[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3573 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3573

  To reauthorize and amend the program of block grants to States for 
     temporary assistance for needy families and related programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 6, 2011

Ms. Moore (for herself, Mrs. Christensen, Mr. Cleaver, Mr. Conyers, Mr. 
Davis of Illinois, Mr. Jackson of Illinois, Ms. Norton, Mr. Stark, Mr. 
  Thompson of Mississippi, Mr. Towns, and Ms. Waters) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
 and in addition to the Committee on Oversight and Government Reform, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To reauthorize and amend the program of block grants to States for 
     temporary assistance for needy families and related programs.

    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 ``Rewriting to Improve and Secure an 
Exit Out of Poverty Act'' or the ``RISE Out of Poverty 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.
Sec. 4. State plans required to address whether and how States will 
                            provide assistance to neediest geographic 
                            areas.
Sec. 5. Funding of the TANF program.
Sec. 6. Work requirements.
Sec. 7. Work rules.
Sec. 8. Prohibition on imposing limit of less than 60 months on 
                            duration of assistance.
Sec. 9. Response of TANF program to economic recessions.
Sec. 10. Requirement that States use merit-based system in 
                            administration of TANF programs.
Sec. 11. Ban on using Federal TANF funds to replace State and local 
                            spending that does not meet the definition 
                            of qualified State expenditures.
Sec. 12. TANF assistance to meet basic family economic needs.
Sec. 13. State plans and reports on child poverty.
Sec. 14. Requirement that States adopt standards and procedures to 
                            address domestic and sexual violence among 
                            TANF recipients.
Sec. 15. Child care entitlement.
Sec. 16. Child support enforcement.
Sec. 17. State option to extend eligibility for assistance to children 
                            through age 21; prohibition on considering 
                            financial aid tied to education of child in 
                            determining eligibility for, or amount of 
                            assistance; prohibition on imposing 
                            additional requirements based on 
                            educational enrollment of child.
Sec. 18. Elimination of certain other bars to TANF assistance.
Sec. 19. Effective date.

SEC. 3. REFERENCES.

    Except as otherwise expressly provided in this Act, 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.

SEC. 4. STATE PLANS REQUIRED TO ADDRESS WHETHER AND HOW STATES WILL 
              PROVIDE ASSISTANCE TO NEEDIEST GEOGRAPHIC AREAS.

    Section 402(a)(1)(A)(i) (42 U.S.C. 602(a)(1)(A)(i)) is amended by 
inserting ``, including whether and how the State will give priority to 
providing benefits and services in areas of the State with the greatest 
need (such as areas with the greatest unemployment rates, the greatest 
poverty rates, and the least job opportunity to population ratios)'' 
before the period.

SEC. 5. FUNDING OF THE TANF PROGRAM.

    (a) State Family Assistance Grant.--
            (1) In general.--Section 403(a)(1) (42 U.S.C. 603(a)(1)) is 
        amended--
                    (A) in subparagraph (A), by striking ``fiscal years 
                1996,'' and all that follows through ``2003,'' and 
                inserting ``fiscal year 2012 and each succeeding fiscal 
                year''; and
                    (B) by striking subparagraphs (B) and (C) and 
                inserting the following:
                    ``(B) State family assistance grant.--
                            ``(i) In general.--The State family 
                        assistance grant payable to a State for a 
                        fiscal year shall be the greater of--
                                    ``(I) the adjusted basic block 
                                grant, plus the amount required to be 
                                paid to the State under paragraph (3) 
                                (as in effect on September 30, 2010) 
                                for fiscal year 2010; or
                                    ``(II) the amount required to be 
                                paid to the State under this paragraph 
                                for the preceding fiscal year.
                            ``(ii) Adjusted basic block grant.--In 
                        clause (i), the term `adjusted block grant' 
                        means, with respect to a State, the product 
                        of--
                                    ``(I) the amount required to be 
                                paid to the State under this paragraph 
                                for fiscal year 2010 (determined 
                                without regard to any reduction 
                                pursuant to section 409 or 412(a)(1));
                                    ``(II) 1.00, plus the percentage 
                                (if any) by which the average of the 
                                CPI for the 12-month period ending with 
                                June of the preceding fiscal year 
                                exceeds the average of the CPI for the 
                                12-month period ending with June 1996, 
                                expressed as a decimal; and
                                    ``(III) 1.00, plus the percentage 
                                (if any) by which the most recent 
                                estimate by the Bureau of the Census of 
                                the population of the State that has 
                                not attained 18 years of age exceeds 
                                the most recent estimate by the Bureau 
                                of the Census of that population as of 
                                July 1, 1996, expressed as a decimal.
                            ``(iii) CPI defined.--In clause (ii), the 
                        term `CPI' means the last Consumer Price Index 
                        for all-urban consumers published by the 
                        Department of Labor for the period involved.
                    ``(C) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated such sums as are 
                necessary for grants under this paragraph for each 
                fiscal year.''.
            (2) Conforming amendment to eliminate supplemental grants 
        for population increases in certain states.--Section 403(a) (42 
        U.S.C. 603(a)) is amended by striking paragraph (3).
    (b) Extension of Penalty for Failure To Maintain Effort; 
Requirement Adjusted for Inflation.--Section 409(a)(7) (42 U.S.C. 
609(a)(7)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``fiscal year 1998, 1999, 2000, 
                2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 
                2010, 2011, or 2012'' and inserting ``a fiscal year''; 
                and
                    (B) by inserting ``the inflation-adjusted'' before 
                ``historic State expenditures''; and
            (2) in subparagraph (B)--
                    (A) in clause (ii), by striking ``fiscal years 1997 
                through 2011'' and inserting ``a fiscal year''; and
                    (B) by redesignating clauses (iii) through (v) as 
                clauses (iv) through (vi), respectively, and inserting 
                after clause (ii) the following:
                            ``(iii) Inflation-adjusted historic state 
                        expenditures.--The term `inflation-adjusted 
                        historic State expenditures' means, with 
                        respect to a fiscal year--
                                    ``(I) historic State expenditures; 
                                multiplied by
                                    ``(II) 1.00, plus (in the case of 
                                fiscal year 2014 or any succeeding 
                                fiscal year) the percentage (if any) by 
                                which the average of the CPI (as 
                                defined in section 403(a)(1)(B)(iii)) 
                                for the 12-month period ending with 
                                June of the preceding fiscal year 
                                exceeds the average of the CPI (as so 
                                defined) for the 12-month period ending 
                                with June 2012, expressed as a 
                                decimal.''.
    (c) Modification of Contingency Fund.--
            (1) In general.--Section 403(b) (42 U.S.C. 603(b)) is 
        amended by striking all that follows paragraph (1) and 
        inserting the following:
            ``(2) Grants.--
                    ``(A) In general.--The Secretary shall make a grant 
                to each eligible State and each Indian tribe that is an 
                economically needy entity for a calendar quarter, in an 
                amount equal to 80 percent of the amount (if any) by 
                which the total amount of relevant expenditures of the 
                entity for the quarter exceeds the total amount of the 
                relevant expenditures of the entity for the 
                corresponding quarter in the base year of the entity, 
                subject to paragraph (2).
                    ``(B) Limitation.--The total amount payable to an 
                entity under this subsection for a fiscal year shall 
                not exceed an amount equal to 25 percent of the amount 
                payable to the entity--
                            ``(i) if the entity is a State, under 
                        section 403(a)(1) for the fiscal year; or
                            ``(ii) if the entity is an Indian tribe, 
                        under section 412(a)(1) for the fiscal year.
            ``(3) Definitions.--In paragraph (2):
                    ``(A) Economically needy entity.--The term 
                `economically needy entity' means an entity with 
                respect to a calendar quarter--
                            ``(i) if the seasonally adjusted average 
                        unemployment rate with respect to entity for 
                        the quarter or any of the preceding 4 calendar 
                        quarters exceeds 6.5 percent; or
                            ``(ii) in the case that the unemployment 
                        rate information described in clause (i) is not 
                        available with respect to the entity, if the 
                        entity meets such qualifications as the 
                        Secretary, in consultation with the Secretary 
                        of Labor, shall, by regulation, prescribe.
                    ``(B) Base year.--The term `base year' means, with 
                respect to an entity, and a calendar quarter in a 
                fiscal year--
                            ``(i) except as provided in clause (ii), 
                        whichever of the 2 fiscal years most recently 
                        preceding the 1st fiscal year of the most 
                        recent contingency fund eligibility period for 
                        the entity, is the fiscal year in which the 
                        relevant expenditures of the entity were the 
                        lesser; or
                            ``(ii) if the 1st year of the period 
                        referred to in clause (i) is fiscal year 2012, 
                        whichever of fiscal year 2007 or 2008 is the 
                        fiscal year in which the relevant expenditures 
                        of the entity were the lesser.
                    ``(C) Contingency fund eligibility period.--The 
                term `contingency fund eligibility period' means, with 
                respect to an entity, a period of 1 or more consecutive 
                calendar quarters for which the entity is an 
                economically needy entity.
                    ``(D) Relevant expenditures.--
                            ``(i) In general.--The term `relevant 
                        expenditures' means expenditures--
                                    ``(I) for assistance under the 
                                program funded under this part of the 
                                entity (including, in the case of a 
                                State, any qualified State expenditures 
                                (as defined in section 409(a)(7)(B)(i)) 
                                and any expenditures under any other 
                                State program funded by such 
                                expenditures);
                                    ``(II) for child care;
                                    ``(III) for subsidized employment 
                                under the program funded under this 
                                part of the entity (including, in the 
                                case of a State, such expenditures 
                                under any other State program funded by 
                                qualified State expenditures (as 
                                defined in section 409(a)(7)(B)(i))), 
                                other than expenditures made using 
                                Federal funds or with respect to which 
                                the entity received a grant made under 
                                paragraph (3) of this subsection; and
                                    ``(IV) for administrative costs 
                                associated with making the expenditures 
                                referred to in the preceding subclauses 
                                of this clause.
                            ``(ii) Child care expenditures.--For 
                        purposes of clause (i), expenditures for child 
                        care consist of the following:
                                    ``(I) Amounts transferred under 
                                section 404(d)(1)(B).
                                    ``(II) Expenditures for child care 
                                assistance from Federal funds provided 
                                under this part.
                                    ``(III) In the case of an entity 
                                that is a State, expenditures for child 
                                care assistance that are qualified 
                                State expenditures (as defined in 
                                section 409(a)(7)(B)(i)), but only to 
                                the extent exceeding the total 
                                expenditures of the State (other than 
                                from Federal funds) for child care in 
                                fiscal year 1994 or 1995 (whichever is 
                                the greater).
                            ``(iii) Authority to collect and adjust 
                        data.--In determining the amount of the 
                        expenditures of a State for basic assistance, 
                        child care, and subsidized employment, during 
                        any period for which the State requests funds 
                        under this subsection, and during the base year 
                        of the State, the Secretary may make 
                        appropriate adjustments to the data, on a 
                        State-by-State basis, to ensure that the data 
                        are comparable with respect to the groups of 
                        families served and the types of aid provided. 
                        The Secretary may develop a mechanism for 
                        collecting expenditure data, including 
                        procedures which allow States to make 
                        reasonable estimates, and may set deadlines for 
                        making revisions to the data.
            ``(4) Use of grant.--Each State to which a grant is made 
        under this subsection shall use the grant to serve areas of the 
        State with the greatest need (as referred to in section 
        402(a)(1)(A)).
            ``(5) Appropriation.--
                    ``(A) In general.--Out of any funds in the Treasury 
                of the United States not otherwise appropriated, there 
                are appropriated for payment to the Fund--
                            ``(i) $2,500,000,000 for fiscal year 2012; 
                        and
                            ``(ii) for each succeeding fiscal year, the 
                        amount appropriated under this paragraph for 
                        the then preceding fiscal year, increased by 
                        the percentage (if any) by which the amount 
                        appropriated under section 403(a)(1) for the 
                        fiscal year involved exceeds the amount 
                        appropriated under such section for the then 
                        preceding fiscal year.
                    ``(B) Availability.--Amounts made available under 
                this paragraph for a fiscal year shall remain available 
                until expended.
            ``(6) Actions to be taken in anticipation of exhaustion of 
        fund.--The Secretary shall monitor the amount in, and the rate 
        at which amounts are paid from, the Fund, and if the Secretary 
        determines that the Fund will be exhausted within 6 months, the 
        Secretary shall--
                    ``(A) notify the Congress of the determination; and
                    ``(B) develop and communicate to each State and 
                Indian tribe that is an economically needy entity as of 
                the date of the determination, the procedure for 
                allocating amounts in the Fund among such entities.''.
            (2) Elimination of penalty for failure of state receiving 
        amounts from contingency fund to maintain 100 percent of 
        historic effort.--
                    (A) In general.--Section 409(a) (42 U.S.C. 609(a)) 
                is amended by striking paragraph (10) and redesignating 
                paragraphs (11) through (15) as paragraphs (10) through 
                (16), respectively.
                    (B) Conforming amendments.--Section 409 (42 U.S.C. 
                609) is amended in each of subsections (b)(2) and 
                (c)(4), by striking ``(10), (12), or (13)'' and 
                inserting ``(11), or (12)''.
            (3) Conforming amendment.--Section 409(a)(3)(C) (42 U.S.C. 
        609(a)(3)(C)) is amended by striking ``needy State (as defined 
        in section 403(b)(6))'' and inserting ``economically needy 
        entity (as defined in section 403(b)(3)(A))''.
            (4) Amounts provided to territories from the contingency 
        fund to be disregarded for purposes of limitation on payments 
        to the territories.--Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) 
        is amended by inserting ``403(b),'' before ``406,''.
    (d) Matching Grants for Subsidized Employment.--
            (1) In general.--Section 403(a) (42 U.S.C. 603(a)), as 
        amended by subsection (a)(2) of this section, is amended by 
        inserting after paragraph (2) the following:
            ``(3) Matching grants for subsidized employment.--
                    ``(A) In general.--The Secretary shall make a 
                grant--
                            ``(i) to each eligible State that is 1 of 
                        the 50 States or the District of Columbia, for 
                        each fiscal year for which the State is an MOE 
                        State; and
                            ``(ii) to each State that is not 1 of the 
                        50 States or the District of Columbia, and to 
                        each Indian tribe, for each fiscal year for 
                        which the State or tribe, as the case may be, 
                        meets such terms and conditions as the 
                        Secretary shall, by regulation, establish, 
                        which shall be comparable to the terms and 
                        conditions under which grants are made under 
                        clause (i).
                    ``(B) MOE state.--In subparagraph (A), the term 
                `MOE State' means a State if the qualified expenditures 
                of the State (as defined in section 409(a)(7)(B)(i)) 
                for the fiscal year exceeds the applicable percentage 
                (as defined in clause (ii) of such section) of 
                inflation-adjusted historic State expenditures (as 
                defined in clause (iii) of such section) of the State 
                with respect to the fiscal year.
                    ``(C) Amount of grant.--
                            ``(i) States.--
                                    ``(I) In general.--The grant to be 
                                made to a State under subparagraph 
                                (A)(i) for a fiscal year shall be in an 
                                amount equal to 50 percent of the 
                                excess expenditures of the State for 
                                subsidized employment during the fiscal 
                                year.
                                    ``(II) Excess expenditures of the 
                                state for subsidized employment.--The 
                                term `excess expenditures of the State 
                                for subsidized employment' means, with 
                                respect to a fiscal year, the lesser 
                                of--
                                            ``(aa) the excess described 
                                        in subparagraph (B) with 
                                        respect to the State for the 
                                        fiscal year; or
                                            ``(bb) an amount equal to 
                                        the total expenditures of the 
                                        State for subsidized employment 
                                        funded under this part or under 
                                        any other State program funded 
                                        by qualified State expenditures 
                                        (as defined in section 
                                        409(a)(7)(B)(i)), excluding 
                                        those with respect to which a 
                                        grant is made to the State 
                                        under subsection (b) of this 
                                        section, during the fiscal 
                                        year.
                            ``(ii) Indian tribes.--The grant to be made 
                        to an Indian tribe under this paragraph shall 
                        be in such amount as the Secretary deems 
                        appropriate.
                    ``(D) Use of grant.--Notwithstanding section 404, a 
                State or Indian tribe to which a grant is made under 
                this paragraph shall use the grant solely to finance 
                subsidized employment activities, and to serve areas of 
                the State with the greatest need (as referred to in 
                section 402(a)(1)(A)).
                    ``(E) Appropriation.--Out of any funds in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated such sums as are 
                necessary for grants under this paragraph for each 
                fiscal year.''.
            (2) Amounts provided to territories from the matching grant 
        to be disregarded for purposes of limitation on payments to the 
        territories.--Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is 
        amended by inserting ``403(a)(3),'' after ``403(a)(2),''.
            (3) Data reports required with respect to families that 
        include an individual participating in subsidized employment 
        programs.--Section 411(a)(1) (42 U.S.C. 611(a)(1)) is amended 
        by inserting ``, and families that include an individual 
        participating in subsidized employment funded with Federal 
        funds or qualified State expenditures (as so defined)'' before 
        the colon.
    (e) Tribal Family Assistance Grants.--Section 412(a)(1) (42 U.S.C. 
612(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``of fiscal years 
        1997, 1998, 1999, 2000, 2001, 2002, and 2003,'' and inserting 
        ``fiscal year''; and
            (2) in subparagraph (B)--
                    (A) by redesignating clause (ii) as clause (iii); 
                and
                    (B) by striking clause (i) and inserting the 
                following:
                            ``(i) In general.--The amount determined 
                        under this subparagraph for a fiscal year is an 
                        amount equal to the sum of the adjusted 
                        historic expenditures for the fiscal year with 
                        respect to each State in which there lies a 
                        service area of the Indian tribe is located.
                            ``(ii) Adjusted historic expenditures 
                        defined.--In clause (i), the term `adjusted 
                        historic expenditures' means, with respect to a 
                        fiscal year, a State, and an Indian tribe, the 
                        total amount of the Federal payments to the 
                        State under section 403 (as then in effect) for 
                        fiscal year 1994 attributable to expenditures 
                        (other than child care expenditures) by the 
                        State under parts A and F (as so in effect) for 
                        fiscal year 1994 for Indian families residing 
                        in the service areas identified by the tribe 
                        pursuant to subsection (b)(1)(C) of this 
                        section that are in the State, increased by the 
                        percentage (if any) by which the amount of the 
                        grant payable under section 403(a)(1) for the 
                        fiscal year to the State exceeds the amount of 
                        the grant so payable to the State for fiscal 
                        year 2010.''.
    (f) Census Bureau Study.--Section 414 (42 U.S.C. 614) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) In General.--The Director of the Bureau of the Census shall 
conduct a study to assess the effects of policies and programs related 
to low-income families, including policies and programs under State 
programs funded under this part or funded with qualified State 
expenditures (as defined in section 409(a)(7)(B)(i)), including changes 
and policies in such programs made pursuant to the Rewriting to Improve 
and Secure an Exit Out of Poverty Act. The Director shall design the 
study in consultation with the Secretary. Every 5 years, the Director 
shall, in consultation with the Secretary, revise the content and 
nature of the study to reflect emerging policy issues related to low-
income families.''; and
            (2) in subsection (b), by striking ``of fiscal years 1996, 
        1997, 1998, 1999, 2000, 2001, 2002, and 2003'' and inserting 
        ``fiscal year''.
    (g) Funding of Studies and Evaluations.--Section 413(h)(1) (42 
U.S.C. 613(h)(1)) is amended by striking ``of fiscal years 1997 through 
2002'' and inserting ``fiscal year''.
    (h) Matching Grants to Certain Territories.--Section 1108 (42 
U.S.C. 1308) is amended--
            (1) in subsection (a)(2), by inserting ``section 403(a)(1) 
        (to the extent exceeding the amount required to be so paid to 
        the territory for fiscal year 2011),'' before ``403(a)(2)''; 
        and
            (2) in subsection (b)(2), by striking ``fiscal years 1997 
        through 2003'' and inserting ``each fiscal year''.

SEC. 6. WORK REQUIREMENTS.

    (a) Participation Rate Requirement.--Section 407 (42 U.S.C. 607) is 
amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) Participation Rate Requirement.--
            ``(1) In general.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve a minimum 
        participation rate of 50 percent with respect to all families 
        residing in the State that include a work-eligible individual.
            ``(2) Work-eligible individual defined.--
                    ``(A) In general.--In subsection (a), the term 
                `work-eligible individual', subject to subparagraphs 
                (B) and (C), means--
                            ``(i) an adult recipient of assistance 
                        under the State program funded under this part 
                        or under any other State program funded by 
                        qualified State expenditures (as defined in 
                        section 409(a)(7)(B)(i));
                            ``(ii) a former recipient of such 
                        assistance who is--
                                    ``(I) a parent of a dependent child 
                                who is such a recipient; and
                                    ``(II) no longer eligible for 
                                assistance under the State program 
                                funded under this part by reason of 
                                section 408(a)(7); and
                            ``(iii) a participant in a subsidized 
                        employment program funded under this part or 
                        under any other State program funded by 
                        qualified State expenditures (as defined in 
                        section 409(a)(7)(B)(i)).
                    ``(B) Exclusion of individuals sanctioned or 
                undergoing pre-sanction review.--The term `work-
                eligible individual' does not include any individual 
                with respect to whom--
                            ``(i) there is in effect a penalty imposed 
                        by the State under subsection (e) of this 
                        section; or
                            ``(ii) the State has initiated (but not 
                        completed) the pre-sanction review process 
                        pursuant to section 408(a)(14)(A).
                    ``(C) State option to exclude certain 
                individuals.--A State may exclude from the term `work-
                eligible individual' any resident of the State who is--
                            ``(i) a single parent caring for a child 
                        who has not attained 1 year of age;
                            ``(ii) a recipient of supplemental security 
                        income benefits under title XVI, disability 
                        insurance benefits under title II, or other 
                        Federal or State benefits based on disability;
                            ``(iii) an applicant for supplemental 
                        security income benefits under title XVI;
                            ``(iv) an individual who is needed in the 
                        home of the individual to care for a disabled 
                        member of the family of the individual; or
                            ``(v) an individual who (but for the 
                        exercise of the State option under this clause) 
                        would be a work-eligible individual under a 
                        tribal family assistance plan approved under 
                        section 412 or under a tribal work program to 
                        which funds are provided under this part.
    ``(b) Calculation of Participation Rates.--
            ``(1) Average monthly rate.--For purposes of subsection 
        (a), the participation rate of a State for a fiscal year is the 
        average of the participation rates of the State for each month 
        in the fiscal year.
            ``(2) Monthly participation rate.--For purposes of 
        paragraph (1), the participation rate of a State for a month, 
        expressed as a percentage, is--
                    ``(A) the number of families residing in the State 
                that include a work-eligible individual who is engaged 
                in work for the month; divided by
                    ``(B) the number of families residing in the State 
                that include a work-eligible individual.''.
    (b) Participation Requirements.--Section 407(c) (42 U.S.C. 607(c)) 
is amended to read as follows:
    ``(c) Engaged in Work.--For purposes of subsection (b):
            ``(1) General rule.--An individual is engaged in work for a 
        month in a fiscal year if the recipient is participating in 
        work activities for an average of at least 20 hours per week 
        during the month.
            ``(2) Individuals complying with a modified employability 
        plan deemed to be engaged in work.--An individual is deemed to 
        be engaged in work for a month if the State determines that the 
        individual is in substantial compliance with the activities and 
        hourly participation requirements of a modified employability 
        plan developed for the individual in accordance with section 
        408(h).
            ``(3) Single teen head of household or married teen who 
        maintains satisfactory school attendance deemed to be engaged 
        in work.--An individual who is married or a head of household 
        and has not attained 20 years of age is deemed to be engaged in 
        work for a month if the recipient maintains satisfactory 
        attendance at secondary school or the equivalent during the 
        month.''.
    (c) Elimination of 12-Month Limit on Counting Vocational 
Educational Training as a Work Activity.--Section 407(d)(8) (42 U.S.C. 
607(d)(8)) is amended by striking ``(not to exceed 12 months with 
respect to any individual)''.

SEC. 7. WORK RULES.

    (a) Option of Recipient To Have Trained Personnel Assess Certain 
Barriers to Employment; Additional Matters Required To Be Assessed.--
Section 408(b)(1) (42 U.S.C. 608(b)(1)) is amended--
            (1) by inserting ``(which, at the option of the recipient, 
        shall be conducted by trained personnel with respect to 
        barriers to employment specified by the recipient)'' after 
        ``assessment''; and
            (2) by striking ``and employability'' and inserting 
        ``employability, physical and mental impairments, English 
        proficiency, child care needs, and whether the recipient is a 
        victim of domestic or sexual violence,''.
    (b) Individual Responsibility Plans.--
            (1) Plans required; plans to include well-being plans for 
        children.--Section 408(b)(2)(A) (42 U.S.C. 608(b)(2)(A)) is 
        amended--
                    (A) in the matter preceding clause (i), by striking 
                ``may'' and inserting ``shall'';
                    (B) in clause (iv)--
                            (i) by inserting ``, supports,'' after 
                        ``counseling''; and
                            (ii) by striking ``and'' at the end;
                    (C) in clause (v), by striking the period and 
                inserting ``; and''; and
                    (D) by adding at the end the following:
                            ``(vi) describe a well-being plan for each 
                        child in the family.''.
            (2) Deadline for completion of plan.--Section 408(b)(2)(B) 
        (42 U.S.C. 608(b)(2)(B)) is amended by striking ``individual--
        '' and all that follows and inserting ``individual within 90 
        days after the individual is determined eligible for the 
        assistance.''.
            (3) Sanction for failure of state to develop plan.--Section 
        409(a) (42 U.S.C. 609(a)), as amended by section 5(c)(2)(A) of 
        this Act, is amended by adding at the end the following:
            ``(15) Penalty for failure of state to develop required 
        individual responsibility plan.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 in a 
                fiscal year has violated section 408(b)(2) 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 not more than 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.''.
            (4) Conforming amendment.--Section 408(b) (42 U.S.C. 
        608(b)) is amended by striking paragraph (4).
    (c) Modified Employability Plans for Certain Individuals With 
Disabilities.--Section 408 (42 U.S.C. 608) is amended by adding at the 
end the following:
    ``(h) Authority To Develop Modified Employability Plan for a 
Recipient of Assistance With, or Caring for a Family Member With, a 
Disability.--
            ``(1) In general.--A State may develop a modified 
        employability plan for a recipient of assistance under the 
        State program funded under this part--
                    ``(A) who--
                            ``(i) is a work-eligible individual (as 
                        defined in section 407(a)(2)); and
                            ``(ii) has been determined by a qualified 
                        medical, mental health, addiction, or social 
                        services professional (as determined by the 
                        State) to have a disability; or
                    ``(B) who is caring for a family member with a 
                disability (as so determined).
            ``(2) Contents of plan.--The modified employability plan 
        shall--
                    ``(A) include a determination that, because of the 
                disability of the recipient or the individual for whom 
                the recipient is caring, reasonable modification of 
                work activities, hourly participation requirements, or 
                both, is needed in order for the recipient to 
                participate in the activities;
                    ``(B) describe the modified work activities in 
                which the recipient is required to participate;
                    ``(C) specify the number of hours per week for 
                which the recipient is required to participate in the 
                modified work activities, based on an evaluation by the 
                State of the circumstances of the family;
                    ``(D) describe the services, supports, and 
                modifications that the State will provide to the 
                recipient or the family of the recipient;
                    ``(E) be developed in cooperation with the 
                recipient; and
                    ``(F) be reviewed not less often than every 6 
                months.
            ``(3) Definitions.--In this subsection:
                    ``(A) Disability.--The term `disability' means a 
                mental or physical impairment, including substance 
                abuse or addiction, that--
                            ``(i) constitutes or results in a 
                        substantial impediment to employment; or
                            ``(ii) substantially limits 1 or more major 
                        life activities.
                    ``(B) Modified work activities.--The term `modified 
                work activities' means activities which the State has 
                determined will help the recipient become 
                employable.''.
    (d) Sanctions.--
            (1) General sanction provisions.--
                    (A) Prohibition on imposing lifetime or full family 
                sanction.--
                            (i) Prohibition.--Section 408(a) (42 U.S.C. 
                        608(a)) is amended by adding at the end the 
                        following:
            ``(13) Prohibition on imposing lifetime or full family 
        sanction.--A State to which a grant is made under section 403 
        shall not impose a lifetime prohibition on the provision of 
        assistance to any individual or family 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)) on 
        the basis of the failure of a member of the family to comply 
        with a program requirement.''.
                            (ii) Penalty.--Section 409(a) (42 U.S.C. 
                        609), as amended by section 5(c)(2)(A) of this 
                        Act and subsection (b)(3) of this section, is 
                        amended by adding at the end the following:
            ``(16) Penalty for imposing lifetime or full family 
        sanction.--If the Secretary determines that a State to which a 
        grant is made under section 403 in a fiscal year has violated 
        section 408(a)(13) 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) Due process protections.--
                            (i) In general.--Section 408(a) (42 U.S.C. 
                        608(a)), as amended by subparagraph (A)(i) of 
                        this paragraph, is amended by adding at the end 
                        the following:
            ``(14) Sanction procedures.--
                    ``(A) Pre-sanction review process.--Before imposing 
                a sanction against an individual or family receiving 
                assistance under the State program funded under this 
                part or under a program funded with qualified State 
                expenditures (as defined in section 409(a)(7)(B)(i)) 
                for failure to comply with program requirements, the 
                State shall take the following steps:
                            ``(i) Provide or send notice to the 
                        individual or family, and, if the recipient's 
                        native language is not English, through a 
                        culturally competent written or verbal 
                        translation, of the following information:
                                    ``(I) The specific reason for the 
                                proposed sanction.
                                    ``(II) The amount of the proposed 
                                sanction.
                                    ``(III) The length of time during 
                                which the proposed sanction would be in 
                                effect.
                                    ``(IV) The steps required to come 
                                into compliance or to show good cause 
                                for noncompliance.
                                    ``(V) That the agency will provide 
                                assistance to help the individual 
                                demonstrate good cause for 
                                noncompliance, or come into compliance 
                                with program requirements.
                                    ``(VI) That the individual may 
                                appeal the determination to impose a 
                                sanction, and the steps that the 
                                individual must take to pursue such an 
                                appeal.
                            ``(ii)(I) Ensure that, subject to clause 
                        (iii)--
                                    ``(aa) an individual, other than 
                                the individual who determined that a 
                                sanction be imposed, will review the 
                                determination and have the authority to 
                                take the actions described in subclause 
                                (II); and
                                    ``(bb) the individual or family 
                                against whom the sanction is to be 
                                imposed shall be afforded the 
                                opportunity to meet with the individual 
                                who is reviewing the determination to 
                                impose the sanction.
                            ``(II) The action described in this 
                        subclause are the following:
                                    ``(aa) Modify the determination to 
                                impose a sanction.
                                    ``(bb) Determine that there was 
                                good cause for the failure to comply.
                                    ``(cc) Recommend modifications to 
                                the individual responsibility or 
                                employment plan of an individual.
                                    ``(dd) Make such other 
                                determinations and take such other 
                                actions as may be appropriate.
                            ``(iii) The review required under clause 
                        (ii) shall include consideration of the 
                        following:
                                    ``(I) To the extent applicable, 
                                whether barriers to compliance exist, 
                                such as a physical or mental impairment 
                                (including mental illness, substance 
                                abuse, mental retardation, or a 
                                learning disability), domestic or 
                                sexual violence, limited proficiency in 
                                English, limited literacy, 
                                homelessness, or the need to care for a 
                                child with a disability or health 
                                condition, that contributed to the 
                                noncompliance.
                                    ``(II) Whether the noncompliance 
                                resulted from failure to receive or 
                                have access to services identified as 
                                necessary in an individual 
                                responsibility or employment plan.
                                    ``(III) Whether changes to the 
                                individual responsibility or employment 
                                plan of an individual should be made in 
                                order for the individual to come into 
                                compliance.
                                    ``(IV) Whether there is good cause 
                                for any noncompliance.
                                    ``(V) Whether the sanction policies 
                                of the State have been applied 
                                properly.
                    ``(B) Sanction follow-up requirements.--If a State 
                imposes a sanction on a family or individual for 
                failing to comply with program requirements, the State 
                shall--
                            ``(i) provide or send notice to the 
                        individual or family, in language calculated to 
                        be understood by the individual or family, and, 
                        if the individual's or family's native language 
                        is not English, through a culturally competent 
                        translation, of the reason for the sanction and 
                        the steps the individual or family must take to 
                        end the sanction;
                            ``(ii) resume full assistance, services, or 
                        benefits to the individual or family under the 
                        program (if the individual or family is 
                        otherwise eligible for the assistance, 
                        services, or benefits) once the individual who 
                        was not in compliance with program requirements 
                        that led to the sanction complies with the 
                        requirements for a reasonable period of time, 
                        as determined by the State and subject to State 
                        discretion to reduce the period; and
                            ``(iii) if the State has not resumed 
                        providing the assistance, services, or benefits 
                        as of the end of the 120-day period that begins 
                        on the date that is 60 days after the date on 
                        which the sanction was imposed, provide notice 
                        to the individual or family, in language 
                        calculated to be understood by the individual 
                        or family, of the steps the individual or 
                        family must take to end the sanction, and of 
                        the availability of assistance to come into 
                        compliance or demonstrate good cause for 
                        noncompliance.
                    ``(C) Notice to evicted persons.--The State shall 
                make a reasonable effort to provide to an individual or 
                family that has been evicted from a residence for 
                failure to pay rent or as a result of another problem 
                related to poverty, any notice required by this 
                paragraph to be provided to the individual or 
                family.''.
                            (ii) Penalty.--Section 409(a) (42 U.S.C. 
                        609(a)), as amended by section 5(c)(2)(A) of 
                        this Act, subsection (b)(3) of this section, 
                        and subparagraph (A)(ii) of this paragraph, is 
                        amended by adding at the end the following:
            ``(17) Penalty for failure to follow sanction procedures.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 in a 
                fiscal year has violated section 408(a)(14) 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 not more than 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.''.
                            (iii) State plan requirement 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.
            (2) Modifications to work sanction.--
                    (A) Elimination of full family sanction; state 
                required to establish certain good cause exceptions.--
                Section 407(e)(1) (42 U.S.C. 607(e)(1)) is amended--
                            (i) by striking ``shall--'' and all that 
                        follows through subparagraph (B) and inserting 
                        ``shall reduce the amount of assistance 
                        otherwise payable to the family pro rata with 
                        respect to any period during a month in which 
                        the individual so refuses,''; and
                            (ii) by striking ``may establish'' and 
                        inserting the following ``shall establish, 
                        which shall include the decline of an offer of 
                        employment at a wage less than the greater of 
                        the applicable Federal or State minimum wage, 
                        or 80 percent of the wage that would have 
                        governed had the minimum hourly rate under the 
                        Fair Labor Standards Act been applicable to the 
                        offer of employment, at a site subject to a 
                        strike or lockout at the time of refusal, or 
                        for medical reasons or a lack of sufficient 
                        physical strength or stamina''.
                    (B) Prohibition on sanctioning individual for 
                failure to engage in work if individual has a child 
                under age 6 months or if failure results from inability 
                to secure child care or after-school arrangements for a 
                child under age 13.--Section 407(e)(2) (42 U.S.C. 
                607(e)(2)) is amended by striking ``refusal'' and all 
                that follows and inserting ``failure of an individual 
                to engage in work required in accordance with this 
                section if--
                    ``(A) the individual is a single custodial parent 
                caring for a child who has not attained 6 months of 
                age; or
                    ``(B) the individual is the single custodial parent 
                caring for a child who has not attained 13 years of 
                age, and the failure resulted from the inability of the 
                individual to secure child care or after-school 
                arrangements for the child''.
            (3) Modifications to child support sanction.--Section 
        408(a)(2) (42 U.S.C. 608(a)(2)) is amended by striking 
        ``State--'' and all that follows and inserting ``State shall 
        deduct from the assistance that would otherwise be provided to 
        the family of the individual under the State program funded 
        under this part an amount equal to 25 percent of the amount of 
        the assistance.''.
    (e) Related State Plan Requirement.--Section 402(a) (42 U.S.C. 
602(a)) is amended by adding at the end the following:
            ``(8) Certification that employment assessments and 
        sanction reviews will be conducted by competent personnel.--A 
        certification by the chief executive officer of the State that 
        the employment assessments conducted pursuant to section 
        408(b)(1) and the sanction reviews conducted pursuant to 
        section 408(a)(14)(A) will be conducted by personnel who have 
        sufficient education, training, and professional competence to 
        do so, which shall include information on the education, 
        training, and professional competence that State will require 
        of the personnel.''.

SEC. 8. PROHIBITION ON IMPOSING LIMIT OF LESS THAN 60 MONTHS ON 
              DURATION OF ASSISTANCE.

    (a) Prohibition.--
            (1) In general.--Section 408(a)(7) (42 U.S.C. 608(a)(7)) is 
        amended--
                    (A) in the paragraph heading, by striking ``No 
                assistance for more than 5 years'' and inserting 
                ``Durational limits on assistance'';
                    (B) in the heading for subparagraph (A), by 
                striking ``In general'' and inserting ``No assistance 
                for more than 5 years''; and
                    (C) by adding at the end the following:
                    ``(H) Prohibition on limiting duration of 
                assistance to less than 60 months.--A State to which a 
                grant is made under section 403 shall not impose a 
                limit of less than 60 months on the duration for which 
                a family may be provided assistance from Federal or 
                State funds 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)).''.
            (2) Conforming amendment.--The heading of section 409(a)(9) 
        (42 U.S.C. 609(a)(9)) is amended by striking ``5-year limit'' 
        and inserting ``rules governing durational limits''.
    (b) Requirement To Conduct Outreach To Inform Potentially Eligible 
Families of Elimination of Durational Limit on Assistance of Less Than 
60 Months.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)), as 
        amended by section 7(d)(1) of this Act, is amended by adding at 
        the end the following:
            ``(15) Requirement to conduct outreach to inform 
        potentially eligible recipients of assistance of elimination of 
        durational limit on assistance of less than 60 months.--A State 
        to which a grant is made under section 403 for a fiscal year 
        that, before the effective date of this paragraph, denied 
        assistance under the State program funded under this part or 
        any other State program funded by qualified State expenditures 
        (as defined in section 409(a)(7)(B)(i)) to an individual or 
        family on the basis of a durational limit on the assistance 
        that was imposed other than under section 408(a)(7) shall 
        conduct outreach to inform individuals and families who were so 
        denied that they may be eligible for additional months of the 
        assistance.''.
            (2) Penalty.--Section 409(a) (42 U.S.C. 609(a)), as amended 
        by sections 5(c)(2)(A) and 7(d)(1) of this Act, is amended by 
        adding at the end the following:
            ``(18) Failure to conduct outreach to inform potentially 
        eligible recipients of assistance of elimination of durational 
        limit on assistance of less than 60 months.--If the Secretary 
        determines that a State to which a grant is made under section 
        403 in 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.''.
    (c) State Plan Required To Include Description of How Potentially 
Eligible Recipients Will Be Informed of Elimination of Durational Limit 
on Assistance of Less Than 60 Months.--Section 402(a)(1)(B) (42 U.S.C. 
602(a)(1)(B)) is amended by adding at the end the following:
                            ``(vi) In the case of a State that, before 
                        the date this clause takes effect, denied 
                        assistance under the program to an individual 
                        or family on the basis of a durational limit on 
                        the assistance that was imposed other than 
                        under section 408(a)(7), the document shall 
                        describe how the State intends to inform the 
                        individuals and families who were so denied 
                        that they may be eligible for additional months 
                        of the assistance.''.

SEC. 9. RESPONSE OF TANF PROGRAM TO ECONOMIC RECESSIONS.

    (a) Inapplicability of Durational Limit on Assistance.--Section 
408(a)(7) (42 U.S.C. 608(a)(7)), as amended by section 8(a)(1)(C) of 
this Act, is amended by adding at the end the following:
                    ``(I) Inapplicability of durational limit during 
                recession.--Subparagraph (A) shall not apply in a State 
                during any month which is in a high unemployment period 
                with respect to the State.
                    ``(J) Disregard of assistance provided during 
                recession.--In determining the number of months for 
                which an adult has received assistance under a State or 
                tribal program funded under this part or any other 
                State program funded by qualified State expenditures 
                (as defined in section 409(a)(7)(B)(i)), the State or 
                tribe shall disregard any month which is in a high 
                unemployment period with respect to the State.
                    ``(K) 6-month grace period required after 
                recession.--Subparagraph (A) shall not apply to a 
                recipient of assistance under the State program funded 
                under this part or any other State program funded by 
                qualified State expenditures (as defined in section 
                409(a)(7)(B)(i)) during the 6-month period that begins 
                with the month immediately following a high 
                unemployment period with respect to the State if the 
                recipient received the assistance for the last month of 
                the period.''.
    (b) Requirement To Conduct Outreach To Inform Potentially Eligible 
Families of Suspension of Durational Limit on Assistance.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)), as 
        amended by sections 7(d)(1) and 8(b)(1) of this Act, is amended 
        by adding at the end the following:
            ``(16) Requirement to conduct outreach to inform 
        potentially eligible recipients of assistance of suspension of 
        durational limit on assistance.--In each month which is a high 
        unemployment period with respect to a State to which a grant is 
        made under section 403 for a fiscal year, the State shall 
        conduct outreach to inform individuals and families who are 
        potentially eligible for assistance under the State program 
        funded under this part or any other State program funded by 
        qualified State expenditures (as defined in section 
        409(a)(7)(B)(i)) of the suspension of any durational limit on 
        assistance under the program.''.
            (2) Penalty.--Section 409(a) (42 U.S.C. 609(a)), as amended 
        by sections 5(c)(2)(A), 7(d)(1), and 8(b)(2) of this Act, is 
        amended by adding at the end the following:
            ``(19) Failure to conduct outreach to inform potentially 
        eligible recipients of assistance of suspension of durational 
        limit on assistance.--If the Secretary determines that a State 
        to which a grant is made under section 403 in 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) State Plan Required To Include Description of How Potentially 
Eligible Recipients Will Be Informed of Suspension of Time Limits 
During Recession.--Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as 
amended by section 8(c) of this Act, is amended by adding at the end 
the following:
                            ``(vii) The document shall describe how the 
                        State intends to inform potentially eligible 
                        recipients of assistance under the program of 
                        the suspension of durational limits on the 
                        assistance during a high unemployment period 
                        with respect to the State.''.
    (d) High Unemployment Period Defined.--Section 419 (42 U.S.C. 619) 
is amended by adding at the end the following:
            ``(6) High unemployment period defined.--The term `high 
        unemployment period' means, with respect to a State, a period 
        of 1 or more consecutive months if the average rate of total 
        unemployment in the State (seasonally adjusted) for the period 
        consisting of the then most recent 3 months for which data for 
        all States are published equals or exceeds 6.5 percent.''.

SEC. 10. REQUIREMENT THAT STATES USE MERIT-BASED SYSTEM IN 
              ADMINISTRATION OF TANF PROGRAMS.

    (a) Program Requirement.--Section 408(a) (42 U.S.C. 608(a)), as 
amended by sections 7(d)(1), 8(b)(1), and 9(b)(1) of this Act, is 
amended by adding at the end the following:
            ``(17) Requirement to use merit-based system in 
        administering program.--A State to which a grant is made under 
        section 403 shall establish and maintain personnel standards 
        through a merit-based system, in administering the State 
        program funded under this part and any other State program 
        funded by qualified State expenditures (as defined in section 
        409(a)(7)(B)(i)).''.
    (b) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by 
sections 5(c)(2)(A), 7(d)(1), 8(b)(2), and 9(b)(2) of this Act, is 
amended by adding at the end the following:
            ``(20) Penalty for failure to use merit-based system in 
        administering program.--If the Secretary determines that a 
        State to which a grant is made under section 403 in a fiscal 
        year has violated section 408(a)(17) 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.''.

SEC. 11. BAN ON USING FEDERAL TANF FUNDS TO REPLACE STATE AND LOCAL 
              SPENDING THAT DOES NOT MEET THE DEFINITION OF QUALIFIED 
              STATE EXPENDITURES.

    (a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)), as amended by 
sections 7(d)(1), 8(b)(1), 9(b)(1), and 10(a) of this Act, is amended 
by adding at the end the following:
            ``(18) Ban on using federal tanf funds to replace state or 
        local spending that is not a qualified state expenditure.--A 
        State to which a grant is made under section 403, and a sub-
        State entity that receives funds from such a grant, shall not 
        expend any part of the grant funds to supplant State or local 
        spending for benefits or services which are not qualified State 
        expenditures (within the meaning of section 
        409(a)(7)(B)(i)).''.
    (b) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by 
sections 5(c)(2)(A), 7(d)(1), 8(b)(2), 9(b)(2), and 10(b) of this Act, 
is amended by adding at the end the following:
            ``(21) Use of federal tanf funds to replace state or local 
        spending that is not a qualified state expenditure.--If the 
        Secretary determines that a State to which a grant is made 
        under section 403 in a fiscal year has violated section 
        408(a)(18) 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.''.

SEC. 12. TANF ASSISTANCE TO MEET BASIC FAMILY ECONOMIC NEEDS.

    (a) State Plan Requirement.--Section 402(a)(1)(B) (42 U.S.C. 
602(a)(1)(B)), as amended by sections 8(c) and 9(d) of this Act, is 
amended by adding at the end the following:
                            ``(viii) Family budget provisions.--The 
                        document shall set forth a family budget of a 
                        dollar amount sufficient to meet the basic 
                        economic needs (including food, clothing, 
                        shelter, utilities, household goods, personal 
                        care items, and general incidental expenses) of 
                        a family, how the family budget is adjusted for 
                        family size, the method used to estimate the 
                        family budget (including a statement of the 
                        relationship between shelter and utility costs 
                        and the fair market rents in localities in the 
                        State), and the relationship between the amount 
                        of assistance provided to each family under the 
                        program and the amount of the family budget for 
                        the family.''.
    (b) Program Requirement.--Section 408(a) (42 U.S.C. 608(a)), as 
amended by sections 7(d)(1), 8(b)(1), 9(b)(1), 10(a), and 11(a) of this 
Act, is amended by adding at the end the following:
            ``(19) Requirement that amount of assistance meet basic 
        economic needs.--A State to which a grant is made under section 
        403 shall ensure that the total amount of assistance provided 
        to a family under the State program funded under this part and 
        all programs funded with qualified State expenditures (as 
        defined in section 409(a)(7)(B)(i)) for which the family is 
        eligible is sufficient to meet the basic economic needs of the 
        family, taking into account all earned and unearned income of 
        the family and an amount not to exceed the value of the 
        supplemental nutrition assistance benefits provided to the 
        family under the Food and Nutrition Act of 2008.''.
    (c) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by 
sections 5(c)(2)(A), 7(d)(1), 8(b)(2), 9(b)(2), 10(b), and 11(b) of 
this Act, is amended by adding at the end the following:
            ``(22) Penalty for failure of state tanf assistance to meet 
        basic economic needs of a recipient family.--If the Secretary 
        determines that a State to which a grant is made under section 
        403 in a fiscal year has violated section 408(a)(19) 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.''.

SEC. 13. STATE PLANS AND REPORTS ON CHILD POVERTY.

    (a) Child Poverty Reduction as a Purpose of the TANF Program.--
Section 401(a)(1) (42 U.S.C. 601(a)(1)) is amended by redesignating 
paragraphs (1) through (4) as paragraphs (2) through (5), respectively, 
and by inserting before paragraph (2) (as so redesignated) the 
following:
            ``(1) reduce poverty among children;''.
    (b) State Plan Provisions.--
            (1) Matters required to be addressed.--Section 402(a)(1)(A) 
        (42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the 
        following:
                            ``(vii) Goals and methods for reducing 
                        child poverty.--Reduce child poverty using 
                        Federal funds provided under this part and 
                        State funds, including establishing numerical 
                        goals for reducing child poverty.
                            ``(viii) Goals and tracking of work 
                        outcomes.--Track work-related outcomes for 
                        recipients of assistance under the program, 
                        such as employment entries, wages, and job 
                        retention, including establishing numerical 
                        goals for work-related outcomes for recipients.
                            ``(ix) Provide preventative services to 
                        families at-risk of abuse or neglect.--Provide 
                        benefits and services to families at-risk of 
                        having their children removed from the home 
                        because of abuse and neglect, using Federal 
                        funds provided under this part and State funds.
                            ``(x) How noncustodial parents will be 
                        served.--Serve noncustodial parents, using 
                        Federal funds provided under this part and 
                        State funds.''.
            (2) Public availability.--Section 402(c) (42 U.S.C. 602(c)) 
        is amended to read as follows:
    ``(c) Public Availability.--
            ``(1) In general.--The State shall make available to the 
        public, including by posting on a public website of the State 
        or another appropriate website--
                    ``(A) each draft of any plan or plan amendment to 
                be submitted by the State under this section, for at 
                least 45 days before the submission; and
                    ``(B) any such plan or amendment certified by the 
                Secretary to be complete.
            ``(2) Procedures.--The State shall establish procedures to 
        receive and respond to comments from the public, private sector 
        organizations, and local governments on any draft referred to 
        in paragraph (1).''.
    (c) Annual Performance Report.--Section 411 (42 U.S.C. 611) is 
amended by adding at the end the following:
    ``(d) Annual Performance Report by States.--Not later than December 
31 of each year, each eligible State shall submit to the Secretary (in 
accordance with such form and content rules as the Secretary, in 
consultation with the National Governor's Association, National 
Association of State Legislatures, and the American Public Human 
Services Association, develops) a report on the following aspects of 
the State program funded under this part in the preceding fiscal year:
            ``(1) Whether the State met the child poverty reduction 
        goals set forth in the State plan. This part of the report 
        shall include a discussion of the factors, including benefits, 
        services, and activities funded with Federal funds provided 
        under this part or State funds, which contributed to the 
        meeting of, or the failure to meet, the goals.
            ``(2) Whether the work programs of the State were effective 
        in meeting the objectives and numerical goals of the State 
        plan. This part of the report shall include a discussion of 
        data derived from the tracking of recipients, including--
                    ``(A) the number of families that left the State 
                program funded under this part;
                    ``(B) the employment rate for those who left the 
                program in each calendar quarter;
                    ``(C) the wage rates of those who left the program, 
                including the percentage of leavers who, in each 
                calendar quarter, earned an amount equal to at least 50 
                percent of the average wage then paid in the State; and
                    ``(D) the employment outcomes of those who left the 
                program because of a durational limit on assistance, 
                reported at 6 months, 12 months, 24, months, and 36 
                months after leaving the program.
        The Secretary shall provide States with technical assistance in 
        preparing this part of the report, including by providing 
        States with data from the National Directory of New Hires.
            ``(3) Whether the State has been effective in providing 
        benefits and services under the program to persons with 
        disabilities. This part of the report shall include a report on 
        recipients of assistance under the State program funded under 
        this part who participated in work activities (as defined in 
        section 407(d)) pursuant to a modified employability plan due 
        to disability, including the following:
                    ``(A) The aggregate number of recipients with 
                modified employability plans due to a disability.
                    ``(B) The percentage of all recipients with 
                modified employability plans who substantially complied 
                with activities set forth in the plans each month of 
                the fiscal year.
                    ``(C) Information regarding the most prevalent 
                types of physical and mental impairments that provided 
                the basis for the disability determinations.
                    ``(D) The percentage of cases with a modified 
                employability plan in which the recipient had a 
                disability, was caring for a child with a disability, 
                or was caring for another family member with a 
                disability.
                    ``(E) A description of the most prevalent types of 
                modification in work activities or hours of 
                participation that were included in the modified 
                employability plans.
                    ``(F) A description of the qualifications of the 
                staff who determined whether individuals had a 
                disability, of the staff who determined that 
                individuals needed modifications to their work 
                requirements, and of the staff who developed the 
                modified employability plans.
            ``(4) The effectiveness of the benefits and services 
        provided under the State program in reducing the number of 
        children removed from their homes because of abuse and neglect. 
        This part of the report shall include an analysis which 
        includes the following:
                    ``(A) The number of families provided the benefits 
                or services that were at risk of having their children 
                removed from the home.
                    ``(B) The number of families served by the program 
                that had 1 or more children removed from the home 
                because of abuse or neglect.
            ``(5) An analysis of the extent to which the benefits and 
        services under the State program were provided to noncustodial 
        parents.
            ``(6) How funds provided to the State under this part, with 
        a separate accounting for funds provided under section 
        403(a)(3) and funds provided under section 403(b), were used to 
        serve areas of the State with the greatest need (as referred to 
        in section 402(a)(1)(A)(i)). This part of the report shall 
        include supporting data.''.
    (d) Annual Report to Congress on the Efforts of State Programs To 
Promote and Support Employment for Individuals With Disabilities.--
Section 411 (42 U.S.C. 611), as amended by subsection (b) of this 
section, is amended by adding at the end the following:
    ``(e) Report by Secretary.--Not later than July 31 of each fiscal 
year, the Secretary shall submit to the Congress a report, entitled 
`Efforts in State TANF Programs to Promote and Support Employment for 
Individuals with Disabilities', that includes information on State 
efforts to engage individuals with disabilities in work activities 
during the preceding fiscal year. The report shall include the 
following information:
            ``(1) For each State, the number of individuals for whom 
        the State has developed a modified employability plan.
            ``(2) The types of physical and mental impairments that 
        provided the basis for the disability determination, and 
        whether the individual with the disability was an adult 
        recipient or minor child head of household, a child, or a non-
        recipient family member.
            ``(3) The types of modifications that States have included 
        in modified employability plans.
            ``(4) The extent to which individuals with a modified 
        employability plan are participating in work activities.
            ``(5) For each State, an analysis of the extent to which 
        the option to establish modified employability plans was a 
        factor in the State achieving or not achieving the minimum 
        participation rate required by section 407(a).''.
    (e) Report to Congress on Legislative Options To Reward States With 
High Employment Rates and High Rates of Employment at Good Wages.--
Within 4 years after the effective date of this section, the Secretary 
of Health and Human Services shall submit to the Congress a report that 
sets forth options for the enactment of legislation to provide 
financial or other rewards to States that have high rates of employment 
and high rates of employment at good wages.

SEC. 14. REQUIREMENT THAT STATES ADOPT STANDARDS AND PROCEDURES TO 
              ADDRESS DOMESTIC AND SEXUAL VIOLENCE AMONG TANF 
              RECIPIENTS.

    (a) In General.--Section 402(a)(7) (42 U.S.C. 602(a)(7)) is 
amended--
            (1) by striking the paragraph heading and inserting 
        ``Certification of standards and procedures regarding domestic 
        and sexual violence'';
            (2) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) In general.--A certification by the chief 
                executive officer of the State that the State has 
                established and is enforcing standards and procedures 
                to ensure the right and entitlement of victims of 
                domestic or sexual violence (notwithstanding section 
                401(b)) seeking or receiving assistance under the State 
                program funded under this part or any other State 
                program funded by qualified State expenditures (as 
                defined in section 409(a)(7)(B)(i))--
                            ``(i) to be screened and identified while 
                        maintaining the confidentiality of the victims;
                            ``(ii) to be referred to counseling and 
                        supportive services;
                            ``(iii) to be granted a waiver, pursuant to 
                        a determination of good cause, of program 
                        requirements such as time limits (for so long 
                        as necessary), residency requirements, child 
                        support cooperation requirements, and family 
                        cap provisions, in cases where compliance with 
                        the requirements would make it more difficult 
                        for the victims to escape domestic or sexual 
                        violence or unfairly penalize the victims or 
                        other individuals who are at risk of further 
                        domestic or sexual violence;
                            ``(iv) to apply to participate in the 
                        program on the same day the victim appears in 
                        person in a program office during office hours;
                            ``(v) to have an application that contains 
                        the name, address, and signature of the victim 
                        considered to be filed on the date the 
                        application is submitted;
                            ``(vi) to receive at the time of 
                        application a clear, written statement 
                        explaining what the victim must do to cooperate 
                        in obtaining verification and otherwise 
                        completing the application process; and
                            ``(vii) if the victim has completed the 
                        application process, to have the eligibility of 
                        the victim for assistance determined promptly, 
                        and to be provided assistance retroactive to 
                        the application date if determined eligible 
                        within 30 days after the application date.''; 
                        and
            (3) in subparagraph (B)--
                    (A) in the subparagraph heading, by inserting ``or 
                sexual'' after ``Domestic''; and
                    (B) in the text, by inserting ``or sexual'' after 
                ``domestic''.
    (b) Report to the Congress on Best Practices of States.--Section 
413 (42 U.S.C. 613) is amended by adding at the end the following:
    ``(k) Report to Congress on Best Practices of States in Addressing 
Domestic and Sexual Violence Suffered by TANF Recipients.--Every 4 
years, the Secretary shall prepare and submit to the Congress a report 
which examines the practices of States in implementing section 
402(a)(7), and identifies the best practices used to do so.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2012.

SEC. 15. CHILD CARE ENTITLEMENT.

    (a) Replacement of Requirement That Portion of Funds Be Used for 
Certain Populations With Child Care Guarantee.--Section 418(b)(2) (42 
U.S.C. 618(b)(2)) is amended to read as follows:
            ``(2) Child care to be guaranteed for certain 
        populations.--As a condition of receiving funds under this 
        section, a State shall guarantee the provision of child care 
        services to--
                    ``(A) each recipient of assistance under the State 
                program funded under this part or under a State program 
                funded with qualified State expenditures (as defined in 
                section 409(a)(7)(B)(i)) of this Act, and to each work-
                eligible individual (as defined in section 407(a)(2) of 
                this Act), for any period in which the recipient or 
                individual is--
                            ``(i) participating in a work activity (as 
                        defined in section 407(d) of this Act);
                            ``(ii) employed, and in a family the total 
                        income of which does not exceed 250 percent of 
                        the poverty line (within the meaning of section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981, including any revision required by 
                        such section applicable to a family of the size 
                        involved); or
                            ``(iii) engaged in employment subsidized by 
                        the State; or
                    ``(B) each individual who is a former recipient of 
                assistance under such a program or a former work-
                eligible individual, for any portion of the 24-month 
                period, beginning with the date the individual left the 
                program involved, in which the individual is employed 
                and in a family that meets the income requirement of 
                subparagraph (A)(ii).''.
    (b) Elimination of State Caps.--Section 418(a) (42 U.S.C. 618(a)) 
is amended--
            (1) in paragraph (2)--
                    (A) by striking subparagraphs (B) and (D) and 
                redesignating subparagraph (C) as subparagraph (B); and
                    (B) in subparagraph (B) (as so redesignated), by 
                striking ``the lesser of the State's allotment under 
                subparagraph (B) or''; and
            (2) in paragraph (5), by striking ``(2)(C)'' and inserting 
        ``(2)(B)''.
    (c) Open-Ended Entitlement.--Section 418(a) (42 U.S.C. 618(a)) is 
amended--
            (1) in paragraph (1), by striking ``Subject to the amount 
        appropriated under paragraph (3), each'' and inserting 
        ``Each''; and
            (2) in paragraph (3), by striking ``appropriated--'' and 
        all that follows and inserting ``appropriated such sums as are 
        necessary to carry out this section for each fiscal year.''.
    (d) Use of Funds in Accordance With Child Care and Development 
Block Grant Act of 1990 Except as Required by Child Care Guarantee.--
Section 418(c) (42 U.S.C. 618(c)) is amended by inserting ``except to 
the extent that such a requirement or limitation would interfere with 
the provision of child care services required by subsection (b)(2)'' 
before the period.

SEC. 16. CHILD SUPPORT ENFORCEMENT.

    (a) Elimination of Ban on Providing Assistance to Families Not 
Assigning Certain Support Rights to the State.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)) is 
        amended by striking paragraph (3).
            (2) Conforming amendments.--The following provisions are 
        each amended by inserting after ``section 408(a)(3)'' the 
        following: ``(as in effect before the effective date of the 
        amendments made by section 10(a) of the Rewriting to Improve 
        and Secure an Exit Out of Poverty Act took effect)'':
                    (A) Section 452(a)(10)(C) (42 U.S.C. 
                652(a)(10)(C)).
                    (B) Section 452(h) (42 U.S.C. 652(h)).
                    (C) Section 454(5)(A) (42 U.S.C. 654(5)(A)).
                    (D) Section 456(a)(1) (42 U.S.C. 656(a)(1)).
                    (E) Section 457(a)(2)(B)(i) (42 U.S.C. 
                657(a)(2)(B)(i)).
                    (F) Section 457(a)(3)(A) (42 U.S.C. 657(a)(3)(A)).
                    (G) Section 457(a)(3)(B) (42 U.S.C. 657(a)(3)(B)).
                    (H) Section 464(a)(1) (42 U.S.C. 664(a)(1)).
                    (I) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)).
    (b) Requirement That All Child Support Collected on Behalf of a 
Child in a Family Receiving TANF Be Distributed to the Family.--
            (1) In general.--Section 457 (42 U.S.C. 657) is amended--
                    (A) in subsection (c)(1), by striking ``means--'' 
                and all that follows through ``(B) foster'' and 
                inserting ``means foster''; and
                    (B) by adding at the end the following:
    ``(f) Notwithstanding the preceding provisions of this section, all 
amounts collected by a State as child support on behalf of a child in a 
family that is receiving assistance under the State program funded 
under part A or under the State plan approved under part A of this 
title (as in effect on the day before the date of the enactment of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 
1996) shall be distributed to the family.''.
            (2) Conforming amendments.--Section 458(b)(5)(C)(i)(I) (42 
        U.S.C. 658(b)(5)(C)(i)(I)) is amended--
                    (A) by inserting ``is collected on behalf of a 
                child described in section 457(f) or'' after 
                ``involved''; and
                    (B) by striking ``A or''.

SEC. 17. STATE OPTION TO EXTEND ELIGIBILITY FOR ASSISTANCE TO CHILDREN 
              THROUGH AGE 21; PROHIBITION ON CONSIDERING FINANCIAL AID 
              TIED TO EDUCATION OF CHILD IN DETERMINING ELIGIBILITY 
              FOR, OR AMOUNT OF ASSISTANCE; PROHIBITION ON IMPOSING 
              ADDITIONAL REQUIREMENTS BASED ON EDUCATIONAL ENROLLMENT 
              OF CHILD.

    (a) State Option To Extend TANF to Children Under Age 22.--Section 
419(a)(2) (42 U.S.C. 619(a)(2)) is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) at the option of the State, has not attained 22 years 
        of age.''.
    (b) Ban on Considering Financial Aid Tied to Education of Child in 
Determining Eligibility for, or Amount of Assistance; Ban on Imposing 
Additional Requirements Based on Educational Enrollment of Child.--
            (1) Prohibitions.--Section 408(a) (42 U.S.C. 608(a)), as 
        amended by sections 5(c)(2)(A), 7(d)(1), 8(b)(1), 9(b)(1), 
        10(a), 11(a), and 12(b) of this Act, is amended by adding at 
        the end the following:
            ``(20) Ban on considering financial aid tied to education 
        of child in determining eligibility for, or amount of 
        assistance; ban on imposing additional requirements based on 
        educational enrollment of child.--A State to which a grant is 
        made under section 403 for a fiscal year shall not--
                    ``(A) consider financial aid tied to the training, 
                school attendance, or postsecondary school attendance 
                of a minor child in determining that the eligibility of 
                the family of the child for, or the amount of 
                assistance to be provided to the family, under the 
                State program funded under this part or any other State 
                program funded by qualified State expenditures (as 
                defined in section 409(a)(7)(B)(i)); or
                    ``(B) impose additional requirements on a family 
                solely because the family includes a minor child who is 
                enrolled in a training program, school, or post-
                secondary educational institution.''.
            (2) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by 
        sections 5(c)(2)(A), 7(d)(1), 8(b)(2), 9(b)(2), 10(b), 11(b), 
        and 12(c) of this Act, is amended by adding at the end the 
        following:
            ``(23) Considering educational enrollment of child or of 
        financial aid tied to education of child.--If the Secretary 
        determines that a State to which a grant is made under section 
        403 in a fiscal year has violated section 408(a)(20) 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.''.

SEC. 18. ELIMINATION OF CERTAIN OTHER BARS TO TANF ASSISTANCE.

    (a) Bar on Assistance for Persons Convicted of Drug Felonies.--
Section 115 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (21 U.S.C. 862a) is amended--
            (1) in the section heading by striking ``assistance and'' 
        and inserting ``supplemental nutrition assistance'';
            (2) in subsection (a), by striking ``for--'' and all that 
        follows through ``(2) benefits'' and inserting ``for 
        benefits'';
            (3) in subsection (b), by striking all through ``The amount 
        of benefits'' and inserting the following:
    ``(b) Effects on Benefits for Others.--The amount of benefits'';
            (4) in subsection (c), by striking ``assistance or''; and
            (5) in subsection (e), by striking ``it--'' and all that 
        follows through ``in section 3(s)'' and inserting ``it in 
        section 3(s)''.
    (b) Bar on Assistance for Unwed Teen Parents Not in School.--
Section 408(a) (42 U.S.C. 608(a)) is amended by striking paragraph (4).
    (c) Bar on Assistance for Teens Not in an Adult-Supervised Living 
Arrangement.--Section 408(a) (42 U.S.C. 608(a)) is amended by striking 
paragraph (5).
    (d) Redesignation of Provisions.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)), as 
        amended by the preceding provisions of this Act, is amended by 
        redesignating paragraphs (6) through (20) as paragraphs (3) 
        through (17), respectively.
            (2) Conforming amendments.--
                    (A) Section 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)) 
                is amended by striking ``408(a)(7)(C)(iii)'' and 
                inserting ``408(a)(4)(C)(iii)''.
                    (B) Section 403(a)(5)(C)(ii)(II) (42 U.S.C. 
                603(a)(5)(C)(ii)(II)) is amended by striking 
                ``408(a)(7)(C)'' and inserting ``408(a)(4)(C)''.
                    (C) Section 403(a)(5)(C)(v) (42 U.S.C. 
                603(a)(5)(C)(v)) is amended by striking ``408(a)(7)'' 
                and inserting ``408(a)(4)''.
                    (D) Section 409(a)(7)(B)(i)(IV) (42 U.S.C. 
                609(a)(7)(B)(i)(IV)) is amended by striking 
                ``408(a)(7)'' and inserting ``408(a)(4)''.
                    (E) Section 409(a)(9) (42 U.S.C. 609(a)(9)) is 
                amended by striking ``408(a)(7)'' and inserting 
                ``408(a)(4)''.
                    (F) Section 409(a)(16), as added by section 
                7(d)(1)(A)(ii) of this Act, is amended by striking 
                ``408(a)(13)'' and inserting ``408(a)(10)''.
                    (G) Section 409(a)(17), as added by section 
                7(d)(1)(B)(ii) of this Act, is amended by striking 
                ``408(a)(14)'' and inserting ``408(a)(11)''.
                    (H) Section 409(a)(18), as added by section 8(b)(2) 
                of this Act, is amended by striking ``408(a)(15)'' and 
                inserting ``408(a)(12)''.
                    (I) Section 409(a)(19), as added by section 9(b)(2) 
                of this Act, is amended by striking ``408(a)(16)'' and 
                inserting ``408(a)(13)''.
                    (J) Section 409(a)(20), as added by section 10(b) 
                of this Act, is amended by striking ``408(a)(17)'' and 
                inserting ``408(a)(14)''.
                    (K) Section 409(a)(21), as added by section 11(b) 
                of this Act, is amended by striking ``408(a)(18)'' and 
                inserting ``408(a)(15)''.
                    (L) Section 409(a)(22), as added by section 12(c) 
                of this Act, is amended by striking ``408(a)(19)'' and 
                inserting ``408(a)(16)''.
                    (M) Section 409(a)(23), as added by section 
                17(b)(2) of this Act, is amended by striking 
                ``408(a)(20)'' and inserting ``408(a)(17)''.
                    (N) Section 411(a)(1)(A)(xvi) (42 U.S.C. 
                611(a)(1)(A)(xvi)) is amended by striking ``408(a)(7)'' 
                and inserting ``408(a)(7)(A)''.

SEC. 19. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, this Act 
and the amendments made by this Act shall take effect on October 1, 
2011, and shall apply to payments under title IV of the Social Security 
Act for calendar quarters beginning on or after such date, without 
regard to whether regulations to implement the amendments are 
promulgated by such date.
    (b) Delay Permitted if State Legislation Required.--If the 
Secretary of Health and Human Services determines that State 
legislation (other than legislation appropriating funds) is required in 
order for a State plan under part A or E of title IV of the Social 
Security Act to meet the additional requirements imposed by the 
amendments made by this Act, the plan shall not be regarded as failing 
to meet any of the additional requirements before the 1st day of the 
1st 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. If the State has a 2-year legislative session, 
each year of the session is deemed to be a separate regular session of 
the State legislature.
                                 <all>