[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2624 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2624

  To amend part A of title IV of the Social Security Act to require a 
  comprehensive strategic plan for the State temporary assistance to 
                        needy families program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 14, 2002

 Mr. Bingaman 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 require a 
  comprehensive strategic plan for the State temporary assistance to 
                        needy families program.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Self Sufficiency and Accountability 
Act of 2002''.

SEC. 2. COMPREHENSIVE STRATEGIC TANF PLAN.

    (a) In General.--Section 402 of the Social Security Act (42 U.S.C. 
602) is amended to read as follows:

``SEC. 402. ELIGIBLE STATES; STATE PLAN.

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that, during the 27-month 
period ending with the close of the 1st quarter of the fiscal year, has 
submitted to the Secretary, and revised when necessary in accordance 
with subsection (b), a written plan that the Secretary has found 
includes the following:
            ``(1) Outline of family assistance program.--
                    ``(A) Programmatic information.--Information 
                relating to the State program, including the following:
                            ``(i) With respect to each program that 
                        will be funded under this part, or with 
                        qualified State expenditures claimed by the 
                        State to meet the requirements of section 
                        409(a)(7), over the 2-year period for which the 
                        plan is being submitted--
                                    ``(I) the name of the program;
                                    ``(II) the goals of the program;
                                    ``(III) a description of the 
                                benefits and services provided in the 
                                program;
                                    ``(IV) a description of principal 
                                eligibility rules and populations 
                                served under the program, including the 
                                circumstances under which the State 
                                provides benefits or services to 
                                individuals who are not citizens of the 
                                United States;
                                    ``(V) a description of how the 
                                State will ensure fair and equitable 
                                treatment among program applicants and 
                                recipients and how the State will 
                                provide opportunities for applicants 
                                and recipients who have been adversely 
                                affected to be heard in a State 
                                administrative or appeal process, 
                                including a description of the steps 
                                that the State has taken (or will take) 
                                to ensure--
                                            ``(aa) compliance with 
                                        nondiscrimination, civil 
                                        rights, and employment laws 
                                        throughout the process of 
                                        providing services under this 
                                        part, including at the time of 
                                        application for benefits, 
                                        during the applicant assessment 
                                        process, when determining 
                                        availability of an eligibility 
                                        for benefits and services, 
                                        during the actual delivery of 
                                        services or benefits, and when 
                                        deciding to terminate benefits 
                                        in full or in part; and
                                            ``(bb) that program 
                                        applicants and recipients are 
                                        aware of their rights and the 
                                        process for enforcing their 
                                        rights; and
                                    ``(VI) a description of how the 
                                program meets 1 or more of the purposes 
                                described in section 401 or, in the 
                                case of a program funded with qualified 
                                State expenditures, how the program 
                                meets the criteria in section 
                                409(a)(7)(B).
                            ``(ii) With respect to each program that 
                        will be funded under this part, or with 
                        qualified State expenditures claimed by the 
                        State to meet the requirements of section 
                        409(a)(7), over the 2-year period for which the 
                        plan is being submitted and that provides 
                        assistance--
                                    ``(I) a description of the 
                                applicable financial and nonfinancial 
                                eligibility rules including, income 
                                eligibility thresholds, the treatment 
                                of earnings, asset eligibility rules, 
                                and excluded forms of income;
                                    ``(II) a description of applicable 
                                work-related requirements, including 
                                which adults are required to 
                                participate in such activities, the 
                                activities in which they can 
                                participate, the criteria for 
                                determining the activity an adult is 
                                assigned to, and the procedures used to 
                                screen and assess participants for 
                                barriers to employment including 
                                physical or mental impairments, 
                                substance abuse, learning disabilities, 
                                domestic violence, inadequate or 
                                unstable housing and very low basic 
                                skills;
                                    ``(III) a description of applicable 
                                time limit policies, including the 
                                length of the time limit, exemption and 
                                extension policies, and procedures and 
                                policies for providing services to 
                                families reaching time limits and who 
                                have lost assistance due to time 
                                limits; and
                                    ``(IV) a description of applicable 
                                sanction policies and procedures, 
                                including the program requirements for 
                                which a sanction can be applied for 
                                failure to comply, the amount and 
                                duration of sanctions, the State-
                                defined criteria that constitute good 
                                cause for failing to meet each program 
                                requirement for which a sanction may be 
                                imposed, how the State will comply with 
                                the requirement in section 407(e)(2), 
                                and the procedures in place to identify 
                                families who are unable to comply with 
                                program requirements due to various 
                                barriers (such as physical or mental 
                                impairments, domestic violence, 
                                unavailable or inaccessible child care, 
                                illiteracy, lack of English 
                                proficiency) and procedures for 
                                providing services to those families 
                                rather than imposing a sanction on 
                                them.
                            ``(iii) A description of--
                                    ``(I) the primary problems that 
                                families receiving assistance, and 
                                families who have recently stopped 
                                receiving assistance, under the State 
                                program funded under this part, or 
                                under a program funded with qualified 
                                State expenditures as defined in 
                                section 407(a)(7), experience in 
                                securing and retaining adequate, 
                                affordable housing and the estimated 
                                extent of each such problem, including 
                                the price of such housing in various 
                                parts of the State that include a large 
                                proportion of recipients of assistance 
                                under the State program, and the steps 
                                that have been and will be taken by the 
                                State and other public or private 
                                entities that administer housing 
                                programs to address these problems; and
                                    ``(II) the methods the State has 
                                adopted to identify barriers to work 
                                posed by the living arrangement, 
                                housing cost, and housing location of 
                                individuals eligible for participation 
                                in the State program funded under this 
                                part and the services and benefits that 
                                have been or will be provided by the 
                                State and other public or private 
                                entities to help families overcome such 
                                barriers.
                            ``(iv) A description of the steps the State 
                        will take to restrict the use and disclosure of 
                        information about individuals and families 
                        applying for or receiving assistance under a 
                        program funded under this part, or with 
                        qualified State expenditures as defined in 
                        section 409(a)(7).
                            ``(v) A description of how the State will 
                        ensure the availability of a stable and 
                        professional workforce in the administration of 
                        the State program under this part with the 
                        resources, skills, and expertise necessary to 
                        successfully carry out the program, including a 
                        description of the plan of the State to provide 
                        program staff with training on the following:
                                    ``(I) Program information and 
                                services.
                                    ``(II) The rights of recipients of 
                                assistant under all laws applicable to 
                                the activities of the program, 
                                including nondiscrimination and 
                                employment laws.
                                    ``(III) Cultural diversity and 
                                sensitivity.
                                    ``(IV) Referral of recipients of 
                                assistance to all appropriate programs 
                                and services for which such recipients 
                                are eligible.
                                    ``(V) Screening of recipients of 
                                assistance for serious barriers to 
                                employment and referral to qualified 
                                specialists.
                            ``(vi) A description of the steps that the 
                        State has taken to inform applicants for and 
                        recipients of assistance under the State 
                        program under this part of their rights and 
                        obligations under such program. Such 
                        description shall include--
                                    ``(I) an explanation of the manner 
                                in which the State will ensure that 
                                such information is communicated 
                                effectively to all such individuals, 
                                including how the State will provide 
                                appropriate translation or 
                                interpretation services where 
                                necessary; and
                                    ``(II) an assurance that the 
                                communication of such information will 
                                take place throughout the service 
                                delivery and processing.
                    ``(B) Information about programs designed or 
                implemented at sub-state levels.--With respect to any 
                program described in clauses (i) or (ii) of 
                subparagraph (A) in which the State permits counties or 
                other substate entities to design their own rules with 
                respect to any of the information required under such 
                clauses, the State plan shall be designed to reflect 
                the policies of each such county or substate entity.
                    ``(C) State goals and benchmarks.--For each purpose 
                contained in section 401(a), the State plan shall 
                provide the following information:
                            ``(i) A description of specific goals the 
                        State will attempt to achieve over the 
                        succeeding 5-year period to further that 
                        purpose.
                            ``(ii) A description of how the State 
                        intends to meet the goals described in clause 
                        (i) over such 5-year period and a description 
                        of the steps the State will take during such 
                        period to work toward achieving such goals.
                            ``(iii) A description of performance 
                        measures that will be used to measure progress 
                        made by the State toward achieving each such 
                        goal, including the methodology for computing 
                        such measures. Each performance and outcome 
                        measure described in the State plan under this 
                        subparagraph shall be reported by the State 
                        annually in a form prescribed by the Secretary.
                            ``(iv) An identification of those key 
                        factors external to the program and beyond the 
                        control of the State that could significantly 
                        affect the attainment of the goals.
                            ``(v) A description of any additional 
                        evaluation methods the State will use to 
                        measure progress made by the State toward 
                        achieving such goals.
            ``(2) Minimum participation rates.--A description of how 
        the minimum participation rates specified in section 407 will 
        be satisfied.
            ``(3) Estimate of expenditures.--An estimate of the total 
        amount of State or local expenditures under all programs 
        described in clauses (i) or (ii) of paragraph (1)(A) for the 
        fiscal year in which the plan is submitted.
            ``(4) Special provisions.--
                    ``(A) Certification regarding assessment of 
                regional economies and informing localities of sectoral 
                labor shortages and identification of self-sufficiency 
                standard.--
                            ``(i) In general.--A certification by the 
                        chief executive officer of the State that, 
                        during the fiscal year, the State will--
                                    ``(I) assess its regional economies 
                                and provide information to political 
                                subdivisions of the State about the 
                                industrial sectors that are 
                                experiencing a labor shortage and that 
                                provide higher entry-level wage 
                                opportunities for unemployed and 
                                underemployed job seekers identified in 
                                accordance with section 411(c); and
                                    ``(II) identify the self-
                                sufficiency standards for families 
                                after the families cease to receive 
                                assistance under the State program 
                                funded under this part in accordance 
                                with clause (ii).
                            ``(ii) Requirements for identification of 
                        self-sufficiency standards.--
                                    ``(I) In general.--The State shall 
                                provide to the Secretary a document 
                                adopted or developed by the State, 
                                that--
                                            ``(aa) describes the income 
                                        needs of families (in this part 
                                        referred to as `State self-
                                        sufficiency standards') based 
                                        on family size, the number and 
                                        ages of children in the family, 
                                        and sub-State geographical 
                                        considerations; and
                                            ``(bb) if the State has a 
                                        sizeable Native American 
                                        population, includes 
                                        information specific to the 
                                        needs of that population.
                                    ``(II) Criteria.--The State self-
                                sufficiency standards shall separately 
                                specify the monthly costs of housing, 
                                food, child care, transportation, 
                                health care, other basic needs, and 
                                taxes (including tax benefits), and 
                                shall be determined using national, 
                                State and local data on the cost of 
                                purchasing goods and services in the 
                                marketplace.
                                    ``(III) Categories of families.--
                                The State self-sufficiency standards 
                                shall categorize families--
                                            ``(aa) by whether there are 
                                        1 or 2 adults in the family;
                                            ``(bb) by whether there are 
                                        0, 1, 2, 3, or more than 3 
                                        children in the family; and
                                            ``(cc) by the age of each 
                                        child in the family, according 
                                        to whether a child is an 
                                        infant, of pre-school age, of 
                                        school age, or a teenager.
                                    ``(IV) Regulations.--The Secretary 
                                shall prescribe the protocols, 
                                criteria, cost categories, definitions, 
                                and means of making inflation 
                                adjustments to be used in developing 
                                self-sufficiency standards pursuant to 
                                this clause, which shall be based on 
                                commonly accepted definitions of 
                                adequacy, such as those used for 
                                establishing fair market rents, and 
                                that reflect, to the extent possible, 
                                consensus and use among those 
                                calculating family budgets and self-
                                sufficiency standards.
                                    ``(V) Data.--The self-sufficiency 
                                standards developed pursuant to this 
                                clause shall be--
                                            ``(aa) recalculated on 
                                        adoption if the data on which 
                                        the standards are based is more 
                                        than 3 years old;
                                            ``(bb) recalculated every 5 
                                        years after adoption; and
                                            ``(cc) updated for 
                                        inflation each year after 
                                        adoption in which the standards 
                                        are not be recalculated 
                                        pursuant to item (bb).
                                    ``(VI) Technical assistance in 
                                developing standards.--The Secretary 
                                may provide financial or technical 
                                assistance to an eligible State to 
                                enable the State to develop or improve 
                                the State self-sufficiency standards 
                                and produce State reports required by 
                                section 411(d). The Secretary shall 
                                carry out this paragraph by making a 
                                grant to, or entering into a contract 
                                with an organization or institution 
                                with substantial experience in 
                                calculating and implementing on the 
                                State level family budgets and self-
                                sufficiency standards. An organization 
                                or institution desiring to provide 
                                technical assistance described in this 
                                subclause shall submit to the Secretary 
                                an application at such time, in such 
                                manner, and accompanied by such 
                                information as the Secretary may 
                                require.
                    ``(B) Certification that the state will operate a 
                child support enforcement program.--A certification by 
                the chief executive officer of the State that, during 
                the fiscal year, the State will operate a child support 
                enforcement program under the State plan approved under 
                part D.
                    ``(C) Certification that the state will operate a 
                foster care and adoption assistance program.--A 
                certification by the chief executive officer of the 
                State that, during the fiscal year, the State will 
                operate a foster care and adoption assistance program 
                under the State plan approved under part E, and that 
                the State will take such actions as are necessary to 
                ensure that children receiving assistance under such 
                part are eligible for medical assistance under the 
                State plan under title XIX.
                    ``(D) Certification of the administration of the 
                program.--A certification by the chief executive 
                officer of the State specifying which State agency or 
                agencies will administer and supervise the family 
                assistance program referred to in paragraph (1) for the 
                fiscal year, which shall include assurances that local 
                governments and private sector organizations--
                            ``(i) have been consulted regarding the 
                        plan and design of welfare services in the 
                        State so that services are provided in a manner 
                        appropriate to local populations; and
                            ``(ii) have had at least 45 days to submit 
                        comments on the plan and the design of such 
                        services.
                    ``(E) Certification that the state will provide 
                indians with equitable access to assistance.--A 
                certification by the chief executive officer of the 
                State that, during the fiscal year, the State will 
                provide each member of an Indian tribe, who is 
                domiciled in the State and is not eligible for 
                assistance under a tribal family assistance plan 
                approved under section 412, with equitable access to 
                assistance under the State program.
                    ``(F) Certification of standards and procedures to 
                ensure against program fraud and abuse.--A 
                certification by the chief executive officer of the 
                State that the State has established and is enforcing 
                standards and procedures to ensure against program 
                fraud and abuse, including standards and procedures 
                concerning nepotism, conflicts of interest among 
                individuals responsible for the administration and 
                supervision of the State program, kickbacks, and the 
                use of political patronage.
                    ``(G) Optional certification of standards and 
                procedures to ensure that the state will screen for and 
                identify domestic violence.--
                            ``(i) In general.--At the option of the 
                        State, a certification by the chief executive 
                        officer of the State that the State has 
                        established and is enforcing standards and 
                        procedures to--
                                    ``(I) screen and identify 
                                individuals receiving assistance under 
                                this part with a history of domestic 
                                violence while maintaining the 
                                confidentiality of such individuals;
                                    ``(II) refer such individuals to 
                                counseling and supportive services; and
                                    ``(III) waive, pursuant to a 
                                determination of good cause, other 
                                program requirements such as time 
                                limits (for so long as necessary) for 
                                individuals receiving assistance, 
                                residency requirements, child support 
                                cooperation requirements, and family 
                                cap provisions, in cases where 
                                compliance with such requirements would 
                                make it more difficult for individuals 
                                receiving assistance under this part to 
                                escape domestic violence or unfairly 
                                penalize such individuals who are or 
                                have been victimized by such violence, 
                                or individuals who are at risk of 
                                further domestic violence.
                            ``(ii) Domestic violence defined.--For 
                        purposes of this subparagraph, the term 
                        `domestic violence' has the same meaning as the 
                        term `battered or subjected to extreme 
                        cruelty', as defined in section 
                        408(a)(7)(C)(iii).
    ``(b) Procedures for Submitting and Amending State Plans.--
            ``(1) Standard state plan format.--The Secretary shall, 
        after notice and public comment, develop a proposed Standard 
        State Plan Form to be used by States under subsection (a). Such 
        form shall be finalized by the Secretary for use by the State 
        not later than February 1, 2003.
            ``(2) Requirement for completed plan using standard state 
        plan format by fiscal year 2004.--Notwithstanding any other 
        provision of law, each State shall submit a complete State 
        plan, using the Standard State Plan Form developed under 
        paragraph (1), not later than October 1, 2003.
            ``(3) Public notice and comment.--Prior to submitting a 
        State plan to the Secretary under this section, the State 
        shall--
                    ``(A) make the proposed State plan available to the 
                public through an appropriate State maintained Internet 
                web site and through other means as the State 
                determines appropriate;
                    ``(B) allow for a reasonable public comment period 
                of not less than 45 days; and
                    ``(C) make comments received concerning such plan 
                or, at the discretion of the State, a summary of the 
                comments received available to the public through such 
                web site and through other means as the State 
                determines appropriate.
            ``(4) Public availability of state plan.--A State shall 
        ensure that the State plan, that is in effect for any fiscal 
        year, is available to the public through an appropriate State 
        maintained Internet web site and through other means as the 
        State determines appropriate.
            ``(5) Amending the state plan.--A State shall file an 
        amendment to the State plan with the Secretary if the State 
        determines that there has been a material change in any 
        information required to be included in the State plan or any 
        other information the State has included in the plan, including 
        substantial changes in the use of funding. Prior to submitting 
        an amendment to the State plan to the Secretary, the State 
        shall--
                    ``(A) make the proposed amendment available to the 
                public as provided for in paragraph (3)(A);
                    ``(B) allow for a reasonable public comment period 
                of not less than 45 days; and
                    ``(C) make the comments available as provided for 
                in paragraph (3)(C).''.
    (b) Conforming Amendment.--Section 408(5)(B)(i) of the Social 
Security Act (42 U.S.C. 608(5)(B)(i)) is amended by striking ``referred 
to in section 402(a)(4)''.

SEC. 3. MONITORING OF FEDERAL AND STATE EFFORTS; ASSESSMENT OF REGIONAL 
              ECONOMIES.

    (a) General Reporting Requirement.--Section 411(a) of the Social 
Security Act (42 U.S.C. 611(a)) is amended--
            (1) by redesignating paragraph (7) as paragraph (9); and
            (2) by inserting after paragraph (6), the following:
            ``(7) Self-sufficiency standard.--The report required by 
        paragraph (1) for a fiscal quarter shall include a description 
        of the self-sufficiency standard identified for families in 
        accordance with section 402(a)(4)(A)(ii).
            ``(8) Information regarding civil rights.--As part of the 
        information collected and reported under paragraph (1), the 
        State shall include information on the number of complaints 
        filed by applicants for or recipients of assistance under the 
        State program under this part that allege civil rights or 
        employment law violations and the status of such complaints, 
        including the number of complaints pending at the time the 
        report is prepared. Such information shall be delineated by 
        alleged violation, the number of resolutions during the 
        reporting period in favor of and against the complainants, and 
        the average length of time to process complaints.''.
    (b) Annual Reports to Congress.--Section 411(b) of the Social 
Security Act (42 U.S.C. 611(b)) is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period and inserting 
        ; and''; and
            (3) by adding at the end the following:
            ``(5) the status of civil rights complaints filed under 
        this part with the Office of Civil Rights of the Department of 
        Health and Human Services by applicants for or recipients of 
        assistance under a State program, including the number of 
        complaints pending at the time the report is prepared 
        delineated by alleged violation, the number of resolutions 
        during the reporting period in favor of and against the 
        complainants, and the average length of time to process 
        complaints.''.
    (c) Annual Assessment of Regional Economies; Annual Report On 
Programs and Services Leading to Self-Sufficiency.--Section 411 of the 
Social Security Act (42 U.S.C. 611) is amended by adding at the end the 
following:
    ``(c) Assessment of Regional Economies to Identify Higher Entry 
Level Wage Opportunities in Industries Experiencing Labor Shortages.--
            ``(1) In general.--An eligible State annually shall conduct 
        an assessment of its regional economies to identify higher 
        entry level wage opportunities in industries experiencing labor 
        market shortages.
            ``(2) Matters to be assessed.--
                    ``(A) Labor market.--The assessment shall--
                            ``(i) identify industries or occupations 
                        that have or expect to grow, that have or 
                        expect a loss of skilled workers, or that have 
                        a need for workers;
                            ``(ii) identify the entry-level education 
                        and skills requirements for the industries or 
                        occupations that have or expect 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 in each regional economy in the State, of the 
                characteristics of the unemployed and underemployed 
                residents of such regional economy, including 
                educational attainment, barriers to employment, 
                geographic concentrations, self-sufficiency needs, and 
                availability and utilization of need support services.
                    ``(C) Education and training infrastructure.--The 
                assessment shall create a profile, in each regional 
                economy in the State of the education, training, and 
                support services in place in such regional economy to 
                prepare workers for the industries or occupations 
                identified pursuant to subparagraph (A).
                    ``(D) Aligning industries and job seekers.--The 
                assessment shall compare the characteristics of the 
                industries or occupations identified pursuant to 
                subparagraph (A) to the profile of the job seekers in 
                the State and the profile of the education and training 
                infrastructure in the State.
            ``(3) Sharing of information with localities.--The State 
        shall share with all counties, municipalities, local workforce 
        investment boards established under section 117 of the 
        Workforce Investment Act of 1998 (29 U.S.C. 2832), and other 
        appropriate political subdivisions of the State, information 
        obtained pursuant to this subsection regarding higher entry-
        wage job opportunities in industries experiencing labor 
        shortages, and information regarding opportunities for 
        collaboration with institutions of higher education, community-
        based organizations, and economic development and welfare 
        agencies.
            ``(4) Reports of assessment of regional economies.--Each 
        eligible state shall submit to the Secretary annually a report 
        that contains the annual assessment conducted pursuant to this 
        subsection.
    ``(d) Annual Report on Programs and Services Leading to Self-
Sufficiency.--A State to which a grant is made under section 403(a) for 
a fiscal year shall submit to the Secretary a report that describes, 
with respect to the preceding fiscal year--
            ``(1) a description of the ways in which the State program 
        funded under this part, and support services provided by the 
        State to recipients of assistance under that program, moved 
        families toward self-sufficiency, and that highlights the 
        programs and services that appeared to have a particularly 
        positive effect on families achieving self-sufficiency;
            ``(2) the total family income for families that left the 
        State program funded under this part (including earnings, 
        unemployment compensation, and child support); and
            ``(3) the benefits received by families that have left the 
        State program funded under this part (including benefits under 
        the food stamp program under the Food Stamp Act of 1977, the 
        medicaid program under title XIX, the State children's health 
        insurance program under title XXI, earned income tax credits, 
        and housing assistance).''.
    (d) Research, Evaluations, and National Studies.--Section 413(h) of 
the Social Security Act (42 U.S.C. 613(h)) is amended by adding at the 
end the following:
            ``(4) Technical assistance in assessing regional 
        economies.--
                    ``(A) In general.--The Secretary may provide 
                technical assistance to an eligible State to enable the 
                State to conduct the assessments required by section 
                411(c).
                    ``(B) Limitations on authorization of 
                appropriations.--For the cost of providing technical 
                assistance under subparagraph (A), there are authorized 
                to be appropriated to the Secretary not more than 
                $1,500,000 for each fiscal year in which amounts are 
                appropriated to carry out the State programs funded 
                under this part.''.

SEC. 4. PENALTY FOR FAILURE TO COMPLY WITH FAIR TREATMENT REQUIREMENTS.

    Section 409(a)(7) of the Social Security Act (42 U.S.C. 609(a)(7)) 
is amended by adding at the end the following:
                    ``(C) Increase in applicable percentage for failure 
                to comply with fair treatment requirements.--The 
                applicable percent under subparagraph (B)(ii) with 
                respect to a State shall be increased by 5 percentage 
                points for any year in which the Secretary determines 
                that the State has failed to comply with the State plan 
                requirements of clause (i)(V) or (vi) of section 
                402(a)(1)(A).''.

SEC. 5. EFFECTIVE DATE.

    (a) In General.--The amendments made by this Act take effect on 
October 1, 2002.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan under section 402 of the Social Security Act which the 
Secretary of Health and Human Services determines requires State 
legislation (other than legislation appropriating funds) in order for 
the plan to meet the additional requirements imposed by the amendments 
made by this Act, the State plan shall not be regarded as failing to 
comply with the requirements of such section 402 solely on the basis of 
the failure of the plan to meet such additional requirements before the 
1st day of the 1st calendar quarter beginning after the close of the 
1st regular session of the State legislature that begins after the date 
of the enactment of this Act. For purposes of the previous sentence, in 
the case of a State that has a 2-year legislative session, each year of 
such session shall be deemed to be a separate regular session of the 
State legislature.
                                 <all>