[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4 Reported in Senate (RS)]

                                                       Calendar No. 305
108th CONGRESS
  1st Session
                                 H. R. 4

                          [Report No. 108-162]


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 2003

     Received; read twice and referred to the Committee on Finance

                            October 3, 2003

              Reported by Mr. Grassley, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 AN ACT


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

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Personal Responsibility, 
Work, and Family Promotion Act of 2003''.</DELETED>

<DELETED>SEC. 2. TABLE OF CONTENTS.</DELETED>

<DELETED>    The table of contents of this Act is as follows:</DELETED>

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

<DELETED>Sec. 101. Purposes.
<DELETED>Sec. 102. Family assistance grants.
<DELETED>Sec. 103. Promotion of family formation and healthy marriage.
<DELETED>Sec. 104. Supplemental grant for population increases in 
                            certain States.
<DELETED>Sec. 105. Bonus to reward employment achievement.
<DELETED>Sec. 106. Contingency fund.
<DELETED>Sec. 107. Use of funds.
<DELETED>Sec. 108. Repeal of Federal loan for State welfare programs.
<DELETED>Sec. 109. Universal engagement and family self-sufficiency 
                            plan requirements.
<DELETED>Sec. 110. Work participation requirements.
<DELETED>Sec. 111. Maintenance of effort.
<DELETED>Sec. 112. Performance improvement.
<DELETED>Sec. 113. Data collection and reporting.
<DELETED>Sec. 114. Direct funding and administration by Indian tribes.
<DELETED>Sec. 115. Research, evaluations, and national studies.
<DELETED>Sec. 116. Studies by the Census Bureau and the General 
                            Accounting Office.
<DELETED>Sec. 117. Definition of assistance.
<DELETED>Sec. 118. Technical corrections.
<DELETED>Sec. 119. Fatherhood program.
<DELETED>Sec. 120. State option to make TANF programs mandatory 
                            partners with one-stop employment training 
                            centers.
<DELETED>Sec. 121. Sense of the Congress.
<DELETED>Sec. 122. Extension through fiscal year 2003.
                     <DELETED>TITLE II--CHILD CARE

<DELETED>Sec. 201. Short title.
<DELETED>Sec. 202. Goals.
<DELETED>Sec. 203. Authorization of appropriations.
<DELETED>Sec. 204. Application and plan.
<DELETED>Sec. 205. Activities to improve the quality of child care.
<DELETED>Sec. 206. Report by secretary.
<DELETED>Sec. 207. Definitions.
<DELETED>Sec. 208. Entitlement funding.
                   <DELETED>TITLE III--CHILD SUPPORT

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

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

<DELETED>Sec. 501. Review of State agency blindness and disability 
                            determinations.
             <DELETED>TITLE VI--STATE AND LOCAL FLEXIBILITY

<DELETED>Sec. 601. Program coordination demonstration projects.
<DELETED>Sec. 602. State food assistance block grant demonstration 
                            project.
                <DELETED>TITLE VII--ABSTINENCE EDUCATION

<DELETED>Sec. 701. Extension of abstinence education program.
          <DELETED>TITLE VIII--TRANSITIONAL MEDICAL ASSISTANCE

<DELETED>Sec. 801. Extension of medicaid transitional medical 
                            assistance program through fiscal year 
                            2004.
<DELETED>Sec. 802. Adjustment to payments for medicaid administrative 
                            costs to prevent duplicative payments and 
                            to fund extension of transitional medical 
                            assistance.
                   <DELETED>TITLE IX--EFFECTIVE DATE

<DELETED>Sec. 901. Effective date.

<DELETED>SEC. 3. REFERENCES.</DELETED>

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

<DELETED>SEC. 4. FINDINGS.</DELETED>

<DELETED>    The Congress makes the following findings:</DELETED>
        <DELETED>    (1) The Temporary Assistance for Needy Families 
        (TANF) Program established by the Personal Responsibility and 
        Work Opportunity Reconciliation Act of 1996 (Public Law 104-
        193) has succeeded in moving families from welfare to work and 
        reducing child poverty.</DELETED>
                <DELETED>    (A) There has been a dramatic increase in 
                the employment of current and former welfare 
                recipients. The percentage of working recipients 
                reached an all-time high in fiscal year 1999 and 
                continued steady in fiscal years 2000 and 2001. In 
                fiscal year 2001, 33 percent of adult recipients were 
                working, compared to less than 7 percent in fiscal year 
                1992, and 11 percent in fiscal year 1996. All States 
                met the overall participation rate standard in fiscal 
                year 2001, as did the District of Columbia and Puerto 
                Rico.</DELETED>
                <DELETED>    (B) Earnings for welfare recipients 
                remaining on the rolls have also increased 
                significantly, as have earnings for female-headed 
                households. The increases have been particularly large 
                for the bottom 2 income quintiles, that is, those women 
                who are most likely to be former or present welfare 
                recipients.</DELETED>
                <DELETED>    (C) Welfare dependency has plummeted. As 
                of June 2002, 2,025,000 families and 5,008,000 
                individuals were receiving assistance. Accordingly, the 
                number of families in the welfare caseload and the 
                number of individuals receiving cash assistance 
                declined 54 percent and 58 percent, respectively, since 
                the enactment of TANF. These declines have persisted 
                even as unemployment rates have increased: unemployment 
                rates nationwide rose 50 percent, from 3.9 percent in 
                September 2000 to 6 percent in November 2002, while 
                welfare caseloads continued to decline.</DELETED>
                <DELETED>    (D) The child poverty rate continued to 
                decline between 1996 and 2001, falling 20 percent from 
                20.5 to 16.3 percent. The 2001 child poverty rate 
                remains at the lowest level since 1979. Child poverty 
                rates for African-American and Hispanic children have 
                also fallen dramatically during the past 6 years. 
                African-American child poverty is at the lowest rate on 
                record and Hispanic child poverty is at the lowest 
                level reported in over 20 years.</DELETED>
                <DELETED>    (E) Despite these gains, States have had 
                mixed success in fully engaging welfare recipients in 
                work activities. While all States have met the overall 
                work participation rates required by law, in 2001, in 
                an average month, only just over </DELETED>\<DELETED>1/
                3</DELETED>\ <DELETED>of all families with an adult 
                participated in work activities that were countable 
                toward the State's participation rate. Five 
                jurisdictions failed to meet the more rigorous 2-parent 
                work requirements, and 19 jurisdictions (States and 
                territories) are not subject to the 2-parent 
                requirements, most because they moved their 2-parent 
                cases to separate State programs where they are not 
                subject to a penalty for failing the 2-parent 
                rates.</DELETED>
        <DELETED>    (2) As a Nation, we have made substantial progress 
        in reducing teen pregnancies and births, slowing increases in 
        nonmarital childbearing, and improving child support 
        collections and paternity establishment.</DELETED>
                <DELETED>    (A) The teen birth rate has fallen 
                continuously since 1991, down a dramatic 22 percent by 
                2000. During the period of 1991-2000, teenage birth 
                rates fell in all States and the District of Columbia, 
                Puerto Rico, and the Virgin Islands. Declines also have 
                spanned age, racial, and ethnic groups. There has been 
                success in lowering the birth rate for both younger and 
                older teens. The birth rate for those 15-17 years of 
                age is down 29 percent since 1991, and the rate for 
                those 18 and 19 is down 16 percent. Between 1991 and 
                2000, teen birth rates declined for all women ages 15-
                19--white, African American, American Indian, Asian or 
                Pacific Islander, and Hispanic women ages 15-19. The 
                rate for African American teens--until recently the 
                highest--experienced the largest decline, down 31 
                percent from 1991 to 2000, to reach the lowest rate 
                ever reported for this group. Most births to teens are 
                nonmarital; in 2000, about 73 percent of the births to 
                teens aged 15-19 occurred outside of 
                marriage.</DELETED>
                <DELETED>    (B) Nonmarital childbearing continued to 
                increase slightly in 2001, however not at the sharp 
                rates of increase seen in recent decades. The birth 
                rate among unmarried women in 2001 was 4 percent lower 
                than its peak reached in 1994, while the proportion of 
                births occurring outside of marriage has remained at 
                approximately 33 percent since 1998.</DELETED>
                <DELETED>    (C) The negative consequences of out-of-
                wedlock birth on the mother, the child, the family, and 
                society are well documented. These include increased 
                likelihood of welfare dependency, increased risks of 
                low birth weight, poor cognitive development, child 
                abuse and neglect, and teen parenthood, and decreased 
                likelihood of having an intact marriage during 
                adulthood.</DELETED>
                <DELETED>    (D) An estimated 24,500,000 children do 
                not live with their biological fathers, and 7,100,000 
                children do not live with their biological mothers. 
                These facts are attributable largely to declining 
                marriage rates, increasing divorce rates, and 
                increasing rates of nonmarital births during the latter 
                part of the 20th century.</DELETED>
                <DELETED>    (E) There has been a dramatic rise in 
                cohabitation as marriages have declined. Only 40 
                percent of children of cohabiting couples will see 
                their parents marry. Those who do marry experience a 50 
percent higher divorce rate. Children in single-parent households and 
cohabiting households are at much higher risk of child abuse than 
children in intact married and stepparent families.</DELETED>
                <DELETED>    (F) Children who live apart from their 
                biological fathers, on average, are more likely to be 
                poor, experience educational, health, emotional, and 
                psychological problems, be victims of child abuse, 
                engage in criminal behavior, and become involved with 
                the juvenile justice system than their peers who live 
                with their married, biological mother and father. A 
                child living in a single-parent family is nearly 5 
                times as likely to be poor as a child living in a 
                married-couple family. In 2001, in married-couple 
                families, the child poverty rate was 8 percent, and in 
                households headed by a single mother, the poverty rate 
                was 39.3 percent.</DELETED>
                <DELETED>    (G) Since the enactment of the Personal 
                Responsibility and Work Opportunity Reconciliation Act 
                of 1996, child support collections within the child 
                support enforcement system have grown every year, 
                increasing from $12,000,000,000 in fiscal year 1996 to 
                nearly $19,000,000,000 in fiscal year 2001. The number 
                of paternities established or acknowledged in fiscal 
                year 2002 reached an historic high of over 1,500,000--
                which includes more than a 100 percent increase through 
                in-hospital acknowledgement programs to 790,595 in 2001 
                from 324,652 in 1996. Child support collections were 
                made in well over 7,000,000 cases in fiscal year 2000, 
                significantly more than the almost 4,000,000 cases 
                having a collection in 1996.</DELETED>
        <DELETED>    (3) The Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 gave States great 
        flexibility in the use of Federal funds to develop innovative 
        programs to help families leave welfare and begin employment 
        and to encourage the formation of 2-parent families.</DELETED>
                <DELETED>    (A) Total Federal and State TANF 
                expenditures in fiscal year 2001 were $25,500,000,000, 
                up from $24,000,000,000 in fiscal year 2000 and 
                $22,600,000,000 in fiscal year 1999. This increased 
                spending is attributable to significant new investments 
                in supportive services in the TANF program, such as 
                child care and activities to support work.</DELETED>
                <DELETED>    (B) Since the welfare reform effort began 
                there has been a dramatic increase in work 
                participation (including employment, community service, 
                and work experience) among welfare recipients, as well 
                as an unprecedented reduction in the caseload because 
                recipients have left welfare for work.</DELETED>
                <DELETED>    (C) States are making policy choices and 
                investment decisions best suited to the needs of their 
                citizens.</DELETED>
                        <DELETED>    (i) To expand aid to working 
                        families, all States disregard a portion of a 
                        family's earned income when determining benefit 
                        levels.</DELETED>
                        <DELETED>    (ii) Most States increased the 
                        limits on countable assets above the former Aid 
                        to Families with Dependent Children (AFDC) 
                        program. Every State has increased the vehicle 
                        asset level above the prior AFDC limit for a 
                        family's primary automobile.</DELETED>
                        <DELETED>    (iii) States are experimenting 
                        with programs to promote marriage and father 
                        involvement. Over half the States have 
                        eliminated restrictions on 2-parent families. 
                        Many States use TANF, child support, or State 
                        funds to support community-based activities to 
                        help fathers become more involved in their 
                        children's lives or strengthen relationships 
                        between mothers and fathers.</DELETED>
        <DELETED>    (4) Therefore, it is the sense of the Congress 
        that increasing success in moving families from welfare to 
        work, as well as in promoting healthy marriage and other means 
        of improving child well-being, are very important Government 
        interests and the policy contained in part A of title IV of the 
        Social Security Act (as amended by this Act) is intended to 
        serve these ends.</DELETED>

                    <DELETED>TITLE I--TANF</DELETED>

<DELETED>SEC. 101. PURPOSES.</DELETED>

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

<DELETED>SEC. 102. FAMILY ASSISTANCE GRANTS.</DELETED>

<DELETED>    (a) Extension of Authority.--Section 403(a)(1)(A) (42 
U.S.C. 603(a)(1)(A)) is amended--</DELETED>
        <DELETED>    (1) by striking ``1996, 1997, 1998, 1999, 2000, 
        2001, and 2002'' and inserting ``2004 through 2008''; 
        and</DELETED>
        <DELETED>    (2) by inserting ``payable to the State for the 
        fiscal year'' before the period.</DELETED>
<DELETED>    (b) State Family Assistance Grant.--Section 403(a)(1) (42 
U.S.C. 603(a)(1)) is amended by striking subparagraphs (B) through (E) 
and inserting the following:</DELETED>
                <DELETED>    ``(B) State family assistance grant.--The 
                State family assistance grant payable to a State for a 
                fiscal year shall be the amount that bears the same 
                ratio to the amount specified in subparagraph (C) of 
                this paragraph as the amount required to be paid to the 
                State under this paragraph for fiscal year 2002 
                (determined without regard to any reduction pursuant to 
                section 409 or 412(a)(1)) bears to the total amount 
                required to be paid under this paragraph for fiscal 
                year 2002 (as so determined).</DELETED>
                <DELETED>    ``(C) Appropriation.--Out of any money in 
                the Treasury of the United States not otherwise 
                appropriated, there are appropriated for each of fiscal 
                years 2004 through 2008 $16,566,542,000 for grants 
                under this paragraph.''.</DELETED>
<DELETED>    (c) Matching Grants for the Territories.--Section 
1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by striking ``1997 through 
2002'' and inserting ``2004 through 2008''.</DELETED>

<DELETED>SEC. 103. PROMOTION OF FAMILY FORMATION AND HEALTHY 
              MARRIAGE.</DELETED>

<DELETED>    (a) State Plans.--Section 402(a)(1)(A) (42 U.S.C. 
602(a)(1)(A)) is amended by adding at the end the following:</DELETED>
                        <DELETED>    ``(vii) Encourage equitable 
                        treatment of married, 2-parent families under 
                        the program referred to in clause 
                        (i).''.</DELETED>
<DELETED>    (b) Healthy Marriage Promotion Grants; Repeal of Bonus for 
Reduction of Illegitimacy Ratio.--Section 403(a)(2) (42 U.S.C. 
603(a)(2)) is amended to read as follows:</DELETED>
        <DELETED>    ``(2) Healthy marriage promotion grants.--
        </DELETED>
                <DELETED>    ``(A) Authority.--The Secretary shall 
                award competitive grants to States, territories, and 
                tribal organizations for not more than 50 percent of 
                the cost of developing and implementing innovative 
                programs to promote and support healthy, married, 2-
                parent families.</DELETED>
                <DELETED>    ``(B) Healthy marriage promotion 
                activities.--Funds provided under subparagraph (A) 
                shall be used to support any of the following programs 
                or activities:</DELETED>
                        <DELETED>    ``(i) Public advertising campaigns 
                        on the value of marriage and the skills needed 
                        to increase marital stability and 
                        health.</DELETED>
                        <DELETED>    ``(ii) Education in high schools 
                        on the value of marriage, relationship skills, 
                        and budgeting.</DELETED>
                        <DELETED>    ``(iii) Marriage education, 
                        marriage skills, and relationship skills 
                        programs, that may include parenting skills, 
                        financial management, conflict resolution, and 
                        job and career advancement, for non-married 
                        pregnant women and non-married expectant 
                        fathers.</DELETED>
                        <DELETED>    ``(iv) Pre-marital education and 
                        marriage skills training for engaged couples 
                        and for couples or individuals interested in 
                        marriage.</DELETED>
                        <DELETED>    ``(v) Marriage enhancement and 
                        marriage skills training programs for married 
                        couples.</DELETED>
                        <DELETED>    ``(vi) Divorce reduction programs 
                        that teach relationship skills.</DELETED>
                        <DELETED>    ``(vii) Marriage mentoring 
                        programs which use married couples as role 
                        models and mentors in at-risk 
                        communities.</DELETED>
                        <DELETED>    ``(viii) Programs to reduce the 
                        disincentives to marriage in means-tested aid 
                        programs, if offered in conjunction with any 
                        activity described in this 
                        subparagraph.</DELETED>
                <DELETED>    ``(C) Appropriation.--</DELETED>
                        <DELETED>    ``(i) In general.--Out of any 
                        money in the Treasury of the United States not 
                        otherwise appropriated, there are appropriated 
                        for each of fiscal years 2003 through 2008 
                        $100,000,000 for grants under this 
                        paragraph.</DELETED>
                        <DELETED>    ``(ii) Extended availability of 
                        fy2003 funds.--Funds appropriated under clause 
                        (i) for fiscal year 2003 shall remain available 
                        to the Secretary through fiscal year 2004, for 
                        grants under this paragraph for fiscal year 
                        2003.''.</DELETED>
<DELETED>    (c) Counting of Spending on Non-Eligible Families to 
Prevent and Reduce Incidence of Out-of-Wedlock Births, Encourage 
Formation and Maintenance of Healthy, 2-Parent Married Families, or 
Encourage Responsible Fatherhood.--Section 409(a)(7)(B)(i) (42 U.S.C. 
609(a)(7)(B)(i)) is amended by adding at the end the 
following:</DELETED>
                                <DELETED>    ``(V) Counting of spending 
                                on non-eligible families to prevent and 
                                reduce incidence of out-of-wedlock 
                                births, encourage formation and 
                                maintenance of healthy, 2-parent 
                                married families, or encourage 
                                responsible fatherhood.--The term 
                                `qualified State expenditures' includes 
                                the total expenditures by the State 
                                during the fiscal year under all State 
                                programs for a purpose described in 
                                paragraph (3) or (4) of section 
                                401(a).''.</DELETED>

<DELETED>SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN 
              CERTAIN STATES.</DELETED>

<DELETED>    Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is amended--
</DELETED>
        <DELETED>    (1) in the subparagraph heading, by striking ``of 
        grants for fiscal year 2002'';</DELETED>
        <DELETED>    (2) in clause (i), by striking ``fiscal year 
        2002'' and inserting ``each of fiscal years 2004 through 
        2007'';</DELETED>
        <DELETED>    (3) in clause (ii), by striking ``2002'' and 
        inserting ``2007''; and</DELETED>
        <DELETED>    (4) in clause (iii), by striking ``fiscal year 
        2002'' and inserting ``each of fiscal years 2004 through 
        2007''.</DELETED>

<DELETED>SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.</DELETED>

<DELETED>    (a) Reallocation of Funding.--</DELETED>
        <DELETED>    (1) In general.--Section 403(a)(4) (42 U.S.C. 
        603(a)(4)) is amended--</DELETED>
                <DELETED>    (A) in the paragraph heading, by striking 
                ``high performance states'' and inserting ``employment 
                achievement'';</DELETED>
                <DELETED>    (B) in subparagraph (D)(ii)--</DELETED>
                        <DELETED>    (i) in subclause (I), by striking 
                        ``equals $200,000,000'' and inserting ``(other 
                        than 2003) equals $200,000,000, and for bonus 
                        year 2003 equals $100,000,000''; and</DELETED>
                        <DELETED>    (ii) in subclause (II), by 
                        striking ``$1,000,000,000'' and inserting 
                        ``$900,000,000''; and</DELETED>
                <DELETED>    (C) in subparagraph (F), by striking 
                ``$1,000,000,000'' and inserting 
                ``$900,000,000''.</DELETED>
        <DELETED>    (2) Effective date.--The amendments made by 
        paragraph (1) shall take effect on the date of the enactment of 
        this Act, or September 30, 2003, whichever is 
        earlier.</DELETED>
<DELETED>    (b) Bonus to Reward Employment Achievement.--</DELETED>
        <DELETED>    (1) In general.--Section 403(a)(4) (42 U.S.C. 
        603(a)(4)) is amended by striking subparagraphs (A) through (F) 
        and inserting the following:</DELETED>
                <DELETED>    ``(A) In general.--The Secretary shall 
                make a grant pursuant to this paragraph to each State 
                for each bonus year for which the State is an 
                employment achievement State.</DELETED>
                <DELETED>    ``(B) Amount of grant.--</DELETED>
                        <DELETED>    ``(i) In general.--Subject to 
                        clause (ii) of this subparagraph, the Secretary 
                        shall determine the amount of the grant payable 
                        under this paragraph to an employment 
                        achievement State for a bonus year, which shall 
                        be based on the performance of the State as 
                        determined under subparagraph (D)(i) for the 
                        fiscal year that immediately precedes the bonus 
                        year.</DELETED>
                        <DELETED>    ``(ii) Limitation.--The amount 
                        payable to a State under this paragraph for a 
                        bonus year shall not exceed 5 percent of the 
                        State family assistance grant.</DELETED>
                <DELETED>    ``(C) Formula for measuring state 
                performance.--</DELETED>
                        <DELETED>    ``(i) In general.--Subject to 
                        clause (ii), not later than October 1, 2003, 
                        the Secretary, in consultation with the States, 
                        shall develop a formula for measuring State 
                        performance in operating the State program 
                        funded under this part so as to achieve the 
                        goals of employment entry, job retention, and 
                        increased earnings from employment for families 
                        receiving assistance under the program, as 
measured on an absolute basis and on the basis of improvement in State 
performance.</DELETED>
                        <DELETED>    ``(ii) Special rule for bonus year 
                        2004.--For the purposes of awarding a bonus 
                        under this paragraph for bonus year 2004, the 
                        Secretary may measure the performance of a 
                        State in fiscal year 2003 using the job entry 
                        rate, job retention rate, and earnings gain 
                        rate components of the formula developed under 
                        section 403(a)(4)(C) as in effect immediately 
                        before the effective date of this 
                        paragraph.</DELETED>
                <DELETED>    ``(D) Determination of state 
                performance.--For each bonus year, the Secretary 
                shall--</DELETED>
                        <DELETED>    ``(i) use the formula developed 
                        under subparagraph (C) to determine the 
                        performance of each eligible State for the 
                        fiscal year that precedes the bonus year; 
                        and</DELETED>
                        <DELETED>    ``(ii) prescribe performance 
                        standards in such a manner so as to ensure 
                        that--</DELETED>
                                <DELETED>    ``(I) the average annual 
                                total amount of grants to be made under 
                                this paragraph for each bonus year 
                                equals $100,000,000; and</DELETED>
                                <DELETED>    ``(II) the total amount of 
                                grants to be made under this paragraph 
                                for all bonus years equals 
                                $600,000,000.</DELETED>
                <DELETED>    ``(E) Definitions.--In this 
                paragraph:</DELETED>
                        <DELETED>    ``(i) Bonus year.--The term `bonus 
                        year' means each of fiscal years 2004 through 
                        2009.</DELETED>
                        <DELETED>    ``(ii) Employment achievement 
                        state.--The term `employment achievement State' 
                        means, with respect to a bonus year, an 
                        eligible State whose performance determined 
                        pursuant to subparagraph (D)(i) for the fiscal 
                        year preceding the bonus year equals or exceeds 
                        the performance standards prescribed under 
                        subparagraph (D)(ii) for such preceding fiscal 
                        year.</DELETED>
                <DELETED>    ``(F) Appropriation.--</DELETED>
                        <DELETED>    ``(i) In general.--Out of any 
                        money in the Treasury of the United States not 
                        otherwise appropriated, there are appropriated 
                        for fiscal years 2004 through 2009 $600,000,000 
                        for grants under this paragraph.</DELETED>
                        <DELETED>    ``(ii) Extended availability of 
                        prior appropriation.--Amounts appropriated 
                        under section 403(a)(4)(F) of the Social 
                        Security Act (as in effect before the date of 
                        the enactment of this clause) that have not 
                        been expended as of such date of enactment 
                        shall remain available through fiscal year 2004 
                        for grants under section 403(a)(4) of such Act 
                        (as in effect before such date of enactment) 
                        for bonus year 2003.</DELETED>
                <DELETED>    ``(G) Grants for tribal organizations.--
                This paragraph shall apply with respect to tribal 
                organizations in the same manner in which this 
                paragraph applies with respect to States. In 
                determining the criteria under which to make grants to 
                tribal organizations under this paragraph, the 
                Secretary shall consult with tribal 
                organizations.''.</DELETED>
        <DELETED>    (2) Effective date.--The amendment made by 
        paragraph (1), except for section 403(a)(4)(F)(ii) of the 
        Social Security Act as inserted by the amendment, shall take 
        effect on October 1, 2003.</DELETED>

<DELETED>SEC. 106. CONTINGENCY FUND.</DELETED>

<DELETED>    (a) Deposits Into Fund.--Section 403(b)(2) (42 U.S.C. 
603(b)(2)) is amended--</DELETED>
        <DELETED>    (1) by striking ``1997, 1998, 1999, 2000, 2001, 
        and 2002'' and inserting ``2004 through 2008''; and</DELETED>
        <DELETED>    (2) by striking all that follows 
        ``$2,000,000,000'' and inserting a period.</DELETED>
<DELETED>    (b) Grants.--Section 403(b)(3)(C)(ii) (42 U.S.C. 
603(b)(3)(C)(ii)) is amended by striking ``fiscal years 1997 through 
2002'' and inserting ``fiscal years 2004 through 2008''.</DELETED>
<DELETED>    (c) Definition of Needy State.--Clauses (i) and (ii) of 
section 403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are amended by inserting 
after ``1996'' the following: ``, and the Food Stamp Act of 1977 as in 
effect during the corresponding 3-month period in the fiscal year 
preceding such most recently concluded 3-month period,''.</DELETED>
<DELETED>    (d) Annual Reconciliation: Federal Matching of State 
Expenditures Above ``Maintenance of Effort'' Level.--Section 403(b)(6) 
(42 U.S.C. 603(b)(6)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A)(ii)--</DELETED>
                <DELETED>    (A) by adding ``and'' at the end of 
                subclause (I);</DELETED>
                <DELETED>    (B) by striking ``; and'' at the end of 
                subclause (II) and inserting a period; and</DELETED>
                <DELETED>    (C) by striking subclause (III);</DELETED>
        <DELETED>    (2) in subparagraph (B)(i)(II), by striking all 
        that follows ``section 409(a)(7)(B)(iii))'' and inserting a 
        period;</DELETED>
        <DELETED>    (3) by amending subparagraph (B)(ii)(I) to read as 
        follows:</DELETED>
                                <DELETED>    ``(I) the qualified State 
                                expenditures (as defined in section 
                                409(a)(7)(B)(i)) for the fiscal year; 
                                plus''; and</DELETED>
        <DELETED>    (4) by striking subparagraph (C).</DELETED>
<DELETED>    (e) Consideration of Certain Child Care Expenditures in 
Determining State Compliance With Contingency Fund Maintenance of 
Effort Requirement.--Section 409(a)(10) (42 U.S.C. 609(a)(10)) is 
amended--</DELETED>
        <DELETED>    (1) by striking ``(other than the expenditures 
        described in subclause (I)(bb) of that paragraph)) under the 
        State program funded under this part'' and inserting a close 
        parenthesis; and</DELETED>
        <DELETED>    (2) by striking ``excluding any amount expended by 
        the State for child care under subsection (g) or (i) of section 
        402 (as in effect during fiscal year 1994) for fiscal year 
        1994,''.</DELETED>
<DELETED>    (f) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2003.</DELETED>

<DELETED>SEC. 107. USE OF FUNDS.</DELETED>

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

<DELETED>SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE 
              PROGRAMS.</DELETED>

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

<DELETED>SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUFFICIENCY 
              PLAN REQUIREMENTS.</DELETED>

<DELETED>    (a) Modification of State Plan Requirements.--Section 
402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is amended by striking clauses 
(ii) and (iii) and inserting the following:</DELETED>
                        <DELETED>    ``(ii) Require a parent or 
                        caretaker receiving assistance under the 
                        program to engage in work or alternative self-
                        sufficiency activities (as defined by the 
                        State), consistent with section 
                        407(e)(2).</DELETED>
                        <DELETED>    ``(iii) Require families receiving 
                        assistance under the program to engage in 
                        activities in accordance with family self-
                        sufficiency plans developed pursuant to section 
                        408(b).''.</DELETED>
<DELETED>    (b) Establishment of Family Self-Sufficiency Plans.--
</DELETED>
        <DELETED>    (1) In general.--Section 408(b) (42 U.S.C. 608(b)) 
        is amended to read as follows:</DELETED>
<DELETED>    ``(b) Family Self-Sufficiency Plans.--</DELETED>
        <DELETED>    ``(1) In general.--A State to which a grant is 
        made under section 403 shall--</DELETED>
                <DELETED>    ``(A) assess, in the manner deemed 
                appropriate by the State, the skills, prior work 
                experience, and employability of each work-eligible 
                individual (as defined in section 407(b)(2)(C)) 
                receiving assistance under the State program funded 
                under this part;</DELETED>
                <DELETED>    ``(B) establish for each family that 
                includes such an individual, in consultation as the 
                State deems appropriate with the individual, a self-
                sufficiency plan that specifies appropriate activities 
                described in the State plan submitted pursuant to 
                section 402, including direct work activities as 
                appropriate designed to assist the family in achieving 
                their maximum degree of self-sufficiency, and that 
                provides for the ongoing participation of the 
                individual in the activities;</DELETED>
                <DELETED>    ``(C) require, at a minimum, each such 
                individual to participate in activities in accordance 
                with the self-sufficiency plan;</DELETED>
                <DELETED>    ``(D) monitor the participation of each 
                such individual in the activities specified in the self 
                sufficiency plan, and regularly review the progress of 
                the family toward self-sufficiency;</DELETED>
                <DELETED>    ``(E) upon such a review, revise the self-
                sufficiency plan and activities as the State deems 
                appropriate.</DELETED>
        <DELETED>    ``(2) Timing.--The State shall comply with 
        paragraph (1) with respect to a family--</DELETED>
                <DELETED>    ``(A) in the case of a family that, as of 
                October 1, 2003, is not receiving assistance from the 
                State program funded under this part, not later than 60 
                days after the family first receives assistance on the 
                basis of the most recent application for the 
                assistance; or</DELETED>
                <DELETED>    ``(B) in the case of a family that, as of 
                such date, is receiving the assistance, not later than 
                12 months after the date of enactment of this 
                subsection.</DELETED>
        <DELETED>    ``(3) State discretion.--A State shall have sole 
        discretion, consistent with section 407, to define and design 
        activities for families for purposes of this subsection, to 
        develop methods for monitoring and reviewing progress pursuant 
        to this subsection, and to make modifications to the plan as 
        the State deems appropriate to assist the individual in 
        increasing their degree of self-sufficiency.</DELETED>
        <DELETED>    ``(4) Rule of interpretation.--Nothing in this 
        part shall preclude a State from requiring participation in 
        work and any other activities the State deems appropriate for 
        helping families achieve self-sufficiency and improving child 
        well-being.''.</DELETED>
        <DELETED>    (2) Penalty for failure to establish family self-
        sufficiency plan.--Section 409(a)(3) (42 U.S.C. 609(a)(3)) is 
        amended--</DELETED>
                <DELETED>    (A) in the paragraph heading, by inserting 
                ``or establish family self-sufficiency plan'' after 
                ``rates''; and</DELETED>
                <DELETED>    (B) in subparagraph (A), by inserting ``or 
                408(b)'' after ``407(a)''.</DELETED>

<DELETED>SEC. 110. WORK PARTICIPATION REQUIREMENTS.</DELETED>

<DELETED>    (a) Elimination of Separate Participation Rate 
Requirements for 2-Parent Families.--</DELETED>
        <DELETED>    (1) In general.--</DELETED>
                <DELETED>    (A) Section 407 (42 U.S.C. 607) is amended 
                in each of subsections (a) and (b) by striking 
                paragraph (2).</DELETED>
                <DELETED>    (B) Section 407(b)(4) (42 U.S.C. 
                607(b)(4)) is amended by striking ``paragraphs (1)(B) 
                and (2)(B)'' and inserting ``paragraph 
                (1)(B)''.</DELETED>
                <DELETED>    (C) Section 407(c)(1) (42 U.S.C. 
                607(c)(1)) is amended by striking subparagraph 
                (B).</DELETED>
                <DELETED>    (D) Section 407(c)(2)(D) (42 U.S.C. 
                607(c)(2)(D)) is amended by striking ``paragraphs 
                (1)(B)(i) and (2)(B) of subsection (b)'' and inserting 
                ``subsection (b)(1)(B)(i)''.</DELETED>
        <DELETED>    (2) Effective date.--The amendments made by 
        paragraph (1) shall take effect on October 1, 2002.</DELETED>
<DELETED>    (b) Work Participation Requirements.--Section 407 (42 
U.S.C. 607) is amended by striking all that precedes subsection (b)(3) 
and inserting the following:</DELETED>

<DELETED>``SEC. 407. WORK PARTICIPATION REQUIREMENTS.</DELETED>

<DELETED>    ``(a) Participation Rate Requirements.--A State to which a 
grant is made under section 403 for a fiscal year shall achieve a 
minimum participation rate equal to not less than--</DELETED>
        <DELETED>    ``(1) 50 percent for fiscal year 2004;</DELETED>
        <DELETED>    ``(2) 55 percent for fiscal year 2005;</DELETED>
        <DELETED>    ``(3) 60 percent for fiscal year 2006;</DELETED>
        <DELETED>    ``(4) 65 percent for fiscal year 2007; 
        and</DELETED>
        <DELETED>    ``(5) 70 percent for fiscal year 2008 and each 
        succeeding fiscal year.</DELETED>
<DELETED>    ``(b) Calculation of Participation Rates.--</DELETED>
        <DELETED>    ``(1) Average monthly rate.--For purposes of 
        subsection (a), the participation rate of a State for a fiscal 
        year is the average of the participation rates of the State for 
        each month in the fiscal year.</DELETED>
        <DELETED>    ``(2) Monthly participation rates; incorporation 
        of 40-hour work week standard.--</DELETED>
                <DELETED>    ``(A) In general.--For purposes of 
                paragraph (1), the participation rate of a State for a 
                month is--</DELETED>
                        <DELETED>    ``(i) the total number of 
                        countable hours (as defined in subsection (c)) 
                        with respect to the counted families for the 
                        State for the month; divided by</DELETED>
                        <DELETED>    ``(ii) 160 multiplied by the 
                        number of counted families for the State for 
                        the month.</DELETED>
                <DELETED>    ``(B) Counted families defined.--
                </DELETED>
                        <DELETED>    ``(i) In general.--In subparagraph 
                        (A), the term `counted family' means, with 
                        respect to a State and a month, a family that 
                        includes a work-eligible individual and that 
                        receives assistance in the month under the 
                        State program funded under this part, subject 
                        to clause (ii).</DELETED>
                        <DELETED>    ``(ii) State option to exclude 
                        certain families.--At the option of a State, 
                        the term `counted family' shall not include--
                        </DELETED>
                                <DELETED>    ``(I) a family in the 
                                first month for which the family 
                                receives assistance from a State 
                                program funded under this part on the 
                                basis of the most recent application 
                                for such assistance; or</DELETED>
                                <DELETED>    ``(II) on a case-by-case 
                                basis, a family in which the youngest 
                                child has not attained 12 months of 
                                age.</DELETED>
                        <DELETED>    ``(iii) State option to include 
                        individuals receiving assistance under a tribal 
                        family assistance plan or tribal work 
                        program.--At the option of a State, the term 
                        `counted family' may include families in the 
                        State that are receiving assistance under a 
                        tribal family assistance plan approved under 
                        section 412 or under a tribal work program to 
                        which funds are provided under this 
                        part.</DELETED>
                <DELETED>    ``(C) Work-eligible individual defined.--
                In this section, the term `work-eligible individual' 
                means an individual--</DELETED>
                        <DELETED>    ``(i) who is married or a single 
                        head of household; and</DELETED>
                        <DELETED>    ``(ii) whose needs are (or, but 
                        for sanctions under this part that have been in 
                        effect for more than 3 months (whether or not 
                        consecutive) in the preceding 12 months or 
                        under part D, would be) included in determining 
                        the amount of cash assistance to be provided to 
                        the family under the State program funded under 
                        this part.''.</DELETED>
<DELETED>    (c) Recalibration of Caseload Reduction Credit.--
</DELETED>
        <DELETED>    (1) In general.--Section 407(b)(3)(A)(ii) (42 
        U.S.C. 607(b)(3)(A)(ii)) is amended to read as 
        follows:</DELETED>
                        <DELETED>    ``(ii) the average monthly number 
                        of families that received assistance under the 
                        State program funded under this part during the 
                        base year.''.</DELETED>
        <DELETED>    (2) Conforming amendment.--Section 407(b)(3)(B) 
        (42 U.S.C. 607(b)(3)(B)) is amended by striking ``and 
        eligibility criteria'' and all that follows through the close 
        parenthesis and inserting ``and the eligibility criteria in 
        effect during the then applicable base year''.</DELETED>
        <DELETED>    (3) Base year defined.--Section 407(b)(3) (42 
        U.S.C. 607(b)(3)) is amended by adding at the end the 
        following:</DELETED>
                <DELETED>    ``(C) Base year defined.--In this 
                paragraph, the term `base year' means, with respect to 
                a fiscal year--</DELETED>
                                <DELETED>    ``(I) if the fiscal year 
                                is fiscal year 2004, fiscal year 
                                1996;</DELETED>
                                <DELETED>    ``(II) if the fiscal year 
                                is fiscal year 2005, fiscal year 
                                1998;</DELETED>
                                <DELETED>    ``(III) if the fiscal year 
                                is fiscal year 2006, fiscal year 2001; 
                                or</DELETED>
                                <DELETED>    ``(IV) if the fiscal year 
                                is fiscal year 2007 or any succeeding 
                                fiscal year, the then 4th preceding 
fiscal year.''.</DELETED>
<DELETED>    (d) Superachiever Credit.--Section 407(b) (42 U.S.C. 
607(b)) is amended by striking paragraphs (4) and (5) and inserting the 
following:</DELETED>
        <DELETED>    ``(4) Superachiever credit.--</DELETED>
                <DELETED>    ``(A) In general.--The participation rate, 
                determined under paragraphs (1) and (2) of this 
                subsection, of a superachiever State for a fiscal year 
                shall be increased by the lesser of--</DELETED>
                        <DELETED>    ``(i) the amount (if any) of the 
                        superachiever credit applicable to the State; 
                        or</DELETED>
                        <DELETED>    ``(ii) the number of percentage 
                        points (if any) by which the minimum 
                        participation rate required by subsection (a) 
                        for the fiscal year exceeds 50 
                        percent.</DELETED>
                <DELETED>    ``(B) Superachiever state.--For purposes 
                of subparagraph (A), a State is a superachiever State 
                if the State caseload for fiscal year 2001 has declined 
                by at least 60 percent from the State caseload for 
                fiscal year 1995.</DELETED>
                <DELETED>    ``(C) Amount of credit.--The superachiever 
                credit applicable to a State is the number of 
                percentage points (if any) by which the decline 
                referred to in subparagraph (B) exceeds 60 
                percent.</DELETED>
                <DELETED>    ``(D) Definitions.--In this 
                paragraph:</DELETED>
                        <DELETED>    ``(i) State caseload for fiscal 
                        year 2001.--The term `State caseload for fiscal 
                        year 2001' means the average monthly number of 
                        families that received assistance during fiscal 
                        year 2001 under the State program funded under 
                        this part.</DELETED>
                        <DELETED>    ``(ii) State caseload for fiscal 
                        year 1995.--The term `State caseload for fiscal 
                        year 1995' means the average monthly number of 
                        families that received aid under the State plan 
                        approved under part A (as in effect on 
                        September 30, 1995) during fiscal year 
                        1995.''.</DELETED>
<DELETED>    (e) Countable Hours.--Section 407 of such Act (42 U.S.C. 
607) is amended by striking subsections (c) and (d) and inserting the 
following:</DELETED>
<DELETED>    ``(c) Countable Hours.--</DELETED>
        <DELETED>    ``(1) Definition.--In subsection (b)(2), the term 
        `countable hours' means, with respect to a family for a month, 
        the total number of hours in the month in which any member of 
        the family who is a work-eligible individual is engaged in a 
        direct work activity or other activities specified by the State 
        (excluding an activity that does not address a purpose 
        specified in section 401(a)), subject to the other provisions 
        of this subsection.</DELETED>
        <DELETED>    ``(2) Limitations.--Subject to such regulations as 
        the Secretary may prescribe:</DELETED>
                <DELETED>    ``(A) Minimum weekly average of 24 hours 
                of direct work activities required.--If the work-
                eligible individuals in a family are engaged in a 
                direct work activity for an average total of fewer than 
                24 hours per week in a month, then the number of 
                countable hours with respect to the family for the 
                month shall be zero.</DELETED>
                <DELETED>    ``(B) Maximum weekly average of 16 hours 
                of other activities.--An average of not more than 16 
                hours per week of activities specified by the State 
                (subject to the exclusion described in paragraph (1)) 
                may be considered countable hours in a month with 
                respect to a family.</DELETED>
        <DELETED>    ``(3) Special rules.--For purposes of paragraph 
        (1):</DELETED>
                <DELETED>    ``(A) Participation in qualified 
                activities.--</DELETED>
                        <DELETED>    ``(i) In general.--If, with the 
                        approval of the State, the work-eligible 
                        individuals in a family are engaged in 1 or 
                        more qualified activities for an average total 
                        of at least 24 hours per week in a month, then 
                        all such engagement in the month shall be 
                        considered engagement in a direct work 
                        activity, subject to clause (iii).</DELETED>
                        <DELETED>    ``(ii) Qualified activity 
                        defined.--The term `qualified activity' means 
                        an activity specified by the State (subject to 
                        the exclusion described in paragraph (1)) that 
                        meets such standards and criteria as the State 
                        may specify, including--</DELETED>
                                <DELETED>    ``(I) substance abuse 
                                counseling or treatment;</DELETED>
                                <DELETED>    ``(II) rehabilitation 
                                treatment and services;</DELETED>
                                <DELETED>    ``(III) work-related 
                                education or training directed at 
                                enabling the family member to 
                                work;</DELETED>
                                <DELETED>    ``(IV) job search or job 
                                readiness assistance; and</DELETED>
                                <DELETED>    ``(V) any other activity 
                                that addresses a purpose specified in 
                                section 401(a).</DELETED>
                        <DELETED>    ``(iii) Limitation.--</DELETED>
                                <DELETED>    ``(I) In general.--Except 
                                as provided in subclause (II), clause 
                                (i) shall not apply to a family for 
                                more than 3 months in any period of 24 
                                consecutive months.</DELETED>
                                <DELETED>    ``(II) Special rule 
                                applicable to education and training.--
                                A State may, on a case-by-case basis, 
                                apply clause (i) to a work-eligible 
                                individual so that participation by the 
                                individual in education or training, if 
                                needed to permit the individual to 
                                complete a certificate program or other 
                                work-related education or training 
                                directed at enabling the individual to 
                                fill a known job need in a local area, 
                                may be considered countable hours with 
                                respect to the family of the individual 
                                for not more than 4 months in any 
                                period of 24 consecutive 
                                months.</DELETED>
                <DELETED>    ``(B) School attendance by teen head of 
                household.--The work-eligible members of a family shall 
                be considered to be engaged in a direct work activity 
                for an average of 40 hours per week in a month if the 
                family includes an individual who is married, or is a 
                single head of household, who has not attained 20 years 
                of age, and the individual--</DELETED>
                        <DELETED>    ``(i) maintains satisfactory 
                        attendance at secondary school or the 
                        equivalent in the month; or</DELETED>
                        <DELETED>    ``(ii) participates in education 
                        directly related to employment for an average 
                        of at least 20 hours per week in the 
                        month.</DELETED>
<DELETED>    ``(d) Direct Work Activity.--In this section, the term 
`direct work activity' means--</DELETED>
        <DELETED>    ``(1) unsubsidized employment;</DELETED>
        <DELETED>    ``(2) subsidized private sector 
        employment;</DELETED>
        <DELETED>    ``(3) subsidized public sector 
        employment;</DELETED>
        <DELETED>    ``(4) on-the-job training;</DELETED>
        <DELETED>    ``(5) supervised work experience; or</DELETED>
        <DELETED>    ``(6) supervised community service.''.</DELETED>
<DELETED>    (f) Penalties Against Individuals.--Section 407(e)(1) (42 
U.S.C. 607(e)(1)) is amended to read as follows:</DELETED>
        <DELETED>    ``(1) Reduction or termination of assistance.--
        </DELETED>
                <DELETED>    ``(A) In general.--Except as provided in 
                paragraph (2), if an individual in a family receiving 
                assistance under a State program funded under this part 
                fails to engage in activities required in accordance 
                with this section, or other activities required by the 
                State under the program, and the family does not 
                otherwise engage in activities in accordance with the 
                self-sufficiency plan established for the family 
                pursuant to section 408(b), the State shall--</DELETED>
                        <DELETED>    ``(i) if the failure is partial or 
                        persists for not more than 1 month--</DELETED>
                                <DELETED>    ``(I) reduce the amount of 
                                assistance otherwise payable to the 
                                family pro rata (or more, at the option 
                                of the State) with respect to any 
                                period during a month in which the 
                                failure occurs; or</DELETED>
                                <DELETED>    ``(II) terminate all 
                                assistance to the family, subject to 
                                such good cause exceptions as the State 
                                may establish; or</DELETED>
                        <DELETED>    ``(ii) if the failure is total and 
                        persists for at least 2 consecutive months, 
                        terminate all cash payments to the family 
                        including qualified State expenditures (as 
                        defined in section 409(a)(7)(B)(i)) for at 
                        least 1 month and thereafter until the State 
                        determines that the individual has resumed full 
                        participation in the activities, subject to 
                        such good cause exceptions as the State may 
                        establish.</DELETED>
                <DELETED>    ``(B) Special rule.--</DELETED>
                        <DELETED>    ``(i) In general.--In the event of 
                        a conflict between a requirement of clause 
                        (i)(II) or (ii) of subparagraph (A) and a 
                        requirement of a State constitution, or of a 
                        State statute that, before 1966, obligated 
                        local government to provide assistance to needy 
                        parents and children, the State constitutional 
                        or statutory requirement shall 
                        control.</DELETED>
                        <DELETED>    ``(ii) Limitation.--Clause (i) of 
                        this subparagraph shall not apply after the 1-
                        year period that begins with the date of the 
                        enactment of this subparagraph.''.</DELETED>
<DELETED>    (g) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section 407(f) (42 U.S.C. 607(f)) is amended 
        in each of paragraphs (1) and (2) by striking ``work activity 
        described in subsection (d)'' and inserting ``direct work 
        activity''.</DELETED>
        <DELETED>    (2) The heading of section 409(a)(14) (42 U.S.C. 
        609(a)(14)) is amended by inserting ``or refusing to engage in 
        activities under a family self-sufficiency plan'' after 
        ``work''.</DELETED>
<DELETED>    (h) Effective Date.--The amendments made by this section 
(other than subsection (a)) shall take effect on October 1, 
2003.</DELETED>

<DELETED>SEC. 111. MAINTENANCE OF EFFORT.</DELETED>

<DELETED>    (a) In General.--Section 409(a)(7) (42 U.S.C. 609(a)(7)) 
is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A) by striking ``fiscal year 
        1998, 1999, 2000, 2001, 2002, or 2003'' and inserting ``fiscal 
        year 2003, 2004, 2005, 2006, 2007, 2008, or 2009''; 
        and</DELETED>
        <DELETED>    (2) in subparagraph (B)(ii)--</DELETED>
                <DELETED>    (A) by inserting ``preceding'' before 
                ``fiscal year''; and</DELETED>
                <DELETED>    (B) by striking ``for fiscal years 1997 
                through 2002,''.</DELETED>
<DELETED>    (b) State Spending on Promoting Healthy Marriage.--
</DELETED>
        <DELETED>    (1) In general.--Section 404 (42 U.S.C. 604) is 
        amended by adding at the end the following:</DELETED>
<DELETED>    ``(l) Marriage Promotion.--A State, territory, or tribal 
organization to which a grant is made under section 403(a)(2) may use a 
grant made to the State, territory, or tribal organization under any 
other provision of section 403 for marriage promotion activities, and 
the amount of any such grant so used shall be considered State funds 
for purposes of section 403(a)(2).''.</DELETED>
        <DELETED>    (2) Federal tanf funds used for marriage promotion 
        disregarded for purposes of maintenance of effort 
        requirement.--Section 409(a)(7)(B)(i) (42 U.S.C. 
        609(a)(7)(B)(i)), as amended by section 103(c) of this Act, is 
        amended by adding at the end the following:</DELETED>
                                <DELETED>    ``(VI) Exclusion of 
                                federal tanf funds used for marriage 
                                promotion activities.--Such term does 
                                not include the amount of any grant 
                                made to the State under section 403 
                                that is expended for a marriage 
                                promotion activity.''.</DELETED>

<DELETED>SEC. 112. PERFORMANCE IMPROVEMENT.</DELETED>

<DELETED>    (a) State Plans.--Section 402(a) (42 U.S.C. 602(a)) is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) in subparagraph (A)--</DELETED>
                        <DELETED>    (i) by redesignating clause (vi) 
                        and clause (vii) (as added by section 103(a) of 
                        this Act) as clauses (vii) and (viii), 
                        respectively; and</DELETED>
                        <DELETED>    (ii) by striking clause (v) and 
                        inserting the following:</DELETED>
                        <DELETED>    ``(v) The document shall--
                        </DELETED>
                                <DELETED>    ``(I) describe how the 
                                State will pursue ending dependence of 
                                needy families on government benefits 
                                and reducing poverty by promoting job 
                                preparation and work;</DELETED>
                                <DELETED>    ``(II) describe how the 
                                State will encourage the formation and 
                                maintenance of healthy 2-parent married 
                                families, encourage responsible 
                                fatherhood, and prevent and reduce the 
                                incidence of out-of-wedlock 
                                pregnancies;</DELETED>
                                <DELETED>    ``(III) include specific, 
                                numerical, and measurable performance 
                                objectives for accomplishing subclauses 
                                (I) and (II), and with respect to 
                                subclause (I), include objectives 
                                consistent with the criteria used by 
                                the Secretary in establishing 
                                performance targets under section 
                                403(a)(4)(B) if available; 
                                and</DELETED>
                                <DELETED>    ``(IV) describe the 
                                methodology that the State will use to 
                                measure State performance in relation 
                                to each such objective.</DELETED>
                        <DELETED>    ``(vi) Describe any strategies and 
                        programs the State may be undertaking to 
                        address--</DELETED>
                                <DELETED>    ``(I) employment retention 
                                and advancement for recipients of 
                                assistance under the program, including 
                                placement into high-demand jobs, and 
                                whether the jobs are identified using 
                                labor market information;</DELETED>
                                <DELETED>    ``(II) efforts to reduce 
                                teen pregnancy;</DELETED>
                                <DELETED>    ``(III) services for 
                                struggling and noncompliant families, 
                                and for clients with special problems; 
                                and</DELETED>
                                <DELETED>    ``(IV) program 
                                integration, including the extent to 
                                which employment and training services 
                                under the program are provided through 
the One-Stop delivery system created under the Workforce Investment Act 
of 1998, and the extent to which former recipients of such assistance 
have access to additional core, intensive, or training services funded 
through such Act.''; and</DELETED>
                <DELETED>    (B) in subparagraph (B), by striking 
                clause (iii) (as so redesignated by section 107(b)(1) 
                of this Act) and inserting the following:</DELETED>
                        <DELETED>    ``(iii) The document shall 
                        describe strategies and programs the State is 
                        undertaking to engage religious organizations 
                        in the provision of services funded under this 
                        part and efforts related to section 104 of the 
                        Personal Responsibility and Work Opportunity 
                        Reconciliation Act of 1996.</DELETED>
                        <DELETED>    ``(iv) The document shall describe 
                        strategies to improve program management and 
                        performance.''; and</DELETED>
        <DELETED>    (2) in paragraph (4), by inserting ``and tribal'' 
        after ``that local''.</DELETED>
<DELETED>    (b) Consultation With State Regarding Plan and Design of 
Tribal Programs.--Section 412(b)(1) (42 U.S.C. 612(b)(1)) is amended--
</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of subparagraph 
        (E);</DELETED>
        <DELETED>    (2) by striking the period at the end of 
        subparagraph (F) and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
                <DELETED>    ``(G) provides an assurance that the State 
                in which the tribe is located has been consulted 
                regarding the plan and its design.''.</DELETED>
<DELETED>    (c) Performance Measures.--Section 413 (42 U.S.C. 613) is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(k) Performance Improvement.--The Secretary, in 
consultation with the States, shall develop uniform performance 
measures designed to assess the degree of effectiveness, and the degree 
of improvement, of State programs funded under this part in 
accomplishing the purposes of this part.''.</DELETED>
<DELETED>    (d) Annual Ranking of States.--Section 413(d)(1) (42 
U.S.C. 613(d)(1)) is amended by striking ``long-term private sector 
jobs'' and inserting ``private sector jobs, the success of the 
recipients in retaining employment, the ability of the recipients to 
increase their wages''.</DELETED>

<DELETED>SEC. 113. DATA COLLECTION AND REPORTING.</DELETED>

<DELETED>    (a) Contents of Report.--Section 411(a)(1)(A) (42 U.S.C. 
611(a)(1)(A)) is amended--</DELETED>
        <DELETED>    (1) in the matter preceding clause (i), by 
        inserting ``and on families receiving assistance under State 
        programs funded with other qualified State expenditures (as 
        defined in section 409(a)(7)(B))'' before the colon;</DELETED>
        <DELETED>    (2) in clause (vii), by inserting ``and minor 
        parent'' after ``of each adult'';</DELETED>
        <DELETED>    (3) in clause (viii), by striking ``and 
        educational level'';</DELETED>
        <DELETED>    (4) in clause (ix), by striking ``, and if the 
        latter 2, the amount received'';</DELETED>
        <DELETED>    (5) in clause (x)--</DELETED>
                <DELETED>    (A) by striking ``each type of''; 
                and</DELETED>
                <DELETED>    (B) by inserting before the period ``and, 
                if applicable, the reason for receipt of the assistance 
                for a total of more than 60 months'';</DELETED>
        <DELETED>    (6) in clause (xi), by striking the subclauses and 
        inserting the following:</DELETED>
                                <DELETED>    ``(I) Subsidized private 
                                sector employment.</DELETED>
                                <DELETED>    ``(II) Unsubsidized 
                                employment.</DELETED>
                                <DELETED>    ``(III) Public sector 
                                employment, supervised work experience, 
                                or supervised community 
                                service.</DELETED>
                                <DELETED>    ``(IV) On-the-job 
                                training.</DELETED>
                                <DELETED>    ``(V) Job search and 
                                placement.</DELETED>
                                <DELETED>    ``(VI) Training.</DELETED>
                                <DELETED>    ``(VII) 
                                Education.</DELETED>
                                <DELETED>    ``(VIII) Other activities 
                                directed at the purposes of this part, 
                                as specified in the State plan 
                                submitted pursuant to section 
                                402.'';</DELETED>
        <DELETED>    (7) in clause (xii), by inserting ``and progress 
        toward universal engagement'' after ``participation 
        rates'';</DELETED>
        <DELETED>    (8) in clause (xiii), by striking ``type and'' 
        before ``amount of assistance'';</DELETED>
        <DELETED>    (9) in clause (xvi), by striking subclause (II) 
        and redesignating subclauses (III) through (V) as subclauses 
        (II) through (IV), respectively; and</DELETED>
        <DELETED>    (10) by adding at the end the following:</DELETED>
                        <DELETED>    ``(xviii) The date the family 
                        first received assistance from the State 
                        program on the basis of the most recent 
                        application for such assistance.</DELETED>
                        <DELETED>    ``(xix) Whether a self-sufficiency 
                        plan is established for the family in 
                        accordance with section 408(b).</DELETED>
                        <DELETED>    ``(xx) With respect to any child 
                        in the family, the marital status of the 
                        parents at the birth of the child, and if the 
                        parents were not then married, whether the 
                        paternity of the child has been 
                        established.''.</DELETED>
<DELETED>    (b) Use of Samples.--Section 411(a)(1)(B) (42 U.S.C. 
611(a)(1)(B)) is amended--</DELETED>
        <DELETED>    (1) in clause (i)--</DELETED>
                <DELETED>    (A) by striking ``a sample'' and inserting 
                ``samples''; and</DELETED>
                <DELETED>    (B) by inserting before the period ``, 
                except that the Secretary may designate core data 
                elements that must be reported on all families''; 
                and</DELETED>
        <DELETED>    (2) in clause (ii), by striking ``funded under 
        this part'' and inserting ``described in subparagraph 
        (A)''.</DELETED>
<DELETED>    (c) Report on Families That Become Ineligible To Receive 
Assistance.--Section 411(a) (42 U.S.C. 611(a)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (5);</DELETED>
        <DELETED>    (2) by redesignating paragraph (6) as paragraph 
        (5); and</DELETED>
        <DELETED>    (3) by inserting after paragraph (5) (as so 
        redesignated) the following:</DELETED>
        <DELETED>    ``(6) Report on families that become ineligible to 
        receive assistance.--The report required by paragraph (1) for a 
        fiscal quarter shall include for each month in the quarter the 
        number of families and total number of individuals that, during 
        the month, became ineligible to receive assistance under the 
        State program funded under this part (broken down by the number 
        of families that become so ineligible due to earnings, changes 
        in family composition that result in increased earnings, 
        sanctions, time limits, or other specified 
        reasons).''.</DELETED>
<DELETED>    (d) Regulations.--Section 411(a)(7) (42 U.S.C. 611(a)(7)) 
is amended--</DELETED>
        <DELETED>    (1) by inserting ``and to collect the necessary 
        data'' before ``with respect to which reports'';</DELETED>
        <DELETED>    (2) by striking ``subsection'' and inserting 
        ``section''; and</DELETED>
        <DELETED>    (3) by striking ``in defining the data elements'' 
        and all that follows and inserting ``, the National Governors' 
        Association, the American Public Human Services Association, 
        the National Conference of State Legislatures, and others in 
        defining the data elements.''.</DELETED>
<DELETED>    (e) Additional Reports by States.--Section 411 (42 U.S.C. 
611) is amended--</DELETED>
        <DELETED>    (1) by redesignating subsection (b) as subsection 
        (e); and</DELETED>
        <DELETED>    (2) by inserting after subsection (a) the 
        following:</DELETED>
<DELETED>    ``(b) Annual Reports on Program Characteristics.--Not 
later than 90 days after the end of fiscal year 2004 and each 
succeeding fiscal year, each eligible State shall submit to the 
Secretary a report on the characteristics of the State program funded 
under this part and other State programs funded with qualified State 
expenditures (as defined in section 409(a)(7)(B)(i)). The report shall 
include, with respect to each such program, the program name, a 
description of program activities, the program purpose, the program 
eligibility criteria, the sources of program funding, the number of 
program beneficiaries, sanction policies, and any program work 
requirements.</DELETED>
<DELETED>    ``(c) Monthly Reports on Caseload.--Not later than 3 
months after the end of a calendar month that begins 1 year or more 
after the enactment of this subsection, each eligible State shall 
submit to the Secretary a report on the number of families and total 
number of individuals receiving assistance in the calendar month under 
the State program funded under this part.</DELETED>
<DELETED>    ``(d) Annual Report on Performance Improvement.--Beginning 
with fiscal year 2005, not later than January 1 of each fiscal year, 
each eligible State shall submit to the Secretary a report on 
achievement and improvement during the preceding fiscal year under the 
numerical performance goals and measures under the State program funded 
under this part with respect to each of the matters described in 
section 402(a)(1)(A)(v).''.</DELETED>
<DELETED>    (f) Annual Reports to Congress by the Secretary.--Section 
411(e), as so redesignated by subsection (e) of this section, is 
amended--</DELETED>
        <DELETED>    (1) in the matter preceding paragraph (1), by 
        striking ``and each fiscal year thereafter'' and inserting 
        ``and by July 1 of each fiscal year thereafter'';</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``families 
        applying for assistance,'' and by striking the last comma; 
        and</DELETED>
        <DELETED>    (3) in paragraph (3), by inserting ``and other 
        programs funded with qualified State expenditures (as defined 
        in section 409(a)(7)(B)(i))'' before the semicolon.</DELETED>
<DELETED>    (g) Increased Analysis of State Single Audit Reports.--
Section 411 (42 U.S.C. 611) is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(f) Increased Analysis of State Single Audit Reports.--
</DELETED>
        <DELETED>    ``(1) In general.--Within 3 months after a State 
        submits to the Secretary a report pursuant to section 
        7502(a)(1)(A) of title 31, United States Code, the Secretary 
        shall analyze the report for the purpose of identifying the 
        extent and nature of problems related to the oversight by the 
        State of nongovernmental entities with respect to contracts 
        entered into by such entities with the State program funded 
        under this part, and determining what additional actions may be 
        appropriate to help prevent and correct the problems.</DELETED>
        <DELETED>    ``(2) Inclusion of program oversight section in 
        annual report to the congress.--The Secretary shall include in 
        each report under subsection (e) a section on oversight of 
        State programs funded under this part, including findings on 
        the extent and nature of the problems referred to in paragraph 
        (1), actions taken to resolve the problems, and to the extent 
        the Secretary deems appropriate make recommendations on changes 
        needed to resolve the problems.''.</DELETED>

<DELETED>SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY INDIAN 
              TRIBES.</DELETED>

<DELETED>    (a) Tribal Family Assistance Grant.--Section 412(a)(1)(A) 
(42 U.S.C. 612(a)(1)(A)) is amended by striking ``1997, 1998, 1999, 
2000, 2001, and 2002'' and inserting ``2004 through 2008''.</DELETED>
<DELETED>    (b) Grants for Indian Tribes That Received JOBS Funds.--
Section 412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)) is amended by striking 
``1997, 1998, 1999, 2000, 2001, and 2002'' and inserting ``2004 through 
2008''.</DELETED>

<DELETED>SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL 
              STUDIES.</DELETED>

<DELETED>    (a) Secretary's Fund for Research, Demonstrations, and 
Technical Assistance.--Section 413 (42 U.S.C. 613), as amended by 
section 112(c) of this Act, is further amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(l) Funding for Research, Demonstrations, and Technical 
Assistance.--</DELETED>
        <DELETED>    ``(1) Appropriation.--</DELETED>
                <DELETED>    ``(A) In general.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated $102,000,000 for 
                each of fiscal years 2003 through 2008, which shall be 
                available to the Secretary for the purpose of 
                conducting and supporting research and demonstration 
                projects by public or private entities, and providing 
                technical assistance to States, Indian tribal 
                organizations, and such other entities as the Secretary 
                may specify that are receiving a grant under this part, 
                which shall be expended primarily on activities 
                described in section 403(a)(2)(B), and which shall be 
                in addition to any other funds made available under 
                this part.</DELETED>
                <DELETED>    ``(B) Extended availability of fy 2003 
                funds.--Funds appropriated under this paragraph for 
                fiscal year 2003 shall remain available to the 
                Secretary through fiscal year 2004, for use in 
                accordance with this paragraph for fiscal year 
                2003.</DELETED>
        <DELETED>    ``(2) Set aside for demonstration projects for 
        coordination of provision of child welfare and tanf services to 
        tribal families at risk of child abuse or neglect.--</DELETED>
                <DELETED>    ``(A) In general.--Of the amounts made 
                available under paragraph (1) for a fiscal year, 
                $2,000,000 shall be awarded on a competitive basis to 
                fund demonstration projects designed to test the 
                effectiveness of tribal governments or tribal consortia 
                in coordinating the provision to tribal families at 
                risk of child abuse or neglect of child welfare 
                services and services under tribal programs funded 
                under this part.</DELETED>
                <DELETED>    ``(B) Use of funds.--A grant made to such 
                a project shall be used--</DELETED>
                        <DELETED>    ``(i) to improve case management 
                        for families eligible for assistance from such 
                        a tribal program;</DELETED>
                        <DELETED>    ``(ii) for supportive services and 
                        assistance to tribal children in out-of-home 
                        placements and the tribal families caring for 
                        such children, including families who adopt 
                        such children; and</DELETED>
                        <DELETED>    ``(iii) for prevention services 
                        and assistance to tribal families at risk of 
                        child abuse and neglect.</DELETED>
                <DELETED>    ``(C) Reports.--The Secretary may require 
                a recipient of funds awarded under this paragraph to 
                provide the Secretary with such information as the 
                Secretary deems relevant to enable the Secretary to 
                facilitate and oversee the administration of any 
project for which funds are provided under this paragraph.''.</DELETED>
<DELETED>    (b) Funding of Studies and Demonstrations.--Section 
413(h)(1) (42 U.S.C. 613(h)(1)) is amended in the matter preceding 
subparagraph (A) by striking ``1997 through 2002'' and inserting ``2004 
through 2008''.</DELETED>
<DELETED>    (c) Report on Enforcement of Certain Affidavits of Support 
and Sponsor Deeming.--Not later than March 31, 2004, the Secretary of 
Health and Human Services, in consultation with the Attorney General, 
shall submit to the Congress a report on the enforcement of affidavits 
of support and sponsor deeming as required by section 421, 422, and 432 
of the Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996.</DELETED>
<DELETED>    (d) Report on Coordination.--Not later than 6 months after 
the date of the enactment of this Act, the Secretary of Health and 
Human Services and the Secretary of Labor shall jointly submit a report 
to the Congress describing common or conflicting data elements, 
definitions, performance measures, and reporting requirements in the 
Workforce Investment Act of 1998 and part A of title IV of the Social 
Security Act, and, to the degree each Secretary deems appropriate, at 
the discretion of either Secretary, any other program administered by 
the respective Secretary, to allow greater coordination between the 
welfare and workforce development systems.</DELETED>

<DELETED>SEC. 116. STUDIES BY THE CENSUS BUREAU AND THE GENERAL 
              ACCOUNTING OFFICE.</DELETED>

<DELETED>    (a) Census Bureau Study.--</DELETED>
        <DELETED>    (1) In general.--Section 414(a) (42 U.S.C. 614(a)) 
        is amended to read as follows:</DELETED>
<DELETED>    ``(a) In General.--The Bureau of the Census shall 
implement or enhance a longitudinal survey of program participation, 
developed in consultation with the Secretary and made available to 
interested parties, to allow for the assessment of the outcomes of 
continued welfare reform on the economic and child well-being of low-
income families with children, including those who received assistance 
or services from a State program funded under this part, and, to the 
extent possible, shall provide State representative samples. The 
content of the survey should include such information as may be 
necessary to examine the issues of out-of-wedlock childbearing, 
marriage, welfare dependency and compliance with work requirements, the 
beginning and ending of spells of assistance, work, earnings and 
employment stability, and the well-being of children.''.</DELETED>
        <DELETED>    (2) Appropriation.--Section 414(b) (42 U.S.C. 
        614(b)) is amended--</DELETED>
                <DELETED>    (A) by striking ``1996,'' and all that 
                follows through ``2002'' and inserting ``2004 through 
                2008''; and</DELETED>
                <DELETED>    (B) by adding at the end the following: 
                ``Funds appropriated under this subsection shall remain 
                available through fiscal year 2008 to carry out 
                subsection (a).''.</DELETED>
<DELETED>    (b) GAO Study.--</DELETED>
        <DELETED>    (1) In general.--The Comptroller General of the 
        United States shall conduct a study to determine the combined 
        effect of the phase-out rates for Federal programs and policies 
        which provide support to low-income families and individuals as 
        they move from welfare to work, at all earning levels up to 
        $35,000 per year, for at least 5 States including Wisconsin and 
        California, and any potential disincentives the combined phase-
        out rates create for families to achieve independence or to 
        marry.</DELETED>
        <DELETED>    (2) Report.--Not later than 1 year after the date 
        of the enactment of this subsection, the Comptroller General 
        shall submit a report to Congress containing the results of the 
        study conducted under this section and, as appropriate, any 
        recommendations consistent with the results.</DELETED>

<DELETED>SEC. 117. DEFINITION OF ASSISTANCE.</DELETED>

<DELETED>    (a) In General.--Section 419 (42 U.S.C. 619) is amended by 
adding at the end the following:</DELETED>
        <DELETED>    ``(6) Assistance.--</DELETED>
                <DELETED>    ``(A) In general.--The term `assistance' 
                means payment, by cash, voucher, or other means, to or 
                for an individual or family for the purpose of meeting 
                a subsistence need of the individual or family 
                (including food, clothing, shelter, and related items, 
                but not including costs of transportation or child 
                care).</DELETED>
                <DELETED>    ``(B) Exception.--The term `assistance' 
                does not include a payment described in subparagraph 
                (A) to or for an individual or family on a short-term, 
                nonrecurring basis (as defined by the State in 
                accordance with regulations prescribed by the 
                Secretary).''.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is 
        amended by striking ``assistance'' and inserting 
        ``aid''.</DELETED>
        <DELETED>    (2) Section 404(f) (42 U.S.C. 604(f)) is amended 
        by striking ``assistance'' and inserting ``benefits or 
        services''.</DELETED>
        <DELETED>    (3) Section 408(a)(5)(B)(i) (42 U.S.C. 
        608(a)(5)(B)(i)) is amended in the heading by striking 
        ``assistance'' and inserting ``aid''.</DELETED>
        <DELETED>    (4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is 
        amended by striking ``assistance'' and inserting 
        ``aid''.</DELETED>

<DELETED>SEC. 118. TECHNICAL CORRECTIONS.</DELETED>

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

<DELETED>SEC. 119. FATHERHOOD PROGRAM.</DELETED>

<DELETED>    (a) Short Title.--This section may be cited as the 
``Promotion and Support of Responsible Fatherhood and Healthy Marriage 
Act of 2003''.</DELETED>
<DELETED>    (b) Fatherhood Program.--</DELETED>
        <DELETED>    (1) In general.--Title I of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (Public Law 104-193) is amended by adding at the end the 
        following:</DELETED>

<DELETED>``SEC. 117. FATHERHOOD PROGRAM.</DELETED>

<DELETED>    ``(a) In General.--Title IV (42 U.S.C. 601-679b) is 
amended by inserting after part B the following:</DELETED>

            <DELETED>```PART C--FATHERHOOD PROGRAM</DELETED>

<DELETED>```SEC. 441. FINDINGS AND PURPOSES.</DELETED>

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

<DELETED>```SEC. 442. DEFINITIONS.</DELETED>

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

<DELETED>```SEC. 443. COMPETITIVE GRANTS FOR SERVICE 
              PROJECTS.</DELETED>

<DELETED>    ```(a) In General.--The Secretary may make grants for 
fiscal years 2004 through 2008 to public and nonprofit community 
entities, including religious organizations, and to Indian tribes and 
tribal organizations, for demonstration service projects and activities 
designed to test the effectiveness of various approaches to accomplish 
the objectives specified in section 441(b)(1).</DELETED>
<DELETED>    ```(b) Eligibility Criteria for Full Service Grants.--In 
order to be eligible for a grant under this section, except as 
specified in subsection (c), an entity shall submit an application to 
the Secretary containing the following:</DELETED>
        <DELETED>    ```(1) Project description.--A statement 
        including--</DELETED>
                <DELETED>    ```(A) a description of the project and 
                how it will be carried out, including the geographical 
                area to be covered and the number and characteristics 
                of clients to be served, and how it will address each 
                of the 4 objectives specified in section 441(b)(1); 
                and</DELETED>
                <DELETED>    ```(B) a description of the methods to be 
                used by the entity or its contractor to assess the 
                extent to which the project was successful in 
                accomplishing its specific objectives and the general 
                objectives specified in section 441(b)(1).</DELETED>
        <DELETED>    ```(2) Experience and qualifications.--A 
        demonstration of ability to carry out the project, by means 
        such as demonstration of experience in successfully carrying 
        out projects of similar design and scope, and such other 
        information as the Secretary may find necessary to demonstrate 
        the entity's capacity to carry out the project, including the 
        entity's ability to provide the non-Federal share of project 
        resources.</DELETED>
        <DELETED>    ```(3) Addressing child abuse and neglect and 
        domestic violence.--A description of how the entity will assess 
        for the presence of, and intervene to resolve, domestic 
        violence and child abuse and neglect, including how the entity 
        will coordinate with State and local child protective service 
        and domestic violence programs.</DELETED>
        <DELETED>    ```(4) Addressing concerns relating to substance 
        abuse and sexual activity.--A commitment to make available to 
        each individual participating in the project education about 
        alcohol, tobacco, and other drugs, and about the health risks 
        associated with abusing such substances, and information about 
        diseases and conditions transmitted through substance abuse and 
        sexual contact, including HIV/AIDS, and to coordinate with 
        providers of services addressing such problems, as 
        appropriate.</DELETED>
        <DELETED>    ```(5) Coordination with specified programs.--An 
        undertaking to coordinate, as appropriate, with State and local 
        entities responsible for the programs under parts A, B, and D 
        of this title, including programs under title I of the 
        Workforce Investment Act of 1998 (including the One-Stop 
        delivery system), and such other programs as the Secretary may 
        require.</DELETED>
        <DELETED>    ```(6) Records, reports, and audits.--An agreement 
        to maintain such records, make such reports, and cooperate with 
        such reviews or audits as the Secretary may find necessary for 
        purposes of oversight of project activities and 
        expenditures.</DELETED>
        <DELETED>    ```(7) Self-initiated evaluation.--If the entity 
        elects to contract for independent evaluation of the project 
        (part or all of the cost of which may be paid for using grant 
        funds), a commitment to submit to the Secretary a copy of the 
        evaluation report within 30 days after completion of the report 
        and not more than 1 year after completion of the 
        project.</DELETED>
        <DELETED>    ```(8) Cooperation with secretary's oversight and 
        evaluation.--An agreement to cooperate with the Secretary's 
        evaluation of projects assisted under this section, by means 
        including random assignment of clients to service recipient and 
        control groups, if determined by the Secretary to be 
        appropriate, and affording the Secretary access to the project 
        and to project-related records and documents, staff, and 
        clients.</DELETED>
<DELETED>    ```(c) Eligibility Criteria for Limited Purpose Grants.--
In order to be eligible for a grant under this section in an amount 
under $25,000 per fiscal year, an entity shall submit an application to 
the Secretary containing the following:</DELETED>
        <DELETED>    ```(1) Project description.--A description of the 
        project and how it will be carried out, including the number 
        and characteristics of clients to be served, the proposed 
        duration of the project, and how it will address at least 1 of 
        the 4 objectives specified in section 441(b)(1).</DELETED>
        <DELETED>    ```(2) Qualifications.--Such information as the 
        Secretary may require as to the capacity of the entity to carry 
        out the project, including any previous experience with similar 
        activities.</DELETED>
        <DELETED>    ```(3) Coordination with related programs.--As 
        required by the Secretary in appropriate cases, an undertaking 
        to coordinate and cooperate with State and local entities 
        responsible for specific programs relating to the objectives of 
        the project including, as appropriate, jobs programs and 
        programs serving children and families.</DELETED>
        <DELETED>    ```(4) Records, reports, and audits.--An agreement 
        to maintain such records, make such reports, and cooperate with 
        such reviews or audits as the Secretary may find necessary for 
        purposes of oversight of project activities and 
        expenditures.</DELETED>
        <DELETED>    ```(5) Cooperation with secretary's oversight and 
        evaluation.--An agreement to cooperate with the Secretary's 
        evaluation of projects assisted under this section, by means 
        including affording the Secretary access to the project and to 
        project-related records and documents, staff, and 
        clients.</DELETED>
<DELETED>    ```(d) Considerations in Awarding Grants.--</DELETED>
        <DELETED>    ```(1) Diversity of projects.--In awarding grants 
        under this section, the Secretary shall seek to achieve a 
        balance among entities of differing sizes, entities in 
        differing geographic areas, entities in urban and in rural 
        areas, and entities employing differing methods of achieving 
        the purposes of this section, including working with the State 
        agency responsible for the administration of part D to help 
        fathers satisfy child support arrearage obligations.</DELETED>
        <DELETED>    ```(2) Preference for projects serving low-income 
        fathers.--In awarding grants under this section, the Secretary 
        may give preference to applications for projects in which a 
        majority of the clients to be served are low-income 
        fathers.</DELETED>
<DELETED>    ```(e) Federal Share.--</DELETED>
        <DELETED>    ```(1) In general.--Grants for a project under 
        this section for a fiscal year shall be available for a share 
        of the cost of such project in such fiscal year equal to--
        </DELETED>
                <DELETED>    ```(A) up to 80 percent (or up to 90 
                percent, if the entity demonstrates to the Secretary's 
                satisfaction circumstances limiting the entity's 
                ability to secure non-Federal resources) in the case of 
                a project under subsection (b); and</DELETED>
                <DELETED>    ```(B) up to 100 percent, in the case of a 
                project under subsection (c).</DELETED>
        <DELETED>    ```(2) Non-federal share.--The non-Federal share 
        may be in cash or in kind. In determining the amount of the 
        non-Federal share, the Secretary may attribute fair market 
        value to goods, services, and facilities contributed from non-
        Federal sources.</DELETED>

<DELETED>```SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION 
              PROJECTS.</DELETED>

<DELETED>    ```(a) In General.--The Secretary may make grants under 
this section for fiscal years 2004 through 2008 to eligible entities 
(as specified in subsection (b)) for 2 multicity, multistate projects 
demonstrating approaches to achieving the objectives specified in 
section 441(b)(1). One of the projects shall test the use of married 
couples to deliver program services.</DELETED>
<DELETED>    ```(b) Eligible Entities.--An entity eligible for a grant 
under this section must be a national nonprofit fatherhood promotion 
organization that meets the following requirements:</DELETED>
        <DELETED>    ```(1) Experience with fatherhood programs.--The 
        organization must have substantial experience in designing and 
        successfully conducting programs that meet the purposes 
        described in section 441.</DELETED>
        <DELETED>    ```(2) Experience with multicity, multistate 
        programs and government coordination.--The organization must 
        have experience in simultaneously conducting such programs in 
        more than 1 major metropolitan area in more than 1 State and in 
        coordinating such programs, where appropriate, with State and 
        local government agencies and private, nonprofit agencies 
        (including community-based and religious organizations), 
        including State or local agencies responsible for child support 
        enforcement and workforce development.</DELETED>
<DELETED>    ```(c) Application Requirements.--In order to be eligible 
for a grant under this section, an entity must submit to the Secretary 
an application that includes the following:</DELETED>
        <DELETED>    ```(1) Qualifications.--</DELETED>
                <DELETED>    ```(A) Eligible entity.--A demonstration 
                that the entity meets the requirements of subsection 
                (b).</DELETED>
                <DELETED>    ```(B) Other.--Such other information as 
                the Secretary may find necessary to demonstrate the 
                entity's capacity to carry out the project, including 
                the entity's ability to provide the non-Federal share 
                of project resources.</DELETED>
        <DELETED>    ```(2) Project description.--A description of and 
        commitments concerning the project design, including the 
        following:</DELETED>
                <DELETED>    ```(A) In general.--A detailed description 
                of the proposed project design and how it will be 
                carried out, which shall--</DELETED>
                        <DELETED>    ```(i) provide for the project to 
                        be conducted in at least 3 major metropolitan 
                        areas;</DELETED>
                        <DELETED>    ```(ii) state how it will address 
                        each of the 4 objectives specified in section 
                        441(b)(1);</DELETED>
                        <DELETED>    ```(iii) demonstrate that there is 
                        a sufficient number of potential clients to 
                        allow for the random selection of individuals 
                        to participate in the project and for 
                        comparisons with appropriate control groups 
                        composed of individuals who have not 
                        participated in such projects; and</DELETED>
                        <DELETED>    ```(iv) demonstrate that the 
                        project is designed to direct a majority of 
                        project resources to activities serving low-
                        income fathers (but the project need not make 
                        services available on a means-tested 
                        basis).</DELETED>
                <DELETED>    ```(B) Oversight, evaluation, and 
                adjustment component.--An agreement that the entity--
                </DELETED>
                        <DELETED>    ```(i) in consultation with the 
                        evaluator selected pursuant to section 445, and 
                        as required by the Secretary, will modify the 
                        project design, initially and (if necessary) 
                        subsequently throughout the duration of the 
                        project, in order to facilitate ongoing and 
                        final oversight and evaluation of project 
                        operation and outcomes (by means including, to 
                        the maximum extent feasible, random assignment 
                        of clients to service recipient and control 
                        groups), and to provide for mid-course 
                        adjustments in project design indicated by 
                        interim evaluations;</DELETED>
                        <DELETED>    ```(ii) will submit to the 
                        Secretary revised descriptions of the project 
                        design as modified in accordance with clause 
                        (i); and</DELETED>
                        <DELETED>    ```(iii) will cooperate fully with 
                        the Secretary's ongoing oversight and ongoing 
                        and final evaluation of the project, by means 
                        including affording the Secretary access to the 
                        project and to project-related records and 
                        documents, staff, and clients.</DELETED>
        <DELETED>    ```(3) Addressing child abuse and neglect and 
        domestic violence.--A description of how the entity will assess 
        for the presence of, and intervene to resolve, domestic 
        violence and child abuse and neglect, including how the entity 
        will coordinate with State and local child protective service 
        and domestic violence programs.</DELETED>
        <DELETED>    ```(4) Addressing concerns relating to substance 
        abuse and sexual activity.--A commitment to make available to 
        each individual participating in the project education about 
        alcohol, tobacco, and other drugs, and about the health risks 
        associated with abusing such substances, and information about 
        diseases and conditions transmitted through substance abuse and 
        sexual contact, including HIV/AIDS, and to coordinate with 
        providers of services addressing such problems, as 
        appropriate.</DELETED>
        <DELETED>    ```(5) Coordination with specified programs.--An 
        undertaking to coordinate, as appropriate, with State and local 
        entities responsible for the programs funded under parts A, B, 
        and D of this title, programs under title I of the Workforce 
        Investment Act of 1998 (including the One-Stop delivery 
        system), and such other programs as the Secretary may 
        require.</DELETED>
        <DELETED>    ```(6) Records, reports, and audits.--An agreement 
        to maintain such records, make such reports, and cooperate with 
        such reviews or audits (in addition to those required under the 
        preceding provisions of paragraph (2)) as the Secretary may 
        find necessary for purposes of oversight of project activities 
        and expenditures.</DELETED>
<DELETED>    ```(d) Federal Share.--</DELETED>
        <DELETED>    ```(1) In general.--Grants for a project under 
        this section for a fiscal year shall be available for up to 80 
        percent of the cost of such project in such fiscal 
        year.</DELETED>
        <DELETED>    ```(2) Non-federal share.--The non-Federal share 
        may be in cash or in kind. In determining the amount of the 
        non-Federal share, the Secretary may attribute fair market 
        value to goods, services, and facilities contributed from non-
        Federal sources.</DELETED>

<DELETED>```SEC. 445. EVALUATION.</DELETED>

<DELETED>    ```(a) In General.--The Secretary, directly or by contract 
or cooperative agreement, shall evaluate the effectiveness of service 
projects funded under sections 443 and 444 from the standpoint of the 
purposes specified in section 441(b)(1).</DELETED>
<DELETED>    ```(b) Evaluation Methodology.--Evaluations under this 
section shall--</DELETED>
        <DELETED>    ```(1) include, to the maximum extent feasible, 
        random assignment of clients to service delivery and control 
        groups and other appropriate comparisons of groups of 
        individuals receiving and not receiving services;</DELETED>
        <DELETED>    ```(2) describe and measure the effectiveness of 
        the projects in achieving their specific project goals; 
        and</DELETED>
        <DELETED>    ```(3) describe and assess, as appropriate, the 
        impact of such projects on marriage, parenting, domestic 
        violence, child abuse and neglect, money management, employment 
        and earnings, payment of child support, and child well-being, 
        health, and education.</DELETED>
<DELETED>    ```(c) Evaluation Reports.--The Secretary shall publish 
the following reports on the results of the evaluation:</DELETED>
        <DELETED>    ```(1) An implementation evaluation report 
        covering the first 24 months of the activities under this part 
        to be completed by 36 months after initiation of such 
        activities.</DELETED>
        <DELETED>    ```(2) A final report on the evaluation to be 
        completed by September 30, 2011.</DELETED>

<DELETED>```SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.</DELETED>

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

<DELETED>```SEC. 447. NONDISCRIMINATION.</DELETED>

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

<DELETED>```SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RESERVATION FOR 
              CERTAIN PURPOSE.</DELETED>

<DELETED>    ```(a) Authorization.--There are authorized to be 
appropriated $20,000,000 for each of fiscal years 2004 through 2008 to 
carry out the provisions of this part.</DELETED>
<DELETED>    ```(b) Reservation.--Of the amount appropriated under this 
section for each fiscal year, not more than 15 percent shall be 
available for the costs of the multicity, multicounty, multistate 
demonstration projects under section 444, evaluations under section 
445, and projects of national significance under section 
446.'.</DELETED>
<DELETED>    ``(b) Inapplicability of Effective Date Provisions.--
Section 116 shall not apply to the amendment made by subsection (a) of 
this section.''.</DELETED>
        <DELETED>    (2) Clerical amendment.--Section 2 of such Act is 
        amended in the table of contents by inserting after the item 
        relating to section 116 the following new item:</DELETED>

<DELETED>``Sec. 117. Fatherhood program.''.

<DELETED>SEC. 120. STATE OPTION TO MAKE TANF PROGRAMS MANDATORY 
              PARTNERS WITH ONE-STOP EMPLOYMENT TRAINING 
              CENTERS.</DELETED>

<DELETED>    Section 408 of the Social Security Act (42 U.S.C. 608) is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(h) State Option to Make TANF Programs Mandatory 
Partners With One-Stop Employment Training Centers.--For purposes of 
section 121(b) of the Workforce Investment Act of 1998, a State program 
funded under part A of title IV of the Social Security Act shall be 
considered a program referred to in paragraph (1)(B) of such section, 
unless, after the date of the enactment of this subsection, the 
Governor of the State notifies the Secretaries of Health and Human 
Services and Labor in writing of the decision of the Governor not to 
make the State program a mandatory partner.''.</DELETED>

<DELETED>SEC. 121. SENSE OF THE CONGRESS.</DELETED>

<DELETED>    It is the sense of the Congress that a State welfare-to-
work program should include a mentoring program.</DELETED>

<DELETED>SEC. 122. EXTENSION THROUGH FISCAL YEAR 2003.</DELETED>

<DELETED>    Except as otherwise provided in this Act and the 
amendments made by this Act, activities authorized by part A of title 
IV of the Social Security Act, and by section 1108(b) of the Social 
Security Act, shall continue through September 30, 2003, in the manner 
authorized, and at the level provided, for fiscal year 2002.</DELETED>

                <DELETED>TITLE II--CHILD CARE</DELETED>

<DELETED>SEC. 201. SHORT TITLE.</DELETED>

<DELETED>    This title may be cited as the ``Caring for Children Act 
of 2003''.</DELETED>

<DELETED>SEC. 202. GOALS.</DELETED>

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

<DELETED>SEC. 203. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    Section 658B of the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858) is amended--</DELETED>
        <DELETED>    (1) by striking ``is'' and inserting ``are'', 
        and</DELETED>
        <DELETED>    (2) by striking ``$1,000,000,000 for each of the 
        fiscal years 1996 through 2002'' and inserting ``$2,100,000,000 
        for fiscal year 2003, $2,300,000,000 for fiscal year 2004, 
        $2,500,000,000 for fiscal year 2005, $2,700,000,000 for fiscal 
        year 2006, $2,900,000,000 for fiscal year 2007, and 
        $3,100,000,000 for fiscal year 2008''.</DELETED>

<DELETED>SEC. 204. APPLICATION AND PLAN.</DELETED>

<DELETED>    Section 658E(c)(2) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858C(c)(2)) is amended--</DELETED>
        <DELETED>    (1) by amending subparagraph (D) to read as 
        follows:</DELETED>
                <DELETED>    ``(D) Consumer and child care provider 
                education information.--Certify that the State will 
                collect and disseminate, through resource and referral 
                services and other means as determined by the State, to 
                parents of eligible children, child care providers, and 
                the general public, information regarding--</DELETED>
                        <DELETED>    ``(i) the promotion of informed 
                        child care choices, including information about 
                        the quality and availability of child care 
                        services;</DELETED>
                        <DELETED>    ``(ii) research and best practices 
                        on children's development, including early 
                        cognitive development;</DELETED>
                        <DELETED>    ``(iii) the availability of 
                        assistance to obtain child care services; 
                        and</DELETED>
                        <DELETED>    ``(iv) other programs for which 
                        families that receive child care services for 
                        which financial assistance is provided under 
                        this subchapter may be eligible, including the 
                        food stamp program, the WIC program under 
                        section 17 of the Child Nutrition Act of 1966, 
                        the child and adult care food program under 
                        section 17 of the Richard B. Russell National 
                        School Lunch Act, and the medicaid and SCHIP 
                        programs under titles XIX and XXI of the Social 
                        Security Act.'', and</DELETED>
        <DELETED>    (2) by inserting after subparagraph (H) the 
        following:</DELETED>
                <DELETED>    ``(I) Coordination with other early child 
                care services and early childhood education programs.--
                Demonstrate how the State is coordinating child care 
                services provided under this subchapter with Head 
                Start, Early Reading First, Even Start, Ready-To-Learn 
                Television, State pre-kindergarten programs, and other 
                early childhood education programs to expand 
                accessibility to and continuity of care and early 
                education without displacing services provided by the 
                current early care and education delivery 
                system.</DELETED>
                <DELETED>    ``(J) Public-private partnerships.--
                Demonstrate how the State encourages partnerships with 
                private and other public entities to leverage existing 
                service delivery systems of early childhood education 
                and increase the supply and quality of child care 
                services.</DELETED>
                <DELETED>    ``(K) Child care service quality.--
                </DELETED>
                        <DELETED>    ``(i) Certification.--For each 
                        fiscal year after fiscal year 2004, certify 
                        that during the then preceding fiscal year the 
                        State was in compliance with section 658G and 
                        describe how funds were used to comply with 
                        such section during such preceding fiscal 
                        year.</DELETED>
                        <DELETED>    ``(ii) Strategy.--For each fiscal 
                        year after fiscal year 2004, contain an outline 
                        of the strategy the State will implement during 
                        such fiscal year for which the State plan is 
                        submitted, to address the quality of child care 
                        services in the State available to low-income 
                        parents from eligible child care providers, and 
                        include in such strategy--</DELETED>
                                <DELETED>    ``(I) a statement 
                                specifying how the State will address 
                                the activities described in paragraphs 
                                (1), (2), and (3) of section 
                                658G;</DELETED>
                                <DELETED>    ``(II) a description of 
                                quantifiable, objective measures for 
                                evaluating the quality of child care 
                                services separately with respect to the 
                                activities listed in each of such 
                                paragraphs that the State will use to 
                                evaluate its progress in improving the 
                                quality of such child care 
                                services;</DELETED>
                                <DELETED>    ``(III) a list of State-
                                developed child care service quality 
                                targets for such fiscal year quantified 
                                on the basis of such measures; 
                                and</DELETED>
                                <DELETED>    ``(IV) for each fiscal 
                                year after fiscal year 2004, a report 
                                on the progress made to achieve such 
                                targets during the then preceding 
                                fiscal year.</DELETED>
                        <DELETED>    ``(iii) Rule of construction.--
                        Nothing in this subparagraph shall be construed 
                        to require that the State apply measures for 
                        evaluating quality to specific types of child 
                        care providers.</DELETED>
                <DELETED>    ``(L) Access to care for certain 
                populations.--Demonstrate how the State is addressing 
                the child care needs of parents eligible for child care 
                services for which financial assistance is provided 
                under this subchapter who have children with special 
                needs, work nontraditional hours, or require child care 
                services for infants or toddlers.''.</DELETED>

<DELETED>SEC. 205. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD 
              CARE.</DELETED>

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

<DELETED>``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE 
              SERVICES.</DELETED>

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

<DELETED>SEC. 206. REPORT BY SECRETARY.</DELETED>

<DELETED>    Section 658L of the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858j) is amended to read as follows:</DELETED>

<DELETED>``SEC. 658L. REPORT BY SECRETARY.</DELETED>

<DELETED>    ``(a) Report Required.--Not later than October 1, 2005, 
and biennially thereafter, the Secretary shall prepare and submit to 
the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor and 
Pensions of the Senate a report that contains the following:</DELETED>
        <DELETED>    ``(1) A summary and analysis of the data and 
        information provided to the Secretary in the State reports 
        submitted under section 658K.</DELETED>
        <DELETED>    ``(2) Aggregated statistics on the supply of, 
        demand for, and quality of child care, early education, and 
        non-school-hours programs.</DELETED>
        <DELETED>    ``(3) An assessment, and where appropriate, 
        recommendations for the Congress concerning efforts that should 
        be undertaken to improve the access of the public to quality 
        and affordable child care in the United States.</DELETED>
<DELETED>    ``(b) Collection of Information.--The Secretary may 
utilize the national child care data system available through resource 
and referral organizations at the local, State, and national level to 
collect the information required by subsection (a)(2).</DELETED>

<DELETED>SEC. 207. DEFINITIONS.</DELETED>

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

<DELETED>SEC. 208. ENTITLEMENT FUNDING.</DELETED>

<DELETED>    Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amended--
</DELETED>
        <DELETED>    (1) by striking ``and'' at the end of subparagraph 
        (E);</DELETED>
        <DELETED>    (2) by striking the period at the end of 
        subparagraph (F) and inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
                <DELETED>    ``(G) $2,917,000,000 for each of fiscal 
                years 2004 through 2008.''.</DELETED>

              <DELETED>TITLE III--CHILD SUPPORT</DELETED>

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

<DELETED>    (a) In General.--Section 457(a) (42 U.S.C. 657(a)) is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1)(A), by inserting ``subject to 
        paragraph (7)'' before the semicolon; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(7) Federal matching funds for limited pass 
        through of child support payments to families receiving tanf.--
        Notwithstanding paragraph (1), a State shall not be required to 
        pay to the Federal Government the Federal share of an amount 
        collected during a month on behalf of a family that is a 
        recipient of assistance under the State program funded under 
        part A, to the extent that--</DELETED>
                <DELETED>    ``(A) the State distributes the amount to 
                the family;</DELETED>
                <DELETED>    ``(B) the total of the amounts so 
                distributed to the family during the month--</DELETED>
                        <DELETED>    ``(i) exceeds the amount (if any) 
                        that, as of December 31, 2001, was required 
                        under State law to be distributed to a family 
                        under paragraph (1)(B); and</DELETED>
                        <DELETED>    ``(ii) does not exceed the greater 
                        of--</DELETED>
                                <DELETED>    ``(I) $100; or</DELETED>
                                <DELETED>    ``(II) $50 plus the amount 
                                described in clause (i); and</DELETED>
                <DELETED>    ``(C) the amount is disregarded in 
                determining the amount and type of assistance provided 
                to the family under the State program funded under part 
                A.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendments made by subsection (a) 
shall apply to amounts distributed on or after October 1, 
2005.</DELETED>

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

<DELETED>    (a) In General.--Section 457(a) (42 U.S.C. 657(a)), as 
amended by section 301(a) of this Act, is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)(B), in the matter preceding 
        clause (i), by inserting ``, except as provided in paragraph 
        (8),'' after ``shall''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(8) State option to pass through all child 
        support payments to families that formerly received tanf.--In 
        lieu of applying paragraph (2) to any family described in 
        paragraph (2), a State may distribute to the family any amount 
        collected during a month on behalf of the family.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendments made by subsection (a) 
shall apply to amounts distributed on or after October 1, 
2005.</DELETED>

<DELETED>SEC. 303. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT 
              ORDERS FOR FAMILIES RECEIVING TANF.</DELETED>

<DELETED>    (a) In General.--Section 466(a)(10)(A)(i) (42 U.S.C. 
666(a)(10)(A)(i)) is amended--</DELETED>
        <DELETED>    (1) by striking ``parent, or,'' and inserting 
        ``parent or''; and</DELETED>
        <DELETED>    (2) by striking ``upon the request of the State 
        agency under the State plan or of either parent,''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on October 1, 2005.</DELETED>

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

<DELETED>    (a) In General.--Section 454(6)(B) (42 U.S.C. 654(6)(B)) 
is amended--</DELETED>
        <DELETED>    (1) by inserting ``(i)'' after ``(B)'';</DELETED>
        <DELETED>    (2) by redesignating clauses (i) and (ii) as 
        subclauses (I) and (II), respectively;</DELETED>
        <DELETED>    (3) by adding ``and'' after the semicolon; 
        and</DELETED>
        <DELETED>    (4) by adding after and below the end the 
        following new clause:</DELETED>
                <DELETED>    ``(ii) in the case of an individual who 
                has never received assistance under a State program 
                funded under part A and for whom the State has 
                collected at least $500 of support, the State shall 
                impose an annual fee of $25 for each case in which 
                services are furnished, which shall be retained by the 
                State from support collected on behalf of the 
                individual (but not from the 1st $500 so collected), 
                paid by the individual applying for the services, 
                recovered from the absent parent, or paid by the State 
                out of its own funds (the payment of which from State 
                funds shall not be considered as an administrative cost 
                of the State for the operation of the plan, and such 
                fees shall be considered income to the 
                program);''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 457(a)(3) (42 U.S.C. 
657(a)(3)) is amended to read as follows:</DELETED>
        <DELETED>    ``(3) Families that never received assistance.--In 
        the case of any other family, the State shall distribute to the 
        family the portion of the amount so collected that remains 
        after withholding any fee pursuant to section 
        454(6)(B)(ii).''.</DELETED>
<DELETED>    (c) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2004.</DELETED>

<DELETED>SEC. 305. REPORT ON UNDISTRIBUTED CHILD SUPPORT 
              PAYMENTS.</DELETED>

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

<DELETED>SEC. 306. USE OF NEW HIRE INFORMATION TO ASSIST IN 
              ADMINISTRATION OF UNEMPLOYMENT COMPENSATION 
              PROGRAMS.</DELETED>

<DELETED>    (a) In General.--Section 453(j) (42 U.S.C. 653(j)) is 
amended by adding at the end the following:</DELETED>
        <DELETED>    ``(7) Information comparisons and disclosure to 
        assist in administration of unemployment compensation 
        programs.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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).''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on October 1, 2004.</DELETED>

<DELETED>SEC. 307. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE 
              TRIGGERING PASSPORT DENIAL.</DELETED>

<DELETED>    (a) In General.--Section 452(k)(1) (42 U.S.C. 652(k)(1)) 
is amended by striking ``$5,000'' and inserting ``$2,500''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 454(31) (42 U.S.C. 
654(31)) is amended by striking ``$5,000'' and inserting 
``$2,500''.</DELETED>
<DELETED>    (c) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2004.</DELETED>

<DELETED>SEC. 308. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-
              DUE CHILD SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT 
              MINORS.</DELETED>

<DELETED>    (a) In General.--Section 464 (42 U.S.C. 664) is amended--
</DELETED>
        <DELETED>    (1) in subsection (a)(2)(A), by striking ``(as 
        that term is defined for purposes of this paragraph under 
        subsection (c))''; and</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (1)--</DELETED>
                        <DELETED>    (i) by striking ``(1) Except as 
                        provided in paragraph (2), as used in'' and 
                        inserting ``In''; and</DELETED>
                        <DELETED>    (ii) by inserting ``(whether or 
                        not a minor)'' after ``a child'' each place it 
                        appears; and</DELETED>
                <DELETED>    (B) by striking paragraphs (2) and 
                (3).</DELETED>
<DELETED>    (b) Effective Date.--The amendments made by subsection (a) 
shall take effect on October 1, 2005.</DELETED>

<DELETED>SEC. 309. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR 
              SERVICE-CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD 
              SUPPORT OBLIGATIONS.</DELETED>

<DELETED>    (a) In General.--Section 459(h) (42 U.S.C. 659(h)) is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1)(A)(ii)(V), by striking all 
        that follows ``Armed Forces'' and inserting a semicolon; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(3) Limitations with respect to compensation 
        paid to veterans for service-connected disabilities.--
        Notwithstanding any other provision of this section:</DELETED>
                <DELETED>    ``(A) Compensation described in paragraph 
                (1)(A)(ii)(V) shall not be subject to withholding 
                pursuant to this section--</DELETED>
                        <DELETED>    ``(i) for payment of alimony; 
                        or</DELETED>
                        <DELETED>    ``(ii) for payment of child 
                        support if the individual is fewer than 60 days 
                        in arrears in payment of the support.</DELETED>
                <DELETED>    ``(B) Not more than 50 percent of any 
                payment of compensation described in paragraph 
                (1)(A)(ii)(V) may be withheld pursuant to this 
                section.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendments made by subsection (a) 
shall take effect on October 1, 2005.</DELETED>

<DELETED>SEC. 310. IMPROVING FEDERAL DEBT COLLECTION 
              PRACTICES.</DELETED>

<DELETED>    (a) In General.--Section 3716(h)(3) of title 31, United 
States Code, is amended to read as follows:</DELETED>
<DELETED>    ``(3) In applying this subsection with respect to any debt 
owed to a State, other than past due support being enforced by the 
State, subsection (c)(3)(A) shall not apply. Subsection (c)(3)(A) shall 
apply with respect to past due support being enforced by the State 
notwithstanding any other provision of law, including sections 207 and 
1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 1383(d)(1)), 
section 413(b) of Public law 91-173 (30 U.S.C. 923(b)), and section 14 
of the Act of August 29, 1935 (45 U.S.C. 231m).''.</DELETED>
<DELETED>    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on October 1, 2004.</DELETED>

<DELETED>SEC. 311. MAINTENANCE OF TECHNICAL ASSISTANCE 
              FUNDING.</DELETED>

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

<DELETED>SEC. 312. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE 
              FUNDING.</DELETED>

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

               <DELETED>TITLE IV--CHILD WELFARE</DELETED>

<DELETED>SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEMONSTRATION 
              PROJECTS.</DELETED>

<DELETED>    Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by 
striking ``2002'' and inserting ``2008''.</DELETED>

<DELETED>SEC. 402. ELIMINATION OF LIMITATION ON NUMBER OF 
              WAIVERS.</DELETED>

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

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

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

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

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

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

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

<DELETED>SEC. 406. AVAILABILITY OF REPORTS.</DELETED>

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

<DELETED>SEC. 407. TECHNICAL CORRECTION.</DELETED>

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

        <DELETED>TITLE V--SUPPLEMENTAL SECURITY INCOME</DELETED>

<DELETED>SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY 
              DETERMINATIONS.</DELETED>

<DELETED>    Section 1633 (42 U.S.C. 1383b) is amended by adding at the 
end the following:</DELETED>
<DELETED>    ``(e)(1) The Commissioner of Social Security shall review 
determinations, made by State agencies pursuant to subsection (a) in 
connection with applications for benefits under this title on the basis 
of blindness or disability, that individuals who have attained 18 years 
of age are blind or disabled as of a specified onset date. The 
Commissioner of Social Security shall review such a determination 
before any action is taken to implement the determination.</DELETED>
<DELETED>    ``(2)(A) In carrying out paragraph (1), the Commissioner 
of Social Security shall review--</DELETED>
        <DELETED>    ``(i) at least 20 percent of all determinations 
        referred to in paragraph (1) that are made in fiscal year 
        2004;</DELETED>
        <DELETED>    ``(ii) at least 40 percent of all such 
        determinations that are made in fiscal year 2005; and</DELETED>
        <DELETED>    ``(iii) at least 50 percent of all such 
        determinations that are made in fiscal year 2006 or 
        thereafter.</DELETED>
<DELETED>    ``(B) In carrying out subparagraph (A), the Commissioner 
of Social Security shall, to the extent feasible, select for review the 
determinations which the Commissioner of Social Security identifies as 
being the most likely to be incorrect.''.</DELETED>

        <DELETED>TITLE VI--STATE AND LOCAL FLEXIBILITY</DELETED>

<DELETED>SEC. 601. PROGRAM COORDINATION DEMONSTRATION 
              PROJECTS.</DELETED>

<DELETED>    (a) Purpose.--The purpose of this section is to establish 
a program of demonstration projects in a State or portion of a State to 
coordinate multiple public assistance, workforce development, and other 
programs, for the purpose of supporting working individuals and 
families, helping families escape welfare dependency, promoting child 
well-being, or helping build stronger families, using innovative 
approaches to strengthen service systems and provide more coordinated 
and effective service delivery.</DELETED>
<DELETED>    (b) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Administering secretary.--The term 
        ``administering Secretary'' means, with respect to a qualified 
        program, the head of the Federal agency responsible for 
        administering the program.</DELETED>
        <DELETED>    (2) Qualified program.--The term ``qualified 
        program'' means--</DELETED>
                <DELETED>    (A) a program under part A of title IV of 
                the Social Security Act;</DELETED>
                <DELETED>    (B) the program under title XX of such 
                Act;</DELETED>
                <DELETED>    (C) activities funded under title I of the 
                Workforce Investment Act of 1998, except subtitle C of 
                such title;</DELETED>
                <DELETED>    (D) a demonstration project authorized 
                under section 505 of the Family Support Act of 
                1988;</DELETED>
                <DELETED>    (E) activities funded under the Wagner-
                Peyser Act;</DELETED>
                <DELETED>    (F) activities funded under the Adult 
                Education and Family Literacy Act;</DELETED>
                <DELETED>    (G) activities funded under the Child Care 
                and Development Block Grant Act of 1990;</DELETED>
                <DELETED>    (H) activities funded under the United 
                States Housing Act of 1937 (42 U.S.C. 1437 et seq.), 
                except that such term shall not include--</DELETED>
                        <DELETED>    (i) any program for rental 
                        assistance under section 8 of such Act (42 
                        U.S.C. 1437f); and</DELETED>
                        <DELETED>    (ii) the program under section 7 
                        of such Act (42 U.S.C. 1437e) for designating 
                        public housing for occupancy by certain 
                        populations;</DELETED>
                <DELETED>    (I) activities funded under title I, II, 
                III, or IV of the McKinney-Vento Homeless Assistance 
                Act (42 U.S.C. 11301 et seq.); or</DELETED>
                <DELETED>    (J) the food stamp program as defined in 
                section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 
                2012(h)).</DELETED>
<DELETED>    (c) Application Requirements.--The head of a State entity 
or of a sub-State entity administering 2 or more qualified programs 
proposed to be included in a demonstration project under this section 
shall (or, if the project is proposed to include qualified programs 
administered by 2 or more such entities, the heads of the administering 
entities (each of whom shall be considered an applicant for purposes of 
this section) shall jointly) submit to the administering Secretary of 
each such program an application that contains the following:</DELETED>
        <DELETED>    (1) Programs included.--A statement identifying 
        each qualified program to be included in the project, and 
        describing how the purposes of each such program will be 
        achieved by the project.</DELETED>
        <DELETED>    (2) Population served.--A statement identifying 
        the population to be served by the project and specifying the 
        eligibility criteria to be used.</DELETED>
        <DELETED>    (3) Description and justification.--A detailed 
        description of the project, including--</DELETED>
                <DELETED>    (A) a description of how the project is 
                expected to improve or enhance achievement of the 
                purposes of the programs to be included in the project, 
                from the standpoint of quality, of cost-effectiveness, 
                or of both; and</DELETED>
                <DELETED>    (B) a description of the performance 
                objectives for the project, including any proposed 
                modifications to the performance measures and reporting 
                requirements used in the programs.</DELETED>
        <DELETED>    (4) Waivers requested.--A description of the 
        statutory and regulatory requirements with respect to which a 
        waiver is requested in order to carry out the project, and a 
        justification of the need for each such waiver.</DELETED>
        <DELETED>    (5) Cost neutrality.--Such information and 
        assurances as necessary to establish to the satisfaction of the 
        administering Secretary, in consultation with the Director of 
        the Office of Management and Budget, that the proposed project 
is reasonably expected to meet the applicable cost neutrality 
requirements of subsection (d)(4).</DELETED>
        <DELETED>    (6) Evaluation and reports.--An assurance that the 
        applicant will conduct ongoing and final evaluations of the 
        project, and make interim and final reports to the 
        administering Secretary, at such times and in such manner as 
        the administering Secretary may require.</DELETED>
        <DELETED>    (7) Public housing agency plan.--In the case of an 
        application proposing a demonstration project that includes 
        activities referred to in subsection (b)(2)(H) of this 
        section--</DELETED>
                <DELETED>    (A) a certification that the applicable 
                annual public housing agency plan of any agency 
                affected by the project that is approved under section 
                5A of the United States Housing Act of 1937 (42 U.S.C. 
                1437c-1) by the Secretary includes the information 
                specified in paragraphs (1) through (4) of this 
                subsection; and</DELETED>
                <DELETED>    (B) any resident advisory board 
                recommendations, and other information, relating to the 
                project that, pursuant to section 5A(e)(2) of the 
                United States Housing Act of 1937 (42 U.S.C. 1437c-
                1(e)(2), is required to be included in the public 
                housing agency plan of any public housing agency 
                affected by the project.</DELETED>
        <DELETED>    (8) Other information and assurances.--Such other 
        information and assurances as the administering Secretary may 
        require.</DELETED>
<DELETED>    (d) Approval of Applications.--</DELETED>
        <DELETED>    (1) In general.--The administering Secretary with 
        respect to a qualified program that is identified in an 
        application submitted pursuant to subsection (c) may approve 
        the application and, except as provided in paragraph (2), waive 
        any requirement applicable to the program, to the extent 
        consistent with this section and necessary and appropriate for 
        the conduct of the demonstration project proposed in the 
        application, if the administering Secretary determines that the 
        project--</DELETED>
                <DELETED>    (A) has a reasonable likelihood of 
                achieving the objectives of the programs to be included 
                in the project;</DELETED>
                <DELETED>    (B) may reasonably be expected to meet the 
                applicable cost neutrality requirements of paragraph 
                (4), as determined by the Director of the Office of 
                Management and Budget; and</DELETED>
                <DELETED>    (C) includes the coordination of 2 or more 
                qualified programs.</DELETED>
        <DELETED>    (2) Provisions excluded from waiver authority.--A 
        waiver shall not be granted under paragraph (1)--</DELETED>
                <DELETED>    (A) with respect to any provision of law 
                relating to--</DELETED>
                        <DELETED>    (i) civil rights or prohibition of 
                        discrimination;</DELETED>
                        <DELETED>    (ii) purposes or goals of any 
                        program;</DELETED>
                        <DELETED>    (iii) maintenance of effort 
                        requirements;</DELETED>
                        <DELETED>    (iv) health or safety;</DELETED>
                        <DELETED>    (v) labor standards under the Fair 
                        Labor Standards Act of 1938; or</DELETED>
                        <DELETED>    (vi) environmental 
                        protection;</DELETED>
                <DELETED>    (B) with respect to section 241(a) of the 
                Adult Education and Family Literacy Act;</DELETED>
                <DELETED>    (C) in the case of a program under the 
                United States Housing Act of 1937 (42 U.S.C. 1437 et 
                seq.), with respect to any requirement under section 5A 
                of such Act (42 U.S.C. 1437c-1; relating to public 
                housing agency plans and resident advisory 
                boards);</DELETED>
                <DELETED>    (D) in the case of a program under the 
                Workforce Investment Act, with respect to any 
                requirement the waiver of which would violate section 
                189(i)(4)(A)(i) of such Act;</DELETED>
                <DELETED>    (E) in the case of the food stamp program 
                (as defined in section 3(h) of the Food Stamp Act of 
                1977 (7 U.S.C. 2012(h)), with respect to any 
                requirement under--</DELETED>
                        <DELETED>    (i) section 6 (if waiving a 
                        requirement under such section would have the 
                        effect of expanding eligibility for the 
                        program), 7(b) or 16(c) of the Food Stamp Act 
                        of 1977 (7 U.S.C. 2011 et seq.); or</DELETED>
                        <DELETED>    (ii) title IV of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996 (8 U.S.C. 1601 et 
                        seq.);</DELETED>
                <DELETED>    (F) with respect to any requirement that a 
                State pass through to a sub-State entity part or all of 
                an amount paid to the State;</DELETED>
                <DELETED>    (G) if the waiver would waive any funding 
                restriction or limitation provided in an appropriations 
                Act, or would have the effect of transferring 
                appropriated funds from 1 appropriations account to 
                another; or</DELETED>
                <DELETED>    (H) except as otherwise provided by 
                statute, if the waiver would waive any funding 
                restriction applicable to a program authorized under an 
                Act which is not an appropriations Act (but not 
                including program requirements such as application 
                procedures, performance standards, reporting 
                requirements, or eligibility standards), or would have 
                the effect of transferring funds from a program for 
                which there is direct spending (as defined in section 
                250(c)(8) of the Balanced Budget and Emergency Deficit 
                Control Act of 1985) to another program.</DELETED>
        <DELETED>    (3) Agreement of each administering secretary 
        required.--</DELETED>
                <DELETED>    (A) In general.--An applicant may not 
                conduct a demonstration project under this section 
                unless each administering Secretary with respect to any 
                program proposed to be included in the project has 
                approved the application to conduct the 
                project.</DELETED>
                <DELETED>    (B) Agreement with respect to funding and 
                implementation.--Before approving an application to 
                conduct a demonstration project under this section, an 
                administering Secretary shall have in place an 
                agreement with the applicant with respect to the 
                payment of funds and responsibilities required of the 
                administering Secretary with respect to the 
                project.</DELETED>
        <DELETED>    (4) Cost-neutrality requirement.--</DELETED>
                <DELETED>    (A) General rule.--Notwithstanding any 
                other provision of law (except subparagraph (B)), the 
                total of the amounts that may be paid by the Federal 
                Government for a fiscal year with respect to the 
                programs in the State in which an entity conducting a 
                demonstration project under this section is located 
                that are affected by the project shall not exceed the 
                estimated total amount that the Federal Government 
                would have paid for the fiscal year with respect to the 
                programs if the project had not been conducted, as 
                determined by the Director of the Office of Management 
                and Budget.</DELETED>
                <DELETED>    (B) Special rule.--If an applicant submits 
                to the Director of the Office of Management and Budget 
                a request to apply the rules of this subparagraph to 
                the programs in the State in which the applicant is 
                located that are affected by a demonstration project 
                proposed in an application submitted by the applicant 
                pursuant to this section, during such period of not 
                more than 5 consecutive fiscal years in which the 
                project is in effect, and the Director determines, on 
                the basis of supporting information provided by the 
                applicant, to grant the request, then, notwithstanding 
                any other provision of law, the total of the amounts 
                that may be paid by the Federal Government for the 
                period with respect to the programs shall not exceed 
                the estimated total amount that the Federal Government 
                would have paid for the period with respect to the 
                programs if the project had not been 
                conducted.</DELETED>
        <DELETED>    (5) 90-day approval deadline.--</DELETED>
                <DELETED>    (A) In general.--If an administering 
                Secretary receives an application to conduct a 
                demonstration project under this section and does not 
                disapprove the application within 90 days after the 
                receipt, then--</DELETED>
                        <DELETED>    (i) the administering Secretary is 
                        deemed to have approved the application for 
                        such period as is requested in the application, 
                        except to the extent inconsistent with 
                        subsection (e); and</DELETED>
                        <DELETED>    (ii) any waiver requested in the 
                        application which applies to a qualified 
                        program that is identified in the application 
                        and is administered by the administering 
                        Secretary is deemed to be granted, except to 
                        the extent inconsistent with paragraph (2) or 
                        (4) of this subsection.</DELETED>
                <DELETED>    (B) Deadline extended if additional 
                information is sought.--The 90-day period referred to 
                in subparagraph (A) shall not include any period that 
                begins with the date the Secretary requests the 
                applicant to provide additional information with 
                respect to the application and ends with the date the 
                additional information is provided.</DELETED>
<DELETED>    (e) Duration of Projects.--A demonstration project under 
this section may be approved for a term of not more than 5 
years.</DELETED>
<DELETED>    (f) Reports to Congress.--</DELETED>
        <DELETED>    (1) Report on disposition of applications.--Within 
        90 days after an administering Secretary receives an 
        application submitted pursuant to this section, the 
        administering Secretary shall submit to each Committee of the 
        Congress which has jurisdiction over a qualified program 
        identified in the application notice of the receipt, a 
description of the decision of the administering Secretary with respect 
to the application, and the reasons for approving or disapproving the 
application.</DELETED>
        <DELETED>    (2) Reports on projects.--Each administering 
        Secretary shall provide annually to the Congress a report 
        concerning demonstration projects approved under this section, 
        including--</DELETED>
                <DELETED>    (A) the projects approved for each 
                applicant;</DELETED>
                <DELETED>    (B) the number of waivers granted under 
                this section, and the specific statutory provisions 
                waived;</DELETED>
                <DELETED>    (C) how well each project for which a 
                waiver is granted is improving or enhancing program 
                achievement from the standpoint of quality, cost-
                effectiveness, or both;</DELETED>
                <DELETED>    (D) how well each project for which a 
                waiver is granted is meeting the performance objectives 
                specified in subsection (c)(3)(B);</DELETED>
                <DELETED>    (E) how each project for which a waiver is 
                granted is conforming with the cost-neutrality 
                requirements of subsection (d)(4); and</DELETED>
                <DELETED>    (F) to the extent the administering 
                Secretary deems appropriate, recommendations for 
                modification of programs based on outcomes of the 
                projects.</DELETED>
<DELETED>    (g) Amendment to United States Housing Act of 1937.--
Section 5A(d) of the United States Housing Act of 1937 (42 U.S.C. 
1437c-1(d)) is amended--</DELETED>
        <DELETED>    (1) by redesignating paragraph (18) as paragraph 
        (19); and</DELETED>
        <DELETED>    (2) by inserting after paragraph (17) the 
        following new paragraph:</DELETED>
        <DELETED>    ``(18) Program coordination demonstration 
        projects.--In the case of an agency that administers an 
        activity referred to in section 701(b)(2)(H) of the Personal 
        Responsibility, Work, and Family Promotion Act of 2003 that, 
        during such fiscal year, will be included in a demonstration 
        project under section 701 of such Act, the information that is 
        required to be included in the application for the project 
        pursuant to paragraphs (1) through (4) of section 701(b) of 
        such Act.''.</DELETED>

<DELETED>SEC. 602. STATE FOOD ASSISTANCE BLOCK GRANT DEMONSTRATION 
              PROJECT.</DELETED>

<DELETED>    The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is 
amended by adding at the end the following:</DELETED>

<DELETED>``SEC. 28. STATE FOOD ASSISTANCE BLOCK GRANT DEMONSTRATION 
              PROJECT.</DELETED>

<DELETED>    ``(a) Establishment.--The Secretary shall establish a 
program to make grants to States in accordance with this section to 
provide--</DELETED>
        <DELETED>    ``(1) food assistance to needy individuals and 
        families residing in the State;</DELETED>
        <DELETED>    ``(2) funds to operate an employment and training 
        program under subsection (g) for needy individuals under the 
        program; and</DELETED>
        <DELETED>    ``(3) funds for administrative costs incurred in 
        providing the assistance.</DELETED>
<DELETED>    ``(b) Election.--</DELETED>
        <DELETED>    ``(1) In general.--A State may elect to 
        participate in the program established under subsection 
        (a).</DELETED>
        <DELETED>    ``(2) Election revocable.--A State that elects to 
        participate in the program established under subsection (a) may 
        subsequently reverse the election of the State only once 
        thereafter. Following the reversal, the State shall only be 
        eligible to participate in the food stamp program in accordance 
        with the other sections of this Act and shall not receive a 
        block grant under this section.</DELETED>
        <DELETED>    ``(3) Program exclusive.--A State that is 
        participating in the program established under subsection (a) 
        shall not be subject to, or receive any benefit under, this Act 
        except as provided in this section.</DELETED>
<DELETED>    ``(c) Lead Agency.--</DELETED>
        <DELETED>    ``(1) Designation.--A State desiring to 
        participate in the program established under subsection (a) 
        shall designate, in an application submitted to the Secretary 
        under subsection (d)(1), an appropriate State agency that 
        complies with paragraph (2) to act as the lead agency for the 
        State.</DELETED>
        <DELETED>    ``(2) Duties.--The lead agency shall--</DELETED>
                <DELETED>    ``(A) administer, either directly, through 
                other State agencies, or through local agencies, the 
                assistance received under this section by the 
                State;</DELETED>
                <DELETED>    ``(B) develop the State plan to be 
                submitted to the Secretary under subsection (d)(1); 
                and</DELETED>
                <DELETED>    ``(C) coordinate the provision of food 
                assistance under this section with other Federal, 
                State, and local programs.</DELETED>
<DELETED>    ``(d) Application and Plan.--</DELETED>
        <DELETED>    ``(1) Application.--To be eligible to receive 
        assistance under this section, a State shall prepare and submit 
        to the Secretary an application at such time, in such manner, 
and containing such information as the Secretary shall by regulation 
require, including--</DELETED>
                <DELETED>    ``(A) an assurance that the State will 
                comply with the requirements of this section;</DELETED>
                <DELETED>    ``(B) a State plan that meets the 
                requirements of paragraph (2); and</DELETED>
                <DELETED>    ``(C) an assurance that the State will 
                comply with the requirements of the State plan under 
                paragraph (2).</DELETED>
        <DELETED>    ``(2) Requirements of plan.--</DELETED>
                <DELETED>    ``(A) Lead agency.--The State plan shall 
                identify the lead agency.</DELETED>
                <DELETED>    ``(B) Use of block grant funds.--The State 
                plan shall provide that the State shall use the amounts 
                provided to the State for each fiscal year under this 
                section--</DELETED>
                        <DELETED>    ``(i) to provide food assistance 
                        to needy individuals and families residing in 
                        the State, other than residents of institutions 
                        who are ineligible for food stamps under 
                        section 3(i);</DELETED>
                        <DELETED>    ``(ii) to administer an employment 
                        and training program under subsection (g) for 
                        needy individuals under the program and to 
                        provide reimbursements to needy individuals and 
                        families as would be allowed under section 
                        16(h)(3); and</DELETED>
                        <DELETED>    ``(iii) to pay administrative 
                        costs incurred in providing the 
                        assistance.</DELETED>
                <DELETED>    ``(C) Assistance for entire state.--The 
                State plan shall provide that benefits under this 
                section shall be available throughout the entire 
                State.</DELETED>
                <DELETED>    ``(D) Notice and hearings.--The State plan 
                shall provide that an individual or family who applies 
                for, or receives, assistance under this section shall 
                be provided with notice of, and an opportunity for a 
                hearing on, any action under this section that 
                adversely affects the individual or family.</DELETED>
                <DELETED>    ``(E) Other assistance.--</DELETED>
                        <DELETED>    ``(i) Coordination.--The State 
                        plan may coordinate assistance received under 
                        this section with assistance provided under the 
                        State program funded under part A of title IV 
                        of the Social Security Act (42 U.S.C. 601 et 
                        seq.).</DELETED>
                        <DELETED>    ``(ii) Penalties.--If an 
                        individual or family is penalized for violating 
                        part A of title IV of the Act, the State plan 
                        may reduce the amount of assistance provided 
                        under this section or otherwise penalize the 
                        individual or family.</DELETED>
                <DELETED>    ``(F) Eligibility limitations.--The State 
                plan shall describe the income and resource eligibility 
                limitations that are established for the receipt of 
                assistance under this section.</DELETED>
                <DELETED>    ``(G) Receiving benefits in more than 1 
                jurisdiction.--The State plan shall establish a system 
                to verify and otherwise ensure that no individual or 
                family shall receive benefits under this section in 
                more than 1 jurisdiction within the State.</DELETED>
                <DELETED>    ``(H) Privacy.--The State plan shall 
                provide for safeguarding and restricting the use and 
                disclosure of information about any individual or 
                family receiving assistance under this 
                section.</DELETED>
                <DELETED>    ``(I) Other information.--The State plan 
                shall contain such other information as may be required 
                by the Secretary.</DELETED>
        <DELETED>    ``(3) Approval of application and plan.--During 
        fiscal years 2004 through 2008, the Secretary may approve the 
        applications and State plans that satisfy the requirements of 
        this section of not more than 5 States for a term of not more 
        than 5 years.</DELETED>
<DELETED>    ``(e) Construction of Facilities.--No funds made available 
under this section shall be expended for the purchase or improvement of 
land, or for the purchase, construction, or permanent improvement of 
any building or facility.</DELETED>
<DELETED>    ``(f) Benefits for Aliens.--No individual shall be 
eligible to receive benefits under a State plan approved under 
subsection (d)(3) if the individual is not eligible to participate in 
the food stamp program under title IV of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1601 et 
seq.).</DELETED>
<DELETED>    ``(g) Employment and Training.--Each State shall implement 
an employment and training program for needy individuals under the 
program.</DELETED>
<DELETED>    ``(h) Enforcement.--</DELETED>
        <DELETED>    ``(1) Review of compliance with state plan.--The 
        Secretary shall review and monitor State compliance with this 
        section and the State plan approved under subsection 
        (d)(3).</DELETED>
        <DELETED>    ``(2) Noncompliance.--</DELETED>
                <DELETED>    ``(A) In general.--If the Secretary, after 
                reasonable notice to a State and opportunity for a 
                hearing, finds that--</DELETED>
                        <DELETED>    ``(i) there has been a failure by 
                        the State to comply substantially with any 
                        provision or requirement set forth in the State 
                        plan approved under subsection (d)(3); 
                        or</DELETED>
                        <DELETED>    ``(ii) in the operation of any 
                        program or activity for which assistance is 
                        provided under this section, there is a failure 
                        by the State to comply substantially with any 
                        provision of this section, the Secretary shall 
                        notify the State of the finding and that no 
                        further payments will be made to the State 
                        under this section (or, in the case of 
                        noncompliance in the operation of a program or 
                        activity, that no further payments to the State 
                        will be made with respect to the program or 
                        activity) until the Secretary is satisfied that 
                        there is no longer any failure to comply or 
                        that the noncompliance will be promptly 
                        corrected.</DELETED>
                <DELETED>    ``(B) Other sanctions.--In the case of a 
                finding of noncompliance made pursuant to subparagraph 
                (A), the Secretary may, in addition to, or in lieu of, 
                imposing the sanctions described in subparagraph (A), 
                impose other appropriate sanctions, including 
                recoupment of money improperly expended for purposes 
                prohibited or not authorized by this section and 
                disqualification from the receipt of financial 
                assistance under this section.</DELETED>
                <DELETED>    ``(C) Notice.--The notice required under 
                subparagraph (A) shall include a specific 
                identification of any additional sanction being imposed 
                under subparagraph (B).</DELETED>
        <DELETED>    ``(3) Issuance of regulations.--The Secretary 
        shall establish by regulation procedures for--</DELETED>
                <DELETED>    ``(A) receiving, processing, and 
                determining the validity of complaints concerning any 
                failure of a State to comply with the State plan or any 
                requirement of this section; and</DELETED>
                <DELETED>    ``(B) imposing sanctions under this 
                section.</DELETED>
<DELETED>    ``(i) Payments.--</DELETED>
        <DELETED>    ``(1) In general.--For each fiscal year, the 
        Secretary shall pay to a State that has an application approved 
        by the Secretary under subsection (d)(3) an amount that is 
        equal to the allotment of the State under subsection (l)(2) for 
        the fiscal year.</DELETED>
        <DELETED>    ``(2) Method of payment.--The Secretary shall make 
        payments to a State for a fiscal year under this section by 
        issuing 1 or more letters of credit for the fiscal year, with 
        necessary adjustments on account of overpayments or 
        underpayments, as determined by the Secretary.</DELETED>
        <DELETED>    ``(3) Spending of funds by state.--</DELETED>
                <DELETED>    ``(A) In general.--Except as provided in 
                subparagraph (B), payments to a State from an allotment 
                under subsection (l)(2) for a fiscal year may be 
                expended by the State only in the fiscal 
                year.</DELETED>
                <DELETED>    ``(B) Carryover.--The State may reserve up 
                to 10 percent of an allotment under subsection (l)(2) 
                for a fiscal year to provide assistance under this 
                section in subsequent fiscal years, except that the 
                reserved funds may not exceed 30 percent of the total 
                allotment received under this section for a fiscal 
                year.</DELETED>
        <DELETED>    ``(4) Provision of food assistance.--A State may 
        provide food assistance under this section in any manner 
        determined appropriate by the State to provide food assistance 
        to needy individuals and families in the State, such as 
        electronic benefits transfer limited to food purchases, coupons 
        limited to food purchases, or direct provision of 
        commodities.</DELETED>
        <DELETED>    ``(5) Definition of food assistance.--In this 
        section, the term `food assistance' means assistance that may 
        be used only to obtain food, as defined in section 
        3(g).</DELETED>
<DELETED>    ``(j) Audits.--</DELETED>
        <DELETED>    ``(1) Requirement.--After the close of each fiscal 
        year, a State shall arrange for an audit of the expenditures of 
        the State during the program period from amounts received under 
        this section.</DELETED>
        <DELETED>    ``(2) Independent auditor.--An audit under this 
        section shall be conducted by an entity that is independent of 
        any agency administering activities that receive assistance 
        under this section and be in accordance with generally accepted 
        auditing principles.</DELETED>
        <DELETED>    ``(3) Payment accuracy.--Each annual audit under 
        this section shall include an audit of payment accuracy under 
        this section that shall be based on a statistically valid 
        sample of the caseload in the State.</DELETED>
        <DELETED>    ``(4) Submission.--Not later than 30 days after 
        the completion of an audit under this section, the State shall 
submit a copy of the audit to the legislature of the State and to the 
Secretary.</DELETED>
        <DELETED>    ``(5) Repayment of amounts.--Each State shall 
        repay to the United States any amounts determined through an 
        audit under this section to have not been expended in 
        accordance with this section or to have not been expended in 
        accordance with the State plan, or the Secretary may offset the 
        amounts against any other amount paid to the State under this 
        section.</DELETED>
<DELETED>    ``(k) Nondiscrimination.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall not provide 
        financial assistance for any program, project, or activity 
        under this section if any person with responsibilities for the 
        operation of the program, project, or activity discriminates 
        with respect to the program, project, or activity because of 
        race, religion, color, national origin, sex, or 
        disability.</DELETED>
        <DELETED>    ``(2) Enforcement.--The powers, remedies, and 
        procedures set forth in title VI of the Civil Rights Act of 
        1964 (42 U.S.C. 2000d et seq.) may be used by the Secretary to 
        enforce paragraph (1).</DELETED>
<DELETED>    ``(l) Allotments.--</DELETED>
        <DELETED>    ``(1) Definition of state.--In this section, the 
        term 'State' means each of the 50 States, the District of 
        Columbia, Guam, and the Virgin Islands of the United 
        States.</DELETED>
        <DELETED>    ``(2) State allotment.--</DELETED>
                <DELETED>    ``(A) In general.--Except as provided in 
                subparagraph (B), from the amounts made available under 
                section 18 of this Act for each fiscal year, the 
                Secretary shall allot to each State participating in 
                the program established under subsection (a) an amount 
                that is equal to the sum of--</DELETED>
                        <DELETED>    ``(i) the greater of, as 
                        determined by the Secretary--</DELETED>
                                <DELETED>    ``(I) the total dollar 
                                value of all benefits issued under the 
                                food stamp program established under 
                                this Act by the State during fiscal 
                                year 2003; or</DELETED>
                                <DELETED>    ``(II) the average per 
                                fiscal year of the total dollar value 
                                of all benefits issued under the food 
                                stamp program by the State during each 
                                of fiscal years 2001 through 2003; 
                                and</DELETED>
                        <DELETED>    ``(ii) the greater of, as 
                        determined by the Secretary--</DELETED>
                                <DELETED>    ``(I) the total amount 
                                received by the State for 
                                administrative costs and the employment 
                                and training program under subsections 
                                (a) and (h), respectively, of section 
                                16 of this Act for fiscal year 2003; 
                                or</DELETED>
                                <DELETED>    ``(II) the average per 
                                fiscal year of the total amount 
                                received by the State for 
                                administrative costs and the employment 
                                and training program under subsections 
                                (a) and (h), respectively, of section 
                                16 of this Act for each of fiscal years 
                                2001 through 2003.</DELETED>
                <DELETED>    ``(B) Insufficient funds.--If the 
                Secretary finds that the total amount of allotments to 
                which States would otherwise be entitled for a fiscal 
                year under subparagraph (A) will exceed the amount of 
                funds that will be made available to provide the 
                allotments for the fiscal year, the Secretary shall 
                reduce the allotments made to States under this 
                subsection, on a pro rata basis, to the extent 
                necessary to allot under this subsection a total amount 
                that is equal to the funds that will be made 
                available.''.</DELETED>

           <DELETED>TITLE VII--ABSTINENCE EDUCATION</DELETED>

<DELETED>SEC. 701. EXTENSION OF ABSTINENCE EDUCATION PROGRAM.</DELETED>

<DELETED>    (a) Extension of Appropriations.--Section 510(d) (42 
U.S.C. 710(d)) is amended by striking ``2002'' and inserting 
``2008''.</DELETED>
<DELETED>    (b) Allotment of Funds.--Section 510(a) (42 U.S.C. 710(a)) 
is amended--</DELETED>
        <DELETED>    (1) in the matter preceding paragraph (1), by 
        striking ``an application for the fiscal year under section 
        505(a)'' and inserting ``, for the fiscal year, an application 
        under section 505(a), and an application under this section (in 
        such form and meeting such terms and conditions as determined 
        appropriate by the Secretary),''; and</DELETED>
        <DELETED>    (2) in paragraph (2), to read as 
        follows:</DELETED>
        <DELETED>    ``(2) the percentage that would be determined for 
        the State under section 502(c)(1)(B)(ii) if the calculation 
        under such section took into consideration only those States 
        that transmitted both such applications for such fiscal 
        year.''.</DELETED>
<DELETED>    (c) Reallotment of Funds.--Section 510 (42 U.S.C. 710(a)) 
is amended by adding at the end the following new subsection:</DELETED>
<DELETED>    ``(e)(1) With respect to allotments under subsection (a) 
for fiscal year 2004 and subsequent fiscal years, the amount of any 
allotment to a State for a fiscal year that the Secretary determines 
will not be required to carry out a program under this section during 
such fiscal year or the succeeding fiscal year shall be available for 
reallotment from time to time during such fiscal years on such dates as 
the Secretary may fix, to other States that the Secretary determines--
</DELETED>
        <DELETED>    ``(A) require amounts in excess of amounts 
        previously allotted under subsection (a) to carry out a program 
        under this section; and</DELETED>
        <DELETED>    ``(B) will use such excess amounts during such 
        fiscal years.</DELETED>
<DELETED>    ``(2) Reallotments under paragraph (1) shall be made on 
the basis of such States' applications under this section, after taking 
into consideration the population of low-income children in each such 
State as compared with the population of low-income children in all 
such States with respect to which a determination under paragraph (1) 
has been made by the Secretary.</DELETED>
<DELETED>    ``(3) Any amount reallotted under paragraph (1) to a State 
is deemed to be part of its allotment under subsection 
(a).''.</DELETED>
<DELETED>    (d) Effective Date.--The amendments made by this section 
shall be effective with respect to the program under section 510 for 
fiscal years 2004 and succeeding fiscal years.</DELETED>

     <DELETED>TITLE VIII--TRANSITIONAL MEDICAL ASSISTANCE</DELETED>

<DELETED>SEC. 801. EXTENSION OF MEDICAID TRANSITIONAL MEDICAL 
              ASSISTANCE PROGRAM THROUGH FISCAL YEAR 2004.</DELETED>

<DELETED>    (a) In General.--Section 1925(f) (42 U.S.C. 1396r-6(f)) is 
amended by striking ``2002'' and inserting ``2004''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 1902(e)(1)(B) (42 
U.S.C. 1396a(e)(1)(B)) is amended by striking ``September 30, 2002'' 
and inserting ``the last date (if any) on which section 1925 applies 
under subsection (f) of that section''.</DELETED>
<DELETED>    (c) Effective Date.--The amendments made by this section 
shall take effect October 1, 2003.</DELETED>

<DELETED>SEC. 802. ADJUSTMENT TO PAYMENTS FOR MEDICAID ADMINISTRATIVE 
              COSTS TO PREVENT DUPLICATIVE PAYMENTS AND TO FUND 
              EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE.</DELETED>

<DELETED>    Section 1903 (42 U.S.C. 1396b) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)(7), by striking ``section 
        1919(g)(3)(B)'' and inserting ``subsection (x) and section 
        1919(g)(3)(C)''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(x) Adjustments to Payments for Administrative Costs To 
Fund Extension of Transitional Medical Assistance.--</DELETED>
        <DELETED>    ``(1) Reductions in payments for administrative 
        costs.--Effective for each calendar quarter in fiscal year 2004 
        and fiscal year 2005, the Secretary shall reduce the amount 
        paid under subsection (a)(7) to each State by an amount equal 
        to 45 percent for fiscal year 2004, and 80 percent for fiscal 
        year 2005, of one-quarter of the annualized amount determined 
        for the medicaid program under section 16(k)(2)(B) of the Food 
        Stamp Act of 1977 (7 U.S.C. 2025(k)(2)(B)).</DELETED>
        <DELETED>    ``(2) Allocation of administrative costs.--None of 
        the funds or expenditures described in section 16(k)(5)(B) of 
        the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(5)(B)) may be used 
        to pay for costs--</DELETED>
                <DELETED>    ``(A) eligible for reimbursement under 
                subsection (a)(7) (or costs that would have been 
                eligible for reimbursement but for this subsection); 
                and</DELETED>
                <DELETED>    ``(B) allocated for reimbursement to the 
                program under this title under a plan submitted by a 
                State to the Secretary to allocate administrative costs 
                for public assistance programs;</DELETED>
        <DELETED>except that, for purposes of subparagraph (A), the 
        reference in clause (iii) of that section to `subsection (a)' 
        is deemed a reference to subsection (a)(7) and clause (iv)(II) 
        of that section shall be applied as if `medicaid program' were 
        substituted for `food stamp program'.''.</DELETED>

              <DELETED>TITLE IX--EFFECTIVE DATE</DELETED>

<DELETED>SEC. 901. EFFECTIVE DATE.</DELETED>

<DELETED>    (a) In General.--Except as otherwise provided, the 
amendments made by this Act shall take effect on the date of the 
enactment of this Act.</DELETED>
<DELETED>    (b) Exception.--In the case of a State plan under part A 
or D of title IV of the Social Security Act which the Secretary 
determines requires State legislation in order for the plan to meet the 
additional requirements imposed by the amendments made by this Act, the 
effective date of the amendments imposing the additional requirements 
shall be 3 months after the first day of the first calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after the date of the enactment of this Act. 
For purposes of the preceding sentence, in the case of a State that has 
a 2-year legislative session, each year of the session shall be 
considered to be a separate regular session of the State 
legislature.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Personal Responsibility and 
Individual Development for Everyone Act'' or the ``PRIDE Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.

                             TITLE I--TANF

Sec. 101. State plan.
Sec. 102. Family assistance grants.
Sec. 103. Promotion of family formation and healthy marriage.
Sec. 104. Supplemental grant for population increases in certain 
                            States.
Sec. 105. Bonus to reward employment achievement.
Sec. 106. Contingency fund.
Sec. 107. Use of funds.
Sec. 108. Repeal of Federal loan for State welfare programs.
Sec. 109. Work participation requirements.
Sec. 110. Universal engagement and family self-sufficiency plan 
                            requirements; other prohibitions and 
                            requirements.
Sec. 111. Penalties.
Sec. 112. Data collection and reporting.
Sec. 113. Direct funding and administration by Indian tribes.
Sec. 114. Research, evaluations, and national studies.
Sec. 115. Study by the Census Bureau.
Sec. 116. Funding for child care.
Sec. 117. Definitions.
Sec. 118. Responsible fatherhood program.
Sec. 119. Additional grants.
Sec. 120. Technical corrections.

                     TITLE II--ABSTINENCE EDUCATION

Sec. 201. Extension of abstinence education program.

                        TITLE III--CHILD SUPPORT

Sec. 301. Distribution of child support collected by States on behalf 
                            of children receiving certain welfare 
                            benefits.
Sec. 302. Mandatory review and adjustment of child support orders for 
                            families receiving TANF.
Sec. 303. Report on undistributed child support payments.
Sec. 304. Use of new hire information to assist in administration of 
                            unemployment compensation programs.
Sec. 305. Decrease in amount of child support arrearage triggering 
                            passport denial.
Sec. 306. Use of tax refund intercept program to collect past-due child 
                            support on behalf of children who are not 
                            minors.
Sec. 307. Garnishment of compensation paid to veterans for service-
                            connected disabilities in order to enforce 
                            obligations.
Sec. 308. Improving Federal debt collection practices.
Sec. 309. Maintenance of technical assistance funding.
Sec. 310. Maintenance of Federal parent locator service funding.
Sec. 311. Identification and seizure of assets held by multistate 
                            financial institutions.
Sec. 312. Information comparisons with insurance data.
Sec. 313. Tribal access to the Federal parent locator service.
Sec. 314. Reimbursement of Secretary's costs of information comparisons 
                            and disclosure for enforcement of 
                            obligations on Higher Education Act loans 
                            and grants.
Sec. 315. Technical amendment relating to cooperative agreements 
                            between States and Indian tribes.
Sec. 316. Claims upon longshore and harbor workers' compensation for 
                            child support.
Sec. 317. State option to use statewide automated data processing and 
                            information retrieval system for interstate 
                            cases.
Sec. 318. Interception of gambling winnings for child support.
Sec. 319. State law requirement concerning the Uniform Interstate 
                            Family Support Act (UIFSA).
Sec. 320. Grants to States for access and visitation programs.
Sec. 321. Timing of corrective action year for State noncompliance with 
                            child support enforcement program 
                            requirements.

                        TITLE IV--CHILD WELFARE

Sec. 401. Extension of authority to approve demonstration projects.
Sec. 402. Removal of Commonwealth of Puerto Rico foster care funds from 
                            limitation on payments.
Sec. 403. Technical correction.

                 TITLE V--SUPPLEMENTAL SECURITY INCOME

Sec. 501. Review of State agency blindness and disability 
                            determinations.

               TITLE VI--TRANSITIONAL MEDICAL ASSISTANCE

Sec. 601. Extension and simplification of the transitional medical 
                            assistance program (TMA).
Sec. 602. Prohibition against covering childless adults with SCHIP 
                            funds.

                       TITLE VII--EFFECTIVE DATE

Sec. 701. Effective date.

SEC. 3. REFERENCES.

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

                             TITLE I--TANF

SEC. 101. STATE PLAN.

    (a) Performance Improvement.--Section 402(a) (42 U.S.C. 602(a)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by redesignating clause (vi) as clause 
                        (vii); and
                            (ii) by striking clause (v) and inserting 
                        the following:
                            ``(v) Establish specific measurable 
                        performance objectives for pursuing the 
                        purposes of the program under this part as 
                        described in section 401(a), including by--
                                    ``(I) establishing objectives 
                                consistent (as determined by the State) 
                                with the criteria used by the Secretary 
                                in establishing performance targets 
                                under section 403(a)(4)(C) (including 
                                with respect to workplace attachment 
                                and advancement), and with such 
                                additional criteria related to other 
                                purposes of the program under this part 
                                as described in section 401(a) as the 
                                Secretary, in consultation with the 
                                National Governors' Association and the 
                                American Public Human Services 
                                Association, shall establish; and
                                    ``(II) describing the methodology 
                                that the State will use to measure 
                                State performance in relation to each 
                                such objective.
                            ``(vi) Describe any strategies and programs 
                        the State plans to use to address--
                                    ``(I) employment retention and 
                                advancement for recipients of 
                                assistance under the program, including 
                                placement into high-demand jobs, and 
                                whether the jobs are identified using 
                                labor market information;
                                    ``(II) efforts to reduce teen 
                                pregnancy;
                                    ``(III) services for struggling and 
                                noncompliant families, and for clients 
                                with special problems; and
                                    ``(IV) program integration, 
                                including the extent to which 
                                employment and training services under 
                                the program are provided through the 
                                One-Stop delivery system created under 
                                the Workforce Investment Act of 1998, 
                                and the extent to which former 
                                recipients of such assistance have 
                                access to additional core, intensive, 
                                or training services funded through 
                                such Act.''; and
                    (B) in subparagraph (B)--
                            (i) by striking clauses (i) and (iv);
                            (ii) by redesignating clauses (ii) and 
                        (iii) as clauses (i) and (ii), respectively; 
                        and
                            (iii) by inserting after clause (ii) (as so 
                        redesignated by clause (ii)) the following:
                            ``(iii) If the State is undertaking any 
                        strategies or programs to engage faith-based 
                        organizations in the provision of services 
                        funded under this part, or that otherwise 
                        relate to section 104 of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996, the document shall 
                        describe such strategies and programs.
                            ``(iv) The document shall describe 
                        strategies to improve program management and 
                        performance.
                            ``(v) The document shall include a 
                        performance report which details State progress 
                        toward full engagement for all adult or minor 
                        child head of household recipients of 
                        assistance.'';
            (2) in paragraph (4), by inserting ``and tribal'' after 
        ``that local''; and
            (3) by adding at the end the following:
            ``(8) Certification of consultation on provision of 
        transportation aid.--In the case of a State that provides 
        transportation aid under the State program, a certification by 
        the chief executive officer of the State that State and local 
        transportation agencies and planning bodies have been consulted 
        in the development of the plan.''.
    (b) Procedures for Submitting and Amending State Plans.--
            (1) In general.--Subsection (b) of section 402 (42 U.S.C. 
        602(b)) is amended to read as follows:
    ``(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 States not 
        later than 9 months after the date of enactment of the Personal 
        Responsibility and Individual Development for Everyone Act.
            ``(2) Requirement for completed plan using standard state 
        plan format by fiscal year 2005.--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, 2004.
            ``(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 
                website 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 
                website 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 website 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 that 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).''.
            (2) Conforming amendment.--Section 402 (42 U.S.C. 602) is 
        amended by striking subsection (c).
    (c) Consultation With State Regarding Plan and Design of Tribal 
Programs.--Section 412(b)(1) (42 U.S.C. 612(b)(1)) is amended--
            (1) in subparagraph (E), by striking ``and'' at the end;
            (2) in subparagraph (F), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(G) provides an assurance that the State in which 
                the tribe is located has been consulted regarding the 
                plan and its design.''.
    (d) Performance Measures.--Section 413 (42 U.S.C. 613) is amended 
by adding at the end the following:
    ``(k) Performance Improvement.--The Secretary, in consultation with 
the States, shall develop uniform performance measures designed to 
assess the degree of effectiveness, and the degree of improvement, of 
State programs funded under this part in accomplishing the purposes of 
this part.''.
    (e) Annual Ranking of States.--Section 413(d)(1) (42 U.S.C. 
613(d)(1)) is amended to read as follows:
            ``(1) Annual ranking of states.--
                    ``(A) In general.--The Secretary shall rank 
                annually the States to which grants are paid under 
                section 403 in the order of their success in--
                            ``(i) placing recipients of assistance 
                        under the State program funded under this part 
                        into private sector jobs;
                            ``(ii) the success of the recipients in 
                        retaining employment;
                            ``(iii) the ability of the recipients to 
                        increase their wages;
                            ``(iv) the degree to which recipients have 
                        workplace attachment and advancement;
                            ``(v) reducing the overall welfare 
                        caseload; and
                            ``(vi) when a practicable method for 
                        calculating this information becomes available, 
                        diverting individuals from formally applying to 
                        the State program and receiving assistance.
                    ``(B) Consideration of other factors.--In ranking 
                States under this paragraph, the Secretary shall take 
                into account the average number of minor children 
                living at home in families in the State that have 
                incomes below the poverty line and the amount of 
                funding provided each State under this part for such 
                families.''.

SEC. 102. FAMILY ASSISTANCE GRANTS.

    (a) Extension of Authority.--Section 403(a)(1) (42 U.S.C. 
603(a)(1)(A)), as amended by section 3(a) of the Welfare Reform 
Extension Act of 2003 (Public Law 108-040, 117 Stat. 836), is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``1996, 1997, 1998, 1999, 2000, 
                2001, 2002, and 2003'' and inserting ``2004 through 
                2008''; and
                    (B) by inserting ``payable to the State for the 
                fiscal year'' before the period; and
            (2) in subparagraph (C), by striking ``for fiscal year 
        2003'' and all that follows through the period, and inserting 
        ``for each of fiscal years 2004 through 2008, $16,566,542,000 
        for grants under this paragraph.''.
    (b) Matching Grants for the Territories.--Section 1108(b)(2) (42 
U.S.C. 1308(b)(2)), as amended by section 3(b) of the Welfare Reform 
Extension Act of 2003 (Public Law 108-040, 117 Stat. 836), is amended 
by striking ``1997 through 2003'' and inserting ``2004 through 2008''.

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

    (a) State Plans.--Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)), as 
amended by section 101(a), is amended by adding at the end the 
following:
                            ``(viii) Encourage equitable treatment of 
                        healthy 2-parent married families under the 
                        program referred to in clause (i).''.
    (b) Healthy Marriage Promotion Grants; Repeal of Bonus for 
Reduction of Illegitimacy Ratio.--Section 403(a)(2) (42 U.S.C. 
603(a)(2)) is amended to read as follows:
            ``(2) Healthy marriage promotion grants.--
                    ``(A) Authority.--
                            ``(i) In general.--The Secretary shall 
                        award competitive grants to States, 
                        territories, and Indian tribes and tribal 
                        organizations for not more than 50 percent of 
                        the cost of developing and implementing 
                        innovative programs to promote and support 
                        healthy 2-parent married families.
                            ``(ii) Use of other tanf funds.--A State or 
                        Indian tribe with an approved tribal family 
                        assistance plan may use funds provided under 
                        other grants made under this part for all or 
                        part of the expenditures incurred for the 
                        remainder of the costs described in clause (i). 
                        In the case of a State, any such funds expended 
                        shall not be considered qualified State 
                        expenditures for purposes of section 409(a)(7).
                    ``(B) Healthy marriage promotion activities.--Funds 
                provided under subparagraph (A) shall be used to 
                support any of the following programs or activities:
                            ``(i) Public advertising campaigns on the 
                        value of marriage and the skills needed to 
                        increase marital stability and health.
                            ``(ii) Education in high schools on the 
                        value of marriage, relationship skills, and 
                        budgeting.
                            ``(iii) Marriage education, marriage 
                        skills, and relationship skills programs, that 
                        may include parenting skills, financial 
                        management, conflict resolution, and job and 
                        career advancement, for non-married pregnant 
                        women, non-married expectant fathers, and non-
                        married recent parents.
                            ``(iv) Pre-marital education and marriage 
                        skills training for engaged couples and for 
                        couples or individuals interested in marriage.
                            ``(v) Marriage enhancement and marriage 
                        skills training programs for married couples.
                            ``(vi) Divorce reduction programs that 
                        teach relationship skills.
                            ``(vii) Marriage mentoring programs which 
                        use married couples as role models and mentors.
                            ``(viii) Programs to reduce the 
                        disincentives to marriage in means-tested aid 
                        programs, if offered in conjunction with any 
                        activity described in this subparagraph.
                    ``(C) Voluntary participation.--Participation in 
                programs or activities described in any of clauses 
                (iii) through (vii) shall be voluntary.
                    ``(D) General rules governing use of funds.--The 
                rules of section 404, other than subsection (b) of that 
                section, shall not apply to a grant made under this 
                paragraph.
                    ``(E) Requirements for receipt of funds.--A State, 
                territory, or Indian tribe or tribal organization may 
                not be awarded a grant under this paragraph unless the 
                State, territory, Indian tribe or tribal organization, 
                as a condition of receiving funds under such a grant--
                            ``(i) consults with experts in domestic 
                        violence or with relevant community domestic 
                        violence coalitions in developing such programs 
                        or activities; and
                            ``(ii) describes in the application for a 
                        grant under this paragraph--
                                    ``(I) how the programs or 
                                activities proposed to be conducted 
                                will address, as appropriate, issues of 
                                domestic violence; and
                                    ``(II) what the State, territory, 
                                or Indian tribe or tribal organization, 
                                will do, to the extent relevant, to 
                                ensure that participation in such 
                                programs or activities is voluntary, 
                                and to inform potential participants 
                                that their involvement is voluntary.
                    ``(F) Appropriation.--
                            ``(i) In general.--Out of any money in the 
                        Treasury of the United States not otherwise 
                        appropriated, there are appropriated for each 
                        of fiscal years 2004 through 2008, $100,000,000 
                        for grants under this paragraph.
                            ``(ii) Extended availability of funds.--
                                    ``(I) In general.--Funds 
                                appropriated under clause (i) for each 
                                of fiscal years 2004 through 2008 shall 
                                remain available to the Secretary until 
                                expended.
                                    ``(II) Authority for grant 
                                recipients.--A State, territory, or 
                                Indian tribe or tribal organization may 
                                use funds made available under a grant 
                                awarded under this paragraph without 
                                fiscal year limitation pursuant to the 
                                terms of the grant.''.
    (c) Counting of Spending on Non-Eligible Families To Prevent and 
Reduce Incidence of Out-of-Wedlock Births, Encourage Formation and 
Maintenance of Healthy 2-Parent Married Families, or Encourage 
Responsible Fatherhood.--Section 409(a)(7)(B)(i) (42 U.S.C. 
609(a)(7)(B)(i)) is amended by adding at the end the following:
                                    ``(V) Counting of spending on non-
                                eligible families to prevent and reduce 
                                incidence of out-of-wedlock births, 
                                encourage formation and maintenance of 
                                healthy 2-parent married families, or 
                                encourage responsible fatherhood.--
                                Subject to subclauses (II) and (III), 
                                the term `qualified State expenditures' 
                                includes the total expenditures by the 
                                State during the fiscal year under all 
                                State programs for a purpose described 
                                in paragraph (3) or (4) of section 
                                401(a).''.
    (d) Purposes.--Section 401(a)(4) (42 U.S.C. 601(a)(4)) is amended 
by striking ``two-parent families'' and inserting ``healthy 2-parent 
married families, and encourage responsible fatherhood''.

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

     Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)), as amended by 
section 3(d) of the Welfare Reform Extension Act of 2003 (Public Law 
108-040), 117 Stat. 837), is amended--
            (1) in clause (i), by striking ``2002 and 2003'' and 
        inserting ``2004 through 2007'';
            (2) in clause (ii), by striking ``2003'' and inserting 
        ``2007''; and
            (3) in clause (iii), by striking ``2002 and 2003'' and 
        inserting ``2004 through 2007''.

SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.

    (a) Bonus To Reward Employment Achievement.--Section 403(a)(4) (42 
U.S.C. 603(a)(4)) is amended to read as follows:
            ``(4) Bonus to reward employment achievement.--
                    ``(A) In general.--The Secretary shall make a grant 
                pursuant to this paragraph to each State for each bonus 
                year for which the State is an employment achievement 
                State.
                    ``(B) Amount of grant.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary shall determine the amount of the 
                        grant payable under this paragraph to an 
                        employment achievement State for a bonus year, 
                        which shall be based on the performance of the 
                        State as determined under subparagraph (D)(i) 
                        for the fiscal year that immediately precedes 
                        the bonus year.
                            ``(ii) Limitation.--The amount payable to a 
                        State under this paragraph for a bonus year 
                        shall not exceed 5 percent of the State family 
                        assistance grant.
                    ``(C) Formula for measuring state performance.--
                            ``(i) In general.--Subject to clause (ii), 
                        not later than October 1, 2004, the Secretary, 
                        in consultation with the States, shall develop 
                        a formula for measuring State performance in 
                        operating the State program funded under this 
                        part so as to achieve the goals of employment 
                        entry, job retention, increased earnings from 
                        employment, and workplace attachment and 
                        advancement for families receiving assistance 
                        under the program, as measured on an absolute 
                        basis and on the basis of improvement in State 
                        performance.
                            ``(ii) Special rule for bonus years 2004 
                        and 2005.--For the purposes of awarding a bonus 
                        under this paragraph for bonus year 2004 or 
                        2005, the Secretary may measure the performance 
                        of a State in fiscal year 2003 or 2004 (as the 
                        case may be) using the job entry rate, job 
                        retention rate, and earnings gain rate 
                        components of the formula developed under 
                        section 403(a)(4)(C) as in effect immediately 
                        before the effective date of this paragraph.
                    ``(D) Determination of state performance.--For each 
                bonus year, the Secretary shall--
                            ``(i) use the formula developed under 
                        subparagraph (C) to determine the performance 
                        of each eligible State for the fiscal year that 
                        precedes the bonus year; and
                            ``(ii) prescribe performance standards in 
                        such a manner so as to ensure that--
                                    ``(I) the average annual total 
                                amount of grants to be made under this 
                                paragraph for each bonus year equals 
                                $100,000,000; and
                                    ``(II) the total amount of grants 
                                to be made under this paragraph for all 
                                bonus years equals $600,000,000.
                    ``(E) Definitions.--In this paragraph:
                            ``(i) Bonus year.--The term `bonus year' 
                        means each of fiscal years 2004 through 2009.
                            ``(ii) Employment achievement state.--The 
                        term `employment achievement State' means, with 
                        respect to a bonus year, an eligible State 
                        whose performance determined pursuant to 
                        subparagraph (D)(i) for the fiscal year 
                        preceding the bonus year equals or exceeds the 
                        performance standards prescribed under 
                        subparagraph (D)(ii) for such preceding fiscal 
                        year.
                    ``(F) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for the period of 
                fiscal years 2004 through 2009, $600,000,000 for grants 
                under this paragraph.
                    ``(G) Grants for tribal organizations.--This 
                paragraph shall apply with respect to tribal 
                organizations in the same manner in which this 
                paragraph applies with respect to States. In 
                determining the criteria under which to make grants to 
                tribal organizations under this paragraph, the 
                Secretary shall consult with tribal organizations.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 106. 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), and 
                out of funds appropriated under subparagraph (E), 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 product of--
                            ``(i) the applicable percentage (as defined 
                        under subparagraph (D)(i)) of the applicable 
                        benefit level (as defined in subparagraph 
                        (D)(ii)); and
                            ``(ii) the amount by which the total number 
                        of families that received assistance under the 
                        State program funded under this part in the 
                        most recently concluded 3-month period for 
                        which data are available from the State exceeds 
                        a 5-percent increase in the number of such 
                        families in the corresponding 3-month period in 
                        either of the 2 most recent preceding fiscal 
                        years and that was due, in large measure, to 
                        economic conditions rather than State policy 
                        changes.
                    ``(C) Limitation.--The total amount paid to a 
                single State under subparagraph (A) during a fiscal 
                year shall not exceed the amount equal to 10 percent of 
                the State family assistance grant (as defined under 
                subparagraph (B) of subsection (a)(1)).
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Applicable percentage.--The term 
                        `applicable percentage' means the Federal 
                        medical assistance percentage for the State (as 
                        defined in section 1905(b)).
                            ``(ii) Applicable benefit level.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the term `applicable 
                                benefit level' 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.
                    ``(E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there is appropriated for the period of 
                fiscal years 2004 through 2008, 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 period that begins with 
                any'' and inserting ``fiscal year quarter that includes 
                a''.
    (b) Modification of Definition of Needy State.--Section 403(b), as 
amended by subsection (a), (42 U.S.C. 603(b)) is further amended--
            (1) by striking paragraphs (5) and (6);
            (2) by redesignating paragraphs (7) and (8) as paragraphs 
        (5) and (6), respectively; 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), 
                subject to paragraph (4), a State will be initially 
                determined to be a needy State for a month if, as 
                determined by the Secretary--
                            ``(i) the monthly average of the 
                        unduplicated number of families that received 
                        assistance under the State program funded under 
                        this part in the most recently concluded 3-
                        month period for which data are available from 
                        the State increased by at least 5 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;
                            ``(ii) the increase in the number of such 
                        families for the State was due, in large 
                        measure, to economic conditions rather than 
                        State policy changes; and
                            ``(iii) the State satisfies any of the 
                        following criteria:
                                    ``(I) The average rate of total 
                                unemployment in the State (seasonally 
                                adjusted) 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.
                                    ``(II) The average insured 
                                unemployment rate for the most recent 
                                13 weeks for which data are available 
                                has increased by 1 percentage point 
                                over the corresponding 13-week period 
                                in either of the 2 most recent 
                                preceding fiscal years.
                                    ``(III) 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 15 
                                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, but only if the Secretary and 
                                the Secretary of Agriculture concur in 
                                the determination that the State's 
                                increased caseload was due, in large 
                                measure, to economic conditions rather 
                                than changes in Federal or State 
                                policies related to the food stamp 
                                program.
                    ``(B) Duration.--A State that qualifies as a needy 
                State--
                            ``(i) under subclause (I) or (II) of 
                        subparagraph (A)(iii), shall be considered a 
                        needy State until the State's average rate of 
                        total unemployment or the State's insured 
                        unemployment rate, respectively, falls below 
                        the level attained in the applicable period 
                        that was first used to determine that the State 
                        qualified as a needy State under that 
                        subparagraph (and in the case of the insured 
                        unemployment rate, without regard to any 
                        declines in the rate that are the result of 
                        seasonal variation); and
                            ``(ii) under subclause (III) of 
                        subparagraph (A)(iii), shall be considered a 
                        needy State so long as the State meets the 
                        criteria for being considered a needy State 
                        under that subparagraph.
            ``(4) Exceptions.--
                    ``(A) Unexpended balances.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (3), a State that has unexpended TANF 
                        balances in an amount that exceeds 30 percent 
                        of the total amount of grants received by the 
                        State under subsection (a) for the most 
                        recently completed fiscal year (other than 
                        welfare-to-work grants made under paragraph (5) 
                        of that subsection prior to fiscal year 2000), 
                        shall not be a needy State under this 
                        subsection.
                            ``(ii) Definition of unexpended tanf 
                        balances.--In clause (i), the term `unexpended 
                        TANF balances' 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 2000) but not yet 
                                expended as of the end of the fiscal 
                                year preceding the fiscal year for 
                                which the State would, in the absence 
                                of this subparagraph, be considered a 
                                needy State under this subsection; 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 2000) but not yet 
                                expended as of the end of such 
                                preceding fiscal year, plus the 
                                difference between--
                                            ``(aa) the pro rata share 
                                        of the current fiscal year 
                                        grant to be made under 
                                        subsection (a) to the State; 
                                        and
                                            ``(bb) current year 
                                        expenditures of the total 
                                        amount of grants made to the 
                                        State 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.
                    ``(B) Failure to satisfy maintenance of effort 
                requirement.--Notwithstanding paragraph (3), a State 
                that fails to satisfy the requirement of section 
                409(a)(7) with respect to a fiscal year shall not be a 
                needy State under this subsection for that fiscal 
                year.''.
    (c) Clarification of Reporting Requirements.--Paragraph (6) 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''.
    (d) Elimination of Penalty for Failure To Maintain 100 Percent 
Maintenance of Effort.--
            (1) In general.--Section 409(a) (42 U.S.C. 609(a)) is 
        amended--
                    (A) by striking paragraph (10); and
                    (B) by redesignating paragraphs (11) through (14) 
                as paragraphs (10) through (13), respectively.
            (2) Conforming amendments.--Section 409 (42 U.S.C. 609) is 
        amended--
                    (A) in subsection (a)(7)(B)(i)(III), by striking 
                ``(12)'' and inserting ``(11)'';
                    (B) in subsection (b)(2), by striking ``(10), (12), 
                or (13)'' and inserting ``(11), or (12)''; and
                    (C) in subsection (c)(4), by striking ``(10), (12), 
                or (13)'' and inserting ``(11), or (12)''.

SEC. 107. USE OF FUNDS.

    (a) Treatment of Interstate Immigrants.--Section 404 (42 U.S.C. 
604) is amended by striking subsection (c).
    (b) Restoration of Authority To Transfer Up to 10 Percent of TANF 
Funds to the Social Services Block Grant.--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.''.
    (c) Clarification of Authority of States To Use TANF Funds Carried 
Over From Prior Years To Provide TANF Benefits and Services.--Section 
404(e) (42 U.S.C. 604(e)) is amended to read as follows:
    ``(e) Authority To Carryover or Reserve Certain Amounts for 
Benefits or Services or for Future Contingencies.--
            ``(1) Carryover.--A State or tribe may use a grant made to 
        the State or tribe under this part for any fiscal year to 
        provide, without fiscal year limitation, any benefit or service 
        that may be provided under the State or tribal program funded 
        under this part.
            ``(2) Contingency reserve.--A State or tribe may designate 
        any portion of a grant made to the State or tribe under this 
        part as a contingency reserve for future needs, and may use any 
        amount so designated to provide, without fiscal year 
        limitation, any benefit or service that may be provided under 
        the State or tribal program funded under this part. If a State 
        or tribe so designates a portion of such a grant, the State or 
        tribe shall include in its report under section 411(a) the 
        amount so designated.''.
    (d) State Option To Establish Undergraduate Postsecondary or 
Vocational Educational Program.--
            (1) In general.--Section 404 (42 U.S.C. 604) is amended by 
        adding at the end the following:
    ``(l) Authority To Establish Undergraduate Postsecondary or 
Vocational Educational Program.--
            ``(1) In general.--Subject to the succeeding paragraphs of 
        this subsection, a State to which a grant is made under section 
        403 may use the grant to establish a program under which an 
        eligible participant (as defined in paragraph (5)) may be 
        provided support services described in paragraph (7) and, 
        subject to paragraph (8), may have hours of participation in 
        such program counted as being engaged in work for purposes of 
        determining monthly participation rates under section 
        407(b)(1)(B)(i).
            ``(2) State plan requirement.--In order to establish a 
        program under this subsection, a State shall describe (in an 
        addendum to the State plan submitted under section 402) the 
        applicable eligibility criteria that is designed to limit 
        participation in the program to only those individuals--
                    ``(A) whose past earnings indicate that the 
                individuals cannot qualify for employment that pays 
                enough to allow them to obtain self-sufficiency (as 
                determined by the State); and
                    ``(B) for whom enrollment in the program will 
                prepare the individuals for higher-paying occupations 
                in demand in the State.
            ``(3) Limitation on enrollment.--The number of eligible 
        participants in a program established under this subsection may 
        not exceed 10 percent of the total number of families receiving 
        assistance under the State program funded under this part.
            ``(4) No federal funds for tuition.--A State may not use 
        Federal funds provided under a grant made under section 403 to 
        pay tuition for an eligible participant.
            ``(5) Definition of eligible participant.--In this 
        subsection, the term `eligible participant' means an individual 
        who receives assistance under the State program funded under 
        this part and satisfies the following requirements:
                            ``(i) The individual is enrolled in a 
                        postsecondary 2- or 4-year degree program or in 
                        a vocational educational training program.
                            ``(ii) During the period the individual 
                        participates in the program, the individual 
                        maintains satisfactory academic progress, as 
                        defined by the institution operating the 
                        undergraduate postsecondary or vocational 
                        educational program in which the individual is 
                        enrolled.
            ``(6) Required time periods for completion of degree or 
        vocational educational training program.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                eligible participant participating in a program 
                established under this subsection shall be required to 
                complete the requirements of a degree or vocational 
                educational training program within the normal 
                timeframe for full-time students seeking the particular 
                degree or completing the vocational educational 
                training program.
                    ``(B) Exception.--For good cause, the State may 
                allow an eligible participant to complete their degree 
                requirements or vocational educational training program 
                within a period not to exceed 1\1/2\ times the normal 
                timeframe established under subparagraph (A) (unless 
                further modification is required by the Americans with 
                Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), or 
                section 504 of the Rehabilitation Act of 1973 (29 
                U.S.C. 794)) and may modify the requirements applicable 
                to an individual participating in the program. For 
                purposes of the preceding sentence, good cause includes 
                the case of an eligible participant with 1 or more 
                significant barriers to normal participation, as 
                determined by the State, such as the need to care for a 
                family member with special needs.
            ``(7) Support services described.--For purposes of 
        paragraph (1), the support services described in this paragraph 
        include any or all of the following during the period the 
        eligible participant is in the program established under this 
        subsection:
                    ``(A) Child care.
                    ``(B) Transportation services.
                    ``(C) Payment for books and supplies.
                    ``(D) Other services provided under policies 
                determined by the State to ensure coordination and lack 
                of duplication with other programs available to provide 
                support services.
            ``(8) Rules for inclusion in monthly work participation 
        rates.--
                    ``(A) Families counted as participating if they 
                meet the requirements of subparagraphs (b) or (c).--For 
                each eligible participant, a State may elect, for 
                purposes of determining monthly participation rates 
                under section 407(b)(1)(B)(i), to include such 
                participant in the determination of such rates in 
                accordance with subparagraph (B) or (C).
                    ``(B) Full or partial credit for hours of 
                participation in educational or related activities.--
                            ``(i) In general.--Subject to clause (iv), 
                        an eligible participant who participates in 
                        educational or related activities (as 
                        determined by the State) under a program 
                        established under this subsection shall be 
                        given credit for the number of hours of such 
                        participation to the extent that an adult 
                        recipient or minor child head of household 
                        would be given credit under section 407(c) for 
                        being engaged in the same number of hours of 
                        work activities described in paragraph (1), 
                        (2), (3), (4), (5), (6), (7), (8), or (12) of 
                        section 407(d).
                            ``(ii) Related activities.--For purposes of 
                        clause (i), related activities shall include--
                                    ``(I) work activities described in 
                                paragraph (1), (2), (3), (4), (5), (6), 
                                (7), (8), or (12) of section 407(d);
                                    ``(II) work study, practicums, 
                                internships, clinical placements, 
                                laboratory or field work, or such other 
                                activities as will enhance the eligible 
                                participant's employability in the 
                                participant's field of study, as 
                                determined by the State; or
                                    ``(III) subject to clause (iii), 
                                study time.
                            ``(iii) Limitation on inclusion of study 
                        time.--For purposes of determining hours per 
                        week of participation by an eligible 
                        participant under a program established under 
                        this subsection, a State may not count study 
                        time of less than 1 hour for every hour of 
                        class time or more than 2 hours for every hour 
                        of class time.
                            ``(iv) Total number of hours limited to 
                        being counted as 1 family.--In no event may 
                        hours per week of participation by an eligible 
                        participant under a program established under 
                        this subsection be counted as more than 1 
                        family for purposes of determining monthly 
                        participation rates under section 
                        407(b)(1)(B)(i).
                    ``(C) Full credit for being engaged in direct work 
                activities for certain hours per week.--
                            ``(i) In general.--A family that includes 
                        an eligible participant who, in addition to 
                        complying with the full-time educational 
                        participation requirements of the degree or 
                        vocational educational training program they 
                        are enrolled in, participates in an activity 
                        described in subclause (I), (II), or (III) of 
                        subparagraph (B)(ii) for not less than the 
                        number of hours required per week under clause 
                        (ii) shall be counted as 1 family.
                            ``(ii) Required hours per week.--For 
                        purposes of clause (i), subject to clause 
                        (iii), the number of hours per week are--
                                    ``(I) 6 hours per week during the 
                                first 12-month period that an eligible 
                                participant participates in a program 
                                established under this subsection;
                                    ``(II) 8 hours per week during the 
                                second 12-month period of such 
                                participation;
                                    ``(II) 10 hours per week during the 
                                third 12-month period of such 
                                participation; and
                                    ``(II) 12 hours per week during the 
                                fourth or any other succeeding 12- 
                                month period of such participation.
                            ``(iii) Modification of requirements for 
                        good cause.--A State may modify the number of 
                        hours per week required under clause (ii) for 
                        good cause. For purposes of the preceding 
                        sentence, good cause includes the case of an 
                        eligible participant with 1 or more significant 
                        barriers to normal participation, as determined 
                        by the State, such as the need to care for a 
                        family member with special needs.''.
            (2) Conforming amendment.--Section 407(d)(8) (42 U.S.C. 
        607(d)(8)) is amended by inserting ``other than an individual 
        participating in a program established under section 404(l)'' 
        after ``individual''.

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

    (a) Repeal.--Section 406 (42 U.S.C. 606) is repealed.
    (b) Conforming Amendments.--
            (1) Section 409 (42 U.S.C. 609), as amended by section 
        106(d)(2), is amended--
                    (A) in subsection (a), by striking paragraph (6);
                    (B) in subsection (b)(2), by striking ``(6),''; and
                    (C) in subsection (c)(4), by striking ``(6),''.
            (2) Section 412 (42 U.S.C. 612) is amended by striking 
        subsection (f) and redesignating subsections (g) through (i) as 
        subsections (f) through (h), respectively.
            (3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 
        striking ``406,''.

SEC. 109. WORK PARTICIPATION REQUIREMENTS.

    (a) Elimination of Separate Work Participation Rate for 2-Parent 
Families Beginning With Fiscal Year 2003.--
            (1) In general.--Section 407 (42 U.S.C. 607) is amended--
                    (A) in subsection (a)--
                            (i) in the heading, by striking 
                        ``Participation Rate Requirements'' and all 
                        that follows through ``A State'' and inserting 
                        ``Participation Rate Requirements.--A State''; 
                        and
                            (ii) by striking paragraph (2);
                    (B) in subsection (b)--
                            (i) by striking paragraph (2);
                            (ii) in paragraph (4), by striking 
                        ``paragraphs (1)(B) and (2)(B)'' and inserting 
                        ``determining monthly participation rates under 
                        paragraph (1)(B)''; and
                            (iii) in paragraph (5), by striking 
                        ``rates'' and inserting ``rate''; and
                    (C) in subsection (c)--
                            (i) in paragraph (1)--
                                    (I) by striking ``General rules.--
                                '' and all that follows through ``For 
                                purposes'' in subparagraph (A) and 
                                inserting ``General rule.--For 
                                purposes''; and
                                    (II) by striking subparagraph (B); 
                                and
                            (ii) in paragraph (2)(D)--
                                    (I) by striking ``paragraphs 
                                (1)(B)(i) and (2)(B) of subsection 
                                (b)'' and inserting ``subsection 
                                (b)(1)(B)(i)''; and
                                    (II) by striking ``and in 2-parent 
                                families, respectively,''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect as if enacted on October 1, 2002.
    (b) Minimum Participation Rates.--Section 407(a) (42 U.S.C. 
607(a)), as amended by subsection (a)(1)(A), is amended to read as 
follows:
    ``(a) Participation Rate Requirements.--
            ``(1) In general.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve a minimum 
        participation rate with respect to all families receiving 
        assistance under the State program funded under this part that 
        is equal to not less than--
                    ``(A) 50 percent for fiscal year 2004;
                    ``(B) 55 percent for fiscal year 2005;
                    ``(C) 60 percent for fiscal year 2006;
                    ``(D) 65 percent for fiscal year 2007; and
                    ``(E) 70 percent for fiscal year 2008 and each 
                succeeding fiscal year.''.
    (c) Limitation on Reduction of Participation Rate Through 
Application of Credits.--Section 407(a) (42 U.S.C. 607(b)), as amended 
by subsection (b), is amended by adding at the end the following:
            ``(2) Limitation on reduction of participation rate through 
        application of credits.--Notwithstanding any other provision of 
        this part, the net effect of any percentage reduction in the 
        minimum participation rate otherwise required under this 
        section with respect to families receiving assistance under the 
        State program funded under this part as a result of the 
        application of any employment credit, caseload reduction 
        credit, or other credit against such rate for a fiscal year, 
        shall not exceed--
                    ``(A) 40 percentage points, in the case of fiscal 
                year 2004;
                    ``(B) 35 percentage points, in the case of fiscal 
                year 2005;
                    ``(C) 30 percentage points, in the case of fiscal 
                year 2006;
                    ``(D) 25 percentage points, in the case of fiscal 
                year 2007; or
                    ``(E) 20 percentage points, in the case of fiscal 
                year 2008 or any fiscal year thereafter.''.
    (d) Replacement of Caseload Reduction Credit With Employment 
Credit.--
            (1) Employment credit to reward states in which families 
        leave welfare for work; additional credit for families with 
        higher earnings.--
                    (A) In general.--Section 407(b) (42 U.S.C. 607(b)), 
                as amended by subsection (a)(1)(B)(i), is amended by 
                inserting after paragraph (1) the following:
            ``(2) Employment credit.--
                    ``(A) In general.--Subject to subsection (a)(2), 
                the Secretary shall, by regulation, reduce the minimum 
                participation rate otherwise applicable to a State 
                under this subsection for a fiscal year by the number 
                of percentage points in the employment credit for the 
                State for the fiscal year, as determined by the 
                Secretary--
                            ``(i) using information in the National 
                        Directory of New Hires;
                            ``(ii) with respect to a recipient of 
                        assistance or former recipient of assistance 
                        under the State program funded under this part 
                        who is placed with an employer whose hiring 
                        information is not reported to the National 
                        Directory of New Hires, using quarterly wage 
                        information submitted by the State to the 
                        Secretary not later than such date as the 
                        Secretary shall prescribe in regulations; or
                            ``(iii) with respect to families described 
                        in subclause (II) or (III) of subparagraph 
                        (B)(ii), using such other data as the Secretary 
                        may require in order to determine the 
                        employment credit for a State under this 
                        paragraph.
                    ``(B) Calculation of credit.--
                            ``(i) In general.--The employment credit 
                        for a State for a fiscal year is an amount 
                        equal to the sum of the amounts determined 
                        under clause (ii), divided by the amount 
                        determined under clause (iii).
                            ``(ii) Numerator.--For purposes of clause 
                        (i), the amounts determined under this clause 
                        are the following:
                                    ``(I) Twice the quarterly average 
                                unduplicated number of families that 
                                include an adult or minor child head of 
                                household recipient of assistance under 
                                the State program funded under this 
                                part, that ceased to receive such 
                                assistance for at least 2 consecutive 
                                months following the date of the case 
                                closure for the family during the 
                                applicable period (as defined in clause 
                                (v)), that did not receive assistance 
                                under a separate State-funded program 
                                during such 2-month period, and that 
                                were employed during the calendar 
                                quarter immediately succeeding the 
                                quarter in which the assistance under 
                                the State program funded under this 
                                part ceased.
                                    ``(II) At the option of the State, 
                                twice the quarterly average number of 
                                families that received a nonrecurring 
                                short-term benefit under the State 
                                program funded under this part during 
                                the applicable period (as so defined), 
                                that were employed during the calendar 
                                quarter immediately succeeding the 
                                quarter in which the nonrecurring 
                                short-term benefit was so received, and 
                                that earned at least $1,000 during the 
                                applicable period (as so defined).
                                    ``(III) At the option of the State, 
                                twice the quarterly average number of 
                                families that includes an adult who is 
                                receiving 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 a 
                                length of time over which the 
                                assistance is received, and which takes 
                                account of large one-time transition 
                                payments)) during the applicable period 
                                (as so defined).
                            ``(iii) Denominator.--For purposes of 
                        clause (i), the amount determined under this 
                        clause is the amount equal to the sum of the 
                        following:
                                    ``(I) The average monthly number of 
                                families that include an adult or minor 
                                child head of household who received 
                                assistance under the State program 
                                funded under this part during the 
                                applicable period (as defined under 
                                clause (v)).
                                    ``(II) If the State elected the 
                                option under clause (ii)(II), twice the 
                                quarterly average number of families 
                                that received a nonrecurring short-term 
                                benefit under the State program funded 
                                under this part during the applicable 
                                period (as so defined).
                                    ``(III) If the State elected the 
                                option under clause (ii)(III), twice 
                                the quarterly average number of 
                                families that includes an adult who is 
                                receiving substantial child care or 
                                transportation assistance during the 
                                applicable period (as so defined).
                            ``(iv) Special rule for former recipients 
                        with higher earnings.--In calculating the 
                        employment credit for a State for a fiscal 
                        year, in the case of a family that includes an 
                        adult or a minor child head of household that 
                        is to be included in the amount determined 
                        under clause (ii)(I) and that, with respect to 
                        the quarter in which the family's earnings was 
                        examined during the applicable period, earned 
                        at least 33 percent of the average quarterly 
                        earnings in the State (determined on the basis 
                        of State unemployment data), the family shall 
                        be considered to be 1.5 families.
                            ``(v) Definition of applicable period.--For 
                        purposes of this paragraph, the term 
                        `applicable period' means, with respect to a 
                        fiscal year, the most recent 4 quarters for 
                        which data are available to the Secretary 
                        providing information on the work status of--
                                    ``(I) individuals in the quarter 
                                after the individuals ceased receiving 
                                assistance under the State program 
                                funded under this part;
                                    ``(II) at State option, individuals 
                                in the quarter after the individuals 
                                received a short-term, nonrecurring 
                                benefit; and
                                    ``(III) at State option, 
                                individuals in the quarter after the 
                                individuals ceased receiving 
                                substantial child care or 
                                transportation assistance.
                    ``(C) Notification to state.--Not later than August 
                30 of each fiscal year, the Secretary shall--
                            ``(i) determine, on the basis of the 
                        applicable period, the amount of the employment 
                        credit that will be used in determining the 
                        minimum participation rate for a State under 
                        subsection (a) for the immediately succeeding 
                        fiscal year; and
                            ``(ii) notify each State conducting a State 
                        program funded under this part of the amount of 
                        the employment credit for such program for the 
                        succeeding fiscal year.''.
                    (B) Authority of secretary to use information in 
                national directory of new hires.--Section 453(i) (42 
                U.S.C. 653(i)) is amended by adding at the end the 
                following:
            ``(5) Calculation of employment credit for purposes of 
        determining state work participation rates under tanf.--The 
        Secretary may use the information in the National Directory of 
        New Hires for purposes of calculating State employment credits 
        pursuant to section 407(b)(2).''.
            (2) Elimination of caseload reduction credit.--Section 
        407(b) (42 U.S.C. 607(b)) is amended by striking paragraph (3) 
        and redesignating paragraphs (4) and (5) as paragraphs (3) and 
        (4), respectively.
            (3) Effective dates.--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C), the amendments made by this 
                subsection shall take effect on October 1, 2005.
                    (B) State option to phase-in replacement of 
                caseload reduction credit with employment credit and 
                delay applicability of other provisions.--A State may 
                elect to have the amendments made by this subsection 
                not apply to the State program funded under part A of 
                title IV of the Social Security Act until October 1, 
                2006, and if the State makes the election, then, in 
                determining the participation rate of the State for 
                purposes of section 407 of the Social Security Act for 
                fiscal year 2006, the State shall be credited with \1/
                2\ of the reduction in the rate that would otherwise 
                result from applying section 407(b)(2) of the Social 
                Security Act (as added by paragraph (1)(A)) to the 
                State for fiscal year 2006 and \1/2\ of the reduction 
                in the rate that would otherwise result from applying 
                section 407(b)(3) of the Social Security Act (as in 
                effect with respect to fiscal year 2003) to the State 
                for fiscal year 2006.
                    (C) Authority to use information in the national 
                directory of new hires.--The amendment made by 
                paragraph (1)(B) shall take effect on October 1, 2003.
    (e) State Options for Participation Requirement Exemptions.--
Section 407(b)(4) (42 U.S.C. 607(b)(4)), as amended by subsection 
(a)(1)(B)(iii) and redesignated by subsection (d)(2), is amended to 
read as follows:
            ``(4) State options for participation requirement 
        exemptions.--At the option of a State, a State may, on a case-
        by-case basis--
                    ``(A) not include a family in the determination of 
                the monthly participation rate for the State in the 
                first month for which the family receives assistance 
                from the State program funded under this part on the 
                basis of the most recent application for such 
                assistance; or
                    ``(B) not require a family in which the youngest 
                child has not attained 12 months of age to engage in 
                work, and may disregard that family in determining the 
                minimum participation rate under subsection (a) for the 
                State for not more than 12 months.''.
    (f) Determination of Countable Hours Engaged in Work.--
            (1) In general.--Section 407(c) (42 U.S.C. 607(c)) is 
        amended to read as follows:
    ``(c) Determination of Countable Hours Engaged in Work.--
            ``(1) Single parent or relative with a child over age 6.--
                    ``(A) Minimum average number of hours per week.--
                Subject to the succeeding paragraphs of this 
                subsection, a family in which an adult recipient or 
                minor child head of household in the family is 
                participating in work activities described in 
                subsection (d) shall be treated as engaged in work for 
                purposes of determining monthly participation rates 
                under subsection (b)(1)(B)(i) as follows:
                            ``(i) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 20, but 
                        less than 24, hours per week in a month, as 
                        0.675 of a family.
                            ``(ii) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 24, but 
                        less than 30, hours per week in a month, as 
                        0.75 of a family.
                            ``(iii) In the case of a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 30, but 
                        less than 34, hours per week in a month, as 
                        0.875 of a family.
                            ``(iv) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 34, but 
                        less than 35, hours per week in a month, as 1 
                        family.
                            ``(v) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 35, but 
                        less than 38, hours per week in a month, as 
                        1.05 families.
                            ``(vi) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 38 hours 
                        per week in a month, as 1.08 families.
                    ``(B) Direct work activities required for an 
                average of 24 hours per week.--Except as provided in 
                subparagraph (C)(i), a State may not count any hours of 
                participation in work activities specified in paragraph 
                (9), (10), or (11) of subsection (d) of any adult 
                recipient or minor child head of household in a family 
                before the total number of hours of participation by 
                any adult recipient or minor child head of household in 
                the family in work activities described in paragraph 
                (1), (2), (3), (4), (5), (6), (7), (8), or (12) of 
                subsection (d) for the family for the month averages at 
                least 24 hours per week.
                    ``(C) State flexibility to count participation in 
                certain activities.--
                            ``(i) Qualified activities for 3-months in 
                        any 24-month period.--
                                    ``(I) 24-hours per week required.--
                                Subject to subclauses (III) and (IV), 
                                for purposes of determining hours under 
                                subparagraph (A), a State may count the 
                                total number of hours any adult 
                                recipient or minor child head of 
                                household in a family engages in 
                                qualified activities described in 
                                subclause (II) as a work activity 
                                described in subsection (d), without 
                                regard to whether the recipient has 
                                satisfied the requirement of 
                                subparagraph (B), but only if--
                                            ``(aa) the total number of 
                                        hours of participation in such 
                                        qualified activities for the 
                                        family for the month average at 
                                        least 24 hours per week; and
                                            ``(bb) engaging in such 
                                        qualified activities is a 
                                        requirement of the family self-
                                        sufficiency plan.
                                    ``(II) Qualified activities 
                                described.--For purposes of subclause 
                                (I), qualified activities described in 
                                this subclause are any of the 
                                following:
                                            ``(aa) Postsecondary 
                                        education.
                                            ``(bb) Adult literacy 
                                        programs or activities.
                                            ``(cc) Substance abuse 
                                        counseling or treatment.
                                            ``(dd) Programs or 
                                        activities designed to remove 
                                        barriers to work, as defined by 
                                        the State.
                                            ``(ee) Work activities 
                                        authorized under any waiver for 
                                        any State that was continued 
                                        under section 415 before the 
                                        date of enactment of the 
                                        Personal Responsibility and 
                                        Individual Development for 
                                        Everyone Act.
                                    ``(III) Limitation.--Except as 
                                provided in clause (ii), subclause (I) 
                                shall not apply to a family for more 
                                than 3 months in any period of 24 
                                consecutive months.
                                    ``(IV) Certain activities.--The 
                                Secretary may allow a State to count 
                                the total hours of participation in 
                                qualified activities described in 
                                subclause (II) for an adult recipient 
                                or minor child head of household 
                                without regard to the minimum 24 hour 
                                average per week of participation 
                                requirement under subclause (I) if the 
                                State has demonstrated conclusively 
                                that such activity is part of a 
                                substantial and supervised program 
                                whose effectiveness in moving families 
                                to self-sufficiency is superior to any 
                                alternative activity and the 
                                effectiveness of the program in moving 
                                families to self-sufficiency would be 
                                substantially impaired if participating 
                                individuals participated in additional, 
                                concurrent qualified activities that 
                                enabled the individuals to achieve an 
                                average of at least 24 hours per week 
                                of participation.
                            ``(ii) Additional 3-month period permitted 
                        for certain activities.--
                                    ``(I) Self-sufficiency plan 
                                requirement combined with minimum 
                                number of hours.--A State may extend 
                                the 3-month period under clause (i) for 
                                an additional 3 months in the same 
                                period of 24 consecutive months in the 
                                case of an adult recipient or minor 
                                child head of household who is 
                                receiving qualified rehabilitative 
                                services described in subclause (II) 
                                if--
                                            ``(aa) the total number of 
                                        hours that the adult recipient 
                                        or minor child head of 
                                        household engages in such 
                                        qualified rehabilitative 
                                        services and, subject to 
                                        subclause (III), a work 
                                        activity described in paragraph 
                                        (1), (2), (3), (4), (5), (6), 
                                        (7), (8), or (12) of subsection 
                                        (d) for the month average at 
                                        least 24 hours per week; and
                                            ``(bb) engaging in such 
                                        qualified rehabilitative 
                                        services is a requirement of 
                                        the family self-sufficiency 
                                        plan.
                                    ``(II) Qualified rehabilitative 
                                services described.--For purposes of 
                                subclause (I), qualified rehabilitative 
                                services described in this subclause 
                                are any of the following:
                                            ``(aa) Adult literacy 
                                        programs or activities.
                                            ``(bb) Participation in a 
                                        program designed to increase 
                                        proficiency in the English 
                                        language.
                                            ``(cc) In the case of an 
                                        adult recipient or minor child 
                                        head of household who has been 
                                        certified by a qualified 
                                        medical, mental health, or 
                                        social services professional 
                                        (as defined by the State) as 
                                        having a physical or mental 
                                        disability, substance abuse 
                                        problem, or other problem that 
                                        requires a rehabilitative 
                                        service, substance abuse 
                                        treatment, or mental health 
                                        treatment, the service or 
                                        treatment determined necessary 
                                        by the professional.
                                    ``(III) Nonapplication of 
                                limitations on job search and 
                                vocational educational training.--An 
                                adult recipient or minor child head of 
                                household who is receiving qualified 
                                rehabilitative services described in 
                                subclause (II) may engage in a work 
                                activity described in paragraph (6) or 
                                (8) of subsection (d) for purposes of 
                                satisfying the minimum 24 hour average 
                                per week of participation requirement 
                                under subclause (I)(aa) without regard 
                                to any limit that otherwise applies to 
                                the activity (including the 30 percent 
                                limitation on participation in 
                                vocational educational training under 
                                paragraph (6)(C)).
                            ``(iii) Hours in excess of an average of 24 
                        work activity hours per week.--If the total 
                        number of hours that any adult recipient or 
                        minor child head of household in a family has 
                        participated in a work activity described in 
                        paragraph (1), (2), (3), (4), (5), (6), (7), 
                        (8), or (12) of subsection (d) averages at 
                        least 24 hours per week in a month, a State, 
                        for purposes of determining hours under 
                        subparagraph (A), may count any hours an adult 
                        recipient or minor child head of household in 
                        the family engages in--
                                    ``(I) any work activity described 
                                in subsection (d), without regard to 
                                any limit that otherwise applies to the 
                                activity (including the 30 percent 
                                limitation on participation in 
                                vocational educational training under 
                                paragraph (6)(C)); and
                                    ``(II) any qualified activity 
                                described in clause (i)(II), as a work 
                                activity described in subsection (d).
            ``(2) Single parent or relative with a child under age 6.--
                    ``(A) In general.--A family in which an adult 
                recipient or minor child head of household in the 
                family is the only parent or caretaker relative in the 
                family of a child who has not attained 6 years of age 
                and who is participating in work activities described 
                in subsection (d) shall be treated as engaged in work 
                for purposes of determining monthly participation rates 
                under subsection (b)(1)(B)(i) as follows:
                            ``(i) In the case of such a family in which 
                        the total number of hours in which the adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 20, but 
                        less than 24, hours per week in a month, as 
                        0.675 of a family.
                            ``(ii) In the case of such a family in 
                        which the total number of hours in which the 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        24, but less than 35, hours per week in a 
                        month, as 1 family.
                            ``(iii) In the case of such a family in 
                        which the total number of hours in which the 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        35, but less than 38, hours per week in a 
                        month, as 1.05 families.
                            ``(iv) In the case of such a family in 
                        which the total number of hours in which the 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        38 hours per week in a month, as 1.08 families.
                    ``(B) Application of rules regarding direct work 
                activities and state flexibility to count participation 
                in certain activities.--Subparagraphs (B) and (C) of 
                paragraph (1) apply to a family described in 
                subparagraph (A) in the same manner as such 
                subparagraphs apply to a family described in paragraph 
                (1)(A).
            ``(3) 2-parent families.--
                    ``(A) In general.--Subject to paragraph (6)(A), a 
                2-parent family in which an adult recipient or minor 
                child head of household in the family is participating 
                in work activities described in subsection (d) shall be 
                treated as engaged in work for purposes of determining 
                monthly participation rates under subsection 
                (b)(1)(B)(i) as follows:
                            ``(i) In the case of such a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 26, but 
                        less than 30, hours per week in a month, as 
                        0.675 of a family.
                            ``(ii) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        30, but less than 35, hours per week in a 
                        month, as 0.75 of a family.
                            ``(iii) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        35, but less than 39, hours per week in a 
                        month, as 0.875 of a family.
                            ``(iv) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        39, but less than 40, hours per week in a 
                        month, as 1 family.
                            ``(v) In the case of such a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 40, but 
                        less than 43, hours per week in a month, as 
                        1.05 families.
                            ``(vi) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        43 hours per week in a month, as 1.08 families.
                    ``(B) Application of rules regarding direct work 
                activities and state flexibility to count participation 
                in certain activities.--Subparagraphs (B) and (C) of 
                paragraph (1) apply to a 2-parent family described in 
                subparagraph (A) in the same manner as such 
                subparagraphs apply to a family described in paragraph 
                (1)(A), except that subparagraph (B) of paragraph (1) 
                shall be applied to a such a 2-parent family by 
                substituting `34' for `24' each place it appears.
            ``(4) 2-parent families that receive federally funded child 
        care.--
                    ``(A) In general.--Subject to paragraph (6)(A), if 
                a 2-parent family receives federally funded child care 
                assistance, an adult recipient or minor child head of 
                household in the family participating in work 
                activities described in subsection (d) shall be treated 
                as engaged in work for purposes of determining monthly 
                participation rates under subsection (b)(1)(B)(i) as 
                follows:
                            ``(i) In the case of such a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 40, but 
                        less than 45, hours per week in a month, as 
                        0.675 of a family.
                            ``(ii) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        45, but less than 51, hours per week in a 
                        month, as 0.75 of a family.
                            ``(iii) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        51, but less than 55, hours per week in a 
                        month, as 0.875 of a family.
                            ``(iv) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        55, but less than 56, hours per week in a 
                        month, as 1 family.
                            ``(v) In the case of such a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 56, but 
                        less than 59, hours per week in a month, as 
                        1.05 families.
                            ``(vi) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        59 hours per week in a month, as 1.08 families.
                    ``(B) Application of rules regarding direct work 
                activities and state flexibility to count participation 
                in certain activities.--Subparagraphs (B) and (C) of 
                paragraph (1) apply to a 2-parent family described in 
                subparagraph (A) in the same manner as such 
                subparagraphs apply to a family described in paragraph 
                (1)(A), except that subparagraph (B) of paragraph (1) 
                shall be applied to a such a 2-parent family by 
                substituting `50' for `24' each place it appears.
            ``(5) Calculation of hours per week.--The number of hours 
        per week that a family is engaged in work is the quotient of--
                    ``(A) the total number of hours per month that the 
                family is engaged in work; divided by
                    ``(B) 4.
            ``(6) Special rules.--
                    ``(A) Family with a disabled parent not treated as 
                a 2-parent family.--A family that includes a disabled 
                parent shall not be considered a 2-parent family for 
                purposes of paragraph (3) or (4).
                    ``(B) Number of weeks for which job search counts 
                as work.--An individual shall not be considered to be 
                engaged in work for a month by virtue of participation 
                in an activity described in subsection (d)(6) of a 
                State program funded under this part, after the 
                individual has participated in such an activity for 6 
                weeks (or, if the unemployment rate of the State is at 
                least 50 percent greater than the unemployment rate of 
                the United States, or the State meets the criteria of 
                subclause (I), (II), or (III) of section 
                403(b)(3)(A)(iii) or satisfies the applicable duration 
                requirement of section 403(b)(3)(B)), 12 weeks).
                    ``(C) Single teen head of household or married teen 
                who maintains satisfactory school attendance deemed to 
                count as 1 family.--For purposes of determining hours 
                under the preceding paragraphs of this subsection, with 
                respect to a month, a State shall count a recipient who 
                is married or a head of household and who has not 
                attained 20 years of age as 1 family if the recipient--
                            ``(i) maintains satisfactory attendance at 
                        secondary school or the equivalent during the 
                        month; or
                            ``(ii) participates in education directly 
                        related to employment for an average of at 
                        least 20 hours per week during the month.
                    ``(D) Limitation on number of persons who may be 
                treated as engaged in work by reason of participation 
                in educational activities.--Except as provided in 
                paragraph (1)(C)(ii)(I), for purposes of 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--
                            ``(i) determined (without regard to 
                        individuals participating in a program 
                        established under section 404(l)) to be engaged 
                        in work for the month by reason of 
                        participation in vocational educational 
                        training (but only with respect to such 
                        training that does not exceed 12 months with 
                        respect to any individual); or
                            ``(ii) deemed to be engaged in work for the 
                        month by reason of subparagraph (C) of this 
                        paragraph.
                    ``(E) State option to deem single parent caring for 
                a child or adult dependent for care with a physical or 
                mental impairment to be meeting all or part of a 
                family's work participation requirements for a month.--
                            ``(i) In general.--A State may count the 
                        number of hours per week that an adult 
                        recipient or minor child head of household who 
                        is the only parent or caretaker relative for a 
                        child or adult dependent for care with a 
                        physical or mental impairment engages in 
                        providing substantial ongoing care for such 
                        child or adult dependent for care if the State 
                        determines that--
                                    ``(I) the child or adult dependent 
                                for care has been verified through a 
                                medically acceptable clinical or 
                                diagnostic technique as having a 
                                significant physical or mental 
                                impairment or combination of 
                                impairments that require substantial 
                                ongoing care;
                                    ``(II) the adult recipient or minor 
                                child head of household providing such 
                                care is the most appropriate means, as 
                                determined by the State, by which such 
                                care can be provided to the child or 
                                adult dependent for care;
                                    ``(III) for each month in which 
                                this subparagraph applies to the adult 
                                recipient or minor child head of 
                                household, the adult recipient or minor 
                                child head of household is in 
                                compliance with the requirements of the 
                                family's self-sufficiency plan; and
                                    ``(IV) the recipient is unable to 
                                participate fully in work activities, 
                                after consideration of whether there 
                                are supports accessible and available 
                                to the family for the care of the child 
                                or adult dependent for care.
                            ``(ii) Total number of hours limited to 
                        being counted as 1 family.--In no event may a 
                        family that includes a recipient to which 
                        clause (i) applies be counted as more than 1 
                        family for purposes of determining monthly 
                        participation rates under subsection 
                        (b)(1)(B)(i).
                            ``(iii) State requirements.--In the case of 
                        a recipient to which clause (i) applies, the 
                        State shall--
                                    ``(I) conduct regular, periodic 
                                evaluations of the family of the adult 
                                recipient or minor child head of 
                                household; and
                                    ``(II) include as part of the 
                                family's self-sufficiency plan, regular 
                                updates on what special needs of the 
                                child or the adult dependent for care, 
                                including substantial ongoing care, 
                                could be accommodated either by 
                                individuals other than the adult 
                                recipient or minor child head of 
                                household outside of the home.
                            ``(iv) Rule of construction.--Nothing in 
                        this subparagraph shall be construed as 
                        prohibiting a State from including in a 
                        recipient's self-sufficiency plan a requirement 
                        to engage in work activities described in 
                        subsection (d).
                    ``(F) Optional modification of work requirements 
                for recipients residing in areas of indian country or 
                an alaskan native village with high joblessness.--If a 
                State has included in the State plan a description of 
                the State's policies in areas of Indian country or an 
                Alaskan Native village described in section 
                408(a)(7)(D), the State may define the activities that 
                the State will treat as being work activities described 
                in subsection (d) that a recipient who resides in such 
                an area and who is participating in such activities in 
                accordance with a self-sufficiency plan under section 
                408(b) may engage in for purposes of satisfying work 
                requirements under the State program and for purposes 
                of determining monthly participation rates under 
                subsection (b)(1)(B)(i).''.
            (2) Conforming amendment relating to authority to deem 
        single parent of a child or adult dependent for care with a 
        physical or mental impairment deemed to be meeting all or part 
        of a family's work participation requirements for a month.--
        Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as amended by 
        section 101(a)(1)(B), is amended by adding at the end the 
        following:
                            ``(vi) The document shall set forth the 
                        criteria for applying section 407(c)(6)(E) to 
                        an adult recipient or minor child head of 
                        household who is the only parent or caretaker 
                        relative for a child or adult dependent for 
                        care.''.

SEC. 110. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUFFICIENCY PLAN 
              REQUIREMENTS; OTHER PROHIBITIONS AND REQUIREMENTS.

    (a) Universal Engagement and Family Self-Sufficiency Plan 
Requirements.--
            (1) Modification of state plan requirements.--Section 
        402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is amended by striking 
        clauses (ii) and (iii) and inserting the following:
                            ``(ii) Require a parent or caretaker 
                        receiving assistance under the program to 
                        engage in work or alternative self-sufficiency 
                        activities (as defined by the State), 
                        consistent with section 407(e)(2).
                            ``(iii) Require families receiving 
                        assistance under the program to engage in 
                        activities in accordance with family self-
                        sufficiency plans developed pursuant to section 
                        408(b).''.
            (2) Establishment of family self-sufficiency plans.--
                    (A) In general.--Section 408(b) (42 U.S.C. 608(b)) 
                is amended to read as follows:
    ``(b) Family Self-Sufficiency Plans.--
            ``(1) In general.--A State to which a grant is made under 
        section 403 shall--
                    ``(A) make an initial screening and assessment, in 
                the manner deemed appropriate by the State, of the 
                skills, prior work experience, education obtained, work 
                readiness, barriers to work, and employability of each 
                adult or minor child head of household recipient of 
                assistance in the family who--
                            ``(i) has attained age 18; or
                            ``(ii) has not completed high school or 
                        obtained a certificate of high school 
                        equivalency and is not attending secondary 
                        school;
                    ``(B) assess, in the manner deemed appropriate by 
                the State, the work support and other assistance and 
                family support services for which each family receiving 
                assistance is eligible; and
                    ``(C) assess, in the manner deemed appropriate by 
                the State, the well-being of the children in the 
                family, and, where appropriate, activities or resources 
                to improve the well-being of the children.
            ``(2) Contents of plans.--The State shall, in the manner 
        deemed appropriate by the State--
                    ``(A) establish for each family that includes an 
                individual described in paragraph (1)(A), in 
                consultation as the State deems appropriate with the 
                individual, a self-sufficiency plan that--
                            ``(i) specifies activities described in the 
                        State plan submitted pursuant to section 402, 
                        including work activities described in 
                        paragraph (1), (2), (3), (4), (5), (6), (7), 
                        (8), or (12) of section 407(d), as appropriate;
                            ``(ii) is designed to assist the family in 
                        achieving their maximum degree of self-
                        sufficiency, and
                            ``(iii) provides for the ongoing 
                        participation of the individual in the 
                        activities specified in the plan;
                    ``(B) requires, at a minimum, each such individual 
                to participate in activities in accordance with the 
                self-sufficiency plan;
                    ``(C) sets forth the appropriate supportive 
                services the State intends to provide for the family;
                    ``(D) establishes for the family a plan that 
                addresses the issue of child well-being and, when 
                appropriate, adolescent well-being, and that may 
                include services such as domestic violence counseling, 
                mental health referrals, and parenting courses; and
                    ``(E) includes a section designed to assist the 
                family by informing the family, in such manner as 
                deemed appropriate by the State, of the work support 
                and other assistance for which the family may be 
                eligible including (but not limited to)--
                            ``(i) the food stamp program established 
                        under the Food Stamp Act of 1977 (7 U.S.C. 2011 
                        et seq.);
                            ``(ii) the medicaid program funded under 
                        title XIX;
                            ``(iii) the State children's health 
                        insurance program funded under title XXI;
                            ``(iv) Federal or State funded child care, 
                        including child care funded under the Child 
                        Care Development Block Grant Act of 1990 (42 
                        U.S.C. 9858 et seq.) and funds made available 
                        under this title or title XX;
                            ``(v) the earned income tax credit under 
                        section 32 of the Internal Revenue Code of 
                        1986;
                            ``(vi) the low-income home energy 
                        assistance program established under the Low-
                        Income Home Energy Assistance Act of 1981 (42 
                        U.S.C. 8621 et seq.);
                            ``(vii) the special supplemental nutrition 
                        program for women, infants, and children 
                        established under section 17 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786);
                            ``(viii) programs conducted under the 
                        Workforce Investment Act of 1998 (29 U.S.C. 
                        2801 et seq.); and
                            ``(ix) low-income housing assistance 
                        programs.
            ``(3) Review.--
                    ``(A) Regular review.--A State to which a grant is 
                made under section 403 shall--
                            ``(i) monitor the participation of each 
                        adult recipient or minor child head of 
                        household in the activities specified in the 
                        self-sufficiency plan, and regularly review the 
                        progress of the family toward self-sufficiency; 
                        and
                            ``(ii) upon such a review, revise the plan 
                        and activities required under the plan as the 
                        State deems appropriate in consultation with 
                        the family.
                    ``(B) Prior to the imposition of a sanction.--Prior 
                to imposing a sanction against an adult recipient, 
                minor child head of household, or a family for failure 
                to comply with a requirement of the self-sufficiency 
                plan or the State program funded under this part, the 
                State shall, to the extent determined appropriate by 
                the State--
                            ``(i) review the self-sufficiency plan; and
                            ``(ii) make a good faith effort (as defined 
                        by the State) to consult with the family.
            ``(4) State discretion.--A State shall have sole 
        discretion, consistent with section 407, to define and design 
        activities for families for purposes of this subsection, to 
        develop methods for monitoring and reviewing progress pursuant 
        to this subsection, and to make modifications to the plan as 
        the State deems appropriate to assist the individual in 
        increasing their degree of self-sufficiency.
            ``(5) Application to partially-sanctioned families.--The 
        requirements of this subsection shall apply in the case of a 
        family that includes an adult or minor child head of household 
        recipient of assistance who is subject to a partial sanction.
            ``(6) Timing.--The State shall initiate screening and 
        assessment and the establishment of a family self-sufficiency 
        plan in accordance with the requirements of this subsection--
                    ``(A) in the case of a family that, as of the date 
                of enactment of the Personal Responsibility and 
                Individual Development for Everyone Act, is not 
                receiving assistance from the State program funded 
                under this part, not later than the later of--
                            ``(i) 1 year after such date of enactment; 
                        or
                            ``(ii) 60 days after the family first 
                        receives assistance on the basis of the most 
                        recent application for assistance; and
                    ``(B) in the case of a family that, as of such 
                date, is receiving assistance under the State program 
                funded under this part, not later than 1 year after 
                such date of enactment.
            ``(7) Rule of interpretation.--Nothing in this subsection 
        shall preclude a State from--
                    ``(A) requiring participation in work and any other 
                activities the State deems appropriate for helping 
                families achieve self-sufficiency and improving child 
                well-being; or
                    ``(B) using job search or other appropriate job 
                readiness or work activities to assess the 
                employability of individuals and to determine 
                appropriate future engagement activities.''.
                    (B) Penalty for failure to comply with family self-
                sufficiency plan requirements.--
                            (i) In general.--Section 409(a)(3) (42 
                        U.S.C. 609(a)(3)) is amended--
                                    (I) in the paragraph heading, by 
                                inserting ``or comply with family self-
                                sufficiency plan requirements'' after 
                                ``rates'';
                                    (II) in subparagraph (A), by 
                                inserting ``or 408(b)'' after 
                                ``407(a)''; and
                                    (III) by striking subparagraph (C) 
                                and inserting the following:
                    ``(C) Penalty based on severity of failure.--
                            ``(i) Failure to satisfy minimum 
                        participation rate.--If, with respect to fiscal 
                        year 2005 or any fiscal year thereafter, the 
                        Secretary finds that a State has failed or is 
                        failing to substantially comply with the 
                        requirements of section 407(a) for that fiscal 
                        year, the Secretary shall impose reductions 
                        under subparagraph (A) with respect to the 
                        immediately succeeding fiscal year based on the 
                        degree of substantial noncompliance. In 
                        assessing the degree of substantial 
                        noncompliance under section 407(a) for a fiscal 
                        year, the Secretary shall take into account 
                        factors such as--
                                    ``(I) the degree to which the State 
                                missed the minimum participation rate 
                                for that fiscal year;
                                    ``(II) the change in the number of 
                                individuals who are engaged in work in 
                                the State since the prior fiscal year; 
                                and
                                    ``(III) the number of consecutive 
                                fiscal years in which the State failed 
                                to reach the minimum participation 
                                rate.
                            ``(ii) Failure to comply with self-
                        sufficiency plan requirements.--If, with 
                        respect to fiscal year 2005 or any fiscal year 
                        thereafter, the Secretary finds that a State 
                        has failed or is failing to substantially 
                        comply with the requirements of section 408(b) 
                        for that fiscal year, the Secretary shall 
                        impose reductions under subparagraph (A) with 
                        respect to the immediately succeeding fiscal 
                        year based on the degree of substantial 
                        noncompliance. In assessing the degree of 
                        substantial noncompliance under section 408(b), 
                        the Secretary shall take into account factors 
                        such as--
                                    ``(I) the number or percentage of 
                                families for which a self-sufficiency 
                                plan is not established in a timely 
                                fashion for that fiscal year;
                                    ``(II) the duration of the delays 
                                in establishing a self-sufficiency plan 
                                during that fiscal year;
                                    ``(III) whether the failures are 
                                isolated and nonrecurring; and
                                    ``(IV) the existence of systems 
                                designed to ensure that self-
                                sufficiency plans are established for 
                                all families in a timely fashion and 
                                that families' progress under such 
                                plans is monitored.
                            ``(iii) Authority to reduce the penalty.--
                        The Secretary may reduce the penalty that would 
                        otherwise apply under this paragraph if the 
                        substantial noncompliance is due to 
                        circumstances that caused the State to meet the 
                        criteria of subclause (I), (II), or (III) of 
                        section 403(b)(3)(A)(iii) or to satisfy the 
                        applicable duration requirement of section 
                        403(b)(3)(B) during the fiscal year, or if the 
                        noncompliance is due to extraordinary 
                        circumstances such as a natural disaster or 
                        regional recession. The Secretary shall provide 
                        a written report to Congress to justify any 
                        waiver or penalty reduction due to such 
                        extraordinary circumstances.''.
                            (ii) Effective date.--The amendments made 
                        by this subparagraph take effect on October 1, 
                        2004.
            (3) GAO evaluation and report.--Not later than September 
        30, 2005, the Comptroller General of the United States shall 
        submit a report to the Committee on Ways and Means of the House 
        of Representatives and the Committee on Finance of the Senate 
        evaluating the implementation of the universal engagement 
        provisions under 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.), as added by the amendments made by this 
        subsection.
            (4) Rules of Construction.--Nothing in this subsection or 
        the amendments made by this subsection shall be construed--
                    (A) as establishing a private right or cause of 
                action against a State for failure to comply with the 
                requirements imposed under this subsection or the 
                amendments made by this subsection; or
                    (B) as limiting claims that may be available under 
                other Federal or State laws.
    (b) Transitional Compliance for Teen Parents.--
            (1) In general.--Section 408(a)(5) (42 U.S.C. 608(a)(5)) is 
        amended--
                    (A) in subparagraph (A)(i), by striking 
                ``subparagraph (B)'' and inserting ``subparagraphs (B) 
                and (C)''; and
                    (B) by adding at the end the following:
                    ``(C) Authority to provide temporary assistance.--A 
                State may use any part of a grant made under section 
                403 to provide assistance to an individual described in 
                clause (ii) of subparagraph (A) who would otherwise be 
                prohibited from receiving such assistance under clause 
                (i) of that subparagraph, subparagraph (B), or section 
                408(a)(4) for not more than a single 60-day period in 
                order to assist the individual in meeting the 
                requirement of clause (i) of subparagraph (A), 
                subparagraph (B), or section 408(a)(4) for receipt of 
                such assistance.''.
            (2) Inclusion of transitional living youth projects as a 
        form of adult-supervised setting.--Clause (i) of section 
        408(a)(5)(A) (42 U.S.C. 608(a)(5)(A)(i)), as amended by 
        paragraph (1), is amended--
                    (A) by striking ``do not reside in a place of'' and 
                inserting ``do not reside in a--
                                    ``(I) place of'';
                    (B) by striking the period and inserting ``; or''; 
                and
                    (C) by adding at the end the following:
                                    ``(II) transitional living youth 
                                project funded under a grant made under 
                                section 321 of the Runaway and Homeless 
                                Youth Act (42 U.S.C. 5714-1).''.

SEC. 111. PENALTIES.

    Section 409(a)(7) (42 U.S.C. 609(a)(7)), as amended by section 3(g) 
of the Welfare Reform Extension Act of 2003 (Public Law 108-040, 117 
Stat. 837) is amended--
            (1) in subparagraph (A) by striking ``fiscal year 1998, 
        1999, 2000, 2001, 2002, 2003, or 2004'' and inserting ``fiscal 
        year 2004, 2005, 2006, 2007, 2008, or 2009''; and
            (2) in subparagraph (B)(ii)--
                    (A) by inserting ``preceding'' before ``fiscal 
                year''; and
                    (B) by striking ``for fiscal years 1997 through 
                2003,''.

SEC. 112. DATA COLLECTION AND REPORTING.

    (a) Contents of Report.--Section 411(a)(1)(A) (42 U.S.C. 
611(a)(1)(A)) is amended--
            (1) in the matter preceding clause (i), by inserting ``and 
        on families receiving assistance under State programs funded 
        with other qualified State expenditures (as defined in section 
        409(a)(7)(B)(i))'' before the colon;
            (2) in clause (vii), by inserting ``and minor parent'' 
        after ``of each adult'';
            (3) in clause (viii), by striking ``and educational 
        level'';
            (4) in clause (ix), by striking ``, and if the latter 2, 
        the amount received'';
            (5) in clause (x)--
                    (A) by striking ``each type of''; and
                    (B) by inserting before the period ``and, if 
                applicable, the reason for receipt of the assistance 
                for a total of more than 60 months'';
            (6) in clause (xi), by striking subclauses (I) through 
        (VII) and inserting the following:
                                    ``(I) Subsidized private sector 
                                employment.
                                    ``(II) Unsubsidized employment.
                                    ``(III) Public sector employment, 
                                supervised work experience, or 
                                supervised community service.
                                    ``(IV) On-the-job training.
                                    ``(V) Job search and placement.
                                    ``(VI) Training.
                                    ``(VII) Education.
                                    ``(VIII) Other activities directed 
                                at the purposes of this part, as 
                                specified in the State plan submitted 
                                pursuant to section 402.'';
            (7) in clause (xii), by inserting ``and progress toward 
        universal engagement'' after ``participation rates'';
            (8) in clause (xiii), by striking ``type and'' before 
        ``amount of assistance'';
            (9) in clause (xvi), by striking subclause (II) and 
        redesignating subclauses (III) through (V) as subclauses (II) 
        through (IV), respectively; and
            (10) by adding at the end the following:
                            ``(xviii) The date the family first 
                        received assistance from the State program on 
                        the basis of the most recent application for 
                        such assistance.
                            ``(xix) Whether a self-sufficiency plan is 
                        established for the family in accordance with 
                        section 408(b).
                            ``(xx) With respect to any child in the 
                        family, the marital status of the parents at 
                        the birth of the child, and if the parents were 
                        not then married, whether the paternity of the 
                        child has been established.''.
    (b) Use of Samples.--Section 411(a)(1)(B) (42 U.S.C. 611(a)(1)(B)) 
is amended--
            (1) in clause (i)--
                    (A) by striking ``a sample'' and inserting 
                ``samples''; and
                    (B) by inserting before the period ``, except that 
                the Secretary may designate core data elements that 
                must be reported on all families''; and
            (2) in clause (ii), by striking ``funded under this part'' 
        and inserting ``described in subparagraph (A)''.
    (c) Report on Families That Become Ineligible To Receive 
Assistance.--Section 411(a) (42 U.S.C. 611(a)) is amended--
            (1) by striking paragraph (5);
            (2) by redesignating paragraph (6) as paragraph (5); and
            (3) by inserting after paragraph (5) (as so redesignated) 
        the following:
            ``(6) Report on families that become ineligible to receive 
        assistance.--The report required by paragraph (1) for a fiscal 
        quarter shall include for each month in the quarter the number 
        of families and total number of individuals that, during the 
        month, became ineligible to receive assistance under the State 
        program funded under this part (broken down by the number of 
        families that become so ineligible due to earnings, changes in 
        family composition that result in increased earnings, 
        sanctions, time limits, or other specified reasons).''.
    (d) Regulations.--Section 411(a)(7) (42 U.S.C. 611(a)(7)) is 
amended--
            (1) by inserting ``and to collect the necessary data'' 
        before ``with respect to which reports'';
            (2) by striking ``subsection'' and inserting ``section''; 
        and
            (3) by striking ``in defining the data elements'' and all 
        that follows and inserting ``, the National Governors' 
        Association, the American Public Human Services Association, 
        the National Conference of State Legislatures, and others in 
        defining the data elements.''.
    (e) Additional Reports by States.--Section 411 (42 U.S.C. 611) is 
amended--
            (1) by redesignating subsection (b) as subsection (e); and
            (2) by inserting after subsection (a) the following:
    ``(b) Annual Reports on Program Characteristics.--Not later than 90 
days after the end of fiscal year 2004 and each succeeding fiscal year, 
each eligible State shall submit to the Secretary a report on the 
characteristics of the State program funded under this part and other 
State programs funded with qualified State expenditures (as defined in 
section 409(a)(7)(B)(i)). The report shall include, with respect to 
each such program, the program name, a description of program 
activities, the program purpose, the program eligibility criteria, the 
sources of program funding, the number of program beneficiaries, 
sanction policies, and any program work requirements.
    ``(c) Monthly Reports on Caseload.--Not later than 3 months after 
the end of each calendar month that begins 1 year or more after the 
date of enactment of this subsection, each eligible State shall submit 
to the Secretary a report on the number of families and total number of 
individuals receiving assistance in the calendar month under the State 
program funded under this part and under other State programs funded 
with qualified State expenditures (as defined in section 
409(a)(7)(B)(i)).
    ``(d) Annual Report on Performance Improvement.--Beginning with 
fiscal year 2005, not later than January 1 of each fiscal year, each 
eligible State shall submit to the Secretary a report on achievement 
and improvement during the preceding fiscal year under the performance 
goals and measures under the State program funded under this part with 
respect to each of the matters described in section 402(a)(1)(A)(v).''.
    (f) Annual Reports to Congress by the Secretary.--Section 411(e) 
(42 U.S.C. 611(e)), as so redesignated by subsection (e) of this 
section, is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``and each fiscal year thereafter'' and inserting ``and not 
        later than July 1 of each fiscal year thereafter'';
            (2) in paragraph (2), by striking ``families applying for 
        assistance,'' and by striking the last comma; and
            (3) in paragraph (3), by inserting ``and other programs 
        funded with qualified State expenditures (as defined in section 
        409(a)(7)(B)(i))'' before the semicolon.

SEC. 113. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

    (a) Funding for Tribal TANF programs.--
            (1) Reauthorization of tribal family assistance grants.--
        Section 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)), as amended by 
        section 3(h) of the Welfare Reform Extension Act of 2003, is 
        amended by striking ``1997, 1998, 1999, 2000, 2001, 2002, and 
        2003'' and inserting ``2004 through 2008''.
            (2) Grants for indian tribes that received jobs funds.--
        Section 412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)), as so amended, 
        is amended by striking ``1997, 1998, 1999, 2000, 2001, 2002, 
        and 2003'' and inserting ``2004 through 2008''.
    (b) Tribal TANF Improvement Fund.--Section 412(a) (42 U.S.C. 
612(a)) is amended by adding at the end the following:
            ``(4) Tribal tanf improvement fund.--
                    ``(A) Establishment.--The Secretary shall establish 
                a fund for purposes of carrying out any of the 
                following activities:
                            ``(i) Providing technical assistance to 
                        Indian tribes considering applying to carry 
                        out, or that are carrying out, a tribal family 
                        assistance plan under this section in order to 
                        help such tribes establish and operate strong 
                        and effective tribal family assistance plans 
                        under this section that will allow families 
                        receiving assistance under such plans achieve 
                        the highest measure of self-sufficiency.
                            ``(ii) Awarding competitive grants directly 
                        to Indian tribes carrying out a tribal family 
                        assistance plan under this section for purposes 
                        of conducting programs and activities that 
                        would substantially improve the operation and 
                        effectiveness of such plans and the ability of 
                        such tribes to achieve the purposes of the 
                        program under this part as described in section 
                        401(a).
                            ``(iii) Awarding competitive grants 
                        directly to Indian tribes carrying out a tribal 
                        family assistance plan under this section to 
                        support tribal economic development activities 
                        that would significantly assist families 
                        receiving assistance under the State program 
                        funded under this part or a tribal family 
                        assistance plan obtain employment and achieve 
                        self-sufficiency.
                            ``(iv) Conducting, directly or through 
                        grants, contracts, or interagency agreements, 
                        research and development to improve knowledge 
                        about tribal family assistance programs 
                        conducted under this section and challenges 
                        faced by such programs in order to improve the 
                        effectiveness of such programs.
                    ``(B) Authorization of appropriations.--There are 
                authorized to be appropriated to the Secretary to carry 
                out this paragraph, $100,000,000 for each of fiscal 
                years 2004 through 2008.''.

SEC. 114. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

    (a) Secretary's Fund for Research, Demonstrations, and Technical 
Assistance.--Section 413 (42 U.S.C. 613), as amended by section 101(d), 
is further amended by adding at the end the following:
    ``(l) Funding for Research, Demonstrations, and Technical 
Assistance.--
            ``(1) Appropriation.--
                    ``(A) In general.--Out of any money in the Treasury 
                of the United States not otherwise appropriated, there 
                are appropriated $100,000,000 for each of fiscal years 
                2004 through 2008, which shall remain available to the 
                Secretary until expended.
                    ``(B) Use of funds.--
                            ``(i) In general.--Funds appropriated under 
                        subparagraph (A) shall be used for the purpose 
                        of--
                                    ``(I) conducting or supporting 
                                research and demonstration projects by 
                                public or private entities; or
                                    ``(II) providing technical 
                                assistance in connection with a purpose 
                                of the program funded under this part, 
                                as described in section 401(a), to 
                                States, Indian tribal organizations, 
                                sub-State entities, and such other 
                                entities as the Secretary may specify.
                            ``(ii) Requirement.--Not less than 80 
                        percent of the funds appropriated under 
                        subparagraph (A) for a fiscal year shall be 
                        expended for the purpose of conducting or 
                        supporting research and demonstration projects, 
                        or for providing technical assistance, in 
                        connection with activities described in section 
                        403(a)(2)(B). Funds appropriated under 
                        subparagraph (A) and expended in accordance 
                        with this clause shall be in addition to any 
                        other funds made available under this part for 
                        activities described in section 403(a)(2)(B).
            ``(2) Secretary's authority.--The Secretary may conduct 
        activities authorized by this subsection directly or through 
        grants, contracts, or interagency agreements with public or 
        private entities.
            ``(3) Requirement for use of funds.--The Secretary shall 
        not pay any funds appropriated under paragraph (1)(A) to an 
        entity for the purpose of conducting or supporting research and 
        demonstration projects involving activities described in 
        section 403(a)(2)(B) unless the entity complies with the 
        requirements of section 403(a)(2)(E).''.
    (b) Funding of Studies and Demonstrations.--Section 413(h)(1) (42 
U.S.C. 613(h)(1)) is amended in the matter preceding subparagraph (A) 
by striking ``1997 through 2002'' and inserting ``2004 through 2008''.
    (c) Program Coordination Demonstration Projects.--
            (1) Purpose.--The purpose of this subsection is to 
        establish a program of demonstration projects in a State or 
        portion of a State to coordinate assistance provided under 
        qualified programs for the purpose of supporting working 
        individuals and families, helping families escape welfare 
        dependency, promoting child well-being, or helping build 
        stronger families, using innovative approaches to strengthen 
        service systems and provide more coordinated and effective 
        service delivery.
            (2) Definitions.--In this subsection:
                    (A) Qualified program.--The term ``qualified 
                program'' means--
                            (i) a program under part A of title IV of 
                        the Social Security Act (42 U.S.C. 601 et 
                        seq.);
                            (ii) the program under title XX of the 
                        Social Security Act (42 U.S.C. 1397 et seq.); 
                        and
                            (iii) child care assistance funded under 
                        section 418 of the Social Security Act (42 
                        U.S.C. 618).
                    (B) Secretary.--The term ``Secretary'' means the 
                Secretary of Health and Human Services.
            (3) Application requirements.--The head of a State entity 
        or of a sub-State entity administering 2 or more qualified 
        programs proposed to be included in a demonstration project 
        under this subsection shall (or, if the project is proposed to 
        include qualified programs administered by 2 or more such 
        entities, the heads of the administering entities (each of whom 
        shall be considered an applicant for purposes of this 
        subsection) shall jointly) submit to the Secretary an 
        application that contains the following:
                    (A) Programs included.--A statement identifying 
                each qualified program to be included in the project, 
                and describing how the purposes of each such program 
                will be achieved by the project.
                    (B) Population served.--A statement identifying the 
                population to be served by the project and specifying 
                the eligibility criteria to be used.
                    (C) Description and justification.--A detailed 
                description of the project, including--
                            (i) a description of how the project is 
                        expected to improve or enhance achievement of 
                        the purposes of the programs to be included in 
                        the project, from the standpoint of quality, of 
                        cost-effectiveness, or of both; and
                            (ii) a description of the performance 
                        objectives for the project, including any 
                        proposed modifications to the performance 
                        measures and reporting requirements used in the 
                        programs.
                    (D) Waivers requested.--A description of the 
                statutory and regulatory requirements with respect to 
                which a waiver is requested in order to carry out the 
                project, and a justification of the need for each such 
                waiver.
                    (E) Cost neutrality.--Such information and 
                assurances as necessary to establish to the 
                satisfaction of the Secretary, in consultation with the 
                Director of the Office of Management and Budget, that 
                the proposed project is reasonably expected to meet the 
                applicable cost neutrality requirements of paragraph 
                (4)(E).
                    (F) Evaluation and reports.--An assurance that the 
                applicant will--
                            (i) obtain an evaluation by an independent 
                        contractor of the effectiveness of the project 
                        using an evaluation design that, to the maximum 
                        extent feasible, includes random assignment of 
                        clients (or entities serving such clients) to 
                        service delivery and control groups; and
                            (ii) make interim and final reports to the 
                        Secretary, at such times and in such manner as 
                        the Secretary may require.
                    (G) Other information and assurances.--Such other 
                information and assurances as the Secretary may 
                require.
            (4) Approval of applications.--
                    (A) In general.--The Secretary with respect to a 
                qualified program that is identified in an application 
                submitted pursuant to subsection (c) may approve the 
                application and, except as provided in subparagraph 
                (B), waive any requirement applicable to the program, 
                to the extent consistent with this subsection and 
                necessary and appropriate for the conduct of the 
                demonstration project proposed in the application, if 
                the Secretary determines that the project--
                            (i) has a reasonable likelihood of 
                        achieving the objectives of the programs to be 
                        included in the project;
                            (ii) may reasonably be expected to meet the 
                        applicable cost neutrality requirements of 
                        subparagraph (E), as determined by the Director 
                        of the Office of Management and Budget;
                            (iii) includes the coordination of 2 or 
                        more qualified programs; and
                            (iv) provides for an independent evaluation 
                        that includes random assignment to the maximum 
                        extent feasible, as described in paragraph 
                        (3)(F), and which the Secretary determines to 
                        be appropriate for assessing the effectiveness 
                        of the project.
                    (B) Provisions excluded from waiver authority.--A 
                waiver shall not be granted under subparagraph (A)--
                            (i) with respect to any provision of law 
                        relating to--
                                    (I) civil rights or prohibition of 
                                discrimination;
                                    (II) purposes or goals of any 
                                program;
                                    (III) maintenance of effort 
                                requirements;
                                    (IV) health or safety;
                                    (V) labor standards under the Fair 
                                Labor Standards Act of 1938; or
                                    (VI) environmental protection;
                            (ii) in the case of child care assistance 
                        funded under section 418 of the Social Security 
                        Act (42 U.S.C. 618), with respect to the 
                        requirement under the first sentence of 
                        subsection (b)(1) of that section that funds 
                        received by a State under that section shall 
                        only be used to provide child care assistance;
                            (iii) with respect to any requirement that 
                        a State pass through to a sub-State entity part 
                        or all of an amount paid to the State;
                            (iv) if the waiver would waive any funding 
                        restriction or limitation provided in an 
                        appropriations Act, or would have the effect of 
                        transferring appropriated funds from 1 
                        appropriations account to another; or
                            (v) except as otherwise provided by 
                        statute, if the waiver would waive any funding 
                        restriction applicable to a program authorized 
                        under an Act which is not an appropriations Act 
                        (but not including program requirements such as 
                        application procedures, performance standards, 
                        reporting requirements, or eligibility 
                        standards), or would have the effect of 
                        transferring funds from a program for which 
                        there is direct spending (as defined in section 
                        250(c)(8) of the Balanced Budget and Emergency 
                        Deficit Control Act of 1985) to another 
                        program.
                    (C) 10 state limitation.--The Director of the 
                Office of Management and Budget shall establish a 
                procedure for ensuring that not more than 10 States 
                (including any portion of a State) conduct a 
                demonstration project under this subsection.
                    (D) Agreement of secretary required.--
                            (i) In general.--An applicant may not 
                        conduct a demonstration project under this 
                        subsection unless the Secretary, with respect 
                        to each qualified program proposed to be 
                        included in the project, has approved the 
                        application to conduct the project.
                            (ii) Agreement with respect to funding and 
                        implementation.--Before approving an 
                        application to conduct a demonstration project 
                        under this subsection, the Secretary shall have 
                        in place an agreement with the applicant with 
                        respect to the payment of funds and 
                        responsibilities required of the Secretary with 
                        respect to the project.
                    (E) Cost-neutrality requirement.--
                            (i) General rule.--Notwithstanding any 
                        other provision of law (except as provided in 
                        clause (ii)), the total of the amounts that may 
                        be paid by the Federal Government for a fiscal 
                        year with respect to the programs in the State 
                        in which an entity conducting a demonstration 
                        project under this subsection is located that 
                        are affected by the project shall not exceed 
                        the estimated total amount that the Federal 
                        Government would have paid for the fiscal year 
                        with respect to the programs if the project had 
                        not been conducted, as determined by the 
                        Director of the Office of Management and 
                        Budget.
                            (ii) Special rule.--If an applicant submits 
                        to the Director of the Office of Management and 
                        Budget a request to apply the rules of this 
                        clause to the programs in the State in which 
                        the applicant is located that are affected by a 
                        demonstration project proposed in an 
                        application submitted by the applicant pursuant 
                        to this section, during such period of not more 
                        than 5 consecutive fiscal years in which the 
                        project is in effect, and the Director 
                        determines, on the basis of supporting 
                        information provided by the applicant, to grant 
                        the request, then, notwithstanding any other 
                        provision of law, the total of the amounts that 
                        may be paid by the Federal Government for the 
                        period with respect to the programs shall not 
                        exceed the estimated total amount that the 
                        Federal Government would have paid for the 
                        period with respect to the programs if the 
                        project had not been conducted.
                    (F) 90-day approval deadline.--
                            (i) In general.--If the Secretary receives 
                        an application to conduct a demonstration 
                        project under this subsection and does not 
                        disapprove the application within 90 days after 
                        the receipt, then, subject to the 10 State 
                        limitation under paragraph (3)--
                                    (I) the Secretary is deemed to have 
                                approved the application for such 
                                period as is requested in the 
                                application, except to the extent 
                                inconsistent with paragraph (5); and
                                    (II) any waiver requested in the 
                                application which applies to a 
                                qualified program that is identified in 
                                the application and is administered by 
                                the Secretary is deemed to be granted, 
                                except to the extent inconsistent with 
                                subparagraph (B) or (E) of this 
                                paragraph.
                            (ii) Deadline extended if additional 
                        information is sought.--The 90-day period 
                        referred to in clause (i) shall not include any 
                        period that begins with the date the Secretary 
                        requests the applicant to provide additional 
                        information with respect to the application and 
                        ends with the date the additional information 
                        is provided.
            (5) Duration of projects.--A demonstration project under 
        this subsection may be approved for a term of not more than 5 
        years.
            (6) Reports to congress.--
                    (A) Report on disposition of applications.--Within 
                90 days after the date the Secretary receives an 
                application submitted pursuant to this subsection, the 
                Secretary shall submit to the Committee on Finance of 
                the Senate and the Committee on Ways and Means of the 
                House of Representatives notice of the receipt, a 
                description of the decision of the Secretary with 
                respect to the application, and the reasons for 
                approving or disapproving the application.
                    (B) Reports on projects.--The Secretary shall 
                provide annually to Congress a report concerning 
                demonstration projects approved under this subsection, 
                including--
                            (i) the projects approved for each 
                        applicant;
                            (ii) the number of waivers granted under 
                        this subsection, and the specific statutory 
                        provisions waived;
                            (iii) how well each project for which a 
                        waiver is granted is improving or enhancing 
                        program achievement from the standpoint of 
                        quality, cost-effectiveness, or both;
                            (iv) how well each project for which a 
                        waiver is granted is meeting the performance 
                        objectives specified in paragraph (3)(C)(ii);
                            (v) how each project for which a waiver is 
                        granted is conforming with the cost-neutrality 
                        requirements of paragraph (4)(E); and
                            (vi) to the extent the Secretary deems 
                        appropriate, recommendations for modification 
                        of programs based on outcomes of the projects.

SEC. 115. STUDY BY THE CENSUS BUREAU.

    (a) In General.--Section 414(a) (42 U.S.C. 614(a)) is amended to 
read as follows:
    ``(a) In General.--The Bureau of the Census shall implement or 
enhance a longitudinal survey of program participation, developed in 
consultation with the Secretary and made available to interested 
parties, to allow for the assessment of the outcomes of continued 
welfare reform on the economic and child well-being of low-income 
families with children, including those who received assistance or 
services from a State program funded under this part, and, to the 
extent possible, shall provide State representative samples. The 
content of the survey should include such information as may be 
necessary to examine the issues of out-of-wedlock childbearing, 
marriage, welfare dependency and compliance with work requirements, the 
beginning and ending of spells of assistance, work, earnings and 
employment stability, and the well-being of children.''.
    (b) Reports on the Well-Being of Children and Families.--Section 
414 (42 U.S.C. 614), as amended by subsection (a), is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Reports on the Well-Being of Children and Families.--
            ``(1) In general.--Not later than 24 months after the date 
        of enactment of the Personal Responsibility and Individual 
        Development for Everyone Act, the Secretary of Commerce shall 
        prepare and 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 well-being of children and families 
        using data collected under subsection (a).
            ``(2) Second report.--Not later than 60 months after such 
        date of enactment, the Secretary of Commerce shall submit a 
        second report to the Committee on Ways and Means of the House 
        of Representatives and the Committee on Finance of the Senate 
        on the well-being of children and families using data collected 
        under subsection (a).
            ``(3) Inclusion of comparable measures.--Where comparable 
        measures for data collected under subsection (a) exist in 
        surveys previously administered by the Bureau of the Census, 
        appropriate comparisons shall be made and included in each 
        report required under this subsection on the well-being of 
        children and families to assess changes in such measures.''.
    (c) Appropriation.--Section 414(c) (42 U.S.C. 614(c)), as 
redesignated by subsection (b)(1) and as amended by section 3(i) of the 
Welfare Reform Extension Act of 2003 (Public Law 108-040, 117 Stat. 
837), is amended by striking ``1996,'' and all that follows through the 
period and inserting ``2004 through 2008 for payment to the Bureau of 
the Census to carry out this section. Funds appropriated under this 
subsection for a fiscal year shall remain available through fiscal year 
2008 to carry out this section.''.

SEC. 116. FUNDING FOR CHILD CARE.

    (a) Increase in Mandatory Funding.--Section 418(a)(3) (42 U.S.C. 
618(a)(3)), as amended by section 4 of the Welfare Reform Extension Act 
of 2003 (Public Law 108-040, 117 Stat. 837), 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 ``; and''; and
            (3) by adding at the end the following:
                    ``(G) $2,917,000,000 for each of fiscal years 2004 
                through 2008.''.
    (b) Inclusion of Commonwealth of Puerto Rico in Reservation of 
Child Care Funds.--
            (1) In general.--Section 418(a)(4) (42 U.S.C. 618(a)(4)) is 
        amended--
                    (A) in the paragraph heading, by striking ``Indian 
                tribes'' and inserting ``Amounts reserved'';
                    (B) by striking ``The Secretary'' and inserting the 
                following:
                    ``(A) Indian tribes.--The Secretary''; and
                    (C) by adding at the end the following:
                    ``(B) Puerto rico.--The Secretary shall reserve 
                $10,000,000 of the amount appropriated under paragraph 
                (3) for each fiscal year for payments to the 
                Commonwealth of Puerto Rico for each such fiscal year 
                for the purpose of providing child care assistance.''.
            (2) Conforming amendment.--Section 1108(a)(2) (42 U.S.C. 
        1308(a)(2)), as amended by section 108(b)(3), is amended by 
        striking ``or 413(f)'' and inserting ``413(f), or 
        418(a)(4)(B)''.

SEC. 117. DEFINITIONS.

    (a) In General.--Section 419 (42 U.S.C. 619) is amended by adding 
at the end the following:
            ``(6) Assistance.--
                    ``(A) In general.--The term `assistance' means 
                payment, by cash, voucher, or other means, to or for an 
                individual or family for the purpose of meeting a 
                subsistence need of the individual or family (including 
                food, clothing, shelter, and related items, but not 
                including costs of transportation or child care).
                    ``(B) Exception.--The term `assistance' does not 
                include a payment described in subparagraph (A) to or 
                for an individual or family on a short-term, 
                nonrecurring basis (as defined by the State in 
                accordance with regulations prescribed by the 
                Secretary).''.
    (b) Conforming Amendments.--
            (1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by 
        striking ``assistance'' and inserting ``aid''.
            (2) Section 404(f) (42 U.S.C. 604(f)) is amended by 
        striking ``assistance'' and inserting ``benefits or services''.
            (3) Section 408(a)(5)(B)(i) (42 U.S.C. 608(a)(5)(B)(i)) is 
        amended in the heading by striking ``assistance'' and inserting 
        ``aid''.
            (4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is amended by 
        striking ``assistance'' and inserting ``aid''.
            (5) Section 5(g)(2)(D) of the Food Stamp Act of 1977 (7 
        U.S.C. 2014(g)(2)(D)) is amended--
                    (A) by striking ``If the vehicle allowance'' and 
                inserting the following:
                            ``(i) In general.--If the vehicle 
                        allowance''; and
                    (B) by adding at the end the following:
                            ``(ii) Definition of assistance.--In clause 
                        (i), the term `assistance' shall have the 
                        meaning given such term in section 260.31 of 
                        title 45 of the Code of Federal Regulations, as 
                        in effect on June 1, 2002.''.

SEC. 118. RESPONSIBLE FATHERHOOD PROGRAM.

    (a) Responsible Fatherhood Program.--
            (1) Findings.--Congress makes the following findings:
                    (A) Nearly 24,000,000 children in the United 
                States, or 34 percent of all such children, live apart 
                from their biological father.
                    (B) Sixty percent of couples who divorce have at 
                least 1 child.
                    (C) The number of children living with only a 
                mother increased from just over 5,000,000 in 1960 to 
                17,000,000 in 1999, and between 1981 and 1991 the 
                percentage of children living with only 1 parent 
                increased from 19 percent to 25 percent.
                    (D) 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.
                    (E) The most important factor in a child's 
                upbringing is whether the child is brought up in a 
                loving, healthy, supportive environment.
                    (F) Children who live without contact with their 
                biological father are, in comparison to children who 
                have such contact--
                            (i) 5 times more likely to live in poverty;
                            (ii) more likely to bring weapons and drugs 
                        into the classroom;
                            (iii) twice as likely to commit crime;
                            (iv) twice as likely to drop out of school;
                            (v) more likely to commit suicide;
                            (vi) more than twice as likely to abuse 
                        alcohol or drugs; and
                            (vii) more likely to become pregnant as 
                        teenagers.
                    (G) Violent criminals are overwhelmingly males who 
                grew up without fathers.
                    (H) 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.
                    (I) 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.
                    (J) 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.
                    (K) Fatherhood programs should promote and provide 
                support services for--
                            (i) loving and healthy relationships 
                        between parents and children; and
                            (ii) cooperative parenting.
                    (L) There is a social need to reconnect children 
                and fathers.
                    (M) The promotion of responsible fatherhood and 
                encouragement of healthy 2-parent married families 
                should not--
                            (i) denigrate the standing or parenting 
                        efforts of single mothers or other caregivers;
                            (ii) lessen the protection of children from 
                        abusive parents; or
                            (iii) 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.
                    (N) The promotion of responsible fatherhood must 
                always recognize and promote the values of nonviolence.
                    (O) 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.
                    (P) 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.
            (2) Fatherhood program.--Title I of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (Public Law 104-193) is amended by adding at the end the 
        following:

``SEC. 117. FATHERHOOD PROGRAM.

    ``(a) In General.--Title IV (42 U.S.C. 601-679b) is amended by 
inserting after part B the following:

               ```PART C--RESPONSIBLE FATHERHOOD PROGRAM

 ```SEC. 441. RESPONSIBLE FATHERHOOD GRANTS.

    ```(a) Grants to States To Conduct Demonstration Programs.--
            ```(1) Authority to award grants.--
                    ```(A) In general.--The Secretary shall award 
                grants to up to 10 eligible States to conduct 
                demonstration programs to carry out the purposes 
                described in paragraph (2).
                    ```(B) Eligible state.--For purposes of this 
                subsection, an eligible State is a State that submits 
                to the Secretary the following:
                            ```(i) Application.--An application for a 
                        grant under this subsection, at such time, in 
                        such manner, and containing such information as 
                        the Secretary may require.
                            ```(ii) State plan.--A State plan that 
                        includes the following:
                                    ```(I) Project description.--A 
                                description of the programs or 
                                activities the State will fund under 
                                the grant, including a good faith 
                                estimate of the number and 
                                characteristics of clients to be served 
                                under such projects and how the State 
                                intends to achieve at least 2 of the 
                                purposes described in paragraph (2).
                                    ```(II) Coordination efforts.--A 
                                description of how the State will 
                                coordinate and cooperate with State and 
                                local entities responsible for carrying 
                                out other programs that relate to the 
                                purposes intended to be achieved under 
                                the demonstration program, including as 
                                appropriate, entities responsible for 
                                carrying out jobs programs and programs 
                                serving children and families.
                                    ```(III) Records, reports, and 
                                audits.--An agreement to maintain such 
                                records, submit such reports, and 
                                cooperate with such reviews and audits 
                                as the Secretary finds necessary for 
                                purposes of oversight of the 
                                demonstration program.
                            ```(iii) Certifications.--The following 
                        certifications from the chief executive officer 
                        of the State:
                                    ```(I) A certification that the 
                                State will use funds provided under the 
                                grant to promote at least 2 of the 
                                purposes described in paragraph (2).
                                    ```(II) A certification that the 
                                State will return any unused funds to 
                                the Secretary in accordance with the 
                                reconciliation process under paragraph 
                                (5).
                                    ```(III) A certification that the 
                                funds provided under the grant will be 
                                used for programs and activities that 
                                target low-income participants and that 
                                not less than 50 percent of the 
                                participants in each program or 
                                activity funded under the grant shall 
                                be--
                                            ```(aa) 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 part 
                                        A, D, or E of this title, title 
                                        XIX, or the Food Stamp Act of 
                                        1977; or
                                            ```(bb) 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.
                                    ```(IV) A certification that the 
                                State has or will comply with the 
                                requirements of paragraph (4).
                                    ```(V) A certification that funds 
                                provided to a State under this 
                                subsection shall not be used to 
                                supplement or supplant other Federal, 
                                State, or local funds that are used to 
                                support programs or activities that are 
                                related to the purposes described in 
                                paragraph (2).
                    ```(C) Preferences and factors of consideration.--
                In awarding grants under this subsection, the Secretary 
                shall take into consideration the following:
                            ```(i) Diversity of entities used to 
                        conduct programs and activities.--The Secretary 
                        shall, to the extent practicable, achieve a 
                        balance among the eligible States awarded 
                        grants under this subsection with respect to 
                        the size, urban or rural location, and 
                        employment of differing or unique methods of 
                        the entities that the eligible States intend to 
                        use to conduct the programs and activities 
                        funded under the grants.
                            ```(ii) Priority for certain states.--The 
                        Secretary shall give priority to awarding 
                        grants to eligible States that have--
                                    ```(I) demonstrated progress in 
                                achieving at least 1 of the purposes 
                                described in paragraph (2) through 
                                previous State initiatives; or
                                    ```(II) demonstrated need with 
                                respect to reducing the incidence of 
                                out-of-wedlock births or absent fathers 
                                in the State.
            ```(2) Purposes.--The purposes described in this paragraph 
        are the following:
                    ```(A) Promoting responsible fatherhood through 
                marriage promotion.--To promote marriage or sustain 
                marriage through activities such as counseling, 
                mentoring, disseminating information about the benefits 
                of marriage and 2-parent involvement for children, 
                enhancing relationship skills, education regarding how 
                to control aggressive behavior, disseminating 
                information on the causes of domestic violence and 
                child abuse, marriage preparation programs, premarital 
                counseling, marital inventories, skills-based marriage 
                education, financial planning seminars, including 
                improving a family's ability to effectively manage 
                family business affairs by means such as education, 
                counseling, or mentoring on matters related to family 
                finances, including household management, budgeting, 
                banking, and handling of financial transactions and 
                home maintenance, and divorce education and reduction 
                programs, including mediation and counseling.
                    ```(B) Promoting responsible fatherhood through 
                parenting promotion.--To promote responsible parenting 
                through activities such as counseling, mentoring, and 
                mediation, disseminating information about good 
                parenting practices, skills-based parenting education, 
                encouraging child support payments, and other methods.
                    ```(C) Promoting responsible fatherhood through 
                fostering economic stability of fathers.--To foster 
                economic stability by helping fathers improve their 
                economic status by providing activities such 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 programs, referrals to local employment 
                training initiatives, and other methods.
            ```(3) Restriction on use of funds.--No funds provided 
        under this subsection may be used for costs attributable to 
        court proceedings regarding matters of child visitation or 
        custody, or for legislative advocacy.
            ```(4) Requirements for receipt of funds.--A State may not 
        be awarded a grant under this section unless the State, as a 
        condition of receiving funds under such a grant--
                    ```(A) consults with experts in domestic violence 
                or with relevant community domestic violence coalitions 
                in developing such programs or activities; and
                    ```(B) describes in the application for a grant 
                under this section--
                            ```(i) how the programs or activities 
                        proposed to be conducted will address, as 
                        appropriate, issues of domestic violence; and
                            ```(ii) what the State will do, to the 
                        extent relevant, to ensure that participation 
                        in such programs or activities is voluntary, 
                        and to inform potential participants that their 
                        involvement is voluntary.
            ```(5) Reconciliation process.--
                    ```(A) 3-year availability of amounts allotted.--
                Each eligible State that receives a grant under this 
                subsection for a fiscal year shall return to the 
                Secretary any unused portion of the grant for such 
                fiscal year not later than the last day of the second 
                succeeding fiscal year, together with any earnings on 
                such unused portion.
                    ```(B) Procedure for redistribution.--The Secretary 
                shall establish an appropriate procedure for 
                redistributing to eligible States that have expended 
                the entire amount of a grant made under this subsection 
                for a fiscal year any amount that is returned to the 
                Secretary by eligible States under subparagraph (A).
            ```(6) Amount of grants.--
                    ```(A) In general.--Subject to subparagraph (B), 
                the amount of each grant awarded under this subsection 
                shall be an amount sufficient to implement the State 
                plan submitted under paragraph (1)(B)(ii).
                    ```(B) Minimum amounts.--No eligible State shall--
                            ```(i) in the case of the District of 
                        Columbia or 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, 
                        receive a grant for a fiscal year in an amount 
                        that is less than $1,000,000; and
                            ```(ii) 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, receive a grant 
                        for a fiscal year in an amount that is less 
                        than $500,000.
            ```(7) Definition of state.--In this subsection 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.
            ```(8) Authorization of appropriations.--There is 
        authorized to be appropriated $20,000,000 for each of fiscal 
        years 2004 through 2008 for purposes of making grants to 
        eligible States under this subsection.
    ```(b) Grants to Eligible Entities To Conduct Demonstration 
Programs.--
            ```(1) Authority to award grants.--
                    ```(A) In general.--The Secretary shall award 
                grants to eligible entities to conduct demonstration 
                programs to carry out the purposes described in 
                subsection (a)(2).
                    ```(B) Eligible entity.--For purposes of this 
                subsection, an eligible entity is a local government, 
                local public agency, community-based or nonprofit 
                organization, or private entity, including any 
                charitable or faith-based organization, or an Indian 
                tribe (as defined in section 419(4)), that submits to 
                the Secretary the following:
                            ```(i) Application.--An application for a 
                        grant under this subsection, at such time, in 
                        such manner, and containing such information as 
                        the Secretary may require.
                            ```(ii) Project description.--A description 
                        of the programs or activities the entity 
                        intends to carry out with funds provided under 
                        the grant, including a good faith estimate of 
                        the number and characteristics of clients to be 
                        served under such programs or activities and 
                        how the entity intends to achieve at least 2 of 
                        the purposes described in subsection (a)(2).
                            ```(iii) Coordination efforts.--A 
                        description of how the entity will coordinate 
                        and cooperate with State and local entities 
                        responsible for carrying out other programs 
                        that relate to the purposes intended to be 
                        achieved under the demonstration program, 
                        including as appropriate, entities responsible 
                        for carrying out jobs programs and programs 
                        serving children and families.
                            ```(iv) Records, reports, and audits.--An 
                        agreement to maintain such records, submit such 
                        reports, and cooperate with such reviews and 
                        audits as the Secretary finds necessary for 
                        purposes of oversight of the demonstration 
                        program.
                            ```(v) Certifications.--The following 
                        certifications:
                                    ```(I) A certification that the 
                                entity will use funds provided under 
                                the grant to promote at least 2 of the 
                                purposes described in subsection 
                                (a)(2).
                                    ```(II) A certification that the 
                                entity will return any unused funds to 
                                the Secretary in accordance with the 
                                reconciliation process under paragraph 
                                (3).
                                    ```(III) A certification that the 
                                funds provided under the grant will be 
                                used for programs and activities that 
                                target low-income participants and that 
                                not less than 50 percent of the 
                                participants in each program or 
                                activity funded under the grant shall 
                                be--
                                            ```(aa) 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 part 
                                        A, D, or E of this title, title 
                                        XIX, or the Food Stamp Act of 
                                        1977; or
                                            ```(bb) 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.
                                    ```(IV) A certification that the 
                                entity has or will comply with the 
                                requirements of paragraph (3).
                                    ```(V) A certification that funds 
                                provided to an entity under this 
                                subsection shall not be used to 
                                supplement or supplant other Federal, 
                                State, or local funds provided to the 
                                entity that are used to support 
                                programs or activities that are related 
                                to the purposes described in subsection 
                                (a)(2).
                    ```(C) Preferences and factors of consideration.--
                In awarding grants under this subsection, the Secretary 
                shall, to the extent practicable, achieve a balance 
                among the eligible entities awarded grants under this 
                subsection with respect to the size, urban or rural 
                location, and employment of differing or unique methods 
                of the entities.
            ```(2) Restriction on use of funds.--No funds provided 
        under this subsection may be used for costs attributable to 
        court proceedings regarding matters of child visitation or 
        custody, or for legislative advocacy.
            ```(3) Requirements for use of funds.--The Secretary may 
        not award a grant under this subsection to an eligible entity 
        unless the entity, as a condition of receiving funds under such 
        a grant--
                    ```(A) consults with experts in domestic violence 
                or with relevant community domestic violence coalitions 
                in developing the programs or activities to be 
                conducted with such funds awarded under the grant; and
                    ```(B) describes in the application for a grant 
                under this section--
                            ```(i) how the programs or activities 
                        proposed to be conducted will address, as 
                        appropriate, issues of domestic violence; and
                            ```(ii) what the entity will do, to the 
                        extent relevant, to ensure that participation 
                        in such programs or activities is voluntary, 
                        and to inform potential participants that their 
                        involvement is voluntary.
            ```(4) Reconciliation process.--
                    ```(A) 3-year availability of amounts allotted.--
                Each eligible entity that receives a grant under this 
                subsection for a fiscal year shall return to the 
                Secretary any unused portion of the grant for such 
                fiscal year not later than the last day of the second 
                succeeding fiscal year, together with any earnings on 
                such unused portion.
                    ```(B) Procedure for redistribution.--The Secretary 
                shall establish an appropriate procedure for 
                redistributing to eligible entities that have expended 
                the entire amount of a grant made under this subsection 
                for a fiscal year any amount that is returned to the 
                Secretary by eligible entities under subparagraph (A).
            ```(5) Authorization of appropriations.--There is 
        authorized to be appropriated $30,000,000 for each of fiscal 
        years 2004 through 2008 for purposes of making grants to 
        eligible entities under this subsection.

```SEC. 442. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD 
              PROGRAMS.

    ```(a) Media Campaign National Clearinghouse for Responsible 
Fatherhood.--
            ```(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 parents in the life of 
                any child, 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 443.
            ```(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 national, State, or local domestic violence 
        programs.
    ```(b) Nationally Recognized, Nonprofit Fatherhood Promotion 
Organization Described.--The nationally recognized, nonprofit 
fatherhood promotion organization described in this subsection is an 
organization that has at least 4 years of experience in--
            ```(1) designing and disseminating a national public 
        education campaign, as evidenced by the production and 
        successful placement of television, radio, and print public 
        service announcements that promote the importance of 
        responsible fatherhood, a track record of service to Spanish-
        speaking populations and historically underserved or minority 
        populations, the capacity to fulfill requests for information 
        and a proven history of fulfilling such requests, and a 
        mechanism through which the public can request additional 
        information about the campaign; 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 $5,000,000 for each of fiscal years 2004 through 2008 to 
carry out this section.

```SEC. 443. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.

    ```(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 Community 
        Services Block Grant Act (42 U.S.C. 9902(2)), 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 of each of 
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 shall--
            ```(1) use such funds to promote the formation and 
        maintenance of healthy 2-parent married 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 2004 through 
2008, the Secretary shall pay to each State that submits a 
certification under subsection (b), from any funds appropriated under 
subsection (i), 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 healthy 2-
                        parent married families, strengthen fragile 
                        families, and promote responsible fatherhood.
                            ```(ii) Airtime challenge program.--At the 
                        option of the State, to establish an airtime 
                        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 healthy 2-parent married 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 faith-based 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 section, 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, 
        2003.
    ```(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 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 using funds made available 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 current reliable data available) 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 determined by the Secretary based on 
                the most current reliable data available) 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 the District of Columbia or 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 (i); 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 this 
        subsection as are necessary to comply with the requirements of 
        paragraph (2).
    ```(h) Evaluation.--
            ```(1) In general.--The Secretary shall conduct an 
        evaluation of the impact of the media campaigns funded under 
        this section.
            ```(2) Report.--Not later than December 31, 2006, the 
        Secretary shall report to Congress the results of the 
        evaluation under paragraph (1).
            ```(3) Funding.--Of the amount appropriated under 
        subsection (i) for fiscal year 2004, $1,000,000 of such amount 
        shall be transferred and made available for purposes of 
        conducting the evaluation required under this subsection, and 
        shall remain available until expended.
    ```(i) Authorization of Appropriations.--There is authorized to be 
appropriated $20,000,000 for each of fiscal years 2004 through 2008 for 
purposes of making allotments to States under this section.'.
    ``(b) Inapplicability of Effective Date Provisions.--Section 116 
shall not apply to the amendment made by subsection (a) of this 
section.''.
    (b) Clerical Amendment.--Section 2 of such Act is amended in the 
table of contents by inserting after the item relating to section 116 
the following new item:

``Sec. 117. Responsible fatherhood program.''.

SEC. 119. ADDITIONAL GRANTS.

    (a) Grants To Capitalize and Develop Sustainable Social Services.--
Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end the 
following:
            ``(6) Grants to capitalize and develop sustainable social 
        services.--
                    ``(A) Authority to award grants.--The Secretary may 
                award grants to entities for the purpose of 
                capitalizing and developing the role of sustainable 
                social services that are critical to the success of 
                moving recipients of assistance under a State program 
                funded under this part to work.
                    ``(B) Application.--
                            ``(i) In general.--An entity desiring a 
                        grant under this paragraph shall submit an 
                        application to the Secretary, at such time, in 
                        such manner, and, subject to clause (ii), 
                        containing such information as the Secretary 
                        may require.
                            ``(ii) Strategy for generation of 
                        revenue.--An application for a grant under this 
                        paragraph shall include a description of the 
                        capitalization strategy that the entity intends 
                        to follow to develop a program that generates 
                        its own source of ongoing revenue while 
                        assisting recipients of assistance under a 
                        State program funded under this part.
                    ``(C) Use of funds.--
                            ``(i) In general.--Funds made available 
                        under a grant made under this paragraph may be 
                        used for the acquisition, construction, or 
                        renovation of facilities or buildings.
                            ``(ii) General rules governing use of 
                        funds.--The rules of section 404, other than 
                        subsection (b) of that section, shall not apply 
                        to a grant made under this paragraph.
                    ``(D) Evaluation and report.--The Secretary shall, 
                by grant, contract, or interagency agreement, conduct 
                an evaluation of the programs developed with grants 
                awarded under this paragraph and shall submit a report 
                to Congress on the results of such evaluation.
                    ``(E) Authorization of appropriations.--Out of any 
                money in the Treasury of the United States not 
                otherwise appropriated, there is appropriated to the 
                Secretary for the purpose of carrying out this 
                paragraph, $40,000,000 for each of fiscal years 2004 
                through 2008.''.
    (b) Grants for Low-Income Car Ownership Programs.--Section 403(a) 
(42 U.S.C. 603(a)), as amended by subsection (a), is further amended by 
adding at the end the following:
            ``(7) Grants for low-income car ownership programs.--
                    ``(A) Purposes.--The purposes of this paragraph are 
                to--
                            ``(i) assist low-income families with 
                        children obtain dependable, affordable 
                        automobiles to improve their employment 
                        opportunities and access to training; and
                            ``(ii) provide incentives to States, Indian 
                        tribes, localities, and nonprofit entities to 
                        develop and administer programs that provide 
                        assistance with automobile ownership for low-
                        income families.
                    ``(B) Definitions.--In this paragraph:
                            ``(i) Locality.--The term `locality' means 
                        a municipality that does not administer a State 
                        program funded under this part.
                            ``(ii) Low-income family with children.--
                        The term `low-income family with children' 
                        means a household that is eligible for benefits 
                        or services funded 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) Nonprofit entity.--The term 
                        `nonprofit entity' means a school, local 
                        agency, organization, or institution owned and 
                        operated by 1 or more nonprofit corporations or 
                        associations, no part of the net earnings of 
                        which inures, or may lawfully inure, to the 
                        benefit of any private shareholder or 
                        individual.
                    ``(C) Authority to award grants.--The Secretary may 
                award grants to States, counties, localities, Indian 
                tribes, and nonprofit entities to promote improving 
                access to dependable, affordable automobiles by low-
                income families with children.
                    ``(D) Grant approval criteria.--The Secretary shall 
                establish criteria for approval of an application for a 
                grant under this paragraph that include consideration 
                of--
                            ``(i) the extent to which the proposal, if 
                        funded, is likely to improve access to training 
                        and employment opportunities and child care 
                        services by low-income families with children 
                        by means of car ownership;
                            ``(ii) the level of innovation in the 
                        applicant's grant proposal; and
                            ``(iii) any partnerships between the public 
                        and private sector in the applicant's grant 
                        proposal.
                    ``(E) Use of funds.--
                            ``(i) In general.--A grant awarded under 
                        this paragraph shall be used to administer 
                        programs that assist low-income families with 
                        children with dependable automobile ownership, 
                        and maintenance of, or insurance for, the 
                        purchased automobile.
                            ``(ii) Supplement not supplant.--Funds 
                        provided to a State, Indian tribe, county, or 
                        locality under a grant awarded under this 
                        paragraph shall be used to supplement and not 
                        supplant other State, county, or local public 
                        funds expended for car ownership programs.
                            ``(iii) General rules governing use of 
                        funds.--The rules of section 404, other than 
                        subsection (b) of that section, shall not apply 
                        to a grant made under this paragraph.
                    ``(F) Application.--Each applicant desiring a grant 
                under this paragraph shall submit an application to the 
                Secretary at such time, in such manner, and accompanied 
                by such information as the Secretary may reasonably 
                require.
                    ``(G) Reversion of funds.--Any funds not expended 
                by a grantee within 3 years after the date the grant is 
                awarded under this paragraph shall be available for 
                redistribution among other grantees in such manner and 
                amount as the Secretary may determine, unless the 
                Secretary extends by regulation the time period to 
                expend such funds.
                    ``(H) Limitation on administrative costs of the 
                secretary.--Not more than an amount equal to 5 percent 
                of the funds appropriated to make grants under this 
                paragraph for a fiscal year shall be expended for 
                administrative costs of the Secretary in carrying out 
                this paragraph.
                    ``(I) Evaluation.--The Secretary shall, by grant, 
                contract, or interagency agreement, conduct an 
                evaluation of the programs administered with grants 
                awarded under this paragraph.
                    ``(J) Authorization of appropriations.--There is 
                authorized to be appropriated to the Secretary to make 
                grants under this paragraph, $25,000,000 for each of 
                fiscal years 2004 through 2008.''.

SEC. 120. TECHNICAL CORRECTIONS.

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

                     TITLE II--ABSTINENCE EDUCATION

SEC. 201. EXTENSION OF ABSTINENCE EDUCATION PROGRAM.

    (a) Extension of Appropriations.--Section 510(d) (42 U.S.C. 
710(d)), as amended by section 6 of the Welfare Reform Extension Act of 
2003 (Public Law 108-040, 117 Stat. 837), is amended by striking 
``2003'' and inserting ``2008''.
    (b) Allotment of Funds.--Section 510(a) (42 U.S.C. 710(a)) is 
amended--
            (1) in the matter preceding paragraph (1), by striking ``an 
        application for the fiscal year under section 505(a)'' and 
        inserting ``, for the fiscal year, an application under section 
        505(a), and an application under this section (in such form and 
        meeting such terms and conditions as determined appropriate by 
        the Secretary),''; and
            (2) in paragraph (2), to read as follows:
            ``(2) the percentage described in section 502(c)(1)(B)(ii) 
        that would be determined for the State under section 502(c) if 
        such determination took into consideration only those States 
        that transmitted both such applications for such fiscal 
        year.''.
    (c) Reallotment of Funds.--Section 510 (42 U.S.C. 710(a)) is 
amended by adding at the end the following:
    ``(e)(1) With respect to allotments under subsection (a) for fiscal 
year 2004 and subsequent fiscal years, the amount of any allotment to a 
State for a fiscal year that the Secretary determines will not be 
required to carry out a program under this section during such fiscal 
year or the succeeding fiscal year shall be available for reallotment 
from time to time during such fiscal years on such dates as the 
Secretary may fix, to other States that the Secretary determines--
            ``(A) require amounts in excess of amounts previously 
        allotted under subsection (a) to carry out a program under this 
        section; and
            ``(B) will use such excess amounts during such fiscal 
        years.
    ``(2) Reallotments under paragraph (1) shall be made on the basis 
of such States' applications under this section, after taking into 
consideration the population of low-income children in each such State 
as compared with the population of low-income children in all such 
States with respect to which a determination under paragraph (1) has 
been made by the Secretary.
    ``(3) Any amount reallotted under paragraph (1) to a State is 
deemed to be part of its allotment under subsection (a).''.
    (d) Effective Date.--The amendments made by this section shall be 
effective with respect to the program under section 510 for fiscal 
years 2004 and succeeding fiscal years.

                        TITLE III--CHILD SUPPORT

SEC. 301. 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 
        right 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 
                an election made under section 454(34), 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) of this subsection 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) of this subsection 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 (3), 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's share of the amount payable to a family pursuant to 
        paragraph (2)(B) of this subsection 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 immediately 
        before the date this subsection first applies to the State) if 
        such former section had remained in effect, the State may elect 
        to have the payment considered a qualified State expenditure 
        for purposes of section 409(a)(7).
            ``(7) State option to pass through additional support with 
        federal financial participation.--
                    ``(A) Families that formerly received assistance.--
                Notwithstanding paragraph (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 
                formerly received assistance from the State to the 
                extent that the State pays the amount to the family.
                    ``(B) Families that currently receive assistance.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (1), in the case of a family that 
                        receives assistance from the State, a State 
                        shall not be required to pay to the Federal 
                        Government the Federal share of the excepted 
                        portion (as defined in clause (ii)) of any 
                        amount collected on behalf of such family 
                        during a month to the extent that--
                                    ``(I) the State pays the excepted 
                                portion to the family; and
                                    ``(II) the excepted portion is 
                                disregarded in determining the amount 
                                and type of assistance provided to the 
                                family under such program.
                            ``(ii) Excepted portion defined.--For 
                        purposes of this subparagraph, the term 
                        `excepted portion' means that portion of the 
                        amount collected on behalf of a family during a 
                        month that does not exceed $400 per month, or 
                        in the case of a family that includes 2 or more 
                        children, that does not exceed an amount 
                        established by the State that is not more than 
                        $600 per month.
            ``(8) States with demonstration waivers.--Notwithstanding 
        the preceding paragraphs, in the case of a State that, on the 
        date of enactment of this paragraph, has had in effect since 
        October 1, 1997, a waiver under section 1115 permitting 
        passthrough payments of child support collections--
                    ``(A) the State may continue to distribute such 
                payments to families without regard to the expiration 
                date of such waiver; and
                    ``(B) the requirement under paragraph (1) to pay to 
                the Federal Government the Federal share of the amount 
                collected on behalf of a family shall not apply to the 
                extent that--
                            ``(i) the State distributes such amount to 
                        the family; and
                            ``(ii) such amount is disregarded in 
                        determining the amount and type of assistance 
                        paid to the family.''.
                    (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) of this Act or former section 457(a)(2)(B) of this 
        Act (as in effect for the State immediately 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 301(d)(1) of the Personal 
        Responsibility and Individual Development for Everyone Act 
        shall not apply with respect to the State, notwithstanding 
        section 301(e) of that Act.''.
                    (C) Approval of estimation procedures.--Not later 
                than the date that is 6 months after the date of 
                enactment of this Act, 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 (42 U.S.C. 651 et seq.)), shall 
                establish the procedures to be used to make the 
                estimate described in section 457(a)(6) of such Act (42 
                U.S.C. 657(a)(6)).
            (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) State Option To Discontinue Older Support Assignments.--Section 
457(b) (42 U.S.C. 657(b)) is amended to read as follows:
    ``(b) Continuation of Assignments.--
            ``(1) State option to discontinue pre-1997 support 
        assignments.--
                    ``(A) In general.--Any rights to support 
                obligations assigned to a State as a condition of 
                receiving assistance from the State under part A and in 
                effect on September 30, 1997 (or such earlier date on 
                or after August 22, 1996, as the State may choose), may 
                remain assigned after such date.
                    ``(B) Distribution of amounts after assignment 
                discontinuation.--If a State chooses to discontinue the 
                assignment of a support obligation described in 
                subparagraph (A), the State may treat amounts collected 
                pursuant to such assignment as if such amounts had 
                never been assigned and may distribute such amounts to 
                the family in accordance with subsection (a)(4).
            ``(2) State option to discontinue post-1997 assignments.--
                    ``(A) In general.--Any rights to support 
                obligations accruing before the date on which a family 
                first receives assistance under part A that are 
                assigned to a State under that part and in effect 
                before the implementation date of this section may 
                remain assigned after such date.
                    ``(B) Distribution of amounts after assignment 
                discontinuation.--If a State chooses to discontinue the 
                assignment of a support obligation described in 
                subparagraph (A), the State may treat amounts collected 
                pursuant to such assignment as if such amounts had 
                never been assigned and may distribute such amounts to 
                the family in accordance with subsection (a)(4).''.
    (d) Conforming Amendments.--
            (1) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)), as 
        amended by section 103(c), 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:
                                    ``(VI) Portions of certain child 
                                support payments collected on behalf of 
                                and distributed to families no longer 
                                receiving assistance.--Any amount paid 
                                by a State pursuant to clause (i) or 
                                (ii) of section 457(a)(2)(B), but only 
                                to the extent that the State properly 
                                elects under section 457(a)(6) to have 
                                the payment considered a qualified 
                                State expenditure.''.
            (2) Section 6402(c) of the Internal Revenue Code of 1986 
        (relating to offset of past-due support against overpayments) 
        is amended--
                    (A) in the first sentence, by striking ``the Social 
                Security Act.'' and inserting ``of such Act.''; and
                    (B) by striking the third sentence and inserting 
                the following: ``The Secretary shall apply a reduction 
                under this subsection first to an amount certified by 
                the State as past due support under section 464 of the 
                Social Security Act before any other reductions allowed 
                by law.''.
    (e) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on October 1, 2007, 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 such amendments (in 
        the case of State programs operated under such part D) are 
        promulgated by such date.
            (2) State option to accelerate effective date.--In 
        addition, a State may elect to have the amendments made by this 
        section apply to the State and to amounts collected by the 
        State (and such payments under parts A and D), on and after 
        such date as the State may select that is after the date of 
        enactment of this Act and before October 1, 2007.

SEC. 302. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS FOR 
              FAMILIES RECEIVING TANF.

    (a) In General.--Section 466(a)(10)(A)(i) (42 U.S.C. 
666(a)(10)(A)(i)) is amended--
            (1) by striking ``parent, or,'' and inserting ``parent 
        or''; and
            (2) by striking ``upon the request of the State agency 
        under the State plan or of either parent,''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2005.

SEC. 303. 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. The report shall include an 
estimate of the total amount of undistributed child support and the 
average length of time it takes undistributed child support to be 
distributed. To the extent the Secretary deems appropriate, 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. 304. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF 
              UNEMPLOYMENT COMPENSATION PROGRAMS.

    (a) In General.--Section 453(j) (42 U.S.C. 653(j)) is amended by 
adding at the end the following:
            ``(7) Information comparisons and disclosure to assist in 
        administration of unemployment compensation programs.--
                    ``(A) In general.--If, for purposes of 
                administering an unemployment compensation program 
                under Federal or State law, a State agency responsible 
                for the administration of such program transmits to the 
                Secretary the name and social security account number 
                of an individual, the Secretary shall disclose to the 
                State agency information on the individual and the 
                individual's employer that is maintained in the 
                National Directory of New Hires, subject to the 
                succeeding provisions of this paragraph.
                    ``(B) Condition on disclosure by the secretary.--
                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 and disclosure of information by state 
                agencies.--
                            ``(i) In general.--A State agency may not 
                        use or disclose information provided under this 
                        paragraph except for purposes of administering 
                        a program referred to in subparagraph (A).
                            ``(ii) Information security.--A State 
                        agency to which information is provided under 
                        this paragraph shall have in effect data 
                        security and control policies that the 
                        Secretary finds adequate to ensure the security 
                        of information obtained under this paragraph 
                        and to ensure that access to such information 
                        is restricted to authorized persons for 
                        purposes of authorized uses and disclosures.
                            ``(iii) Penalty for misuse of 
                        information.--An officer or employee of a State 
                        agency who fails to comply with this 
                        subparagraph shall be subject to the sanctions 
                        under subsection (l)(2) to the same extent as 
                        if such officer or employee was an officer or 
                        employee of the United States.
                    ``(D) Procedural requirements.--A State agency 
                requesting information under this paragraph shall 
                adhere to uniform procedures established by the 
                Secretary governing information requests and data 
                matching under this paragraph.
                    ``(E) Reimbursement of costs.--A State agency shall 
                reimburse the Secretary, in accordance with subsection 
                (k)(3), for the costs incurred by the Secretary in 
                furnishing the information requested under this 
                paragraph.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 305. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING 
              PASSPORT DENIAL.

    (a) In General.--Section 452(k)(1) (42 U.S.C. 652(k)(1)) is amended 
by striking ``$5,000'' and inserting ``$2,500''.
    (b) Conforming Amendment.--Section 454(31) (42 U.S.C. 654(31)) is 
amended by striking ``$5,000'' and inserting ``$2,500''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2004.

SEC. 306. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD 
              SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

    (a) In General.--Section 464 (42 U.S.C. 664) is amended--
            (1) in subsection (a)(2)(A), by striking ``(as that term is 
        defined for purposes of this paragraph under subsection (c))''; 
        and
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) Except as provided in 
                        paragraph (2), as used in'' and inserting 
                        ``In''; and
                            (ii) by inserting ``(whether or not a 
                        minor)'' after ``a child'' each place it 
                        appears; and
                    (B) by striking paragraphs (2) and (3).
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2005.

SEC. 307. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
              CONNECTED DISABILITIES IN ORDER TO ENFORCE OBLIGATIONS.

    (a) In General.--Section 459(h)(1)(A)(ii)(V)) (42 U.S.C. 
659(h)(1)(A)(ii)(V)) is amended by striking all that follows ``Armed 
Forces'' and inserting ``, except that such compensation shall not be 
subject to withholding pursuant to this section for payment of alimony 
unless the former member to whom it is payable is in receipt of retired 
or retainer pay and has waived a portion of such pay in order to 
receive such compensation;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2005.

SEC. 308. IMPROVING FEDERAL DEBT COLLECTION PRACTICES.

    (a) In General.--Section 3716(h)(3) of title 31, United States 
Code, is amended to read as follows:
    ``(3)(A) Except as provided in subparagraph (B), in applying this 
subsection with respect to any debt owed to a State, subsection 
(c)(3)(A) shall not apply.
    ``(B) Subparagraph (A) shall not apply with respect to payments 
owed to an individual under title II of the Social Security Act, for 
purposes of an offset under this section of such payments against past-
due support (as defined in section 464(c) of the Social Security Act, 
without regard to paragraphs (2) and (3) of such section 464(c)) that 
is being enforced by a State agency administering a program under part 
D of title IV of that Act.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

SEC. 309. MAINTENANCE OF TECHNICAL ASSISTANCE FUNDING.

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

SEC. 310. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE FUNDING.

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

SEC. 311. IDENTIFICATION AND SEIZURE OF ASSETS HELD BY MULTISTATE 
              FINANCIAL INSTITUTIONS.

    (a) Duties of the Secretary.--Section 452(l) (42 U.S.C. 652(l)) is 
amended to read as follows:
    ``(l) Identification and seizure of assets held by multistate 
Financial Institutions.--
            ``(1) In general.--The Secretary, through the Federal 
        Parent Locator Service, is authorized--
                    ``(A) to assist State agencies operating programs 
                under this part and financial institutions doing 
                business in 2 or more States in reaching agreements 
                regarding the receipt from such institutions, and the 
                transfer to the State agencies, of information that may 
                be provided pursuant to section 466(a)(17)(A)(i) or 
                469A(a);
                    ``(B) to perform data matches comparing information 
                from such State agencies and financial institutions 
                entering into such Agreements with respect to 
                individuals owing past-due support; and
                    ``(C) to seize assets, held by such financial 
                institutions, of individuals identified through such 
                data matches who owe past-due support, by--
                            ``(i) issuing a notice of lien or levy to 
                        such financial institutions requiring them to 
                        encumber such assets for 30 calendar days and 
                        to subsequently transfer such assets to the 
                        Secretary (except that the Secretary shall 
                        promptly release such lien or levy within such 
                        30-day period upon request of the State 
                        agencies responsible for collecting past-due 
                        support from such individuals); and
                            ``(ii) providing notice to such individuals 
                        of the lien or levy upon their assets and 
                        informing them--
                                    ``(I) of their procedural due 
                                process rights, including the 
                                opportunity to contest such lien or 
                                levy to the appropriate State agency; 
                                and
                                    ``(II) in the case of jointly owned 
                                assets, of the process by which other 
                                owners may secure their respective 
                                share of such assets, according to such 
                                policies and procedures as the 
                                Secretary may specify with respect to 
                                seizure of such assets.
            ``(2) Transfer of funds to states.--Assets seized from 
        individuals under paragraph (1)(C) shall be promptly 
        transferred by the Secretary to the State agencies responsible 
        for collecting past-due support from such individuals for 
        distribution pursuant to section 457.
            ``(3) Relationship to state laws.--Notwithstanding any 
        provision of State law, an individual receiving a notice under 
        paragraph (1)(C) shall have 21 calendar days from the date of 
        such notice to contest the lien or levy imposed under such 
        paragraph by requesting an administrative review by the State 
        agency responsible for collecting past-due support from such 
        individual.
            ``(4) Treatment of disclosures.--For purposes of section 
        1113(d) of the Right to Financial Privacy Act of 1978, a 
        disclosure pursuant to this subsection shall be considered a 
        disclosure pursuant to a Federal statute.''.
    (b) State Duties.--
            (1) Individuals with assets subject to federal seizure.--
        Section 454 (42 U.S.C. 654), as amended by section 
        301(b)(1)(B)(iii), is amended--
                    (A) in paragraph (33), by striking ``and'' at the 
                end;
                    (B) in paragraph (34), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting after paragraph (34), the 
                following:
            ``(35) provide that the State shall--
                    ``(A) upon furnishing the Secretary with 
                information under section 452(l) with respect to 
                individuals owing past-due support, provide notice to 
                such individuals that their assets held in financial 
                institutions shall be subject to seizure to pay such 
                past-due support, and shall--
                            ``(i) instruct such individuals of the 
                        steps which may be taken to contest the State's 
                        determination that past-due support is owed or 
                        the amount of the past-due support; and
                            ``(ii) include, in the case of jointly 
                        owned assets, a description of the process by 
                        which other owners may secure their share of 
                        such assets, in accordance with such policies 
                        and procedures as the Secretary may specify 
                        with respect to seizure of such assets;
                    ``(B) promptly resolve cases in which such 
                individuals contest the State's determination with 
                respect to past-due support, and provide for expedited 
                refund of any assets erroneously seized and transferred 
                to the State under such section 452(l); and
                    ``(C) except as otherwise specified under this 
                paragraph or by the Secretary, ensure that the due 
                process protections afforded under this paragraph to 
                individuals whose assets are subject to seizure under 
                section 452(l) are generally consistent with, and to 
                the extent practicable conform to, the due process 
                protections afforded by the State to individuals 
                subject to offset of tax refunds under section 464.''.
            (2) Reimbursement of federal costs.--Section 453(k)(3) (42 
        U.S.C. 653(k)(3)) is amended--
                    (A) in the paragraph heading, by inserting ``and 
                enforcement services'' after ``information''
                    (B) by inserting ``or enforcement services'' after 
                ``that receives information'';
                    (C) by inserting ``or section 452(l)'' after 
                ``pursuant to this section''; and
                    (D) by striking ``in furnishing the information'' 
                and inserting ``in furnishing such information or 
                enforcement services''.
    (c) Conforming Amendments.--
            (1) State law requirements.--Section 466(a)(17) (42 U.S.C. 
        666(a)(17)) is amended--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by inserting ``pursuant 
                        to section 452(l)'' after ``and the Federal 
                        Parent Locator Service''; and
                            (ii) in clause (ii), by inserting ``issued 
                        by the State agency or by the Secretary under 
                        section 452(l)'' after ``in response to a 
                        notice of lien or levy''; and
                    (B) in subparagraph (C)--
                            (i) in clause (i), by inserting ``or to the 
                        Federal Parent Locator Service'' after ``to the 
                        State agency''; and
                            (ii) in clause (ii), by striking ``issued 
                        by the State agency''.
            (2) Non Liability for financial institutions.--Section 
        469A(a) (42 U.S.C. 669a(a)) is amended by inserting ``section 
        452(l) or'' before ``section 466(a)(17)(A)''.

SEC. 312. INFORMATION COMPARISONS WITH INSURANCE DATA.

    (a) Duties of the Secretary.--Section 452 (42 U.S.C. 652) is 
amended by adding at the end the following:
    ``(m) Comparisons With Insurance Information.--
            ``(1) In general.--The Secretary, through the Federal 
        Parent Locator Service, is authorized--
                    ``(A) to compare information concerning individuals 
                owing past-due support with information maintained by 
                insurers (or their agents) concerning insurance claims, 
                settlements, awards, and payments, and
                    ``(B) to furnish information resulting from such 
                data matches to the State agencies responsible for 
                collecting child support from such individuals.
            ``(2) Liability.--No insurer (including any agent of an 
        insurer) shall be liable under any Federal or State law to any 
        person for any disclosure provided for under this subsection, 
        or for any other action taken in good faith in accordance with 
        the provisions of this subsection.''.
    (b) State Reimbursement of Federal Costs.--Section 453(k)(3) (42 
U.S.C. 653(k)(3)), as amended by section 312(b)(2), is amended by 
striking ``section 452(l)'' and inserting ``subsection (l) or (m) of 
section 452''.

SEC. 313. TRIBAL ACCESS TO THE FEDERAL PARENT LOCATOR SERVICE.

    Section 453(c)(1) (42 U.S.C. 653(c)(1)) is amended by inserting 
``or Indian tribe or tribal organization'' after ``any agent or 
attorney of any State''.

SEC. 314. REIMBURSEMENT OF SECRETARY'S COSTS OF INFORMATION COMPARISONS 
              AND DISCLOSURE FOR ENFORCEMENT OF OBLIGATIONS ON HIGHER 
              EDUCATION ACT LOANS AND GRANTS.

    Section 453(j)(6)(F) (42 U.S.C. 653(j)(6)(F)) is amended by 
striking ``additional''.

SEC. 315. TECHNICAL AMENDMENT RELATING TO COOPERATIVE AGREEMENTS 
              BETWEEN STATES AND INDIAN TRIBES.

    Section 454(33) (42 U.S.C. 654(33)) is amended by striking ``that 
receives funding pursuant to section 428 and''.

SEC. 316. CLAIMS UPON LONGSHORE AND HARBOR WORKERS' COMPENSATION FOR 
              CHILD SUPPORT.

    (a) In General.--Section 17 of the Longshore and Harbor Workers' 
Compensation Act (33 U.S.C. 917) is amended to read as follows:

           ``liens on compensation; child support enforcement

    ``Sec. 17. (a) Liens.--Where a trust fund which complies with 
section 302(c) of the Labor Management Relations Act, 1947 (29 U.S.C. 
186(c)) established pursuant to a collective-bargaining agreement in 
effect between an employer and an employee covered under this Act has 
paid disability benefits to an employee which the employee is legally 
obligated to repay by reason of the employee's entitlement to 
compensation under this Act or under a settlement, the Secretary shall 
authorize a lien on such compensation in favor of the trust fund for 
the amount of such payments.
    ``(b) Child Support.--Compensation or benefits due or payable to an 
individual under this Act (other than medical benefits) shall be 
subject, in like manner and to the same extent as similar compensation 
or benefits under a workers' compensation program if established under 
State law--
            ``(1) to withholding in accordance with State law enacted 
        pursuant to subsections (a)(1) and (b) of section 466 of the 
        Social Security Act and regulations under such subsections; and
            ``(2) to any other legal process brought, by a State agency 
        administering a program under a State plan approved under part 
        D of title IV of the Social Security Act or by an individual 
        obligee, to enforce the legal obligation of the individual to 
        provide child support or alimony.''.
    (b) Conforming Amendment.--Section 16 of the Longshore and Harbor 
Workers' Compensation Act (33 U.S.C. 916) is amended--
            (1) by striking ``No'' and inserting ``Except as provided 
        by this Act, no''; and
            (2) by striking ``, except as provided by this Act,'' after 
        ``under this Act''.

SEC. 317. STATE OPTION TO USE STATEWIDE AUTOMATED DATA PROCESSING AND 
              INFORMATION RETRIEVAL SYSTEM FOR INTERSTATE CASES.

    Section 466(a)(14)(A)(iii) (42 U.S.C. 666(a)(14)(A)(iii)) is 
amended by inserting before the semicolon the following: ``(but the 
assisting State may establish a corresponding case based on such other 
State's request for assistance)''.

SEC. 318. INTERCEPTION OF GAMBLING WINNINGS FOR CHILD SUPPORT.

    (a) Interception of Gambling Winnings for Child Support.--Section 
452 (42 U.S.C. 652), as amended by section 313, is amended by adding at 
the end the following:
    ``(n) Interception of Gambling Winnings for Past-Due Support.--
            ``(1) In general.--The Secretary, through the Federal 
        Parent Locator Service, is authorized, in accordance with this 
        subsection, to intercept gambling winnings of an individual 
        owing past-due support being enforced by a State agency with a 
        plan approved under this part, and to transmit such winnings to 
        the State agency for distribution pursuant to section 457.
            ``(2) Requirements for gambling establishments.--A gambling 
        establishment subject to this subsection shall not pay to any 
        individual gambling winnings (as defined in paragraph (6)) 
        meeting the criteria for reporting to the Internal Revenue 
        Service pursuant to section 6041 of the Internal Revenue Code 
        of 1986 until the establishment--
                    ``(A) has furnished to the Secretary--
                            ``(i) the information required to be so 
                        reported with respect to such individual and 
                        such winnings; and
                            ``(ii) the net amount of such gambling 
                        winnings (hereafter in this subsection referred 
                        to as the `net gambling winnings') after 
                        withholding of amounts for Federal taxes as 
                        required pursuant to section 3402(q) of the 
                        Internal Revenue Code of 1986; and
                    ``(B) has complied with the Secretary's 
                instructions pursuant to paragraph (3).
            ``(3) Data match and withholding.--The Secretary shall--
                    ``(A) compare information furnished pursuant to 
                paragraph (2)(A) with information on individuals who 
                owe past-due support;
                    ``(B) direct the gambling establishment to withhold 
                from an individual's net gambling winnings all amounts 
                not exceeding the total past-due support owed by the 
                individual;
                    ``(C) authorize the gambling establishment, in 
                reimbursement of its costs of complying with this 
                subsection, to withhold and retain from such net 
                gambling winnings an amount equal to 2 percent of the 
                amount to be withheld pursuant to subparagraph (B), 
                which amount shall be taken first from any excess of 
                such net winnings above the amount withheld pursuant to 
                subparagraph (B), with any balance to be taken from the 
                amount so withheld; and
                    ``(D) require the gambling establishment to furnish 
                written notice to the individual whose gambling 
                winnings are withheld pursuant to this subsection, that 
                includes--
                            ``(i) the amounts withheld pursuant to 
                        subparagraphs (B) and (C);
                            ``(ii) the reason and authority for the 
                        withholding; and
                            ``(iii) an explanation of the individual's 
                        procedural due process rights, including the 
                        right to contest such withholding to the 
                        responsible State agency and information 
                        necessary to contact such State agency.
            ``(4) Transfer of withheld amounts.--Net amounts withheld 
        for past-due support pursuant to subparagraphs (B) and (C) of 
        paragraph (3) shall--
                    ``(A) be transferred by the gambling establishment 
                to the Secretary at the same time and in the same 
                manner as amounts withheld under section 3402(q) of the 
                Internal Revenue Code of 1986 would be transferred to 
                the Internal Revenue Service, together with the 
                information described in paragraph (2)(A)(i) with 
                respect to the individuals whose winnings were withheld 
                under this subsection; and
                    ``(B) be promptly transferred by the Secretary to 
                the appropriate State agency.
            ``(5) Nonliability of gambling establishments.--A gambling 
        establishment shall not be liable under any Federal or State 
        law to any person--
                    ``(A) for any disclosure of information to the 
                Secretary under this subsection;
                    ``(B) for withholding or surrendering gambling 
                winnings in accordance with this subsection; or
                    ``(C) for any other action taken in good faith to 
                comply with this subsection.
            ``(6) Definition of gambling winnings.--In this subsection, 
        the term `gambling winnings' means the proceeds of a wager that 
        are subject to reporting under section 6041 of the Internal 
        Revenue Code of 1986.''.
    (b) Requirement for State Laws.--Section 466(a) (42 U.S.C. 666(a)) 
is amended by inserting after paragraph (19) the following:
            ``(20) Interception of gambling winnings.--Procedures under 
        which--
                    ``(A) gambling establishments subject to the laws 
                of the State are required to comply with the provisions 
                of section 452(n), and are subject to sanctions for 
                failure to comply, which shall include liability in an 
                amount equal to the amount the establishment would have 
                withheld if it so complied;
                    ``(B) noncustodial parents owing past-due support 
                are provided with written notice that gambling winnings 
                may be subject to withholding for past-due support 
                under section 452(n); and
                    ``(C) cases where such noncustodial parents contest 
                the State's determination with respect to past-due 
                support are promptly resolved, and expedited refund is 
                made of any amounts erroneously seized under such 
                section 452(n).''.
    (c) State Reimbursement of Federal Costs.--Section 453(k)(3) (42 
U.S.C.653(k)(3)), as amended by section 313(b), is amended by striking 
``or (m)'' and inserting ``(m), or (n)''.
    (d) Requirement for Participating Indian Tribes.--Section 455(f) 
(42 U.S.C. 655(f)) is amended in the first sentence by striking ``and 
location of absent parents'' and inserting ``location of absent 
parents, and interception of gambling winnings consistent with the 
requirements of sections 452(n) and 466(a)(20)''.

SEC. 319. STATE LAW REQUIREMENT CONCERNING THE UNIFORM INTERSTATE 
              FAMILY SUPPORT ACT (UIFSA).

    (a) In General.--Section 466(f) (42 U.S.C. 666(f)) is amended--
            (1) by striking ``and as in effect on August 22, 1996,''; 
        and
            (2) by striking ``adopted as of such date'' and inserting 
        ``adopted as of August, 2001''.
    (b) Full Faith and Credit for Child Support Orders.--Section 1738B 
of title 28, United States Code, is amended--
            (1) by striking subsection (d) and inserting the following:
    ``(d) Continuing Exclusive Jurisdiction.--
            ``(1) In general.--Subject to paragraph (2), a court of a 
        State that has made a child support order consistent with this 
        section has continuing, exclusive jurisdiction to modify its 
        order if the order is the controlling order and--
                    ``(A) the State is the child's State or the 
                residence of any individual contestant; or
                    ``(B) if the State is not the residence of the 
                child or an individual contestant, the contestants 
                consent in a record or in open court that the court may 
                continue to exercise jurisdiction to modify its order.
            ``(2) Requirement.--A court may not exercise its 
        continuing, exclusive jurisdiction to modify the order if the 
        court of another State, acting in accordance with subsections 
        (e) and (f), has made a modification of the order.'';
            (2) in subsection (e)(2)--
                    (A) in subparagraph (A), by striking ``because'' 
                and all that follows through the semicolon and 
                inserting ``pursuant to paragraph (1) or (2) of 
                subsection (d);'' and
                    (B) in subparagraph (B), by inserting ``with 
                jurisdiction over at least 1 of the individual 
                contestants or that is located in the child's State'' 
                after ``another State'';
            (3) in subsection (f)--
                    (A) in the subsection heading, by striking 
                ``Recognition of'' and inserting ``Determination of 
                Controlling'';
                    (B) in the matter preceding paragraph (1), by 
                striking ``shall apply'' and all that follows through 
                the colon and inserting ``having personal jurisdiction 
                over both individual contestants shall apply the 
                following rules and by order shall determine which 
                order controls:''
                    (C) in paragraph (1), by striking ``must be'' and 
                inserting ``controls and must be so'';
                    (D) in paragraph (2), by striking ``must be 
                recognized'' and inserting ``controls'';
                    (E) in paragraph (3), by striking ``must be 
                recognized'' each place it appears and inserting 
                ``controls'';
                    (F) in paragraph (4)--
                            (i) by striking ``may'' and inserting 
                        ``shall''; and
                            (ii) by striking ``must be recognized'' and 
                        inserting ``controls''; and
                    (G) by striking paragraph (5);
            (4) by striking subsection (g) and inserting the following:
    ``(g) Enforcement of Modified Orders.--If a child support order 
issued by a court of a State is modified by a court of another State 
which properly assumed jurisdiction, the issuing court--
            ``(1) may enforce its order that was modified only as to 
        arrears and interest accruing before the modification;
            ``(2) may provide appropriate relief for violations of its 
        order which occurred before the effective date of the 
        modification; and
            ``(3) shall recognize the modifying order of the other 
        State for the purpose of enforcement.'';
            (5) in subsection (h)--
                    (A) in paragraph (1), by striking ``and (3)'' and 
                inserting ``, (3), and (4)'';
                    (B) in paragraph (2), by inserting ``the 
                computation and payment of arrearages, and the accrual 
                of interest on the arrearages,'' after ``obligations of 
                support,''; and
                    (C) by adding at the end the following:
            ``(4) Prospective application.--After a court determines 
        which is the controlling order and issues an order 
        consolidating arrears, if any, a court shall prospectively 
        apply the law of the State issuing the controlling order, 
        including that State's law with respect to interest on arrears, 
        current and future support, and consolidated arrears.''; and
            (6) in subsection (i), by inserting ``and subsection (d)(2) 
        does not apply'' after ``issuing State''.

SEC. 320. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    (a) Authority To Make Grants to Indian Tribes.--Section 469B (42 
U.S.C. 669b) is amended--
            (1) in the section heading, by inserting ``and indian 
        tribes'' after ``states''; and
            (2) in subsection (a), by inserting ``and Indian tribes or 
        tribal organizations'' after ``to enable States''.
    (b) Amount of Grants.--Section 469B(b) (42 U.S.C. 669b(b)) is 
amended to read as follows:
    ``(b) Amount of Grants.--
            ``(1) Grants to states.--The amount of the grant to be made 
        to a State under this section for a fiscal year shall be an 
        amount equal to the lesser of--
                    ``(A) 90 percent of State expenditures during the 
                fiscal year for activities described in subsection (a); 
                or
                    ``(B) the allotment of the State under subsection 
                (c) for the fiscal year.
            ``(2) Grants to indian tribes.--An Indian tribe or tribal 
        organization operating a program under section 455 that has 
        operated such program throughout the preceding fiscal year and 
        has an application under this section approved by the Secretary 
        shall receive a grant under this section for a fiscal year in 
        an amount equal to the allotment of such Indian tribe or tribal 
        organization under subsection (c)(2) for the fiscal year.''.
    (c) Allotments.--Section 469B(c) (42 U.S.C. 669b(c)) is amended to 
read as follows:
    ``(c) Allotments.--
            ``(1) Allotments to states.--
                    ``(A) In general.--Subject to the subparagraph (C), 
                the allotment of a State for a fiscal year is the 
                amount that bears the same ratio to the amount 
                specified in subparagraph (B) for such fiscal year as 
                the number of children in the State living with only 1 
                parent bears to the total number of such children in 
                all States.
                    ``(B) Amount available for allotment.--For purposes 
                of subparagraph (A), the amount specified in this 
                subparagraph is the following amount, reduced by the 
                total allotments to Indian tribes or tribal 
                organizations in accordance with paragraph (2):
                            ``(i) $12,000,000 for fiscal year 2004.
                            ``(ii) $14,000,000 for fiscal year 2005.
                            ``(iii) $16,000,000 for fiscal year 2006.
                            ``(iv) $20,000,000 for fiscal year 2007 and 
                        each succeeding fiscal year.
                    ``(C) Minimum state allotment.--The Secretary shall 
                adjust allotments to States under subparagraph (A) as 
                necessary to ensure that no State is allotted less 
                than--
                            ``(i) $120,000 for fiscal year 2004;
                            ``(ii) $140,000 for fiscal year 2005;
                            ``(iii) $160,000 for fiscal year 2006; and
                            ``(iv) $180,000 for fiscal year 2007 and 
                        each succeeding fiscal year.
            ``(2) Allotments to indian tribes.--
                    ``(A) In general.--Subject to subparagraph (C), the 
                allotment of an Indian tribe or tribal organization 
                described in subsection (b)(2) for a fiscal year is an 
                amount that bears the same ratio to the amount 
                specified in subparagraph (B) for such fiscal year as 
                the number of children in the Indian tribe or tribal 
                organization living with only 1 parent bears to the 
                total number of such children in all Indian tribes and 
                tribal organizations eligible to receive grants under 
                this section for such year.
                    ``(B) Amount available for allotment.--For purposes 
                of subparagraph (A), the amount available under this 
                subparagraph is an amount, deducted from the amount 
                specified in paragraph (1)(B), not to exceed--
                            ``(i) $250,000 for fiscal year 2004;
                            ``(ii) $600,000 for fiscal year 2005;
                            ``(iii) $800,000 for fiscal year 2006; and
                            ``(iv) $1,670,000 for fiscal year 2007 and 
                        each succeeding year.
                    ``(C) Minimum and maximum tribal allotment.--The 
                Secretary shall adjust allotments to Indian tribes and 
                tribal organizations under subparagraph (A) as 
                necessary to ensure that no Indian tribe or tribal 
                organization is allotted, for a fiscal year, an amount 
                which is less than $10,000 or more than the minimum 
                State allotment for such fiscal year.''.
    (d) Administration.--Section 469B(e) (42 U.S.C. 669b(e)) is amended 
to read as follows:
    ``(e) Administration.--
            ``(1) Grants to states.--Each State to which a grant is 
        made under this section--
                    ``(A) may administer State programs funded with the 
                grant, directly or through grants to or contracts with 
                courts, local public agencies, or nonprofit private 
                entities; and
                    ``(B) shall not be required to operate such 
                programs on a statewide basis.
            ``(2) Grants to States or indian tribes.--Each State or 
        Indian tribe or tribal organization to which a grant is made 
        under this section shall monitor, evaluate, and report on such 
        programs in accordance with regulations prescribed by the 
        Secretary.''.

SEC. 321. TIMING OF CORRECTIVE ACTION YEAR FOR STATE NONCOMPLIANCE WITH 
              CHILD SUPPORT ENFORCEMENT PROGRAM REQUIREMENTS.

    (a) In General.--Section 409(a)(8) (42 U.S.C. 609(a)(8)) is 
amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i)(I), by 
                striking ``in a fiscal year'' and inserting ``for a 
                fiscal year''; and
                    (B) in clause (ii)--
                            (i) in the matter preceding subclause (I), 
                        by striking ``that, with respect to the 
                        succeeding fiscal year--'' and inserting 
                        ``that, with respect to the period described in 
                        subparagraph (D)''; and
                            (ii) in the matter following subclause 
                        (II), by striking ``the end of such succeeding 
                        fiscal year'' and inserting ``the end of the 
                        period described in subparagraph (D)''; and
            (2) by adding at the end the following:
                    ``(D) Period described.--Subject to subparagraph 
                (E), for purposes of this paragraph, the period 
                described in this subparagraph is the period that 
                begins with the date on which the Secretary makes a 
                finding described in subparagraph (A)(i) with respect 
                to State performance in a fiscal year and ends on 
                September 30 of the fiscal year following the fiscal 
                year in which the Secretary makes such a finding.
                    ``(E) No penalty if state corrects noncompliance in 
                finding year.--The Secretary shall not take a reduction 
                described in subparagraph (A) with respect to a 
                noncompliance described in clause (i) of that 
                subparagraph if the Secretary determines that the State 
                has corrected the noncompliance in the fiscal year in 
                which the Secretary makes the finding of the 
                noncompliance.''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective with respect to determinations of State compliance for fiscal 
year 2002 and succeeding fiscal years.
    (c) Special Rule for Fiscal Year 2001.--Notwithstanding any other 
provision of law, the Secretary shall not take against amounts 
otherwise payable to a State, a reduction described in section 
409(a)(8)(A) of the Social Security Act (42 U.S.C. 609(a)(8)(A)) with 
respect to a noncompliance described in such section occurring in 
fiscal year 2001 if the Secretary determines that the State has 
corrected such noncompliance in fiscal year 2002 or 2003.

                        TITLE IV--CHILD WELFARE

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

    Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)), as amended by section 
5 of the Welfare Reform Extension Act of 2003 (Public Law 108-040, 117 
Stat. 837) is amended by striking ``2003'' and inserting ``2008''.

SEC. 402. REMOVAL OF COMMONWEALTH OF PUERTO RICO FOSTER CARE FUNDS FROM 
              LIMITATION ON PAYMENTS.

    Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by section 
116(b)(2), is amended--
            (1) by striking ``Paragraph (1)'' and inserting the 
        following:
                    ``(A) In general.--Paragraph (1)'';
            (2) in subparagraph (A) (as added by paragraph (1)), by 
        striking ``or 418(a)(4)(B)'' and inserting ``418(a)(4)(B), or, 
        subject to clause (ii) of subparagraph (B), payments to Puerto 
        Rico described in clause (i) of that subparagraph'' before the 
        period; and
            (3) by adding at the end the following:
                    ``(B) Certain payments to puerto rico.--
                            ``(i) Payments described.--For purposes of 
                        subparagraph (A), payments described in this 
                        subparagraph are payments made to Puerto Rico 
                        under part E of title IV with respect to the 
                        portion of foster care payments made to Puerto 
                        Rico for fiscal year 2005 or any fiscal year 
                        thereafter that exceed the total amount of such 
                        payments for fiscal year 2002.
                            ``(ii) Limitation.--The total amount of 
                        payments to Puerto Rico described in clause (i) 
                        that are disregarded under subparagraph (A) may 
                        not exceed $6,250,000 for each of fiscal years 
                        2005 through 2008.''.

SEC. 403. TECHNICAL CORRECTION.

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

                 TITLE V--SUPPLEMENTAL SECURITY INCOME

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

    Section 1633 (42 U.S.C. 1383b) is amended by adding at the end the 
following:
    ``(e)(1) The Commissioner of Social Security shall review 
determinations, made by State agencies pursuant to subsection (a) in 
connection with applications for benefits under this title on the basis 
of blindness or disability, that individuals who have attained 18 years 
of age are blind or disabled as of a specified onset date. The 
Commissioner of Social Security shall review such a determination 
before any action is taken to implement the determination.
    ``(2)(A) In carrying out paragraph (1), the Commissioner of Social 
Security shall review--
            ``(i) at least 20 percent of all determinations referred to 
        in paragraph (1) that are made in fiscal year 2004;
            ``(ii) at least 40 percent of all such determinations that 
        are made in fiscal year 2005; and
            ``(iii) at least 50 percent of all such determinations that 
        are made in fiscal year 2006 or thereafter.
    ``(B) In carrying out subparagraph (A), the Commissioner of Social 
Security shall, to the extent feasible, select for review the 
determinations which the Commissioner of Social Security identifies as 
being the most likely to be incorrect.''.

               TITLE VI--TRANSITIONAL MEDICAL ASSISTANCE

SEC. 601. EXTENSION 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:
                    ``(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:
    ``(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) Extension of Sunset for TMA.--
            (1) In general.--Subsection (g) of section 1925 (42 U.S.C. 
        1396r-6), as so redesignated under subsection (a)(2)(A), and as 
        amended by section 7 of the Welfare Reform Extension Act of 
        2003, is further redesignated as subsection (i) and is amended 
        by striking ``2003'' and inserting ``2008''.
            (2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C. 
        1396a(e)(1)(B)), as so amended, is amended by striking 
        ``September 30, 2003'' and inserting ``the last date (if any) 
        on which section 1925 applies under subsection (f) of that 
        section''.
    (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)(1), 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:
            ``(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 
        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 meet 
(but is not required to meet) the requirements of subsections (a) and 
(b) if it provides for medical assistance under section 1931 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 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 at the 
end the following flush sentences:
        ``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, 2003, 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. 602. PROHIBITION AGAINST COVERING CHILDLESS ADULTS WITH SCHIP 
              FUNDS.

    (a) Prohibition on Use of SCHIP Funds.--
            (1) In general.--Section 2107 (42 U.S.C. 1397gg) is amended 
        by adding at the end the following:
    ``(f) Limitation on Waiver Authority.--Notwithstanding subsection 
(e)(2)(A) and section 1115(a), the Secretary may not approve a waiver, 
experimental, pilot, or demonstration project, or an amendment to such 
a project that has been approved as of the date of enactment of this 
subsection, that would allow funds made available under this title to 
be used to provide child health assistance or other health benefits 
coverage to childless adults. For purposes of the preceding sentence, a 
caretaker relative (as such term is defined for purposes of carrying 
out section 1931) shall not be considered a childless adult.''.
            (2) Conforming amendment.--Section 2105(c)(1) (42 U.S.C. 
        1397ee(c)(1)) is amended by inserting before the period the 
        following: ``and may not include coverage of childless adults. 
        For purposes of the preceding sentence, a caretaker relative 
        (as such term is defined for purposes of carrying out section 
        1931) shall not be considered a childless adult.''.
    (b) Rule of Construction.--Nothing in this section or the 
amendments made by this section shall be construed to--
            (1) authorize the waiver of any provision of title XIX or 
        XXI of the Social Security Act (42 U.S.C. 1396 et seq., 1397aa 
        et seq.) that is not otherwise authorized to be waived under 
        such titles or under title XI of such Act (42 U.S.C. 1301 et 
        seq.) as of the date of enactment of this Act; or
            (2) imply congressional approval of any waiver, 
        experimental, pilot, or demonstration project affecting the 
        medicaid program under title XIX of the Social Security Act or 
        the State children's health insurance program under title XXI 
        of such Act that has been approved as of such date of 
        enactment.
    (c) Effective Date.--This section and the amendments made by this 
section take effect on the date of enactment of this Act and apply to 
proposals to conduct a waiver, experimental, pilot, or demonstration 
project affecting the medicaid program under title XIX of the Social 
Security Act or the State children's health insurance program under 
title XXI of such Act, and to any proposals to amend such projects, 
that are approved or extended on or after such date of enactment.

                       TITLE VII--EFFECTIVE DATE

SEC. 701. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b) and except as otherwise 
provided, the amendments made by this Act take effect on the date of 
enactment of this Act.
    (b) Exception.--In the case of a State plan under part A or D of 
title IV of the Social Security Act which the Secretary determines 
requires State legislation in order for the plan to meet the additional 
requirements imposed by the amendments made by this Act, the effective 
date of the amendments imposing the additional requirements shall be 3 
months after the first day of the first calendar quarter beginning 
after the close of the first regular session of the State legislature 
that begins after the date of enactment of this Act. For purposes of 
the preceding sentence, in the case of a State that has a 2-year 
legislative session, each year of the session shall be considered to be 
a separate regular session of the State legislature.




                                                       Calendar No. 305

108th CONGRESS

  1st Session

                                H. R. 4

                          [Report No. 108-162]

_______________________________________________________________________

                                 AN ACT

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

_______________________________________________________________________

                            October 3, 2003

                       Reported with an amendment