        provided under this paragraph shall not use any 
                        part of the funds to fulfill any obligation of 
                        any State or political subdivision under 
                        subsection (b) or section 418 or any other 
                        provision of this Act or other Federal law.
                            ``(iv) Deadline for expenditure.--An entity 
                        to which funds are provided under this 
                        paragraph shall remit to the Secretary of Labor 
                        any part of the funds that are not expended 
                        within 3 years after the date on which the 
                        funds are so provided.
                            ``(v) Regulations.--Within 90 days after 
                        the date of enactment of this paragraph, the 
                        Secretary of Labor, after consultation with the 
                        Secretary of Health and Human Services, shall 
                        prescribe such regulations as may be necessary 
                        to implement this paragraph.
                            ``(vi) Reporting requirements.--The 
                        Secretary of Labor, in consultation with the 
                        Secretary of Health and Human Services, shall 
                        establish requirements for the collection and 
                        maintenance of financial and program 
                        participant information and the reporting of 
                        such information by entities carrying out 
                        activities under this paragraph. Such reporting 
                        requirements shall include, at a minimum, that 
                        States report disaggregated data on individual 
                        program participants that include the 
                        following:
                                    ``(I) Demographic information about 
                                the program participant including 
                                education level, literacy level, and 
                                prior work experience.
                                    ``(II) Identity of the program 
                                operator that provides or provided 
                                services to the program participant, 
                                and the duration of participation.
                                    ``(III) The nature of education, 
                                training or other services received by 
                                the program participant.
                                    ``(IV) Reasons for the program 
                                participant's leaving the program.
                                    ``(V) Whether the program 
                                participant secured unsubsidized 
                                employment during or within 60 days 
                                after the employment of the participant 
                                in a transitional job, and if so, 
                                details about the participant's 
                                unsubsidized employment including 
                                industry, occupation, starting wages 
                                and hours, and availability of employer 
                                sponsored health insurance and sick and 
                                vacation leave.
                            ``(vii) Additional reporting 
                        requirements.--States shall collect and report 
                        followup data for a sampling of program 
                        participants reflecting their employment and 
                        earning status 12 months after entering 
                        unsubsidized employment.
                    ``(E) National competitive grants.--
                            ``(i) In general.--The Secretary of Labor 
                        shall award grants in accordance with this 
                        paragraph, in fiscal years 2003 through 2007, 
                        for transitional jobs programs proposed by 
                        eligible applicants, based on the following:
                                    ``(I) The extent to which the 
                                proposal seeks to provide services in 
                                multiple sites that include sites in 
                                more than 1 State.
                                    ``(II) The extent to which the 
                                proposal seeks to provide services in a 
                                labor market area or region that 
                                includes portions of more than 1 State.
                                    ``(III) The extent to which the 
                                proposal seeks to provide transitional 
                                jobs in a State.
                                    ``(IV) The extent to which the 
                                applicant proposes to provide 
                                transitional jobs in either rural areas 
                                or areas where there are a high 
                                concentration of residents with income 
                                that is less than the poverty line.
                                    ``(V) The effectiveness of the 
                                proposal in helping individuals who are 
                                least job ready move into unsubsidized 
                                jobs that provide pathways to stable 
                                employment and livable wages.
                            ``(ii) Eligible applicants.--In this 
                        paragraph, the term `eligible applicant' 
                        means--
                                    ``(I) a Workforce Investment Board 
                                for a local workforce area in a State;
                                    ``(II) a political subdivision of a 
                                State;
                                    ``(III) a State;
                                    ``(IV) an Indian tribe; or
                                    ``(V) a private entity.
                            ``(iii) Funding.--Subject to subparagraphs 
                        (F) and (G), of the amount appropriated in 
                        subparagraph (H) for a fiscal year, $25,000,000 
                        of such amount shall be used to make grants 
                        under this paragraph for that fiscal year.
                    ``(F) Funding for indian tribes.--1.5 percent of 
                the amount appropriated in subparagraph (H) for each 
                fiscal year shall be reserved for grants to Indian 
                tribes.
                    ``(G) Funding for evaluations of transitional jobs 
                programs.--1.5 percent of the amount appropriated in 
                subparagraph (H) for each fiscal year shall be reserved 
                for use by the Secretary to carry out subparagraph (I).
                    ``(H) Appropriations.--
                            ``(i) In general.--Out of any money in the 
                        Treasury of the United States not otherwise 
                        appropriated, there are appropriated for grants 
                        under this paragraph, $25,000,000 for each of 
                        fiscal years 2003 through 2007.
                            ``(ii) Availability.--The amounts made 
                        available pursuant to clause (i) shall remain 
                        available for such period as is necessary to 
                        make the grants provided for in this paragraph.
                    ``(I) Evaluation of transitional jobs programs.--
                The Secretary, in consultation with the Secretary of 
                Labor--
                            ``(i) shall develop a plan to evaluate the 
                        extent to which transitional jobs programs 
                        funded under this paragraph have been effective 
                        in promoting sustained, unsubsidized employment 
                        for each group of eligible participants;
                            ``(ii) may evaluate the use of such grants 
                        by such grantees/ as the Secretary deems 
                        appropriate, in accordance with an agreement 
                        entered into with the grantees after good-faith 
                        negotiations; and
                            ``(iii) should include the following 
                        outcome measures in the plan developed under 
                        clause (i):
                                    ``(I) Placements in unsubsidized 
                                employment.
                                    ``(II) Placements in unsubsidized 
                                employment that last for at least 12 
                                months, and the extent to which 
                                individuals are employed continuously 
                                for at least 12 months.
                                    ``(III) Earnings of individuals who 
                                obtain employment at the time of 
                                placement.
                                    ``(IV) Earnings of individuals 1 
                                year after placement.
                                    ``(V) The occupations and 
                                industries in which wage growth and 
                                retention performance is greatest.
                                    ``(VI) Average expenditures per 
                                participant.''.

SEC. 112. ENSURING TANF FUNDS ARE NOT USED TO DISPLACE PUBLIC 
              EMPLOYEES; APPLICATION OF WORKPLACE LAWS TO WELFARE 
              RECIPIENTS.

    (a) Welfare-to-Work Worker Protections.--
            (1) In general.--Section 403(a)(5)(I) (42 U.S.C. 
        603(a)(5)(I)) is amended--
                    (A) by striking clauses (i) and (iv);
                    (B) by redesignating clauses (v) and (vi) as 
                clauses (iv) and (v), respectively; and
                    (C) by inserting before clause (ii), the following:
                            ``(i) Nondisplacement.--
                                    ``(I) In general.--An adult in a 
                                family receiving assistance under a 
                                State program funded under this part, 
                                in order to engage in a work activity, 
                                shall not displace any employee or 
                                position (including partial 
                                displacement, such as a reduction in 
                                the hours of nonovertime work, wages, 
                                or employment benefits) or fill any 
                                unfilled vacancy.
                                    ``(II) Prohibitions.--A work 
                                activity engaged in under a program 
                                operated with funds provided under this 
                                paragraph shall not impair any existing 
                                contract for services, be inconsistent 
                                with any existing law, regulation, or 
                                collective bargaining agreement, or 
                                infringe upon the recall rights or 
                                promotional opportunities of any 
                                worker.
                                    ``(III) No supplanting of other 
                                hires.--A work activity engaged in 
                                under a program operated with funds 
                                provided under this paragraph shall be 
                                in addition to any activity that 
                                otherwise would be available and shall 
                                not supplant the hiring of an employed 
                                worker not funded under such program.
                                    ``(IV) Enforcing antidisplacement 
                                protections.--
                                            ``(aa) In general.--The 
                                        State shall establish and 
                                        maintain an impartial grievance 
                                        procedure to resolve any 
                                        complaints alleging violations 
                                        of the requirements of 
                                        subclause (I), (II), or (III) 
                                        within 60 days of receipt of 
                                        the complaint and, if a 
                                        decision is adverse to the 
                                        party who filed such grievance 
                                        or no decision has been 
                                        reached, provide for the 
                                        completion of an arbitration 
                                        procedure within 75 days of 
                                        receipt of the complaint or the 
                                        adverse decision or conclusion 
                                        of the 60-day period, whichever 
                                        is earlier.
                                            ``(bb) Appeals.--Appeals 
                                        may be made to the Secretary 
                                        who shall make a decision 
                                        within 75 days.
                                            ``(cc) Remedies.--Remedies 
                                        for a violation of the 
                                        requirements of subclause (I), 
                                        (II), or (III) shall include 
                                        termination or suspension of 
                                        payments, prohibition of the 
                                        placement of the participant, 
                                        reinstatement of an employee, 
                                        and other relief to make an 
                                        aggrieved employee whole.
                                            ``(dd) Limitation on 
                                        placement.--If a grievance is 
                                        filed regarding a proposed 
                                        placement of a participant, 
                                        such placement shall not be 
                                        made unless such placement is 
                                        consistent with the resolution 
                                        of the grievance pursuant to 
                                        this subclause.''.
            (2) State plan requirement.--Section 402(a)(1)(A) (42 
        U.S.C. 602(a)(1)(A)) is amended by adding at the end the 
        following:
                            ``(vii) In the case of a State that 
                        receives a welfare-to-work grant under section 
                        403(a)(5), ensure compliance with 
the nondisplacement requirements of subparagraph (I)(i) of that 
section.''.
    (b) Application of Workplace Laws to Welfare Recipients.--
Notwithstanding any other provision of law, workplace laws, including 
the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), the 
Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.), 
title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), 
and the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
seq.), shall apply to an individual who is a recipient of assistance 
under the temporary assistance to needy families program funded under 
part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) 
in the same manner as such laws apply to other workers. The fact that 
an individual who is a recipient of assistance under the temporary 
assistance to needy families program is participating in, or seeking to 
participate in work activities under that program in satisfaction of 
the work activity requirements of the program, shall not deprive the 
individual of the protection of any Federal, State, or local workplace 
law.

                    TITLE II--STRENGTHENING FAMILIES

                   Subtitle A--Responsible Fatherhood

SEC. 201. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.

    (a) In General.--Part D of title IV (42 U.S.C. 651 et seq.) is 
amended by adding at the end the following:

``SEC. 469C. BLOCK GRANTS TO STATES FOR MEDIA CAMPAIGNS PROMOTING 
              RESPONSIBLE FATHERHOOD.

    ``(a) Definitions.--In this section:
            ``(1) Broadcast advertisement.--The term `broadcast 
        advertisement' means a communication intended to be aired by a 
        television or radio broadcast station, including a 
        communication intended to be transmitted through a cable 
        channel.
            ``(2) Child at risk.--The term `child at risk' means each 
        young child whose family income does not exceed the poverty 
        line.
            ``(3) Poverty line.--The term `poverty line' has the 
        meaning given such term in section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981 (including any revision required by 
        such section) that is applicable to a family of the size 
        involved.
            ``(4) Printed or other advertisement.--The term `printed or 
        other advertisement' includes any communication intended to be 
        distributed through a newspaper, magazine, outdoor advertising 
        facility, mailing, or any other type of general public 
        advertising, but does not include any broadcast advertisement.
            ``(5) State.--The term `State' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            ``(6) Young child.--The term `young child' means an 
        individual under age 5.
    ``(b) State Certifications.--Not later than October 1 each fiscal 
year for which a State desires to receive an allotment under this 
section, the chief executive officer of the State shall submit to the 
Secretary a certification that the State will--
            ``(1) use such funds to promote the formation and 
        maintenance of married 2-parent families, strengthen fragile 
        families, and promote responsible fatherhood through media 
        campaigns conducted in accordance with the requirements of 
        subsection (d);
            ``(2) return any unused funds to the Secretary in 
        accordance with the reconciliation process under subsection 
        (e); and
            ``(3) comply with the reporting requirements under 
        subsection (f).
    ``(c) Payments to States.--For each of fiscal years 2003 through 
2007, the Secretary shall pay to each State that submits a 
certification under subsection (b), from any funds appropriated under 
subsection (h), for the fiscal year an amount equal to the amount of 
the allotment determined for the fiscal year under subsection (g).
    ``(d) Establishment of Media Campaigns.--Each State receiving an 
allotment under this section for a fiscal year shall use the allotment 
to conduct media campaigns as follows:
            ``(1) Conduct of media campaigns.--
                    ``(A) Radio and television media campaigns.--
                            ``(i) Production of broadcast 
                        advertisements.--At the option of the State, to 
                        produce broadcast advertisements that promote 
                        the formation and maintenance of married 2-
                        parent families, strengthen fragile families, 
                        and promote responsible fatherhood.
                            ``(ii) Air time challenge program.--At the 
                        option of the State, to establish an air time 
                        challenge program under which the State may 
                        spend amounts allotted under this section to 
                        purchase time from a broadcast station to air a 
                        broadcast advertisement produced under clause 
                        (i), but only if the State obtains an amount of 
                        time of the same class and during a comparable 
                        period to air the advertisement using non-
                        Federal contributions.
                    ``(B) Other media campaigns.--At the option of the 
                State, to conduct a media campaign that consists of the 
                production and distribution of printed or other 
                advertisements that promote the formation and 
                maintenance of married 2-parent families, strengthen 
                fragile families, and promote responsible fatherhood.
            ``(2) Administration of media campaigns.--A State may 
        administer media campaigns funded under this section directly 
        or through grants, contracts, or cooperative agreements with 
        public agencies, local governments, or private entities, 
        including charitable and religious organizations.
            ``(3) Consultation with domestic violence assistance 
        centers.--In developing broadcast and printed advertisements to 
        be used in the media campaigns conducted under paragraph (1), 
        the State or other entity administering the campaign shall 
        consult with representatives of State and local domestic 
        violence centers.
            ``(4) Non-federal contributions.--In this subsection, the 
        term `non-Federal contributions' includes contributions by the 
        State and by public and private entities. Such contributions 
        may be in cash or in kind. Such term does not include any 
        amounts provided by the Federal Government, or services 
        assisted or subsidized to any significant extent by the Federal 
        Government, or any amount expended by a State before October 1, 
        2002.
    ``(e) Reconciliation Process.--
            ``(1) 3-year availability of amounts allotted.--Each State 
        that receives an allotment under this section shall return to 
        the Secretary any unused portion of the amount allotted to a 
        State under this section for a fiscal year not later than the 
        last day of the second succeeding fiscal year together with any 
        earnings on such unused portion.
            ``(2) Procedure for redistribution of unused allotments.--
        The Secretary shall establish an appropriate procedure for 
        redistributing to States that have expended the entire amount 
        allotted under this section any amount that is--
                    ``(A) returned to the Secretary by States under 
                paragraph (1); or
                    ``(B) not allotted to a State under this section 
                because the State did not submit a certification under 
                subsection (b) by October 1 of a fiscal year.
    ``(f) Reporting Requirements.--
            ``(1) Monitoring and evaluation.--Each State receiving an 
        allotment under this section for a fiscal year shall monitor 
        and evaluate the media campaigns conducted using funds made 
        available under this section in such manner as the Secretary, 
        in consultation with the States, determines appropriate.
            ``(2) Annual reports.--Not less frequently than annually, 
        each State receiving an allotment under this section for a 
        fiscal year shall submit to the Secretary reports on the media 
        campaigns conducted under this section at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
    ``(g) Amount of Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), of 
        the amount appropriated for the purpose of making allotments 
        under this section for a fiscal year, the Secretary shall allot 
        to each State that submits a certification under subsection (b) 
        for the fiscal year an amount equal to the sum of--
                    ``(A) the amount that bears the same ratio to 50 
                percent of such funds as the number of young children 
                in the State (as determined by the Secretary based on 
                the most reliable data available) as bears to the 
                number of such children in all States; and
                    ``(B) the amount that bears the same ratio to 50 
                percent of such funds as the number of children at risk 
                in the State (as so determined) bears to the number of 
                such children in all States.
            ``(2) Minimum allotments.--No allotment for a fiscal year 
        under this section shall be less than--
                    ``(A) in the case of a State other than the 
                Commonwealth of Puerto Rico, the United States Virgin 
                Islands, Guam, American Samoa, and the Commonwealth of 
                the Northern Mariana Islands, 1 percent of the amount 
                appropriated for the fiscal year under subsection (h); 
                and
                    ``(B) in the case of the Commonwealth of Puerto 
                Rico, the United States Virgin Islands, Guam, American 
                Samoa, and the Commonwealth of the Northern Mariana 
                Islands, 0.5 percent of such amount.
            ``(3) Pro rata reductions.--The Secretary shall make such 
        pro rata reductions to the allotments determined under 
        paragraph (1) as are necessary to comply with the requirements 
        of paragraph (2).
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated $25,000,000 for each of fiscal years 2003 through 2007 for 
purposes of making allotments to States under this section.''.
    (b) Evaluation.--
            (1) In general.--The Secretary of Health and Human Services 
        shall conduct an evaluation of the impact of the media 
        campaigns funded under section 469C of the Social Security Act, 
        as added by subsection (a).
            (2) Report.--Not later than December 31, 2005, the 
        Secretary of Health and Human Services shall report to Congress 
        the results of the evaluation under paragraph (1).
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated $1,000,000 for fiscal year 2003 for purposes 
        of conducting the evaluation required under this subsection, to 
        remain available until expended.

SEC. 202. RESPONSIBLE FATHERHOOD BLOCK GRANT.

    (a) In General.--Part D of title IV (42 U.S.C. 651 et seq.), as 
amended by section 201, is amended by adding at the end the following:

``SEC. 469D. RESPONSIBLE FATHERHOOD BLOCK GRANT.

    ``(a) Definitions.--In this section:
            ``(1) Child at risk.--The term `child at risk' has the 
        meaning given such term in section 469C(a)(2).
            ``(2) Poverty line.--The term `poverty line' has the 
        meaning given such term in section 469C(a)(3).
            ``(3) State.--The term `State' has the meaning given such 
        term in section 469C(a)(5).
            ``(4) Young child.--The term `young child' has the meaning 
        given such term in section 469C(a)(6).
    ``(b) State Certifications.--Not later than October 1 of each 
fiscal year for which a State desires to receive an allotment under 
this section, the chief executive officer of the State shall submit to 
the Secretary a certification that the State will--
            ``(1) comply with the matching requirements under 
        subsection (c)(2);
            ``(2) use such funds--
                    ``(A) to promote responsible fatherhood; and
                    ``(B) to promote or sustain marriage in accordance 
                with subparagraph (A) or (B), respectively, of 
                subsection (d)(2);
            ``(3) return any unused funds to the Secretary in 
        accordance with the reconciliation process under subsection 
        (e); and
            ``(4) comply with the reporting requirements under 
        subsection (f).
    ``(c) Payments to States.--
            ``(1) In general.--Subject to paragraph (2), for each of 
        fiscal years 2003 through 2007, the Secretary shall pay to each 
        State that submits a certification described in subsection (b), 
        from any funds appropriated under subsection (h), for the 
        fiscal year an amount equal to the amount of the allotment 
        determined under subsection (g).
            ``(2) Matching requirement.--The Secretary may not make a 
        payment to a State under paragraph (1) unless the State agrees 
        that, with respect to the costs to be incurred by the State in 
        supporting the programs described in subsection (d), the State 
        will make available non-Federal contributions in an amount 
        equal to 25 percent of the amount of Federal funds paid to the 
        State under such paragraph.
            ``(3) Non-federal contributions.--In this subsection, the 
        term `non-Federal contributions' includes contributions by the 
        State and by public and private entities that may be in cash or 
        in kind, but does not include any amounts provided by the 
        Federal Government, or services assisted or subsidized to any 
        significant extent by the Federal Government or any amount 
        expended by a State before October 1, 2002.
    ``(d) Responsible Fatherhood Programs.--
            ``(1) Support of programs.--A State shall use the 
        allotments received under this section to support programs 
described in paragraph (2) directly or through a grant, contract, or 
cooperative agreement with any public agency, local government, or 
private entity (including any charitable or religious organization) 
with experience in administering such a program.
            ``(2) Programs described.--Responsible fatherhood programs 
        include programs that--
                    ``(A) promote marriage through such activities as 
                counseling, mentoring, disseminating information about 
                the benefits of marriage and 2-parent involvement for 
                children, enhancing relationship skills, teaching on 
                how to control aggressive behavior, and disseminating 
                information on the causes of domestic violence and 
                child abuse;
                    ``(B) sustain marriages through marriage 
                preparation programs, premarital counseling, marital 
                inventories, skills-based marriage education, financial 
                planning seminars, and divorce education and reduction 
                programs, including mediation and counseling;
                    ``(C) promote responsible parenting through such 
                activities as counseling, mentoring, disseminating 
                information about good parenting practices, skills-
                based parenting education, encouraging child support 
                payments, and other methods; and
                    ``(D) help fathers and their families avoid or 
                leave cash welfare and improve their economic status by 
                providing such activities as work first services, job 
                search, job training, subsidized employment, job 
                retention, job enhancement, and encouraging education, 
                including career-advancing education, dissemination of 
                employment materials, coordination with existing 
                employment services such as Welfare to Work and 
                referrals to local employment training initiatives, and 
                other methods.
            ``(3) Targeted low-income participants.--Not less than 50 
        percent of the participants in each program supported under 
        paragraph (1) shall be--
                    ``(A) parents of a child who is, or within the past 
                24 months has been, a recipient of assistance or 
                services under a State program funded under this part 
                and under a State program funded under part A; or
                    ``(B) parents, including an expectant parent or a 
                married parent, whose income (after adjustment for 
                court-ordered child support paid or received) does not 
                exceed 150 percent of the poverty line.
            ``(4) Consultation with domestic violence assistance 
        centers.--Each State or entity administering a program 
        supported under paragraph (1) shall consult with 
        representatives of State and local domestic violence centers.
            ``(5) Supplement not supplant.--Amounts allotted to a State 
        under this section shall be used to supplement and not supplant 
        other Federal, State, or local funds provided to the State 
        under this part or any other provision of law that are used to 
        support programs and activities similar to the responsible 
        fatherhood program described in paragraph (2).
            ``(6) Restrictions on use.--No amount allotted under this 
        section may be used for court proceedings on matters of child 
        visitation or child custody, or for legislative advocacy.
    ``(e) Reconciliation Process.--
            ``(1) 3-year availability of amounts allotted.--Each State 
        that receives an allotment under this section shall return to 
        the Secretary any unused portion of the amount allotted to a 
        State under this section for a fiscal year not later than the 
        last day of the second succeeding fiscal year, together with 
        any earnings on such unused portion.
            ``(2) Procedure for redistribution of unused allotments.--
        The Secretary shall establish an appropriate procedure for 
        redistributing to States that have expended the entire amount 
        allotted under this section any amount that is--
                    ``(A) returned to the Secretary by States under 
                paragraph (1); or
                    ``(B) not allotted to a State under this section 
                because the State did not submit a certification under 
                subsection (b) by October 1 of a fiscal year.
    ``(f) Reporting Requirements.--
            ``(1) Monitoring and evaluation.--Each State receiving an 
        allotment under this section shall monitor and evaluate the 
        programs supported using funds made available under this 
        section in such manner as the Secretary, in consultation with 
        the States, determines appropriate.
            ``(2) Annual reports.-Not less frequently than annually, 
        each State receiving an allotment under this section for a 
        fiscal year shall submit to the Secretary reports on the 
        programs supported under this section at such time, in such 
        manner, and containing such information as the Secretary may 
        reasonably require.
    ``(g) Amount of Allotments.--
            ``(1) In general.-Except as provided in paragraph (2), of 
        the amount appropriated for the purpose of making allotments 
        under this section for a fiscal year the Secretary shall allot 
        to each State that submits a certification under subsection (b) 
        for that fiscal year an amount equal to the sum of--
                    ``(A) the amount that bears the same ratio to 50 
                percent of such funds as the number of young children 
                in the State (as determined by the Secretary based on 
                the most reliable data available) as bears to the 
                number of such children in all States; and
                    ``(B) the amount that bears the same ratio to 50 
                percent of such funds as the number of children at risk 
                in the State (as so determined) bears to the number of 
                such children in all States.
            ``(2) Minimum allotments.-No allotment for a fiscal year 
        under this section shall be less than--
                    ``(A) in the case of a State other than the 
                Commonwealth of Puerto Rico, the United States Virgin 
Islands, Guam, American Samoa, and the Commonwealth of the Northern 
Mariana Islands, 1 percent of the amount appropriated for the fiscal 
year under subsection (h); and
                    ``(B) in the case of the Commonwealth of Puerto 
                Rico, the United States Virgin Islands, Guam, American 
                Samoa, and the Commonwealth of the Northern Mariana 
                Islands, 0.5 percent of such amount.
            ``(3) Pro rata reductions.--The Secretary shall make such 
        pro rata reductions to the allotments determined under 
        paragraph (1) as are necessary to comply with the requirements 
        of paragraph (2).
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated $50,000,000 for each of fiscal years 2003 through 2007 for 
purposes of making allotments to States under this section.''.
    (b) Evaluation and Report.--
            (1) Evaluation.--
                    (A) In general.--The Secretary of Health and Human 
                Services (in this subsection referred to as the 
                ``Secretary''), in consultation with the Secretary of 
                Labor, shall, directly or through a grant, contract, or 
                interagency agreement, conduct an evaluation of the 
                projects funded under section 469D of the Social 
                Security Act (as added by subsection (a)).
                    (B) Outcomes assessment.--The evaluation conducted 
                under subparagraph (A) shall assess, among other 
                outcomes selected by the Secretary, effects of the 
                projects on marriage, parenting, employment, earnings, 
                payment of child support, and incidence of domestic 
                violence and child abuse.
                    (C) Project selection.--In selecting projects for 
                the evaluation, the Secretary should include projects 
                that are most likely to further the purposes of this 
                section.
                    (D) Random assignment.--In conducting the 
                evaluation, random assignment should be used wherever 
                possible.
            (2) Report.--Not later than December 31, 2005, the 
        Secretary shall submit to Congress a report on the results of 
        the evaluation conducted under paragraph (1).
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated $1,000,000 for each of fiscal years 2003 
        through 2007 to carry out this subsection.

SEC. 203. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD PROGRAMS.

    Part D of title IV (42 U.S.C. 651), as amended by section 202, is 
amended by adding at the end the following:

``SEC. 469E. MEDIA CAMPAIGN AND NATIONAL CLEARINGHOUSE FOR RESPONSIBLE 
              FATHERHOOD.

    ``(a) Media Campaign and National Clearinghouse.--
            ``(1) In general.--From any funds appropriated under 
        subsection (c), the Secretary shall contract with a nationally 
        recognized, nonprofit fatherhood promotion organization 
        described in subsection (b) to--
                    ``(A) develop, promote, and distribute to 
                interested States, local governments, public agencies, 
                and private entities a media campaign that encourages 
                the appropriate involvement of both parents in the life 
                of any child of the parents, with a priority for 
                programs that specifically address the issue of 
                responsible fatherhood; and
                    ``(B) develop a national clearinghouse to assist 
                States and communities in efforts to promote and 
                support marriage and responsible fatherhood by 
                collecting, evaluating, and making available (through 
                the Internet and by other means) to other States 
                information regarding the media campaigns established 
                under section 469C.
            ``(2) Coordination with domestic violence programs.--The 
        Secretary shall ensure that the nationally recognized nonprofit 
        fatherhood promotion organization with a contract under 
        paragraph (1) coordinates the media campaign developed under 
        subparagraph (A) of such paragraph and the national 
        clearinghouse developed under subparagraph (B) of such 
        paragraph with a national, State, or local domestic violence 
        program.
    ``(b) Nationally Recognized, Nonprofit Fatherhood Promotion 
Organization Described.--The nationally recognized, nonprofit 
fatherhood promotion organization described in this subsection is such 
an organization that has at least 4 years of experience in--
            ``(1) designing and disseminating a national public 
        education campaign, including the production and successful 
        placement of television, radio, and print public service 
        announcements that promote the importance of responsible 
        fatherhood; and
            ``(2) providing consultation and training to community-
        based organizations interested in implementing fatherhood 
        outreach, support, or skill development programs with an 
        emphasis on promoting married fatherhood as the ideal.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated $50,000,000 for fiscal year 2003 to carry out this 
section.''.

SEC. 204. POLICY REVIEWS AND DEMONSTRATION PROJECTS TO COORDINATE 
              SERVICES FOR LOW-INCOME, NONCUSTODIAL PARENTS.

    Part D of title IV (42 U.S.C. 651), as amended by section 203, is 
amended by adding at the end the following:

``SEC. 469F. GRANTS TO CONDUCT POLICY REVIEWS AND DEMONSTRATION 
              PROJECTS TO COORDINATE SERVICES FOR LOW-INCOME, 
              NONCUSTODIAL PARENTS.

    ``(a) Policy Reviews.--The Secretary shall make grants to States 
desiring to conduct policy reviews and develop recommendations with the 
goals of--
            ``(1) obtaining and retaining employment, increasing child 
        support payments, and increasing the involvement of low-income, 
noncustodial parents with their children; and
            ``(2) coordinating policies and services for low-income, 
        noncustodial parents among the different systems or programs in 
        which such parents are involved, including the criminal justice 
        system, the State program funded under part A, the State 
        program funded under this part, and job training or employment 
        programs.
    ``(b) Demonstration Projects.--
            ``(1) In general.--The Secretary shall make grants to 
        States desiring to conduct a demonstration project for the 
        purpose of--
                    ``(A) testing innovative policies and to better 
                coordinate policies and services for low-income, 
                noncustodial parents to accomplish the goals described 
                in subsection (a); or
                    ``(B) if the State conducted a policy review with a 
                grant made under subsection (a) and desires to 
                implement the recommendations of that review, 
                implementing such recommendations.
            ``(2) Use of funds.--Funds made available under a grant 
        made under this subsection may be used to provide a wide 
        variety of services to, and to implement policies regarding, 
        low-income, noncustodial parents, including providing economic 
        incentives (with or without penalty) to increase the employment 
        of such parents or to increase the amount of child support paid 
        by such parents.
    ``(c) Application.--A State desiring to receive a grant to conduct 
a policy review under subsection (a) or a grant to conduct a 
demonstration project under subsection (b) shall submit an application 
to the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
    ``(d) Authorization of Appropriations.--Out of any money in the 
Treasury of the United States not otherwise appropriated, there are 
authorized to be appropriated to carry out this section, $30,000,000 
for each of fiscal years 2003 through 2007.''.

        Subtitle B--Additional Provisions To Strengthen Families

SEC. 211. BAN ON IMPOSITION OF STRICTER ELIGIBILITY CRITERIA FOR 2-
              PARENT FAMILIES.

    (a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)) is amended by 
adding at the end the following:
            ``(12) Ban on imposition of stricter eligibility criteria 
        for 2-parent families.--In determining the eligibility of a 2-
        parent family for assistance under a State program funded under 
        this part, the State shall not impose a requirement that does 
        not apply in determining the eligibility of a 1-parent family 
        for such assistance.''.
    (b) Penalty.--Section 409(a) (42 U.S.C. 609(a)) is amended by 
adding at the end the following:
            ``(15) Penalty for imposition of stricter eligibility 
        criteria for 2-parent families.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 for 
                a fiscal year has violated section 408(a)(12) during 
                the fiscal year, the Secretary shall reduce the grant 
                payable to the State under section 403(a)(1) for the 
                immediately succeeding fiscal year by an amount equal 
                to 5 percent of the State family assistance grant.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) with respect to a fiscal year based on the degree 
                of noncompliance.''.

SEC. 212. NONCUSTODIAL PARENT EMPLOYMENT GRANT PROGRAM.

    (a) Authority To Award Grants.--The Secretary of Health and Human 
Services and the Secretary of Labor (in this section referred to as the 
``Secretaries'') jointly shall award grants to eligible States for the 
purpose of establishing, in coordination with counties and other local 
governments, court-supervised employment programs for noncustodial 
parents who have a history of nonpayment of child support obligations, 
as determined by a court, and who are determined by the court to be in 
need of employment services or placement in order to pay such child 
support obligations. A noncustodial parent described in the preceding 
sentence who is an ex-offender shall be eligible to participate in a 
program established with a grant made under this section.
    (b) Eligible State.--In this section, the term ``eligible State'' 
means a State that has obtained a commitment from at least 1 county 
within the State to establish a court-supervised employment program to 
provide noncustodial parents described in subsection (a) with an option 
to participate in that program prior to the court entering a finding 
that the noncustodial parent is in contempt of court for failure to pay 
a child support obligation and, possibly be subject to criminal 
penalties.
    (c) Administration.--An eligible State that receives a grant under 
this section may contract with a public, private, faith-based or 
community-based organization to administer (in conjunction with the 
court of jurisdiction) the court-supervised employment program .
    (d) Program Goals and Requirement.--
            (1) Goals.--The goals of a court-supervised employment 
        program established with funds made available under a grant 
        made under this section shall include the following:
                    (A) To assist noncustodial parents described in 
                subsection (a) establish a pattern of regular child 
                support payments by obtaining and maintaining 
                unsubsidized employment.
                    (B) To increase the dollar amount and total number 
                of court-ordered child support collected.
                    (C) To help noncustodial parents described in 
                subsection (a) improve relationships with their 
                children.
            (2) Requirement.--A court-supervised employment program 
        established with funds made available under a grant made under 
        this section shall not permit a noncustodial parent placed in 
        the program to graduate from the program and avoid penalties 
        for failure to pay a child support obligation until the 
        noncustodial parent completes at least 6 months of continuous, 
timely payment of the parent's child support obligations.
    (e) Use of Funds.--Services provided under a court-supervised 
employment program established with funds made available under a grant 
made under this section may include the following:
            (1) Job development.
            (2) Supervised job search.
            (3) Job placement.
            (4) Case management.
            (5) Court liaison services.
            (6) Educational assessment.
            (7) Educational referrals.
            (8) Vocational assessment.
            (9) Counseling on responsible fatherhood.
            (10) Support funds for services such as transportation or 
        short-term training.
            (11) Referral for support services.
            (12) Employment retention services.
            (13) Outreach to community agencies concerning bonding 
        programs.
    (f) Amount of Grants.--
            (1) In general.--The Secretaries shall determine the amount 
        of each grant to be awarded under this section, taking into 
        account the number of counties participating in an eligible 
        State and the population of the noncustodial parents to be 
        served by the employment programs in that State.
            (2) Priority for certain programs.--In awarding grants 
        under this section, the Secretaries shall give priority to 
        eligible States with programs that are designed to target 
        noncustodial parents whose income does not exceed 150 percent 
        of the poverty line (as defined in section 673(2) of the 
        Community Services Block Grant Act (42 U.S.C. 9902(2)), 
        including any revision required by such section applicable to a 
        family of the size involved).
    (g) Matching Requirement.--
            (1) In general.--The Secretaries may not award a grant to 
        an eligible State under this section unless the eligible State 
        agrees that, with respect to the costs to be incurred by the 
        eligible State in supporting the court-supervised employment 
        program established with funds provided under the grant, the 
        State will make available non-Federal contributions in an 
        amount equal to 25 percent of the amount of Federal funds paid 
        to the State under such grant.
            (2) Non-federal contributions.--In this subsection, the 
        term ``non-Federal contributions'' includes contributions by 
        the State and by public and private entities that may be in 
        cash or in kind, but does not include any amounts provided by 
        the Federal Government, or services assisted or subsidized to 
        any significant extent by the Federal Government or any amount 
        expended by a State before October 1, 2002.
    (h) Application.--In order to receive a grant under this section, 
an eligible State shall submit an application to the Secretaries, at 
such time and in such manner as the Secretaries may require, and that 
includes the following:
            (1) Evidence of an agreement between the State and 1 or 
        more counties to establish a court-supervised employment 
        program that meets the requirements of this section.
            (2) The number of potential noncustodial parents to be 
        served by the program.
            (3) The purposes specific to that State's program.
            (4) The income of the target population.
            (5) The amount of proposed grant funds to be awarded.
            (6) A certification that the State matching requirements of 
        subsection (g) will be satisfied if the grant is awarded to 
        that State.
            (7) Such other information as the Secretaries deem 
        appropriate.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to award grants under this section, $200,000,000 for each 
of fiscal years 2003 through 2007.

              Subtitle C--Teen Pregnancy Prevention Grants

SEC. 221. TEEN PREGNANCY PREVENTION GRANTS.

    Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read as 
follows:
            ``(2) Grants to prevent teen pregnancy.--
                    ``(A) Submission of plan.--
                            ``(i) In general.--Each State that submits 
                        a plan that meets the requirements of clause 
                        (ii) shall be entitled to receive from the 
                        Secretary a teen pregnancy prevention grant in 
                        the amount determined under subparagraph (B) 
                        for each of fiscal years 2003 through 2007.
                            ``(ii) Plan requirements.--A plan meets the 
                        requirements of this clause if the plan--
                                    ``(I) describes the State's 
                                numerical goal for reducing teen 
                                pregnancy and teen births;
                                    ``(II) identifies the strategies to 
                                be used to achieve such goal; and
                                    ``(III) describes the efforts the 
                                State will make to involve young men, 
                                as well as young women, in delaying 
                                pregnancy and parenting.
                    ``(B) Grant amount.--
                            ``(i) In general.--The Secretary shall 
                        allot to each State with a plan approved under 
                        subparagraph (A) an amount equal to--
                                    ``(I) with respect to fiscal year 
                                2003, the amount that bears the same 
                                ratio to the amount of funds 
                                appropriated under subparagraph (G) for 
                                such fiscal year as the proportion of 
                                births in the State to teens under age 
                                20 bears to the number of such births 
                                in all States; and
                                    ``(II) with respect to each of 
                                fiscal years 2004 through 2007, the 
                                amount that bears the same ratio to 50 
                                percent of the amount of funds 
                                appropriated under subparagraph (G) for 
                                each such fiscal year as the proportion 
                                of births in the State to teens under 
                                age 20 bears to the number of such 
                                births in all States.
                            ``(ii) Incentive funds.--In addition to the 
                        amount determined for a State under clause 
                        (i)(II), in the case of a State that is a high 
                        achieving State (as defined in clause (iii)), 
                        the Secretary shall allot to such high 
                        achieving State with respect to each of fiscal 
                        years 2004 through 2007, the amount that bears 
                        the same ratio to 50 percent of the amount of 
                        funds appropriated under subparagraph (G) for 
                        each such fiscal year as the proportion of 
                        teens under age 20 in the high achieving State 
                        bears to the number of such teens in all such 
                        high achieving States.
                            ``(iii) Definition of high achieving 
                        state.--In this paragraph, the term `high 
                        achieving State' means a State that has 
                        achieved an annual decline in the teen birth 
                        rate for the State as compared to the preceding 
year (or the most recent year for which data is available) of at least 
2.5 percent.
                            ``(iv) Determination of teen birth rates.--
                        For purposes of this subparagraph, the teen 
                        birth rate for a State shall be determined on 
                        the basis of the birth rate per 1,000 women, 
                        ages 15 through 19, who reside in the State.
                    ``(C) Use of funds.--A State shall use funds 
                provided under a grant made under this paragraph to 
                implement teen pregnancy prevention strategies that--
                            ``(i) are abstinence-first, in that the 
                        strategies use a message that strongly 
                        emphasizes abstinence as the only certain way 
                        to avoid pregnancy and sexually transmitted 
                        infections while still allowing State 
                        flexibility to discuss other prevention 
                        methods;
                            ``(ii) replicate or substantially 
                        incorporate the elements of 1 or more teen 
                        pregnancy prevention programs that have been 
                        proven (on the basis of rigorous scientific 
                        research) to delay or decrease sexual 
                        intercourse or sexual activity or reduce 
                        teenage pregnancy; and
                            ``(iii) incorporate 1 or more of the 
                        following strategies for preventing teen 
                        pregnancy--
                                    ``(I) encouraging teenagers to 
                                delay sexual activity;
                                    ``(II) youth development programs;
                                    ``(III) community or service 
                                learning programs; or
                                    ``(IV) outreach or media programs.
                    ``(D) Subgrant or contract recipients.--
                            ``(i) In general.--Subject to clause (ii), 
                        a State to which a grant is made under this 
                        paragraph for a fiscal year may award subgrants 
                        or contracts to--
                                    ``(I) State or local nonprofit 
                                coalitions working to prevent teenage 
                                pregnancy;
                                    ``(II) State, local, or tribal 
                                agencies;
                                    ``(III) schools;
                                    ``(IV) entities that provide after 
                                school programs;
                                    ``(V) nonprofit community or faith-
                                based organizations; or
                                    ``(VI) other organizations 
                                designated by the State.
                            ``(ii) Set-aside for tribal agencies.--Not 
                        less than an amount equal to 1.5 percent of the 
                        amount of a grant made to a State under this 
                        paragraph for a fiscal year shall be used to 
                        award subgrants or contracts to tribal 
                        agencies.
                    ``(E) Supplementation of funds.--A State to which a 
                grant is made under this paragraph for a fiscal year 
                shall use funds provided under the grant to supplement 
                and not supplant funds that would otherwise be 
                available to the State for preventing teen pregnancy.
                    ``(F) Data reporting.--A State to which a grant is 
                made under this paragraph for a fiscal year shall 
                cooperate with the Secretary to collect information and 
                report on outcomes of programs funded under the grant, 
                as specified by the Secretary.
                    ``(G) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for making grants 
                under this paragraph--
                            ``(i) for fiscal year 2003, $50,000,000; 
                        and
                            ``(ii) for each of fiscal years 2004 
                        through 2007, $100,000,000.''.

SEC. 222. TEEN PREGNANCY PREVENTION RESOURCE CENTER.

    (a) Authority To Establish.--
            (1) In general.--The Secretary of Health and Human Services 
        (in this section referred to as the ``Secretary'') shall make a 
        grant to a nationally recognized, nonpartisan, nonprofit 
        organization that meets the requirements described in paragraph 
        (2) to establish and operate a national teen pregnancy 
        prevention resource center (in this section referred to as the 
        ``Resource Center'') to carry out the purposes and activities 
        described in subsection (b).
            (2) Contractor requirements.--The requirements described in 
        this paragraph are the following:
                    (A) The organization has at least 5 years of 
                experience in working with diverse sectors of society 
                to reduce teen pregnancy.
                    (B) The organization has a demonstrated ability to 
                work with and provide assistance to a broad range of 
                individuals and entities, including teens, parents, the 
                entertainment and news media, State, tribal, and local 
                organizations, networks of teen pregnancy prevention 
                practitioners, businesses, faith and community leaders, 
                and researchers.
                    (C) The organization is research-based and has 
                capabilities in scientific analysis and evaluation.
                    (D) The organization has comprehensive knowledge 
                and data about teen pregnancy prevention strategies.
                    (E) The organization has experiences operating a 
                resource center that carries out activities similar to 
                the activities described in subsection (b)(2).
    (b) Purposes and Activities.--
            (1) Purposes.--The purposes of the Resource Center are to--
                    (A) provide information and technical assistance to 
                States, Indian tribes, local communities, and other 
                public or private organizations seeking to reduce rates 
                of teen pregnancy; and
                    (B) assist such entities in their efforts to work 
                through all forms of media to communicate effective 
                messages about preventing teen pregnancy, including 
                messages that focus on abstinence, responsible 
                behavior, family communication, relationships, and 
                values.
            (2) Activities.--The Resource Center shall carry out the 
        purposes described in paragraph (1) through the following 
        activities:
                    (A) Synthesizing and disseminating research and 
                information regarding effective and promising practices 
                to prevent teen pregnancy.
                    (B) Developing and providing information on how to 
                design and implement effective programs to prevent teen 
                pregnancy.
                    (C) Helping States, local communities, and other 
                organizations increase their knowledge of existing 
                resources that can be used to advance teen pregnancy 
                prevention efforts.
                    (D) Linking organizations working to reduce teen 
                pregnancy with experts and peer groups, including the 
creation of technical assistance networks.
                    (E) Providing consultation and resources on how to 
                reduce teen pregnancy through a broad array of 
                strategies, including enlisting the help of various 
                sectors of society such as parents, other adults (such 
                as coaches and mentors), community or faith-based 
                groups, the entertainment and news media, business, and 
                other teens.
                    (F) Working directly with individuals and 
                organizations in the entertainment industry to provide 
                consultation and serve as a source of factual 
                information on issues related to teen pregnancy 
                prevention.
    (c) Media Campaigns.--
            (1) In general.--The organization operating the Resource 
        Center may use a portion of the funds appropriated to carry out 
        this section to develop and implement media campaigns directly 
        or through grants, contracts, or cooperative agreements with 
        other entities. Such campaigns may include the production and 
        distribution of printed materials and messages for print media, 
        television and radio broadcast media, the Internet, or such 
        other media as may be appropriate for reaching large numbers of 
        young people and their parents.
            (2) Matching.--To the extent possible, funds used to 
        develop and implement media campaigns under this subsection 
        should be matched with non-Federal resources, including in-kind 
        contributions, from public and private entities.
    (d) Collaboration With Other Organizations.--The organization 
operating the Resource Center shall collaborate with other nonprofit 
organizations that have expertise and interest in teen pregnancy 
prevention.
    (e) Evaluation.--
            (1) Reservation and availability of funds.--Of the amount 
        appropriated under subsection (f) for fiscal year 2003, 
        $5,000,000 shall be reserved for use by the Secretary of Health 
        and Human Services to prepare an interim and final report 
        summarizing and synthesizing outcomes and lessons learned from 
        the activities funded under this section. Funds reserved under 
        the preceding sentence shall remain available for expenditure 
        through fiscal year 2007.
            (2) Required information.--Each report required under 
        paragraph (1) shall include--
                    (A) a rigorous scientific evaluation of at least 3 
                such activities that are selected to represent a 
                diversity of strategies; and
                    (B) an assessment of the ability to replicate and 
                expand activities that have proven effective on a 
                smaller scale.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Health and Human Services to carry out 
this section, $10,000,000 for each of fiscal years 2003 through 2007.

SEC. 223. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.

    Section 905 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (42 U.S.C. 710 note) is amended to read as 
follows:

``SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.

    ``(a) In General.--Not later than January 1, 2003, the Secretary of 
Health and Human Services shall establish a national goal of reducing 
teen pregnancy by at least 25 percent by January 1, 2013.
    ``(b) Report.--Not later than June 30, 2003, and annually 
thereafter, the Secretary of Health and Human Services shall report to 
Congress with respect to the progress that has been made in meeting the 
national goal established under subsection (a).''.

        Subtitle D--Child Support Distribution to Families First

                CHAPTER 1--DISTRIBUTION OF CHILD SUPPORT

SEC. 231. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF 
              OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.

    (a) Modification of Rule Requiring Assignment of Support Rights as 
a Condition of Receiving TANF.--Section 408(a)(3) (42 U.S.C. 608(a)(3)) 
is amended to read as follows:
            ``(3) No assistance for families not assigning certain 
        support rights to the state.--A State to which a grant is made 
        under section 403 shall require, as a condition of paying 
        assistance to a family under the State program funded under 
        this part, that a member of the family assign to the State any 
        rights the family member may have (on behalf of the family 
        member or of any other person for whom the family member has 
        applied for or is receiving such assistance) to support from 
        any other person, not exceeding the total amount of assistance 
        so paid to the family, which accrues during the period that the 
        family receives assistance under the program.''.
    (b) Increasing Child Support Payments to Families and Simplifying 
Child Support Distribution Rules.--
            (1) Distribution rules.--
                    (A) In general.--Section 457(a) (42 U.S.C. 657(a)) 
                is amended to read as follows:
    ``(a) In General.--Subject to subsections (d) and (e), the amounts 
collected on behalf of a family as support by a State pursuant to a 
plan approved under this part shall be distributed as follows:
            ``(1) Families receiving assistance.--In the case of a 
        family receiving assistance from the State, the State shall--
                    ``(A) pay to the Federal Government the Federal 
                share of the amount collected, subject to paragraph 
                (3)(A);
                    ``(B) retain, or pay to the family, the State share 
                of the amount collected, subject to paragraph (3)(B); 
                and
                    ``(C) pay to the family any remaining amount.
            ``(2) Families that formerly received assistance.--In the 
        case of a family that formerly received assistance from the 
        State:
                    ``(A) Current support.--To the extent that the 
                amount collected does not exceed the current support 
                amount, the State shall pay the amount to the family.
                    ``(B) Arrearages.--Except as otherwise provided in 
                the State plan approved under section 454, to the 
                extent that the amount collected exceeds the current 
                support amount, the State--
                            ``(i) shall first pay to the family the 
                        excess amount, to the extent necessary to 
                        satisfy support arrearages not assigned 
                        pursuant to section 408(a)(3);
                            ``(ii) if the amount collected exceeds the 
                        amount required to be paid to the family under 
                        clause (i), shall--
                                    ``(I) pay to the Federal 
                                Government, the Federal share of the 
                                excess amount described in this clause, 
                                subject to paragraph (3)(A); and
                                    ``(II) retain, or pay to the 
                                family, the State share of the excess 
                                amount described in this clause, 
                                subject to paragraph (3)(B); and
                            ``(iii) shall pay to the family any 
                        remaining amount.
            ``(3) Limitations.--
                    ``(A) Federal reimbursements.--The total of the 
                amounts paid by the State to the Federal Government 
                under paragraphs (1) and (2) with respect to a family 
                shall not exceed the Federal share of the amount 
                assigned with respect to the family pursuant to section 
                408(a)(3).
                    ``(B) State reimbursements.--The total of the 
                amounts retained by the State under paragraphs (1) and 
                (2) with respect to a family shall not exceed the State 
                share of the amount assigned with respect to the family 
                pursuant to section 408(a)(3).
            ``(4) Families that never received assistance.--In the case 
        of any other family, the State shall pay the amount collected 
        to the family.
            ``(5) Families under certain agreements.--Notwithstanding 
        paragraphs (1) through (4), in the case of an amount collected 
        for a family in accordance with a cooperative agreement under 
        section 454(33), the State shall distribute the amount 
        collected pursuant to the terms of the agreement.
            ``(6) State financing options.--To the extent that the 
        State share of the amount payable to a family pursuant to 
        paragraph (2)(B) exceeds the amount that the State estimates 
        (under procedures approved by the Secretary) would have been 
        payable to the family pursuant to former section 457(a)(2)(B) 
        (as in effect for the State on the day before the date this 
        subsection first applies to the State) if such former section 
        had remained in effect, the State may elect to use the grant 
        made to the State under section 403(a) to pay the amount, or to 
        have the payment considered a qualified State expenditure for 
        purposes of section 409(a)(7), but not both.
            ``(7) State option to pass through additional support with 
        federal financial participation.--
                    ``(A) In general.--Notwithstanding paragraphs (1) 
                and (2), a State shall not be required to pay to the 
                Federal Government the Federal share of an amount 
                collected on behalf of a family that is not a recipient 
                of assistance under the State program funded under part 
                A, to the extent that the State pays the amount to the 
                family.
                    ``(B) Recipients of tanf for less than 5 years.--
                            ``(i) In general.--Notwithstanding 
                        paragraphs (1) and (2), a State shall not be 
                        required to pay to the Federal Government the 
                        Federal share of an amount collected on behalf 
                        of a family that is a recipient of assistance 
                        under the State program funded under part A 
                        and, if the family includes an adult, that has 
                        received the assistance for not more than 5 
                        years after the date of enactment of this 
                        paragraph, to the extent that--
                                    ``(I) the State pays the amount to 
                                the family; and
                                    ``(II) subject to clause (ii), the 
                                amount is disregarded in determining 
                                the amount and type of the assistance 
                                provided to the family.
                            ``(ii) Limitation.--Of the amount 
                        disregarded as described in clause (i)(II), the 
                        maximum amount that may be taken into account 
                        for purposes of clause (i) shall not exceed 
                        $400 per month, except that, in the case of a 
                        family that includes 2 or more children, the 
                        State may elect to increase the maximum amount 
                        to not more than $600 per month.
            ``(8) States with demonstration waivers.--Notwithstanding 
        the preceding paragraphs, a State with a waiver under section 
        1115 that became effective on or before October 1, 1997, the 
        terms of which allow pass through of child support payments, 
        may pass through such payments in accordance with such terms 
        with respect to families subject to the waiver.''.
                    (B) State plan to include election as to which 
                rules to apply in distributing child support arrearages 
                collected on behalf of families formerly receiving 
                assistance.--Section 454 (42 U.S.C. 654) is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (32);
                            (ii) by striking the period at the end of 
                        paragraph (33) and inserting ``; and''; and
                            (iii) by inserting after paragraph (33) the 
                        following:
            ``(34) include an election by the State to apply section 
        457(a)(2)(B) or former section 457(a)(2)(B) (as in effect for 
        the State on the day before the date this paragraph first 
        applies to the State) to the distribution of the amounts which 
        are the subject of such sections, and for so long as the State 
        elects to so apply such former section, the amendments made by 
        section 211(b) of the Work and Family Act of 2002 shall not 
        apply with respect to the State, notwithstanding subsection 
        (f)(1) of such section 211.''.
                    (C) Approval of estimation procedures.--Not later 
                than October 1, 2002, the Secretary of Health and Human 
                Services, in consultation with the States (as defined 
                for purposes of part D of title IV of the Social 
                Security Act), shall establish the procedures to be 
                used to make the estimate described in section 
                457(a)(6) of such Act.
            (2) Current support amount defined.--Section 457(c) (42 
        U.S.C. 657(c)) is amended by adding at the end the following:
            ``(5) Current support amount.--The term `current support 
        amount' means, with respect to amounts collected as support on 
behalf of a family, the amount designated as the monthly support 
obligation of the noncustodial parent in the order requiring the 
support.''.
    (c) Ban on Recovery of Medicaid Costs for Certain Births.--Section 
454 (42 U.S.C. 654), as amended by subsection (b)(1)(B), is amended--
            (1) by striking ``and'' at the end of paragraph (33);
            (2) by striking the period at the end of paragraph (34) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (34) the following:
            ``(35) provide that the State shall not use the State 
        program operated under this part to collect any amount owed to 
        the State by reason of costs incurred under the State plan 
        approved under title XIX for the birth of a child for whom 
        support rights have been assigned pursuant to section 
        408(a)(3), 471(a)(17), or 1912.''.
    (d) State Option To Discontinue Certain Support Assignments.--
Section 457(b) (42 U.S.C. 657(b)) is amended by striking ``shall'' and 
inserting ``may, at State option,''.
    (e) Conforming Amendments.--
            (1) Section 404(a) (42 U.S.C. 604(a)) is amended--
                    (A) by striking ``or'' at the end of paragraph (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(3) to fund payment of an amount pursuant to section 
        457(a)(2)(B), but only to the extent that the State properly 
        elects under section 457(a)(6) to use the grant to fund the 
        payment.''.
            (2) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is 
        amended--
                    (A) in subclause (I)(aa), by striking 
                ``457(a)(1)(B)'' and inserting ``457(a)(1)''; and
                    (B) by adding at the end the following:
                                    ``(V) Portions of certain child 
                                support payments collected on behalf of 
                                and distributed to families no longer 
                                receiving assistance.--Such term does 
                                not include any amount paid by a State 
                                pursuant to section 457(a)(2)(B), but 
                                only to the extent that the State 
                                properly elects under section 457(a)(6) 
                                to not have the payment considered a 
                                qualified State expenditure.''.
    (f) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on October 1, 2005, and shall apply to payments 
        under parts A and D of title IV of the Social Security Act for 
        calendar quarters beginning on or after such date, and without 
        regard to whether regulations to implement the amendment (in 
        the case of State programs operated under such part D) are 
        promulgated by such date.
            (2) State option to accelerate effective date.--A State may 
        elect to have the amendment made by subsection (a), the 
        amendments made by subsections (b) and (e), or the amendment 
        made by subsection (d) apply to the State and to amounts 
        collected by the State, on and after such date as the State may 
        select that is after the date of enactment of this Act, by 
        including an election to that effect in the State plan under 
        part D of title IV of the Social Security Act.

   CHAPTER 2--DEMONSTRATIONS OF EXPANDED INFORMATION AND ENFORCEMENT

SEC. 241. GUIDELINES FOR INVOLVEMENT OF PUBLIC NON-IV-D CHILD SUPPORT 
              ENFORCEMENT AGENCIES IN CHILD SUPPORT ENFORCEMENT.

    (a) In General.--Not later than October 1, 2002, the Secretary, in 
consultation with States, local governments, and individuals or 
companies knowledgeable about involving public non-IV-D child support 
enforcement agencies in child support enforcement, shall develop 
recommendations which address the participation of public non-IV-D 
child support enforcement agencies in the establishment and enforcement 
of child support obligations. The matters addressed by the 
recommendations shall include substantive and procedural rules which 
should be followed with respect to privacy safeguards, data security, 
due process rights, administrative compatibility with Federal and State 
automated systems, eligibility requirements (such as registration, 
licensing, and posting of bonds) for access to information and use of 
enforcement mechanisms, recovery of costs by charging fees, penalties 
for violations of the rules, treatment of collections for purposes of 
section 458 of such Act (42 U.S.C. 658), and avoidance of duplication 
of effort.
    (b) Definitions.--In this title:
            (1) Child support.--The term ``child support'' has the 
        meaning given in section 459(i)(2) of the Social Security Act 
        (42 U.S.C. 659(i)(2)).
            (2) Public non-iv-d child support enforcement agency.--The 
        term ``public non-IV-D child support enforcement agency'' means 
        an agency, of a political subdivision of a State, which is 
        principally responsible for the operation of a child support 
        registry or for the establishment or enforcement of an 
        obligation to pay child support other than pursuant to the 
        State plan approved under part D of title IV of such Act (42 
        U.S.C. 651 et seq.), or a clerk of court office of a political 
        subdivision of a State.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (4) State.--The term ``State'' shall have the meaning given 
        in section 1101(a)(1) of the Social Security Act (42 U.S.C. 
        1301(a)(1)) for purposes of part D of title IV of such Act (42 
        U.S.C. 651 et seq.).

SEC. 242. DEMONSTRATIONS INVOLVING ESTABLISHMENT AND ENFORCEMENT OF 
              CHILD SUPPORT OBLIGATIONS BY PUBLIC NON-IV-D CHILD 
              SUPPORT ENFORCEMENT AGENCIES.

    (a) Purpose.--The purpose of this section is to determine the 
extent to which public non-IV-D child support enforcement agencies may 
contribute effectively to the establishment and enforcement of child 
support obligations by coordinating with law enforcement agencies, 
employment agencies and organizations, hospitals and other health care 
providers, and other stakeholders to establish methods to reach out to 
noncustodial parents with child support obligations and prevent 
nonpayment of such obligations.
    (b) Applications.--
            (1) Consideration.--The Secretary shall consider all 
        applications received from States desiring to conduct 
        demonstration projects under this section.
            (2) Preferences.--In considering which applications to 
        approve under this section, the Secretary shall give preference 
        to applications submitted by States that had a public non-IV-D 
        child support enforcement agency as of January 1, 2002.
            (3) Approval.--
                    (A) Timing; limitation on number of projects.--Not 
                later than July 1, 2003, the Secretary may approve not 
                more than 10 applications for projects providing for 
                the participation of a public non-IV-D child support 
                enforcement agency in the establishment and enforcement 
                of child support obligations, and, if the Secretary 
                receives at least 5 such applications that meet such 
                requirements as the Secretary may establish, shall 
                approve not less than 5 such applications.
                    (B) Requirements.--The Secretary may not approve an 
                application for a project unless--
                            (i) the applicant and the Secretary have 
                        entered into a written agreement which 
                        addresses at a minimum, privacy safeguards, 
                        data security, due process rights, automated 
                        systems, liability, oversight, and fees, and 
                        the applicant has made a commitment to conduct 
                        the project in accordance with the written 
                        agreement and such other requirements as the 
                        Secretary may establish;
                            (ii) the project includes a research plan 
                        (but such plan shall not be required to use 
                        random assignment) that is focused on assessing 
                        the costs and benefits of the project; and
                            (iii) the project appears likely to 
                        contribute significantly to the achievement of 
                        the purpose of this title.
    (c) Demonstration Authority.--On approval of an application 
submitted by a State under this section--
            (1) the State agency responsible for administering the 
        State plan under part D of title IV of the Social Security Act 
        (42 U.S.C. 651 et seq.) may, subject to the privacy safeguards 
        of section 454(26) of such Act (42 U.S.C. 654(26)), provide to 
        any public non-IV-D child support enforcement agency 
        participating in the demonstration project all information in 
        the State Directory of New Hires and any information obtained 
        through information comparisons under section 453(j)(3) of such 
        Act (42 U.S.C. 653(j)(3)) about an individual with respect to 
        whom the public non-IV-D agency is seeking to establish or 
        enforce a child support obligation, if the public non-IV-D 
        agency meets such requirements as the State may establish and 
        has entered into an agreement with the State under which the 
        public non-IV-D agency has made a binding commitment to carry 
        out establishment and enforcement activities with respect to 
        the child support obligation subject to the same data security, 
        privacy protection, and due process requirements applicable to 
        the State agency and in accordance with procedures approved by 
        the head of the State agency;
            (2) the State agency may charge and collect fees from any 
        such public non-IV-D agency to recover costs incurred by the 
        State agency in providing information and services to the 
        public non-IV-D agency under the demonstration project;
            (3) if a public non-IV-D child support enforcement agency 
        has agreed to collect past-due support (as defined in section 
        464(c) of such Act (42 U.S.C. 664(c))) owed by a named 
        individual, and the State agency has submitted a notice to the 
        Secretary of the Treasury pursuant to section 464 of such Act 
        on behalf of the public non-IV-D agency, then the Secretary of 
        the Treasury shall consider the State agency to have agreed to 
        collect such support for purposes of such section 464, and the 
        State agency may collect from the public non-IV-D agency any 
        fee which the State is required to pay for the cost of applying 
        the offset procedure in the case;
            (4) for so long as a public non-IV-D child support 
        enforcement agency is participating in the demonstration 
        project, the public non-IV-D agency shall be considered part of 
        the State agency for purposes of section 469A of such Act (42 
        U.S.C. 669a); and
            (5) for so long as a public non-IV-D child support 
        enforcement agency is participating in the demonstration 
        project, the public non-IV-D agency shall be considered part of 
        the State agency for purposes of section 303(e) of such Act (42 
        U.S.C. 503(e)) but only with respect to any child support 
        obligation that the public non-IV-D agency has agreed to 
        collect.
    (d) Waiver Authority.--The Secretary may waive or vary the 
applicability of any provision of section 303(e), 454(31), 464, 
466(a)(7), 466(a)(17), or 469A of the Social Security Act (42 U.S.C. 
503(e), 654(31), 664, 666(a)(7), 666(a)(17), 669a) to the extent 
necessary to enable the conduct of demonstration projects under this 
section, subject to the preservation of the data security, privacy 
protection, and due process requirements of part D of title IV of such 
Act (42 U.S.C. 651 et seq.).
    (e) Federal Audit.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct an audit of the demonstration projects 
        conducted under this section for the purpose of examining and 
        evaluating the manner in which information and enforcement 
        tools are used by the public non-IV-D child support enforcement 
        agencies participating in the projects.
            (2) Report to congress.--
                    (A) In general.--The Comptroller General of the 
                United States shall submit to Congress a report on the 
                audit required by paragraph (1).
                    (B) Timing.--The report required by subparagraph 
                (A) shall be so submitted not later than October 1, 
                2005.
    (f) Secretarial Report to Congress.--
            (1) In general.--The Secretary shall submit to Congress a 
        report on the demonstration projects conducted under this 
        section, which shall include the results of any research or 
        evaluation conducted pursuant to this title, and shall include 
        policy recommendations regarding the establishment and 
        enforcement of child support obligations by the agencies 
        involved.
            (2) Timing.--The report required by paragraph (1) shall be 
        so submitted not later than October 1, 2006.

SEC. 243. GAO REPORT TO CONGRESS ON PRIVATE CHILD SUPPORT ENFORCEMENT 
              AGENCIES.

    (a) In General.--Not later than October 1, 2002, the Comptroller 
General of the United States shall submit to Congress a report on the 
activities of private child support enforcement agencies that shall be 
designed to help Congress determine whether the agencies are providing 
a needed service in a fair manner using accepted debt collection 
practices and at a reasonable fee.
    (b) Matters To Be Addressed.--Among the matters addressed by the 
report required by subsection (a) shall be the following:
            (1) The number of private child support enforcement 
        agencies.
            (2) The types of debt collection activities conducted by 
        the private agencies.
            (3) The fees charged by the private agencies.
            (4) The methods used by the private agencies to collect 
        fees from custodial parents.
            (5) The nature and degree of cooperation the private 
        agencies receive from State agencies responsible for 
        administering State plans under part D of title IV of the 
        Social Security Act (42 U.S.C. 651 et seq.).
            (6) The extent to which the conduct of the private agencies 
        is subject to Federal or State regulation, and if so, the 
        extent to which the regulations are effectively enforced.
            (7) The amount of child support owed but uncollected and 
        changes in this amount in recent years.
            (8) The average period of time required for the completion 
        of successful enforcement actions yielding collections of past-
        due child support by both the child support enforcement 
        programs operated pursuant to State plans approved under part D 
        of title IV of the Social Security Act (42 U.S.C. 651 et seq.) 
        and, to the extent known, by private child support enforcement 
        agencies.
            (9) The types of Federal and State child support 
        enforcement remedies and resources currently available to 
        private child support enforcement agencies, and the types of 
        such remedies and resources now restricted to use by State 
        agencies administering State plans referred to in paragraph 
        (8).
    (c) Private Child Support Enforcement Agency Defined.--In this 
section, the term ``private child support enforcement agency'' means a 
person or any other nonpublic entity which seeks to establish or 
enforce an obligation to pay child support (as defined in section 
459(i)(2) of the Social Security Act (42 U.S.C. 659(i)(2)).

SEC. 244. EFFECTIVE DATE.

    This chapter shall take effect on the date of enactment of this 
Act.

                    CHAPTER 3--EXPANDED ENFORCEMENT

SEC. 251. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING 
              PASSPORT DENIAL.

    Section 452(k) (42 U.S.C. 652(k)) is amended by striking ``$5,000'' 
and inserting ``$2,500''.

SEC. 252. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD 
              SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

    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).

SEC. 253. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
              CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT 
              OBLIGATIONS.

    Section 459(h) (42 U.S.C. 659(h)) is amended--
            (1) in paragraph (1)(A)(ii)--
                    (A) in subclause (IV), by striking ``or'' after the 
                semicolon;
                    (B) in subclause (V), by inserting ``or'' after the 
                semicolon; and
                    (C) by adding at the end the following:
                                    ``(VI) subject to paragraph (3), 
                                other than periodic benefits or 
                                payments described in subclause (V), by 
                                the Secretary of Veterans Affairs as 
                                compensation for a service-connected 
                                disability paid by the Secretary to a 
                                former member of the Armed Forces;'';
            (2) in paragraph (1)(B)(iii), by striking ``subparagraph 
        (A)(ii)(V)'' and inserting ``subclauses (V) and (VI) of 
        subparagraph (A)(ii)''; and
            (3) by adding at the end the following:
            ``(3) Limitations with respect to compensation paid to 
        veterans for service-connected disabilities.--
                    ``(A) Alimony and child support.--Compensation 
                described in paragraph (1)(A)(ii)(VI) 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) Limitation.--Not more than 50 percent of any 
                payment of compensation described in subparagraph (A) 
                may be withheld pursuant to this section.''.

                        CHAPTER 4--MISCELLANEOUS

SEC. 261. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

    Not later than 6 months after the date of 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 Federal or State level to expedite the payment of 
undistributed child support.

SEC. 262. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF 
              UNEMPLOYMENT COMPENSATION PROGRAMS.

    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).''.

SEC. 263. 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)(2) 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 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)(2) 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 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(36), 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 the certification to the Secretary 
of State and the Attorney General 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), as amended by section 231(c), is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (34);
                    (B) by striking the period at the end of paragraph 
                (35) and inserting ``; and''; and
                    (C) by inserting after paragraph (35) the 
                following:
            ``(36) 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.''.

SEC. 264. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR 
              SHORT-TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE 
              AGENCIES.

    Section 474(a)(3)(B) (42 U.S.C. 674(a)(3)(B)) is amended by 
inserting ``or State-licensed or State-approved child welfare agencies 
providing services to such children,'' after ``this part,''.

SEC. 265. CORRECTION OF ERRORS IN CONFORMING AMENDMENTS IN THE WELFARE-
              TO-WORK AND CHILD SUPPORT AMENDMENTS OF 1999.

    The amendments made by section 2402 of the Emergency Supplemental 
Act, 2000 (Public Law 106-246; 114 Stat. 555) shall take effect as if 
included in the enactment of section 806 of the Departments of Labor, 
Health and Human Services, and Education, and Related Agencies 
Appropriations Act, 2000 (as enacted into law by section 1000(a)(4) of 
Public Law 106-113; 113 Stat. 1501A-286).

SEC. 266. TECHNICAL CORRECTION TO CHANGED DATES FOR ABSTINENCE 
              EVALUATION.

    (a) In General.--Section 513 of the Departments of Labor, Health 
and Human Services, and Education, and Related Agencies Appropriations 
Act, 2001, as enacted into law by section 1(a)(1) of the Consolidated 
Appropriations Act, 2001 (Public Law 106-554; 114 Stat. 2763A-71), is 
amended--
            (1) in subsection (a), by striking ``Section 
        403(a)(5)(H)(iii) of the Social Security Act (42 U.S.C. 
        603(a)(5)(H)(iii))'' and inserting ``Section 403(a)(5)(G)(iii) 
        of the Social Security Act (42 U.S.C. 603(a)(5)(G)(iii)) (as 
        redesignated by section 107(a) of this Act)''; and
            (2) in subsection (b), by striking ``Section 403(a)(5)(H)'' 
        and inserting ``Section 403(a)(5)(G) (as so redesignated)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the enactment of section 513 of the 
Departments of Labor, Health and Human Services, and Education, and 
Related Agencies Appropriations Act, 2001, as so enacted into law.

             TITLE III--PROVIDING FLEXIBILITY AND RESOURCES

                    Subtitle A--Resources Under TANF

SEC. 301. REAUTHORIZATION OF STATE FAMILY ASSISTANCE GRANTS.

    Section 403(a)(1) is amended (42 U.S.C. 603(a)(1))--
            (1) in subparagraph (A), by striking ``1996'' and all that 
        follows through ``2002'' and inserting ``2003 through 2007''; 
        and
            (2) in subparagraph (E), by striking ``fiscal years 1996'' 
        and all that follows through ``2002'' and inserting ``each of 
        fiscal years 2003 through 2007''.

SEC. 302. CONTINGENCY FUND.

    (a) Contingency Funding Available to Needy States.--Section 403(b) 
(42 U.S.C. 603(b)) is amended--
            (1) by striking paragraphs (1) through (3) and inserting 
        the following:
            ``(1) Contingency fund grants.--
                    ``(A) Payments.--Subject to subparagraph (C), each 
                State shall receive a contingency fund grant for each 
                eligible month in which the State is a needy State 
                under paragraph (3).
                    ``(B) Monthly contingency fund grant amount.--For 
                each eligible month in which a State is a needy State, 
                the State shall receive a contingency fund grant equal 
                to the higher of $0 and the applicable percentage (as 
                defined in subparagraph (D)(i)) of the product of--
                            ``(i) the estimated cost of an additional 
                        recipient family (as defined in subparagraph 
                        (D)(ii)); and
                            ``(ii) the increase in the number of 
                        families receiving assistance under the State 
                        program funded under this part or a program 
                        funded with qualified State expenditures (as 
                        defined in subparagraph (D)(iv)).
                    ``(C) Limitation.--The total amount paid to a 
                single State under subparagraph (A) during a fiscal 
                year shall not exceed the amount equal to 15 percent of 
                the State family assistance grant (as defined under 
                subparagraph (B) of subsection (a)(1) and increased 
                under subparagraph (E) of that subsection).
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Applicable percentage.--The term 
                        `applicable percentage' means the higher of--
                                    ``(I) 75 percent; and
                                    ``(II) the sum of the Federal 
                                medical assistance percentage for the 
                                State (as defined in section 1905(b)) 
                                plus 8 percentage points.
                            ``(ii) Estimated cost of an additional 
                        recipient family.--The term `estimated cost of 
                        an additional recipient family' means the 
                        amount equal to 120 percent of the basic 
                        assistance cost (as defined under clause (iii)) 
                        for families receiving assistance under the 
                        State program funded under this part or under a 
                        program funded with qualified State 
                        expenditures (as defined in section 
                        409(a)(7)(B)(i)).
                            ``(iii) Basic assistance cost.--
                                    ``(I) In general.--The term `basic 
                                assistance cost' means the amount equal 
                                to the maximum cash assistance grant 
                                for a family consisting of 3 
                                individuals under the State program 
                                funded under this part.
                                    ``(II) Rule for states with more 
                                than 1 maximum level.--In the case of a 
                                State that has more than 1 maximum cash 
                                assistance grant level for families 
                                consisting of 3 individuals, the basic 
                                assistance cost shall be the amount 
                                equal to the maximum cash assistance 
                                grant level applicable to the largest 
                                number of families consisting of 3 
                                individuals receiving assistance under 
                                the State program funded under this 
                                part or a State program funded with 
                                qualified State expenditures (as 
                                defined in section 409(a)(7)(B)(i)).
                            ``(iv) Increase in the number of families 
                        receiving assistance under the state program 
                        funded under this part or a program funded with 
                        qualified state expenditures.--The term 
                        `increase in the number of families receiving 
                        assistance under the State program funded under 
                        this part or a program funded with qualified 
                        State expenditures' means the increase in--
                                    ``(I) the number of families 
                                receiving assistance under the State 
                                program funded under this part and 
                                under a program funded with qualified 
                                State expenditures (as defined in 
                                section 409(a)(7)(B)(i)) in the most 
                                recent month for which data from the 
                                State are available; as compared to
                                    ``(II) the lower of the average 
                                monthly number of families receiving 
                                such assistance in either of the 2 
                                completed fiscal years immediately 
                                preceding the fiscal year in which the 
                                State qualifies as a needy State.
                    ``(E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for the period of 
                fiscal years 2003 through 2007, such sums as are 
                necessary for making contingency fund grants under this 
                subsection in a total amount not to exceed 
                $2,000,000,000.'';
            (2) by redesignating paragraph (4) as paragraph (2); and
            (3) in paragraph (2), as so redesignated--
                    (A) by striking ``(3)(A)'' and inserting ``(1)''; 
                and
                    (B) by striking ``2-month'' and inserting ``3-
                month''.
    (b) Modification of Definition of Needy State.--Section 403(b) (42 
U.S.C. 603(b)) is further amended--
            (1) by striking paragraphs (5) through (7);
            (2) by redesignating paragraph (8) as paragraph (5); and
            (3) by inserting after paragraph (2) (as redesignated by 
        subsection (a)(2)) the following:
            ``(3) Initial determination of whether a state qualifies as 
        a needy state.--
                    ``(A) In general.--For purposes of paragraph (1), a 
                State will be initially determined to be a needy State 
                for a month if the State satisfies at least 2 of the 
                following:
                            ``(i) The--
                                    ``(I) average rate of total 
                                unemployment in the State for the 
                                period consisting of the most recent 3 
                                months for which data are available has 
                                increased by the lesser of 1.5 
                                percentage points or by 50 percent over 
                                the corresponding 3-month period in 
                                either of the 2 most recent preceding 
                                fiscal years; or
                                    ``(II) average insured unemployment 
                                rate for the most recent 3 months for 
                                which data are available has increased 
                                by 1 percentage point over the 
                                corresponding 3-month period in either 
                                of the 2 most recent preceding fiscal 
                                years.
                            ``(ii) As determined by the Secretary of 
                        Agriculture, the monthly average number of 
                        households (as of the last day of each month) 
                        that participated in the food stamp program in 
                        the State in the then most recently concluded 
                        3-month period for which data are available 
                        exceeds by at least 10 percent the monthly 
                        average number of households (as of the last 
                        day of each month) in the State that 
                        participated in the food stamp program in the 
                        corresponding 3-month period in either of the 2 
                        most recent preceding fiscal years, provided 
                        that the Secretary makes a determination that 
                        the State's increase in the number of such 
                        households was due, in large measure, to 
                        economic conditions rather than an expansion of 
                        program eligibility requirements.
                            ``(iii) As determined by the Secretary, the 
                        monthly average number of families that 
                        received assistance under the State program 
                        funded under this part or under a program 
                        funded with qualified State expenditures (as 
                        defined in section 409(a)(7)(B)(i)) in the most 
                        recently concluded 3-month period for which 
                        data are available from the State increased by 
                        at least 10 percent over the number of such 
                        families that received such benefits in the 
                        corresponding 3-month period in either of the 2 
                        most recent preceding fiscal years, provided 
                        that the Secretary makes a determination that 
                        the State's increased caseload was due, in 
                        large measure, to economic conditions rather 
                        than an expansion of program eligibility 
                        requirements.
                    ``(B) Duration.--
                            ``(i) In general.--A State that qualifies 
                        as a needy State--
                                    ``(I) under subparagraph (A)(i), 
                                shall be considered a needy State until 
                                the factor which was used to meet the 
                                definition of needy State under that 
                                subparagraph for the most recently 
                                concluded 3-month period for which data 
                                are available, falls below the level 
                                attained for such factor in the 3-month 
                                period in which the State first 
                                qualified as a needy State under that 
                                subparagraph;
                                    ``(II) under subparagraph (A)(ii), 
                                shall be considered a needy State until 
                                the average monthly number of 
                                households participating in the food 
                                stamp program for the most recently 
                                concluded 3-month period for which data 
                                are available nationally falls below 
                                the food stamp base period level; and
                                    ``(III) under subparagraph 
                                (A)(iii), shall be considered a needy 
                                State until the number of families 
                                receiving assistance under the State 
                                program funded under this part or under 
                                a program funded with qualified State 
                                expenditures (as defined in section 
                                409(a)(7)(B)(i)) for the most recently 
                                concluded 3-month period for which data 
                                are available falls below the TANF base 
                                period level.
                            ``(ii) Seasonal variations.--
                        Notwithstanding subclauses (II) and (III) of 
                        clause (i), a State shall be considered a needy 
                        State--
                                    ``(I) under subparagraph (A)(ii), 
                                if with respect to the State, the 
                                monthly average number of households 
                                participating in the food stamp program 
                                for the most recent 3-month period for 
                                which data are available nationally 
                                falls below the food stamp base period 
                                level and the Secretary determines that 
                                this is due to expected seasonal 
                                variations in food stamp receipt in the 
                                State; and
                                    ``(II) under subparagraph (A)(iii), 
                                if, with respect to a State, the 
                                monthly average number of families 
                                receiving assistance under the State 
                                program funded under this part or under 
                                a program funded with qualified State 
                                expenditures (as defined in section 
                                409(a)(7)(B)(i)) for the most recently 
                                concluded 3-month period for which data 
                                are available nationally falls below 
                                the TANF base period level and the 
                                Secretary determines that this is due 
                                to expected seasonal variations in 
                                assistance receipt in the State.
                            ``(iii) Food stamp base period level.--In 
                        this subparagraph, the term `food stamp base 
                        period level' means the monthly average number 
                        of households participating in the food stamp 
                        program that corresponds to the most recent 3-
                        month period for which data are available at 
                        the time when the State first was determined to 
                        be a needy State under this paragraph.
                            ``(iv) TANF base period level.--In this 
                        subparagraph, the term `TANF base period level' 
means the monthly average number of families receiving assistance under 
the State program funded under this part or under a program funded with 
qualified State expenditures (as defined in section 409(a)(7)(B)(i)) 
that corresponds to the most recent 3 months for which data are 
available at the time when the State first was determined to be a needy 
State under this paragraph.
            ``(4) Exception.--
                    ``(A) In general.--Notwithstanding paragraph (3), a 
                State that has unobligated TANF reserves from prior 
                fiscal years that equal more than 25 percent of the 
                total amount of grants received by the State under 
                subsection (a) (other than welfare-to-work grants made 
                under paragraph (5) of that subsection prior to fiscal 
                year 1999) but not yet obligated as of the end of the 
                preceding fiscal year shall not be a needy State under 
                this subsection.
                    ``(B) Definition of unobligated tanf reserves.--In 
                subparagraph (A), the term `unobligated TANF reserves' 
                means the lessor of--
                            ``(i) the total amount of grants made to 
                        the State (regardless of the fiscal year in 
                        which such funds were awarded) under subsection 
                        (a) (other than welfare-to-work grants made 
                        under paragraph (5) of that subsection prior to 
                        fiscal year 1999) but not yet obligated as of 
                        the end of the preceding fiscal year; and
                            ``(ii) the total amount of grants made to 
                        the State under subsection (a) (other than 
                        welfare-to-work grants made under paragraph (5) 
                        of that subsection prior to fiscal year 1999) 
                        but not yet obligated as of the end of the 
                        preceding fiscal year, plus the difference 
                        between--
                                    ``(I) the pro rata share of the 
                                fiscal year grants to be made under 
                                subsection (a) to the State (other than 
                                such welfare-to-work grants); and
                                    ``(II) current year obligations of 
                                the total amount of grants made to all 
                                States under subsection (a) (regardless 
                                of the fiscal year in which such funds 
                                were awarded) (other than such welfare-
                                to-work grants) through the end of the 
                                most recent calendar quarter.''.
    (c) Clarification of Reporting Requirements.--Paragraph (5) of 
section 403(b) (42 U.S.C. 603(b)), as redesignated by subsection 
(b)(2), is amended by striking ``on the status of the Fund'' and 
inserting ``on the States that qualified for contingency funds and the 
amount of funding awarded under this subsection''.

SEC. 303. REAUTHORIZATION OF SUPPLEMENTAL GRANTS FOR POPULATION 
              INCREASES.

    Section 403(a)(3) (42 U.S.C. 603(a)) is amended--
            (1) in subparagraph (A)(ii), in the matter preceding 
        subclause (I), by striking ``, 2000, and 2001'' and inserting 
        ``through 2007'';
            (2) in subparagraph (C)(iii), in the matter preceding 
        subclause (I), by striking ``fiscal years 1998, 1999, 2000, and 
        2001'' and inserting ``each of fiscal years 1998 through 
        2007'';
            (3) in subparagraph (E), by striking ``1998, 1999, 2000, 
        and 2001'' and inserting ``2003 through 2007''; and
            (4) in subparagraph (G), by striking ``2001'' and inserting 
        ``2007''.

SEC. 304. GRANTS TO STATES FOR ADMINISTRATIVE COSTS OF IMPLEMENTING 
              INCREASED WORK REQUIREMENTS AND TO ENHANCE STATE 
              CAPABILITIES AND CASEWORKER TRAINING.

    Section 403(a) (42 U.S.C. 603(a)), as amended by section 111, is 
amended by adding at the end the following:
            ``(7) Grants to states for administrative costs of 
        implementing increased work requirements and to enhance state 
        capabilities and caseworker training.--
                    ``(A) In general.--The Secretary shall pay each 
                eligible State (as defined in section 402(a)) the 
                amount determined under subparagraph (C) for a fiscal 
                year.
                    ``(B) Use of funds.--Funds made available through a 
                grant made under this paragraph shall be used for 
                administrative costs incurred by a State in order to 
                comply with the work requirements applicable to 
                recipients under the State program funded under this 
                part as a result of the amendments made by the Work and 
                Family Act of 2002, for technical enhancement of State 
                capabilities with respect to the administration of the 
                State program, and for caseworker training, including 
                any of the following:
            ``(1) Upgrading computer systems and data processing 
        equipment.
            ``(2) Hiring additional staff to comply with reporting 
        requirements and work requirements imposed under this part.
            ``(3) Incurring expenditures for resources and support 
        necessary to comply with increased administrative requirements 
        resulting from the amendments made to this part by the Work and 
        Family Act of 2002.
            ``(4) Developing staff training and career development 
        programs in information technology to improve the quality of 
        services and maximize the effectiveness of the existing 
        workforce responsible for administering the State program 
        funded under this part.
            ``(5) Developing proposals to redesign the delivery of 
        services under the State program funded under this part and to 
        maximize efficiency and enhance public satisfaction through the 
        establishment of joint labor committees with respect to the 
        administration of employment and training programs.
            ``(6) Developing and implementing model case management 
        practices and policies that are designed to maintain a stable, 
        skilled, and professional workforce.
            ``(7) Developing innovative training programs to improve 
        the quality of services provided under the State program funded 
        under this part, including staff training on program 
        requirements and services, referral of recipients to all other 
        programs and services for which recipients are eligible, 
        screening of recipients for serious barriers to employment and 
        referral of recipients with such barriers to qualified 
        specialists, cultural diversity and sensitivity, and the rights 
        of recipients under all laws applicable to the activities of 
        the State program.
                    ``(C) Allocation of funds.--
                            ``(i) In general.--Subject to clauses (ii) 
                        and (iii), out of the funds appropriated under 
                        subparagraph (E) for a fiscal year, the 
                        Secretary shall pay to each eligible State an 
                        amount equal to ratio of the number of 
                        recipients of assistance under the State 
                        program funded under this part in the State to 
                        the number of recipients of assistance under 
                        all State programs funded under this part.
                            ``(ii) Minimum allocation.--No eligible 
                        State shall receive a payment of a grant under 
                        this paragraph for a fiscal year that is less 
                        than the amount equal to 1 percent of the 
                        amount appropriated under subparagraph (E) for 
                        such fiscal year.
                            ``(iii) Pro rata reductions.--If the amount 
                        appropriated pursuant to subparagraph (E) for a 
                        fiscal year is less than the total amount of 
                        payments otherwise required to be made under 
                        clauses (i) and (ii) for the fiscal year, then 
                        the amount otherwise payable to any eligible 
                        State for the fiscal year under this 
                        subparagraph shall be reduced by a percentage 
                        equal to the amount so appropriated divided by 
                        such total amount.
                    ``(D) Requirement.--Amounts paid to an eligible 
                State under this paragraph for a fiscal year shall be 
                subject to the same requirements as amounts paid to the 
                State under paragraph (1).
                    ``(E) 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, $50,000,000 for making 
                payments to States under this paragraph.''.

SEC. 305. CREDIT FOR STATE EXPENDITURES TO CARRY OUT THE PURPOSES OF 
              TANF.

    Section 409(a)(7)(B)(i)(II) (42 U.S.C. 609(a)(7)(B)(i)(II)) is 
amended--
            (1) in item (aa), by striking ``or'' at the end;
            (2) in item (bb), by striking the period and inserting ``; 
        or''; and
            (3) by adding at the end the following:
                                            ``(cc) the expenditures are 
                                        directly related to 1 of the 
                                        purposes set forth in section 
                                        401(a).''.

SEC. 306. REAUTHORIZATION OF GRANTS FOR INDIAN TRIBES AND PENALTY FOR 
              FAILURE TO MAINTAIN HISTORIC STATE EFFORT.

    (a) Reauthorization of Grants for Indian Tribes.--Paragraphs (1)(A) 
and (2)(A) of section 412(a) (42 U.S.C. 612(a)) are each amended by 
striking ``1997'' and all that follows through ``2002'' and inserting 
``2003 through 2007''.
    (b) Continuation of Penalties for Failure of a State To Maintain 
Certain Level of Historic Effort.--Section 409(a)(7) (42 U.S.C. 
608(a)(7)) is amended--
            (1) in subparagraph (A), by striking ``1998'' and all that 
        follows through ``2003'' and inserting ``2003, 2004, 2005, 
        2006, or 2007''; and
            (2) in subparagraph (B)(ii), by striking ``1997 through 
        2002'' and inserting ``2003 through 2007''.

SEC. 307. 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--
            (1) in the subsection heading, by striking ``Assistance'' 
        and inserting ``Benefits or Services''; and
            (2) by striking ``assistance'' and inserting ``any benefit 
        or service that may be provided''.

SEC. 308. PROMOTING WORK AND RESPONSIBILITY AMONG ALL FAMILIES WITH 
              CHILDREN.

    (a) State Option To Assist Legal Immigrants Under TANF.--
            (1) In general.--Section 403(c)(2) of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (8 U.S.C. 1613(c)(2)) is amended by adding at the end the 
        following:
                    ``(L) At State option, assistance or benefits under 
                a State program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.).''.
            (2) Conforming amendment.--Section 408(e) of the Social 
        Security Act (42 U.S.C. 608(e)) is amended to read as follows:
    ``(e) Eligibility of Certain Aliens.--Except as provided in 
subsection (f) (relating to deeming requirements), at State option, a 
State may provide assistance, benefits, or services to a qualified 
alien (as defined in subsections (b) and (c) of section 431 of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(8 U.S.C. 1641)) under the State program funded under this part or with 
qualified State expenditures (as defined in section 409(a)(7)(B)(i)) in 
the same manner and to the same extent as a citizen of the United 
States would be provided such assistance, benefits, or services.''.
    (b) State Plan Requirement.--Section 402(a)(1)(B) (42 U.S.C. 
602(a)(1)(B)) is amended by adding at the end the following:
                            ``(v) In the case of a State that elects 
                        the option under section 408(e) to provide 
                        benefits or assistance to qualified aliens, the 
                        document shall include--
                                    ``(I) an explanation of how the 
                                State shall ensure that, with respect 
                                to such aliens who entered the United 
                                States after 1996, the income of any 
                                sponsor of such an alien is considered 
                                when determining the alien's 
                                eligibility for any means-tested 
                                benefits; and
                                    ``(II) a description of the process 
                                the State uses to request reimbursement 
                                for any means-tested benefits provided 
                                to such an alien who entered the United 
                                States after 1996, from any sponsor of 
                                the alien in accordance with the 
                                requirements of section 213A of the 
                                Immigration and Nationality Act (8 
                                U.S.C. 1183a) and the legal remedies 
                                the State may use to enforce affidavits 
                                of support under that section.''.
    (c) State Authority To Provide State and Local Public Benefits for 
Certain Aliens.--Section 411(d) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1621(d)) is amended--
            (1) in the heading, by inserting ``and Other'' before 
        ``Aliens''; and
            (2) by inserting ``or who otherwise is not a qualified 
        alien (as defined in section 431)'' after ``United States''.
    (d) Grants to States Disproportionately Impacted by Federal 
Immigration Policy.--Section 403(a) (42 U.S.C. 603(a)), as amended by 
section 304, is amended by adding at the end the following:
            ``(8) Grants to states disproportionately impacted by 
        federal immigration policy.--
                    ``(A) In general.--The Secretary shall pay each 
                State described in subparagraph (B) the amount 
                determined under subparagraph (C) for a fiscal year.
                    ``(B) State described.--For purposes of 
                subparagraph (A), a State is described in this 
                subparagraph if the State notifies the Secretary not 
                later than June 1 of the fiscal year preceding the 
                fiscal year for which the State is to receive a payment 
                under this paragraph that, with respect to the fiscal 
                year for which such a grant is to be made, the State 
                intends to provide assistance, benefits, or services 
                under the State program funded under this part or with 
                qualified State expenditures (as defined in section 
                409(a)(7)(B)(i)) to all qualified aliens in accordance 
                with section 408(e).
                    ``(C) Allocation of funds.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary shall allocate the funds 
                        appropriated under subparagraph (E) for a 
                        fiscal year as follows:
                                    ``(I) An amount equal to 40 percent 
                                of such funds shall be distributed 
                                among the States described in 
                                subparagraph (B) for such fiscal year 
                                based on the number of low-income 
                                children in noncitizen families in all 
                                such States, as determined by the 
                                Secretary.
                                    ``(II) An amount equal to 60 
                                percent of such funds shall be 
                                distributed among the States described 
                                in subparagraph (B) for such fiscal 
                                year based on the increase during the 
                                period that begins with 1996 and ends 
                                with the most recent year for which 
                                data is available in the number of 
                                noncitizens (all ages, all incomes) in 
                                the State as compared to the increase 
                                in such number of such noncitizens for 
                                all such States for the fiscal year.
                            ``(ii) Pro rata reductions.--If the amount 
                        appropriated pursuant to subparagraph (E) for a 
                        fiscal year is less than the total amount of 
                        payments otherwise required to be made under 
                        clause (i) for the fiscal year, then the amount 
                        otherwise payable to any State described in 
                        subparagraph (B) for the fiscal year under 
                        clause (i) shall be reduced by a percentage 
                        equal to the amount so appropriated divided by 
                        such total amount.
                            ``(iii) No judicial review.--
                        Notwithstanding any other provision of law, the 
                        allocation of funds under this subparagraph for 
                        a fiscal year shall not be subject to judicial 
                        review.
                    ``(D) Requirement.--Amounts paid to a State under 
                this paragraph for a fiscal year shall be subject to 
                the same requirements as amounts paid to the State 
                under paragraph (1).
                    ``(E) 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, $50,000,000 for making 
                payments to States under this paragraph.''.

SEC. 309. DATA COLLECTION AND REPORTING.

    Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended in the 
matter preceding clause (i), by striking ``(except for information 
relating to activities carried out under section 403(a)(5))'' and 
inserting `` (and in complying with this requirement, the Secretary 
shall require not more than 10 States to ensure that the following case 
record information is reported in a manner that permits analysis of 
such information by race, ethnicity or national origin, primary 
language, gender, and educational level, including analysis using a 
combination of these factors, and shall submit an annual report to 
Congress containing such data)''.

SEC. 310. DEFINITION OF ASSISTANCE.

    Section 419 (42 U.S.C. 619) is amended by adding at the end the 
following:
            ``(6) Assistance.--The term `assistance' means cash 
        benefits and does not include child care or other support 
        services.''.

SEC. 311. AUTHORITY TO USE TANF FUNDS FOR HOUSING BENEFITS.

    (a) In General.--Section 404 (42 U.S.C. 604) is amended by 
inserting at the end the following:
    ``(l) Use of Funds for Supplemental Housing Benefits.--
            ``(1) In general.--The provision by a State of supplemental 
        housing benefits to or on behalf of an individual eligible for 
        assistance under the State program funded under this part, 
        using funds from a grant made under section 403(a) of this 
        title, shall not be considered to be the provision of 
        assistance to the individual under the State program funded 
        under this part for any purpose except in determining the 
        allowability of the expenditure under section 401(a)(1).
            ``(2) Permitted use of funds.--A State may not use any part 
        of the funds from a grant made under section 403 to supplant 
        rather than supplement State expenditures on housing-related 
        programs.
            ``(3) Definition of supplemental housing benefits.--In this 
        subsection, the term `supplemental housing benefits' means 
        payments made to or on behalf of an individual to reduce or 
        reimburse the costs incurred by the individual for housing 
        accommodations, and the receipt of which does not reduce the 
        amount of assistance, benefits, or services an individual would 
        otherwise receive under the State program funded under this 
        part or under a program funded with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i)).''.
    (b) State Plan.--Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as 
amended by section 308(b), is amended by adding at the end the 
following:
                            ``(vi) The document shall describe--
                                    ``(I) the primary problems that 
                                families receiving assistance and 
                                families who have recently stopped 
                                receiving assistance under the State 
                                program funded under this part 
                                experience in securing and retaining 
                                adequate, affordable housing and the 
                                estimated extent of each such problem, 
                                including the price of such housing in 
                                various areas of the State that include 
                                a large proportion of recipients of 
                                assistance under the State program;
                                    ``(II) the steps that have been and 
                                will be taken by the State and other 
                                public or private entities that 
                                administer housing programs in the 
                                State to address the problems described 
                                in subclause (I);
                                    ``(III) the methods the State has 
                                adopted to identify barriers to work 
                                posed by the living arrangement, 
                                housing cost, and housing location of 
                                families eligible for the State program 
                                funded under this part; and
                                    ``(IV) the services and benefits 
                                that have been or will be provided by 
                                the State or other public or private 
                                entities to help families overcome the 
                                barriers so identified.''.

               Subtitle B--Resources Under Other Programs

SEC. 321. RESTORATION OF FUNDING FOR THE SOCIAL SERVICES BLOCK GRANT.

    (a) Restoration of Funds for the Social Services Block Grant.--
Section 2003(c) (42 U.S.C. 1379b(c)) is amended--
            (1) in paragraph (10), by striking ``and'';
            (2) in paragraph (11), by striking ``and each fiscal year 
        thereafter.'' and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(12) $1,900,000,000 for fiscal year 2003;
            ``(13) $1,950,000,000 for fiscal year 2004;
            ``(14) $2,050,000,000 for fiscal year 2005;
            ``(15) $2,200,000,000 for fiscal year 2006; and
            ``(16) $2,800,000,000 for fiscal year 2007 and each fiscal 
        year thereafter.''.
    (b) Restoration of Authority To Transfer up to 10 Percent of TANF 
Funds.--Section 404(d)(2) (42 U.S.C. 604(d)(2)) is amended to read as 
follows:
            ``(2) Limitation on amount transferable to title xx 
        programs.--A State may use not more than 10 percent of the 
        amount of any grant made to the State under section 403(a) for 
        a fiscal year to carry out State programs pursuant to title 
        XX.''.

SEC. 322. ONE-YEAR EXTENSION AND REVISION AND SIMPLIFICATION OF THE 
              TRANSITIONAL MEDICAL ASSISTANCE PROGRAM (TMA).

    (a) Option of Continuous Eligibility for 12 Months; Option of 
Continuing Coverage for up to an Additional Year.--
            (1) Option of continuous eligibility for 12 months by 
        making reporting requirements optional.--Section 1925(b) (42 
        U.S.C. 1396r-6(b)) is amended--
                    (A) in paragraph (1), by inserting ``, at the 
                option of a State,'' after ``and which'';
                    (B) in paragraph (2)(A), by inserting ``Subject to 
                subparagraph (C)--'' after ``(A) Notices.--'';
                    (C) in paragraph (2)(B), by inserting ``Subject to 
                subparagraph (C)--'' after ``(B) Reporting 
                requirements.--'';
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(C) State option to waive notice and reporting 
                requirements.--A State may waive some or all of the 
                reporting requirements under clauses (i) and (ii) of 
                subparagraph (B). Insofar as it waives such a reporting 
                requirement, the State need not provide for a notice 
                under subparagraph (A) relating to such requirement.''; 
                and
                    (E) in paragraph (3)(A)(iii), by inserting ``the 
                State has not waived under paragraph (2)(C) the 
                reporting requirement with respect to such month under 
                paragraph (2)(B) and if'' after ``6-month period if''.
            (2) State option to extend eligibility for low-income 
        individuals for up to 12 additional months.--Section 1925 (42 
        U.S.C. 1396r-6) is further amended--
                    (A) by redesignating subsections (c) through (f) as 
                subsections (d) through (g), respectively; and
                    (B) by inserting after subsection (b) the following 
                new subsection:
    ``(c) State Option of up to 12 Months of Additional Eligibility.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, each State plan approved under this title may 
        provide, at the option of the State, that the State shall offer 
        to each family which received assistance during the entire 6-
month period under subsection (b) and which meets the applicable 
requirement of paragraph (2), in the last month of the period the 
option of extending coverage under this subsection for the succeeding 
period not to exceed 12 months.
            ``(2) Income restriction.--The option under paragraph (1) 
        shall not be made available to a family for a succeeding period 
        unless the State determines that the family's average gross 
        monthly earnings (less such costs for such child care as is 
        necessary for the employment of the caretaker relative) as of 
        the end of the 6-month period under subsection (b) does not 
        exceed 185 percent of the official poverty line (as defined by 
        the Office of Management and Budget, and revised annually in 
        accordance with section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981) applicable to a family of the size 
        involved.
            ``(3) Application of extension rules.--The provisions of 
        paragraphs (2), (3), (4), and (5) of subsection (b) shall apply 
        to the extension provided under this subsection in the same 
        manner as they apply to the extension provided under subsection 
        (b)(1), except that for purposes of this subsection--
                    ``(A) any reference to a 6-month period under 
                subsection (b)(1) is deemed a reference to the 
                extension period provided under paragraph (1) and any 
                deadlines for any notices or reporting and the premium 
                payment periods shall be modified to correspond to the 
                appropriate calendar quarters of coverage provided 
                under this subsection; and
                    ``(B) any reference to a provision of subsection 
                (a) or (b) is deemed a reference to the corresponding 
                provision of subsection (b) or of this subsection, 
                respectively.''.
    (b) State Option To Waive Receipt of Medicaid for 3 of Previous 6 
Months To Qualify for TMA.--Section 1925(a)(1) (42 U.S.C. 1396r-
6(a)(1)) is amended by adding at the end the following: ``A State may, 
at its option, also apply the previous sentence in the case of a family 
that was receiving such aid for fewer than 3 months, or that had 
applied for and was eligible for such aid for fewer than 3 months, 
during the 6 immediately preceding months described in such 
sentence.''.
    (c) 1-Year Extension of Sunset for TMA.--
            (1) In general.--Subsection (g) of section 1925 (42 U.S.C. 
        1396r-6), as redesignated under subsection (a)(2)(A), is 
        further redesignated as subsection (i) and is amended by 
        striking ``2002'' and inserting ``2003''.
            (2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C. 
        1396a(e)(1)(B)) is amended by striking ``2002'' and inserting 
        ``2003''.
    (d) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 (42 U.S.C. 1396r-6), as amended by subsections (a)(2)(A) 
and (c), is amended by inserting after subsection (f) the following:
    ``(g) Additional Provisions.--
            ``(1) Collection and reporting of participation 
        information.--Each State shall--
                    ``(A) collect and submit to the Secretary, in a 
                format specified by the Secretary, information on 
                average monthly enrollment and average monthly 
                participation rates for adults and children under this 
                section; and
                    ``(B) make such information publicly available.
        Such information shall be submitted under subparagraph (A) at 
        the same time and frequency in which other enrollment 
        information under this title is submitted to the Secretary. 
        Using such information, the Secretary shall submit to Congress 
        annual reports concerning such rates.''.
    (e) Coordination of Work.--Section 1925(g) (42 U.S.C. 1396r-6(g)), 
as added by subsection (d), is amended by adding at the end the 
following new paragraph:
            ``(2) Coordination with administration for children and 
        families.--The Administrator of the Centers for Medicare & 
        Medicaid Services, in carrying out this section, shall work 
        with the Assistant Secretary for the Administration for 
        Children and Families to develop guidance or other technical 
        assistance for States regarding best practices in guaranteeing 
        access to transitional medical assistance under this 
        section.''.
    (f) Elimination of TMA Requirement for States That Extend Coverage 
to Children and Parents Through 185 Percent of Poverty.--
            (1) In general.--Section 1925 (42 U.S.C. 1396r-6) is 
        further amended by inserting after subsection (g), as added by 
        subsection (d), the following:
    ``(h) Provisions Optional for States That Extend Coverage to 
Children and Parents Through 185 Percent of Poverty.--A State may (but 
is not required to) meet the requirements of subsections (a) and (b) if 
it provides for medical assistance under this title (whether under 
section 1931, through a waiver under section 1115, or otherwise) to 
families (including both children and caretaker relatives) the average 
gross monthly earning of which (less such costs for such child care as 
is necessary for the employment of a caretaker relative) is at or below 
a level that is at least 185 percent of the official poverty line (as 
defined by the Office of Management and Budget, and revised annually in 
accordance with section 673(2) of the Omnibus Budget Reconciliation Act 
of 1981) applicable to a family of the size involved.''.
            (2) Conforming amendments.--Section 1925 (42 U.S.C. 1396r-
        6) is further amended, in subsections (a)(1) and (b)(1), by 
        inserting ``, but subject to subsection (h),'' after 
        ``Notwithstanding any other provision of this title,'' each 
        place it appears.
    (g) Requirement of Notice for All Families Losing TANF.--Subsection 
(a)(2) of section 1925 (42 U.S.C. 1396r-6) is amended by adding after 
and below subparagraph (B), the following:
        ``Each State shall provide, to families whose aid under part A 
        or E of title IV has terminated but whose eligibility for 
        medical assistance under this title continues, written notice 
        of their ongoing eligibility for such medical assistance. If a 
        State makes a determination that any member of a family whose 
        aid under part A or E of title IV is being terminated is also 
        no longer eligible for medical assistance under this title, the 
        notice of such determination shall be supplemented by a 1-page 
        notification form describing the different ways in which 
        individuals and families may qualify for such medical 
        assistance and explaining that individuals and families do not 
        have to be receiving aid under part A or E of title IV in order 
        to qualify for such medical assistance. Such notice shall 
        further be supplemented by information on how to apply for 
        child health assistance under the State children's health 
        insurance program under title XXI and how to apply for medical 
        assistance under this title.''.
    (h) Extending Use of Outstationed Workers To Accept Applications 
for Transitional Medical Assistance.--Section 1902(a)(55) (42 U.S.C. 
1396a(a)(55)) is amended by inserting ``and under section 1931'' after 
``(a)(10)(A)(ii)(IX)''.
    (i) Effective Dates.--
            (1) In general.--Except as provided in this subsection, the 
        amendments made by this section shall apply to calendar 
        quarters beginning on or after October 1, 2002, without regard 
to whether or not final regulations to carry out such amendments have 
been promulgated by such date.
            (2) Notice.--The amendment made by subsection (g) shall 
        take effect 6 months after the date of enactment of this Act.
            (3) Delay permitted for state plan amendment.--In the case 
        of a State plan for medical assistance under title XIX of the 
        Social Security Act which the Secretary of Health and Human 
        Services determines requires State legislation (other than 
        legislation appropriating funds) in order for the plan to meet 
        the additional requirements imposed by the amendments made by 
        this section, the State plan shall not be regarded as failing 
        to comply with the requirements of such title solely on the 
        basis of its failure to meet these additional requirements 
        before 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 enactment of this 
        Act. For purposes of the previous sentence, in the case of a 
        State that has a 2-year legislative session, each year of such 
        session shall be deemed to be a separate regular session of the 
        State legislature.

SEC. 323. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID 
              PROGRAM AND TITLE XXI.

    (a) Medicaid Program.--Section 1903(v) (42 U.S.C. 1396b(v)) is 
amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (4)''; and
            (2) by adding at the end the following:
    ``(4)(A) A State may elect (in a plan amendment under this title) 
to provide medical assistance under this title (including under a 
waiver authorized by the Secretary), notwithstanding sections 402(b) 
and 403 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 but, except as provided in subparagraph (B), 
consistent with sections 401(a) and 421 of such Act, for aliens who are 
lawfully residing in the United States (including battered aliens 
described in section 431(c) of such Act) and who are otherwise eligible 
for such assistance, within any of the following eligibility 
categories:
            ``(i) Pregnant women.--Women during pregnancy (and during 
        the 60-day period beginning on the last day of the pregnancy).
            ``(ii) Children.--Children (as defined under such plan), 
        including optional targeted low-income children described in 
        section 1905(u)(2)(B).
    ``(B) Notwithstanding section 421 of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996, in the case of a State 
that has elected to provide medical assistance to a category of aliens 
under subparagraph (A), no debt shall accrue under an affidavit of 
support against any sponsor of such an alien on the basis of provision 
of assistance to such category and the cost of such assistance shall 
not be considered as an unreimbursed cost.''.
    (b) Title XXI.--Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is 
amended by adding at the end the following:
                    ``(E) Section 1903(v)(4) (relating to optional 
                coverage of categories of lawful resident alien 
                pregnant women and children), but only with respect to 
                an eligibility category under this title, if the same 
                eligibility category has been elected under such 
section for purposes of title XIX.''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2002, and apply to medical assistance and child 
health assistance furnished on or after such date, whether or not 
regulations implementing such amendments have been issued.

SEC. 324. PATHWAY TO SELF-SUFFICIENCY GRANTS TO IMPROVE COORDINATION OF 
              ASSISTANCE FOR LOW-INCOME FAMILIES.

    (a) Definitions.--In this section:
            (1) Eligible applicant.--The term ``eligible applicant'' 
        means a State or local government agency or a nonprofit entity.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (3) State.--The term ``State'' means each of the 50 States 
        of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, American Samoa, Guam, and the 
        United States Virgin Islands.
            (4) Support program for low-income families.--The term 
        ``support program for low-income families'' means a program 
        designed to provide low-income families and noncustodial 
        parents who need help with obtaining employment and fulfilling 
        child support obligations to children receiving assistance 
        under the temporary assistance to needy families program 
        established under part A of title IV of the Social Security Act 
        (42 U.S.C. 601 et seq.) with assistance or benefits to enable 
        the family or noncustodial parent to become self-sufficient and 
        includes--
                    (A) the temporary assistance to needy families 
                program established under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.);
                    (B) the food stamp program established under the 
                Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
                    (C) the medicaid program funded under title XIX of 
                the Social Security Act (42 U.S.C. 1396 et seq.);
                    (D) the State children's health insurance program 
                (SCHIP) funded under title XXI of the Social Security 
                Act (42 U.S.C. 1397aa et seq.);
                    (E) the child care program funded under the Child 
                Care Development Block Grant Act of 1990 (42 U.S.C. 
                9858 et seq.);
                    (F) the child support program funded under part D 
                of title IV of the Social Security Act (42 U.S.C. 651 
                et seq.);
                    (G) the earned income tax credit under section 32 
                of the Internal Revenue Code of 1986;
                    (H) the low-income home energy assistance program 
                (LIHEAP) established under the Low-Income Home Energy 
                Assistance Act of 1981 (42 U.S.C. 8621 et seq.);
                    (I) the special supplemental nutrition program for 
                women, infants, and children (WIC) established under 
                section 17 of the Child Nutrition Act of 1966 (42 
                U.S.C. 1786);
                    (J) programs under the Workforce Investment Act of 
                1998 (29 U.S.C. 2801 et seq.);
                    (K) programs supporting low-income housing 
                assistance programs; and
                    (L) any other Federal, State, or locally funded 
                program designed to provide family and work support to 
                low-income families.
    (b) Authority To Award Grants.--
            (1) In general.--The Secretary may award grants to eligible 
        applicants to--
                    (A) improve the coordination of support programs 
                for low-income families and noncustodial parents 
                described in subsection (a)(4); and
                    (B) conduct outreach to such families and 
                noncustodial parents to promote enrollment in such 
                programs.
            (2) Preference.--In awarding grants under this section, the 
        Secretary shall give preference to eligible applicants that 
        include in the application submitted under subsection (c) 
        documentation demonstrating that the eligible applicant will 
        collaborate with other Federal, State, or local agencies or 
        nonprofit entities in carrying out activities under the grant.
    (c) Application.--Each eligible applicant desiring a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may require.
    (d) Annual Reports.--
            (1) In general.--The Secretary shall submit an interim and 
        final report to Congress describing the uses of grant funds 
        awarded under this section.
            (2) Dates for submission.--With respect to the reports 
        required under paragraph (1), the Secretary shall submit--
                    (A) the interim report, not later than December 31, 
                2005; and
                    (B) the final report, not later than December 31, 
                2008.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for the period of 
fiscal years 2003 through 2007.
    (f) Annual Assessment of Regional Labor Markets To Target Higher 
Entry Level Wage Opportunities in Industries Experiencing Labor 
Shortages.--
            (1) In general.--An State to which a grant is made under 
        this section annually shall conduct an assessment of its 
        regional labor markets that includes the following:
                    (A) Labor market.--The assessment shall--
                            (i) identify industries or occupations that 
                        have or expect growth, the loss of skilled 
                        workers, or that have a demand for a subset of 
                        workers;
                            (ii) identify the entry-level education and 
                        skills requirements for the industries or 
                        occupations that have or anticipate a need for 
                        workers; and
                            (iii) analyze the entry-level wages and 
                        benefits in identified industries or 
                        occupations.
                    (B) Job seekers.--The assessment shall create a 
                profile of the characteristics of the unemployed and 
                underemployed residents of the State, including 
                educational attainment, barriers to employment, 
                geographic concentrations, and access to needed support 
                services.
                    (C) Education and training infrastructure.--The 
                assessment shall create a profile of the State's 
                available education, training, and support services to 
                prepare workers for the identified industries or 
                occupations.
                    (D) Aligning industries and job seeker needs.--The 
                assessment shall compare the characteristics of the 
                identified industries or occupations to the profiles 
                created under subparagraphs (B) and (C).
            (2) Provision of information to localities.--The State 
        shall share with local political subdivisions of the State--
                    (A) information regarding the existence of higher 
                entry-wage job opportunities in industries experiencing 
                labor shortages; and
                    (B) opportunities for collaboration with 
                institutions of higher education, community-based 
                organizations, and economic development and welfare 
                agencies.
            (3) Data.--A State may use data available as of the date 
        the State begins an assessment under paragraph (1) to conduct 
        such assessment if such data provides the information necessary 
to conduct the assessment described in that paragraph.
            (4) Reports.--
                    (A) State reports.--Each State to which a grant is 
                made under this section annually shall submit a report 
                to the Secretary that contains the assessment required 
                under paragraph (1).
                    (B) Report to congress.--The Secretary annually 
                shall submit a report to Congress compiling the State 
                reports submitted under subparagraph (A).

SEC. 325. GAO STUDY ON IMPACT OF BAN ON SSI BENEFITS FOR LEGAL 
              IMMIGRANTS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study to determine the impact of the prohibition under 
section 402 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1612) with respect to the 
eligibility of qualified aliens (as defined in section 431 of such Act 
(8 U.S.C. 1641)) for benefits under the supplemental security income 
program under title XVI of the Social Security Act (42 U.S.C. 1381 et 
seq.), including supplementary payments pursuant to an agreement for 
Federal administration under section 1616(a) of such Act (42 U.S.C. 
1382e) and payments pursuant to an agreement entered into under section 
212(b) of Public Law 93-66.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall submit a report to Congress on 
the study conducted under subsection (a) that includes such 
recommendations for legislative action as the Comptroller General 
determines appropriate.

                        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, and shall apply to 
payments under parts A and D of title IV of the Social Security Act for 
calendar quarters beginning on or after such date, without regard to 
whether regulations to implement the amendments are promulgated by such 
date.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan under section 402(a) or 454 of the Social Security Act (42 
U.S.C. 602(a), 654) which the Secretary of Health and Human Services 
determines requires State legislation (other than legislation 
appropriating funds) in order for the plan to meet the additional 
requirements imposed by the amendments made by this Act, the State plan 
shall not be regarded as failing to comply with the requirements of 
such section 402(a) or 454 solely on the basis of the failure of the 
plan to meet such additional requirements before the 1st day of the 1st 
calendar quarter beginning after the close of the 1st regular session 
of the State legislature that begins after the date of enactment of 
this Act. For purposes of the previous sentence, in the case of a State 
that has a 2-year legislative session, each year of such session shall 
be deemed to be a separate regular session of the State legislature.
                                 <all>