[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 692 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 692

 To provide for racial equity and fair treatment under the program of 
  block grants to States for temporary assistance for needy families.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 11, 2003

 Ms. Eddie Bernice Johnson of Texas (for herself, Mrs. Jones of Ohio, 
    Mr. Towns, Ms. Jackson-Lee of Texas, Mr. Payne, Mr. Owens, Mr. 
    Cummings, Ms. Baldwin, Ms. Norton, Ms. Schakowsky, Ms. Lee, Ms. 
 Kilpatrick, Mr. Clyburn, Mr. Kennedy of Rhode Island, and Mr. Lantos) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide for racial equity and fair treatment under the program of 
  block grants to States for temporary assistance for needy families.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Racial Equity and Fair Treatment Act 
of 2003''.

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. Amendment of Social Security Act.
                     TITLE I--ENSURING EQUAL ACCESS

Sec. 101. Competitive grants to improve access to various benefit 
                            programs.
Sec. 102. Assessments for TANF recipients.
Sec. 103. Revision of work activities.
Sec. 104. Provision of interpretation and translation services.
     TITLE II--STRENGTHENING FAIR TREATMENT AND ANTIDISCRIMINATION 
                              PROTECTIONS

   Subtitle A--Strengthening and Streamlining of Antidiscrimination 
                              Protections

Sec. 201. Requirement to establish expedited process for discrimination 
                            complaints.
Sec. 202. Establishment of standardized, fair sanction process.
Sec. 203. Requirement to provide opportunity to appeal adverse 
                            decision.
Sec. 204. Notification of potential services and protections.
Sec. 204. Penalties against individuals for unjustified refusal to 
                            work; additional justifications.
Sec. 205. Requirement to provide information to individuals who are, or 
                            are at risk of being, sanctioned.
Sec. 206. Nondiscrimination.
Sec. 207. Ban on diversion of potential applicants for assistance.
                     Subtitle B--Related Provisions

Sec. 211. Ban on penalizing entire family for misconduct of 1 family 
                            member.
Sec. 212. Eliminate double jeopardy for recipients with past drug 
                            offenses.
Sec. 213. 5-year time limit.
                   TITLE III--FAIRNESS FOR IMMIGRANTS

Sec. 301. Treatment of aliens under the TANF program.
Sec. 302. Treatment of aliens under the SSI program.
Sec. 303. Inclusion of participation in English-as-a-second-language 
                            program among permissible work activities.
                  TITLE IV--ENCOURAGE RACIAL EQUALITY

Sec. 401. Racial performance measure as evaluation criterion in 
                            determining high performance bonus.
Sec. 402. Ban on violating antidiscrimination law.
Sec. 403. Data collection and reporting.
Sec. 404. Access to welfare; welfare outcomes.
Sec. 405. Longitudinal studies of TANF recipients.

SEC. 3. AMENDMENT OF SOCIAL SECURITY ACT.

    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--ENSURING EQUAL ACCESS

SEC. 101. COMPETITIVE GRANTS TO IMPROVE ACCESS TO VARIOUS BENEFIT 
              PROGRAMS.

    (a) Purposes.--The purposes of this section are to--
            (1) inform low-income families with children about programs 
        available to families leaving welfare and other programs to 
        support low-income families with children;
            (2) provide incentives to States and counties to improve 
        and coordinate application and renewal procedures for low-
        income family with children support programs; and
            (3) track the extent to which low-income families with 
        children receive the benefits and services for which they are 
        eligible.
    (b) Definitions.--In this section:
            (1) Locality.--The term ``locality'' means a municipality 
        that does not administer a program funded under part A of title 
        IV of the Social Security Act (in this section referred to as 
        ``TANF'').
            (2) Low-income family with children support program.--The 
        term ``low-income family with children support program'' means 
        a program designed to provide low-income families with 
        assistance or benefits to enable the family to become self-
        sufficient and includes--
                    (A) TANF;
                    (B) the food stamp program established under the 
                Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) (in this 
                section referred to as ``food stamps'');
                    (C) the medicaid program funded under title XIX of 
                the Social Security Act (42 U.S.C. 1396 et seq.);
                    (D) the State children's health insurance program 
                (SCHIP) funded under title XXI of the Social Security 
                Act (42 U.S.C. 1397aa et seq.);
                    (E) the child care program funded under the Child 
                Care Development Block Grant Act of 1990 (42 U.S.C. 
                9858 et seq.);
                    (F) the child support program funded under part D 
                of title IV of the Social Security Act (42 U.S.C. 651 
                et seq.);
                    (G) the earned income tax credit under section 32 
                of the Internal Revenue Code of 1986;
                    (H) the low-income home energy assistance program 
                (LIHEAP) established under the Low-Income Home Energy 
                Assistance Act of 1981 (42 U.S.C 8621 et seq.);
                    (I) the special supplemental nutrition program for 
                women, infants, and children (WIC) established under 
                section 17 of the Child Nutrition Act of 1966 (42 
                U.S.C. 1786);
                    (J) programs under the Workforce Investment Act of 
                1998 (29 U.S.C. 2801 et seq.); and
                    (K) any other Federal or State funded program 
                designed to provide family and work support to low-
                income families with children.
            (3) Nonprofit.--The term ``nonprofit'', as applied to a 
        school, agency, organization, or institution means a school, 
        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.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (5) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, American Samoa, Guam, and the 
        United States Virgin Islands.
    (c) Authorization of Grants.--
            (1) States and counties.--
                    (A) In general.--The Secretary may award grants to 
                States and counties to pay the Federal share of the 
                costs involved in improving the administration of low-
                income family with children support programs, including 
                simplifying application, recertification, reporting, 
                and verification rules, and promoting participation in 
                such programs.
                    (B) Federal share.--The Federal share shall be 80 
                percent.
            (2) Nonprofits and localities.--The Secretary may award 
        grants to nonprofits and localities to promote participation in 
        low-income family with children support programs, and 
        distribute information about and develop service centers for 
        low-income family with children support programs.
    (d) Grant Approval Criteria.--
            (1) In general.--The Secretary, in consultation with the 
        Secretary of Agriculture, shall establish criteria for approval 
        of an application for a grant under this section that include 
        consideration of--
                    (A) the extent to which the proposal, if funded, is 
                likely to result in improved service and higher 
                participation rates in low-income children's support 
                programs;
                    (B) an applicant's ability to reach hard-to-serve 
                populations;
                    (C) the level of innovation in the applicant's 
                grant proposal; and
                    (D) any partnerships between the public and private 
                sector in the applicant's grant proposal.
            (2) Separate criteria.--Separate criteria shall be 
        established for the grants authorized under paragraphs (1) and 
        (2) of subsection (c).
    (e) Uses of Funds.--
            (1) States and counties.--
                    (A) Improvements in programs.--Grants awarded to 
                States and counties under subsection (c)(1) shall be 
                used to--
                            (i) simplify low-income family with 
                        children support program application, 
                        recertification, reporting, and verification 
                        rules;
                            (ii) create uniformity in eligibility 
                        criteria for low-income family with children 
                        support programs;
                            (iii) develop options for families to apply 
                        for low-income family with children support 
                        programs through the telephone, mail, 
                        facsimile, Internet, or electronic mail, and 
                        submit any recertifications or reports required 
                        for such families through these options;
                            (iv) co-locate eligibility workers for 
                        various low-income family with children support 
                        programs at strategically located sites;
                            (v) develop or enhance one-stop service 
                        centers for low-income family with children 
                        support programs, including establishing 
                        evening and weekend hours at these centers; and
                            (vi) improve training of staff in low-
                        income families with children support programs 
                        to enhance their ability to enroll eligible 
                        applicants in low-income family with children 
                        support programs, provide case management, and 
                        refer eligible applicants to other appropriate 
                        programs.
                    (B) Customer surveys.--
                            (i) In general.--A grant awarded to a State 
                        or county under subsection (c)(1) shall be used 
                        to carry out a customer survey.
                            (ii) Model surveys.--The customer survey 
                        under clause (i) of this subparagraph shall be 
                        modeled after a form developed by the Secretary 
                        under subsection (g).
                            (iii) Reports to secretary.--Not later than 
                        1 year after a State or county is awarded a 
                        grant under subsection (c)(1), and annually 
                        thereafter, the State or county shall submit a 
                        report to the Secretary detailing the results 
                        of the customer survey carried out under clause 
(i) of this subparagraph.
                            (iv) Reports to public.--A State or county 
                        receiving a grant under subsection (c)(1) and 
                        the Secretary shall make the report required 
                        under clause (iii) of this subparagraph 
                        available to the public.
                            (v) Public comment.--A State or county 
                        receiving a grant under subsection (c)(1) shall 
                        accept public comments and hold public hearings 
                        on the report made available under clause (iv) 
                        of this subparagraph.
                    (C) Tracking systems.--
                            (i) In general.--A grant awarded to a State 
                        or county under subsection (c)(1) shall be used 
                        to implement a tracking system to determine the 
                        level of participation in low-income family 
                        with children support programs of the eligible 
                        population.
                            (ii) Reports.--Not later than 1 year after 
                        a State or county is awarded a grant under 
                        subsection (c)(1), and annually thereafter, the 
                        State or county shall submit a report to the 
                        Secretary detailing the effectiveness of the 
                        tracking system implemented under clause (i) of 
                        this subparagraph.
                    (D) In-person interviews.--A State or county 
                awarded a grant under subsection (c)(1) may expend 
funds made available under the grant to provide for reporting and 
recertification procedures through the telephone, mail, facsimile, 
Internet, or electronic mail.
                    (E) Jurisdiction-wide implementation.--
                            (i) In general.--A grant awarded to a State 
                        or county under subsection (c)(1) shall be used 
                        for activities throughout the jurisdiction.
                            (ii) Exception.--A State or county awarded 
                        a grant under subsection (c)(1) may use grant 
                        funds to develop one-stop service centers and 
                        telephone, mail, facsimile, Internet, or 
                        electronic mail application and renewal 
                        procedures for low-income family with children 
                        support programs without regard to the 
                        requirements of clause (i) of this 
                        subparagraph.
                    (F) Supplement not supplant.--Funds provided to a 
                State or county under a grant awarded under subsection 
                (c)(1) shall be used to supplement and not supplant 
                other State or county public funds expended to provide 
                support services for low-income families.
            (2) Nonprofits and localities.--A grant awarded to a 
        nonprofit or locality under subsection (c)(2) shall be used 
        to--
                    (A) develop one-stop service centers for low-income 
                family with children support programs in cooperation 
                with States and counties; or
                    (B) provide information about and referrals to low-
                income family with children support programs through 
                the dissemination of materials at strategic locations, 
                including schools, clinics, and shopping locations.
    (f) Application.--
            (1) In general.--Each applicant desiring a grant under 
        paragraph (1) or (2) of subsection (c) shall submit an 
        application to the Secretary at such time, in such manner, and 
        accompanied by such information as the Secretary may reasonably 
        require.
            (2) States and counties.--
                    (A) Non-federal share.--Each State or county 
                applicant shall provide assurances that the applicant 
                will pay the non-Federal share of the activities for 
                which a grant is sought.
                    (B) Partnerships.--Each State or county applicant 
                shall submit a memorandum of understanding 
                demonstrating that the applicant has entered into a 
                partnership to coordinate its efforts under the grant 
                with the efforts of other State and county agencies 
                that have responsibility for providing low-income 
                families with assistance or benefits.
    (g) Duties of the Secretary.--
            (1) Survey form.--The Secretary, in cooperation with other 
        relevant agencies, shall develop a customer survey form to 
        determine whether low-income families--
                    (A) encounter any impediments in applying for or 
                renewing their participation in low-income family with 
                children support programs; and
                    (B) are unaware of low-income family with children 
                support programs for which they are eligible.
            (2) Reports.--
                    (A) Annual reports.--Not later than 1 year after 
                the date of enactment of this Act, and annually 
                thereafter, the Secretary shall submit a report to 
                Congress describing the uses of grant funds awarded 
                under this section.
                    (B) Results of tracking systems and surveys.--The 
                Secretary shall submit a report to Congress detailing 
                the results of the tracking systems implemented and 
                customer surveys carried out by States and counties 
                under subsection (e) as the information becomes 
                available.
    (h) Miscellaneous.--
            (1) Matching funds.--Matching funds required from a State 
        or county awarded a grant under subsection (c)(1) of this 
        section may--
                    (A) include in-kind services and expenditures by 
                municipalities and private entities; and
                    (B) be considered a qualified State expenditure for 
                purposes of determining whether the State has satisfied 
                the maintenance of effort requirements of the temporary 
                assistance for needy families program under section 
                409(a)(7) of the Social Security Act (42 U.S.C. 
                609(a)(7)).
            (2) Limitation on expenditures.--Subject to paragraph (3) 
        of this subsection, not more than 20 percent of a grant awarded 
        under subsection (c) shall be expended on customer surveys or 
        tracking systems.
            (3) Reversion of funds.--Any funds not expended by a 
        grantee within 2 years after awarded a grant 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 2-year time period to expend funds.
            (4) Nonapportionment.--Notwithstanding any other provision 
        of law, a State, county, locality, or nonprofit awarded a grant 
        under subsection (c) is not required to apportion the costs of 
        providing information about low-income family with children 
        support programs among all low-income family with children 
        support programs.
            (5) Administrative costs of the secretary.--Not more than 5 
        percent of the funds appropriated to carry out this section 
        shall be expended on administrative costs of the Secretary.
    (i) Limitations on Authorization of Appropriations.--There is 
authorized to be appropriated to carry out this section not more than 
$300,000,000 for fiscal years 2003 through 2007.

SEC. 102. ASSESSMENTS FOR TANF RECIPIENTS.

    Section 408(b) (42 U.S.C. 608(b)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Assessment.--The State agency responsible for 
        administering the State program funded under this part shall, 
        for each recipient of assistance under the program who is a 
        head of household, make an initial assessment of the skills, 
        prior work experience, and circumstances related to the 
        employability of the recipient, including physical or mental 
        impairments, proficiency in English, child care needs, and 
        whether the recipient is a victim of domestic violence.''; and
            (2) by striking paragraph (4).

SEC. 103. REVISION OF WORK ACTIVITIES.

    (a) In General.--Section 407(d) (42 U.S.C. 607(d)) is amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) transitional work experience leading to jobs that 
        provide an income of not less than 250 percent of the poverty 
        line;'';
            (2) by striking paragraph (7) and inserting the following:
            ``(7) voluntary participation in a community service 
        program;'';
            (3) in paragraph (8), by striking ``(not to exceed 12 
        months with respect to any individual)''; and
            (4) by striking paragraphs (10) through (12) and inserting 
        the following:
            ``(10) participation in a State or Federal work-study 
        program under part C of title IV of the Higher Education Act of 
        1965;'';
            ``(11) education, including not more than 6 hours of home 
        study per week, in the case of a recipient who is enrolled--
                    ``(A) at an elementary or secondary school (as 
                defined in the Elementary and Secondary Education Act 
                of 1965);
                    ``(B) in a course of study leading to adult 
                literacy, English as a second language, or a 
                certificate of high school equivalency; or
                    ``(C) at an institution of higher education (as 
                defined in section 102 of the Higher Education Act of 
                1965), regardless of the content of the course of 
                study;
            ``(12) the provision of appropriate care to a child who has 
        a disability or a serious health condition (as defined in 
        section 101(11) of the Family Medical Leave Act) or has not 
        attained 6 years of age, by a recipient who is a parent or 
        caretaker relative of the child; and
            ``(13) participation in treatment or an educational 
        activity designed to address a mental health problem, 
        disability, substance abuse, or domestic or sexual violence.''.
    (b) Conforming Amendments.--Section 407 (42 U.S.C. 607) is 
amended--
            (1) in subsection (b), by striking paragraph (5); and
            (2) in subsection (c)--
                    (A) in each of subparagraphs (A) and (B)(i) of 
                paragraph (1), by striking ``not fewer than'' and all 
                that follows through ``subsection (d),'';
                    (B) in paragraph (1)(B)(ii), by striking ``not 
                fewer than'' and all that follows through ``subsection 
                (d)''; and
                    (C) in paragraph (2), by striking subparagraph (D).

SEC. 104. PROVISION OF INTERPRETATION AND TRANSLATION SERVICES.

    (a) In General.--Section 408(a) (42 U.S.C. 608(a) is amended by 
adding at the end the following:
            ``(12) Provision of interpretation and translation 
        services.--A State to which a grant is made under section 
        403(a) for a fiscal year shall provide appropriate 
        interpretation and translation services at any office of the 
        State program funded under this part that is responsible for 
        handling the cases of 100 or more recipients of assistance 
        under the program who share a native language that is not 
        English.''.
    (b) Penalty.--Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) 
is amended by adding at the end the following: ``The applicable 
percentage otherwise in effect with respect to a State for a fiscal 
year shall be increased by 5 percentage points if the Secretary 
determines that in the preceding fiscal year the State failed to comply 
with section 408(a)(12).''.

     TITLE II--STRENGTHENING FAIR TREATMENT AND ANTIDISCRIMINATION 
                              PROTECTIONS

   Subtitle A--Strengthening and Streamlining of Antidiscrimination 
                              Protections

SEC. 201. REQUIREMENT TO ESTABLISH EXPEDITED PROCESS FOR DISCRIMINATION 
              COMPLAINTS.

    (a) In General.--Section 408 (42 U.S.C. 608) is further amended by 
adding at the end the following:
            ``(13) Requirement to establish expedited process for 
        discrimination complaints.--
                    ``(A) Intake.--A State to which a grant is made 
                under section 403 shall establish 1 central location at 
                which a recipient of assistance under the State program 
                funded under this part may file with the State and have 
                adjudicated a complaint alleging discriminatory 
                treatment under the program.
                    ``(B) Deadlines.--
                            ``(i) Within 30 days after a recipient 
                        files a complaint pursuant to subparagraph (A), 
the State shall notify the recipient that the State has received the 
complaint.
                            ``(ii) Within 60 days after the State 
                        receives a complaint filed pursuant to 
                        subparagraph (A), the State shall begin to 
                        investigate the complaint.
                            ``(iii) Within 90 days after the State 
                        receives a complaint filed pursuant to 
                        subparagraph (A), the State shall adjudicate 
                        the complaint.
            ``(3) No interruption in assistance while complaint is 
        pending.--During the pendency of a complaint filed pursuant to 
        paragraph (1), assistance to any recipient under a State 
        program funded under this part shall not be affected by reason 
        of the complaint.''.
    (b) Penalty.--Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) 
is amended by adding at the end the following: ``The applicable 
percentage otherwise in effect with respect to a State for a fiscal 
year shall be increased by 5 percentage points if the Secretary 
determines that in the preceding fiscal year the State failed to comply 
with section 408(a)(13).''.

SEC. 202. ESTABLISHMENT OF STANDARDIZED, FAIR SANCTION PROCESS.

    (a) Requirement To Provide Notice of Rights of Recipients, and 
Train Program Personnel in Respecting the Rights.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)) is 
        further amended by adding at the end the following:
            ``(14) Requirement to provide notice of rights of 
        recipients, and train program personnel to carry out program 
        consistent with the rights.--A State to which a grant is made 
        under section 403 shall--
                    ``(A) notify each recipient of assistance under the 
                program of the rights of recipients under all laws 
                applicable to the activities of the State program 
                funded under this part, and shall provide the notice--
                            ``(i) to a recipient when the recipient 
                        enters the program;
                            ``(ii) to all such recipients on a 
                        semiannual basis; and
                            ``(iii) orally and in writing, in the 
                        native language of the recipient and at a 6th 
                        grade level, and if the native language is not 
                        English, a culturally competent translation 
                        shall be provided; and
                    ``(B) train all program personnel on a regular 
                basis in how to carry out the program consistent with 
                the rights.''.
            (2) Penalty.--Section 409(a)(7)(B)(ii) (42 U.S.C. 
        609(a)(7)(B)(ii)) is amended by adding at the end the 
        following: ``The applicable percentage otherwise in effect with 
        respect to a State for a fiscal year shall be increased by 5 
        percentage points if the Secretary determines that in the 
        preceding fiscal year the State failed to comply with section 
        408(a)(14).''.
    (b) Review and Conciliation Process.--
            (1) Requirement.--Section 408(a) (42 U.S.C. 608(a)) is 
        further amended by adding at the end the following:
            ``(15) Review and conciliation process requirements.--A 
        State to which a grant is made under section 403 shall not 
        impose a sanction against a person under the State program 
        funded under this part, unless the State--
                    ``(A) has attempted at least twice (using at least 
                2 different methods) to notify the person of the 
                impending imposition of the sanction, the reason for 
                the proposed sanction, the amount of the sanction, the 
                length of time during which the proposed sanction would 
                be in effect, and the steps required to come into 
                compliance or to show good cause for noncompliance;
                    ``(B) has afforded the person an opportunity--
                            ``(i) to meet with the caseworker involved 
                        or another individual who has authority to 
                        determine whether to impose the sanction; and
                            ``(ii) to explain why the person did not 
                        comply with the requirement on the basis of 
                        which the sanction is to be imposed;
                    ``(C) has considered and taken any such explanation 
                into account in determining to impose the sanction;
                    ``(D) has specifically considered whether certain 
                conditions exist, such as a physical or mental 
                impairment, domestic violence, or limited proficiency 
                in English, that contributed to the noncompliance of 
                the person; and
                    ``(E) in determining whether to impose the 
                sanction, has used screening tools developed in 
                consultation with individuals or groups with expertise 
                in matters described in subparagraph (D).''.
            (2) Penalty.--Section 409(a) (42 U.S.C. 609(a)) is amended 
        by adding at the end the following:
            ``(15) Penalty for failure of state to use review and 
        conciliation process.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 for 
                a fiscal year has violated section 408(a)(15) during 
                the fiscal year, the Secretary shall reduce the grant 
                payable to the State under section 403(a)(1) for the 
                immediately succeeding fiscal year by an amount equal 
                to 5 percent of the State family assistance grant.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) with respect to a fiscal year based on the degree 
                of noncompliance.''.

SEC. 203. REQUIREMENT TO PROVIDE OPPORTUNITY TO APPEAL ADVERSE 
              DECISION.

    (a) In General.--Section 408(a) (42 U.S.C. 608(a) is further 
amended by adding at the end the following:
            ``(16) Requirement to provide opportunity to appeal adverse 
        decision.--A State to which a grant is made under section 403 
        shall provide an applicant or recipient of assistance under the 
        State program funded under this part with the opportunity to 
        appeal any adverse decision made with respect to the applicant 
        or recipient under the program.''.
    (b) Penalty.--Section 409(a) (42 U.S.C. 608(a)) is further amended 
by adding at the end the following:
            ``(16) Penalty for failure to provide opportunity to appeal 
        adverse decision.--If the Secretary determines that a State to 
        which a grant is made under section 403 for a fiscal year has 
        violated section 408(a)(16) during the fiscal year, the 
        Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 5 percent of the State family assistance 
        grant.''.
    (c) Requirement To Provide Recipients Performing a Work Activity 
With a Grievance Procedure.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a) is 
        further amended by adding at the end the following:
            ``(17) Requirement to provide recipients with a grievance 
        procedure.--A State to which a grant is made under section 403 
        shall provide an applicant or recipient of assistance under the 
        State program who is engaged in a work activity pursuant to 
        section 407 with the same grievance procedure that is available 
        to other workers at same site, or if there is no such procedure 
        available, shall establish a system that provides for timely 
        dispute resolution, does not limit preexisting fair hearing 
        rights, and allows for an anonymous proceeding in appropriate 
        circumstances.''.
            (2) Penalty.--Section 409(a)(7)(B)(ii) (42 U.S.C. 
        609(a)(7)(B)(ii)) is further amended by adding at the end the 
        following: ``The applicable percentage otherwise in effect with 
        respect to a State for a fiscal year shall be increased by 5 
        percentage points if the Secretary determines that in the 
        preceding fiscal year the State failed to comply with section 
        408(a)(17).''.

SEC. 204. NOTIFICATION OF POTENTIAL SERVICES AND PROTECTIONS.

    (a) State Plan Required To Describe How States Will Notify 
Applicants and Recipients of Their Rights Under the Program and of 
Potential Benefits and Services Available Under the Program.--Section 
402(a)(1)(B)(iii) (42 U.S.C. 602(a)(1)(B)(iii)) is amended by inserting 
``and will notify applicants and recipients of assistance under the 
program of the rights of individuals under all laws applicable to 
program activities and of all potential benefits and services available 
under the program'' before the period.
    (b) Requirement To Provide Notice to Applicants and Recipients of 
Rights and of Potential Program Benefits and Services, and Train 
Program Personnel in Respecting the Rights.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)) is 
        further amended by adding at the end the following:
            ``(18) Requirement to provide notice to applicants and 
        recipients of rights and of potential program benefits and 
        services, and train program personnel to respect the rights.--A 
        State to which a grant is made under section 403 shall--
                    ``(A) notify each applicant for, and each recipient 
                of assistance under the program of the rights of 
                applicants and recipients under all laws applicable to 
                the activities of the State program funded under this 
                part (including the right to claim good cause 
                exceptions to program requirements), and shall provide 
                the notice--
                            ``(i) to a recipient when the recipient 
                        enters the program;
                            ``(ii) to all such recipients on a 
                        semiannual basis; and
                            ``(iii) orally and in writing, in the 
                        native language of the recipient and at a 6th 
                        grade level, and if the native language is not 
                        English, a culturally competent translation 
                        shall be provided; and
                    ``(B) train all program personnel on a regular 
                basis in how to carry out the program consistent with 
                the rights.''.
            (2) Penalty.--Section 409(a)(7)(B)(ii) (42 U.S.C. 
        609(a)(7)(B)(ii)) is amended by adding at the end the 
        following: ``The applicable percentage otherwise in effect with 
        respect to a State for a fiscal year shall be increased by 5 
        percentage points if the Secretary determines that in the 
        preceding fiscal year the State failed to comply with section 
        408(a)(18).''.

SEC. 204. PENALTIES AGAINST INDIVIDUALS FOR UNJUSTIFIED REFUSAL TO 
              WORK; ADDITIONAL JUSTIFICATIONS.

    (a) In General.--Section 407(e) (42 U.S.C. 607(e)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) In general.--Except as otherwise provided in this 
        subsection, if an individual in a family receiving assistance 
        under the State program funded under this part refuses to 
        engage in work required in accordance with this section, the 
        State shall, subject to such good cause and other exceptions as 
        the State may establish, reduce the amount of assistance 
        otherwise payable to the family on a pro rata basis, but to not 
        less than the amount that would be payable to a family with the 
        same number of children but with no adults, with respect to any 
        period during a month in which the individual so refuses.'';
            (2) in paragraph (2)--
                    (A) by striking ``Exception'' and inserting ``Child 
                care exception''; and
                    (B) by striking ``proves that the individual has a 
                demonstrated inability (as determined by the State)'' 
                and inserting ``certifies that the individual is 
                unable''; and
            (3) by adding at the end the following:
            ``(3) Additional child care exceptions.--Notwithstanding 
        paragraph (1), a State may not reduce or terminate assistance 
        under the State program funded under this part based on a 
        refusal of an individual to engage in work required in 
        accordance with this section if the individual is a custodial 
        parent or caretaker relative caring for--
                    ``(A) a child who has a disability or a serious 
                health condition (as defined in section 101(11) of the 
                Family Medical Leave Act), and the individual does not 
                have meaningful access to safe, appropriate, 
                affordable, and quality care for the child; or
                    ``(B) a child who has attained 6 years of age, and 
                the individual does not have meaningful access to safe, 
                appropriate, affordable, and quality after-school or 
                summer care for the child.
            ``(4) Mental health problem, disability, substance abuse, 
        or domestic or sexual violence exception.--Notwithstanding 
        paragraph (1), a State may not reduce or terminate assistance 
        under the State program funded under this part based on the 
        failure of any individual who has a mental health problem, 
        disability, or substance abuse problem, or who is a victim of 
        sexual or domestic violence to engage in work required in 
        accordance with this section if--
                    ``(A) the individual is in the process of being 
                screened or assessed for the mental health problem, 
                disability, substance abuse problem, or sexual or 
                domestic violence situation but the screening or 
                assessment has not been completed;
                    ``(B) the individual has not been offered 
                appropriate treatment, counseling, vocational 
                rehabilitation, job training, and other services to 
                address the problem or disability; or
                    ``(C) the individual cannot comply because of the 
                need to seek medical, legal, or other services in 
                relation to the mental health problem, disability, or 
                sexual or domestic violence situation.
            ``(5) Minimum wage exception.--Notwithstanding paragraph 
        (1), a State may not impose a sanction under the State program 
        funded under this part on the basis of the refusal of an 
        individual to accept any employment (including any employment 
        offered under the program), if the wage rate for the employment 
        does not equal or exceed the greater of--
                    ``(A) the minimum wage rate then in effect under 
                section 6 of the Fair Labor Standards Act of 1938; or
                    ``(B) any minimum wage rate prescribed by or under 
                the law of the State.
            ``(6) Discrimination exception.--
                    ``(A) In general.--Notwithstanding paragraph (1), a 
                State may not reduce or terminate assistance under the 
                State program funded under this part based on the 
                failure of any individual to engage in work required in 
                accordance with this section if the individual 
                certifies in a manner described in subparagraph (B) 
                that the individual has left or refused work based on 
                discrimination.
                    ``(B) Certification.--An individual may provide a 
                certification required by subparagraph (A) by sworn 
                written statement or by providing other documentation, 
                including a police or court record or documentation by 
                a shelter worker, an employee of a victim assistance 
                program, an attorney, a member of the clergy, or a 
                medical or other professional from whom the individual 
                has sought assistance as a victim.''.
    (b) Conforming Amendments.--Section 409(a)(11) (42 U.S.C. 
609(a)(11)) is amended--
            (1) in the paragraph heading, by striking ``who cannot 
        obtain child care for child under age 6'' and inserting ``with 
        justified refusal to work''; and
            (2) in subparagraph (A), by striking ``407(e)(2)'' and 
        inserting ``407(e)''.

SEC. 205. REQUIREMENT TO PROVIDE INFORMATION TO INDIVIDUALS WHO ARE, OR 
              ARE AT RISK OF BEING, SANCTIONED.

    (a) In General.--Section 408(a) (42 U.S.C. 608(a)) is further 
amended by adding at the end the following:
            ``(19) State required to provide information to individual 
        who has been, or is at risk of being sanctioned.--A State to 
        which a grant is made under section 403 shall provide to any 
        individual who has been, or is at risk of being, sanctioned 
        under the State program funded under this part for 
        noncompliance with a program requirement, orally and in 
        writing, at not more than a 6th grade level in the native 
        language of the individual (and if the native language is not 
        English, a culturally competent translation shall be provided), 
        a notice--
                    ``(A) of the noncompliance, the existence of good 
                cause exceptions to the requirement, and how to claim 
                such an exception;
                    ``(B) that program requirements may be waived for 
                people dealing with a mental health, disability, 
                substance abuse, domestic violence, or sexual assault 
                issue;
                    ``(C) that an individual dealing with a mental 
                health, disability, substance abuse, domestic violence, 
                or sexual assault issue may request (or if the 
                individual has left or been removed from the program, 
                may return to the program and request) to be assessed 
                under the program for services to address those issues, 
                including appropriate treatment, counseling, vocational 
                rehabilitation, job training, or other services; and
                    ``(D) that the State is required to keep any such 
                information strictly confidential.''.
    (b) Penalty.--Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) 
is further amended by adding at the end the following: ``The applicable 
percentage otherwise in effect with respect to a State for a fiscal 
year shall be increased by 5 percentage points if the Secretary 
determines that in the preceding fiscal year the State failed to comply 
with section 408(a)(19).''.

SEC. 206. NONDISCRIMINATION.

    (a) Rule of Interpretation.--Section 408(d) (42 U.S.C. 608(d) is 
amended by adding at the end the following: ``This part shall not be 
construed to supersede any provision of Federal or State civil rights 
law.''.
    (b) Requirements.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a) is 
        amended by adding at the end the following:
            ``(20) Nondiscrimination.--A State to which a grant is made 
        under section 403 shall ensure equitable treatment of needy 
        families in the State, and shall not discriminate among 
        families based on marital status or applicant or recipient 
        status.''.
            (2) Penalty.--Section 409(a)(7)(B)(ii) (42 U.S.C. 
        609(a)(7)(B)(ii)) is amended by adding at the end the 
        following: ``The applicable percentage otherwise in effect with 
        respect to a State for a fiscal year shall be increased by 5 
        percentage points if the Secretary determines that in the 
        preceding fiscal year the State failed to comply with section 
        408(a)(20).''.

SEC. 207. BAN ON DIVERSION OF POTENTIAL APPLICANTS FOR ASSISTANCE.

    (a) In General.--Section 408(a) (42 U.S.C. 608(a)) is further 
amended by adding at the end the following:
            ``(21) Ban on diversion of potential applicants for 
        assistance.--A State may not refuse to accept, at the time of 
        application, an application for assistance from the State 
        program funded under this part, or give an individual reason to 
        believe that, at the time of application, the State will not 
        unconditionally accept such an application from any 
        individual.''.
    (b) Penalty.--Section 409(a) (42 U.S.C. 608(a)) is further amended 
by adding at the end the following:
            ``(21) Penalty for diverting potential applicant for 
        assistance.--If the Secretary determines that a State to which 
        a grant is made under section 403 for a fiscal year has 
        violated section 408(a)(21) during the fiscal year, the 
        Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 5 percent of the State family assistance 
        grant.''.

                     Subtitle B--Related Provisions

SEC. 211. BAN ON PENALIZING ENTIRE FAMILY FOR MISCONDUCT OF 1 FAMILY 
              MEMBER.

    (a) In General.--Section 408(a) (42 U.S.C. 608(a)) is further 
amended by adding at the end the following:
            ``(22) Ban on penalizing entire family for misconduct of 1 
        family member.--In imposing a penalty under a State program 
        funded under this part for refusal of an individual in a family 
        to comply with a program requirement, the State may reduce the 
        amount of assistance otherwise payable to the family on a pro 
        rata basis with respect to any period during a month in which 
        the individual so refuses, but may not reduce the amount of the 
        assistance to less than the amount that would be payable to the 
        family with the same number of children but with no adults.''.
    (b) Penalty.--Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) 
is amended by adding at the end the following: ``The applicable 
percentage otherwise in effect with respect to a State for a fiscal 
year shall be increased by 5 percentage points if the Secretary 
determines that in the preceding fiscal year the State failed to comply 
with section 408(a)(22).''.

SEC. 212. ELIMINATE DOUBLE JEOPARDY FOR RECIPIENTS WITH PAST DRUG 
              OFFENSES.

    Section 115 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (42 U.S.C. 862a) is repealed.

SEC. 213. 5-YEAR TIME LIMIT.

    (a) Removal of Limitations.--
            (1) Elimination of limitation on hardship exception.--
        Section 408(a)(7)(C) (42 U.S.C. 608(a)(7)(C)) is amended by 
        striking clause (ii) and redesignating clause (iii) as clause 
        (ii).
            (2) Compliance exception.--Section 408(a)(7) (42 U.S.C. 
        608(a)(7)) is amended by adding at the end the following:
                    ``(H) Compliance exception.--In determining the 
                number of months for which an individual has received 
                assistance under the State program funded under this 
                part, the State shall disregard any month throughout 
                which the individual is in compliance with all 
                applicable requirements of the State program.''.
    (b) Uniform Duration of Assistance.--Section 408(a)(7)(E) (42 
U.S.C. 608(a)(7)(E)) is amended to read as follows:
                    ``(E) Requirement to provide assistance for 5 
                years.--Notwithstanding section 407(e), a State to 
                which a grant is made under section 403 shall not 
                impose a limitation of fewer than 60 months on the 
                period for which a recipient is eligible for assistance 
                under the State program funded under this part.''.
    (c) Protection Against Recession.--Section 408(a)(7) (42 U.S.C. 
608(a)(7)), as amended by subsection (a)(2) of this section, is amended 
by adding at the end the following:
                    ``(I) Special rules relating to month in which 
                unemployment is high or has increased sharply over 
                prior 2 years.--
                            ``(i) Clock stopped for current 
                        recipients.--In determining the number of 
                        months for which an individual has received 
                        assistance under the State program funded under 
                        this part, the State shall disregard any month 
                        that is a trigger month.
                            ``(ii) Treatment of former recipients who 
                        reached time limit.--
                                    ``(I) Notice; determination of 
                                eligibility.--On the occurrence of a 
                                trigger month, the State shall--
                                            ``(aa) issue a public 
                                        notice that a trigger month has 
                                        occurred; and
                                            ``(bb) on request of an 
                                        individual who had become 
                                        ineligible for assistance under 
                                        the State program funded under 
                                        this part by reason of this 
                                        paragraph, determine the 
                                        eligibility of the individual 
                                        for such assistance as if the 
                                        individual had received such 
                                        assistance for 59 months.
                                    ``(II) Additional month of 
                                assistance for otherwise eligible 
                                former recipients.--If the individual 
                                is so determined to be eligible for 
                                such assistance, the State shall, 
                                notwithstanding subparagraph (A), 
                                provide such assistance to the 
                                individual for any month that is a 
                                trigger month, but shall not provide 
                                such assistance to the individual for 
                                any month that is not a trigger month.
                            ``(iii) Trigger month.--In this 
                        subparagraph, the term `trigger month' means, 
with respect to a State, any month for which the unemployment rate of 
the State--
                                    ``(I) is at least 5.5 percent; or
                                    ``(II) has increased by the lesser 
                                of 50 percent, or 1.5 percentage 
                                points, over the lesser of the average 
                                rate of total unemployment in the State 
                                (seasonally adjusted) for the preceding 
                                fiscal year or the average unemployment 
                                rate of the State for the 2nd preceding 
                                fiscal year.''.

                   TITLE III--FAIRNESS FOR IMMIGRANTS

SEC. 301. TREATMENT OF ALIENS UNDER THE TANF PROGRAM.

    (a) Eligibility of Qualified Aliens for Benefits.--
            (1) Elimination of prohibition.--Section 402(b)(3) of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (8 U.S.C. 1612(b)(3)) is amended by striking 
        subparagraph (A) and redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively.
            (2) Exception to 5-year ban for qualified aliens.--Section 
        403(c)(2) of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)) is amended by 
        adding at the end the following:
                    ``(L) Assistance under a State program funded under 
                the program of block grants to States for temporary 
                assistance for needy families under part A of title IV 
                of the Social Security Act.''.
    (b) Benefits Not Subject to Reimbursement.--Section 423(d) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(8 U.S.C. 1138a note) is amended by adding at the end the following:
            ``(12) Benefits under part A of title IV of the Social 
        Security Act except for cash assistance provided to a sponsored 
        alien who is subject to deeming pursuant to section 408(h) of 
        the Social Security Act.''.
    (c) Treatment of Aliens.--Section 408 (42 U.S.C. 608) is amended by 
adding at the end the following:
    ``(h) Special Rules Relating to the Treatment of 213A Aliens.--
            ``(1) In general.--In determining whether a 213A alien is 
        eligible for cash assistance under a State program funded under 
        this part, and in determining the amount or types of such 
        assistance to be provided to the alien, the State shall apply 
        the rules of paragraphs (1), (2), (3), (5), and (6) of 
        subsection (f) of this section by substituting `213A' for `non-
        213A' each place it appears, subject to section 421(e) of the 
        Personal Responsibility and Work Opportunity Reconcilation Act 
        of 1996, and subject to section 421(f) of such Act (which shall 
        be applied by substituting `section 408(h) of the Social 
        Security Act' for `subsection (a)').
            ``(2) 213A alien defined.--An alien is a 213A alien for 
        purposes of this subsection if the affidavit of support or 
        similar agreement with respect to the alien that was executed 
        by the sponsor of the alien's entry into the United States was 
        executed pursuant to section 213A of the Immigration and 
        Nationality Act.''.
    (d) Conforming Amendments.--
            (1) Amendments to prwora.--Section 402 of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (8 U.S.C. 1612) is amended--
                    (A) in subsection (b)(2)(A)(i) by striking 
                ``(3)(C)'' and inserting ``(3)(B)'';
                    (B) in subsection (b)(2)(A)(ii) by striking 
                ``(C))'' and inserting ``(B))''; and
                    (C) in subsection (b)(2)(E) by striking ``(3)(C)'' 
                and inserting ``(3)(B)''.
            (2) Amendments to ssa.--
                    (A) Section 408 (42 U.S.C. 608) is amended by 
                striking subsections (e) and (f) and by redesignating 
                subsection (g) as subsection (e).
                    (B) Section 409(a)(7)(B)(i)(IV) (42 U.S.C. 
                609(a)(7)(B)(i)(IV)) is amended--
                            (I) by striking ``part,'' and inserting 
                        ``part and''; and
                            (II) by striking ``, and families of aliens 
                        lawfully present in the United States that 
                        would be eligible for such assistance but for 
                        the application of title IV of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996''.

SEC. 302. TREATMENT OF ALIENS UNDER THE SSI PROGRAM.

    (a) Eligibility of Qualified Aliens for Benefits.--
            (1) Elimination of prohibition.--Section 402(a) of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (8 U.S.C. 1612(a)) is amended--
                    (A) by striking paragraph (3)(A); and
                    (B) in paragraph (2) by striking subparagraphs 
                (D)(i), (E), and (H).
            (2) Exception to 5-year ban.--Section 403(c)(2) of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (8 U.S.C. 1613(c)(2)) is amended by adding at the end 
        the following:
                    ``(M) Assistance or benefits under the supplemental 
                security income program under title XVI of the Social 
                Security Act, including supplementary payments pursuant 
                to an agreement for Federal administration under 
                section 1616(a) of the Social Security Act and payments 
                pursuant to an agreement entered into under section 
                212(b) of Public Law 93-66 (commonly known as SSI).''.
    (b) Benefits Not Subject to Reimbursement.--Section 423(d) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(8 U.S.C. 1138a note) is further amended by adding at the end the 
following:
            ``(13) Assistance under the supplemental security income 
        program under title XVI of the Social Security Act, except 
        assistance provided to a sponsored alien who is subject to 
        deeming pursuant to section 1621 of the Social Security Act.''.
    (c) Conforming Amendments.--Section 402(b)(2)(F) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1612(b)(2)(F)) is amended by striking ``program defined in 
subsection (a)(3)(A) (relating to the supplemental security income 
program)'' and inserting ``supplemental security income program under 
title XVI of the Social Security Act, including supplementary payments 
pursuant to an agreement for Federal administration under section 
1616(a) of the Social Security Act and payments pursuant to an 
agreement entered into under section 212(b) of Public Law 93-66''.
    (d) Period for Attribution of Sponsor's Income and Resources.--
Section 1621 (42 U.S.C. 1382j) is amended in each of subsections (a), 
(c), (d), and (e), by striking ``3'' and inserting ``5''.

SEC. 303. INCLUSION OF PARTICIPATION IN ENGLISH-AS-A-SECOND-LANGUAGE 
              PROGRAM AMONG PERMISSIBLE WORK ACTIVITIES.

    Section 407(d) (42 U.S.C. 607(d)) is further amended--
            (1) by striking ``and'' at the end of paragraph (11);
            (2) by striking the period at the end of paragraph (12) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(14) participation in a program in which English is 
        taught as a second language.''.

                  TITLE IV--ENCOURAGE RACIAL EQUALITY

SEC. 401. RACIAL PERFORMANCE MEASURE AS EVALUATION CRITERION IN 
              DETERMINING HIGH PERFORMANCE BONUS.

    (a) Eligibility Conditioned on Provision of Data Disaggregated by 
Race.--Section 403(a)(4)(A) (42 U.S.C. 603(a)(4)(A)) is amended by 
inserting ``, and complies with the last sentence of section 
411(a)(1)(A) with respect to race''.
    (b) Racial Performance Measure as Evaluation Criterion.--Section 
403(a)(4)(C) (42 U.S.C. 603(a)(4)(C)) is amended--
            (1) by striking ``Not later than 1 year after the date of 
        the enactment of the Personal Responsibility and Work 
        Opportunity Reconcilation Act of 1996, the'' and inserting the 
        following:
                            ``(i) In general.--The''; and
            (2) by adding at the end the following:
                            ``(ii) Areas to be measured.--The formula 
                        shall, at a minimum, measure State performance 
                        in each of the following areas:
                                    ``(I) Employment and wages.
                                    ``(II) Educational access and 
                                achievement.
                                    ``(III) Child care, transportation 
                                and other support service expenditures.
                                    ``(IV) Sanction rates.
                            ``(iii) Categories of recipients.--The 
                        formula shall take into account State 
                        performance in each area described in clause 
                        (ii), with respect to each of the following 
                        categories of recipients of assistance under 
                        the State program:
                                    ``(I) White/non-Hispanic.
                                    ``(II) Hispanic.
                                    ``(III) African-American/black.
                                    ``(IV) Native American.
                                    ``(V) Asian-American/Pacific 
                                Islander.
                            ``(iv) Characteristics of formula.--The 
                        formula shall be designed so that--
                                    ``(I) if the performance of a State 
                                for a bonus year in an area described 
                                in clause (ii) with respect to a 
                                category of recipients set forth in 
                                clause (iii) differs by 5 percentage 
                                points or more from such performance 
                                for the bonus year with respect to any 
                                other category of recipients, then the 
                                State shall be considered to have 
                                failed that measure of State 
                                performance with respect to the bonus 
                                year; and
                                    ``(II) if a State fails 2 or more 
                                of the measures of State performance 
                                with respect to a bonus year, then the 
                                State shall not be eligible for a grant 
                                under this paragraph for the bonus 
                                year.''.

SEC. 402. BAN ON VIOLATING ANTIDISCRIMINATION LAW.

    (a) In General.--Section 408(a) (42 U.S.C. 608(a) is further 
amended by adding at the end the following:
            ``(23) Ban on violating antidiscrimination law.--A State to 
        which a grant is made under section 403(a) shall not violate an 
        antidiscrimination law (as defined by the Office of Civil 
        Rights in the Department of Health and Human Services) in 
        carrying out the State program funded under this part.''.
    (b) Penalty.--Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) 
is amended by adding at the end the following: ``The applicable 
percentage otherwise in effect with respect to a State for a fiscal 
year shall be increased by 5 percentage points if the Office of Civil 
Rights in the Department of Health and Human Services determines that 
in the preceding fiscal year the State failed to comply with section 
408(a)(23).''.

SEC. 403. DATA COLLECTION AND REPORTING.

    (a) Collection of Data on Race, Ethnicity/National Origin, Gender, 
Primary Language, and Educational Level.--Section 411(a)(1)(A) (42 
U.S.C. 611(a)(1)(A)) is amended by adding at the end the following new 
sentence:
                ``In complying with this paragraph, each eligible State 
                must ensure that the case record information required 
                by this subparagraph is reported in a manner that 
                permits analysis of the information by race, ethnicity/
                national origin, primary language, gender, and 
                educational level, including analysis using a 
                combination of these factors.''.
    (b) Collection of Data on Primary Language.--Section 411(a)(1)(A) 
(42 U.S.C. 611(a)(1)(A)) is amended by striking clauses (vii) and 
(viii) and inserting the following:
                            ``(vii) The race, educational level, and 
                        primary language of each adult in the 
                        family.''.
                            ``(viii) The race, educational level, and 
                        primary language of each child in the 
                        family.''.
    (c) Collection of Data on Diversion.--Section 411(a)(1) (42 U.S.C. 
611(a)(1)) is amended by redesignating subparagraph (B) as subparagraph 
(C) and inserting after subparagraph (A) the following:
                    ``(B) Data on diversion.--Each eligible State shall 
                collect on a monthly basis, and report to the Secretary 
                on a quarterly basis, disaggregated case record 
                information on the number of individuals who apply for 
                but do not receive assistance, the reason such 
assistance was not provided, and the overall percentage of applications 
for assistance that are approved compared to those that are 
disapproved. In complying with the preceding sentence, the State shall 
ensure that the case record information is reported in a manner that 
permits analysis of such information by race, ethnicity/national 
origin, primary language, gender, and educational level, including 
analysis using a combination of these factors.''.
    (d) Collection of Data on Participation in Employment, Education, 
and Training.--Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is 
amended--
            (1) by striking clause (v) and inserting the following:
                            ``(v) The employment status, occupation (as 
                        defined by the current Federal Standard 
                        Occupational Classification system), and 
                        earnings of each employed adult in the 
                        family.''; and
            (2) by striking clause (xi) and inserting the following:
                            ``(xi) If the adults participated in, and 
                        the numbers of hours per week of participation 
                        in, the following activities, including, to the 
                        extent such information is available, 
                        information on the specific type of job, or 
                        education or training program.''.
    (e) Collection of Data on Families Leaving Welfare.--
            (1) Case closure reasons.--Section 411(a)(1) (42 U.S.C. 
        611(a)(1)), as amended by the preceding provisions of this Act, 
        is amended by redesignating subparagraph (C) as subparagraph 
        (D) and inserting after subparagraph (B) the following:
                    ``(C) Development of comprehensive list of case 
                closure reasons.--
                            ``(i) The Secretary shall develop, in 
                        consultation with States and policy experts, a 
                        comprehensive list of reasons why individuals 
                        leave State programs funded under this part. 
                        The full range of reasons for case closures, 
                        including the following reasons, shall be 
                        considered in making the list as comprehensive 
                        as possible: lack of access to specific 
                        programs or services such as child care, 
                        transportation, or English as a second language 
                        classes for clients with limited English 
                        proficiency; clients' medical or health 
                        problems; clients' family responsibilities such 
                        as caring for a disabled family member; changes 
                        in eligibility status; or different 
                        administrative reasons. The list shall be aimed 
                        at substantially reducing the number of case 
                        closures under the programs for which a reason 
                        is not known. Further, States shall undertake 
                        efforts to improve their tracking of reasons 
                        for case closures and shall report on such 
                        efforts in the quarterly reports submitted 
                        pursuant to this subsection.
                            ``(ii) The Secretary shall promulgate for 
                        public comment regulations that list the new 
                        case closure reasons to be used in accordance 
                        with subparagraph (A)(xvi) no later than 
                        December 2004. The regulations also shall 
                        direct States to report on efforts to improve 
                        State tracking of reasons for case closures, 
                        including the identification of additional 
                        reasons for case closures not included on the 
                        list generated under this subparagraph.
                            ``(iii) The Secretary, through consultation 
                        and analysis of quarterly State reports, shall 
                        review on an annual basis whether the list of 
                        case closure reasons requires modification. To 
                        the extent the Secretary determines the need to 
                        modify the list of case closure reasons, such 
                        changes shall be published for notice and 
                        comment.''.
            (2) Inclusion in quarterly state reports.--Section 
        411(a)(1)(A)(xvi) (42 U.S.C. 611(a)(1)(A)(xvi)) is amended--
                    (A) by striking ``or'' at the end of subclause 
                (IV);
                    (B) by striking the period at the end and inserting 
                ``; or''; and
                    (C) by adding at the end the following:
                                    ``(VI) a reason specified in the 
                                list developed under subparagraph 
                                (C).''.
            (3) Samples.--Section 411(a)(1)(A)(xvi) (42 U.S.C. 
        611(a)(1)(A)(xvi)) is amended to read as follows:
                            ``(xvi) Whether the family left the 
                        program, and if so, whether the family left due 
                        to--
                                    ``(I) employment;
                                    ``(II) marriage;
                                    ``(III) the prohibition set forth 
                                in section 408(a)(7);
                                    ``(IV) sanction;
                                    ``(V) State policy; or
                                    ``(VI) a reason specified in the 
                                list developed under section 
                                411(a)(1)(C).''.
    (f) Improving Data Quality.--Section 411(a)(1) (42 U.S.C. 
611(a)(1)) is amended by adding at the end the following:
                    ``(D) Quality of data.--Quarterly reports submitted 
                by each eligible State must describe what steps the 
                State has taken to ensure the accuracy of the data 
                submitted pursuant to this section.''.
    (g) Uniformity of Data.--Section 411(a)(1) (42 U.S.C. 611(a)(1)), 
as amended by subsection (f) of this section, is amended by adding at 
the end the following:
                    ``(E) Uniform data.--The Secretary shall report 
                annually on the progress toward the creation of a 
                common data collection instrument and common collection 
                methods to ensure that case record information is 
                reported by states in a standardized format, including 
                a timeline aimed at achieving this goal on or before 
September 30, 2006, with an assessment of barriers and costs of 
implementation.''.
    (h) Annual Reports by the Secretary.--Section 411(b)(2) (42 U.S.C. 
611(b)(2)) is amended by inserting ``, including the information 
submitted under section 411(a)(1)(A)(i) through (xvii) broken down by 
race, ethnicity/national origin, primary language, gender, and 
educational level'' before the semicolon.
    (i) Grants for Analysis of Data That Examines Racial, Ethnic, or 
Gender Differences in the Administration of State TANF Programs.--
Section 411 (42 U.S.C. 611) is amended by adding at the end the 
following:
    ``(c) Research and Analysis of Data.--
            ``(1) Research grants.--Grants shall be made available to 
        undertake research analyzing data submitted by States to 
        evaluate racial, ethnic, or gender differences in the 
        administration of the program funded under this part, including 
        differences in programs or services offered, employment and 
        earnings, and reasons for leaving assistance.
            ``(2) Public access to data.--The Secretary shall ensure 
        that the data submitted by States pursuant to subsection (a) is 
        made available to the public for analysis by creating a public 
        use database that includes all case record information. The 
        Secretary shall take steps to ensure that any identifying 
        information about individual recipients of assistance cannot be 
        accessed and proper privacy safeguards are established.''.

SEC. 404. ACCESS TO WELFARE; WELFARE OUTCOMES.

    Section 411 (42 U.S.C. 611) is amended by adding at the end the 
following:
    ``(c) Annual Reports on Welfare Access and Outcomes.--
            ``(1) State reports.--Not later than January 1 of each 
        fiscal year, each eligible State shall collect and report to 
        the Secretary, with respect to the preceding fiscal year, the 
        following information:
                    ``(A) The number of applications for assistance 
                from the State program funded under this part, the 
                percentage that are approved versus those that are 
                disapproved, and the reasons for disapproval, broken 
                down by race.
                    ``(B) A copy of all rules and policies governing 
                the State program funded under this part that are not 
                required by Federal law, and a summary of the rules and 
                policies, including the amounts and types of assistance 
                provided and the types of sanctions imposed under the 
                program.
                    ``(C) The types of occupations of, types of job 
                training received by, and types and levels of 
                educational attainment of recipients of assistance from 
                the State program funded under this part, broken down 
                by gender and race.
                    ``(D) The incidence of homelessness, of the use of 
                food pantries and soup kitchens, and of the use of 
                shelters among recipients of assistance from the State 
                program funded under this part and among individuals to 
                whom assistance under the State programs funded under 
                this part has ended within the past 12 months. The 
                information described in this subparagraph may be 
                provided by submitting disaggregated case record 
                information on a sample of families.
                    ``(E) The number of individuals to whom assistance 
                under the State program funded under this part has 
                ended during the year, broken down by the reasons why 
                the assistance has ended (including employment, 
                marriage, sanction, time limit, or State policy.
                    ``(F) The economic conditions of individuals to 
                whom assistance under the State programs funded under 
                this part has ended, including the types of occupations 
                of, the duration of employment of, the income of, the 
                benefits provided to, the types of job training 
                received by, the types and levels of educational 
                attainment of, and the incidence of homelessness, of 
                the use of food pantries or soup kitchens, and of the 
                use of shelters among, such individuals, broken down by 
                gender and race.
                    ``(G) The effects of applying the 5-year time limit 
                to individuals who, in the absence of the limit, would 
                continue to be eligible for assistance from the State 
                program funded under this part, including the economic 
                and social circumstances of the individuals, including 
                income, employment, homelessness, use of food pantries 
                or soup kitchens, and change in child custody 
                arrangements.
            ``(2) Use of sampling.--A State may comply with this 
        subsection by using a scientifically acceptable sampling method 
        approved by the Secretary.
            ``(3) Report to the congress.--Not later than June 1 of 
        each fiscal year, the Secretary shall prepare and submit to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate, publish in the Federal 
Register, and make easily accessible to the public through the Internet 
a compilation of the reports submitted pursuant to paragraph (1) for 
the preceding fiscal year.''.

SEC. 405. LONGITUDINAL STUDIES OF TANF RECIPIENTS.

    (a) Longitudinal Studies of TANF Applicants and Recipients To 
Determine the Factors That Contribute to Positive Employment and Family 
Outcomes.--Section 413(d) (42 U.S.C. 613) is amended to read as 
follows:
    ``(d) Longitudinal Studies of TANF Applicants and Recipients To 
Determine the Factors That Contribute to Positive Employment and Family 
Outcomes.--
            ``(1) In general.--The Secretary, directly or through 
        grants, contracts, or interagency agreements, shall conduct 
        longitudinal studies in not less than 30 States of a 
        representative sample of families that receive and applicants 
        for assistance in a State program funded under this part or 
        under a program funded with qualified State expenditures (as 
        defined in section 409(a)(7)(B)(i)). The studies shall follow 
        families that leave assistance, those that receive assistance 
        throughout the study period, and those diverted from assistance 
        programs. The studies shall gather information on family and 
        adult demographics (including race, ethnicity/national origin, 
        primary language, gender, barriers to employment, educational 
        status of adults, prior work history, prior history of welfare 
        receipt), family income (including earnings, unemployment 
        compensation, and child support), benefit receipt (including 
        food stamps, medicaid, earned income tax credits, housing 
        assistance, and type and amount of child care used), reasons 
        for leaving or returning to assistance programs, work 
        participation status and activities (including the scope and 
        duration of work activities and the types of industries and 
        occupations for which training is provided), sanction status 
        (including reasons for sanction), time limit status (including 
        months remaining on State and Federal time limits), recipient 
        views on program participation, and measures of income change, 
        poverty, extreme poverty, food security, and use of food 
        pantries and soup kitchens, homelessness and the use of 
        shelters, and other measures of family well-being and hardship 
        over a 5-year period. The Secretary shall, to the extent 
        possible, ensure that the studies produce comparable results 
        and information.
            ``(2) Reports.--
                    ``(A) The Secretary shall publish, not later than 
                December 2005, interim findings from at least 12 months 
                of longitudinal data.
                    ``(B) The Secretary shall publish, not later than 
                December 2007, findings from at least 36 months of 
                longitudinal data.''.
    (b) Longitudinal Studies of Economic Well-Being of Current and 
Former TANF Families.--
            (1) Annual report to congress.--Section 411(b) (42 U.S.C. 
        611(b)) is amended--
                    (A) in paragraph (2), by striking ``financial 
                characteristics'' and inserting ``financial 
                characteristics (including types of sanctions or other 
                grant reductions)'' and by striking the semicolon at 
                the end and adding ``, broken down by race, ethnicity/
                national origin, primary language, gender, education 
                level, and, for closed TANF cases, reason the case was 
                closed;'';
                    (B) in paragraph (3), by striking ``and'' at the 
                end;
                    (C) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(5) the economic well-being of children and families 
        receiving assistance under the State programs funded under this 
        part and of children and families that have ceased to receive 
        such assistance, using longitudinal matched data gathered from 
        federally supported programs, and including State by State data 
        that details the distribution of earnings and stability of 
        employment of such families and (to the extent feasible) 
        describes, with respect to such families, the distribution of 
        income from known sources (including employer-reported wages, 
        assistance under the State program funded under this part, and 
        benefits under the food stamp program), the ratio of such 
        families' income to the poverty line, and the extent to which 
        such families receive or received noncash benefits and child 
        care assistance. Such information shall be broken down by race, 
        ethnicity/national origin, primary language, gender, education 
        level, whether the TANF case remains open, and, for closed TANF 
        cases, reason the case was closed.''.
            (2) Conforming amendments.--Section 411(a) (42 U.S.C. 
        611(a)) is amended by redesignating paragraph (7) as paragraph 
        (8) inserting after paragraph (6) the following:
            ``(7) Report on economic well-being of current and former 
        recipients.--The report required by paragraph (1) for a fiscal 
        quarter shall include for that quarter such information as the 
        Secretary may specify in order for the Secretary to include in 
        the annual reports to Congress required under subsection (b) 
        the information described in subsection (b)(5).''.
                                 <all>