[Congressional Record Volume 149, Number 17 (Thursday, January 30, 2003)]
[Senate]
[Pages S1822-S1827]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN:
  S. 263. A bill to amend part A of title IV of the Social Security Act 
to require a comprehensive strategic plan for the State temporary 
assistance to needy families program and to give States the flexibility 
to implement innovative welfare programs that have been effective in 
other States; to the Committee on Finance.
  Mr. BINGAMAN. Mr. President, I rise today to introduce three welfare 
bills. Although these bills do not represent a comprehensive welfare 
reform proposal, they do address what I see as some of the most 
critical and pressing issues we must deal with as we move toward 
improving the TANF program.
  Let me begin by introducing the Children First Act on behalf of 
myself, Mr. Kerry, Mr. Daschle, Mr. Kennedy, Ms. Landrieu, Mr. 
Sarbanes, Mrs. Lincoln, Mrs. Murray, Mr. Levin, Mr. Corzine, Mrs.  
Clinton, Mr. Johnson, Mr. Akaka, Mr. Leahy, Mr. Dodd, Mr. Lautenberg 
and Mr. Reed).
  Since 1996, federal funding for child care assistance under the Child 
Care and Development Block Grant, CCDBG, has significantly increased, 
making it possible for states to provide more low-income families with 
child care assistance and to expand initiatives to improve the quality 
of child care. This has been an extremely important endeavor. Access to 
high quality childcare is crucial in helping families to work and 
children to succeed.
  Most people agree that the recent employment gains among welfare 
recipients can only be sustained if families have access to dependable 
child care. Studies show that when childcare is available and when 
families get help in paying for care, they are more likely to work. In 
fact, when I talk to people in my home State of New Mexico about 
welfare reform, they identify access to childcare as the most important 
work support we can provide.
  Despite the past increases in the CCDBG, we must do more. Overall, 
only one out of seven children eligible for assistance through the 
CCDBG program receives a subsidy, leaving approximately 12.9 million 
eligible children without assistance. Less than 25 percent of New 
Mexican children under the age of six who are eligible for childcare 
assistance are currently receiving it. Unfortunately, the need for 
childcare assistance is only likely to increase in the near future. 
Many states are currently threatened with serious budget shortfalls 
that threaten the availability of funds for numerous important 
endeavors, including childcare assistance. In addition, the 
administration's recently proposed TANF plan includes provisions for 
increased work requirements for recipients. If passed, this would 
create an increased need for welfare support services, especially 
childcare. Without subsidized care, many of our Nation's poor families 
simply cannot afford to work.
  We must not only seek to increase access to childcare overall, but 
also to ensure the improved quality of such care. Currently, many 
families receiving assistance cannot provide their children with a high 
quality childcare setting. In part, this is because the childcare 
reimbursement rates are so low that many of the higher quality 
providers do not accept state-subsidized children into their programs. 
Low salaries and the lack of health care and other benefits also make 
it difficult to attract and retain highly qualified childcare workers. 
These are major issues given that quality childcare provides low-income 
children with the early learning experiences they need to do well in 
school and in life. We know that children in high quality early care 
are more likely to experience academic success, for example, higher 
test scores and an increased likelihood of graduating from high school, 
and less likely to experience social problems such as being charged in 
juvenile court or being aggressive toward others.

  The Children First Act will address these important issues by 
increasing funds for the CCDBG by $11.2 billion over 5 years. With 
these funds, States will be able to serve approximately 1 million more 
children nationally. The bill also contains an increase in the quality 
set-aside in CCDBG, which will provide States with funds that can be 
used to train care providers and create and enforce standards of care.
  I urge my colleagues to support this important piece of legislation. 
It will help low-income families work and help prepare our children to 
succeed.
  Next, I would like to introduce the Education Works Act on behalf of 
myself and Mrs. Murray, Mr. Dodd, Mr. Reed, Mr. Corzine, and Mr. Wyden.
  Since the 1996 changes in our welfare laws, the number of individuals 
on welfare has dramatically decreased in most States. However, although 
many have successfully left welfare for work over the past several 
years, too many have been left behind because they don't have a high 
school degree, have little or no work history, or are lacking the 
skills that are important for success in the job market. In addition, 
many of those who have secured work are working for low wages, receive 
few or no benefits, and have limited opportunity for upward financial 
mobility. As we move toward reauthorization, we must do more to support 
State efforts to insure that all individuals leaving welfare have the 
capacity to obtain employment that will provide long-term financial 
independence. The Education Works Act will do just that.
  We know that the welfare programs that have been most successful in 
helping parents work and earn more over the long run are those that 
have focused on employment but also make substantial use of education 
and training, together with job search and other employment services. 
Yes, less than 1 percent of Federal TANF funds were spent on education 
and training in 2000, largely because current law limits the extent to 
which education activities count toward Federal work participation 
requirements, effectively restricting how long individuals can 
participate in training and also capping how many people can receive 
these services.
  The Education Works Act would change this by: clarifying that states 
have the flexibility to allow participation in postsecondary, 
vocational English as a Second Language, and basic adult education 
programs by

[[Page S1823]]

TANF recipients as part of TANF work requirements; giving States the 
flexibility to determine how long each recipient may participate in 
education and training activities while receiving benefits; giving 
states the flexibility to provide non-cash assistance in the form of 
childcare and transportation supports to individuals who are 
participating in a full-time education program, without counting these 
services against the 5-year time limit on TANF benefits; eliminating 
the 30 percent cap on the number of TANF recipients that can 
participate in education and training programs in fulfillment of their 
work requirements.

  Via TANF waivers, many States have already been operating programs 
that do many of the things we're talking about here. In other cases, 
however, state efforts to provide education and training to welfare 
recipients have been hampered by an inability to use TANF funds to 
support these efforts. For example, in my home State, we already have 
an ``Education Works'' program but only 400 participants are enrolled 
statewide, due to funding limitations.
  States should be held accountable for decreasing welfare caseloads 
but also for insuring that those entering the workforce have the skills 
they need to become and remain economically self-sufficient. We need to 
give all states the flexibility to implement the types of programs that 
they believe will best achieve these goals. The Education Works Act is 
an important step in this direction and I urge my colleagues to support 
it.
  Finally, I would like to introduce the Self-Sufficiency and 
Accountability Act. This Act has several broad goals: to increase state 
reporting and accountability for welfare dollars that are received, to 
encourage states to develop concrete strategies to help families move 
from welfare to self-sufficiency, and to allow states not currently 
receiving TANF waivers to do so.
  First, State plan requirements under current welfare law are simply 
not comprehensive enough. Under current law, States can submit plans 
that contain little information about the services that will be 
provided, long-range or strategic planning, goals or benchmarks, or how 
they will insure equitable treatment of all welfare clients. In 
addition, there are currently few provisions for informing the public 
about the details contained in state plans. Thus, States have little or 
no accountability to legislators or to the public for the billions of 
welfare dollars they receive each year.
  The Self-Sufficiency and Accountability Act seeks to remedy these 
deficits. Some of the key provisions include the following: 
comprehensive state plans would be required to describe the programs 
and services that will be offered, eligibility requirements, the 
purposes and goals for all programs and how these goals will be 
assessed; the new State plans would increase compliance with 
nondiscrimination, employment, and civil rights laws by requiring among 
other things, better training of caseworkers, better communication with 
welfare clients about their rights and obligations, an appeals process, 
reporting requirements for complaints, and penalties for states that 
fail to comply with these requirements; the Act would improve public 
awareness of and access to State plans in their entirety and provides 
opportunity for public comment when a state plan is pending or being 
amended.
  As I mentioned earlier, large numbers of individuals have moved from 
the welfare rolls to work since 1996. During the current welfare 
reauthorization, we must look beyond simply putting people to work and 
focus on strategies that will help these individuals achieve lasting 
economic self-sufficiency. Unfortunately, the current content and 
structure of state plans are wholly inadequate to address these crucial 
self-sufficiency concerns. The self-Sufficiency and Accountability Act 
will address these shortcomings by encouraging States to develop 
concrete strategies designed to move families toward self-sufficiency. 
The bill requires States to identify and address individual and 
environmental barriers to self-sufficiency, describe program strategies 
implemented to promote self-sufficiency, and to assess the progress of 
former welfare families in this regard.
  The final purpose of this bill is to address the issue of increased 
State flexibility to implement programs that have been proven 
effective. After the last reauthorization, many states obtained and 
some continue to use TANF waivers to develop innovative welfare 
programs that are suited to the specific needs of their TANF caseloads 
and labor market conditions in their states. This Act would allow 
states that currently have waivers to continue to operate under those 
waivers. In addition, the Act stipulates that any state may submit a 
waiver application on terms similar or identical to states that are 
successfully implementing innovative programs. In this way, all States 
would be provided with the flexibility to employ proven strategies in 
an effort to address the unique needs of their welfare clients.
  Taken together, the three bills I have introduced today would go a 
long way toward helping people transition from welfare and providing 
these individuals with the skills and supports they need to achieve a 
lifetime of productive and financially sustaining work.
  I urge my colleagues to support these three bills and I ask unanimous 
consent that the text of the bills be printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                 S. 261

       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 ``Children First Act of 
     2003''.

     SEC. 2. EXCLUSION OF CHILD CARE FROM DETERMINATION OF 5-YEAR 
                   LIMIT.

       Section 408(a)(7) of the Social Security Act (42 U.S.C. 
     608(a)(7)) is amended by adding at the end the following:
       ``(H) Limitation on meaning of `assistance' for families 
     receiving child care.--For purposes of subparagraph (A), any 
     funds provided under this part that are used to provide child 
     care for a family during a month under the State program 
     funded under this part shall not be considered assistance 
     under the program.''.

     SEC. 3. INCREASE IN FUNDING FOR CHILD CARE.

       (a) Increase in Funding.--Section 418(a)(3) of the Social 
     Security Act (42 U.S.C. 618(a)(3)) is amended--
       (1) by striking ``and'' at the end of subparagraph (E);
       (2) by striking the period at the end of subparagraph (F) 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(G) $3,967,000,000 for fiscal year 2003;
       ``(H) $4,467,000,000 for fiscal year 2004;
       ``(I) $4,967,000,000 for fiscal year 2005;
       ``(J) $5,467,000,000 for fiscal year 2006; and
       ``(K) $5,967,000,000 for fiscal year 2007.''.
       (b) Increase in Set Aside for Child Care Quality.--Section 
     658G of the Child Care and Development Block Grant Act of 
     1990 (42 U.S.C. 9858e) is amended by striking ``4 percent'' 
     and inserting ``10 percent''.

     SEC. 4. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF 
                   FUNDS CARRIED OVER FROM PRIOR YEARS TO PROVIDE 
                   TANF BENEFITS AND SERVICES.

       Section 404(e) of the Social Security Act (42 U.S.C. 
     604(e)) is amended--
       (1) in the subsection heading, by striking ``Assistance'' 
     and inserting ``benefits or services''; and
       (2) after the heading, by striking ``assistance'' and 
     inserting ``any benefit or service that may be provided''.

     SEC. 5. APPLICATION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT 
                   ACT OF 1990 REPORTING RULES TO TANF FUNDS 
                   EXPENDED FOR CHILD CARE.

       (a) In General.--Section 411(a) of the Social Security Act 
     (42 U.S.C. 611(a)) is amended--
       (1) by redesignating paragraph (7) as paragraph (8); and
       (2) by inserting after paragraph (6), the following:
       ``(7) Application of child care and development block grant 
     act of 1990 reporting rules to funds expended for child 
     care.--Any funds provided under this part that are expended 
     for child care, whether or not transferred to the Child Care 
     and Development Block Grant Act of 1990, shall be subject to 
     the individual and case data reporting requirements imposed 
     under that Act and need not be included in the report 
     required by paragraph (1) for a fiscal quarter.''.
       (b) Conforming Amendment.--Section 411(a)(1)(A)(ix) of such 
     Act (42 U.S.C. 611(a)(1)(A)(ix)) is amended by striking 
     ``food stamps, or subsidized child care, and if the latter 
     2,'' and inserting ``or food stamps, and if the latter,''.

     SEC. 6. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), the 
     amendments made by this Act shall take effect as if enacted 
     on October 1, 2002, and shall apply to payments under part A 
     of title IV of the Social Security Act for calendar quarters 
     beginning on or after such date, without regard to whether 
     regulations to implement the amendments are promulgated by 
     such date.
       (b) Delay Permitted if State Legislation Required.--In the 
     case of a State plan

[[Page S1824]]

     under section 402(a) of the Social Security Act which the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order for the plan to meet the additional 
     requirements imposed by the amendments made by this Act, the 
     State plan shall not be regarded as failing to comply with 
     the requirements of such section 402(a) solely on the basis 
     of the failure of the plan to meet such additional 
     requirements before the 1st day of the 1st calendar quarter 
     beginning after the close of the 1st regular session of the 
     State legislature that begins after the date of the enactment 
     of this Act. For purposes of the previous sentence, in the 
     case of a State that has a 2-year legislative session, each 
     year of such session shall be deemed to be a separate regular 
     session of the State legislature.
  Mr. KERRY. Mr. President, today my colleague Senator Bingaman and I 
are reintroducing our bill to increase mandatory funding for the Child 
Care and Development Block Grant, CCDBG. Our legislation, the Children 
First Act would increase the mandatory funding stream of CCDBG by $11.2 
billion over the next five years.
  Congress understands that working families need help paying for child 
care. Indeed, funding for CCDBG has grown significantly over the past 
several years. Yet despite these increases, funding still only reaches 
one in seven eligible children nationwide, leaving approximately 12.9 
million eligible children without any assistance. Roughly 500,000 
children are on waiting lists for help around the country and 21,000 
children are on the waiting list for child care assistance in 
Massachusetts.
  The need for child care assistance in Massachusetts is tremendous. 
Currently, 60 percent of Massachusetts children under age six have 
mothers in the workforce, and 16.4 percent of Massachusetts children 
under age five live in poverty. Child care costs at an urban center for 
a four-year-old averages $8,121 per year and the costs for an infant 
averages $12,978. That's 223 percent more than the cost of public 
college tuition in Massachusetts! It's just shocking to me, Mr. 
President, that we expect families to bear the burden of such costly 
child care services, they simply cannot afford to do it and are forced 
either not to work or to leave their children in substandard, and many 
times even dangerous care. CCDBG is a critically important program to 
helping poor families afford child care, but we haven't done nearly 
enough to fill the existing child care gap. Even combining CCDBG and 
state child care funding in Massachusetts only reaches 13 percent of 
eligible children.
  Senator Bingaman and I led the effort to increase child care funding 
during the welfare reform debate last year and we will do so again this 
year. But today there is an even more dire need for child care funding 
than there was one year ago. State governments face a fiscal crisis of 
historical proportions and as a result have been forced to make severe 
cuts in social services. In fact child care subsidies for working 
parents have been scaled back in a number of states. Unfortunately it's 
likely that the federal government may compound those state cuts. The 
FY 2003 Omnibus Appropriations bill passed last week by the Senate 
would cut CCDBG discretionary funds by approximately $60.9 million 
below FY 2002 levels. As a result, 38,000 fewer children would have 
access to child care assistance at a time when only one in seven 
eligible children receive services.
  Increased availability and the quality of child care helps achieve 
two important goals: First, it enables low-income parents on welfare 
and parents trying to stay off welfare to work and support their 
families. And second, it provides the early learning experiences that 
our children need to do well in school. Studies show that when child 
care is available, and when families get help paying for care, they are 
more likely to work. Children in high quality early care score higher 
on reading and math tests, are more likely to complete high school and 
go onto college, and are less likely to repeat a grade or get charged 
in juvenile court.
  Increased child care funding is an investment that we cannot afford 
NOT to make. I look forward to teaming up with Senator Bingaman in the 
Finance Committee during welfare reauthorization to increase CCDBG 
funding. I urge all of my colleagues to join us in the fight to provide 
all working families with safe, high-quality child care.

                                 S. 262

       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 ``Education Works Act of 
     2003''.

     SEC. 2. COUNTING EDUCATION AND TRAINING AS WORK.

       Section 407(d)(8) of the Social Security Act (42 U.S.C. 
     607(d)(8)) is amended to read as follows:
       ``(8) participation in vocational educational training, 
     postsecondary education, an English-as-a-second-language 
     program, or an adult basic education program;''.

     SEC. 3. ELIMINATION OF LIMIT ON NUMBER OF TANF RECIPIENTS 
                   ENROLLED IN VOCATIONAL EDUCATION OR HIGH SCHOOL 
                   WHO MAY BE COUNTED TOWARDS THE WORK 
                   PARTICIPATION REQUIREMENT.

       Section 407(c)(2) of the Social Security Act (42 U.S.C. 
     607(c)(2)) is amended by striking subparagraph (D).

     SEC. 4. NONAPPLICATION OF TIME LIMIT TO INDIVIDUALS WHO DO 
                   NOT RECEIVE CASH ASSISTANCE AND ARE ENGAGED IN 
                   EDUCATION OR EMPLOYMENT.

       Section 408(a)(7) of the Social Security Act (42 U.S.C. 
     608(a)(7)) is amended by adding at the end the following:
       ``(H) Limitation on meaning of `assistance' for certain 
     individuals.--For purposes of this paragraph, child care or 
     transportation benefits provided during a month under the 
     State program funded under this part to an individual who is 
     participating in a full-time educational program or who is 
     employed shall not be considered assistance under the State 
     program.''.

     SEC. 5. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     the amendments made by this Act shall take effect as if 
     enacted on October 1, 2002, and shall apply to payments made 
     under part A of title IV of the Social Security Act for 
     calendar quarters beginning on or after such date, without 
     regard to whether regulations to implement the amendments are 
     promulgated by such date.
       (b) Delay Permitted if State Legislation Required.--In the 
     case of a State plan under section 402(a) of the Social 
     Security Act which the Secretary of Health and Human Services 
     determines requires State legislation (other than legislation 
     appropriating funds) in order for the plan to meet the 
     additional requirements imposed by the amendments made by 
     this Act, the State plan shall not be regarded as failing to 
     comply with the requirements of such section 402(a) solely on 
     the basis of the failure of the plan to meet such additional 
     requirements before the 1st day of the 1st calendar quarter 
     beginning after the close of the 1st regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of the previous sentence, in the case 
     of a State that has a 2-year legislative session, each year 
     of such session shall be deemed to be a separate regular 
     session of the State legislature.

                                 S. 263

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Self Sufficiency and 
     Accountability Act of 2003''.

     SEC. 2. COMPREHENSIVE STRATEGIC TANF PLAN.

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

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

       ``(a) In General.--As used in this part, the term `eligible 
     State' means, with respect to a fiscal year, a State that, 
     during the 27-month period ending with the close of the 1st 
     quarter of the fiscal year, has submitted to the Secretary, 
     and revised when necessary in accordance with subsection (b), 
     a written plan that the Secretary has found includes the 
     following:
       ``(1) Outline of family assistance program.--
       ``(A) Programmatic information.--Information relating to 
     the State program, including the following:
       ``(i) With respect to each program that will be funded 
     under this part, or with qualified State expenditures claimed 
     by the State to meet the requirements of section 409(a)(7), 
     over the 2-year period for which the plan is being 
     submitted--

       ``(I) the name of the program;
       ``(II) the goals of the program;
       ``(III) a description of the benefits and services provided 
     in the program;
       ``(IV) a description of principal eligibility rules and 
     populations served under the program, including the 
     circumstances under which the State provides benefits or 
     services to individuals who are not citizens of the United 
     States;
       ``(V) a description of how the State will ensure fair and 
     equitable treatment among program applicants and recipients 
     and how the State will provide opportunities for applicants 
     and recipients who have been adversely affected to be heard 
     in a State administrative or appeal process, including a 
     description of the steps that the State has taken (or will 
     take) to ensure--

       ``(aa) compliance with nondiscrimination, civil rights, and 
     employment laws throughout the process of providing services 
     under this part, including at the time of application for 
     benefits, during the applicant assessment process, when 
     determining availability

[[Page S1825]]

     of an eligibility for benefits and services, during the 
     actual delivery of services or benefits, and when deciding to 
     terminate benefits in full or in part; and
       ``(bb) that program applicants and recipients are aware of 
     their rights and the process for enforcing their rights; and

       ``(VI) a description of how the program meets 1 or more of 
     the purposes described in section 401 or, in the case of a 
     program funded with qualified State expenditures, how the 
     program meets the criteria in section 409(a)(7)(B).

       ``(ii) With respect to each program that will be funded 
     under this part, or with qualified State expenditures claimed 
     by the State to meet the requirements of section 409(a)(7), 
     over the 2-year period for which the plan is being submitted 
     and that provides assistance--

       ``(I) a description of the applicable financial and 
     nonfinancial eligibility rules including, income eligibility 
     thresholds, the treatment of earnings, asset eligibility 
     rules, and excluded forms of income;
       ``(II) a description of applicable work-related 
     requirements, including which adults are required to 
     participate in such activities, the activities in which they 
     can participate, the criteria for determining the activity an 
     adult is assigned to, and the procedures used to screen and 
     assess participants for barriers to employment including 
     physical or mental impairments, substance abuse, learning 
     disabilities, domestic violence, inadequate or unstable 
     housing and very low basic skills;
       ``(III) a description of applicable time limit policies, 
     including the length of the time limit, exemption and 
     extension policies, and procedures and policies for providing 
     services to families reaching time limits and who have lost 
     assistance due to time limits; and

       ``(IV) a description of applicable sanction policies and 
     procedures, including the program requirements for which a 
     sanction can be applied for failure to comply, the amount and 
     duration of sanctions, the State-defined criteria that 
     constitute good cause for failing to meet each program 
     requirement for which a sanction may be imposed, how the 
     State will comply with the requirement in section 407(e)(2), 
     and the procedures in place to identify families who are 
     unable to comply with program requirements due to various 
     barriers (such as physical or mental impairments, domestic 
     violence, unavailable or inaccessible child care, illiteracy, 
     lack of English proficiency) and procedures for providing 
     services to those families rather than imposing a sanction on 
     them.

       ``(iii) A description of--

       ``(I) the primary problems that families receiving 
     assistance, and families who have recently stopped receiving 
     assistance, under the State program funded under this part, 
     or under a program funded with qualified State expenditures 
     as defined in section 407(a)(7), experience in securing and 
     retaining adequate, affordable housing and the estimated 
     extent of each such problem, including the price of such 
     housing in various parts of the State that include a large 
     proportion of recipients of assistance under the State 
     program, and the steps that have been and will be taken by 
     the State and other public or private entities that 
     administer housing programs to address these problems; and
       ``(II) the methods the State has adopted to identify 
     barriers to work posed by the living arrangement, housing 
     cost, and housing location of individuals eligible for 
     participation in the State program funded under this part and 
     the services and benefits that have been or will be provided 
     by the State and other public or private entities to help 
     families overcome such barriers.

       ``(iv) A description of the steps the State will take to 
     restrict the use and disclosure of information about 
     individuals and families applying for or receiving assistance 
     under a program funded under this part, or with qualified 
     State expenditures as defined in section 409(a)(7).
       ``(v) A description of how the State will ensure the 
     availability of a stable and professional workforce in the 
     administration of the State program under this part with the 
     resources, skills, and expertise necessary to successfully 
     carry out the program, including a description of the plan of 
     the State to provide program staff with training on the 
     following:

       ``(I) Program information and services.
       ``(II) The rights of recipients of assistant under all laws 
     applicable to the activities of the program, including 
     nondiscrimination and employment laws.
       ``(III) Cultural diversity and sensitivity.
       ``(IV) Referral of recipients of assistance to all 
     appropriate programs and services for which such recipients 
     are eligible.
       ``(V) Screening of recipients of assistance for serious 
     barriers to employment and referral to qualified specialists.

       ``(vi) A description of the steps that the State has taken 
     to inform applicants for and recipients of assistance under 
     the State program under this part of their rights and 
     obligations under such program. Such description shall 
     include--

       ``(I) an explanation of the manner in which the State will 
     ensure that such information is communicated effectively to 
     all such individuals, including how the State will provide 
     appropriate translation or interpretation services where 
     necessary; and
       ``(II) an assurance that the communication of such 
     information will take place throughout the service delivery 
     and processing.

       ``(B) Information about programs designed or implemented at 
     sub-state levels.--With respect to any program described in 
     clauses (i) or (ii) of subparagraph (A) in which the State 
     permits counties or other substate entities to design their 
     own rules with respect to any of the information required 
     under such clauses, the State plan shall be designed to 
     reflect the policies of each such county or substate entity.
       ``(C) State goals and benchmarks.--For each purpose 
     contained in section 401(a), the State plan shall provide the 
     following information:
       ``(i) A description of specific goals the State will 
     attempt to achieve over the succeeding 5-year period to 
     further that purpose.
       ``(ii) A description of how the State intends to meet the 
     goals described in clause (i) over such 5-year period and a 
     description of the steps the State will take during such 
     period to work toward achieving such goals.
       ``(iii) A description of performance measures that will be 
     used to measure progress made by the State toward achieving 
     each such goal, including the methodology for computing such 
     measures. Each performance and outcome measure described in 
     the State plan under this subparagraph shall be reported by 
     the State annually in a form prescribed by the Secretary.
       ``(iv) An identification of those key factors external to 
     the program and beyond the control of the State that could 
     significantly affect the attainment of the goals.
       ``(v) A description of any additional evaluation methods 
     the State will use to measure progress made by the State 
     toward achieving such goals.
       ``(2) Minimum participation rates.--A description of how 
     the minimum participation rates specified in section 407 will 
     be satisfied.
       ``(3) Estimate of expenditures.--An estimate of the total 
     amount of State or local expenditures under all programs 
     described in clauses (i) or (ii) of paragraph (1)(A) for the 
     fiscal year in which the plan is submitted.
       ``(4) Special provisions.--
       ``(A) Certification regarding assessment of regional 
     economies and informing localities of sectoral labor 
     shortages and identification of self-sufficiency standard.--
       ``(i) In general.--A certification by the chief executive 
     officer of the State that, during the fiscal year, the State 
     will--

       ``(I) assess its regional economies and provide information 
     to political subdivisions of the State about the industrial 
     sectors that are experiencing a labor shortage and that 
     provide higher entry-level wage opportunities for unemployed 
     and underemployed job seekers identified in accordance with 
     section 411(c); and
       ``(II) identify the self-sufficiency standards for families 
     after the families cease to receive assistance under the 
     State program funded under this part in accordance with 
     clause (ii).

       ``(ii) Requirements for identification of self-sufficiency 
     standards.--

       ``(I) In general.--The State shall provide to the Secretary 
     a document adopted or developed by the State, that--

       ``(aa) describes the income needs of families (in this part 
     referred to as `State self-sufficiency standards') based on 
     family size, the number and ages of children in the family, 
     and sub-State geographical considerations; and
       ``(bb) if the State has a sizeable Native American 
     population, includes information specific to the needs of 
     that population.

       ``(II) Criteria.--The State self-sufficiency standards 
     shall separately specify the monthly costs of housing, food, 
     child care, transportation, health care, other basic needs, 
     and taxes (including tax benefits), and shall be determined 
     using national, State and local data on the cost of 
     purchasing goods and services in the marketplace.
       ``(III) Categories of families.--The State self-sufficiency 
     standards shall categorize families--

       ``(aa) by whether there are 1 or 2 adults in the family;
       ``(bb) by whether there are 0, 1, 2, 3, or more than 3 
     children in the family; and
       ``(cc) by the age of each child in the family, according to 
     whether a child is an infant, of pre-school age, of school 
     age, or a teenager.

       ``(IV) Regulations.--The Secretary shall prescribe the 
     protocols, criteria, cost categories, definitions, and means 
     of making inflation adjustments to be used in developing 
     self-sufficiency standards pursuant to this clause, which 
     shall be based on commonly accepted definitions of adequacy, 
     such as those used for establishing fair market rents, and 
     that reflect, to the extent possible, consensus and use among 
     those calculating family budgets and self-sufficiency 
     standards.
       ``(V) Data.--The self-sufficiency standards developed 
     pursuant to this clause shall be--

       ``(aa) recalculated on adoption if the data on which the 
     standards are based is more than 3 years old;
       ``(bb) recalculated every 5 years after adoption; and
       ``(cc) updated for inflation each year after adoption in 
     which the standards are not be recalculated pursuant to item 
     (bb).

       ``(VI) Technical assistance in developing standards.--The 
     Secretary may provide financial or technical assistance to an 
     eligible State to enable the State to develop or improve the 
     State self-sufficiency standards and produce State reports 
     required by section 411(d). The Secretary shall carry out 
     this paragraph by making a grant to, or entering into a 
     contract with an organization or institution with substantial 
     experience in calculating and implementing on the State

[[Page S1826]]

     level family budgets and self-sufficiency standards. An 
     organization or institution desiring to provide technical 
     assistance described in this subclause shall submit to the 
     Secretary an application at such time, in such manner, and 
     accompanied by such information as the Secretary may require.

       ``(B) Certification that the state will operate a child 
     support enforcement program.--A certification by the chief 
     executive officer of the State that, during the fiscal year, 
     the State will operate a child support enforcement program 
     under the State plan approved under part D.
       ``(C) Certification that the state will operate a foster 
     care and adoption assistance program.--A certification by the 
     chief executive officer of the State that, during the fiscal 
     year, the State will operate a foster care and adoption 
     assistance program under the State plan approved under part 
     E, and that the State will take such actions as are necessary 
     to ensure that children receiving assistance under such part 
     are eligible for medical assistance under the State plan 
     under title XIX.
       ``(D) Certification of the administration of the program.--
     A certification by the chief executive officer of the State 
     specifying which State agency or agencies will administer and 
     supervise the family assistance program referred to in 
     paragraph (1) for the fiscal year, which shall include 
     assurances that local governments and private sector 
     organizations--
       ``(i) have been consulted regarding the plan and design of 
     welfare services in the State so that services are provided 
     in a manner appropriate to local populations; and
       ``(ii) have had at least 45 days to submit comments on the 
     plan and the design of such services.
       ``(E) Certification that the state will provide indians 
     with equitable access to assistance.--A certification by the 
     chief executive officer of the State that, during the fiscal 
     year, the State will provide each member of an Indian tribe, 
     who is domiciled in the State and is not eligible for 
     assistance under a tribal family assistance plan approved 
     under section 412, with equitable access to assistance under 
     the State program.
       ``(F) Certification of standards and procedures to ensure 
     against program fraud and abuse.--A certification by the 
     chief executive officer of the State that the State has 
     established and is enforcing standards and procedures to 
     ensure against program fraud and abuse, including standards 
     and procedures concerning nepotism, conflicts of interest 
     among individuals responsible for the administration and 
     supervision of the State program, kickbacks, and the use of 
     political patronage.
       ``(G) Optional certification of standards and procedures to 
     ensure that the state will screen for and identify domestic 
     violence.--
       ``(i) In general.--At the option of the State, a 
     certification by the chief executive officer of the State 
     that the State has established and is enforcing standards and 
     procedures to--

       ``(I) screen and identify individuals receiving assistance 
     under this part with a history of domestic violence while 
     maintaining the confidentiality of such individuals;
       ``(II) refer such individuals to counseling and supportive 
     services; and
       ``(III) waive, pursuant to a determination of good cause, 
     other program requirements such as time limits (for so long 
     as necessary) for individuals receiving assistance, residency 
     requirements, child support cooperation requirements, and 
     family cap provisions, in cases where compliance with such 
     requirements would make it more difficult for individuals 
     receiving assistance under this part to escape domestic 
     violence or unfairly penalize such individuals who are or 
     have been victimized by such violence, or individuals who are 
     at risk of further domestic violence.

       ``(ii) Domestic violence defined.--For purposes of this 
     subparagraph, the term `domestic violence' has the same 
     meaning as the term `battered or subjected to extreme 
     cruelty', as defined in section 408(a)(7)(C)(iii).
       ``(b) Procedures for Submitting and Amending State Plans.--
       ``(1) Standard state plan format.--The Secretary shall, 
     after notice and public comment, develop a proposed Standard 
     State Plan Form to be used by States under subsection (a). 
     Such form shall be finalized by the Secretary for use by the 
     State not later than February 1, 2003.
       ``(2) Requirement for completed plan using standard state 
     plan format by fiscal year 2004.--Notwithstanding any other 
     provision of law, each State shall submit a complete State 
     plan, using the Standard State Plan Form developed under 
     paragraph (1), not later than October 1, 2003.
       ``(3) Public notice and comment.--Prior to submitting a 
     State plan to the Secretary under this section, the State 
     shall--
       ``(A) make the proposed State plan available to the public 
     through an appropriate State maintained Internet web site and 
     through other means as the State determines appropriate;
       ``(B) allow for a reasonable public comment period of not 
     less than 45 days; and
       ``(C) make comments received concerning such plan or, at 
     the discretion of the State, a summary of the comments 
     received available to the public through such web site and 
     through other means as the State determines appropriate.
       ``(4) Public availability of state plan.--A State shall 
     ensure that the State plan, that is in effect for any fiscal 
     year, is available to the public through an appropriate State 
     maintained Internet web site and through other means as the 
     State determines appropriate.
       ``(5) Amending the state plan.--A State shall file an 
     amendment to the State plan with the Secretary if the State 
     determines that there has been a material change in any 
     information required to be included in the State plan or any 
     other information the State has included in the plan, 
     including substantial changes in the use of funding. Prior to 
     submitting an amendment to the State plan to the Secretary, 
     the State shall--
       ``(A) make the proposed amendment available to the public 
     as provided for in paragraph (3)(A);
       ``(B) allow for a reasonable public comment period of not 
     less than 45 days; and
       ``(C) make the comments available as provided for in 
     paragraph (3)(C).''.
       (b) Conforming Amendment.--Section 408(a)(5)(B)(i) of the 
     Social Security Act (42 U.S.C. 608(a)(5)(B)(i)) is amended by 
     striking ``referred to in section 402(a)(4)''.

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

       (a) General Reporting Requirement.--Section 411(a) of the 
     Social Security Act (42 U.S.C. 611(a)) is amended--
       (1) by redesignating paragraph (7) as paragraph (9); and
       (2) by inserting after paragraph (6), the following:
       ``(7) Self-sufficiency standard.--The report required by 
     paragraph (1) for a fiscal quarter shall include a 
     description of the self-sufficiency standard identified for 
     families in accordance with section 402(a)(4)(A)(ii).
       ``(8) Information regarding civil rights.--As part of the 
     information collected and reported under paragraph (1), the 
     State shall include information on the number of complaints 
     filed by applicants for or recipients of assistance under the 
     State program under this part that allege civil rights or 
     employment law violations and the status of such complaints, 
     including the number of complaints pending at the time the 
     report is prepared. Such information shall be delineated by 
     alleged violation, the number of resolutions during the 
     reporting period in favor of and against the complainants, 
     and the average length of time to process complaints.''.
       (b) Annual Reports to Congress.--Section 411(b) of the 
     Social Security Act (42 U.S.C. 611(b)) is amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period and inserting 
     ; and''; and
       (3) by adding at the end the following:
       ``(5) the status of civil rights complaints filed under 
     this part with the Office of Civil Rights of the Department 
     of Health and Human Services by applicants for or recipients 
     of assistance under a State program, including the number of 
     complaints pending at the time the report is prepared 
     delineated by alleged violation, the number of resolutions 
     during the reporting period in favor of and against the 
     complainants, and the average length of time to process 
     complaints.''.
       (c) Annual Assessment of Regional Economies; Annual Report 
     On Programs and Services Leading to Self-Sufficiency.--
     Section 411 of the Social Security Act (42 U.S.C. 611) is 
     amended by adding at the end the following:
       ``(c) Assessment of Regional Economies to Identify Higher 
     Entry Level Wage Opportunities in Industries Experiencing 
     Labor Shortages.--
       ``(1) In general.--An eligible State annually shall conduct 
     an assessment of its regional economies to identify higher 
     entry level wage opportunities in industries experiencing 
     labor market shortages.
       ``(2) Matters to be assessed.--
       ``(A) Labor market.--The assessment shall--
       ``(i) identify industries or occupations that have or 
     expect to grow, that have or expect a loss of skilled 
     workers, or that have a need for workers;
       ``(ii) identify the entry-level education and skills 
     requirements for the industries or occupations that have or 
     expect a need for workers; and
       ``(iii) analyze the entry-level wages and benefits in 
     identified industries or occupations.
       ``(B) Job seekers.--The assessment shall create a profile 
     in each regional economy in the State, of the characteristics 
     of the unemployed and underemployed residents of such 
     regional economy, including educational attainment, barriers 
     to employment, geographic concentrations, self-sufficiency 
     needs, and availability and utilization of need support 
     services.
       ``(C) Education and training infrastructure.--The 
     assessment shall create a profile, in each regional economy 
     in the State of the education, training, and support services 
     in place in such regional economy to prepare workers for the 
     industries or occupations identified pursuant to subparagraph 
     (A).
       ``(D) Aligning industries and job seekers.--The assessment 
     shall compare the characteristics of the industries or 
     occupations identified pursuant to subparagraph (A) to the 
     profile of the job seekers in the State and the profile of 
     the education and training infrastructure in the State.

[[Page S1827]]

       ``(3) Sharing of information with localities.--The State 
     shall share with all counties, municipalities, local 
     workforce investment boards established under section 117 of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2832), and 
     other appropriate political subdivisions of the State, 
     information obtained pursuant to this subsection regarding 
     higher entry-wage job opportunities in industries 
     experiencing labor shortages, and information regarding 
     opportunities for collaboration with institutions of higher 
     education, community-based organizations, and economic 
     development and welfare agencies.
       ``(4) Reports of assessment of regional economies.--Each 
     eligible state shall submit to the Secretary annually a 
     report that contains the annual assessment conducted pursuant 
     to this subsection.
       ``(d) Annual Report on Programs and Services Leading to 
     Self-Sufficiency.--A State to which a grant is made under 
     section 403(a) for a fiscal year shall submit to the 
     Secretary a report that describes, with respect to the 
     preceding fiscal year--
       ``(1) a description of the ways in which the State program 
     funded under this part, and support services provided by the 
     State to recipients of assistance under that program, moved 
     families toward self-sufficiency, and that highlights the 
     programs and services that appeared to have a particularly 
     positive effect on families achieving self-sufficiency;
       ``(2) the total family income for families that left the 
     State program funded under this part (including earnings, 
     unemployment compensation, and child support); and
       ``(3) the benefits received by families that have left the 
     State program funded under this part (including benefits 
     under the food stamp program under the Food Stamp Act of 
     1977, the medicaid program under title XIX, the State 
     children's health insurance program under title XXI, earned 
     income tax credits, and housing assistance).''.
       (d) Research, Evaluations, and National Studies.--Section 
     413(h) of the Social Security Act (42 U.S.C. 613(h)) is 
     amended by adding at the end the following:
       ``(4) Technical assistance in assessing regional 
     economies.--
       ``(A) In general.--The Secretary may provide technical 
     assistance to an eligible State to enable the State to 
     conduct the assessments required by section 411(c).
       ``(B) Limitations on authorization of appropriations.--For 
     the cost of providing technical assistance under subparagraph 
     (A), there are authorized to be appropriated to the Secretary 
     not more than $1,500,000 for each fiscal year in which 
     amounts are appropriated to carry out the State programs 
     funded under this part.''.

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

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

     SEC. 5. WAIVERS.

       (a) Continuation of Prewelfare Reform Waivers.--Section 415 
     of the Social Security Act (42 U.S.C. 615) is amended by 
     adding at the end the following new subsection:
       ``(e) Continuation of Waivers Approved or Submitted Before 
     Date of Enactment of Welfare Reform.--Notwithstanding 
     subsection (a), with respect to any State that is operating 
     under a waiver described in that subsection which would 
     otherwise expire on a date that occurs during the period that 
     begins on October 1, 2002, and ends on September 30, 2007, 
     the State may elect to continue to operate under that waiver, 
     on the same terms and conditions as applied to the waiver on 
     the day before such date, through September 30, 2007.''.
       (b) Approval of Waivers To Duplicate Innovative Programs.--
     Section 415 of the Social Security Act (42 U.S.C. 615), as 
     amended by subsection (a), is further amended by adding at 
     the end the following:
       ``(f) Requirement To Approve Waivers To Duplicate 
     Innovative Programs.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, if a State submits an application for a waiver of 1 or 
     more requirements of this part that contains terms that are 
     similar or identical to the terms of a waiver eligible to be 
     continued under subsection (e), and the application satisfies 
     the requirements of paragraph (2), the Secretary--
       ``(A) shall approve the application for a period of at 
     least 2 years, but not more than 4 years, unless the 
     Secretary determines that approval would be inconsistent with 
     the purposes of this part set forth in section 401;
       ``(B) at the end of the waiver period, shall review 
     documentation of the effectiveness of the waiver provided by 
     the State; and
       ``(C) if such documentation adequately demonstrates that 
     the program as implemented under the waiver has been 
     effective, may renew the waiver for such period as the 
     Secretary determines appropriate, but not later than 
     September 30, 2007.
       ``(2) Application requirements.--An application for a 
     waiver described in paragraph (1) shall--
       ``(A) describe relevant State caseload characteristics and 
     labor market conditions;
       ``(B) specify how the waiver is likely to result in 
     improved employment outcomes, improved child well-being, or 
     both;
       ``(C) describe the State's proposed approach for evaluation 
     of the program under the waiver; and
       ``(D) include an agreement to conduct an independent 
     evaluation of the waiver and to submit the results of the 
     evaluation to the Secretary.''.
       (c) Conforming Amendment.--Section 415(b)(1) of the Social 
     Security Act (42 U.S.C. 615(b)(1)) is amended by inserting 
     ``, extended under subsection (e), or approved under 
     subsection (f)'' after ``(a)''.

     SEC. 6. EFFECTIVE DATE.

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